Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MODN | |
Entity Registrant Name | MODEL N, INC. | |
Entity Central Index Key | 0001118417 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 32,482,457 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 54,090 | $ 56,704 |
Accounts receivable, net of allowance for doubtful accounts of $64 as of March 31, 2019 and $172 as of September 30, 2018 | 19,450 | 28,273 |
Prepaid expenses | 1,632 | 3,631 |
Other current assets | 2,431 | 455 |
Total current assets | 77,603 | 89,063 |
Property and equipment, net | 1,413 | 2,146 |
Goodwill | 39,283 | 39,283 |
Intangible assets, net | 31,861 | 34,597 |
Other assets | 3,777 | 1,064 |
Total assets | 153,937 | 166,153 |
Current liabilities | ||
Accounts payable | 2,414 | 1,664 |
Accrued employee compensation | 9,759 | 14,211 |
Accrued liabilities | 4,704 | 3,182 |
Deferred revenue, current portion | 35,989 | 52,176 |
Long term debt, current portion | 4,747 | 1,375 |
Total current liabilities | 57,613 | 72,608 |
Long term debt | 44,247 | 52,329 |
Other long-term liabilities | 885 | 1,182 |
Total liabilities | 102,745 | 126,119 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 32,481 and 31,444 shares issued and outstanding at March 31, 2019 and September 30, 2018, respectively | 5 | 5 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 255,931 | 244,814 |
Accumulated other comprehensive loss | (994) | (1,285) |
Accumulated deficit | (203,750) | (203,500) |
Total stockholders’ equity | 51,192 | 40,034 |
Total liabilities and stockholders’ equity | $ 153,937 | $ 166,153 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 64 | $ 172 |
Common Stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Common Stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common Stock, shares issued (in shares) | 32,481,000 | 31,444,000 |
Common Stock, shares outstanding (in shares) | 32,481,000 | 31,444,000 |
Preferred Stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred Stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||||
Total revenues | $ 34,843 | $ 39,234 | $ 69,920 | $ 78,301 |
Cost of revenues | ||||
Total cost of revenues | 16,746 | 17,253 | 33,313 | 34,062 |
Gross profit | 18,097 | 21,981 | 36,607 | 44,239 |
Operating expenses | ||||
Research and development | 7,415 | 8,047 | 14,827 | 17,115 |
Sales and marketing | 8,598 | 9,015 | 16,650 | 17,507 |
General and administrative | 6,833 | 7,324 | 12,989 | 16,055 |
Total operating expenses | 22,846 | 24,386 | 44,466 | 50,677 |
Loss from operations | (4,749) | (2,405) | (7,859) | (6,438) |
Interest expense, net | 891 | 1,449 | 1,624 | 2,872 |
Other expenses, net | 127 | (87) | 412 | 38 |
Loss before income taxes | (5,767) | (3,767) | (9,895) | (9,348) |
Provision (benefit) for income taxes | 141 | 129 | 739 | (195) |
Net loss | $ (5,908) | $ (3,896) | $ (10,634) | $ (9,153) |
Net loss per share attributable to common stockholders: | ||||
Basic and diluted (in dollars per share) | $ (0.18) | $ (0.13) | $ (0.34) | $ (0.31) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | ||||
Basic and diluted (in shares) | 31,999 | 29,983 | 31,741 | 29,689 |
Subscription [Member] | ||||
Revenues | ||||
Total revenues | $ 25,940 | $ 24,004 | $ 51,142 | $ 47,851 |
Cost of revenues | ||||
Total cost of revenues | 8,852 | 9,440 | 17,590 | 19,055 |
Professional services [Member] | ||||
Revenues | ||||
Total revenues | 8,903 | 15,230 | 18,778 | 30,450 |
Cost of revenues | ||||
Total cost of revenues | $ 7,894 | $ 7,813 | $ 15,723 | $ 15,007 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5,908) | $ (3,896) | $ (10,634) | $ (9,153) |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain on cash flow hedges | 49 | 49 | ||
Foreign currency translation gain (loss) | 56 | (90) | 242 | 19 |
Total comprehensive loss | $ (5,803) | $ (3,986) | $ (10,343) | $ (9,134) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | |||||
Net loss | $ (5,908) | $ (3,896) | $ (10,634) | $ (9,153) | |
Adjustments to reconcile net loss to net cash used in operating activities | |||||
Depreciation and amortization | 3,533 | 4,427 | |||
Stock-based compensation | 9,099 | 7,282 | |||
Amortization of debt discount and issuance cost | 290 | 478 | |||
Deferred income taxes | 6 | (572) | |||
Amortization of capitalized contract acquisition costs | 400 | 780 | 0 | ||
Other non-cash charges | (108) | (22) | |||
Changes in assets and liabilities | |||||
Accounts receivable | 8,353 | $ 8,244 | (6,622) | ||
Prepaid expenses and other assets | 595 | (608) | |||
Deferred cost of implementation services | 0 | 338 | |||
Accounts payable | 862 | (685) | |||
Accrued employee compensation | (4,438) | (5,497) | |||
Other accrued and long-term liabilities | 708 | (1,525) | |||
Deferred revenue | (8,581) | 7,133 | |||
Net cash provided by (used in) operating activities | 465 | (5,026) | |||
Cash flows from investing activities | |||||
Purchases of property and equipment | (167) | (91) | |||
Net cash used in investing activities | (167) | (91) | |||
Cash flows from financing activities | |||||
Proceeds from exercise of stock options and issuance of employee stock purchase plan | 2,018 | 2,773 | |||
Principal payments on term loan | (5,000) | 0 | |||
Net cash provided by (used in) financing activities | (2,982) | 2,773 | |||
Effect of exchange rate changes on cash and cash equivalents | 70 | 15 | |||
Net decrease in cash and cash equivalents | (2,614) | (2,329) | |||
Cash and cash equivalents | |||||
Beginning of period | 56,704 | 57,558 | |||
End of period | $ 54,090 | $ 55,229 | $ 54,090 | $ 54,090 | $ 55,229 |
The Company and Significant Acc
The Company and Significant Accounting Policies and Estimates | 6 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Significant Accounting Policies and Estimates | The Company and Significant Accounting Policies and Estimates Model N, Inc. (“Model N,” “we,” “us,” “our,” and “the Company”) was incorporated in Delaware on December 14, 1999 . We are a provider of cloud revenue management solutions for the life sciences and high-tech markets. Our solutions enable our customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process, which enables them to manage the strategy and execution of pricing, contracting, incentives and rebates. Our corporate headquarters are located in San Mateo, California, with additional offices in the United States, India and Switzerland. Fiscal Year Our fiscal year ends on September 30. References to fiscal year 2019, for example, refer to the fiscal year ending September 30, 2019 . Basis for Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated balance sheet as of March 31, 2019 has been derived from our audited financial statements, which are included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (“the Annual Report”) on file with the SEC. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report. In the opinion of management, the unaudited interim consolidated financial statements include all the normal recurring adjustments necessary to present fairly our condensed consolidated financial statements. The results of operations for the six months ended March 31, 2019 are not necessarily indicative of the operating results for the full fiscal year 2019 or any future periods. Our condensed consolidated financial statements include the accounts of Model N and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. Change in Presentation Previously, we presented revenue and cost of revenue on two lines: “SaaS and maintenance” and “License and implementation.” Historically, our growth was driven by the sale of on-premise solutions. Over the last few years, we shifted our focus to selling cloud-based software. As a result of our business model transition from an on-premise to a software-as-a-service model, we updated the presentation in the first quarter of fiscal year 2019 to present the revenue and cost of revenue line items within our condensed consolidated statements of operations with the break-out between two new lines called “Subscription” and “Professional services.” Revenues and cost of revenues in prior periods have been reclassified in this filing to conform to the new presentation. This change in presentation does not affect our previously-reported total revenues and total cost of revenues. Subscription Subscription revenues primarily include contractual arrangements with customers accessing our cloud-based solutions. Subscription revenues also include revenues associated with maintenance and support and managed support services. Maintenance and support revenues include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis to customers using on-premise solutions. Managed support services revenues include supporting, managing and administering our software solutions and providing additional end user support. Term-based licenses for current products with the right to use unspecified future versions of the software and maintenance and support during the coverage period are also included in subscription revenues. Professional services Professional services revenues primarily include fees generated from implementation, cloud configuration, on-site support and other consulting services. Also included in professional services revenues are revenues related to training and customer-reimbursed expenses, as well as services related to software licenses for our on-premise solutions. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors. However, actual results could differ significantly from these estimates. Significant Accounting Policies There have been no changes in the significant accounting policies from those that were disclosed in the Annual Report, except for changes associated with revenue recognition resulting from the adoption of Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (ASC 606) and the addition of a hedging policy as described below: Revenue Recognition We derive our revenues primarily from subscription revenues and professional services revenues and apply the following framework to recognize revenue: • Identification of the contract, or contracts, with a customer, • Identification of the performance obligations in the contract, • Determination of the transaction price, • Allocation of the transaction price to the performance obligations in the contract, and • Recognition of revenue when, or as, the Company satisfies a performance obligation. We enter into contracts with customers that can include various combinations of services which are generally distinct and accounted for as separate performance obligations. As a result, our contracts may contain multiple performance obligations. We determine whether the services are distinct based on whether the customer can benefit from the service on its own or together with other resources that are readily available and whether our commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. We generally consider our cloud-based subscription offerings, maintenance and support, managed service support, professional services and training to be distinct performance obligations. Term-based licenses generally have two performance obligations: software licenses and software maintenance. The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services and products to the customer. Variable consideration (if any) is estimated and included in the transaction price if, in our judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract. We typically do not offer contractual rights of return or concessions. For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on its relative standalone selling price (“SSP”). SSP is estimated for each distinct performance obligation and judgment may be involved in the determination. We determine SSP using information that may include market conditions and other observable inputs. We evaluate SSP for our performance obligations on a quarterly basis. Revenue is recognized when control of these services is transferred to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for these services. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. Subscription revenue related to cloud-based solutions, maintenance and support, and managed service and support revenues are generally recognized ratably over the contractual term of the arrangement beginning on the date that our service is made available to the customer. These arrangements, in general, are for committed one to three -year terms. For term-based license contracts, the transaction price allocated to the software element is recognized when it is made available to the customer. The transaction price allocated to the related support and updates is recognized ratably over the contract term. Term-based license arrangements may include termination rights that limit the term of the arrangement to a month, quarter or year. Professional services revenues are generally recognized as the services are rendered for time and materials contracts or on a proportional performance basis for fixed price contracts. The majority of our professional services contracts are on a time and materials basis. Revenue from training and customer-reimbursed expenses is recognized as we deliver these services. Our implementation projects generally have a term ranging from a few months to twelve months and may be terminated by the customer at any time. Capitalized Contract Acquisition Costs We capitalize incremental costs incurred to acquire contracts with customers, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. We incur these costs in connection with both initial contracts and renewals. The costs in connection with initial contracts and renewals are deferred and amortized over an expected customer life of five years and over the renewal term, respectively, which corresponds to the period of benefit to the customer. We determined the period of benefit by considering our history of customer relationships, length of customer contracts, technological development and obsolescence and other factors. The current and non-current portion of capitalized contract acquisition costs are included in other current assets and other assets on our condensed consolidated balance sheets. Amortization expense is included in sales and marketing expenses in our condensed consolidated statements of operations. Hedging Cash Flow Hedging—Hedges of Forecasted Foreign Currency Operation Costs Our customers typically pay in U.S. dollars; however, in foreign jurisdictions, our expenses are typically denominated in local currency. We may use foreign exchange forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts generally range from one month to one year in duration. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the fair value of these cash flow hedges in accumulated other comprehensive income (loss) in our condensed consolidated balance sheets, until the forecasted transaction occurs, at which point, the related gain or loss on the cash flow hedge is reclassified to the financial statement line item to which the derivative relates. In the event the underlying forecasted transaction does not occur or it becomes probable that it will not occur, the gain or loss on the related cash flow hedge is also reclassified into earnings from accumulated other comprehensive income (loss). If we do not elect hedge accounting or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recognized immediately in the same financial statement line item to which the derivative relates. Hedge Effectiveness For foreign currency hedges designated as cash flow hedges, we elected to utilize the critical terms method to determine if the hedges are highly effective and thus, eligible for hedge accounting treatment. We evaluate the effectiveness of the foreign exchange contracts on a quarterly basis. New Accounting Pronouncements Recently Adopted Accounting Guidance In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard, ASU 2014-09, Revenue from Contracts with Customers (ASC 606), as amended, which superseded nearly all existing revenue recognition guidance. Under ASC 606, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services. ASC 606 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. On October 1, 2018, we adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of October 1, 2018, and recorded adjustments to decrease the accumulated deficit by approximately $10.4 million . Results for reporting periods beginning after October 1, 2018 are presented under ASC 606. Prior period amounts are not adjusted and continue to be reported under accounting standards in effect for those periods. ASC 606 primarily impacted our revenue recognition for on-premise solutions, which contained deliverables within the scope of ASC 985-605, Software-Revenue Recognition, by eliminating the requirement to have VSOE for undelivered elements, which accelerated the timing of revenue recognition. In addition, ASC 606 impacted our expenses as the guidance required incremental contract acquisition costs (such as sales commissions) for customer contracts to be capitalized and amortized on a systematic basis that is consistent with the pattern of transfer to the customer of the goods or services to which the capitalized cost relates rather than expense them immediately as under the previous standard. The following table summarizes the cumulative effect of the changes from the adoption of ASC 606 on our condensed consolidated balance sheets as of October 1, 2018: (in thousands) Balance at September 30, 2018 Cumulative effect adjustments due to the adoption of ASC 606 Balance at October 1, 2018 Assets Accounts receivables, net $ 28,273 $ (579 ) $ 27,694 Other current assets 455 1,668 2,123 Other assets 1,064 2,142 3,206 Liabilities Accrued liabilities 3,182 600 3,782 Deferred revenue, current portion 52,176 (7,753 ) 44,423 Stockholders’ Equity Accumulated deficit (203,500 ) 10,384 (193,116 ) The cumulative effect adjustment on accounts receivable, net, in our condensed consolidated balance sheets is related to unbilled accounts receivable for which revenue is recognized in advance of billings, but we do not have the unconditional right to the consideration. Under ASC 606, these amounts are reclassified from accounts receivable, net, to other current assets. The cumulative effect adjustment on other current assets and other assets line items in our condensed consolidated balance sheets is caused by the requirement in ASC 606 to capitalize incremental costs incurred to acquire contracts with customers. In prior periods, these costs were expensed as incurred under ASC 340. The cumulative effect adjustment included in accrued liabilities in our condensed consolidated balance sheets is related to reclassifying refundable amounts associated with customer contracts from deferred revenue under ASC 606. The cumulative effect adjustment on deferred revenue is primarily driven by ASC 606 which accelerated the timing of revenue recognition by eliminating the requirement to have VSOE for undelivered elements. The following table summarizes the effects of adopting ASC 606 on our condensed consolidated balance sheets as of March 31, 2019 : (in thousands) As Reported Adjustments As if presented under ASC 605 Assets Accounts receivables, net $ 19,450 $ 613 $ 20,063 Other current assets 2,431 (2,017 ) 414 Other assets 3,777 (2,704 ) 1,073 Liabilities Accrued liabilities 4,704 (386 ) 4,318 Deferred revenue, current portion 35,989 2,373 38,362 Stockholders’ Equity Accumulated deficit (203,750 ) (6,095 ) (209,845 ) The following tables summarize the effects of adopting ASC 606 on our condensed consolidated statements of operations for the three and six months ended March 31, 2019 : Three Months Ended March 31, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 25,940 $ 1,041 $ 26,981 Professional services 8,903 3,942 12,845 Total revenues 34,843 4,983 39,826 Cost of professional services revenues 7,894 16 7,910 Sales and marketing 8,598 317 8,915 Loss from operations (4,749 ) 4,650 (99 ) Net loss (5,908 ) 4,650 (1,258 ) Net loss per share - basic and diluted (0.18 ) 0.14 (0.04 ) Six Months Ended March 31, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 51,142 $ 992 $ 52,134 Professional services 18,778 4,174 22,952 Total revenues 69,920 5,166 75,086 Cost of professional services revenues 15,723 63 15,786 Sales and marketing 16,650 814 17,464 Loss from operations (7,859 ) 4,289 (3,570 ) Net loss (10,634 ) 4,289 (6,345 ) Net loss per share - basic and diluted (0.34 ) 0.14 (0.20 ) The impact to our condensed consolidated statements of cash flows for the six months ended March 31, 2019 as a result of adopting ASC 606 was not significant. On August 28, 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging, requiring expanded hedge accounting for both non-financial and financial risk components and refining the measurement of hedge results to better reflect an entity’s hedging strategies. The updated standard also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. We early adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), amending the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. We adopted this guidance beginning in the first quarter of fiscal year 2019 on a retrospective basis and it did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. We adopted this guidance beginning in the first quarter of fiscal year 2019 on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230): Clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalents balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. We adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. We adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for us beginning in the first quarter of fiscal year 2020 and early adoption is permitted. We expect to adopt this guidance on a modified retrospective basis in the first quarter of fiscal year 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of our fair value of a reporting unit with the carrying amount and we are required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider the income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 6 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers Revenue Recognition We derive our revenues primarily from subscription revenues and professional services revenues. Disaggregation of Revenues See Note 12, Geographic Information, for information on revenue by geography. Customer Contract Balances The following table reflects contract balances with customers (in thousands): As of October 1, 2018 (1) As of March 31, 2019 Change Accounts receivable, net $ 27,694 $ 19,450 $ (8,244 ) Contract asset 579 613 34 Deferred revenue 44,854 36,271 (8,583 ) Capitalized contract acquisition costs 3,324 4,138 814 (1) Includes cumulative effect adjustments made to these accounts on October 1, 2018 due to the adoption of ASC 606. Accounts Receivable Accounts receivable represents our right to consideration that is unconditional, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectibility of accounts. Contract Asset Contract asset represents revenue that has been recognized for satisfied performance obligations for which we do not have an unconditional right to consideration. Deferred Revenue Deferred revenue, which is a contract liability, consists of amounts that have been invoiced and for which we have the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. The non-current portion of deferred revenue is included in other long-term liabilities in our condensed consolidated balance sheets. During the three and six months ended March 31, 2019 , we recognized revenue of $18.4 million and $33.1 million , respectively, that was included in the deferred revenue balances at the beginning of the period. Capitalized Contract Acquisition Costs In connection with the adoption of ASC 606, we began to capitalize incremental costs incurred to acquire contracts with customers. See Note 1 for additional information. As of March 31, 2019 , the current and non-current portions of capitalized contract acquisition costs were $1.4 million and $2.7 million , respectively. We amortized $0.4 million and $0.8 million of contract acquisition costs during the three and six months ended March 31, 2019 , respectively. For the three and six months ended March 31, 2019 , there was no impairment related to capitalized contract acquisition costs. Customer Deposits Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the arrangement. These amounts are included in accrued liabilities on our condensed consolidated balance sheets. The customer deposits amount was immaterial as of March 31, 2019 and as of October 1, 2018. Standard payment terms to customers generally range from thirty to ninety days; however, payment terms and conditions in our customer contracts may vary. In some cases, customers prepay for subscription and services in advance of the delivery; in other cases, payment is due as services are performed or in arrears following the delivery. Performance Obligations Remaining performance obligations represent non-cancelable contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of March 31, 2019 , the aggregate amount of the transaction price allocated to performance obligations either unsatisfied or partially unsatisfied was $83.2 million , 70% of which we expect to recognize as revenue over the next 12 months and the remainder thereafter. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following (in thousands): Estimated As of March 31, 2019 Useful Life (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible Assets: Customer relationships 3-10 $ 36,599 $ (9,421 ) $ 27,178 Developed technology 5-6 12,083 (7,400 ) 4,683 Total $ 48,682 $ (16,821 ) $ 31,861 Estimated As of September 30, 2018 Useful Life (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible Assets: Customer relationships 3-10 $ 36,599 $ (7,642 ) $ 28,957 Developed technology 5-6 12,083 (6,448 ) 5,635 Backlog 5 280 (275 ) 5 Total $ 48,962 $ (14,365 ) $ 34,597 We recorded amortization expense related to the acquired intangible assets of $1.3 million and $1.4 million for the three months ended March 31, 2019 and 2018 , respectively, and $2.7 million and $2.8 million for the six months ended March 31, 2019 and 2018 , respectively. Estimated future amortization expense for the intangible assets as of March 31, 2019 is as follows (in thousands): Fiscal Year 2019 (remaining 6 months) $ 2,731 2020 4,751 2021 4,686 2022 4,686 2023 and thereafter 15,007 Total future amortization $ 31,861 |
Debt
Debt | 6 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan In connection with the Revitas acquisition, on January 5, 2017 , we entered into a financing agreement (the “Financing Agreement”) with Crystal Financial SPV, LLC and TC Lending, LLC for a $50.0 million term loan. In May 2018, this term loan was extinguished and repaid in full in part from the proceeds of the refinancing with Wells Fargo Bank, N. A. (“Wells Fargo”), as discussed below. Term Loan – Wells Fargo On May 4, 2018, we entered into a credit agreement (the “Credit Agreement”) with Wells Fargo, as administrative agent, and the lenders party thereto, for a $50.0 million term loan, as well as a revolving line of credit for an amount up to $5.0 million . In part from the proceeds of this financing, we repaid in full the existing term loan under the Financing Agreement discussed above. The term loan will mature on May 4, 2023 . As of March 31, 2019 , we had not drawn down from the line of credit and had $5.0 million available. At our election, the term loan under the Credit Agreement and the revolving line of credit will bear interest based upon our leverage ratio as defined in the Credit Agreement at either (i) a base rate plus applicable margin ranging from 2.0% to 3.5% or (ii) LIBOR plus applicable margin ranging from 3.0% to 4.5% . Interest is payable periodically, in arrears, at the end of each interest period we elect. For the quarter ended March 31, 2019 , our interest rate was LIBOR rate plus 4.5% . In addition, we are required to pay monthly in arrears an unused line fee ranging from 0.25% to 0.5% of the unused portion of the revolving line of credit based upon our leverage ratio, We incurred approximately $0.7 million in transaction costs in connection with the Credit Agreement in fiscal year 2018. These costs were capitalized and included as part of our debt and are being amortized over the life of the debt. As a condition to entering into the Credit Agreement, we pledged substantially all of our assets in the United States. We may voluntarily prepay the term loan, with any such prepayment applied against the remaining installments of principal of the term loan on a pro rata basis or direct order of maturity, subject to certain limitations. However, we are required to repay the term loan with proceeds from the sale of assets, the receipt of certain insurance proceeds, litigation proceeds or indemnity payments or the incurrence of debt (in each case subject to certain exceptions). We prepaid approximately $4.8 million of principal on January 2, 2019 and elected to apply the prepayment against the remaining principal installments in the direct order of maturity. The remaining balance of the term loan is classified as long-term debt. The Credit Agreement contains customary representations and warranties, subject to limitations and exceptions, and customary covenants restricting our ability and our subsidiaries to: incur additional indebtedness; incur liens; engage in mergers or other fundamental changes; consummate acquisitions; sell certain property or assets; change the nature of their business; prepay or amend certain indebtedness; pay cash dividends, other distributions or repurchase our equity interests or our subsidiaries; make investments; or engage in certain transactions with affiliates. The Credit Agreement contains certain financial covenants, including maintaining consolidated liquidity (cash in the United States plus revolving credit line availability) of at least $15.0 million , minimum levels of maintenance and subscription fee revenue and, if liquidity is less than $30.0 million for 90 consecutive days, a leverage ratio of not greater than 3.50 to 1.00. The Credit Agreement also provides for customary events of default, including failure to pay amounts due or to comply with covenants, default on other indebtedness, or a change of control. As of March 31, 2019, we were in compliance with all covenant requirements. Promissory Notes Also in connection with the Revitas acquisition, we incurred $10.0 million in debt in the form of two $5.0 million promissory notes with the sellers, one of which matured and was paid on July 5, 2018 and the second promissory note will mature on January 5, 2020 . The fair value of the promissory notes of $8.6 million was determined based on the discounted future cash flows at a 9.96% interest rate which represents an arm’s length interest rate. The remaining outstanding promissory note bears interest at the rate of 3.0% per annum and is subject to a right of set-off as partial security for the indemnification obligations of the target’s stockholders under the merger agreement. This remaining promissory note of $5.0 million is subordinate to the term loan with Wells Fargo. The effective interest rate for the term loan with Wells Fargo is 7.50% and the 36-month promissory note is 9.89% . As of March 31, 2019 , the term loan with Wells Fargo and the promissory note consisted of the following (in thousands): Principal $ 49,750 Unamortized debt discount and issuance costs (756 ) Net carrying amount $ 48,994 The future scheduled principal payments for the term loan with Wells Fargo and the promissory note as of March 31, 2019 were as follows (in thousands): Fiscal Year 2019 (remaining 6 months) $ — 2020 5,000 2021 2,938 2022 3,750 2023 38,062 Total $ 49,750 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 6 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | Derivative Instruments and Hedging In December 2018, we entered into foreign currency forward contracts to hedge a portion of our forecasted foreign currency-denominated expenses in the normal course of business. These contracts are designated as cash flows hedges. These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign exchange rate movements. We do not use any of the derivative instruments for trading or speculative purposes. For the three and six months ended March 31, 2019 , the impact of the hedging activities to our condensed consolidated financial statements was immaterial. The fair value of our outstanding non-deliverable foreign currency forward contracts was immaterial as of March 31, 2019 . Notional Amounts of Derivative Contracts Derivative transactions are measured in terms of the notional amount but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign exchange payments under these contracts are determined. As of March 31, 2019 , the notional amounts of our outstanding foreign currency forward contracts designated as cash flow hedges was approximately $4.2 million . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt and certain accrued liabilities. We regularly review our financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. We estimate the fair value of our financial instruments when there is no readily available market data, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines the following three-level valuation hierarchy for disclosure: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level 1 that are observable, unadjusted quoted prices in markets that are not active or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires us to develop our own models and involves some level of management estimation and judgment. Our Level 1 assets consist of cash equivalents. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The table below sets forth our cash equivalents as of March 31, 2019 and September 30, 2018 (in thousands), which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. Level 1 Level 2 Level 3 Total As of March 31, 2019 Assets: Cash equivalents $ 40,399 $ — $ — $ 40,399 Total assets $ 40,399 $ — $ — $ 40,399 As of September 30, 2018 Assets: Cash equivalents $ 43,741 $ — $ — $ 43,741 Total assets $ 43,741 $ — $ — $ 43,741 Our cash equivalents as of March 31, 2019 and September 30, 2018 consisted of money market funds with original maturity dates of three months or less from the date of their respective purchase. Cash equivalents are classified as Level 1. The fair value of our money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of March 31, 2019 and September 30, 2018 . Our financial instruments not measured at fair value on a recurring basis include cash, accounts receivable, accounts payable and certain accrued liabilities. These financial instruments are reflected in the financial statements at cost and approximate their fair value due to their short-term nature. As of March 31, 2019 , the carrying value of the term loan with Wells Fargo approximated fair value since the term loan bears interest at rates that fluctuate with the changes in the base rate or the LIBOR rate as selected by us. The carrying value of the promissory note approximated its fair value as of March 31, 2019 . We classified the term loan with Wells Fargo and the promissory note under level 2 of the fair value measurement hierarchy as these instruments are not actively traded. See Note 4 for additional information. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-based Compensation As of March 31, 2019 , we have 4.1 million shares available for future stock awards under our equity plans and any additional releases resulting from an over-achievement relating to performance-based restricted stock units. There were no stock options granted during the three and six months ended March 31, 2019 and 2018 , respectively. The following table summarizes the stock option activity and related information under all equity plans: Number of Shares (thousands) Weighted Average Exercised Price Weighted Average Remaining Contract Term (in Years) Aggregate Intrinsic Value (in thousands) Balance at September 30, 2018 227 $ 7.64 2.94 $ 1,861 Granted — — — Exercised (62 ) 6.31 — Forfeited — — — Expired (6 ) 5.31 — Balance at March 31, 2019 159 $ 8.25 2.65 $ 1,477 Options exercisable as of March 31, 2019 159 $ 8.25 2.65 $ 1,477 Options vested and expected to vest as of March 31, 2019 159 $ 8.25 2.65 $ 1,477 The following table summarizes our restricted stock unit (“RSU”) activity which includes performance-based RSUs under all equity plans (in thousands, except per share data): Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance at September 30, 2018 2,313 $ 15.78 Granted 1,313 14.97 Released (856 ) 15.32 Forfeited (164 ) 14.22 Balance at March 31, 2019 2,606 $ 15.63 Stock-based compensation recorded in our condensed consolidated statements of operations is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Cost of revenues Subscription $ 469 $ 346 $ 929 $ 597 Professional services 561 357 1,040 676 Total stock-based compensation in cost of revenues 1,030 703 1,969 1,273 Operating expenses Research and development 861 743 1,625 1,400 Sales and marketing 1,239 660 2,384 1,531 General and administrative 1,766 1,140 3,121 3,078 Total stock-based compensation in operating expenses 3,866 2,543 7,130 6,009 Total stock-based compensation $ 4,896 $ 3,246 $ 9,099 $ 7,282 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table presents the changes of the components of stockholders’ equity during the three months ended March 31, 2019 and 2018 (in thousands): Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at December 31, 2018 31,535 $ 5 $ 249,053 $ (1,099 ) $ (197,842 ) $ 50,117 Issuance of common stock upon exercise of stock options 55 — 351 — — 351 Issuance of common stock upon release of restricted stock units 772 — — — — — Issuance of common stock upon ESPP purchase 119 — 1,631 — — 1,631 Stock-based compensation — — 4,896 — — 4,896 Other comprehensive income (loss) — — — 105 — 105 Net loss — — — — (5,908 ) (5,908 ) Balance at March 31, 2019 32,481 $ 5 $ 255,931 $ (994 ) $ (203,750 ) $ 51,192 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at December 31, 2017 29,474 $ 4 $ 221,639 $ (393 ) $ (180,550 ) $ 40,700 Issuance of common stock upon exercise of stock options 89 — 739 — — 739 Issuance of common stock upon release of restricted stock units 838 1 — — — 1 Issuance of common stock upon ESPP purchase 129 — 1,483 — — 1,483 Stock-based compensation — — 3,246 — — 3,246 Other comprehensive income (loss) — — — (90 ) — (90 ) Net loss — — — — (3,896 ) (3,896 ) Balance at March 31, 2018 30,530 $ 5 $ 227,107 $ (483 ) $ (184,446 ) $ 42,183 The following table presents the changes of the components of stockholders’ equity during the six months ended March 31, 2019 and 2018 were as follows (in thousands): Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2018 31,444 $ 5 $ 244,814 $ (1,285 ) $ (203,500 ) $ 40,034 Cumulative effect of a change in accounting principal — — — — 10,384 10,384 Issuance of common stock upon exercise of stock options 62 — 387 — — 387 Issuance of common stock upon release of restricted stock units 856 — — — — — Issuance of common stock upon ESPP purchase 119 — 1,631 — — 1,631 Stock-based compensation — — 9,099 — — 9,099 Other comprehensive income (loss) — — — 291 — 291 Net loss — — — — (10,634 ) (10,634 ) Balance at March 31, 2019 32,481 $ 5 $ 255,931 $ (994 ) $ (203,750 ) $ 51,192 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2017 29,323 $ 4 $ 217,052 $ (502 ) $ (175,293 ) $ 41,261 Issuance of common stock upon exercise of stock options 151 — 1,290 — — 1,290 Issuance of common stock upon release of restricted stock units 927 1 — — — 1 Issuance of common stock upon ESPP purchase 129 — 1,483 — — 1,483 Stock-based compensation — — 7,282 — — 7,282 Other comprehensive income (loss) — — — 19 — 19 Net loss — — — — (9,153 ) (9,153 ) Balance at March 31, 2018 30,530 $ 5 $ 227,107 $ (483 ) $ (184,446 ) $ 42,183 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, tax reform legislation known as the Tax Cuts and Jobs Act (the “Tax Legislation”) was enacted in the United States (“U.S.”). The Tax Legislation significantly revised U.S. corporate income taxes by, among other things, lowering the corporate income tax rate to 21% , implementing a modified territorial tax system and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the “Toll Charge”) and limiting the deductibility of certain expenses, such as interest expense. As a fiscal-year taxpayer, certain provisions of the Tax Legislation impacted us in fiscal year 2018, including the change in the corporate income tax rate and the Toll Charge, while other provisions were effective starting at the beginning of fiscal year 2019. Prior to the first quarter of fiscal year 2019, our provision for income taxes did not include provisions for foreign withholding taxes associated with the repatriation of undistributed earnings of certain foreign subsidiaries that we intend to reinvest indefinitely. The current Tax Legislation generally allows companies to make distributions of non-U.S. earnings to the U.S. without incurring additional federal income tax. As a result, we expect to repatriate future foreign earnings in certain foreign jurisdictions over time. We recorded a deferred tax liability for the additional non-U.S. taxes that are expected to be incurred related to the repatriation of these earnings. During the first quarter of fiscal year 2019, we repatriated $2.5 million of foreign subsidiary earnings to the U.S. (in the form of cash) and paid foreign withholding taxes of $0.5 million . We recorded an income tax provision (benefit) of $0.1 million and $0.1 million , representing effective income tax rates of 2.4% and 3.4% , for the three months ended March 31, 2019 and 2018 , respectively; and $0.7 million and $(0.2) million , representing income tax rates of 7.5% and (2.1)% , for the six months ended March 31, 2019 and 2018 , respectively. The income tax provisions for the three months ended March 31, 2019 and 2018 were primarily related to state minimum taxes and foreign taxes on our profitable foreign operations. The income tax provision recorded in the first six months ended March 31, 2019 was primarily related to the foreign withholding taxes on the dividend distribution and secondarily related to state minimum taxes and foreign taxes on our profitable foreign operations. The income tax benefit for the three months ended March 31, 2018 was primarily due to a discrete tax benefit recorded as a result of reductions in deferred tax liabilities from the reduced corporate tax rate and valuation allowance release. This is in addition to a reversal of certain foreign unrecognized tax benefits. We elected to record global intangible low-taxed income as a period cost. We realized no benefit for current period losses due to maintaining a full valuation allowance against the U.S. and foreign net deferred tax assets. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss per Share The following table sets forth the computation of our basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share data): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Numerator Basic and diluted Net loss attributable to common stockholders $ (5,908 ) $ (3,896 ) $ (10,634 ) $ (9,153 ) Denominator Basic and diluted Weighted average shares used in computing net loss per share attributable to common stockholders 31,999 29,983 31,741 29,689 Net loss per share attributable to common stockholders: Basic and diluted $ (0.18 ) $ (0.13 ) $ (0.34 ) $ (0.31 ) The following shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders as the effect would have been anti-dilutive (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Stock options 93 169 100 191 Performance-based restricted stock units and restricted stock units 1,524 1,499 1,643 1,563 |
Litigation and Contingencies
Litigation and Contingencies | 6 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | Litigation and Contingencies Legal Proceedings We are not currently a party to any pending material legal proceedings. From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm and other factors. |
Geographic Information
Geographic Information | 6 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information We have one operating segment with one business activity — developing and monetizing revenue management solutions. Revenues We disaggregate our revenues by geographic regions based on the bill to location of our customers. Revenues from customers outside of the United States were 18% and 12% of total revenues for the three months ended March 31, 2019 and 2018 , respectively, and 17% and 13% of total revenues for the six months ended March 31, 2019 and 2018 , respectively. However, no single jurisdiction outside of the United States represented 10% or more of our total revenues for the periods presented. Long-Lived Assets The following table sets forth our property and equipment, net, by geographic region (in thousands): As of March 31, 2019 As of September 30, 2018 United States $ 1,188 $ 1,809 India 225 337 Total property and equipment, net $ 1,413 $ 2,146 |
The Company and Significant A_2
The Company and Significant Accounting Policies and Estimates (Policies) | 6 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis for Presentation | Basis for Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated balance sheet as of March 31, 2019 has been derived from our audited financial statements, which are included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (“the Annual Report”) on file with the SEC. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report. In the opinion of management, the unaudited interim consolidated financial statements include all the normal recurring adjustments necessary to present fairly our condensed consolidated financial statements. The results of operations for the six months ended March 31, 2019 are not necessarily indicative of the operating results for the full fiscal year 2019 or any future periods. Our condensed consolidated financial statements include the accounts of Model N and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors. However, actual results could differ significantly from these estimates. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from subscription revenues and professional services revenues and apply the following framework to recognize revenue: • Identification of the contract, or contracts, with a customer, • Identification of the performance obligations in the contract, • Determination of the transaction price, • Allocation of the transaction price to the performance obligations in the contract, and • Recognition of revenue when, or as, the Company satisfies a performance obligation. We enter into contracts with customers that can include various combinations of services which are generally distinct and accounted for as separate performance obligations. As a result, our contracts may contain multiple performance obligations. We determine whether the services are distinct based on whether the customer can benefit from the service on its own or together with other resources that are readily available and whether our commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. We generally consider our cloud-based subscription offerings, maintenance and support, managed service support, professional services and training to be distinct performance obligations. Term-based licenses generally have two performance obligations: software licenses and software maintenance. The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services and products to the customer. Variable consideration (if any) is estimated and included in the transaction price if, in our judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract. We typically do not offer contractual rights of return or concessions. For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on its relative standalone selling price (“SSP”). SSP is estimated for each distinct performance obligation and judgment may be involved in the determination. We determine SSP using information that may include market conditions and other observable inputs. We evaluate SSP for our performance obligations on a quarterly basis. Revenue is recognized when control of these services is transferred to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for these services. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. Subscription revenue related to cloud-based solutions, maintenance and support, and managed service and support revenues are generally recognized ratably over the contractual term of the arrangement beginning on the date that our service is made available to the customer. These arrangements, in general, are for committed one to three -year terms. For term-based license contracts, the transaction price allocated to the software element is recognized when it is made available to the customer. The transaction price allocated to the related support and updates is recognized ratably over the contract term. Term-based license arrangements may include termination rights that limit the term of the arrangement to a month, quarter or year. Professional services revenues are generally recognized as the services are rendered for time and materials contracts or on a proportional performance basis for fixed price contracts. The majority of our professional services contracts are on a time and materials basis. Revenue from training and customer-reimbursed expenses is recognized as we deliver these services. Our implementation projects generally have a term ranging from a few months to twelve months and may be terminated by the customer at any time. Capitalized Contract Acquisition Costs We capitalize incremental costs incurred to acquire contracts with customers, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. We incur these costs in connection with both initial contracts and renewals. The costs in connection with initial contracts and renewals are deferred and amortized over an expected customer life of five years and over the renewal term, respectively, which corresponds to the period of benefit to the customer. We determined the period of benefit by considering our history of customer relationships, length of customer contracts, technological development and obsolescence and other factors. The current and non-current portion of capitalized contract acquisition costs are included in other current assets and other assets on our condensed consolidated balance sheets. Amortization expense is included in sales and marketing expenses in our condensed consolidated statements of operations. Customer Deposits Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the arrangement. These amounts are included in accrued liabilities on our condensed consolidated balance sheets. The customer deposits amount was immaterial as of March 31, 2019 and as of October 1, 2018. Standard payment terms to customers generally range from thirty to ninety days; however, payment terms and conditions in our customer contracts may vary. In some cases, customers prepay for subscription and services in advance of the delivery; in other cases, payment is due as services are performed or in arrears following the delivery. Accounts Receivable Accounts receivable represents our right to consideration that is unconditional, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectibility of accounts. Contract Asset Contract asset represents revenue that has been recognized for satisfied performance obligations for which we do not have an unconditional right to consideration. Deferred Revenue Deferred revenue, which is a contract liability, consists of amounts that have been invoiced and for which we have the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. |
Hedging | Hedging Cash Flow Hedging—Hedges of Forecasted Foreign Currency Operation Costs Our customers typically pay in U.S. dollars; however, in foreign jurisdictions, our expenses are typically denominated in local currency. We may use foreign exchange forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts generally range from one month to one year in duration. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the fair value of these cash flow hedges in accumulated other comprehensive income (loss) in our condensed consolidated balance sheets, until the forecasted transaction occurs, at which point, the related gain or loss on the cash flow hedge is reclassified to the financial statement line item to which the derivative relates. In the event the underlying forecasted transaction does not occur or it becomes probable that it will not occur, the gain or loss on the related cash flow hedge is also reclassified into earnings from accumulated other comprehensive income (loss). If we do not elect hedge accounting or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recognized immediately in the same financial statement line item to which the derivative relates. Hedge Effectiveness For foreign currency hedges designated as cash flow hedges, we elected to utilize the critical terms method to determine if the hedges are highly effective and thus, eligible for hedge accounting treatment. We evaluate the effectiveness of the foreign exchange contracts on a quarterly basis. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Guidance In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard, ASU 2014-09, Revenue from Contracts with Customers (ASC 606), as amended, which superseded nearly all existing revenue recognition guidance. Under ASC 606, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services. ASC 606 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. On October 1, 2018, we adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of October 1, 2018, and recorded adjustments to decrease the accumulated deficit by approximately $10.4 million . Results for reporting periods beginning after October 1, 2018 are presented under ASC 606. Prior period amounts are not adjusted and continue to be reported under accounting standards in effect for those periods. ASC 606 primarily impacted our revenue recognition for on-premise solutions, which contained deliverables within the scope of ASC 985-605, Software-Revenue Recognition, by eliminating the requirement to have VSOE for undelivered elements, which accelerated the timing of revenue recognition. In addition, ASC 606 impacted our expenses as the guidance required incremental contract acquisition costs (such as sales commissions) for customer contracts to be capitalized and amortized on a systematic basis that is consistent with the pattern of transfer to the customer of the goods or services to which the capitalized cost relates rather than expense them immediately as under the previous standard. The following table summarizes the cumulative effect of the changes from the adoption of ASC 606 on our condensed consolidated balance sheets as of October 1, 2018: (in thousands) Balance at September 30, 2018 Cumulative effect adjustments due to the adoption of ASC 606 Balance at October 1, 2018 Assets Accounts receivables, net $ 28,273 $ (579 ) $ 27,694 Other current assets 455 1,668 2,123 Other assets 1,064 2,142 3,206 Liabilities Accrued liabilities 3,182 600 3,782 Deferred revenue, current portion 52,176 (7,753 ) 44,423 Stockholders’ Equity Accumulated deficit (203,500 ) 10,384 (193,116 ) The cumulative effect adjustment on accounts receivable, net, in our condensed consolidated balance sheets is related to unbilled accounts receivable for which revenue is recognized in advance of billings, but we do not have the unconditional right to the consideration. Under ASC 606, these amounts are reclassified from accounts receivable, net, to other current assets. The cumulative effect adjustment on other current assets and other assets line items in our condensed consolidated balance sheets is caused by the requirement in ASC 606 to capitalize incremental costs incurred to acquire contracts with customers. In prior periods, these costs were expensed as incurred under ASC 340. The cumulative effect adjustment included in accrued liabilities in our condensed consolidated balance sheets is related to reclassifying refundable amounts associated with customer contracts from deferred revenue under ASC 606. The cumulative effect adjustment on deferred revenue is primarily driven by ASC 606 which accelerated the timing of revenue recognition by eliminating the requirement to have VSOE for undelivered elements. The following table summarizes the effects of adopting ASC 606 on our condensed consolidated balance sheets as of March 31, 2019 : (in thousands) As Reported Adjustments As if presented under ASC 605 Assets Accounts receivables, net $ 19,450 $ 613 $ 20,063 Other current assets 2,431 (2,017 ) 414 Other assets 3,777 (2,704 ) 1,073 Liabilities Accrued liabilities 4,704 (386 ) 4,318 Deferred revenue, current portion 35,989 2,373 38,362 Stockholders’ Equity Accumulated deficit (203,750 ) (6,095 ) (209,845 ) The following tables summarize the effects of adopting ASC 606 on our condensed consolidated statements of operations for the three and six months ended March 31, 2019 : Three Months Ended March 31, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 25,940 $ 1,041 $ 26,981 Professional services 8,903 3,942 12,845 Total revenues 34,843 4,983 39,826 Cost of professional services revenues 7,894 16 7,910 Sales and marketing 8,598 317 8,915 Loss from operations (4,749 ) 4,650 (99 ) Net loss (5,908 ) 4,650 (1,258 ) Net loss per share - basic and diluted (0.18 ) 0.14 (0.04 ) Six Months Ended March 31, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 51,142 $ 992 $ 52,134 Professional services 18,778 4,174 22,952 Total revenues 69,920 5,166 75,086 Cost of professional services revenues 15,723 63 15,786 Sales and marketing 16,650 814 17,464 Loss from operations (7,859 ) 4,289 (3,570 ) Net loss (10,634 ) 4,289 (6,345 ) Net loss per share - basic and diluted (0.34 ) 0.14 (0.20 ) The impact to our condensed consolidated statements of cash flows for the six months ended March 31, 2019 as a result of adopting ASC 606 was not significant. On August 28, 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging, requiring expanded hedge accounting for both non-financial and financial risk components and refining the measurement of hedge results to better reflect an entity’s hedging strategies. The updated standard also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. We early adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on our consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), amending the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. We adopted this guidance beginning in the first quarter of fiscal year 2019 on a retrospective basis and it did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. We adopted this guidance beginning in the first quarter of fiscal year 2019 on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230): Clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalents balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. We adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. We adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for us beginning in the first quarter of fiscal year 2020 and early adoption is permitted. We expect to adopt this guidance on a modified retrospective basis in the first quarter of fiscal year 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of our fair value of a reporting unit with the carrying amount and we are required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider the income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt and certain accrued liabilities. We regularly review our financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. We estimate the fair value of our financial instruments when there is no readily available market data, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines the following three-level valuation hierarchy for disclosure: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level 1 that are observable, unadjusted quoted prices in markets that are not active or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires us to develop our own models and involves some level of management estimation and judgment. Our Level 1 assets consist of cash equivalents. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. |
The Company and Significant A_3
The Company and Significant Accounting Policies and Estimates (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cumulative Effect of the Changes made to the Consolidated Financial Statements | The following table summarizes the effects of adopting ASC 606 on our condensed consolidated balance sheets as of March 31, 2019 : (in thousands) As Reported Adjustments As if presented under ASC 605 Assets Accounts receivables, net $ 19,450 $ 613 $ 20,063 Other current assets 2,431 (2,017 ) 414 Other assets 3,777 (2,704 ) 1,073 Liabilities Accrued liabilities 4,704 (386 ) 4,318 Deferred revenue, current portion 35,989 2,373 38,362 Stockholders’ Equity Accumulated deficit (203,750 ) (6,095 ) (209,845 ) The following tables summarize the effects of adopting ASC 606 on our condensed consolidated statements of operations for the three and six months ended March 31, 2019 : Three Months Ended March 31, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 25,940 $ 1,041 $ 26,981 Professional services 8,903 3,942 12,845 Total revenues 34,843 4,983 39,826 Cost of professional services revenues 7,894 16 7,910 Sales and marketing 8,598 317 8,915 Loss from operations (4,749 ) 4,650 (99 ) Net loss (5,908 ) 4,650 (1,258 ) Net loss per share - basic and diluted (0.18 ) 0.14 (0.04 ) Six Months Ended March 31, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 51,142 $ 992 $ 52,134 Professional services 18,778 4,174 22,952 Total revenues 69,920 5,166 75,086 Cost of professional services revenues 15,723 63 15,786 Sales and marketing 16,650 814 17,464 Loss from operations (7,859 ) 4,289 (3,570 ) Net loss (10,634 ) 4,289 (6,345 ) Net loss per share - basic and diluted (0.34 ) 0.14 (0.20 ) The following table summarizes the cumulative effect of the changes from the adoption of ASC 606 on our condensed consolidated balance sheets as of October 1, 2018: (in thousands) Balance at September 30, 2018 Cumulative effect adjustments due to the adoption of ASC 606 Balance at October 1, 2018 Assets Accounts receivables, net $ 28,273 $ (579 ) $ 27,694 Other current assets 455 1,668 2,123 Other assets 1,064 2,142 3,206 Liabilities Accrued liabilities 3,182 600 3,782 Deferred revenue, current portion 52,176 (7,753 ) 44,423 Stockholders’ Equity Accumulated deficit (203,500 ) 10,384 (193,116 ) |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Customer Contract Balances | The following table reflects contract balances with customers (in thousands): As of October 1, 2018 (1) As of March 31, 2019 Change Accounts receivable, net $ 27,694 $ 19,450 $ (8,244 ) Contract asset 579 613 34 Deferred revenue 44,854 36,271 (8,583 ) Capitalized contract acquisition costs 3,324 4,138 814 (1) Includes cumulative effect adjustments made to these accounts on October 1, 2018 due to the adoption of ASC 606. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands): Estimated As of March 31, 2019 Useful Life (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible Assets: Customer relationships 3-10 $ 36,599 $ (9,421 ) $ 27,178 Developed technology 5-6 12,083 (7,400 ) 4,683 Total $ 48,682 $ (16,821 ) $ 31,861 Estimated As of September 30, 2018 Useful Life (in Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible Assets: Customer relationships 3-10 $ 36,599 $ (7,642 ) $ 28,957 Developed technology 5-6 12,083 (6,448 ) 5,635 Backlog 5 280 (275 ) 5 Total $ 48,962 $ (14,365 ) $ 34,597 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense for the intangible assets as of March 31, 2019 is as follows (in thousands): Fiscal Year 2019 (remaining 6 months) $ 2,731 2020 4,751 2021 4,686 2022 4,686 2023 and thereafter 15,007 Total future amortization $ 31,861 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Term Loan with Wells Fargo and Promissory Notes | As of March 31, 2019 , the term loan with Wells Fargo and the promissory note consisted of the following (in thousands): Principal $ 49,750 Unamortized debt discount and issuance costs (756 ) Net carrying amount $ 48,994 |
Schedule of Future Principal Payments for Term Loan with Wells Fargo and Promissory Notes | The future scheduled principal payments for the term loan with Wells Fargo and the promissory note as of March 31, 2019 were as follows (in thousands): Fiscal Year 2019 (remaining 6 months) $ — 2020 5,000 2021 2,938 2022 3,750 2023 38,062 Total $ 49,750 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measured on Recurring Basis | The table below sets forth our cash equivalents as of March 31, 2019 and September 30, 2018 (in thousands), which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. Level 1 Level 2 Level 3 Total As of March 31, 2019 Assets: Cash equivalents $ 40,399 $ — $ — $ 40,399 Total assets $ 40,399 $ — $ — $ 40,399 As of September 30, 2018 Assets: Cash equivalents $ 43,741 $ — $ — $ 43,741 Total assets $ 43,741 $ — $ — $ 43,741 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity and Related Information Under All Equity Plans | The following table summarizes the stock option activity and related information under all equity plans: Number of Shares (thousands) Weighted Average Exercised Price Weighted Average Remaining Contract Term (in Years) Aggregate Intrinsic Value (in thousands) Balance at September 30, 2018 227 $ 7.64 2.94 $ 1,861 Granted — — — Exercised (62 ) 6.31 — Forfeited — — — Expired (6 ) 5.31 — Balance at March 31, 2019 159 $ 8.25 2.65 $ 1,477 Options exercisable as of March 31, 2019 159 $ 8.25 2.65 $ 1,477 Options vested and expected to vest as of March 31, 2019 159 $ 8.25 2.65 $ 1,477 |
Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Units) Under All Equity Award Plans | The following table summarizes our restricted stock unit (“RSU”) activity which includes performance-based RSUs under all equity plans (in thousands, except per share data): Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance at September 30, 2018 2,313 $ 15.78 Granted 1,313 14.97 Released (856 ) 15.32 Forfeited (164 ) 14.22 Balance at March 31, 2019 2,606 $ 15.63 |
Stock-based Compensation | Stock-based compensation recorded in our condensed consolidated statements of operations is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Cost of revenues Subscription $ 469 $ 346 $ 929 $ 597 Professional services 561 357 1,040 676 Total stock-based compensation in cost of revenues 1,030 703 1,969 1,273 Operating expenses Research and development 861 743 1,625 1,400 Sales and marketing 1,239 660 2,384 1,531 General and administrative 1,766 1,140 3,121 3,078 Total stock-based compensation in operating expenses 3,866 2,543 7,130 6,009 Total stock-based compensation $ 4,896 $ 3,246 $ 9,099 $ 7,282 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stockholder's Equity | The following table presents the changes of the components of stockholders’ equity during the three months ended March 31, 2019 and 2018 (in thousands): Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at December 31, 2018 31,535 $ 5 $ 249,053 $ (1,099 ) $ (197,842 ) $ 50,117 Issuance of common stock upon exercise of stock options 55 — 351 — — 351 Issuance of common stock upon release of restricted stock units 772 — — — — — Issuance of common stock upon ESPP purchase 119 — 1,631 — — 1,631 Stock-based compensation — — 4,896 — — 4,896 Other comprehensive income (loss) — — — 105 — 105 Net loss — — — — (5,908 ) (5,908 ) Balance at March 31, 2019 32,481 $ 5 $ 255,931 $ (994 ) $ (203,750 ) $ 51,192 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at December 31, 2017 29,474 $ 4 $ 221,639 $ (393 ) $ (180,550 ) $ 40,700 Issuance of common stock upon exercise of stock options 89 — 739 — — 739 Issuance of common stock upon release of restricted stock units 838 1 — — — 1 Issuance of common stock upon ESPP purchase 129 — 1,483 — — 1,483 Stock-based compensation — — 3,246 — — 3,246 Other comprehensive income (loss) — — — (90 ) — (90 ) Net loss — — — — (3,896 ) (3,896 ) Balance at March 31, 2018 30,530 $ 5 $ 227,107 $ (483 ) $ (184,446 ) $ 42,183 The following table presents the changes of the components of stockholders’ equity during the six months ended March 31, 2019 and 2018 were as follows (in thousands): Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2018 31,444 $ 5 $ 244,814 $ (1,285 ) $ (203,500 ) $ 40,034 Cumulative effect of a change in accounting principal — — — — 10,384 10,384 Issuance of common stock upon exercise of stock options 62 — 387 — — 387 Issuance of common stock upon release of restricted stock units 856 — — — — — Issuance of common stock upon ESPP purchase 119 — 1,631 — — 1,631 Stock-based compensation — — 9,099 — — 9,099 Other comprehensive income (loss) — — — 291 — 291 Net loss — — — — (10,634 ) (10,634 ) Balance at March 31, 2019 32,481 $ 5 $ 255,931 $ (994 ) $ (203,750 ) $ 51,192 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2017 29,323 $ 4 $ 217,052 $ (502 ) $ (175,293 ) $ 41,261 Issuance of common stock upon exercise of stock options 151 — 1,290 — — 1,290 Issuance of common stock upon release of restricted stock units 927 1 — — — 1 Issuance of common stock upon ESPP purchase 129 — 1,483 — — 1,483 Stock-based compensation — — 7,282 — — 7,282 Other comprehensive income (loss) — — — 19 — 19 Net loss — — — — (9,153 ) (9,153 ) Balance at March 31, 2018 30,530 $ 5 $ 227,107 $ (483 ) $ (184,446 ) $ 42,183 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | The following table sets forth the computation of our basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share data): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Numerator Basic and diluted Net loss attributable to common stockholders $ (5,908 ) $ (3,896 ) $ (10,634 ) $ (9,153 ) Denominator Basic and diluted Weighted average shares used in computing net loss per share attributable to common stockholders 31,999 29,983 31,741 29,689 Net loss per share attributable to common stockholders: Basic and diluted $ (0.18 ) $ (0.13 ) $ (0.34 ) $ (0.31 ) |
Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders | The following shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders as the effect would have been anti-dilutive (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Stock options 93 169 100 191 Performance-based restricted stock units and restricted stock units 1,524 1,499 1,643 1,563 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Company's Property and Equipment, Net by Geographic Region | The following table sets forth our property and equipment, net, by geographic region (in thousands): As of March 31, 2019 As of September 30, 2018 United States $ 1,188 $ 1,809 India 225 337 Total property and equipment, net $ 1,413 $ 2,146 |
The Company and Significant A_4
The Company and Significant Accounting Policies and Estimates - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contracts amortization period | 5 years | ||
Accumulated deficit | $ (203,750) | $ (193,116) | $ (203,500) |
Adjustments - ASU 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ (6,095) | ||
Cumulative effect adjustments due to adoption of ASC 606 [Member] | Adjustments - ASU 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ 10,384 |
The Company and Significant A_5
The Company and Significant Accounting Policies and Estimates - Effects of Adopting ASC 606 on Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Assets | |||
Accounts receivable, net | $ 19,450 | $ 27,694 | $ 28,273 |
Other current assets | 2,431 | 2,123 | 455 |
Other assets | 3,777 | 3,206 | 1,064 |
Liabilities | |||
Accrued liabilities | 4,704 | 3,782 | 3,182 |
Deferred revenue, current portion | 35,989 | 44,423 | 52,176 |
Stockholders’ Equity | |||
Accumulated deficit | (203,750) | (193,116) | (203,500) |
Adjustments - ASU 2014-09 [Member] | |||
Assets | |||
Accounts receivable, net | 613 | ||
Other current assets | (2,017) | ||
Other assets | (2,704) | ||
Liabilities | |||
Accrued liabilities | (386) | ||
Deferred revenue, current portion | 2,373 | ||
Stockholders’ Equity | |||
Accumulated deficit | (6,095) | ||
Balance under Revenue Guidance in Effect before Topic 606 [Member] | |||
Assets | |||
Accounts receivable, net | 20,063 | 28,273 | |
Other current assets | 414 | 455 | |
Other assets | 1,073 | 1,064 | |
Liabilities | |||
Accrued liabilities | 4,318 | 3,182 | |
Deferred revenue, current portion | 38,362 | 52,176 | |
Stockholders’ Equity | |||
Accumulated deficit | $ (209,845) | $ (203,500) | |
Cumulative effect adjustments due to the adoption of ASC 606 [member] | Adjustments - ASU 2014-09 [Member] | |||
Assets | |||
Accounts receivable, net | (579) | ||
Other current assets | 1,668 | ||
Other assets | 2,142 | ||
Liabilities | |||
Accrued liabilities | 600 | ||
Deferred revenue, current portion | (7,753) | ||
Stockholders’ Equity | |||
Accumulated deficit | $ 10,384 |
The Company and Significant A_6
The Company and Significant Accounting Policies and Estimates - Effects of Adopting ASC 606 on Condensed Consolidated Financial Statements (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
(in thousands) | ||||||
Accounts receivable, net | $ 19,450 | $ 19,450 | $ 27,694 | $ 28,273 | ||
Other current assets | 2,431 | 2,431 | 2,123 | 455 | ||
Other assets | 3,777 | 3,777 | 3,206 | 1,064 | ||
Current liabilities | ||||||
Accrued liabilities | 4,704 | 4,704 | 3,782 | 3,182 | ||
Deferred revenue, current portion | 35,989 | 35,989 | 44,423 | 52,176 | ||
Stockholders’ Equity | ||||||
Accumulated deficit | (203,750) | (203,750) | $ (193,116) | (203,500) | ||
(in thousands, except per share amounts) | ||||||
Total revenues | 34,843 | $ 39,234 | 69,920 | $ 78,301 | ||
Cost of professional services revenues | 16,746 | 17,253 | 33,313 | 34,062 | ||
Sales and marketing | 8,598 | 9,015 | 16,650 | 17,507 | ||
Loss from operations | (4,749) | (2,405) | (7,859) | (6,438) | ||
Net loss | $ (5,908) | $ (3,896) | $ (10,634) | $ (9,153) | ||
Net loss per share - basic and diluted EPS (in dollars per share) | $ (0.18) | $ (0.13) | $ (0.34) | $ (0.31) | ||
Adjustments - ASU 2014-09 [Member] | ||||||
(in thousands) | ||||||
Accounts receivable, net | $ 613 | $ 613 | ||||
Other current assets | (2,017) | (2,017) | ||||
Other assets | (2,704) | (2,704) | ||||
Current liabilities | ||||||
Accrued liabilities | (386) | (386) | ||||
Deferred revenue, current portion | 2,373 | 2,373 | ||||
Stockholders’ Equity | ||||||
Accumulated deficit | (6,095) | (6,095) | ||||
(in thousands, except per share amounts) | ||||||
Total revenues | 4,983 | 5,166 | ||||
Sales and marketing | 317 | 814 | ||||
Loss from operations | 4,650 | 4,289 | ||||
Net loss | $ 4,650 | $ 4,289 | ||||
Net loss per share - basic and diluted EPS (in dollars per share) | $ 0.14 | $ 0.14 | ||||
As if presented under ASC 605 [Member] | ||||||
(in thousands) | ||||||
Accounts receivable, net | $ 20,063 | $ 20,063 | 28,273 | |||
Other current assets | 414 | 414 | 455 | |||
Other assets | 1,073 | 1,073 | 1,064 | |||
Current liabilities | ||||||
Accrued liabilities | 4,318 | 4,318 | 3,182 | |||
Deferred revenue, current portion | 38,362 | 38,362 | 52,176 | |||
Stockholders’ Equity | ||||||
Accumulated deficit | (209,845) | (209,845) | $ (203,500) | |||
(in thousands, except per share amounts) | ||||||
Total revenues | 39,826 | 75,086 | ||||
Sales and marketing | 8,915 | 17,464 | ||||
Loss from operations | (99) | (3,570) | ||||
Net loss | $ (1,258) | $ (6,345) | ||||
Net loss per share - basic and diluted EPS (in dollars per share) | $ (0.04) | $ (0.20) | ||||
Subscription [Member] | ||||||
(in thousands, except per share amounts) | ||||||
Total revenues | $ 25,940 | $ 24,004 | $ 51,142 | $ 47,851 | ||
Cost of professional services revenues | 8,852 | 9,440 | 17,590 | 19,055 | ||
Subscription [Member] | Adjustments - ASU 2014-09 [Member] | ||||||
(in thousands, except per share amounts) | ||||||
Total revenues | 1,041 | 992 | ||||
Subscription [Member] | As if presented under ASC 605 [Member] | ||||||
(in thousands, except per share amounts) | ||||||
Total revenues | 26,981 | 52,134 | ||||
Professional services [Member] | ||||||
(in thousands, except per share amounts) | ||||||
Total revenues | 8,903 | 15,230 | 18,778 | 30,450 | ||
Cost of professional services revenues | 7,894 | $ 7,813 | 15,723 | $ 15,007 | ||
Professional services [Member] | Adjustments - ASU 2014-09 [Member] | ||||||
(in thousands, except per share amounts) | ||||||
Total revenues | 3,942 | 4,174 | ||||
Cost of professional services revenues | 16 | 63 | ||||
Professional services [Member] | As if presented under ASC 605 [Member] | ||||||
(in thousands, except per share amounts) | ||||||
Total revenues | 12,845 | 22,952 | ||||
Cost of professional services revenues | $ 7,910 | $ 15,786 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Customer Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
Accounts receivable, net | |||||
Accounts receivable, net | $ 19,450 | $ 19,450 | $ 27,694 | $ 28,273 | |
Change in accounts receivable, net | (8,353) | (8,244) | $ 6,622 | ||
Contract asset | |||||
Contract asset | 613 | 613 | 579 | ||
Change in contract assets | 34 | ||||
Deferred revenue | |||||
Deferred revenue | 36,271 | 36,271 | 44,854 | ||
Change in deferred revenues | (8,583) | ||||
Capitalized contract acquisition costs | |||||
Capitalized contract acquisition costs | $ 4,138 | 4,138 | $ 3,324 | ||
Change in capitalized contract acquisition costs | $ 814 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized that was included in deferred revenue at beginning of period | $ 18,400,000 | $ 33,100,000 | |
Capitalized contract acquisition costs, current portion | 1,400,000 | 1,400,000 | |
Capitalized contract acquisition costs, non-current portion | 2,700,000 | 2,700,000 | |
Amortization of capitalized contract acquisition costs | 400,000 | 780,000 | $ 0 |
Impairment loss related to contract balances | $ 0 | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers Revenues from Contracts with Customers - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations not satisfied or partially satisfied | $ 83.2 |
Remaining performance obligation, percentage | 70.00% |
Remaining performance obligation, expected timing of satisfaction | 12 months |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Sep. 30, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 48,682 | $ 48,962 |
Intangible assets, Accumulated Amortization | (16,821) | (14,365) |
Intangible assets, Net Carrying Amount | 31,861 | 34,597 |
Customer Relationship [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | 36,599 | 36,599 |
Intangible assets, Accumulated Amortization | (9,421) | (7,642) |
Intangible assets, Net Carrying Amount | $ 27,178 | $ 28,957 |
Customer Relationship [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 3 years | 3 years |
Customer Relationship [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 10 years | 10 years |
Developed technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 12,083 | $ 12,083 |
Intangible assets, Accumulated Amortization | (7,400) | (6,448) |
Intangible assets, Net Carrying Amount | $ 4,683 | $ 5,635 |
Developed technology [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 5 years | 5 years |
Developed technology [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 6 years | 6 years |
Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 5 years | |
Intangible assets, Gross Carrying Amount | $ 280 | |
Intangible assets, Accumulated Amortization | (275) | |
Intangible assets, Net Carrying Amount | $ 5 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 1.3 | $ 1.4 | $ 2.7 | $ 2.8 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2019 (remaining 6 months) | $ 2,731 | |
2020 | 4,751 | |
2021 | 4,686 | |
2022 | 4,686 | |
2023 and thereafter | 15,007 | |
Intangible assets, Net Carrying Amount | $ 31,861 | $ 34,597 |
Debt - Extinguished Term Loan A
Debt - Extinguished Term Loan Additional Information (Detail) | Jan. 05, 2017USD ($) |
Term Loan [Member] | Financing Agreement [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 50,000,000 |
Debt - Term Loan & Credit Facil
Debt - Term Loan & Credit Facility Additional Information (Detail) - USD ($) | Jan. 02, 2019 | May 04, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||||||
Principal payment | $ 5,000,000 | $ 0 | ||||
Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Financial covenants | $ 15,000,000 | |||||
Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated liquidity | $ 30,000,000 | |||||
Consolidated liquidity term | 90 days | |||||
Minimum leverage ratio | 350.00% | |||||
Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.50% | |||||
Credit Agreement [Member] | LIBOR Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4.50% | |||||
Credit Agreement [Member] | LIBOR Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.00% | |||||
Credit Agreement [Member] | LIBOR Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4.50% | |||||
Credit Agreement [Member] | Revolving Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving line of credit, aggregate principal amount | $ 5,000,000 | |||||
Amount available under line of credit | $ 5,000,000 | $ 5,000,000 | ||||
Credit Agreement [Member] | Revolving Loan [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unused line fee percentage | 0.25% | |||||
Credit Agreement [Member] | Revolving Loan [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unused line fee percentage | 0.50% | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 7.50% | 7.50% | ||||
Term Loan [Member] | Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 50,000,000 | |||||
Transaction costs | $ 700,000 | |||||
Principal payment | $ 4,800,000 |
Debt - Promissory Note Addition
Debt - Promissory Note Additional Information (Detail) | Jul. 05, 2018USD ($) | Jan. 05, 2017USD ($)PromissoryNote | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Principal payment | $ 5,000,000 | $ 0 | ||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 7.50% | |||
Promissory Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 10,000,000 | |||
Number of promissory notes issued | PromissoryNote | 2 | |||
Fair value of promissory note | $ 8,600,000 | |||
Discounted future cash flow interest rate | 0.0996 | |||
Promissory notes, interest rate | 3.00% | |||
Promissory Note One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 5,000,000 | |||
Principal payment | $ 5,000,000 | |||
Promissory Note Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 5,000,000 | |||
Effective interest rate | 9.89% |
Debt - Schedule of Term Loan wi
Debt - Schedule of Term Loan with Wells Fargo and Promissory Notes (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Principal | $ 49,750 |
Unamortized debt discount and issuance costs | (756) |
Net carrying amount | $ 48,994 |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments for Term Loan with Wells Fargo and Promissory Notes (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Fiscal Year | |
2019 (remaining 6 months) | $ 0 |
2020 | 5,000 |
2021 | 2,938 |
2022 | 3,750 |
2023 | 38,062 |
Total | $ 49,750 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Details) $ in Millions | Mar. 31, 2019USD ($) |
Cash flow hedging [Member] | Foreign currency exchange contracts [Member] | |
Derivative [Line Items] | |
Notional amount | $ 4.2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - Fair Value Measurement Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 40,399 | $ 43,741 |
Total assets | 40,399 | 43,741 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 40,399 | 43,741 |
Total assets | 40,399 | 43,741 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) - Money market funds [Member] - USD ($) | Mar. 31, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains | $ 0 | $ 0 |
Unrealized losses | $ 0 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Number of shares available for future stock awards (in shares) | 4,100,000 | 4,100,000 | ||
Number of stock options, Granted (in shares) | 0 | 0 | 0 | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information Under All Stock Option Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Number of Shares (thousands) | |||||
Balance at beginning of period (in shares) | 227,000 | ||||
Granted (in shares) | 0 | 0 | 0 | 0 | |
Exercised (in shares) | (62,000) | ||||
Forfeited (in shares) | 0 | ||||
Expired (in shares) | (6,000) | ||||
Balance at end of period (in shares) | 159,000 | 159,000 | 227,000 | ||
Options exercisable as of end of period (in shares) | 159,000 | 159,000 | |||
Options vested and expected to vest at end of period (in shares) | 159,000 | 159,000 | |||
Weighted Average Exercised Price | |||||
Balance at beginning of period (in dollars per share) | $ 7.64 | ||||
Granted (in dollars per share) | 0 | ||||
Exercised (in dollars per share) | 6.31 | ||||
Forfeited (in dollars per share) | 0 | ||||
Expired (in dollars per share) | 5.31 | ||||
Balance at end of period (in dollars per share) | $ 8.25 | 8.25 | $ 7.64 | ||
Options exercisable at end of period (in dollars per share) | 8.25 | 8.25 | |||
Options vested and expected to vest (in dollars per share) | $ 8.25 | $ 8.25 | |||
Weighted Average Remaining Contract Term (in Years) | |||||
Weighted Average Remaining Contract Term (in Years). Shares outstanding | 2 years 7 months 24 days | 2 years 11 months 8 days | |||
Weighted Average Remaining Contract Term (in Years), Options exercisable at end of period | 2 years 7 months 24 days | ||||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest at end of period | 2 years 7 months 24 days | ||||
Aggregate Intrinsic Value (in thousands) | |||||
Aggregate Intrinsic Value, Options outstanding | $ 1,477 | $ 1,477 | $ 1,861 | ||
Aggregate Intrinsic Value, Options exercisable | 1,477 | 1,477 | |||
Aggregate Intrinsic Value, Options vested and expected to vest | $ 1,477 | $ 1,477 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Awards) Under All Equity Award Plans (Detail) - Restricted Stock Units [Member] shares in Thousands | 6 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock Units Outstanding (in thousands) | |
Balance at beginning of period (in shares) | shares | 2,313 |
Granted (in shares) | shares | 1,313 |
Released (in shares) | shares | (856) |
Forfeited (in shares) | shares | (164) |
Balance at end of period (in shares) | shares | 2,606 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 15.78 |
Granted (in dollars per share) | $ / shares | 14.97 |
Released (in dollars per share) | $ / shares | 15.32 |
Forfeited (in dollars per share) | $ / shares | 14.22 |
Balance at end of period (in dollars per share) | $ / shares | $ 15.63 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Allocated Stock-based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 4,896 | $ 3,246 | $ 9,099 | $ 7,282 |
Total Stock-based Compensation in cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,030 | 703 | 1,969 | 1,273 |
Total Stock-based Compensation in operating expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 3,866 | 2,543 | 7,130 | 6,009 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 861 | 743 | 1,625 | 1,400 |
Sales and marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,239 | 660 | 2,384 | 1,531 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,766 | 1,140 | 3,121 | 3,078 |
Subscription [Member] | Total Stock-based Compensation in cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 469 | 346 | 929 | 597 |
Professional services [Member] | Total Stock-based Compensation in cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 561 | $ 357 | $ 1,040 | $ 676 |
Stockholders' Equity - Componen
Stockholders' Equity - Component of Stockholders' Equity (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | $ 50,117 | $ 40,700 | $ 40,034 | $ 41,261 | |
Cumulative effect of a change in accounting principal | $ 10,384 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 62 | ||||
Issuance of common stock upon exercise of stock options | 351 | 739 | $ 387 | 1,290 | |
Issuance of common stock upon release of restricted stock units | 0 | 1 | 0 | 1 | |
Issuance of common stock upon ESPP purchase | 1,631 | 1,483 | 1,631 | 1,483 | |
Stock-based compensation | 4,896 | 3,246 | 9,099 | 7,282 | |
Other comprehensive income (loss) | 105 | (90) | 291 | 19 | |
Net loss | (5,908) | (3,896) | (10,634) | (9,153) | |
Balance at end of period | $ 51,192 | $ 42,183 | $ 51,192 | $ 42,183 | |
Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period (in shares) | 31,535 | 29,474 | 31,444 | 29,323 | |
Balance at beginning of period | $ 5 | $ 4 | $ 5 | $ 4 | |
Issuance of common stock upon exercise of stock options (in shares) | 55 | 89 | 62 | 151 | |
Issuance of common stock upon release of restricted stock units (in shares) | 772 | 838 | 856 | 927 | |
Issuance of common stock upon release of restricted stock units | $ 1 | $ 1 | |||
Issuance of common stock upon ESPP purchase (in shares) | 119 | 129 | 119 | 129 | |
Balance at end of period (in shares) | 32,481 | 30,530 | 32,481 | 30,530 | |
Balance at end of period | $ 5 | $ 5 | $ 5 | $ 5 | |
Additional Paid-In Capital [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | 249,053 | 221,639 | 244,814 | 217,052 | |
Issuance of common stock upon exercise of stock options | 351 | 739 | 387 | 1,290 | |
Issuance of common stock upon ESPP purchase | 1,631 | 1,483 | 1,631 | 1,483 | |
Stock-based compensation | 4,896 | 3,246 | 9,099 | 7,282 | |
Balance at end of period | 255,931 | 227,107 | 255,931 | 227,107 | |
Accumulated Other Comprehensive Loss [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | (1,099) | (393) | (1,285) | (502) | |
Other comprehensive income (loss) | 105 | (90) | 291 | 19 | |
Balance at end of period | (994) | (483) | (994) | (483) | |
Accumulated Deficit [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at beginning of period | (197,842) | (180,550) | (203,500) | (175,293) | |
Cumulative effect of a change in accounting principal | $ 10,384 | ||||
Net loss | (5,908) | (3,896) | (10,634) | (9,153) | |
Balance at end of period | $ (203,750) | $ (184,446) | $ (203,750) | $ (184,446) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Foreign subsidiary earnings repatriated | $ 2,500,000 | ||||
Foreign withholding tax paid | $ 500,000 | ||||
Income tax (benefit) expense | $ 141,000 | $ 129,000 | $ 739,000 | $ (195,000) | |
Effective income tax (benefit) expense, rate | 2.40% | 3.40% | 7.50% | (2.10%) | |
Benefit realized for current period losses | $ 0 | $ 0 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Basic and diluted | ||||
Net loss attributable to common stockholders | $ (5,908) | $ (3,896) | $ (10,634) | $ (9,153) |
Denominator, Basic and diluted | ||||
Weighted average shares used in computing net loss per share attributable to common stockholders (in shares) | 31,999 | 29,983 | 31,741 | 29,689 |
Net loss per share attributable to common stockholders: | ||||
Basic and diluted (in dollars per share) | $ (0.18) | $ (0.13) | $ (0.34) | $ (0.31) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 93 | 169 | 100 | 191 |
Performance-based restricted stock units and restricted stock units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1,524 | 1,499 | 1,643 | 1,563 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019JurisdictionActivitySegment | Mar. 31, 2018Jurisdiction | |
Segment Reporting Information [Line Items] | ||||
Number of operating segment | Segment | 1 | |||
Number of business activity | Activity | 1 | |||
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
The number of jurisdiction outside US which represents over 10% of total revenue | Jurisdiction | 0 | 0 | ||
Other [Member] | Revenue [Member] | Geographic concentration risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from customers outside United States | 18.00% | 12.00% | 17.00% | 13.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 1,413 | $ 2,146 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 1,188 | 1,809 |
India [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 225 | $ 337 |