Model N (MODN) 10-Q 9 Aug 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-35840
Entity Registrant Name	Model N, Inc.
Entity Incorporation, State	DE
Entity Tax Identification Number	77-0528806
Entity Address, Street Address	777 Mariners Island Boulevard,
Entity Address, Suite	Suite 300
Entity Address, City	San Mateo,
Entity Address, State	CA
Entity Address, Postal Zip Code	94404
City Area Code	650
Local Phone Number	610-4600
Title of each class	Common Stock, par value $0.00015 per share
Trading Symbol	MODN
Name of each exchange on which registered	NYSE
Entity Current Filing Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,040,478
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001118417
Current Fiscal Year End Date	--09-30

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Current assets
Cash and cash equivalents	$ 184,486	$ 165,467
Funds held for customers	174	316
Accounts receivable, net of allowance for doubtful accounts of $101 as of June 30, 2022 and $225 as of September 30, 2021	38,485	43,185
Prepaid expenses	4,804	4,920
Other current assets	8,500	8,442
Total current assets	236,449	222,330
Property and equipment, net	1,584	1,907
Operating lease right-of-use assets	16,689	20,565
Goodwill	65,665	65,665
Intangible assets, net	39,370	45,394
Other assets	9,942	7,929
Total assets	369,699	363,790
Current liabilities
Accounts payable	3,278	4,802
Customer funds payable	174	316
Accrued employee compensation	20,379	24,662
Accrued liabilities	5,072	4,719
Operating lease liabilities, current portion	4,585	4,529
Deferred revenue, current portion	54,060	57,431
Total current liabilities	87,548	96,459
Long term debt	132,512	124,301
Operating lease liabilities, less current portion	13,454	17,229
Other long-term liabilities	3,112	2,283
Total liabilities	236,626	240,272
Commitments and contingencies
Stockholders’ equity
Common Stock, $0.00015 par value; 200,000 shares authorized; 37,040 and 36,059 shares issued and outstanding at June 30, 2022 and September 30, 2021, respectively	6	5
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding	0	0
Additional paid-in capital	411,557	380,528
Accumulated other comprehensive loss	(2,157)	(1,205)
Accumulated deficit	(276,333)	(255,810)
Total stockholders’ equity	133,073	123,518
Total liabilities and stockholders’ equity	$ 369,699	$ 363,790

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 101	$ 225
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)	37,040,000	36,059,000
Common Stock, shares outstanding (in shares)	37,040,000	36,059,000
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		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Total revenues	$ 56,172	$ 51,038	$ 160,994	$ 141,964
Cost of revenues
Total cost of revenues	24,807	23,450	71,509	63,943
Gross profit	31,365	27,588	89,485	78,021
Operating expenses
Research and development	11,797	11,674	35,035	32,866
Sales and marketing	11,795	11,146	34,873	32,111
General and administrative	9,857	8,653	27,618	25,052
Total operating expenses	33,449	31,473	97,526	90,029
Loss from operations	(2,084)	(3,885)	(8,041)	(12,008)
Interest expense, net	3,794	3,631	11,420	10,645
Other expenses (income), net	(271)	(39)	(283)	175
Loss before income taxes	(5,607)	(7,477)	(19,178)	(22,828)
Provision for income taxes	611	352	1,345	840
Net loss	$ (6,218)	$ (7,829)	$ (20,523)	$ (23,668)
Net loss per share attributable to common stockholders:
Basic (usd per share)	$ (0.17)	$ (0.22)	$ (0.56)	$ (0.67)
Diluted (usd per share)	$ (0.17)	$ (0.22)	$ (0.56)	$ (0.67)
Weighted average number of shares used in computing net loss per share attributable to common stockholders:
Basic (in shares)	36,935	35,679	36,591	35,305
Diluted (in shares)	36,935	35,679	36,591	35,305
Subscription
Revenues
Total revenues	$ 40,554	$ 36,908	$ 116,885	$ 104,284
Cost of revenues
Total cost of revenues	14,869	13,799	43,249	36,525
Professional services
Revenues
Total revenues	15,618	14,130	44,109	37,680
Cost of revenues
Total cost of revenues	$ 9,938	$ 9,651	$ 28,260	$ 27,418

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,218)	$ (7,829)	$ (20,523)	$ (23,668)
Other comprehensive loss, net of tax
Unrealized loss on cash flow hedges	(240)	(16)	(375)	(7)
Foreign currency translation loss	(415)	(87)	(577)	(11)
Total comprehensive loss	$ (6,873)	$ (7,932)	$ (21,475)	$ (23,686)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net loss	$ (20,523)	$ (23,668)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	6,725	5,740
Stock-based compensation	25,186	21,850
Amortization of debt discount and issuance costs	8,211	7,286
Deferred income taxes	414	84
Amortization of capitalized contract acquisition costs	3,152	2,223
Other non-cash charges	(515)	0
Changes in assets and liabilities, net of acquisition
Accounts receivable	4,908	(2,382)
Prepaid expenses and other assets	(1,611)	(2,470)
Accounts payable	(1,516)	1,849
Accrued employee compensation	(794)	745
Other current and long-term liabilities	(3,020)	(3,095)
Deferred revenue	(3,284)	1,528
Net cash provided by operating activities	17,333	9,690
Cash flows from investing activities
Purchases of property and equipment	(486)	(842)
Acquisition of business	0	(57,849)
Net cash used in investing activities	(486)	(58,691)
Cash flows from financing activities
Proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan	2,507	2,306
Net changes in customer funds payable	(142)	6,908
Net cash provided by financing activities	2,365	9,214
Effect of exchange rate changes on cash and cash equivalents	(335)	(30)
Net increase (decrease) in cash and cash equivalents	18,877	(39,817)
Cash and cash equivalents
Beginning of period	165,783	200,491
End of period	$ 184,660	$ 160,674

The Company and Significant Acc

The Company and Significant Accounting Policies and Estimates	9 Months Ended
	Jun. 30, 2022
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. The Company is a provider of cloud revenue management solutions for the life sciences and high tech industries. The Company’s software and business services enable its 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. The Company’s corporate headquarters are located in San Mateo, California, with additional offices in the United States, India and Switzerland. Fiscal Year The Company’s fiscal year ends on September 30. References to fiscal year 2022, for example, refer to the fiscal year ending September 30, 2022. 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 September 30, 2021 has been derived from the audited financial statements which are included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021 (“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 nine months ended June 30, 2022 are not necessarily indicative of the operating results for the full fiscal year 2022 or any future periods. The condensed consolidated financial statements include the accounts of Model N and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. 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, liability and equity allocation of convertible senior notes, 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. COVID-19 The Company is subject to risks and uncertainties as a result of the ongoing COVID-19 pandemic. At this point, the extent to which the COVID-19 pandemic may impact the Company’s financial condition or results of operations is uncertain. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require us to update our estimates, judgments or revise the carrying value of our assets or liabilities. The estimates discussed above may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. New Accounting Pronouncements Recently Adopted Accounting Guidance In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance in the first quarter of fiscal year 2022 and it did not have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles (Topic 350), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard also requires customers to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance prospectively in the first quarter of fiscal year 2021 and it did not have a material impact on the condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. ASU 2016-13 requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company adopted this guidance in the first quarter of fiscal year 2021 and it did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. ASU 2020-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements. In October 2021, the FASB issued Accounting Standards Update No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022 on a prospective basis, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2021-08 to its consolidated financial statements. Significant Accounting Policies There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended September 30, 2021 included in the Annual Report on Form 10-K.

Revenues from Contracts with Cu

Revenues from Contracts with Customers	9 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenues from Contracts with Customers	Revenues from Contracts with Customers Revenue Recognition The Company derives revenues primarily from subscription revenues and professional services revenues. Disaggregation of Revenues See Note 14, Geographic Information, for information on revenue by geography. Customer Contract Balances The following table reflects contract balances related to contracts with customers (in thousands): As of June 30, 2022 As of September 30, 2021 Accounts receivable, net $ 38,485 $ 43,185 Contract asset 4,212 4,891 Deferred revenue 54,548 57,796 Capitalized contract acquisition costs 12,247 9,539 Accounts Receivable Accounts receivable represents the Company’s 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 collectability of accounts receivable amounts. Contract Asset Contract asset represents revenue that has been recognized for satisfied performance obligations for which the Company does 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 the Company has 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 the condensed consolidated balance sheets. During the three and nine months ended June 30, 2022, the Company recognized revenue of $27.4 million and $51.5 million, respectively, that was included in the deferred revenue balances at the beginning of the periods. During the three and nine months ended June 30, 2021, the Company recognized revenue of $24.5 million and $45.3 million, respectively, that was included in the deferred revenue balances at the beginning of the periods. Capitalized Contract Acquisition Costs The Company capitalizes incremental costs incurred to acquire contracts with customers, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. The Company incurs these costs in connection with both initial contracts and renewals. Such costs for renewals are not considered commensurate with those for initial contracts given the substantive difference in commission rates in proportion to their respective contract values. 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. The Company determined the period of benefit by considering the Company’s 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 the condensed consolidated balance sheets. Amortization expense is included in sales and marketing expenses on the condensed consolidated statements of operations. As of June 30, 2022, the current and non-current portions of capitalized contract acquisition costs were $4.1 million and $8.1 million, respectively. As of September 30, 2021, the current and non-current portions of capitalized contract acquisition costs were $3.3 million and $6.3 million, respectively. The Company amortized $1.1 million and $3.2 million of contract acquisition costs during the three and nine months ended June 30, 2022, respectively. The Company amortized $0.8 million and $2.2 million of contract acquisition costs during the three and nine months ended June 30, 2021, respectively. For the three and nine months ended June 30, 2022 and 2021, 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 related arrangement. These amounts are included in accrued liabilities on the condensed consolidated balance sheets. Customer deposits were immaterial as of June 30, 2022 and September 30, 2021. 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. Remaining 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 June 30, 2022, the aggregate amount of the transaction price allocated to performance obligations either unsatisfied or partially unsatisfied was $310.1 million, 41% of which we expect to recognize as revenue over the next 12 months and the remainder thereafter.

Leases

Leases	9 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	Leases The Company leases facilities under noncancellable operating leases with lease terms between three years and eleven years. Certain leases include options to extend or terminate the lease. The Company factored into the determination of lease payments the options that it is reasonably certain to exercise. Operating lease costs were $1.4 million and $4.4 million for the three and nine months ended June 30, 2022, respectively, and $1.4 million and $3.3 million for the three and nine months ended June 30, 2021, respectively. Short-term lease costs, variable lease costs, and sublease income were immaterial for the three and nine months ended June 30, 2022 and 2021. Cash flow information related to operating leases is as follows (in thousands): Nine Months Ended June 30, 2022 Nine Months Ended June 30, 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,800 $ 2,022 Operating lease ROU assets obtained in exchange for new operating lease liabilities — 19,289 The weighted-average remaining lease term is 3.8 years and the weighted-average discount rate is 2.9% as of June 30, 2022. Maturities of operating lease liabilities as of June 30, 2022 are as follows (in thousands): Fiscal Year Remaining fiscal 2022 $ 1,234 2023 5,099 2024 4,947 2025 4,587 2026 2,622 2027 and thereafter 575 Total operating lease payments 19,064 Less imputed interest 1,025 Total operating lease liabilities $ 18,039

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, funds held for customers, accounts receivable, accounts payable, customer funds payable, debt and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. The Company estimates the fair value of its 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. The table below sets forth the Company’s marketable securities which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Reported as: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents As of June 30, 2022 Level 1: Money market funds $ 33,415 $ — $ — $ 33,415 $ 33,415 US Treasury securities 84,881 — (39) 84,842 84,842 Total $ 118,296 $ — $ (39) $ 118,257 $ 118,257 As of September 30, 2021 Level 1: Money market funds $ 40,755 $ — $ — $ 40,755 $ 40,755 US Treasury securities 84,997 — — 84,997 84,997 Total $ 125,752 $ — $ — $ 125,752 $ 125,752 The Company’s financial instruments not measured at fair value on a recurring basis include cash, funds held for customers, accounts receivable, accounts payable, customer funds 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. See Note 7 for the fair value measurement of the Company’s derivative contracts and Note 8 for the fair value measurement of the Company’s convertible senior notes.

Acquisition, Goodwill, and Inta

Acquisition, Goodwill, and Intangible Assets	9 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Acquisition, Goodwill, and Intangible Assets	Acquisition, Goodwill, and Intangible Assets Acquisition On December 31, 2020, the Company acquired certain assets, properties and rights and certain liabilities and obligations from Deloitte & Touche LLP’s pricing and contracting solutions business for a contractual purchase price of $60.0 million subject to net working capital adjustments (the “Acquisition”). The acquired business operates primarily in the same markets as the Company’s existing operations. The reason for the Acquisition was to increase the Company’s addressable market and expand the opportunity to sell existing Model N products. This Acquisition has been accounted for as a business combination. The Company has included these results in its Consolidated Financial Statements since the date of Acquisition. The Company incurred $2.5 million of acquisition-related expense during the year ended September 30, 2021, which was recorded as general and administrative expenses. The total purchase consideration was $57.8 million and reflected a $2.2 million net working capital adjustment from the contractual purchase price. The original estimate was $0.1 million in the first quarter of fiscal year 2021 which resulted in a measurement period adjustment of $2.1 million. The Company paid the entire purchase consideration in cash during the year ended September 30, 2021. The purchase price was allocated to assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill. The following table sets forth the allocation of the purchase price in connection with the Acquisition (in thousands): Acquisition Date Fair Value Accounts receivable $ 3,844 Property and equipment, net 511 Operating lease right-of-use assets 2,764 Goodwill 26,382 Intangible assets 28,210 Total assets acquired 61,711 Operating lease liabilities, current portion 656 Deferred revenue, current portion 1,549 Operating lease liabilities, less current portion 1,657 Total liabilities assumed 3,862 Total purchase price $ 57,849 Intangible assets included customer relationships of $15.5 million, developed technology of $10.2 million, non-compete agreements of $1.6 million, and trade name of $0.9 million, which are amortized on a straight-line basis over 15 years, 6 years, 5 years, and 3 years, respectively, and over a weighted average period of 10.8 years. Fair value of the customer relationships was estimated using a multi-period excess earnings valuation method and fair value of the developed technology was estimated using a relief from royalty valuation method. The Company applied significant judgment in estimating the fair value of the customer relationships and developed technology intangible assets, which involved the use of significant assumptions. Significant assumptions used in the valuation of customer relationships intangible asset included subscription revenue growth rates, research and development expenses as percentage of revenue, discount rate, subscription gross margins, and customer attrition rate. Significant assumptions used in the valuation of developed technology intangible asset included royalty rate, obsolescence rate, and discount rate. Goodwill is comprised of expected synergies for the combined operations and the assembled workforce acquired in the Acquisition. This goodwill is deductible for income tax purposes. The Company has not presented the supplemental pro forma information for revenue and earnings related to the Acquisition, as it is deemed impracticable to determine and disclose this information, due to the unavailability of the information provided to the Company by Deloitte & Touche LLP, management’s inability to reasonably estimate the amounts from the carve out business and differing fiscal year-ends. Goodwill The following table summarizes the changes in the carrying amount of goodwill (in thousands): Balance at September 30, 2021 $ 65,665 Additions — Balance at June 30, 2022 $ 65,665 Intangible Assets Intangible assets consisted of the following (in thousands): Estimated As of June 30, 2022 Useful Life Gross Carrying Accumulated Net Carrying Intangible Assets: Customer relationships 3-15 $ 52,109 $ (22,536) $ 29,573 Developed technology 5-6 22,333 (14,081) 8,252 Non-compete agreements 5 1,600 (480) 1,120 Trade name 3 850 (425) 425 Total $ 76,892 $ (37,522) $ 39,370 Estimated As of September 30, 2021 Useful Life Gross Carrying Accumulated Net Carrying Intangible Assets: Customer relationships 3-15 $ 52,109 $ (19,092) $ 33,017 Developed technology 5-6 22,333 (11,954) 10,379 Non-compete agreements 5 1,600 (240) 1,360 Trade name 3 850 (212) 638 Total $ 76,892 $ (31,498) $ 45,394 The Company recorded amortization expense related to acquired intangible assets of $2.0 million and $6.0 million for the three and nine months ended June 30, 2022, respectively, and $2.0 million and $5.2 million for the three and nine months ended June 30, 2021, respectively. Estimated future amortization expense for the intangible assets as of June 30, 2022 is as follows (in thousands): Fiscal Year Remaining fiscal 2022 $ 2,008 2023 7,186 2024 6,691 2025 6,620 2026 6,069 2027 and thereafter 10,796 Total future amortization $ 39,370

Cash, Cash Equivalents, and Fun

Cash, Cash Equivalents, and Funds Held for Customers	9 Months Ended
	Jun. 30, 2022
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Funds Held for Customers	Cash, Cash Equivalents, and Funds Held for Customers As part of the acquisition of Deloitte & Touche LLP’s pricing and contracting solutions business, the Company now provides payment processing services to some customers whereby the Company has contractual obligations to remit funds to various third parties on behalf of these customers. Funds received from these customers represent cash and cash equivalents and are reflected in the “Funds held for customers” line item on the condensed consolidated balance sheets. The table below reconciles the cash and cash equivalents and funds held for customers as reported on the condensed consolidated balance sheets to the cash and cash equivalents on the condensed consolidated statements of cash flows (in thousands): As of June 30, 2022 As of September 30, 2021 Cash and cash equivalents $ 184,486 $ 165,467 Funds held for customers 174 316 Total cash and cash equivalents $ 184,660 $ 165,783

Derivative Instruments and Hedg

Derivative Instruments and Hedging	9 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging	Derivative Instruments and Hedging The Company uses foreign currency forward contracts to hedge a portion of the forecasted foreign currency-denominated expenses incurred 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. The Company does not use any of the derivative instruments for trading or speculative purposes. These contracts have maturities of 12 months or less. The Company records changes in the fair value of cash flow hedges in accumulated other comprehensive loss in the 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.The amounts reclassified to expenses related to the hedged transactions were immaterial for the periods presented. The fair value of the outstanding non-deliverable foreign currency forward contracts was measured using Level 2 fair value inputs and was immaterial as of June 30, 2022 and September 30, 2021. Notional Amounts of Derivative Contracts

Convertible Senior Notes

Convertible Senior Notes	9 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes In May 2020, the Company issued $172.5 million aggregate principal amount of 2.625% convertible senior notes in a private placement, including $22.5 million which represents the exercise in full of the initial purchasers’ option to purchase additional notes. The net proceeds from the issuance of the Notes was $166.4 million, net of initial purchasers’ discounts and debt issuance costs of $6.1 million. The Company used $40.0 million of the net proceeds to repay in full the debt outstanding under, and terminated the Credit Agreement dated May 4, 2018, as amended, by and among the Company, Wells Fargo, as administrative agent, and the lenders party thereto. The Notes are senior, unsecured obligations of the Company and bear an interest rate of 2.625% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The Notes mature on June 1, 2025 unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Notes are convertible into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 30.0044 shares of common stock per $1,000 principal amount of the Notes, which is equal to an initial conversion price of approximately $33.33 per share of common stock subject to adjustment, with a maximum conversion rate of 38.2555. The Company intends to settle the principal amount of the Notes with cash. Prior to the close of business on the scheduled trading day immediately preceding March 1, 2025, holders of the Notes may convert all or a portion of their Notes in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. On or after March 1, 2025 and prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Notes may convert all or a portion of their Notes in multiples of $1,000 principal amount regardless of the foregoing conditions. Holders of the Notes who convert their Notes in connection with a make-whole fundamental change (as defined in the Indenture) or in connection with any optional redemption are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. The Company may not redeem the Notes prior to June 6, 2023. The Company may redeem for cash all or part of the Notes, at its option, on or after June 6, 2023 and on or before the 41st scheduled trading day immediately before the maturity date, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. No sinking fund is provided for the Notes. During the three months ended June 30, 2022, the conditions allowing holders of the Notes to convert were not met. The Notes were classified as long-term debt on the condensed consolidated balance sheets as of June 30, 2022. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component of $115.3 million was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $57.2 million and was determined by deducting the fair value of the liability component from the principal amount of the Notes. The excess of the principal amount of the Notes over the carrying amount of the liability component is amortized to interest expense at an effective interest rate over the contractual terms of the Notes. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were $4.1 million and are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component of $2.0 million were netted with the equity component in stockholders’ equity. The net carrying amounts of the liability and equity components for the Notes were as follows (in thousands): As of June 30, 2022 As of September 30, 2021 Liability component: Principal amount $ 172,500 $ 172,500 Unamortized discount (37,077) (44,803) Unamortized issuance costs (2,911) (3,396) Net carrying amount $ 132,512 $ 124,301 Equity component, net of issuance costs $ 55,227 $ 55,227 The following table sets forth the interest expense recognized related to the Notes (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Coupon interest expense $ 1,132 $ 1,132 $ 3,396 $ 3,396 Amortization of debt discount 2,648 2,368 7,726 6,909 Amortization of debt issuance costs 171 134 485 377 Total interest expense related to the Notes $ 3,951 $ 3,634 $ 11,607 $ 10,682 Effective interest rate of the liability component 12.32 % 12.32 % 12.32 % 12.32 % The unamortized debt discount and debt issuance costs will be amortized over 35 months as of June 30, 2022. As of June 30, 2022, the total estimated fair value of the Notes was approximately $180.5 million which includes the equity component. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. The fair value of the Notes is considered a Level 2 measurement as they are not actively traded.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity The following tables present the changes in the components of stockholders’ equity (in thousands): Three Months Ended June 30, 2022 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at March 31, 2022 36,816 $ 6 $ 403,539 $ (1,502) $ (270,115) $ 131,928 Issuance of common stock upon exercise of stock options 9 — 106 — — 106 Issuance of common stock upon release of restricted stock units 215 — — — — — Issuance of common stock upon ESPP purchase — — — — — — Stock-based compensation — — 7,912 — — 7,912 Other comprehensive loss — — — (655) — (655) Net loss — — — — (6,218) (6,218) Balance at June 30, 2022 37,040 $ 6 $ 411,557 $ (2,157) $ (276,333) $ 133,073 Three Months Ended June 30, 2021 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at March 31, 2021 $ 35,567 $ 5 $ 365,876 $ (1,128) $ (241,912) $ 122,841 Issuance of common stock upon exercise of stock options 2 — 24 — — 24 Issuance of common stock upon release of restricted stock units 215 — — — — — Issuance of common stock upon ESPP purchase — — — — — — Stock-based compensation — — 6,363 — — 6,363 Other comprehensive loss — — — (103) — (103) Net loss — — — — (7,829) (7,829) Balance at June 30, 2021 35,784 $ 5 $ 372,263 $ (1,231) $ (249,741) $ 121,296 Nine Months Ended June 30, 2022 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2021 36,059 $ 5 $ 380,528 $ (1,205) $ (255,810) $ 123,518 Issuance of common stock upon exercise of stock options 17 — 186 — — 186 Issuance of common stock upon release of restricted stock units 856 1 — — — 1 Issuance of common stock upon ESPP purchase 108 — 2,321 — — 2,321 Stock-based compensation — — 28,522 — — 28,522 Other comprehensive income — — — (952) — (952) Net loss — — — — (20,523) (20,523) Balance at June 30, 2022 37,040 $ 6 $ 411,557 $ (2,157) $ (276,333) $ 133,073 Nine Months Ended June 30, 2021 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2020 34,821 $ 5 $ 351,952 $ (1,213) $ (226,073) $ 124,671 Issuance of common stock upon exercise of stock options 6 — 55 — — 55 Issuance of common stock upon release of restricted stock units 891 — — — — — Issuance of common stock upon ESPP purchase 66 — 2,251 — — 2,251 Stock-based compensation — — 18,005 — — 18,005 Other comprehensive loss — — — (18) — (18) Net loss — — — — (23,668) (23,668) Balance at June 30, 2021 35,784 $ 5 $ 372,263 $ (1,231) $ (249,741) $ 121,296 For the nine months ended June 30, 2022, additional paid-in capital included $5.4 million related to restricted stock unit (“RSU”) grants for the portion of the bonus recorded as stock-based compensation for the year ended September 30, 2021.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based Compensation As of June 30, 2022, the Company had approximately 2.2 million shares available for future stock awards under its equity plans and any additional releases resulting from an over-achievement relating to performance-based restricted stock units. The following table summarizes our RSU activity which includes performance-based RSUs under all equity plans for the nine months ended June 30, 2022: Restricted Weighted Balance at September 30, 2021 1,748 $ 30.54 Granted 1,597 32.25 Released (856) 28.43 Forfeited (246) 30.74 Balance at June 30, 2022 2,243 $ 32.54 Stock-based compensation recorded in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Cost of revenues Subscription $ 1,380 $ 1,175 $ 3,303 $ 2,544 Professional services 1,194 1,260 2,686 2,916 Total stock-based compensation in cost of revenues 2,574 2,435 5,989 5,460 Operating expenses Research and development 1,826 1,776 4,616 4,520 Sales and marketing 2,223 2,091 5,669 5,611 General and administrative 3,255 2,638 8,912 6,259 Total stock-based compensation in operating expenses 7,304 6,505 19,197 16,390 Total stock-based compensation $ 9,878 $ 8,940 $ 25,186 $ 21,850 For the three and nine months ended June 30, 2022, the total stock-based compensation included $2.0 million and $2.4 million related to bonus expense, respectively, which was recorded in the accrued employee compensation line item in the Condensed Consolidated Balance Sheets. For the three and nine months ended June 30, 2021, the total stock-based compensation included $2.6 million and $3.8 million related to bonus expense, respectively, which was recorded in the accrued employee compensation line item in the Condensed Consolidated Balance Sheets.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded income tax provisions of $0.6 million and $1.3 million, representing effective income tax rates of (10.9)% and (7.0)% for the three and nine months ended June 30, 2022, respectively, and $0.4 million and $0.8 million, representing effective income tax rates of (4.7)% and (3.7)% for the three and nine months ended June 30, 2021, respectively. The income tax provision for the three and nine months ended June 30, 2022 was primarily related to foreign taxes on the Company’s profitable foreign operations, foreign withholding taxes on dividends, and deferred taxes on goodwill resulting from the Acquisition. The income tax provision for the three and nine months ended June 30, 2021 was primarily related to foreign taxes on the Company’s profitable foreign operations, foreign withholding taxes on dividends, and deferred taxes on goodwill resulting from the Acquisition. The Company elected to partially reinvest foreign earnings in certain foreign jurisdictions and expects to repatriate future foreign earnings in certain foreign jurisdictions over time. As a result, the Company will record a deferred tax liability for the additional non-U.S. taxes that are expected to be incurred related to the repatriation of these earnings. The Company elected to record GILTI as a period cost. The Company realized no benefit for current period losses due to maintaining a full valuation allowance against the U.S. net deferred tax assets.

Net Loss per Share

Net Loss per Share	9 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share data): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Numerator Basic and diluted Net loss attributable to common stockholders $ (6,218) $ (7,829) $ (20,523) $ (23,668) Denominator Basic and diluted Weighted average shares used in computing net loss per share attributable to common stockholders 36,935 35,679 36,591 35,305 Net loss per share attributable to common stockholders: Basic and diluted $ (0.17) $ (0.22) $ (0.56) $ (0.67) Potentially dilutive securities that were not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive are as follows (in thousands): As of June 30, 2022 2021 Stock options 8 28 Performance-based RSUs and RSUs 2,243 1,964 Shares issuable pursuant to the employee stock purchase plan 83 61 Convertible senior notes — 5,176 Since the Company expects to settle the principal amount of its Notes in cash and any excess in cash or shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $33.33 per share for the Notes.

Litigation and Contingencies

Litigation and Contingencies	9 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Litigation and Contingencies	Litigation and Contingencies Legal Proceedings The Company is not currently a party to any pending material legal proceedings. From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. Regardless of outcome, litigation can have an adverse impact on the Company due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm and other factors.

Geographic Information

Geographic Information	9 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Geographic Information	Geographic Information The Company has one operating segment with one business activity — developing and monetizing revenue management solutions. Revenues The Company disaggregates the revenues by geographic regions based on the bill to location of its customers. Revenues from customers outside of the United States were 5% of total revenues for the three and nine months ended June 30, 2022, respectively, and 6% and 7% of total revenues for the three and nine months ended June 30, 2021, respectively. Long-Lived Assets The following table sets forth the Company’s property and equipment, net, by geographic region (in thousands): As of June 30, 2022 As of September 30, 2021 United States $ 1,108 $ 1,374 India 476 533 Total property and equipment, net $ 1,584 $ 1,907

The Company and Significant A_2

The Company and Significant Accounting Policies and Estimates (Policies)	9 Months Ended
	Jun. 30, 2022
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 September 30, 2021 has been derived from the audited financial statements which are included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021 (“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 nine months ended June 30, 2022 are not necessarily indicative of the operating results for the full fiscal year 2022 or any future periods. The condensed consolidated financial statements include the accounts of Model N and its wholly owned subsidiaries. All 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, liability and equity allocation of convertible senior notes, 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.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Guidance In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance in the first quarter of fiscal year 2022 and it did not have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles (Topic 350), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard also requires customers to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance prospectively in the first quarter of fiscal year 2021 and it did not have a material impact on the condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. ASU 2016-13 requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company adopted this guidance in the first quarter of fiscal year 2021 and it did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. ASU 2020-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements. In October 2021, the FASB issued Accounting Standards Update No. 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022 on a prospective basis, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2021-08 to its consolidated financial statements. Significant Accounting Policies There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended September 30, 2021 included in the Annual Report on Form 10-K.
Revenues from Contract with Customer	Accounts Receivable Accounts receivable represents the Company’s 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 collectability of accounts receivable amounts. Contract Asset Contract asset represents revenue that has been recognized for satisfied performance obligations for which the Company does 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 the Company has the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. Capitalized Contract Acquisition Costs The Company capitalizes incremental costs incurred to acquire contracts with customers, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. The Company incurs these costs in connection with both initial contracts and renewals. Such costs for renewals are not considered commensurate with those for initial contracts given the substantive difference in commission rates in proportion to their respective contract values. 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. The Company determined the period of benefit by considering the Company’s 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 the condensed consolidated balance sheets. Amortization expense is included in sales and marketing expenses on the 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 related arrangement. These amounts are included in accrued liabilities on the condensed consolidated balance sheets. Customer deposits were immaterial as of June 30, 2022 and September 30, 2021. 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. Remaining Performance Obligations

Revenues from Contracts with _2

Revenues from Contracts with Customers (Tables)	9 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of customer contract balances	The following table reflects contract balances related to contracts with customers (in thousands): As of June 30, 2022 As of September 30, 2021 Accounts receivable, net $ 38,485 $ 43,185 Contract asset 4,212 4,891 Deferred revenue 54,548 57,796 Capitalized contract acquisition costs 12,247 9,539

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Schedule of operating lease cost and cash flow information	Cash flow information related to operating leases is as follows (in thousands): Nine Months Ended June 30, 2022 Nine Months Ended June 30, 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,800 $ 2,022 Operating lease ROU assets obtained in exchange for new operating lease liabilities — 19,289
Schedule of maturities of operating lease liabilities	Maturities of operating lease liabilities as of June 30, 2022 are as follows (in thousands): Fiscal Year Remaining fiscal 2022 $ 1,234 2023 5,099 2024 4,947 2025 4,587 2026 2,622 2027 and thereafter 575 Total operating lease payments 19,064 Less imputed interest 1,025 Total operating lease liabilities $ 18,039

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of fair value measured on recurring basis	The table below sets forth the Company’s marketable securities which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Reported as: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents As of June 30, 2022 Level 1: Money market funds $ 33,415 $ — $ — $ 33,415 $ 33,415 US Treasury securities 84,881 — (39) 84,842 84,842 Total $ 118,296 $ — $ (39) $ 118,257 $ 118,257 As of September 30, 2021 Level 1: Money market funds $ 40,755 $ — $ — $ 40,755 $ 40,755 US Treasury securities 84,997 — — 84,997 84,997 Total $ 125,752 $ — $ — $ 125,752 $ 125,752

Acquisition, Goodwill, and In_2

Acquisition, Goodwill, and Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of allocation of purchase price	The following table sets forth the allocation of the purchase price in connection with the Acquisition (in thousands): Acquisition Date Fair Value Accounts receivable $ 3,844 Property and equipment, net 511 Operating lease right-of-use assets 2,764 Goodwill 26,382 Intangible assets 28,210 Total assets acquired 61,711 Operating lease liabilities, current portion 656 Deferred revenue, current portion 1,549 Operating lease liabilities, less current portion 1,657 Total liabilities assumed 3,862 Total purchase price $ 57,849
Schedule of goodwill	The following table summarizes the changes in the carrying amount of goodwill (in thousands): Balance at September 30, 2021 $ 65,665 Additions — Balance at June 30, 2022 $ 65,665
Schedule of intangible assets	Intangible assets consisted of the following (in thousands): Estimated As of June 30, 2022 Useful Life Gross Carrying Accumulated Net Carrying Intangible Assets: Customer relationships 3-15 $ 52,109 $ (22,536) $ 29,573 Developed technology 5-6 22,333 (14,081) 8,252 Non-compete agreements 5 1,600 (480) 1,120 Trade name 3 850 (425) 425 Total $ 76,892 $ (37,522) $ 39,370 Estimated As of September 30, 2021 Useful Life Gross Carrying Accumulated Net Carrying Intangible Assets: Customer relationships 3-15 $ 52,109 $ (19,092) $ 33,017 Developed technology 5-6 22,333 (11,954) 10,379 Non-compete agreements 5 1,600 (240) 1,360 Trade name 3 850 (212) 638 Total $ 76,892 $ (31,498) $ 45,394
Schedule of estimated future amortization expenses	Estimated future amortization expense for the intangible assets as of June 30, 2022 is as follows (in thousands): Fiscal Year Remaining fiscal 2022 $ 2,008 2023 7,186 2024 6,691 2025 6,620 2026 6,069 2027 and thereafter 10,796 Total future amortization $ 39,370

Cash, Cash Equivalents, and F_2

Cash, Cash Equivalents, and Funds Held for Customers (Tables)	9 Months Ended
	Jun. 30, 2022
Cash and Cash Equivalents [Abstract]
Schedule of restrictions on cash and cash equivalents	The table below reconciles the cash and cash equivalents and funds held for customers as reported on the condensed consolidated balance sheets to the cash and cash equivalents on the condensed consolidated statements of cash flows (in thousands): As of June 30, 2022 As of September 30, 2021 Cash and cash equivalents $ 184,486 $ 165,467 Funds held for customers 174 316 Total cash and cash equivalents $ 184,660 $ 165,783

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	9 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of debt	The net carrying amounts of the liability and equity components for the Notes were as follows (in thousands): As of June 30, 2022 As of September 30, 2021 Liability component: Principal amount $ 172,500 $ 172,500 Unamortized discount (37,077) (44,803) Unamortized issuance costs (2,911) (3,396) Net carrying amount $ 132,512 $ 124,301 Equity component, net of issuance costs $ 55,227 $ 55,227 The following table sets forth the interest expense recognized related to the Notes (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Coupon interest expense $ 1,132 $ 1,132 $ 3,396 $ 3,396 Amortization of debt discount 2,648 2,368 7,726 6,909 Amortization of debt issuance costs 171 134 485 377 Total interest expense related to the Notes $ 3,951 $ 3,634 $ 11,607 $ 10,682 Effective interest rate of the liability component 12.32 % 12.32 % 12.32 % 12.32 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Schedule of stockholder's equity	The following tables present the changes in the components of stockholders’ equity (in thousands): Three Months Ended June 30, 2022 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at March 31, 2022 36,816 $ 6 $ 403,539 $ (1,502) $ (270,115) $ 131,928 Issuance of common stock upon exercise of stock options 9 — 106 — — 106 Issuance of common stock upon release of restricted stock units 215 — — — — — Issuance of common stock upon ESPP purchase — — — — — — Stock-based compensation — — 7,912 — — 7,912 Other comprehensive loss — — — (655) — (655) Net loss — — — — (6,218) (6,218) Balance at June 30, 2022 37,040 $ 6 $ 411,557 $ (2,157) $ (276,333) $ 133,073 Three Months Ended June 30, 2021 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at March 31, 2021 $ 35,567 $ 5 $ 365,876 $ (1,128) $ (241,912) $ 122,841 Issuance of common stock upon exercise of stock options 2 — 24 — — 24 Issuance of common stock upon release of restricted stock units 215 — — — — — Issuance of common stock upon ESPP purchase — — — — — — Stock-based compensation — — 6,363 — — 6,363 Other comprehensive loss — — — (103) — (103) Net loss — — — — (7,829) (7,829) Balance at June 30, 2021 35,784 $ 5 $ 372,263 $ (1,231) $ (249,741) $ 121,296 Nine Months Ended June 30, 2022 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2021 36,059 $ 5 $ 380,528 $ (1,205) $ (255,810) $ 123,518 Issuance of common stock upon exercise of stock options 17 — 186 — — 186 Issuance of common stock upon release of restricted stock units 856 1 — — — 1 Issuance of common stock upon ESPP purchase 108 — 2,321 — — 2,321 Stock-based compensation — — 28,522 — — 28,522 Other comprehensive income — — — (952) — (952) Net loss — — — — (20,523) (20,523) Balance at June 30, 2022 37,040 $ 6 $ 411,557 $ (2,157) $ (276,333) $ 133,073 Nine Months Ended June 30, 2021 Common Stock Additional Accumulated Accumulated Deficit Total Shares Amount Balance at September 30, 2020 34,821 $ 5 $ 351,952 $ (1,213) $ (226,073) $ 124,671 Issuance of common stock upon exercise of stock options 6 — 55 — — 55 Issuance of common stock upon release of restricted stock units 891 — — — — — Issuance of common stock upon ESPP purchase 66 — 2,251 — — 2,251 Stock-based compensation — — 18,005 — — 18,005 Other comprehensive loss — — — (18) — (18) Net loss — — — — (23,668) (23,668) Balance at June 30, 2021 35,784 $ 5 $ 372,263 $ (1,231) $ (249,741) $ 121,296

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of restricted stock unit activity (including performance based restricted stock units) under all equity award plans	The following table summarizes our RSU activity which includes performance-based RSUs under all equity plans for the nine months ended June 30, 2022: Restricted Weighted Balance at September 30, 2021 1,748 $ 30.54 Granted 1,597 32.25 Released (856) 28.43 Forfeited (246) 30.74 Balance at June 30, 2022 2,243 $ 32.54
Schedule of stock-based compensation	Stock-based compensation recorded in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Cost of revenues Subscription $ 1,380 $ 1,175 $ 3,303 $ 2,544 Professional services 1,194 1,260 2,686 2,916 Total stock-based compensation in cost of revenues 2,574 2,435 5,989 5,460 Operating expenses Research and development 1,826 1,776 4,616 4,520 Sales and marketing 2,223 2,091 5,669 5,611 General and administrative 3,255 2,638 8,912 6,259 Total stock-based compensation in operating expenses 7,304 6,505 19,197 16,390 Total stock-based compensation $ 9,878 $ 8,940 $ 25,186 $ 21,850

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Computation of basic and diluted net loss per share	The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share data): Three Months Ended June 30, Nine Months Ended June 30, 2022 2021 2022 2021 Numerator Basic and diluted Net loss attributable to common stockholders $ (6,218) $ (7,829) $ (20,523) $ (23,668) Denominator Basic and diluted Weighted average shares used in computing net loss per share attributable to common stockholders 36,935 35,679 36,591 35,305 Net loss per share attributable to common stockholders: Basic and diluted $ (0.17) $ (0.22) $ (0.56) $ (0.67)
Summary of weighted average shares of common stock equivalents excluded from computation of diluted net loss per share attributable to common stockholders	Potentially dilutive securities that were not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive are as follows (in thousands): As of June 30, 2022 2021 Stock options 8 28 Performance-based RSUs and RSUs 2,243 1,964 Shares issuable pursuant to the employee stock purchase plan 83 61 Convertible senior notes — 5,176

Geographic Information (Tables)

Geographic Information (Tables)	9 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Schedule of company's property and equipment, net by geographic region	The following table sets forth the Company’s property and equipment, net, by geographic region (in thousands): As of June 30, 2022 As of September 30, 2021 United States $ 1,108 $ 1,374 India 476 533 Total property and equipment, net $ 1,584 $ 1,907

Revenues from Contracts with _3

Revenues from Contracts with Customers - Customer Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 38,485	$ 43,185
Contract asset	4,212	4,891
Deferred revenue	54,548	57,796
Capitalized contract acquisition costs	$ 12,247	$ 9,539

Revenues from Contracts with _4

Revenues from Contracts with Customers - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized that was included in deferred revenue at beginning of period	$ 27,400,000	$ 24,500,000	$ 51,500,000	$ 45,300,000
Amortized over expected customer life (in years)	5 years		5 years
Capitalized contract acquisition costs, current portion	$ 4,100,000		$ 4,100,000		$ 3,300,000
Capitalized contract acquisition costs, non-current portion	8,100,000		8,100,000		$ 6,300,000
Amortization of capitalized contract acquisition costs	1,100,000	800,000	3,152,000	2,223,000
Impairment loss related to contract balances	$ 0	$ 0	$ 0	$ 0

Revenues from Contracts with _5

Revenues from Contracts with Customers - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01 $ in Millions	Jun. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Performance obligations not satisfied or partially satisfied	$ 310.1
Remaining performance obligation, percentage	41%
Remaining performance obligation, expected timing of satisfaction (in months)	12 months

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lessee, Lease, Description
Operating lease cost for remaining term	$ 1.4	$ 1.4	$ 4.4	$ 3.3
Weighted average remaining lease term (in years)	3 years 9 months 18 days		3 years 9 months 18 days
Weighted average discount rate percent	2.90%		2.90%
Minimum
Lessee, Lease, Description
Noncancelable operating leases term (in years)	3 years		3 years
Maximum
Lessee, Lease, Description
Noncancelable operating leases term (in years)	11 years		11 years

Leases - Cash Flow Information

Leases - Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 3,800	$ 2,022
Operating lease ROU assets obtained in exchange for new operating lease liabilities	$ 0	$ 19,289

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Fiscal Year
Remaining fiscal 2022	$ 1,234
2023	5,099
2024	4,947
2025	4,587
2026	2,622
2027 and thereafter	575
Total operating lease payments	19,064
Less imputed interest	1,025
Total operating lease liabilities	$ 18,039

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Details) - Level 1 - Fair Value Measurement Recurring - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Amortized Cost	$ 118,296	$ 125,752
Unrealized Gains	0	0
Unrealized Losses	(39)	0
Fair Value	118,257	125,752
Cash and Cash Equivalents	118,257	125,752
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Amortized Cost	33,415	40,755
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	33,415	40,755
Cash and Cash Equivalents	33,415	40,755
US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Amortized Cost	84,881	84,997
Unrealized Gains	0	0
Unrealized Losses	(39)	0
Fair Value	84,842	84,997
Cash and Cash Equivalents	$ 84,842	$ 84,997

Acquisition, Goodwill, and In_3

Acquisition, Goodwill, and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended		12 Months Ended
	Dec. 31, 2020	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2021
Business Acquisition
Amortization expense of intangible assets		$ 2,000	$ 2,000		$ 6,000	$ 5,200
Non-compete agreements
Business Acquisition
Intangible assets, estimated useful lives					5 years		5 years
Trade name
Business Acquisition
Intangible assets, estimated useful lives					3 years		3 years
Acquisition
Business Acquisition
Base purchase price	$ 60,000
Acquisition related cost							$ 2,500
Total purchase consideration	57,800
Payments for working capital adjustments	2,200			$ 2,100
Intangible assets	$ 28,210			28,210
Intangible assets, weighted-average estimated useful lives	10 years 9 months 18 days
Acquisition | Scenario, Plan
Business Acquisition
Payments for working capital adjustments				100
Acquisition | Customer relationships
Business Acquisition
Intangible assets	$ 15,500			15,500
Intangible assets, estimated useful lives	15 years
Acquisition | Developed technology
Business Acquisition
Intangible assets	$ 10,200			10,200
Intangible assets, estimated useful lives	6 years
Acquisition | Non-compete agreements
Business Acquisition
Intangible assets	$ 1,600			1,600
Intangible assets, estimated useful lives	5 years
Acquisition | Trade name
Business Acquisition
Intangible assets	$ 900			$ 900
Intangible assets, estimated useful lives	3 years

Acquisition, Goodwill, and In_4

Acquisition, Goodwill, and Intangible Assets - Schedule of allocation of purchase price (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition
Goodwill	$ 65,665	$ 65,665
Acquisition
Business Acquisition
Accounts receivable			$ 3,844
Property and equipment, net			511
Operating lease right-of-use assets			2,764
Goodwill			26,382
Intangible assets			28,210
Total assets acquired			61,711
Operating lease liabilities, current portion			656
Deferred revenue, current portion			1,549
Operating lease liabilities, less current portion			1,657
Total liabilities assumed			3,862
Total purchase price			$ 57,849

Acquisition, Goodwill, and In_5

Acquisition, Goodwill, and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill
Beginning balance	$ 65,665
Additions	0
Ending balance	$ 65,665

Acquisition, Goodwill, and In_6

Acquisition, Goodwill, and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2022	Sep. 30, 2021
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 76,892	$ 76,892
Accumulated Amortization	(37,522)	(31,498)
Net Carrying Amount	39,370	45,394
Customer relationships
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	52,109	52,109
Accumulated Amortization	(22,536)	(19,092)
Net Carrying Amount	$ 29,573	$ 33,017
Customer relationships | Minimum
Acquired Finite-Lived Intangible Assets
Estimated Useful Life (in Years)	3 years	3 years
Customer relationships | Maximum
Acquired Finite-Lived Intangible Assets
Estimated Useful Life (in Years)	15 years	15 years
Developed technology
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 22,333	$ 22,333
Accumulated Amortization	(14,081)	(11,954)
Net Carrying Amount	$ 8,252	$ 10,379
Developed technology | Minimum
Acquired Finite-Lived Intangible Assets
Estimated Useful Life (in Years)	5 years	5 years
Developed technology | Maximum
Acquired Finite-Lived Intangible Assets
Estimated Useful Life (in Years)	6 years	6 years
Non-compete agreements
Acquired Finite-Lived Intangible Assets
Estimated Useful Life (in Years)	5 years	5 years
Gross Carrying Amount	$ 1,600	$ 1,600
Accumulated Amortization	(480)	(240)
Net Carrying Amount	$ 1,120	$ 1,360
Trade name
Acquired Finite-Lived Intangible Assets
Estimated Useful Life (in Years)	3 years	3 years
Gross Carrying Amount	$ 850	$ 850
Accumulated Amortization	(425)	(212)
Net Carrying Amount	$ 425	$ 638

Acquisition, Goodwill, and In_7

Acquisition, Goodwill, and Intangible Assets - Schedule of Estimated Future Amortization Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Fiscal Year
Remaining fiscal 2022	$ 2,008
2023	7,186
2024	6,691
2025	6,620
2026	6,069
2027 and thereafter	10,796
Net Carrying Amount	$ 39,370	$ 45,394

Cash, Cash Equivalents, and F_3

Cash, Cash Equivalents, and Funds Held for Customers (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 184,486	$ 165,467
Funds held for customers	174	316
Total cash and cash equivalents	$ 184,660	$ 165,783

Derivative Instruments and He_2

Derivative Instruments and Hedging (Details) - Cash Flow Hedging - Foreign Currency Exchange Contracts - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2021
Derivative
Foreign exchange contract terms	12 months
Notional amount	$ 9.7	$ 6.8

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details)	1 Months Ended	9 Months Ended
	May 31, 2020 USD ($) d $ / shares	Jun. 30, 2022 USD ($) $ / shares
Debt Instrument
Closing trading price (usd per share) | $ / shares		$ 100
Convertible Debt | Notes
Debt Instrument
Aggregate principal amount	$ 172,500,000
Debt instrument, interest rate (percent)	2.625%
Purchase option value	$ 22,500,000
Proceeds from issuance of debt	166,400,000
Debt issuance cost	$ 6,100,000
Conversion rate	0.0300044
Initial conversion price (usd per share) | $ / shares	$ 33.33	$ 33.33
Common stock for trading days | d	20
Consecutive trading days | d	30
Conversion threshold for trigger price (percent)	130%
Measurement period (days)	5 days
Minimum percentage of conversion price in the event of trigger event (percent)	98%
Redemption price (percent)	100%
Sinking fund	$ 0
Carrying amount of equity component	$ 57,200,000
Equity portion of debt issuance cost		$ 2,000,000
Amortized over period		35 months
Convertible Debt | Maximum | Notes
Debt Instrument
Conversion rate	0.0382555
Convertible Debt | Estimate of Fair Value Measurement | Notes
Debt Instrument
Carrying amount of the liability component		$ 115,300,000
Estimated fair value		180,500,000
Convertible Debt | Interest Expense | Notes
Debt Instrument
Debt issuance cost		$ 4,100,000
Convertible Debt | On or After June 6, 2023 | Notes
Debt Instrument
Redemption price (percent)	100%
Term Loan | Credit Agreement
Debt Instrument
Repayments of debt	$ 40,000,000

Convertible Senior Notes - Liab

Convertible Senior Notes - Liability and Equity Components (Details) - Convertible Debt - Notes - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Liability component:
Principal amount	$ 172,500	$ 172,500
Unamortized discount	(37,077)	(44,803)
Unamortized issuance costs	(2,911)	(3,396)
Net carrying amount	132,512	124,301
Equity component, net of issuance costs	$ 55,227	$ 55,227

Convertible Senior Notes - Inte

Convertible Senior Notes - Interest Expense Recognized (Details) - Convertible Debt - Notes - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Instrument
Coupon interest expense	$ 1,132	$ 1,132	$ 3,396	$ 3,396
Amortization of debt discount	2,648	2,368	7,726	6,909
Amortization of debt issuance costs	171	134	485	377
Total interest expense related to the Notes	$ 3,951	$ 3,634	$ 11,607	$ 10,682
Effective interest rate of the liability component	12.32%	12.32%	12.32%	12.32%

Stockholders' Equity - Componen

Stockholders' Equity - Component of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 131,928	$ 122,841	$ 123,518	$ 124,671
Balance at beginning of period (in shares)			36,059,000
Issuance of common stock upon exercise of stock options	106	24	$ 186	55
Issuance of common stock upon release of restricted stock units			1
Issuance of common stock upon ESPP purchase			2,321	2,251
Stock-based compensation	7,912	6,363	28,522	18,005
Other comprehensive income (loss)	(655)	(103)	(952)	(18)
Net loss	(6,218)	(7,829)	(20,523)	(23,668)
Balance at end of period	$ 133,073	121,296	$ 133,073	121,296
Balance at end of period (in shares)	37,040,000		37,040,000
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 6	$ 5	$ 5	$ 5
Balance at beginning of period (in shares)	36,816,000	35,567,000	36,059,000	34,821,000
Issuance of common stock upon exercise of stock options (in shares)	9,000	2,000	17,000	6,000
Issuance of common stock upon release of restricted stock units			$ 1
Issuance of common stock upon release of restricted stock units (in shares)	215,000	215,000	856,000	891,000
Issuance of common stock upon ESPP purchase (in shares)			108,000	66,000
Balance at end of period	$ 6	$ 5	$ 6	$ 5
Balance at end of period (in shares)	37,040,000	35,784,000	37,040,000	35,784,000
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	$ 403,539	$ 365,876	$ 380,528	$ 351,952
Issuance of common stock upon exercise of stock options	106	24	186	55
Issuance of common stock upon ESPP purchase			2,321	2,251
Stock-based compensation	7,912	6,363	28,522	18,005
Balance at end of period	411,557	372,263	411,557	372,263
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(1,502)	(1,128)	(1,205)	(1,213)
Other comprehensive income (loss)	(655)	(103)	(952)	(18)
Balance at end of period	(2,157)	(1,231)	(2,157)	(1,231)
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period	(270,115)	(241,912)	(255,810)	(226,073)
Net loss	(6,218)	(7,829)	(20,523)	(23,668)
Balance at end of period	$ (276,333)	$ (249,741)	$ (276,333)	$ (249,741)

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ in Millions	9 Months Ended
	Jun. 30, 2022 USD ($)
Equity [Abstract]
Additional paid in capital, restricted stock unit grants, portion of bonus recorded as stock-based compensation	$ 5.4

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-Based Payment Arrangement [Abstract]
Bonus expense	$ 2	$ 2.6	$ 2.4	$ 3.8

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Awards) Under All Equity Award Plans (Details) shares in Thousands	9 Months Ended
	Jun. 30, 2022 $ / shares shares
Restricted Stock Units Outstanding
Balance at end of period (in shares)	2,200
Restricted Stock Units
Restricted Stock Units Outstanding
Balance at beginning of period (in shares)	1,748
Granted (in shares)	1,597
Released (in shares)	(856)
Forfeited (in shares)	(246)
Balance at end of period (in shares)	2,243
Weighted Average Grant Date Fair Value
Balance at beginning of period (in dollars per share) | $ / shares	$ 30.54
Granted (in dollars per share) | $ / shares	32.25
Released (in dollars per share) | $ / shares	28.43
Forfeited (in dollars per share) | $ / shares	30.74
Balance at end of period (in dollars per share) | $ / shares	$ 32.54

Stock-based Compensation - Su_2

Stock-based Compensation - Summary of Allocated Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	$ 9,878	$ 8,940	$ 25,186	$ 21,850
Total stock-based compensation in cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	2,574	2,435	5,989	5,460
Total stock-based compensation in operating expenses
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	7,304	6,505	19,197	16,390
Research and development
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	1,826	1,776	4,616	4,520
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	2,223	2,091	5,669	5,611
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	3,255	2,638	8,912	6,259
Subscription | Total stock-based compensation in cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	1,380	1,175	3,303	2,544
Professional services | Total stock-based compensation in cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	$ 1,194	$ 1,260	$ 2,686	$ 2,916

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax provision	$ 611,000	$ 352,000	$ 1,345,000	$ 840,000
Effective income tax expense, rate	10.90%	4.70%	7%	3.70%
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 (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator
Net loss attributable to common stockholders, basic	$ (6,218)	$ (7,829)	$ (20,523)	$ (23,668)
Net loss attributable to common stockholders, diluted	$ (6,218)	$ (7,829)	$ (20,523)	$ (23,668)
Denominator
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	36,935	35,679	36,591	35,305
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	36,935	35,679	36,591	35,305
Net loss per share attributable to common stockholders:
Basic (usd per share)	$ (0.17)	$ (0.22)	$ (0.56)	$ (0.67)
Diluted (usd per share)	$ (0.17)	$ (0.22)	$ (0.56)	$ (0.67)

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 (Details) - shares shares in Thousands	9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share amount (in shares)	8	28
Performance-based RSUs and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share amount (in shares)	2,243	1,964
Shares issuable pursuant to the employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share amount (in shares)	83	61
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share amount (in shares)	0	5,176

Net Loss per Share - Narrative

Net Loss per Share - Narrative (Details) - $ / shares	Jun. 30, 2022	May 31, 2020
Notes | Convertible Debt
Antidilutive Securities Excluded from Computation of Earnings Per Share
Conversion price (usd per share)	$ 33.33	$ 33.33

Geographic Information - Narrat

Geographic Information - Narrative (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022 business segment	Jun. 30, 2021
Segment Reporting Information
Number of operating segment | segment			1
Number of business activity | business			1
Outside of United States | Revenue | Geographic concentration risk
Segment Reporting Information
Revenues from customers outside United States	5%	6%	5%	7%

Geographic Information - Compan

Geographic Information - Company's Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Sep. 30, 2021
Geographic Areas, Long-Lived Assets
Total property and equipment, net	$ 1,584	$ 1,907
United States
Geographic Areas, Long-Lived Assets
Total property and equipment, net	1,108	1,374
India
Geographic Areas, Long-Lived Assets
Total property and equipment, net	$ 476	$ 533