Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Jan. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'MODN | ' |
Entity Registrant Name | 'MODEL N, INC. | ' |
Entity Central Index Key | '0001118417 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 24,242,586 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $92,789 | $103,350 |
Short-term investments | 9,998 | ' |
Accounts receivable, net | 16,692 | 16,140 |
Deferred cost of implementation services, current portion | 494 | 491 |
Prepaid expenses | 2,207 | 3,225 |
Other current assets | 446 | 342 |
Total current assets | 122,626 | 123,548 |
Property and equipment, net | 7,089 | 7,871 |
Goodwill | 1,509 | 1,509 |
Intangible assets, net | 835 | 918 |
Other assets | 582 | 626 |
Total assets | 132,641 | 134,472 |
Current Liabilities: | ' | ' |
Accounts payable | 153 | 468 |
Accrued employee compensation | 13,384 | 13,941 |
Accrued liabilities | 2,546 | 2,848 |
Deferred revenue, current portion | 18,549 | 19,131 |
Capital lease obligations, current portion | 191 | 318 |
Total current liabilities | 34,823 | 36,706 |
Deferred revenue, net of current portion | 3,216 | 3,507 |
Other long-term liabilities | 661 | 641 |
Total liabilities | 38,700 | 40,854 |
Commitments and contingencies | ' | ' |
Stockholders' Equity: | ' | ' |
Common Stock, $0.00015 par value; 200,000 shares authorized; 23,849 and 22,999 shares issued and outstanding as of December 31, 2013 and September 30, 2013, respectively | 4 | 3 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized, no shares issued and outstanding | ' | ' |
Additional paid-in capital | 159,453 | 156,032 |
Accumulated other comprehensive loss | -278 | -302 |
Accumulated deficit | -65,238 | -62,115 |
Total stockholders' equity | 93,941 | 93,618 |
Total liabilities and stockholders' equity | $132,641 | $134,472 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 200,000 | 200,000 |
Common Stock, shares issued | 23,849 | 22,999 |
Common Stock, shares outstanding | 23,849 | 22,999 |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 5,000 | 5,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | ' | ' |
License and implementation | $9,530 | $12,462 |
SaaS and maintenance | 12,029 | 9,879 |
Total revenues | 21,559 | 22,341 |
Cost of Revenues: | ' | ' |
License and implementation | 4,599 | 5,560 |
SaaS and maintenance | 5,346 | 4,523 |
Total cost of revenues | 9,945 | 10,083 |
Gross profit | 11,614 | 12,258 |
Operating Expenses: | ' | ' |
Research and development | 4,867 | 4,119 |
Sales and marketing | 5,293 | 5,336 |
General and administrative | 4,398 | 3,877 |
Restructuring | 69 | ' |
Total operating expenses | 14,627 | 13,332 |
Loss from operations | -3,013 | -1,074 |
Interest (income) expense, net | -4 | 126 |
Other expenses, net | 31 | 52 |
Loss before income taxes | -3,040 | -1,252 |
Provision for income taxes | 83 | 61 |
Net loss | ($3,123) | ($1,313) |
Net loss per share attributable to common stockholders: | ' | ' |
Basic and diluted | ($0.13) | ($0.16) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | ' | ' |
Basic and diluted | 23,453 | 8,028 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Net loss | ($3,123) | ($1,313) |
Foreign currency translation, net of taxes | 25 | 18 |
Unrealized loss on marketable securities, net of tax | -1 | ' |
Other comprehensive income, net | 24 | 18 |
Total comprehensive loss | ($3,099) | ($1,295) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities: | ' | ' |
Net loss | ($3,123) | ($1,313) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' |
Depreciation and amortization | 875 | 442 |
Amortization of intangible assets | 83 | 81 |
Stock-based compensation | 1,972 | 557 |
Amortization of debt discount | ' | 10 |
Changes in fair value of preferred stock warrant liability | ' | -14 |
Provision for doubtful accounts | ' | 8 |
Deferred income taxes | 10 | 25 |
Changes in assets and liabilities | ' | ' |
Accounts receivable | -552 | -3,480 |
Prepaid expenses and other current assets | 1,096 | -1,340 |
Deferred cost of implementation services | 11 | 17 |
Accounts payable | -349 | 1,169 |
Accrued employee compensation | -665 | -25 |
Other accrued and long-term liabilities | -285 | 2,036 |
Deferred revenue | -873 | 711 |
Net cash used in operating activities | -1,800 | -1,116 |
Cash Flows From Investing Activities | ' | ' |
Purchases of property and equipment | -81 | -164 |
Capitalization of software development costs | ' | -891 |
Purchase of short-term investments | -9,998 | -63 |
Net cash used in investing activities | -10,079 | -1,118 |
Cash Flows From Financing Activities | ' | ' |
Proceeds from issuance of common stock upon exercise of stock options | 1,450 | 90 |
Payments for deferred offering costs | 0 | -215 |
Principal payments on capital lease obligations | -127 | -140 |
Principal payments on loan | ' | -625 |
Net cash provided by (used in) financing activities | 1,323 | -890 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -11 |
Net decrease in cash and cash equivalents | -10,561 | -3,135 |
Cash and cash equivalents | ' | ' |
Beginning of the period | 103,350 | 15,768 |
End of the period | 92,789 | 12,633 |
Noncash Investing and Financing Activities: | ' | ' |
Capitalized stock options in software development costs | ' | 12 |
Deferred offering costs not yet paid | $6 | $1,918 |
The_Company_and_Significant_Ac
The Company and Significant Accounting Policies and Estimates | 3 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
The Company and Significant Accounting Policies and Estimates | ' | |
1 | The Company and Significant Accounting Policies and Estimates | |
Model N, Inc. (Company) was incorporated in Delaware on December 14, 1999. The Company is a provider of revenue management solutions for the life science and technology industries. The Company’s solutions 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 Redwood City, California, with additional offices in the United States, India, the United Kingdom and Switzerland. | ||
Fiscal Year | ||
The Company’s fiscal year ends on September 30. References to fiscal year 2014, for example, refer to the fiscal year ending September 30, 2014. | ||
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 condensed consolidated balance sheet data as of September 30, 2013 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2013. 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, 2013 included in the Annual Report on Form 10-K. | ||
In the opinion of management, all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheet as of December 31, 2013; the condensed consolidated statements of operations for the three months ended December 31, 2013 and 2012; the condensed consolidated statements of comprehensive loss for the three months ended December 31, 2013 and 2012; and the condensed consolidated statements of cash flows for the three months ended December 31, 2013 and 2012; have been made. The results of operations for the three months ended December 31, 2013 are not necessarily indicative of the operating results for the full fiscal year 2014 or any future periods. | ||
The Company’s condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. | ||
Use of Estimates | ||
The preparation of the accompanying 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, software development costs and valuation of 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 | ||
Revenues are comprised of license and implementation revenues and Software as a Service (SaaS) and maintenance revenues. | ||
License and Implementation | ||
License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ usability of its on-premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on-premise solutions and related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured by the hours expended on the implementation of the Company’s software solutions during the reporting period as a percentage of the total hours estimated to be necessary to complete the implementation of the Company’s software solutions. | ||
SaaS and Maintenance | ||
SaaS and maintenance revenues primarily include subscription and related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on-premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to application support, training and customer-reimbursed expenses. | ||
SaaS arrangements include multiple elements, comprised of subscription fees and related implementation services. In SaaS arrangements where implementation services are complex and do not have a stand-alone value to the customers, the Company considers the entire arrangement consideration, including subscription fees and related implementation services, as a single unit of accounting in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2009-13, Revenue Recognition (Accounting Standards Codification (ASC) Topic 605)—Multiple-Deliverable Revenue Arrangements. In such arrangements, the Company recognizes SaaS revenues ratably beginning the day the customer is provided access to the subscription service through the longer of the initial contractual period or term of the expected customer relationship. | ||
In SaaS arrangements where subscription fees and implementation services have a standalone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company establishes the BESP for each element by considering company-specific factors such as existing pricing and discounting. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. The total arrangement fee for a multiple element arrangement is allocated based on the relative BESP of each element. | ||
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. Application support revenues include supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenues, and application support revenues are recognized ratably over the period in which the services are provided. The revenues from training and customer-reimbursed expenses are recognized as the Company delivers these services. | ||
Revenue Recognition | ||
The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is probable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. | ||
For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. | ||
The Company does not offer any contractual rights of return, rebates or price protection. The Company’s implementation projects generally have a term ranging from a few months to three years and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
2 | Fair Value of Financial Instruments | ||||||||||||||||
The financial instruments of the Company consist primarily of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and certain accrued liabilities. The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, 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. | |||||||||||||||||
Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. | |||||||||||||||||
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 a three-level valuation hierarchy for disclosures as follows: | |||||||||||||||||
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 the Company to develop its own models and involves some level of management estimation and judgment. | |||||||||||||||||
The Company’s Level 1 assets consist of U.S. treasury bills and money market funds. 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 the Company’s cash equivalents and short-term investments as of December 31, 2013 and September 30, 2013, 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 | ||||||||||||||
(in thousands) | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 85,490 | $ | — | $ | — | $ | 85,490 | |||||||||
Short-term investments: | |||||||||||||||||
U.S. treasury bills | $ | 9,998 | $ | — | $ | — | $ | 9,998 | |||||||||
As of September 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 95,508 | $ | — | $ | — | $ | 95,508 | |||||||||
Cash equivalents in the above table exclude $7.3 million and $7.8 million held in cash by the Company in its bank accounts as of December 31, 2013 and September 30, 2013, respectively. | |||||||||||||||||
There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the three months ended December 31, 2013. | |||||||||||||||||
The following tables show the Company’s available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value recorded as cash equivalents as of December 31, 2013: | |||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Treasury bills | $ | 85,490 | $ | — | $ | — | $ | 85,490 | |||||||||
Short-term investments: | |||||||||||||||||
Treasury bills | $ | 9,999 | $ | — | $ | (1 | ) | $ | 9,998 | ||||||||
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||||||||||
3 | Stock-based Compensation | ||||||||||||||||||||||||
Stock Plans | |||||||||||||||||||||||||
The Company’s board of directors (Board) adopted the 2013 Equity Incentive Plan (2013 Plan) in February 2013, and the stockholders approved the 2013 Plan in March 2013. The 2013 Plan became effective on March 18, 2013 and will terminate in February 2023. The 2013 Plan serves as the successor equity compensation plan to the 2010 Equity Incentive Plan (2010 Plan). The 2013 Plan was approved with a reserve of 8.0 million shares, which consists of 2.5 million shares of the Company’s common stock reserved for future issuance under the 2013 Plan and shares of common stock previously reserved but unissued under the 2010 Plan. In addition, any shares of common stock subject to outstanding awards under the 2010 Plan and 2000 Stock Plan (2000 Plan) that are issuable upon the exercise of options that expire without having been exercised in full, are forfeited or repurchased by us at the original purchase price or are used to pay the exercise price or withholding obligations related to any award will be available for future grant and issuance under the 2013 Plan. Additionally, the 2013 Plan provides for automatic increases in the number of shares available for issuance under it on October 1 of each of the first four calendar years during the term of the 2013 Plan by the lesser of 5% of the number of shares of common stock issued and outstanding on each September 30 immediately prior to the date of increase or the number determined by our board of directors. No further grants will be made under the 2010 Plan, and the balances under the 2010 Plan have been transferred to the 2013 Plan. The 2013 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, performance stock awards, restricted stock units and stock bonuses. Awards generally vest over three to four years and expire ten years from the date of grant. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
The 2013 Employee Stock Purchase Plan (ESPP) became effective on March 19, 2013. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value, as defined in the ESPP, subject to any plan limitations. Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. | |||||||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of the ESPP during the periods presented: | |||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Risk-free interest rate | 0.15 | % | — | ||||||||||||||||||||||
Dividend yield | — | — | |||||||||||||||||||||||
Volatility | 36 | % | — | ||||||||||||||||||||||
Expected term (in years) | 0.91 | — | |||||||||||||||||||||||
Restricted Stock Awards Issued to Certain Employees in Connection with the LeapFrogRx Acquisition | |||||||||||||||||||||||||
In January 2012, the Company issued 200,000 shares of common stock, to be vested based on future continued employment, to certain employees of LeapFrogRx in connection with the acquisition of LeapFrogRx. Of these shares, 36,818 shares were forfeited and 29,849 shares were subject to repurchase as of December 31, 2013. The total fair value on their respective vesting dates of restricted stock awards vested during the three months ended December 31, 2013 and 2012 was $0.1 million and $0.2 million, respectively. | |||||||||||||||||||||||||
Performance-based Restricted Stock Units | |||||||||||||||||||||||||
On December 6, 2013, the Compensation Committee of the Board approved initial grants of an aggregate of 280,000 performance-based restricted stock units to three of the Company’s senior officers, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares released could be 0% to 250% of the initial grant based on the Company’s total shareholder return (TSR) relative to the TSR of the Russell 3000 index (Index) over a three-year period. In any of the three years, no shares will be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the initial grant will be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the initial grant will be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest as to one-third on each annual anniversary of November 22, 2013, with a “catch-up” provision such that shares not earned in a prior year may be earned in a subsequent year subject to the Company’s TSR achieving a certain level relative to the Index and exceeding the prior year’s TSR. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. | |||||||||||||||||||||||||
The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. The Company used the Monte-Carlo simulation model to calculate the fair value of these awards on the grant date. The Monte-Carlo simulation model takes into account the same input assumptions as the Black-Scholes model; however, it also further incorporates into the fair value determination the possibility that the performance criteria may not be satisfied. | |||||||||||||||||||||||||
The grant date fair values of these awards were determined using the following assumptions: | |||||||||||||||||||||||||
Risk-free interest rate | 0.63 | % | |||||||||||||||||||||||
Dividend yield | — | ||||||||||||||||||||||||
Volatility | 39 | % | |||||||||||||||||||||||
Activities of Stock Options, Restricted Stock Units and Restricted Stock Awards | |||||||||||||||||||||||||
Outstanding Awards | |||||||||||||||||||||||||
Shares | Number of | Weighted | Number of | Weighted | Number of | ||||||||||||||||||||
Available | Stock | Average | Restricted | Average | Restricted | ||||||||||||||||||||
for Grant | Options | Exercise | Stock | Grant Date | Stock | ||||||||||||||||||||
Price | Units | Fair Value | Awards | ||||||||||||||||||||||
(in thousands, except exercise price) | |||||||||||||||||||||||||
Balance at September 30, 2013 | 2,928 | 3,868 | $ | 5.07 | 991 | $ | 15.68 | — | |||||||||||||||||
Increase in shares reserved | 1,150 | — | — | — | — | — | |||||||||||||||||||
Granted | (1,260 | ) | — | — | 1,260 | 9.9 | — | ||||||||||||||||||
Exercised/released | — | (850 | ) | 1.7 | — | — | — | ||||||||||||||||||
Forfeited | 217 | (62 | ) | 9.73 | (155 | ) | 3.45 | — | |||||||||||||||||
Expired | 32 | (32 | ) | 8.11 | — | — | — | ||||||||||||||||||
Balance at December 31, 2013 | 3,067 | 2,924 | $ | 5.92 | 2,096 | $ | 12.22 | — | |||||||||||||||||
Stock-based compensation expenses are as follows: | |||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Cost of services: | |||||||||||||||||||||||||
License and implementation | $ | 216 | $ | 40 | |||||||||||||||||||||
SaaS and maintenance | 225 | 74 | |||||||||||||||||||||||
Research and development | 262 | 54 | |||||||||||||||||||||||
Sales and marketing | 542 | 259 | |||||||||||||||||||||||
General and administrative | 727 | 130 | |||||||||||||||||||||||
Total stock-based compensation expenses | $ | 1,972 | $ | 557 | |||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Stock options | $ | 405 | $ | 382 | |||||||||||||||||||||
Restricted stock awards | 81 | 176 | |||||||||||||||||||||||
Restricted stock units | 1,005 | 11 | |||||||||||||||||||||||
ESPP | 481 | — | |||||||||||||||||||||||
Total stock-based compensation | 1,972 | 569 | |||||||||||||||||||||||
Less: Capitalized stock options | — | (12 | ) | ||||||||||||||||||||||
Total stock-based compensation expenses | $ | 1,972 | $ | 557 | |||||||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended | |
Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
4 | Income Taxes | |
The Company recorded an income tax expense of $83,000 and $61,000 for the three months ended December 31, 2013 and 2012, respectively, representing effective income tax rates of (3)% and (5)%, respectively. The Company’s effective income tax rate during these periods differs from the Company’s federal statutory rate of 34% primarily due to permanent differences for stock-based compensation and the impact of state income taxes and foreign tax rate differences. |
Net_Loss_per_Share
Net Loss per Share | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Loss per Share | ' | ||||||||
5 | Net Loss per Share | ||||||||
The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders during the periods presented: | |||||||||
Three Months Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands, except share and per | |||||||||
share data) | |||||||||
Numerator: | |||||||||
Net loss attributable to common stockholders – Basic and diluted | $ | (3,123 | ) | $ | (1,313 | ) | |||
Denominator: | |||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders – Basic and diluted | 23,452,646 | 8,028,375 | |||||||
Net loss per share attributable to common stockholders | |||||||||
Basic and diluted | $ | (0.13 | ) | $ | (0.16 | ) | |||
Since the Company was in a net loss position for periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. |
Geographic_Information
Geographic Information | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Geographic Information | ' | ||||||||
6 | Geographic Information | ||||||||
The Company has one operating segment with one business activity - developing and monetizing revenue management solutions. | |||||||||
Revenues from External Customers | |||||||||
Revenues from customers outside the United States were 10% and 9% of total revenues for the three months ended December 31, 2013 and 2012, respectively. | |||||||||
Long-Lived Assets | |||||||||
The following table sets forth the Company’s property and equipment, net by geographic region: | |||||||||
As | As | ||||||||
of December 31, 2013 | of September 30, 2013 | ||||||||
(in thousands) | |||||||||
United States | $ | 6,135 | $ | 6,811 | |||||
Other | 954 | 1,060 | |||||||
Total property and equipment, net | $ | 7,089 | $ | 7,871 | |||||
Restructuring
Restructuring | 3 Months Ended | ||||
Dec. 31, 2013 | |||||
Restructuring And Related Activities [Abstract] | ' | ||||
Restructuring | ' | ||||
7 | Restructuring | ||||
On September 30, 2013, the Company commenced a plan to align its workforce with the Company’s strategic initiatives. This restructuring plan was completed by December 31, 2013 and resulted in a reduction in the size of the company’s workforce, primarily in professional services. During the three months ended December 31, 2013, the Company recorded a workforce reduction restructuring charge of $0.1 million primarily related to employee separation packages, which included severance pay, benefits continuation and outplacement costs to be fully paid through March 31, 2014. | |||||
A roll-forward of the restructuring activity is summarized below: | |||||
Three Months Ended | |||||
December 31, 2013 | |||||
(in thousands) | |||||
Opening balance | $ | 1,182 | |||
Amounts accrued | 69 | ||||
Cash payments | (996 | ) | |||
Balance of accrual | $ | 255 | |||
Convertible_Preferred_Stock_Wa
Convertible Preferred Stock Warrant | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Convertible Preferred Stock Warrant | ' | ||||||||
8 | Convertible Preferred Stock Warrant | ||||||||
On October 19, 2010, in connection with a loan agreement, the Company issued a warrant to purchase 86,655 shares of the Company’s Series C Preferred Stock at an exercise price of $3.462 per share. The warrant is exercisable in whole or in part at any time on or before the expiration date of the 10-year anniversary from the issuance date. Upon the closing of the initial public offering (IPO), this warrant automatically converted into a warrant to purchase the same number of shares of common stock at the same exercise price per share. | |||||||||
Prior to the closing of the IPO, the Company re-measured the fair value of the preferred stock warrant at each balance sheet date. The fair value of the outstanding warrant was classified within non-current liabilities on the condensed consolidated balance sheets, and any changes in fair value were recognized as a component of other (income) expenses, net in the consolidated statements of operations. | |||||||||
Upon the closing of the IPO, the warrant was reclassified from liability to equity and the Company will no longer record any mark-to-market changes in the fair value of the warrant. The Company performed the final re-measurement of the warrant on March 25, 2013, the closing date of the IPO. In May 2013, the warrant was converted into 71,847 shares of common stock, net of the warrant price. | |||||||||
The fair value of the outstanding warrant was determined using the Black-Scholes-Merton option-pricing model. The fair value of the warrant was estimated using the following assumptions for the periods presented below. | |||||||||
Three Months Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | — | 1.25 | % | ||||||
Dividend yield | — | — | |||||||
Volatility | — | 48 | % | ||||||
Expected term (in years) | — | 7.8 | |||||||
The change in the fair value of the convertible preferred stock warrant liability is summarized below: | |||||||||
Three Months Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Opening balance | $ | — | $ | 748 | |||||
Decrease in fair value | — | (14 | ) | ||||||
Closing balance | $ | — | $ | 734 | |||||
The_Company_and_Significant_Ac1
The Company and Significant Accounting Policies and Estimates (Policies) | 3 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fiscal Year | ' |
Fiscal Year | |
The Company’s fiscal year ends on September 30. References to fiscal year 2014, for example, refer to the fiscal year ending September 30, 2014. | |
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 condensed consolidated balance sheet data as of September 30, 2013 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2013. 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, 2013 included in the Annual Report on Form 10-K. | |
In the opinion of management, all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheet as of December 31, 2013; the condensed consolidated statements of operations for the three months ended December 31, 2013 and 2012; the condensed consolidated statements of comprehensive loss for the three months ended December 31, 2013 and 2012; and the condensed consolidated statements of cash flows for the three months ended December 31, 2013 and 2012; have been made. The results of operations for the three months ended December 31, 2013 are not necessarily indicative of the operating results for the full fiscal year 2014 or any future periods. | |
The Company’s condensed consolidated financial statements include the accounts of the Company 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 the accompanying 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, software development costs and valuation of 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 | |
Revenues are comprised of license and implementation revenues and Software as a Service (SaaS) and maintenance revenues. | |
License and Implementation | |
License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ usability of its on-premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on-premise solutions and related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured by the hours expended on the implementation of the Company’s software solutions during the reporting period as a percentage of the total hours estimated to be necessary to complete the implementation of the Company’s software solutions. | |
SaaS and Maintenance | |
SaaS and maintenance revenues primarily include subscription and related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on-premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to application support, training and customer-reimbursed expenses. | |
SaaS arrangements include multiple elements, comprised of subscription fees and related implementation services. In SaaS arrangements where implementation services are complex and do not have a stand-alone value to the customers, the Company considers the entire arrangement consideration, including subscription fees and related implementation services, as a single unit of accounting in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2009-13, Revenue Recognition (Accounting Standards Codification (ASC) Topic 605)—Multiple-Deliverable Revenue Arrangements. In such arrangements, the Company recognizes SaaS revenues ratably beginning the day the customer is provided access to the subscription service through the longer of the initial contractual period or term of the expected customer relationship. | |
In SaaS arrangements where subscription fees and implementation services have a standalone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company establishes the BESP for each element by considering company-specific factors such as existing pricing and discounting. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. The total arrangement fee for a multiple element arrangement is allocated based on the relative BESP of each element. | |
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. Application support revenues include supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenues, and application support revenues are recognized ratably over the period in which the services are provided. The revenues from training and customer-reimbursed expenses are recognized as the Company delivers these services. | |
Revenue Recognition | |
The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is probable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. | |
For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. | |
The Company does not offer any contractual rights of return, rebates or price protection. The Company’s implementation projects generally have a term ranging from a few months to three years and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. | |
Financial Instruments | ' |
The financial instruments of the Company consist primarily of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and certain accrued liabilities. The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, 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. | |
Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. | |
Fair Value Measurement | ' |
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 a three-level valuation hierarchy for disclosures as follows: | |
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 the Company to develop its own models and involves some level of management estimation and judgment. | |
Operating Segment | ' |
The Company has one operating segment with one business activity - developing and monetizing revenue management solutions. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value Measured on Recurring Basis | ' | ||||||||||||||||
The table below sets forth the Company’s cash equivalents and short-term investments as of December 31, 2013 and September 30, 2013, 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 | ||||||||||||||
(in thousands) | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 85,490 | $ | — | $ | — | $ | 85,490 | |||||||||
Short-term investments: | |||||||||||||||||
U.S. treasury bills | $ | 9,998 | $ | — | $ | — | $ | 9,998 | |||||||||
As of September 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
U.S. treasury bills | $ | 95,508 | $ | — | $ | — | $ | 95,508 | |||||||||
Schedule of Available-for-Sale Securities | ' | ||||||||||||||||
The following tables show the Company’s available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value recorded as cash equivalents as of December 31, 2013: | |||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Treasury bills | $ | 85,490 | $ | — | $ | — | $ | 85,490 | |||||||||
Short-term investments: | |||||||||||||||||
Treasury bills | $ | 9,999 | $ | — | $ | (1 | ) | $ | 9,998 | ||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Weighted-Average Assumptions used to Estimate Fair Value of ESPP | ' | ||||||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of the ESPP during the periods presented: | |||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Risk-free interest rate | 0.15 | % | — | ||||||||||||||||||||||
Dividend yield | — | — | |||||||||||||||||||||||
Volatility | 36 | % | — | ||||||||||||||||||||||
Expected term (in years) | 0.91 | — | |||||||||||||||||||||||
Summary of Grant Date Fair Value Assumptions | ' | ||||||||||||||||||||||||
The grant date fair values of these awards were determined using the following assumptions: | |||||||||||||||||||||||||
Risk-free interest rate | 0.63 | % | |||||||||||||||||||||||
Dividend yield | — | ||||||||||||||||||||||||
Volatility | 39 | % | |||||||||||||||||||||||
Summary of Stock Option, RSU and Restricted Stock Awards Activities | ' | ||||||||||||||||||||||||
Activities of Stock Options, Restricted Stock Units and Restricted Stock Awards | |||||||||||||||||||||||||
Outstanding Awards | |||||||||||||||||||||||||
Shares | Number of | Weighted | Number of | Weighted | Number of | ||||||||||||||||||||
Available | Stock | Average | Restricted | Average | Restricted | ||||||||||||||||||||
for Grant | Options | Exercise | Stock | Grant Date | Stock | ||||||||||||||||||||
Price | Units | Fair Value | Awards | ||||||||||||||||||||||
(in thousands, except exercise price) | |||||||||||||||||||||||||
Balance at September 30, 2013 | 2,928 | 3,868 | $ | 5.07 | 991 | $ | 15.68 | — | |||||||||||||||||
Increase in shares reserved | 1,150 | — | — | — | — | — | |||||||||||||||||||
Granted | (1,260 | ) | — | — | 1,260 | 9.9 | — | ||||||||||||||||||
Exercised/released | — | (850 | ) | 1.7 | — | — | — | ||||||||||||||||||
Forfeited | 217 | (62 | ) | 9.73 | (155 | ) | 3.45 | — | |||||||||||||||||
Expired | 32 | (32 | ) | 8.11 | — | — | — | ||||||||||||||||||
Balance at December 31, 2013 | 3,067 | 2,924 | $ | 5.92 | 2,096 | $ | 12.22 | — | |||||||||||||||||
Stock-based Compensation Expenses | ' | ||||||||||||||||||||||||
Stock-based compensation expenses are as follows: | |||||||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Cost of services: | |||||||||||||||||||||||||
License and implementation | $ | 216 | $ | 40 | |||||||||||||||||||||
SaaS and maintenance | 225 | 74 | |||||||||||||||||||||||
Research and development | 262 | 54 | |||||||||||||||||||||||
Sales and marketing | 542 | 259 | |||||||||||||||||||||||
General and administrative | 727 | 130 | |||||||||||||||||||||||
Total stock-based compensation expenses | $ | 1,972 | $ | 557 | |||||||||||||||||||||
Three Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Stock options | $ | 405 | $ | 382 | |||||||||||||||||||||
Restricted stock awards | 81 | 176 | |||||||||||||||||||||||
Restricted stock units | 1,005 | 11 | |||||||||||||||||||||||
ESPP | 481 | — | |||||||||||||||||||||||
Total stock-based compensation | 1,972 | 569 | |||||||||||||||||||||||
Less: Capitalized stock options | — | (12 | ) | ||||||||||||||||||||||
Total stock-based compensation expenses | $ | 1,972 | $ | 557 | |||||||||||||||||||||
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of Basic and Diluted Net Loss per Share | ' | ||||||||
The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders during the periods presented: | |||||||||
Three Months Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands, except share and per | |||||||||
share data) | |||||||||
Numerator: | |||||||||
Net loss attributable to common stockholders – Basic and diluted | $ | (3,123 | ) | $ | (1,313 | ) | |||
Denominator: | |||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders – Basic and diluted | 23,452,646 | 8,028,375 | |||||||
Net loss per share attributable to common stockholders | |||||||||
Basic and diluted | $ | (0.13 | ) | $ | (0.16 | ) | |||
Geographic_Information_Tables
Geographic Information (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Company's Property and Equipment, Net by Geographic Region | ' | ||||||||
The following table sets forth the Company’s property and equipment, net by geographic region: | |||||||||
As | As | ||||||||
of December 31, 2013 | of September 30, 2013 | ||||||||
(in thousands) | |||||||||
United States | $ | 6,135 | $ | 6,811 | |||||
Other | 954 | 1,060 | |||||||
Total property and equipment, net | $ | 7,089 | $ | 7,871 | |||||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | ||||
Dec. 31, 2013 | |||||
Restructuring And Related Activities [Abstract] | ' | ||||
Summary of Restructuring Activity Roll-forward | ' | ||||
A roll-forward of the restructuring activity is summarized below: | |||||
Three Months Ended | |||||
December 31, 2013 | |||||
(in thousands) | |||||
Opening balance | $ | 1,182 | |||
Amounts accrued | 69 | ||||
Cash payments | (996 | ) | |||
Balance of accrual | $ | 255 | |||
Convertible_Preferred_Stock_Wa1
Convertible Preferred Stock Warrant (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Fair Value of Warrant | ' | ||||||||
The fair value of the outstanding warrant was determined using the Black-Scholes-Merton option-pricing model. The fair value of the warrant was estimated using the following assumptions for the periods presented below. | |||||||||
Three Months Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | — | 1.25 | % | ||||||
Dividend yield | — | — | |||||||
Volatility | — | 48 | % | ||||||
Expected term (in years) | — | 7.8 | |||||||
Change in Fair Value of Convertible Preferred Stock Warrant Liability | ' | ||||||||
The change in the fair value of the convertible preferred stock warrant liability is summarized below: | |||||||||
Three Months Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Opening balance | $ | — | $ | 748 | |||||
Decrease in fair value | — | (14 | ) | ||||||
Closing balance | $ | — | $ | 734 | |||||
The_Company_and_Significant_Ac2
The Company and Significant Accounting Policies and Estimates - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Project implementation term range | 'Few months to three years |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) (U.S. treasury bills [Member], USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | $85,490 | ' |
Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 9,998 | ' |
Fair value, measurements, recurring [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 85,490 | 95,508 |
Fair value, measurements, recurring [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 9,998 | ' |
Fair value, measurements, recurring [Member] | Level 1 [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 85,490 | 95,508 |
Fair value, measurements, recurring [Member] | Level 1 [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | 9,998 | ' |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | ' | ' |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | ' | ' |
Fair value, measurements, recurring [Member] | Level 3 [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | ' | ' |
Fair value, measurements, recurring [Member] | Level 3 [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value assets on recurring basis | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Cash at bank | $7.30 | $7.80 |
Transfers of assets and liabilities measured at fair value between level 1, level 2 and level 3 | $0 | ' |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Schedule of Available-for-Sale Securities (Detail) (U.S. treasury bills [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Cash equivalents [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Adjusted Cost | $85,490 |
Unrealized Gains | ' |
Unrealized Losses | ' |
Fair Value | 85,490 |
Short-term investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Adjusted Cost | 9,999 |
Unrealized Gains | ' |
Unrealized Losses | -1 |
Fair Value | $9,998 |
Stockbased_Compensation_Additi
Stock-based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 06, 2013 | Dec. 06, 2013 | Dec. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
ESPP [Member] | Restricted stock awards [Member] | Restricted stock awards [Member] | Performance-based Restricted Stock Units [Member] | Performance-based Restricted Stock Units [Member] | Performance-based Restricted Stock Units [Member] | 2013 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | |||
Employees | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved stock reserve | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | 8,000,000 |
Additional shares authorized, percentage of common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' |
Awards, vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ' |
Awards, expiration period | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Discounted employee stock purchase plan percentage | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair market value percentage on employee stock purchase plan | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering periods for employee stock purchase plan | ' | ' | 'Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. | ' | ' | 'Ten-year term | ' | ' | ' | ' | ' | ' |
Common stock issued | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards, shares forfeited | 36,818 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of shares | ' | ' | ' | ' | 29,849 | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted stock awards vested | $0.10 | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units granted to senior officers | ' | ' | ' | ' | ' | 280,000 | ' | ' | ' | ' | ' | ' |
Number of senior officers | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Percentage of shares released under terms of grants | ' | ' | ' | ' | ' | ' | 0.00% | 250.00% | ' | ' | ' | ' |
Performance-based restricted stock units, description | ' | ' | ' | ' | ' | 'The Compensation Committee of the Board approved initial grants of an aggregate of 280,000 performance-based restricted stock units to three of the Companybs senior officers, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares released could be 0% to 250% of the initial grant based on the Companybs total shareholder return (TSR) relative to the TSR of the Russell 3000 index (Index) over a three-year period. In any of the three years, no shares will be released if the TSR of the Companybs common stock is below the 30th percentile relative to the Index; 100% of the initial grant will be released if the Companybs TSR is at the 50th percentile relative to the Index; and 250% of the initial grant will be released if the Companybs TSR is over the 90th percentile relative to the Index. These grants vest as to one-third on each annual anniversary of November 22, 2013, with a bcatch-upb provision such that shares not earned in a prior year may be earned in a subsequent year subject to the Companybs TSR achieving a certain level relative to the Index and exceeding the prior yearbs TSR. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardeebs termination of employment. | ' | ' | ' | ' | ' | ' |
Stockbased_Compensation_Weight
Stock-based Compensation - Weighted-Average Assumptions used to Estimate Fair Value of ESPP (Detail) (ESPP [Member]) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
ESPP [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | 0.15% | ' |
Dividend yield | ' | ' |
Volatility | 36.00% | ' |
Expected term (in years) | '10 months 28 days | ' |
Stockbased_Compensation_Summar
Stock-based Compensation - Summary of Grant Date Fair Value Assumptions (Detail) (Performance-based Restricted Stock Units [Member]) | 3 Months Ended |
Dec. 31, 2013 | |
Performance-based Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 0.63% |
Dividend yield | ' |
Volatility | 39.00% |
Stockbased_Compensation_Summar1
Stock-based Compensation - Summary of Stock Option, RSU and Restricted Stock Awards Activities (Detail) (USD $) | 3 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares Available for Grant, Beginning balance | 2,928,000 |
Shares Available for Grant, Increase in shares reserved | 1,150,000 |
Shares Available for Grant, Granted | -1,260,000 |
Shares Available for Grant, Exercised/released | ' |
Shares Available for Grant, Forfeited | 217,000 |
Shares Available for Grant, Expired | 32,000 |
Shares Available for Grant, Ending balance | 3,067,000 |
Number of Stock Options, Beginning balance | 3,868,000 |
Number of Stock Options, Granted | ' |
Number of Stock Options, Exercised/released | -850,000 |
Number of Stock Options, Forfeited | -62,000 |
Number of Stock Options, Expired | -32,000 |
Number of Stock Options, Ending balance | 2,924,000 |
Weighted Average Exercise Price, Beginning balance | $5.07 |
Weighted Average Exercise Price, Granted | ' |
Weighted Average Exercise Price, Exercised/released | $1.70 |
Weighted Average Exercise Price, Forfeited | $9.73 |
Weighted Average Exercise Price, Expired | $8.11 |
Weighted Average Exercise Price, Ending balance | $5.92 |
Weighted Average Grant Date Fair Value, Beginning balance | $15.68 |
Weighted Average Grant Date Fair Value, Granted | $9.90 |
Weighted Average Grant Date Fair Value, Exercised/released | ' |
Weighted Average Grant Date Fair Value, Forfeited | $3.45 |
Weighted Average Grant Date Fair Value, Expired | ' |
Weighted Average Grant Date Fair Value, Ending balance | $12.22 |
Restricted Stock Awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Restricted Stock, Beginning balance | ' |
Number of Restricted Stock, Granted | ' |
Number of Restricted Stock, Exercised/released | ' |
Number of Restricted Stock, Forfeited | ' |
Number of Restricted Stock, Expired | ' |
Number of Restricted Stock, Ending balance | ' |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Restricted Stock, Beginning balance | 991,000 |
Number of Restricted Stock, Granted | 1,260,000 |
Number of Restricted Stock, Exercised/released | ' |
Number of Restricted Stock, Forfeited | -155,000 |
Number of Restricted Stock, Expired | ' |
Number of Restricted Stock, Ending balance | 2,096,000 |
Stockbased_Compensation_Stockb
Stock-based Compensation - Stock-based Compensation Expenses (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | $1,972 | $569 |
Less: Stock options capitalized as software development cost | ' | -12 |
Total stock-based compensation | 1,972 | 557 |
Cost of services, License and implementation [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 216 | 40 |
Cost of services, SaaS and maintenance [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 225 | 74 |
Research and development [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 262 | 54 |
Sales and marketing [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 542 | 259 |
General and administrative [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 727 | 130 |
Stock options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 405 | 382 |
Restricted stock awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 81 | 176 |
Restricted stock units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | 1,005 | 11 |
ESPP [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total stock-based compensation | $481 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Income tax expense | $83 | $61 |
Effective income tax rates | -3.00% | -5.00% |
Effective income tax federal statutory rate | 34.00% | 34.00% |
Net_Loss_Per_Share_Computation
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | ' | ' |
Net loss attributable to common stockholders - Basic and diluted | ($3,123) | ($1,313) |
Denominator: | ' | ' |
Weighted average shares used in computing net loss per share attributable to common stockholders - Basic and diluted | 23,453 | 8,028 |
Basic and diluted | ($0.13) | ($0.16) |
Geographic_Information_Additio
Geographic Information - Additional Information (Detail) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | ||
Segment Reporting [Abstract] | ' | ' |
Number of operating segment | 1 | ' |
Revenues from customers outside United States | 10.00% | 9.00% |
Geographic_Information_Company
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $7,089 | $7,871 |
Operating Segments [Member] | United States [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | 6,135 | 6,811 |
Operating Segments [Member] | Other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $954 | $1,060 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Restructuring And Related Activities [Abstract] | ' |
Workforce restructuring charge | $69 |
Restructuring_Summary_of_Restr
Restructuring - Summary of Restructuring Activity Roll-forward (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Restructuring And Related Activities [Abstract] | ' |
Opening balance | $1,182 |
Amounts accrued | 69 |
Cash payments | -996 |
Balance of accrual | $255 |
Convertible_Preferred_Stock_Wa2
Convertible Preferred Stock Warrant - Additional Information (Detail) | 0 Months Ended | 1 Months Ended | ||
Oct. 19, 2010 | 31-May-13 | Oct. 19, 2010 | Oct. 19, 2010 | |
Warrant [Member] | Series C Convertible Preferred Stock [Member] | Series C Convertible Preferred Stock [Member] | ||
IPO [Member] | Warrant [Member] | |||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' |
Company's Series C Preferred Stock issued | ' | ' | ' | 86,655 |
Exercise price of Series C Preferred Stock | ' | ' | 3.462 | ' |
Warrant exercisable period | '10 years | ' | ' | ' |
Number of common stock issued upon the conversion of common stock warrant, net of the warrant price | ' | 71,847 | ' | ' |
Convertible_Preferred_Stock_Wa3
Convertible Preferred Stock Warrant - Fair Value of Warrant (Detail) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ' | ' |
Risk-free interest rate | ' | 1.25% |
Dividend yield | ' | ' |
Volatility | ' | 48.00% |
Expected term (in years) | ' | '7 years 9 months 18 days |
Convertible_Preferred_Stock_Wa4
Convertible Preferred Stock Warrant - Change in Fair Value of Convertible Preferred Stock Warrant Liability (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ' | ' |
Opening balance | ' | $748 |
Decrease in fair value | ' | -14 |
Closing balance | ' | $734 |