Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2020 | Jan. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-25259 | |
Entity Registrant Name | Bottomline Technologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 02-0433294 | |
Entity Address, Address Line One | 325 Corporate Drive | |
Entity Address, Postal Zip Code | 03801-6808 | |
Entity Address, City or Town | Portsmouth, | |
Entity Address, State or Province | NH | |
City Area Code | 603 | |
Local Phone Number | 436-0700 | |
Title of 12(b) Security | Common Stock, $.001 par value per share | |
Trading Symbol | EPAY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,019,811 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001073349 | |
Current Fiscal Year End Date | --06-30 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 130,096 | $ 194,832 |
Cash held for customers | 9,680 | 6,304 |
Marketable securities | 10,259 | 10,209 |
Accounts receivable net of allowances for doubtful accounts of $1,430 at December 31, 2020 and $1,336 at June 30, 2020 | 73,044 | 69,970 |
Prepaid expenses and other current assets | 33,402 | 28,328 |
Total current assets | 256,481 | 309,643 |
Property and equipment, net | 68,470 | 67,155 |
Operating lease right-of-use assets, net | 23,203 | 24,712 |
Goodwill | 227,346 | 205,713 |
Intangible assets, net | 158,942 | 154,111 |
Other assets | 44,194 | 31,803 |
Total assets | 778,636 | 793,137 |
Current liabilities: | ||
Accounts payable | 12,141 | 13,422 |
Accrued expenses and other current liabilities | 45,626 | 48,198 |
Customer account liabilities | 9,680 | 6,304 |
Deferred revenue | 71,499 | 82,074 |
Total current liabilities | 138,946 | 149,998 |
Borrowings under credit facility | 130,000 | 180,000 |
Deferred revenue, non-current | 14,624 | 13,959 |
Operating lease liabilities, non-current | 20,133 | 20,670 |
Deferred income taxes | 10,313 | 8,656 |
Other liabilities | 31,633 | 27,520 |
Total liabilities | 345,649 | 400,803 |
Stockholders' equity | ||
Preferred Stock, $.001 par value: Authorized shares—4,000; issued and outstanding shares-none | 0 | 0 |
Common Stock, $.001 par value: Authorized shares—100,000; issued shares—XX,XXX at March 31, 2020 and 46,995 at June 30, 2019; outstanding shares—XX,XXX at March 31, 2020 and 41,315 at June 30, 2019 | 49 | 48 |
Additional paid-in-capital | 795,630 | 764,906 |
Accumulated other comprehensive loss | (25,613) | (48,675) |
Treasury stock: 6,138 shares at December 31, 2020 and 5,975 shares at June 30, 2020, at cost | (152,299) | (143,333) |
Accumulated deficit | (184,780) | (180,612) |
Total stockholders' equity | 432,987 | 392,334 |
Total liabilities and stockholders' equity | $ 778,636 | $ 793,137 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances for doubtful accounts and returns | $ 1,430 | $ 1,336 |
Preferred Stock, $.001 par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common Stock, $.001 par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued shares (in shares) | 48,856,000 | 48,147,000 |
Common stock, outstanding shares (in shares) | 42,718,000 | 42,172,000 |
Treasury stock (in shares) | 6,138,000 | 5,975,000 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||||
Total revenues | $ 116,024 | $ 111,691 | $ 228,389 | $ 219,867 |
Cost of revenues: | ||||
Total cost of revenues | 48,258 | 47,039 | 94,791 | 93,534 |
Gross profit | 67,766 | 64,652 | 133,598 | 126,333 |
Operating expenses: | ||||
Sales and marketing | 29,237 | 26,988 | 54,980 | 52,676 |
Product development and engineering | 19,183 | 18,279 | 37,682 | 36,628 |
General and administrative | 16,658 | 14,761 | 30,284 | 28,106 |
Amortization of acquisition-related intangible assets | 5,142 | 5,213 | 10,171 | 10,163 |
Total operating expenses | 70,220 | 65,241 | 133,117 | 127,573 |
Income (loss) from operations | (2,454) | (589) | 481 | (1,240) |
Other expense, net | (888) | (582) | (1,668) | (1,295) |
Loss before income taxes | (3,342) | (1,171) | (1,187) | (2,535) |
Income tax (provision) benefit | (1,273) | 3,780 | (3,037) | 3,777 |
Net income (loss) | $ (4,615) | $ 2,609 | $ (4,224) | $ 1,242 |
Basic and diluted net income (loss) per share (in dollars per share) | $ (0.11) | $ 0.06 | $ (0.10) | $ 0.03 |
Shares used in computing net income (loss) per share: | ||||
Basic (in shares) | 42,751 | 41,693 | 42,604 | 41,590 |
Diluted (in shares) | 42,751 | 42,092 | 42,604 | 41,917 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized loss on available for sale securities | $ (10) | $ 0 | $ (35) | $ (3) |
Change in fair value on interest rate hedging instruments | 466 | 569 | 912 | (108) |
Minimum pension liability adjustments | (331) | (172) | (564) | 8 |
Foreign currency translation adjustments | 13,643 | 11,944 | 22,749 | 6,065 |
Other comprehensive income, net of tax: | 13,768 | 12,341 | 23,062 | 5,962 |
Comprehensive income | 9,153 | 14,950 | 18,838 | 7,204 |
Subscriptions | ||||
Revenues: | ||||
Total revenues | 93,398 | 84,085 | 183,782 | 164,151 |
Cost of revenues: | ||||
Total cost of revenues | 37,195 | 33,449 | 72,413 | 66,214 |
Software licenses | ||||
Revenues: | ||||
Total revenues | 1,802 | 2,800 | 2,779 | 5,376 |
Cost of revenues: | ||||
Total cost of revenues | 126 | 157 | 216 | 318 |
Service and maintenance | ||||
Revenues: | ||||
Total revenues | 20,022 | 24,061 | 40,586 | 48,886 |
Cost of revenues: | ||||
Total cost of revenues | 10,386 | 12,929 | 21,302 | 25,982 |
Other | ||||
Revenues: | ||||
Total revenues | 802 | 745 | 1,242 | 1,454 |
Cost of revenues: | ||||
Total cost of revenues | $ 551 | $ 504 | $ 860 | $ 1,020 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jun. 30, 2019 | 46,995 | 5,680 | ||||||
Beginning balance at Jun. 30, 2019 | $ 379,377 | $ 37 | $ 47 | $ 721,438 | $ (43,593) | $ (127,095) | $ (171,420) | $ 37 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options (in shares) | 13 | (60) | ||||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 2,175 | 776 | $ 1,399 | |||||
Vesting of restricted stock awards (in shares) | 637 | |||||||
Vesting of restricted stock awards | 1 | $ 1 | ||||||
Repurchase of common stock to be held in treasury (in shares) | 328 | |||||||
Repurchase of common stock to be held in treasury | (15,005) | $ (15,005) | ||||||
Stock compensation plan expense | 22,145 | 22,145 | ||||||
Minimum pension liability adjustments, net of tax | 8 | 8 | ||||||
Net income (loss) | 1,242 | 1,242 | ||||||
Unrealized loss on available for sale securities, net of tax | (3) | (3) | ||||||
Change in fair value on interest rate hedging instruments | (108) | (108) | ||||||
Foreign currency translation adjustment | 6,065 | 6,065 | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 47,645 | 5,948 | ||||||
Ending balance at Dec. 31, 2019 | 395,934 | $ 48 | 744,359 | (37,631) | $ (140,701) | (170,141) | ||
Beginning balance (in shares) at Jun. 30, 2019 | 46,995 | 5,680 | ||||||
Beginning balance at Jun. 30, 2019 | $ 379,377 | 37 | $ 47 | 721,438 | (43,593) | $ (127,095) | (171,420) | 37 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 48,147 | 5,975 | ||||||
Ending balance at Jun. 30, 2020 | $ 392,334 | 56 | $ 48 | 764,906 | (48,675) | $ (143,333) | (180,612) | 56 |
Beginning balance (in shares) at Sep. 30, 2019 | 47,385 | 5,853 | ||||||
Beginning balance at Sep. 30, 2019 | 374,936 | $ 47 | 733,312 | (49,972) | $ (135,701) | (172,750) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 1 | 1 | ||||||
Vesting of restricted stock awards (in shares) | 260 | |||||||
Vesting of restricted stock awards | 1 | $ 1 | ||||||
Repurchase of common stock to be held in treasury (in shares) | 95 | |||||||
Repurchase of common stock to be held in treasury | (5,000) | $ (5,000) | ||||||
Stock compensation plan expense | 11,046 | 11,046 | ||||||
Minimum pension liability adjustments, net of tax | (172) | (172) | ||||||
Net income (loss) | 2,609 | 2,609 | ||||||
Unrealized loss on available for sale securities, net of tax | 0 | |||||||
Change in fair value on interest rate hedging instruments | 569 | 569 | ||||||
Foreign currency translation adjustment | 11,944 | 11,944 | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 47,645 | 5,948 | ||||||
Ending balance at Dec. 31, 2019 | 395,934 | $ 48 | 744,359 | (37,631) | $ (140,701) | (170,141) | ||
Beginning balance (in shares) at Jun. 30, 2020 | 48,147 | 5,975 | ||||||
Beginning balance at Jun. 30, 2020 | 392,334 | $ 56 | $ 48 | 764,906 | (48,675) | $ (143,333) | (180,612) | $ 56 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options (in shares) | 0 | (75) | ||||||
Issuance of common stock for employee stock purchase plan and upon exercise of stock options | 2,168 | 379 | $ 1,789 | |||||
Vesting of restricted stock awards (in shares) | 543 | |||||||
Vesting of restricted stock awards | 1 | $ 1 | ||||||
Repurchase of common stock to be held in treasury (in shares) | 238 | |||||||
Repurchase of common stock to be held in treasury | (10,755) | $ (10,755) | ||||||
Issuance of common stock in connection with acquisition (in shares) | 166 | |||||||
Issuance of common stock in connection with acquisition | 8,183 | $ 0 | 8,183 | |||||
Stock compensation plan expense | 22,162 | 22,162 | ||||||
Minimum pension liability adjustments, net of tax | (564) | (564) | ||||||
Net income (loss) | (4,224) | (4,224) | ||||||
Unrealized loss on available for sale securities, net of tax | (35) | (35) | ||||||
Change in fair value on interest rate hedging instruments | 912 | 912 | ||||||
Foreign currency translation adjustment | 22,749 | 22,749 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 48,856 | 6,138 | ||||||
Ending balance at Dec. 31, 2020 | 432,987 | $ 49 | 795,630 | (25,613) | $ (152,299) | (184,780) | ||
Beginning balance (in shares) at Sep. 30, 2020 | 48,560 | 5,900 | ||||||
Beginning balance at Sep. 30, 2020 | 422,416 | $ 49 | 783,457 | (39,381) | $ (141,544) | (180,165) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Vesting of restricted stock awards (in shares) | 296 | |||||||
Vesting of restricted stock awards | 0 | $ 0 | ||||||
Stock compensation plan expense | 12,173 | 12,173 | ||||||
Minimum pension liability adjustments, net of tax | (331) | (331) | ||||||
Net income (loss) | (4,615) | (4,615) | ||||||
Unrealized loss on available for sale securities, net of tax | (10) | (10) | ||||||
Change in fair value on interest rate hedging instruments | 466 | 466 | ||||||
Foreign currency translation adjustment | 13,643 | 13,643 | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 48,856 | 6,138 | ||||||
Ending balance at Dec. 31, 2020 | $ 432,987 | $ 49 | $ 795,630 | $ (25,613) | $ (152,299) | $ (184,780) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | ||
Net income (loss) | $ (4,224) | $ 1,242 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of acquisition-related intangible assets | 10,171 | 10,163 |
Stock-based compensation plan expense | 22,146 | 22,009 |
Depreciation and other amortization | 16,032 | 12,652 |
Deferred income tax benefit | (125) | (5,619) |
Provision for allowances on accounts receivable | 165 | 136 |
Amortization of debt issuance costs | 206 | 207 |
Amortization of premium (discount) on investments | 25 | (45) |
Gain on other investments | (174) | 0 |
Loss on disposal of equipment | 23 | 76 |
(Gain) loss on foreign exchange | (34) | 266 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (139) | 9,818 |
Prepaid expenses and other current assets | (2,935) | 822 |
Operating lease right-of-use asset, net | 2,438 | 2,134 |
Other assets | (2,950) | (1,583) |
Accounts payable | (1,041) | 2,510 |
Accrued expenses | (1,707) | 414 |
Operating lease liabilities | (1,383) | (1,614) |
Customer account liabilities | 2,599 | 2,485 |
Deferred revenue | (14,842) | (14,417) |
Other liabilities | (74) | 432 |
Net cash provided by operating activities | 24,177 | 42,088 |
Investing activities: | ||
Acquisition of businesses and assets, net of cash acquired | (9,892) | 0 |
Purchases of other investments | (7,150) | (144) |
Issuance of note receivable | (2,600) | 0 |
Purchases of available-for-sale securities | (8,203) | (10,070) |
Proceeds from sales of available-for-sale securities | 8,100 | 7,500 |
Capital expenditures, including capitalization of software costs | (14,980) | (26,400) |
Net cash used in investing activities | (34,725) | (29,114) |
Financing activities: | ||
Repurchase of common stock | (10,755) | (14,332) |
Repayment of amounts borrowed under revolving credit facility | (50,000) | (10,000) |
Repayment of notes payable | 0 | (365) |
Proceeds from exercise of stock options and employee stock purchase plan | 2,169 | 2,175 |
Net cash used in financing activities | (58,586) | (22,522) |
Effect of exchange rate changes on cash | 7,774 | 1,039 |
Decrease in cash, cash equivalents and restricted cash | (61,360) | (8,509) |
Cash, cash equivalents and restricted cash at beginning of period | 201,136 | 97,801 |
Cash, cash equivalents and restricted cash at end of period | 139,776 | 89,292 |
Cash, cash equivalents and restricted cash at end of period | 139,776 | 89,292 |
Supplemental disclosures of non-cash investing activities: | ||
Issuance of common stock in connection with acquisition | $ 8,183 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Bottomline Technologies, Inc. (referred to below as we, us, our or Bottomline) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the interim financial information have been included. Operating results for the three and six months ended December 31, 2020 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending June 30, 2021, particularly in light of the novel coronavirus (COVID-19) pandemic and the effect it is having on the domestic and global economies. For further information, refer to the consolidated financial statements and footnotes included in the Annual Report on Form 10-K as filed with the Securities and Exchange Commission on August 28, 2020. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements Financial Instruments - Credit Losses: In June 2016, the Financial Accounting Standards Board (FASB) issued an accounting standard update that replaces the incurred loss impairment model with an expected loss model for financial assets held at amortized cost, eliminates the concept of other-than-temporary impairment and requires credit losses associated with available-for-sale debt securities to be recorded through an allowance rather than a reduction in the amortized cost basis of the security. The changes are expected to result in earlier recognition of credit losses associated with financial assets, including trade accounts receivable. We adopted this standard on July 1, 2020, on a modified retrospective basis, with the cumulative-effect accounting consequence recorded as an adjustment to the opening balance of accumulated deficit as of the effective date. The adoption of this standard did not have a material impact on our financial statements. Goodwill Impairment: In January 2017, the FASB issued an accounting standard update to simplify the test for goodwill impairment which removes the requirement to compare the carrying value of goodwill against its implied fair value. Under the revised standard, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss should not exceed the total amount of goodwill allocated to the reporting unit. We adopted this standard on July 1, 2020 and do not expect the adoption of this standard to have a material impact on our financial statements. Income Taxes: In December 2019, the FASB issued an accounting standard update related to simplifying the accounting for income taxes by eliminating certain exceptions related to intraperiod tax allocations, basis differences for changes in ownership interest in equity method investments and the calculation of interim period income tax. The standard also simplifies other aspects of accounting for taxes. We adopted this standard on July 1, 2020 and the adoption did not have a material impact on our financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Remaining Performance Obligations The transaction price we allocate to remaining performance obligations that are unsatisfied, or partially unsatisfied, as of December 31, 2020 represents contracted revenue that will be recognized in future periods. Our future performance obligations consist primarily of SaaS / stand-ready performance obligations relating to future periods, contracted but uncompleted professional services obligations and support and maintenance obligations. During the three and six months ended December 31, 2020 and 2019, the amount of revenue recognized from performance obligations satisfied in prior periods was not significant. The transaction price allocated to unsatisfied performance obligations was $433.5 million as of December 31, 2020 of which we expect to recognize approximately $160.2 million over the next twelve months and the remainder thereafter. We exclude from our measure of remaining performance obligations amounts related to future transactional or usage-based fees for which the value of services transferred to the customer will correspond to the amount we will invoice for those services. Contract Assets and Liabilities The table below presents our contract assets and deferred revenue balances as of December 31, 2020 and June 30, 2020. December 31, June 30, 2020 2020 $ Change (in thousands) Contract assets 6,353 3,646 2,707 Deferred revenue 86,123 96,033 (9,910) Contract assets arise when we recognize revenue in excess of amounts billed to the customer and the right to payment is contingent on conditions other than simply the passage of time, such as the future completion of a related performance obligation. Contract assets are classified in our consolidated balance sheets as other current assets for those contract assets with recognition periods of one year or less and other assets for contract assets with recognition periods greater than one year. We assess outstanding accounts receivable and contract assets for credit loss on an ongoing basis. In estimating credit loss, we pool accounts with similar risk characteristics. Accounts that do not share the same risk characteristics are assessed for credit loss on an individual basis. The allowance for credit loss is based on historical loss data, customer specific information, current market conditions and expected future economic conditions. Historically, our bad debt expense has not been significant. Deferred revenue consists of billings or customer payments in excess of amounts recognized as revenue. The decrease in deferred revenue at December 31, 2020 as compared to June 30, 2020 reflects our recognition of revenue from maintenance contracts, a significant portion of which are billed on a calendar year basis. For the three and six months ended December 31, 2020, we recognized $28.4 million and $68.6 million, respectively, in revenue from amounts that were included in deferred revenue as of June 30, 2020. For the three and six months ended December 31, 2019, we recognized $30.0 million and $64.0 million, respectively, in revenue from amounts that were included in deferred revenue as of June 30, 2019. |
Fair Value
Fair Value | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Values of Assets and Liabilities We measure fair value at 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. In determining fair value, the assumptions that market participants would use in pricing an asset or liability (the inputs) are based on a tiered fair value hierarchy consisting of three levels, as follows: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar instruments in active markets or for similar markets that are not active. Level 3: Unobservable inputs for which there is little or no market data which require us to develop our own assumptions about how market participants would price the asset or liability. Valuation techniques for assets and liabilities include methodologies such as the market approach, the income approach or the cost approach, and may use unobservable inputs such as projections, estimates and management’s interpretation of current market data. These unobservable inputs are only utilized to the extent that observable inputs are not available or cost-effective to obtain. At December 31, 2020 and June 30, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows: December 31, 2020 June 30, 2020 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Assets Money market funds (cash and cash equivalents) $ 303 $ — $ — $ 303 $ 354 $ — $ — $ 354 Available for sale securities - Debt U.S. Corporate $ — $ — $ — $ — $ — $ — $ — $ — Government - U.S. treasury securities — 10,190 — 10,190 — 10,148 — 10,148 Total available for sale securities $ — $ 10,190 $ — $ 10,190 $ — $ 10,148 $ — $ 10,148 Preferential conversion feature (long-term) $ — $ — $ 565 $ 565 $ — $ — $ — $ — Other investments (long-term) — — 763 763 — — 514 514 Total assets $ 303 $ 10,190 $ 1,328 $ 11,821 $ 354 $ 10,148 $ 514 $ 11,016 Liabilities Interest rate swap (short-term) $ — $ 1,651 $ — $ 1,651 $ — $ 1,631 $ — $ 1,631 Interest rate swap (long-term) $ — $ 2,516 $ — $ 2,516 $ — $ 3,448 $ — $ 3,448 Total liabilities $ — $ 4,167 $ — $ 4,167 $ — $ 5,079 $ — $ 5,079 Fair Value of Financial Instruments We have certain financial instruments which consist of cash and cash equivalents, cash held for customers, marketable securities, accounts receivable, notes receivable, contract assets, accounts payable, customer account liabilities, certain derivative instruments, assets related to deposits made to fund future requirements associated with Israeli severance arrangements and debt drawn on our Credit Facility (as defined in Note 11). Fair value information for each of these instruments is as follows: • Cash and cash equivalents, cash held for customers, accounts receivable, notes receivable, contract assets, accounts payable and customer account liabilities fair values approximate their carrying values, due to the expected duration of these instruments. • Marketable securities classified as held to maturity, all of which mature within one year, are recorded at amortized cost, which at December 31, 2020 and June 30, 2020, approximated fair value. • Marketable debt securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of other accumulated comprehensive income (loss) in stockholders’ equity, net of tax. We use the specific identification method to determine any realized gains or losses from the sale of our marketable debt securities classified as available for sale. We assess securities with an amortized cost basis in excess of estimated fair value for credit loss. As of December 31, 2020 and June 30, 2020, the unrealized losses associated with available for sale securities was not material. No credit loss has been recorded as we do not intend to sell the investments prior to recovering their amortized costs basis. • We have certain derivative instruments accounted for at fair value. We hold a convertible note with a preferential conversion feature which qualifies as a derivative instrument. The fair value assumptions consider the nature of the conversion feature and the expected timeline to a qualifying conversion event. We are also a party to interest rate swap instruments. The fair value of our interest rate swaps are based on the present value of projected cash flows that will occur over the life of the instruments, after considering certain contractual terms and counterparty credit risk. • The carrying value of assets related to deposits we have made to fund future requirements associated with Israeli severance arrangements were $1.0 million at December 31, 2020 and June 30, 2020, respectively, which approximated their fair value. • We hold certain other investments accounted for at fair value. The fair value of these investments was $0.8 million and $0.5 million at December 31, 2020 and June 30, 2020, respectively. We also have investments for which there is no readily determinable fair value. The carrying value of these investments was $7.6 million and $0.5 million at December 31, 2020 and June 30, 2020, respectively. Investments for which we cannot readily determine fair value are recorded at cost, less impairment (if any), plus or minus adjustments for observable price changes. • We have borrowings of $130 million against our Credit Facility. The fair value of these borrowings, which are classified as Level 2, approximates their carrying value at December 31, 2020, as the instrument carries a variable rate of interest which reflects current market rates. Marketable Securities The table below presents information regarding our marketable securities by major security type as of December 31, 2020 and June 30, 2020. December 31, 2020 June 30, 2020 Held to Maturity Available for Sale Total Held to Maturity Available for Sale Total (in thousands) Marketable securities: Government and other debt securities $ 69 $ 10,190 $ 10,259 $ 61 $ 10,148 $ 10,209 Total marketable securities $ 69 $ 10,190 $ 10,259 $ 61 $ 10,148 $ 10,209 The following table summarizes the estimated fair value of our investments in available for sale marketable securities classified by the contractual maturity date of the securities: December 31, 2020 (in thousands) Due within 1 year $ 10,190 Due in 1 year through 5 years — Total $ 10,190 All of our available for sale marketable securities are classified as current assets. The following table presents the aggregate fair values and gross unrealized losses for those available for sale investments that were in an unrealized loss position as of December 31, 2020 and June 30, 2020, respectively, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: At December 31, 2020 At June 30, 2020 Less than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) Government - U.S. treasury securities $ 8,176 $ (1) $ 2,012 $ (1) Total $ 8,176 $ (1) $ 2,012 $ (1) |
Business and Asset Acquisitions
Business and Asset Acquisitions | 6 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business and Asset Acquisitions | Business and Asset Acquisitions AnaSys AG In July 2020 we acquired Switzerland-based AnaSys AG (AnaSys) for a total purchase price of $13.9 million. The purchase price consisted of a cash payment of 5.2 million Swiss Francs (approximately $5.7 million based on the foreign exchange rate in effect at the acquisition date) and 166,393 shares of our common stock valued at $8.2 million on the closing date of the transaction. Additionally, we issued 28,000 shares of our common stock to certain selling stockholders of AnaSys with vesting conditions tied to continued employment with us. These shares are compensatory and we are recording share-based payment expense over their vesting period of five years. We are still obtaining fair value estimates for the intangible assets acquired. I n the preliminary allocation of the purchase price at December 31, 2020, we recorded $10.7 million of goodwill. The goodwill is not deductible for income tax purposes and arose principally due to the anticipated future benefits arising from the acquisition. Identifiable intangible assets of $6.3 million, consisting of customer and technology related assets, are being amortized over a weighted average estimated useful life of 13 years . Our acquisition of AnaSys, a provider of financial messaging solutions, will extend our geographic presence in Switzerland and Germany and expand our customer base. The operating results of AnaSys are a component of our Cloud Solutions segment from the date of the acquisition forward. FMR Systems, Inc. In July 2020, we acquired customer assets and intellectual property from FMR Systems, Inc (FMR), a small corporate and commercial onboarding software provider, for a cash payment of $2.0 million and contingent future cash payments of up to $0.3 million. We will leverage FMR's technology to build a next generation commercial onboarding product. We are still obtaining fair value estimates for the intangible assets acquired. In the preliminary allocation of the purchase price at December 31, 2020, we recorded $0.4 million of goodwill. The goodwill is deductible for income tax purposes and arose principally due to the anticipated future benefits arising from the acquisition. Identifiable intangible assets of $2.3 million, consisting primarily of technology related assets, are being amortized over a weighted average estimated useful life o f 9 years. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands, except per share amounts) Numerator - basic and diluted: Net income (loss) $ (4,615) $ 2,609 $ (4,224) $ 1,242 Denominator: Shares used in computing basic net income (loss) per share attributable to common stockholders 42,751 41,693 42,604 41,590 Impact of dilutive securities — 399 — 327 Shares used in computing diluted net income (loss) per share attributable to common stockholders 42,751 42,092 42,604 41,917 Basic and diluted net income (loss) per share attributable to common stockholders $ (0.11) $ 0.06 $ (0.10) $ 0.03 For the three and six months ended December 31, 2020, approximately 2.4 million and 2.5 million shares, respectively, of unvested restricted stock and shares underlying stock options were excluded from the calculation of diluted earnings per share as their effect on the calculation would have been anti-dilutive. At December 31, 2020, approximately 0.2 million shares of unvested restricted stock with performance conditions were also excluded from the calculation of diluted earnings per share as the performance contingencies were not resolved and their effect on the calculation would have been anti-dilutive. |
Operations by Segments and Geog
Operations by Segments and Geographic Areas | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operations by Segments and Geographic Areas | Operations by Segments and Geographic Areas Segment Information Operating segments are the components of our business for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our operating segments are generally organized by the type of product or service offered and by geography. Similar operating segments have been aggregated into four reportable segments as follows: Cloud Solutions. Our Cloud Solutions segment provides customers with SaaS technology offerings that facilitate electronic payments, electronic invoicing, and spend management. Our payment platforms (Paymode-X, PTX and financial messaging) are included in this segment. These solutions are highly scalable, secure and cost effective and facilitate cash payment and transaction settlement between businesses, their vendors and banks. Our legal spend management solutions, which enable customers to create more efficient processes for managing invoices generated by outside law firms while offering insight into important legal spend factors such as expense monitoring and outside counsel performance, are also included within this segment. Revenue within this segment is generally recognized on a subscription or transaction basis. Banking Solutions. Our Banking Solutions segment provides solutions that are specifically designed for banking and financial institution customers. Our Banking Solutions products are sold predominantly on a hosted basis, with revenue recognized on a subscription or transaction basis. Payments and Documents. Our Payments and Documents segment supplies financial business process management software solutions, including making and collecting payments, sending and receiving invoices, and generating and storing business documents. This segment also provides a range of standard professional services and equipment and supplies that complement and enhance our core software products. When licensed for on-premise deployment, software license revenue is typically recorded upon delivery of the software and commencement of the license term. If the solution is hosted by us, we typically record revenue over time. Professional services revenue is normally recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period. Other . Our Other segment consists of our fraud solutions and our healthcare solutions. The Other segment loss reported below is attributable to the operating results of our fraud solutions, which reflects the revenue contribu tion from the legacy sales channel we acquired and the burden of certain other centralized costs; however our fraud solutions are sold as part of all of our operating segments. Our healthcare solutions focus on eliminating paper intensive processes and providing electronic signature and mobile document capabilities to allow healthcare organizations to improve efficiency and reduce costs. Software revenue for perpetual licenses of our fraud and healthcare products is typically recorded upon delivery of the software and commencement of the license term. Professional services revenue is recorded as we perform the work and software support and maintenance revenue is recorded ratably over the support period which is normally twelve months. Periodically a sales person in one operating segment will sell products and services that are typically sold within a different operating segment. In such cases, the transaction is generally recorded by the operating segment to which the sales person is assigned. Accordingly, segment results can include the results of transactions that have been allocated to a specific segment based on the contributing sales resources, rather than the nature of the product or service. Conversely, a transaction can be recorded by the operating segment primarily responsible for delivery to the customer, even if the sales person is assigned to a different operating segment. Our chief operating decision maker assesses segment performance based on a variety of factors that normally include segment revenue and a segment measure of profit or loss. Each segment’s measure of profit or loss is on a pre-tax basis and excludes certain items as presented in our reconciliation of the measure of total segment profit to GAAP income (loss) before income taxes that follows. There are no inter-segment sales; accordingly, the measure of segment revenue and profit or loss reflects only revenues from external customers. The costs of certain corporate level expenses, primarily general and administrative expenses, are allocated to our operating segments based on a percentage of the segment’s revenues. We do not track or assign our assets by operating segment. Segment information for the three and six months ended December 31, 2020 and 2019 according to the segment descriptions above, is as follows: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Segment revenue: Cloud Solutions $ 69,660 $ 64,341 $ 134,616 $ 125,363 Banking Solutions 23,980 23,267 50,170 47,436 Payments and Documents 17,178 19,514 34,574 38,092 Other 5,206 4,569 9,029 8,976 Total segment revenue $ 116,024 $ 111,691 $ 228,389 $ 219,867 Segment measure of profit (loss): Cloud Solutions $ 15,618 $ 15,014 $ 30,215 $ 28,813 Banking Solutions (56) (376) 2,900 159 Payments and Documents 4,087 5,802 8,187 10,811 Other (1,945) (2,196) (5,052) (4,062) Total measure of segment profit $ 17,704 $ 18,244 $ 36,250 $ 35,721 A reconciliation of the total measure of segment profit to GAAP income (loss) before income taxes is as follows: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Total measure of segment profit $ 17,704 $ 18,244 $ 36,250 $ 35,721 Less: Amortization of acquisition-related intangible assets (5,142) (5,213) (10,171) (10,163) Stock-based compensation plan expense (12,173) (10,965) (22,146) (22,009) Acquisition and integration-related expenses (1,095) (1,957) (1,340) (3,654) Restructuring expense (921) (234) (991) (209) Excess depreciation associated with restructuring events (528) — (528) — Other non-core (expense) benefit (48) (4) (96) 10 Global ERP system implementation and other costs — (200) — (424) Other expense, net of pension adjustments (1,139) (842) (2,165) (1,807) Loss before income taxes $ (3,342) $ (1,171) $ (1,187) $ (2,535) The following depreciation and other amortization expense amounts are included in the measure of segment profit: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Depreciation and other amortization expense: Cloud Solutions $ 4,409 $ 3,917 $ 8,810 $ 7,511 Banking Solutions 2,838 2,202 5,590 4,297 Payments and Documents 270 235 540 455 Other 288 206 564 389 Total depreciation and other amortization expense $ 7,805 $ 6,560 $ 15,504 $ 12,652 Disaggregation of Revenue The tables below present our subscriptions revenue and total revenue disaggregated by major product classification for the three and six months ended December 31, 2020 and 2019. (in thousands) Three Months Ended December 31, 2020 2019 Subscriptions Revenue Total Revenue Subscriptions Revenue Total Revenue Payment Platforms (1) $ 43,433 $ 47,811 $ 38,012 $ 42,928 Banking Solutions 21,297 23,980 18,307 23,267 Legal Spend Management (2) 21,846 21,849 21,413 21,413 All other (3) 6,822 22,384 6,353 24,083 Total revenues $ 93,398 $ 116,024 $ 84,085 $ 111,691 (in thousands) Six Months Ended December 31, 2020 2019 Subscriptions Revenue Total Revenue Subscriptions Revenue Total Revenue Payment Platforms (1) $ 83,681 $ 92,217 $ 73,218 $ 83,376 Banking Solutions 44,282 50,170 36,680 47,436 Legal Spend Management (2) 42,396 42,399 41,987 41,987 All other (3) 13,423 43,603 12,266 47,068 Total revenues $ 183,782 $ 228,389 $ 164,151 $ 219,867 We derive the majority of our revenue from subscription arrangements. The substantial majority of our non-subscription revenue is derived from software support and maintenance fees and from professional services, with such revenue being recorded by all of our operating segments but with the largest concentration of this revenue being derived from our legacy business payments and documents products in our Payments and Documents segment. (1) Consists of our Paymode-X, PTX and financial messaging settlement network, all of which are components of our Cloud Solutions segment. (2) Component of our Cloud Solutions segment. (3) Consists of our legacy business payments and documents products (which are components of our Payments and Documents segment) and revenue from our Other segment. Geographic Information We have presented geographic information about our revenues below. This presentation allocates revenue based on the point of sale, not the location of the customer. Accordingly, we derive revenues from geographic locations based on the location of the customer that would vary from the geographic areas listed here. Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Revenues from unaffiliated customers: United States $ 70,244 $ 69,382 $ 139,225 $ 138,402 United Kingdom 28,335 27,107 56,029 52,074 Switzerland 12,009 9,759 22,876 19,519 Other 5,436 5,443 10,259 9,872 Total revenues from unaffiliated customers $ 116,024 $ 111,691 $ 228,389 $ 219,867 Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows: At December 31, At June 30, 2020 2020 (in thousands) Long-lived assets: United States $ 73,900 $ 64,858 United Kingdom 44,621 41,835 Other 17,346 16,977 Total long-lived assets $ 135,867 $ 123,670 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense we record in any interim period is based on our estimated effective tax rate for the fiscal year for those tax jurisdictions in which we can reliably estimate that rate. The calculation of our estimated effective tax rate requires an estimate of pre-tax income by tax jurisdiction as well as total tax expense for the fiscal year. Accordingly, our annual estimated effective tax rate is subject to adjustment if there are changes to our initial estimates of total tax expense or pre-tax income, including the mix of income by jurisdiction. For those tax jurisdictions for which we are unable to reliably estimate an overall effective tax rate, we calculate income tax expense based upon the actual effective tax rate for the year-to-date period. Provision for Income Taxes We recorded income tax expense of $1.3 million and an income tax benefit of $3.8 million for the three months ended December 31, 2020 and 2019, respectively. In the three months ended December 31, 2020, income tax expense was primarily attributable to our U.S., UK and Switzerland operations. In the three months ended December 31, 2019, the income tax benefit was driven by tax benefits recorded against operating losses in the U.S. and Israel, offset in part by tax expense recorded against operating income generated in our UK and Switzerland operations. We recorded income tax expense of $3.0 million and an income tax benefit of 3.8 million for the six months ended December 31, 2020 and 2019, respectively. In the six months ended December 31, 2020, income tax expense was primarily attributable to our U.S., UK and Switzerland operations. In addition, we recorded discrete tax expense of $0.7 million as a result of tax legislation enacted in the UK that increased the statutory UK tax rate from 17 percent to 19 percent which required us to re-value our net UK deferred tax liability balance to reflect this higher rate. In the six months ended December 31, 2019, the income tax benefit was driven by tax benefits recorded against operating losses in the U.S. and Israel, offset in part by tax expense recorded against operating income generated in our UK and Switzerland operations. We currently anticipate that our unrecognized tax benefits will decrease within the next twelve months by approximately $0.3 million as a result of the expiration of certain statutes of limitations associated with intercompany transactions subject to tax in multiple jurisdictions. We record a deferred tax asset if we believe that it is more likely than not that we will realize a future tax benefit. Ultimate realization of any deferred tax asset is dependent on our ability to generate sufficient future taxable income in the appropriate tax jurisdiction before the expiration of carryforward periods, if any. Our assessment of deferred tax asset recoverability considers many different factors including historical and projected operating results, the reversal of existing deferred tax liabilities that provide a source of future taxable income, the impact of current tax planning strategies and the availability of future tax planning strategies. We establish a valuation allowance against any deferred tax asset for which we are unable to conclude that recoverability is more likely than not. At December 31, 2020, we had a total valuation allowance of $37.6 million against our deferred tax assets given the uncertainty of recoverability of these amounts. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Acquired intangible assets are initially recorded at fair value and tested periodically for impairment. Goodwill represents the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed in a business combination and is tested at least annually for impairment. We perform an impairment test of goodwill during the fourth quarter of each fiscal year or sooner, if indicators of potential impairment arise. At December 31, 2020, the carrying value of goodwill for all of our reporting units was $227.3 million . The following tables set forth the information for intangible assets subject to amortization and for intangible assets not subject to amortization. As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 236,550 $ (170,567) $ 65,983 7.6 Core technology 141,366 (103,429) 37,937 6.7 Other intangible assets 22,745 (20,771) 1,974 4.3 Capitalized software development costs 27,784 (16,350) 11,434 2.8 Software (1) 93,294 (51,680) 41,614 3.7 Total $ 521,739 $ (362,797) $ 158,942 Unamortized intangible assets: Goodwill 227,346 Total intangible assets $ 386,288 As of June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 219,305 $ (157,008) $ 62,297 7.5 Core technology 135,720 (97,431) 38,289 7.2 Other intangible assets 22,099 (19,927) 2,172 4.8 Capitalized software development costs 26,222 (14,047) 12,175 2.9 Software (1) 84,493 (45,315) 39,178 3.8 Total $ 487,839 $ (333,728) $ 154,111 Unamortized intangible assets: Goodwill 205,713 Total intangible assets $ 359,824 —————— (1) Software includes purchased software and software developed for internal use. Estimated amortization expense for the remainder of fiscal year 2021 and subsequent fiscal years for acquired intangible assets, capitalized software development costs and software, in each case that have been placed in service as of December 31, 2020, is as follows: Acquired Intangible Assets Capitalized Software Development Costs Software (in thousands) Remaining 2021 $ 10,404 $ 2,353 $ 8,868 2022 19,194 4,707 9,756 2023 17,747 1,863 8,033 2024 15,897 1,133 5,910 2025 13,403 552 2,805 2026 and thereafter 29,249 48 1,074 Each period, for capitalized software development costs, we evaluate whether amortization expense using a ratio of revenue in the period to total expected revenue over the product’s expected useful life would result in greater amortization than as calculated under a straight-line methodology and, if that were to occur, amortization in that period would be accelerated accordingly. The following table represents a rollforward of our goodwill balances, by reportable segment: Cloud Solutions Banking Solutions Payments and Documents Other Total (in thousands) Balance at June 30, 2020 (1) $ 117,493 $ 39,516 $ 40,510 $ 8,194 $ 205,713 Goodwill acquired during the period 10,679 398 — — 11,077 Impact of foreign currency translation 5,460 — 5,096 — 10,556 Balance at December 31, 2020 (1) $ 133,632 $ 39,914 $ 45,606 $ 8,194 $ 227,346 —————— (1) O ther goodwill balance is net of $7.5 million accumulated impairment losses, previously recorded. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases We determine if any arrangement is, or contains, a lease at its inception based on whether or not we have the right to control the asset during the contract period. We are a lessee in any lease contract when we obtain the right to control the asset. We determine the lease term by assuming the exercise of options that are reasonably certain. Leases with a lease term of 12 months or less at inception are not reflected in our balance sheet and those lease costs are expensed on a straight-line basis over the respective term. Leases with a term greater than 12 months are reflected as non-current right-of-use (ROU) assets and current and non-current lease liabilities in our consolidated balance sheets. Current lease liabilities are classified as a component of accrued expenses and other current liabilities. As the implicit interest rate in our leases is generally not known, we use our incremental borrowing rate as the discount rate for purposes of determining the present value of our lease liabilities. Our determination of the incremental borrowing rate takes into consideration the expected term of the lease, the effect of the currency in which the lease is denominated and the rate of interest we would expect to incur on a collateralized debt instrument. At December 31, 2020, our weighted average discount rate utilized for our leases was 5.4%. When our contracts contain lease and non-lease elements, we account for both as a single lease component. We lease office space in cities worldwide under facility leases that expire at various dates. We are typically required to pay certain incremental operating costs above the base rent for our facility leases. Our leases may include periodic payment adjustments based on changes in applicable price indexes. To the extent the adjustment is considered a fixed payment it is included in the measurement of the ROU asset and lease liability, otherwise it is recognized in the period incurred. We also have a variety of data center locations and, to a lesser extent, vehicle and equipment leases. Our facility leases represent the substantial majority of our operating leases and often include renewal options that we can exercise unilaterally. At December 31, 2020, renewal options ranged from 3 months to 10 years. At December 31, 2020, our operating leases had a weighted average remaining lease term of 5.9 years and we had no material finance leases. Additional information of our lease activity, as of and for the three and six months ended December 31, 2020 is as follows: Operating leases: Three Months Ended December 31, 2020 Six Months Ended December 31, 2020 (in thousands) Operating lease cost $ 1,880 $ 3,819 Short-term lease cost 75 163 Variable lease cost 551 1,090 Sublease income (87) (176) Total lease cost $ 2,419 $ 4,896 December 31, 2020 (in thousands) Right-of-use assets, net $ 23,203 Operating lease liabilities, current (1) $ 6,954 Operating lease liabilities, non-current 20,133 Total operating lease liabilities $ 27,087 —————— (1) Included as a component of accrued expenses and other current liabilities. Six Months Ended December 31, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 4,124 Right-of-use assets obtained in exchange for lease obligations $ 2,015 Remaining maturities of lease liabilities at December 31, 2020 were as follows: For the year ending June 30, Operating Leases (in thousands) 2021 $ 4,276 2022 7,317 2023 5,298 2024 3,333 2025 2,932 Thereafter 8,951 Total lease payments 32,107 Less imputed interest (5,020) Total lease liabilities $ 27,087 As of December 31, 2020, we had additional operating leases that had not yet commenced of $0.6 million. These operating leases will commence in fiscal year 2021 and have a lease term between 13 to 24 months. During the three months ended December 31, 2020, we exited three facilities and recorded an impairment of $0.7 million on the ROU assets. Legal Matters We are, from time to time, a party to legal proceedings and claims that arise out of the ordinary course of our business. We are not currently a party to any material legal proceedings. |
Indebtedness
Indebtedness | 6 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Credit Agreement We are party to a credit agreement with Bank of America, N.A. and certain other lenders (the Credit Agreement) that provides for a revolving credit facility in the amount of up to $300 million (the Credit Facility) and that expires in July 2023. We have the right to request an increase of the aggregate commitments under the Credit Facility by up to an additional $150 million, subject to specified conditions. At December 31, 2020, we owe d $130 million under the Credit Facility. Borrowings under the Credit Facility may be used for lawful corporate purposes of Bottomline and its subsidiaries, including acquisitions, share repurchases, capital expenditures, the repayment or refinancing of indebtedness and general corporate purposes. The Credit Facility is available for the issuance of up to $20 million of letters of credit and up to $20 million of swing line loans. The Credit Agreement contains customary representations, warranties and covenants, including, but not limited to, material adverse events, specified restrictions on indebtedness, liens, investments, acquisitions, sales of assets, dividends and other restricted payments, and transactions with affiliates. We are required to comply with (a) a maximum consolidated net leverage ratio of 3.50 to 1.00; and (b) a minimum consolidated interest coverage ratio of 3.00 to 1.00. The Credit Agreement also contains customary events of default and related cure provisions. As of December 31, 2020, we were in compliance with all covenants. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Cash Flow Hedges Interest Rate Swap Agreements We utilize interest rate swap agreements to hedge our exposure to interest rate risk. At December 31, 2020, we had two outstanding interest rate swap agreements with notional values of $100 million and $80 million. The notional value of each interest rate swap agreement is expected to match the corresponding principal amount of a portion of our borrowings under the Credit Facility. The $100 million notional value agreement is effective as of December 1, 2017 and expires on December 1, 2021. During this period, the notional amount will have a fixed interest rate o f 1.9275% and Citizens Bank, National Association, as counterparty to the agreement, will pay us interest at a floating rate based on the 1 month USD-LIBOR-BBA swap rate on the notional amount. Interest payments are made quarterly on a net settlement basis. The $80 million notional value agreement is effective as of December 1, 2021 and expires on July 16, 2023. During this period, the notional amount will have a fixed interest rate of 2.125% and B ank of America, N.A., as counterparty to the agreement, will pay us interest at a floating rate based on the 1 month USD-LIBOR-BBA swap rate on the notional amount. Interest payments will be made monthly on a net settlement basis. We designated the interest rate swaps as hedging instruments and they qualified for hedge accounting upon inception and at December 31, 2020. To continue to qualify for hedge accounting, the instruments must retain a “highly effective” ability to hedge interest rate risk for borrowings under the Credit Facility. We are required to test hedge effectiveness at the end of each financial reporting period. If a derivative qualifies for hedge accounting, changes in fair value of the hedge instrument are recognized in accumulated other comprehensive income (loss) (AOCI) and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. T he reclassification into earnings is recorded as a component of our interest expense within other expense, net. If the instrument were to lose some or all of its hedge effectiveness, changes in fair value for the “ineffective” portion of the instrument would be recorded immediately in earnings. The fair values of the interest rate swaps and their respective locations in our consolidated balance sheets at December 31, 2020 and June 30, 2020 were as follows: Description Balance Sheet Location December 31, 2020 June 30, 2020 Derivative interest rate swaps (in thousands) Short-term derivative liability Accrued expenses and other current liabilities $ 1,651 $ 1,631 Long-term derivative liability Other liabilities $ 2,516 $ 3,448 The following table presents the effect of the derivative interest rate swaps in our consolidated statement of comprehensive loss for the six months ended December 31, 2020 and 2019. Gain (Loss) in AOCI June 30, 2020 Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss Reclassified from AOCI into Net Loss (Effective Portion) (1) Gain (Loss) in AOCI December 31, 2020 (in thousands) Derivative interest rate swap $ (5,079) $ 7 $ 905 $ (4,167) Gain (Loss) in AOCI June 30, 2019 Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss Reclassified from AOCI into Net Loss (Effective Portion) (1) Gain (Loss) in AOCI December 31, 2019 (in thousands) Derivative interest rate swap $ (1,285) $ (49) $ (59) $ (1,393) —————— (1) Recorded as interest income (expense) within other expense, net in our unaudited consolidated statements of comprehensive income (loss). During the three and six months ended December 31, 2020, we concluded that no portion of the hedges was ineffective. We expect to reclassify approximately $1.8 million of this unrealized loss from AOCI to earnings over the next twelve months. |
Postretirement and Other Employ
Postretirement and Other Employee Benefits | 6 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Postretirement and Other Employee Benefits | Postretirement and Other Employee Benefits Defined Benefit Pension Plan We sponsor defined benefit pension plans for our Swiss-based employees (the Swiss pension plans) that are governed by local regulatory requirements. The Swiss pension plans include certain minimum benefit guarantees that, under U.S. GAAP, require defined benefit plan accounting. Net periodic pension costs for the Swiss pension plans included the following components: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Components of net periodic cost Service cost $ 793 $ 729 $ 1,558 $ 1,453 Interest cost 38 56 75 112 Prior service credit (84) (77) (167) (154) Net actuarial loss 62 119 123 237 Expected return on plan assets (301) (309) (586) (616) Net periodic cost $ 508 $ 518 $ 1,003 $ 1,032 The components of net periodic pension cost other than current service cost are presented within other expense, net in our unaudited consolidated statements of comprehensive income (loss). |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn January 13, 2021 we acquired French-headquartered Treasury Xpress Holding SAS (TX) for a purchase price of $31.9 million in cash, subject to adjustment based on a post-closing calculation of certain cash and debt balances which we do not expect will result in any material change. We also issued 66,402 shares of our common stock to certain selling stockholders of TX with vesting conditions tied to continued employment with us. These shares are compensatory and we will record share-based payment expense over their vesting period of five years. TX operates predominantly in France, the United States and the Middle-East and is a leading provider of cloud-based treasury management solutions for corporations and banks around the world. The operating results of TX will be included as a component of our Cloud Solutions segment from the acquisition date forward. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted Pronouncements | Recently Adopted Pronouncements Financial Instruments - Credit Losses: In June 2016, the Financial Accounting Standards Board (FASB) issued an accounting standard update that replaces the incurred loss impairment model with an expected loss model for financial assets held at amortized cost, eliminates the concept of other-than-temporary impairment and requires credit losses associated with available-for-sale debt securities to be recorded through an allowance rather than a reduction in the amortized cost basis of the security. The changes are expected to result in earlier recognition of credit losses associated with financial assets, including trade accounts receivable. We adopted this standard on July 1, 2020, on a modified retrospective basis, with the cumulative-effect accounting consequence recorded as an adjustment to the opening balance of accumulated deficit as of the effective date. The adoption of this standard did not have a material impact on our financial statements. Goodwill Impairment: In January 2017, the FASB issued an accounting standard update to simplify the test for goodwill impairment which removes the requirement to compare the carrying value of goodwill against its implied fair value. Under the revised standard, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss should not exceed the total amount of goodwill allocated to the reporting unit. We adopted this standard on July 1, 2020 and do not expect the adoption of this standard to have a material impact on our financial statements. Income Taxes: In December 2019, the FASB issued an accounting standard update related to simplifying the accounting for income taxes by eliminating certain exceptions related to intraperiod tax allocations, basis differences for changes in ownership interest in equity method investments and the calculation of interim period income tax. The standard also simplifies other aspects of accounting for taxes. We adopted this standard on July 1, 2020 and the adoption did not have a material impact on our financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We have certain financial instruments which consist of cash and cash equivalents, cash held for customers, marketable securities, accounts receivable, notes receivable, contract assets, accounts payable, customer account liabilities, certain derivative instruments, assets related to deposits made to fund future requirements associated with Israeli severance arrangements and debt drawn on our Credit Facility (as defined in Note 11). Fair value information for each of these instruments is as follows: • Cash and cash equivalents, cash held for customers, accounts receivable, notes receivable, contract assets, accounts payable and customer account liabilities fair values approximate their carrying values, due to the expected duration of these instruments. • Marketable securities classified as held to maturity, all of which mature within one year, are recorded at amortized cost, which at December 31, 2020 and June 30, 2020, approximated fair value. • Marketable debt securities classified as available for sale are recorded at fair value. Unrealized gains and losses are included as a component of other accumulated comprehensive income (loss) in stockholders’ equity, net of tax. We use the specific identification method to determine any realized gains or losses from the sale of our marketable debt securities classified as available for sale. We assess securities with an amortized cost basis in excess of estimated fair value for credit loss. As of December 31, 2020 and June 30, 2020, the unrealized losses associated with available for sale securities was not material. No credit loss has been recorded as we do not intend to sell the investments prior to recovering their amortized costs basis. • We have certain derivative instruments accounted for at fair value. We hold a convertible note with a preferential conversion feature which qualifies as a derivative instrument. The fair value assumptions consider the nature of the conversion feature and the expected timeline to a qualifying conversion event. We are also a party to interest rate swap instruments. The fair value of our interest rate swaps are based on the present value of projected cash flows that will occur over the life of the instruments, after considering certain contractual terms and counterparty credit risk. • The carrying value of assets related to deposits we have made to fund future requirements associated with Israeli severance arrangements were $1.0 million at December 31, 2020 and June 30, 2020, respectively, which approximated their fair value. • We hold certain other investments accounted for at fair value. The fair value of these investments was $0.8 million and $0.5 million at December 31, 2020 and June 30, 2020, respectively. We also have investments for which there is no readily determinable fair value. The carrying value of these investments was $7.6 million and $0.5 million at December 31, 2020 and June 30, 2020, respectively. Investments for which we cannot readily determine fair value are recorded at cost, less impairment (if any), plus or minus adjustments for observable price changes. • We have borrowings of $130 million against our Credit Facility. The fair value of these borrowings, which are classified as Level 2, approximates their carrying value at December 31, 2020, as the instrument carries a variable rate of interest which reflects current market rates. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Assets and Liabilities | The table below presents our contract assets and deferred revenue balances as of December 31, 2020 and June 30, 2020. December 31, June 30, 2020 2020 $ Change (in thousands) Contract assets 6,353 3,646 2,707 Deferred revenue 86,123 96,033 (9,910) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | At December 31, 2020 and June 30, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows: December 31, 2020 June 30, 2020 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Assets Money market funds (cash and cash equivalents) $ 303 $ — $ — $ 303 $ 354 $ — $ — $ 354 Available for sale securities - Debt U.S. Corporate $ — $ — $ — $ — $ — $ — $ — $ — Government - U.S. treasury securities — 10,190 — 10,190 — 10,148 — 10,148 Total available for sale securities $ — $ 10,190 $ — $ 10,190 $ — $ 10,148 $ — $ 10,148 Preferential conversion feature (long-term) $ — $ — $ 565 $ 565 $ — $ — $ — $ — Other investments (long-term) — — 763 763 — — 514 514 Total assets $ 303 $ 10,190 $ 1,328 $ 11,821 $ 354 $ 10,148 $ 514 $ 11,016 Liabilities Interest rate swap (short-term) $ — $ 1,651 $ — $ 1,651 $ — $ 1,631 $ — $ 1,631 Interest rate swap (long-term) $ — $ 2,516 $ — $ 2,516 $ — $ 3,448 $ — $ 3,448 Total liabilities $ — $ 4,167 $ — $ 4,167 $ — $ 5,079 $ — $ 5,079 |
Schedule of Marketable Securities by Major Security Type | The table below presents information regarding our marketable securities by major security type as of December 31, 2020 and June 30, 2020. December 31, 2020 June 30, 2020 Held to Maturity Available for Sale Total Held to Maturity Available for Sale Total (in thousands) Marketable securities: Government and other debt securities $ 69 $ 10,190 $ 10,259 $ 61 $ 10,148 $ 10,209 Total marketable securities $ 69 $ 10,190 $ 10,259 $ 61 $ 10,148 $ 10,209 |
Summary of Estimated Fair Value of Our Investments in Available for Sale Marketable Securities Classified | The following table summarizes the estimated fair value of our investments in available for sale marketable securities classified by the contractual maturity date of the securities: December 31, 2020 (in thousands) Due within 1 year $ 10,190 Due in 1 year through 5 years — Total $ 10,190 |
Summary of Gross Unrealized Losses and Fair Values of Available for Sale Investments | The following table presents the aggregate fair values and gross unrealized losses for those available for sale investments that were in an unrealized loss position as of December 31, 2020 and June 30, 2020, respectively, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: At December 31, 2020 At June 30, 2020 Less than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) Government - U.S. treasury securities $ 8,176 $ (1) $ 2,012 $ (1) Total $ 8,176 $ (1) $ 2,012 $ (1) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands, except per share amounts) Numerator - basic and diluted: Net income (loss) $ (4,615) $ 2,609 $ (4,224) $ 1,242 Denominator: Shares used in computing basic net income (loss) per share attributable to common stockholders 42,751 41,693 42,604 41,590 Impact of dilutive securities — 399 — 327 Shares used in computing diluted net income (loss) per share attributable to common stockholders 42,751 42,092 42,604 41,917 Basic and diluted net income (loss) per share attributable to common stockholders $ (0.11) $ 0.06 $ (0.10) $ 0.03 |
Operations by Segments and Ge_2
Operations by Segments and Geographic Areas (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Segment information for the three and six months ended December 31, 2020 and 2019 according to the segment descriptions above, is as follows: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Segment revenue: Cloud Solutions $ 69,660 $ 64,341 $ 134,616 $ 125,363 Banking Solutions 23,980 23,267 50,170 47,436 Payments and Documents 17,178 19,514 34,574 38,092 Other 5,206 4,569 9,029 8,976 Total segment revenue $ 116,024 $ 111,691 $ 228,389 $ 219,867 Segment measure of profit (loss): Cloud Solutions $ 15,618 $ 15,014 $ 30,215 $ 28,813 Banking Solutions (56) (376) 2,900 159 Payments and Documents 4,087 5,802 8,187 10,811 Other (1,945) (2,196) (5,052) (4,062) Total measure of segment profit $ 17,704 $ 18,244 $ 36,250 $ 35,721 |
Reconciliation of Measure of Total Segment Profit to GAAP Income (Loss) Before Income Taxes | A reconciliation of the total measure of segment profit to GAAP income (loss) before income taxes is as follows: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Total measure of segment profit $ 17,704 $ 18,244 $ 36,250 $ 35,721 Less: Amortization of acquisition-related intangible assets (5,142) (5,213) (10,171) (10,163) Stock-based compensation plan expense (12,173) (10,965) (22,146) (22,009) Acquisition and integration-related expenses (1,095) (1,957) (1,340) (3,654) Restructuring expense (921) (234) (991) (209) Excess depreciation associated with restructuring events (528) — (528) — Other non-core (expense) benefit (48) (4) (96) 10 Global ERP system implementation and other costs — (200) — (424) Other expense, net of pension adjustments (1,139) (842) (2,165) (1,807) Loss before income taxes $ (3,342) $ (1,171) $ (1,187) $ (2,535) |
Schedule of Segment Depreciation and Amortization Expense Included in Measure of Segment Profit | The following depreciation and other amortization expense amounts are included in the measure of segment profit: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Depreciation and other amortization expense: Cloud Solutions $ 4,409 $ 3,917 $ 8,810 $ 7,511 Banking Solutions 2,838 2,202 5,590 4,297 Payments and Documents 270 235 540 455 Other 288 206 564 389 Total depreciation and other amortization expense $ 7,805 $ 6,560 $ 15,504 $ 12,652 |
Summary of Revenue Disaggregated by Major Product Category and the Related Financial Statement Classification of Revenue | The tables below present our subscriptions revenue and total revenue disaggregated by major product classification for the three and six months ended December 31, 2020 and 2019. (in thousands) Three Months Ended December 31, 2020 2019 Subscriptions Revenue Total Revenue Subscriptions Revenue Total Revenue Payment Platforms (1) $ 43,433 $ 47,811 $ 38,012 $ 42,928 Banking Solutions 21,297 23,980 18,307 23,267 Legal Spend Management (2) 21,846 21,849 21,413 21,413 All other (3) 6,822 22,384 6,353 24,083 Total revenues $ 93,398 $ 116,024 $ 84,085 $ 111,691 (in thousands) Six Months Ended December 31, 2020 2019 Subscriptions Revenue Total Revenue Subscriptions Revenue Total Revenue Payment Platforms (1) $ 83,681 $ 92,217 $ 73,218 $ 83,376 Banking Solutions 44,282 50,170 36,680 47,436 Legal Spend Management (2) 42,396 42,399 41,987 41,987 All other (3) 13,423 43,603 12,266 47,068 Total revenues $ 183,782 $ 228,389 $ 164,151 $ 219,867 We derive the majority of our revenue from subscription arrangements. The substantial majority of our non-subscription revenue is derived from software support and maintenance fees and from professional services, with such revenue being recorded by all of our operating segments but with the largest concentration of this revenue being derived from our legacy business payments and documents products in our Payments and Documents segment. (1) Consists of our Paymode-X, PTX and financial messaging settlement network, all of which are components of our Cloud Solutions segment. (2) Component of our Cloud Solutions segment. (3) Consists of our legacy business payments and documents products (which are components of our Payments and Documents segment) and revenue from our Other segment. |
Schedule of Revenue Based on Point of Sale | We have presented geographic information about our revenues below. This presentation allocates revenue based on the point of sale, not the location of the customer. Accordingly, we derive revenues from geographic locations based on the location of the customer that would vary from the geographic areas listed here. Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Revenues from unaffiliated customers: United States $ 70,244 $ 69,382 $ 139,225 $ 138,402 United Kingdom 28,335 27,107 56,029 52,074 Switzerland 12,009 9,759 22,876 19,519 Other 5,436 5,443 10,259 9,872 Total revenues from unaffiliated customers $ 116,024 $ 111,691 $ 228,389 $ 219,867 |
Schedule of Long-Lived Assets, Based on Geographical Location, Excluding Deferred Tax Assets and Intangible Assets | Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows: At December 31, At June 30, 2020 2020 (in thousands) Long-lived assets: United States $ 73,900 $ 64,858 United Kingdom 44,621 41,835 Other 17,346 16,977 Total long-lived assets $ 135,867 $ 123,670 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization and for Intangible Assets Not Subject to Amortization | The following tables set forth the information for intangible assets subject to amortization and for intangible assets not subject to amortization. As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 236,550 $ (170,567) $ 65,983 7.6 Core technology 141,366 (103,429) 37,937 6.7 Other intangible assets 22,745 (20,771) 1,974 4.3 Capitalized software development costs 27,784 (16,350) 11,434 2.8 Software (1) 93,294 (51,680) 41,614 3.7 Total $ 521,739 $ (362,797) $ 158,942 Unamortized intangible assets: Goodwill 227,346 Total intangible assets $ 386,288 As of June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Remaining Life (in thousands) (in years) Amortized intangible assets: Customer related $ 219,305 $ (157,008) $ 62,297 7.5 Core technology 135,720 (97,431) 38,289 7.2 Other intangible assets 22,099 (19,927) 2,172 4.8 Capitalized software development costs 26,222 (14,047) 12,175 2.9 Software (1) 84,493 (45,315) 39,178 3.8 Total $ 487,839 $ (333,728) $ 154,111 Unamortized intangible assets: Goodwill 205,713 Total intangible assets $ 359,824 —————— (1) Software includes purchased software and software developed for internal use. |
Schedule of Estimated Amortization Expense | Estimated amortization expense for the remainder of fiscal year 2021 and subsequent fiscal years for acquired intangible assets, capitalized software development costs and software, in each case that have been placed in service as of December 31, 2020, is as follows: Acquired Intangible Assets Capitalized Software Development Costs Software (in thousands) Remaining 2021 $ 10,404 $ 2,353 $ 8,868 2022 19,194 4,707 9,756 2023 17,747 1,863 8,033 2024 15,897 1,133 5,910 2025 13,403 552 2,805 2026 and thereafter 29,249 48 1,074 |
Schedule of Rollforward of Goodwill Balances, by Reportable Segment | The following table represents a rollforward of our goodwill balances, by reportable segment: Cloud Solutions Banking Solutions Payments and Documents Other Total (in thousands) Balance at June 30, 2020 (1) $ 117,493 $ 39,516 $ 40,510 $ 8,194 $ 205,713 Goodwill acquired during the period 10,679 398 — — 11,077 Impact of foreign currency translation 5,460 — 5,096 — 10,556 Balance at December 31, 2020 (1) $ 133,632 $ 39,914 $ 45,606 $ 8,194 $ 227,346 —————— (1) O ther goodwill balance is net of $7.5 million accumulated impairment losses, previously recorded. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Expenses and Supplemental Cash Flow Information | Additional information of our lease activity, as of and for the three and six months ended December 31, 2020 is as follows: Operating leases: Three Months Ended December 31, 2020 Six Months Ended December 31, 2020 (in thousands) Operating lease cost $ 1,880 $ 3,819 Short-term lease cost 75 163 Variable lease cost 551 1,090 Sublease income (87) (176) Total lease cost $ 2,419 $ 4,896 December 31, 2020 (in thousands) Right-of-use assets, net $ 23,203 Operating lease liabilities, current (1) $ 6,954 Operating lease liabilities, non-current 20,133 Total operating lease liabilities $ 27,087 —————— (1) Included as a component of accrued expenses and other current liabilities. Six Months Ended December 31, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 4,124 Right-of-use assets obtained in exchange for lease obligations $ 2,015 |
Schedule of Operating Lease Maturities | Remaining maturities of lease liabilities at December 31, 2020 were as follows: For the year ending June 30, Operating Leases (in thousands) 2021 $ 4,276 2022 7,317 2023 5,298 2024 3,333 2025 2,932 Thereafter 8,951 Total lease payments 32,107 Less imputed interest (5,020) Total lease liabilities $ 27,087 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Values of the Interest Rate Swap | The fair values of the interest rate swaps and their respective locations in our consolidated balance sheets at December 31, 2020 and June 30, 2020 were as follows: Description Balance Sheet Location December 31, 2020 June 30, 2020 Derivative interest rate swaps (in thousands) Short-term derivative liability Accrued expenses and other current liabilities $ 1,651 $ 1,631 Long-term derivative liability Other liabilities $ 2,516 $ 3,448 |
Summary of Effect of Derivative Interest Rate Swap and Related Tax Effects in AOCI | The following table presents the effect of the derivative interest rate swaps in our consolidated statement of comprehensive loss for the six months ended December 31, 2020 and 2019. Gain (Loss) in AOCI June 30, 2020 Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss Reclassified from AOCI into Net Loss (Effective Portion) (1) Gain (Loss) in AOCI December 31, 2020 (in thousands) Derivative interest rate swap $ (5,079) $ 7 $ 905 $ (4,167) Gain (Loss) in AOCI June 30, 2019 Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) Amount of (Gain) Loss Reclassified from AOCI into Net Loss (Effective Portion) (1) Gain (Loss) in AOCI December 31, 2019 (in thousands) Derivative interest rate swap $ (1,285) $ (49) $ (59) $ (1,393) —————— (1) Recorded as interest income (expense) within other expense, net in our unaudited consolidated statements of comprehensive income (loss). |
Postretirement and Other Empl_2
Postretirement and Other Employee Benefits (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Costs for the Swiss Pension Plan | Net periodic pension costs for the Swiss pension plans included the following components: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (in thousands) Components of net periodic cost Service cost $ 793 $ 729 $ 1,558 $ 1,453 Interest cost 38 56 75 112 Prior service credit (84) (77) (167) (154) Net actuarial loss 62 119 123 237 Expected return on plan assets (301) (309) (586) (616) Net periodic cost $ 508 $ 518 $ 1,003 $ 1,032 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 433.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 160.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 6,353 | $ 3,646 |
Change in contract assets | 2,707 | |
Deferred revenue | 86,123 | $ 96,033 |
Change in deferred revenue | $ (9,910) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue | $ 28.4 | $ 30 | $ 68.6 | $ 64 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Assets | ||
Total available for sale securities | $ 10,190 | $ 10,148 |
Fair Value, Recurring | ||
Assets | ||
Money market funds (cash and cash equivalents) | 303 | 354 |
Total available for sale securities | 10,190 | 10,148 |
Preferential conversion feature (long-term) | 565 | 0 |
Other investments (long-term) | 763 | 514 |
Total assets | 11,821 | 11,016 |
Liabilities | ||
Total liabilities | 4,167 | 5,079 |
Fair Value, Recurring | U.S. Corporate | ||
Assets | ||
Total available for sale securities | 0 | 0 |
Fair Value, Recurring | Government - U.S. treasury securities | ||
Assets | ||
Total available for sale securities | 10,190 | 10,148 |
Fair Value, Recurring | Interest Rate Swap | ||
Liabilities | ||
Interest rate swap (short-term) | 1,651 | 1,631 |
Interest rate swap (long-term) | 2,516 | 3,448 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Money market funds (cash and cash equivalents) | 303 | 354 |
Total available for sale securities | 0 | 0 |
Preferential conversion feature (long-term) | 0 | 0 |
Other investments (long-term) | 0 | 0 |
Total assets | 303 | 354 |
Liabilities | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. Corporate | ||
Assets | ||
Total available for sale securities | 0 | 0 |
Fair Value, Recurring | Level 1 | Government - U.S. treasury securities | ||
Assets | ||
Total available for sale securities | 0 | 0 |
Fair Value, Recurring | Level 1 | Interest Rate Swap | ||
Liabilities | ||
Interest rate swap (short-term) | 0 | 0 |
Interest rate swap (long-term) | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Money market funds (cash and cash equivalents) | 0 | 0 |
Total available for sale securities | 10,190 | 10,148 |
Preferential conversion feature (long-term) | 0 | 0 |
Other investments (long-term) | 0 | 0 |
Total assets | 10,190 | 10,148 |
Liabilities | ||
Total liabilities | 4,167 | 5,079 |
Fair Value, Recurring | Level 2 | U.S. Corporate | ||
Assets | ||
Total available for sale securities | 0 | 0 |
Fair Value, Recurring | Level 2 | Government - U.S. treasury securities | ||
Assets | ||
Total available for sale securities | 10,190 | 10,148 |
Fair Value, Recurring | Level 2 | Interest Rate Swap | ||
Liabilities | ||
Interest rate swap (short-term) | 1,651 | 1,631 |
Interest rate swap (long-term) | 2,516 | 3,448 |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Money market funds (cash and cash equivalents) | 0 | 0 |
Total available for sale securities | 0 | 0 |
Preferential conversion feature (long-term) | 565 | 0 |
Other investments (long-term) | 763 | 514 |
Total assets | 1,328 | 514 |
Liabilities | ||
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. Corporate | ||
Assets | ||
Total available for sale securities | 0 | 0 |
Fair Value, Recurring | Level 3 | Government - U.S. treasury securities | ||
Assets | ||
Total available for sale securities | 0 | 0 |
Fair Value, Recurring | Level 3 | Interest Rate Swap | ||
Liabilities | ||
Interest rate swap (short-term) | 0 | 0 |
Interest rate swap (long-term) | $ 0 | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other investments at fair value | $ 800 | $ 500 | |
Investments with no readily determinable fair value | 7,600 | 500 | |
Borrowings under credit facility | 130,000 | $ 180,000 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings under credit facility | 130,000 | ||
Israeli Severance Arrangements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of assets related to deposits | $ 1,000 | $ 1,000 |
Fair Value - Marketable Securit
Fair Value - Marketable Securities by Major Security Type (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Marketable Securities [Line Items] | ||
Held to Maturity | $ 69 | $ 61 |
Available for Sale | 10,190 | 10,148 |
Total | 10,259 | 10,209 |
Government and other debt securities | ||
Marketable Securities [Line Items] | ||
Held to Maturity | 69 | 61 |
Available for Sale | 10,190 | 10,148 |
Total | $ 10,259 | $ 10,209 |
Fair Value - Estimated Fair Val
Fair Value - Estimated Fair Value of Our Investments in Available for Sale Marketable Securities Classified (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value Disclosures [Abstract] | ||
Due within 1 year | $ 10,190 | |
Due in 1 year through 5 years | 0 | |
Total | $ 10,190 | $ 10,148 |
Fair Value - Summary of Gross U
Fair Value - Summary of Gross Unrealized Losses and Fair Values of Available for Sale Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Schedule Of Available For Sale Securities Debt Maturities [Line Items] | ||
Less than 12 months, fair value | $ 8,176 | $ 2,012 |
Less than 12 months, unrealized loss | (1) | (1) |
Government - U.S. treasury securities | ||
Schedule Of Available For Sale Securities Debt Maturities [Line Items] | ||
Less than 12 months, fair value | 8,176 | 2,012 |
Less than 12 months, unrealized loss | $ (1) | $ (1) |
Business and Asset Acquisitio_2
Business and Asset Acquisitions (Details) $ in Thousands, SFr in Millions | Sep. 30, 2020USD ($) | Jul. 31, 2020USD ($)shares | Jul. 31, 2020CHF (SFr)shares | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 227,346 | $ 205,713 | |||
Fmr Systems Inc | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 400 | ||||
Estimated useful life of intangible assets acquired | 9 years | ||||
Cash paid for asset acquisition | $ 2,000 | ||||
Contingent future cash payments | 300 | ||||
Intangible assets acquired | $ 2,300 | ||||
AnaSys AG | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | 13,900 | ||||
Payments to acquire business | $ 5,700 | SFr 5.2 | |||
Number of shares issued (in shares) | shares | 166,393 | 166,393 | |||
Closing transactions cost | $ 8,200 | ||||
Number of shares valued (in shares) | shares | 28,000 | 28,000 | |||
Stock vesting period | 5 years | 5 years | |||
Goodwill | $ 10,700 | ||||
Identifiable intangible assets | $ 6,300 | ||||
Estimated useful life of intangible assets acquired | 13 years |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator - basic and diluted: | ||||
Net income (loss) | $ (4,615) | $ 2,609 | $ (4,224) | $ 1,242 |
Denominator: | ||||
Shares used in computing basic net income (loss) per share attributable to common stockholders (in shares) | 42,751 | 41,693 | 42,604 | 41,590 |
Impact of dilutive securities (in shares) | 0 | 399 | 0 | 327 |
Shares used in computing diluted net income (loss) per share attributable to common stockholders (in shares) | 42,751 | 42,092 | 42,604 | 41,917 |
Basic and diluted net income (loss) per share (in dollars per share) | $ (0.11) | $ 0.06 | $ (0.10) | $ 0.03 |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Restricted Stock And Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of diluted earnings per share (in shares) | 2.4 | 2.5 |
Performance shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of diluted earnings per share (in shares) | 0.2 |
Operations by Segments and Ge_3
Operations by Segments and Geographic Areas - Additional Information (Details) | 6 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Operations by Segments and Ge_4
Operations by Segments and Geographic Areas - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment revenue: | ||||
Total revenues | $ 116,024 | $ 111,691 | $ 228,389 | $ 219,867 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | (2,454) | (589) | 481 | (1,240) |
Operating Segments | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | 17,704 | 18,244 | 36,250 | 35,721 |
Cloud Solutions | ||||
Segment revenue: | ||||
Total revenues | 69,660 | 64,341 | 134,616 | 125,363 |
Cloud Solutions | Operating Segments | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | 15,618 | 15,014 | 30,215 | 28,813 |
Banking Solutions | ||||
Segment revenue: | ||||
Total revenues | 23,980 | 23,267 | 50,170 | 47,436 |
Banking Solutions | Operating Segments | ||||
Segment revenue: | ||||
Total revenues | 23,980 | 23,267 | 50,170 | 47,436 |
Segment measure of profit (loss): | ||||
Total measure of segment profit | (56) | (376) | 2,900 | 159 |
Payments and Documents | ||||
Segment revenue: | ||||
Total revenues | 17,178 | 19,514 | 34,574 | 38,092 |
Payments and Documents | Operating Segments | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | 4,087 | 5,802 | 8,187 | 10,811 |
Other | ||||
Segment revenue: | ||||
Total revenues | 5,206 | 4,569 | 9,029 | 8,976 |
Other | Operating Segments | ||||
Segment measure of profit (loss): | ||||
Total measure of segment profit | $ (1,945) | $ (2,196) | $ (5,052) | $ (4,062) |
Operations by Segments and Ge_5
Operations by Segments and Geographic Areas - Reconciliation of Measure of Total Segment Profit to GAAP Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total measure of segment profit | $ (2,454) | $ (589) | $ 481 | $ (1,240) |
Less: | ||||
Amortization of acquisition-related intangible assets | (5,142) | (5,213) | (10,171) | (10,163) |
Stock-based compensation plan expense | (22,146) | (22,009) | ||
Excess depreciation associated with restructuring events | (528) | 0 | (528) | 0 |
Other expense, net of pension adjustments | (888) | (582) | (1,668) | (1,295) |
Loss before income taxes | (3,342) | (1,171) | (1,187) | (2,535) |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total measure of segment profit | 17,704 | 18,244 | 36,250 | 35,721 |
Segment Reconciling Items | ||||
Less: | ||||
Amortization of acquisition-related intangible assets | (5,142) | (5,213) | (10,171) | (10,163) |
Stock-based compensation plan expense | (12,173) | (10,965) | (22,146) | (22,009) |
Acquisition and integration-related expenses | (1,095) | (1,957) | (1,340) | (3,654) |
Restructuring expense | (921) | (234) | (991) | (209) |
Other non-core (expense) benefit | (48) | (4) | (96) | 10 |
Global ERP system implementation and other costs | 0 | (200) | 0 | (424) |
Other expense, net of pension adjustments | $ (1,139) | $ (842) | $ (2,165) | $ (1,807) |
Operations by Segments and Ge_6
Operations by Segments and Geographic Areas - Schedule of Segment Depreciation and Amortization Expense Included in Measure of Segment Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | $ 7,805 | $ 6,560 | $ 15,504 | $ 12,652 |
Cloud Solutions | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 4,409 | 3,917 | 8,810 | 7,511 |
Banking Solutions | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 2,838 | 2,202 | 5,590 | 4,297 |
Payments and Documents | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | 270 | 235 | 540 | 455 |
Other | ||||
Depreciation and other amortization expense: | ||||
Depreciation and other amortization expense | $ 288 | $ 206 | $ 564 | $ 389 |
Operations by Segments and Ge_7
Operations by Segments and Geographic Areas - Schedule of Disaggregated Revenue by Major Product Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 116,024 | $ 111,691 | $ 228,389 | $ 219,867 |
Subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 93,398 | 84,085 | 183,782 | 164,151 |
Payment platforms | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 47,811 | 42,928 | 92,217 | 83,376 |
Payment platforms | Subscriptions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 43,433 | 38,012 | 83,681 | 73,218 |
Banking Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 23,980 | 23,267 | 50,170 | 47,436 |
Banking Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 23,980 | 23,267 | 50,170 | 47,436 |
Banking Solutions | Subscriptions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 21,297 | 18,307 | 44,282 | 36,680 |
Legal Spend Management | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 21,849 | 21,413 | 42,399 | 41,987 |
Legal Spend Management | Subscriptions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 21,846 | 21,413 | 42,396 | 41,987 |
All other | All other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 22,384 | 24,083 | 43,603 | 47,068 |
All other | Subscriptions | All other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 6,822 | $ 6,353 | $ 13,423 | $ 12,266 |
Operations by Segments and Ge_8
Operations by Segments and Geographic Areas - Schedule of Revenue Based on Point of Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 116,024 | $ 111,691 | $ 228,389 | $ 219,867 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 70,244 | 69,382 | 139,225 | 138,402 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 28,335 | 27,107 | 56,029 | 52,074 |
Switzerland | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | 12,009 | 9,759 | 22,876 | 19,519 |
Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 5,436 | $ 5,443 | $ 10,259 | $ 9,872 |
Operations by Segments and Ge_9
Operations by Segments and Geographic Areas - Schedule of Long-Lived Assets, Based on Geographical Location, Excluding Deferred Tax Assets and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Long-lived assets: | ||
Long-lived assets | $ 135,867 | $ 123,670 |
United States | ||
Long-lived assets: | ||
Long-lived assets | 73,900 | 64,858 |
United Kingdom | ||
Long-lived assets: | ||
Long-lived assets | 44,621 | 41,835 |
Other | ||
Long-lived assets: | ||
Long-lived assets | $ 17,346 | $ 16,977 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 1,273 | $ (3,780) | $ 3,037 | $ (3,777) |
Discrete tax expense for change in income tax rate | 3,000 | $ 700 | ||
Anticipated decrease in unrecognized tax benefits | 300 | 300 | ||
Valuation allowance against certain deferred tax assets | $ 37,600 | $ 37,600 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 227,346 | $ 205,713 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Subject to Amortization and for Intangible Assets Not Subject to Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 521,739 | $ 487,839 |
Accumulated Amortization | (362,797) | (333,728) |
Net Carrying Value | 158,942 | 154,111 |
Goodwill | 227,346 | 205,713 |
Total intangible assets | 386,288 | 359,824 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 236,550 | 219,305 |
Accumulated Amortization | (170,567) | (157,008) |
Net Carrying Value | $ 65,983 | $ 62,297 |
Weighted Average Remaining Life | 7 years 7 months 6 days | 7 years 6 months |
Core technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 141,366 | $ 135,720 |
Accumulated Amortization | (103,429) | (97,431) |
Net Carrying Value | $ 37,937 | $ 38,289 |
Weighted Average Remaining Life | 6 years 8 months 12 days | 7 years 2 months 12 days |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 22,745 | $ 22,099 |
Accumulated Amortization | (20,771) | (19,927) |
Net Carrying Value | $ 1,974 | $ 2,172 |
Weighted Average Remaining Life | 4 years 3 months 18 days | 4 years 9 months 18 days |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 27,784 | $ 26,222 |
Accumulated Amortization | (16,350) | (14,047) |
Net Carrying Value | $ 11,434 | $ 12,175 |
Weighted Average Remaining Life | 2 years 9 months 18 days | 2 years 10 months 24 days |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 93,294 | $ 84,493 |
Accumulated Amortization | (51,680) | (45,315) |
Net Carrying Value | $ 41,614 | $ 39,178 |
Weighted Average Remaining Life | 3 years 8 months 12 days | 3 years 9 months 18 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Acquired Intangible Assets | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining 2021 | $ 10,404 |
2022 | 19,194 |
2023 | 17,747 |
2024 | 15,897 |
2025 | 13,403 |
2026 and thereafter | 29,249 |
Capitalized Software Development Costs | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining 2021 | 2,353 |
2022 | 4,707 |
2023 | 1,863 |
2024 | 1,133 |
2025 | 552 |
2026 and thereafter | 48 |
Software | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining 2021 | 8,868 |
2022 | 9,756 |
2023 | 8,033 |
2024 | 5,910 |
2025 | 2,805 |
2026 and thereafter | $ 1,074 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Rollforward of Goodwill Balances, by Reportable Segment (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 205,713 |
Goodwill acquired during the period | 11,077 |
Impact of foreign currency translation | 10,556 |
Ending balance | 227,346 |
Cloud Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 117,493 |
Goodwill acquired during the period | 10,679 |
Impact of foreign currency translation | 5,460 |
Ending balance | 133,632 |
Banking Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 39,516 |
Goodwill acquired during the period | 398 |
Impact of foreign currency translation | 0 |
Ending balance | 39,914 |
Payments and Documents | |
Goodwill [Roll Forward] | |
Beginning balance | 40,510 |
Goodwill acquired during the period | 0 |
Impact of foreign currency translation | 5,096 |
Ending balance | 45,606 |
Other | |
Goodwill [Roll Forward] | |
Beginning balance | 8,194 |
Goodwill acquired during the period | 0 |
Impact of foreign currency translation | 0 |
Ending balance | 8,194 |
Goodwill accumulated impairment loss | $ 7,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($)facility | |
Lessee, Lease, Description [Line Items] | |
Weighted average discount rate | 5.40% |
Weighted average remaining lease term | 5 years 10 months 24 days |
Additional operating leases, not yet commenced | $ 0.6 |
Number of facilities exited | facility | 3 |
Impairment of ROU assets | $ 0.7 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease renewal term | 3 months |
Operating lease term | 13 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease renewal term | 10 years |
Operating lease term | 24 months |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 1,880 | $ 3,819 |
Short-term lease cost | 75 | 163 |
Variable lease cost | 551 | 1,090 |
Sublease income | (87) | (176) |
Total lease cost | $ 2,419 | $ 4,896 |
Commitments and Contingencies_3
Commitments and Contingencies - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Operating leases | ||
Right-of-use assets, net | $ 23,203 | $ 24,712 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | |
Operating lease liabilities, current | $ 6,954 | |
Operating lease liabilities, non-current | 20,133 | $ 20,670 |
Total operating lease liabilities | $ 27,087 |
Commitments and Contingencies_4
Commitments and Contingencies - Supplemental Cash Flows (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 4,124 |
Right-of-use assets obtained in exchange for lease obligations | |
Operating leases | $ 2,015 |
Commitments and Contingencies_5
Commitments and Contingencies - Maturity Schedule (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 4,276 |
2022 | 7,317 |
2023 | 5,298 |
2024 | 3,333 |
2025 | 2,932 |
Thereafter | 8,951 |
Total lease payments | 32,107 |
Less imputed interest | (5,020) |
Total lease liabilities | $ 27,087 |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) | 6 Months Ended | |
Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Borrowings under credit facility | $ 130,000,000 | $ 180,000,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum capacity borrowing amount under credit facility | 300,000,000 | |
Borrowings under credit facility | $ 130,000,000 | |
Percentage of shares of capital stock pledged as guarantee | 65.00% | |
Maximum | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Additional borrowing capacity | $ 150,000,000 | |
Consolidated net leverage ratio | 3.50 | |
Maximum | Revolving Credit Facility | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Availability under credit facility | $ 20,000,000 | |
Maximum | Revolving Credit Facility | Swing Line Loans | ||
Debt Instrument [Line Items] | ||
Availability under credit facility | $ 20,000,000 | |
Minimum | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Consolidated interest coverage ratio | 3 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) | Dec. 31, 2020USD ($)agreement |
Derivatives, Fair Value [Line Items] | |
Number of interest rate swap agreements | agreement | 2 |
Reclassification of unrealized loss from accumulated other comprehensive income to earnings | $ 1,800,000 |
Interest Rate Swap, Effective December 1, 2017 | |
Derivatives, Fair Value [Line Items] | |
Notional debt value | $ 100,000,000 |
Fixed interest rate | 1.9275% |
Interest Rate Swap, Effective December 1, 2021 | |
Derivatives, Fair Value [Line Items] | |
Notional debt value | $ 80,000,000 |
Fixed interest rate | 2.125% |
Derivative Instruments - Summar
Derivative Instruments - Summary of Fair Values of the Interest Rate Swap (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Recurring | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Short-term derivative liability | $ 1,651 | $ 1,631 |
Long-term derivative liability | 2,516 | 3,448 |
Accrued expenses and other current liabilities | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Short-term derivative liability | 1,651 | 1,631 |
Other liabilities | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Long-term derivative liability | $ 2,516 | $ 3,448 |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Effect of Derivative Interest Rate Swap and Related Tax Effects in AOCI (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments Effect On Comprehensive Income Loss [Roll Forward] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) | $ 7 | $ (49) |
Amount of (Gain) Loss Reclassified from AOCI into Net Loss (Effective Portion) | 905 | (59) |
Interest Rate Swap | ||
Derivative Instruments Effect On Comprehensive Income Loss [Roll Forward] | ||
Derivative instrument, beginning balance | (5,079) | (1,285) |
Derivative instrument, ending balance | $ (4,167) | $ (1,393) |
Postretirement and Other Empl_3
Postretirement and Other Employee Benefits - Components of Net Periodic Pension Costs for the Swiss Pension Plan (Details) - Foreign Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of net periodic cost | ||||
Service cost | $ 793 | $ 729 | $ 1,558 | $ 1,453 |
Interest cost | 38 | 56 | 75 | 112 |
Prior service credit | (84) | (77) | (167) | (154) |
Net actuarial loss | 62 | 119 | 123 | 237 |
Expected return on plan assets | (301) | (309) | (586) | (616) |
Net periodic cost | $ 508 | $ 518 | $ 1,003 | $ 1,032 |
Subsequent Events (Details)
Subsequent Events (Details) - TreasuryXpress Inc - Subsequent Event $ in Millions | Jan. 13, 2021USD ($)shares |
Business Acquisition [Line Items] | |
Payments to acquire business | $ | $ 31.9 |
Number of shares issued (in shares) | shares | 66,402 |
Stock vesting period | 5 years |
Uncategorized Items - epay-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |