Model N (MODN) 10-Q 7 Feb 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Jan. 26, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	MODN
Entity Registrant Name	MODEL N, INC.
Entity Central Index Key	1,118,417
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,483,120

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 48,324	$ 57,558
Accounts receivable, net of allowance for doubtful accounts of $43 as of December 31, 2017 and $85 as of September 30, 2017	38,679	24,784
Prepaid expenses	2,800	3,733
Other current assets	1,202	1,013
Total current assets	91,005	87,088
Property and equipment, net	3,823	4,611
Goodwill	39,283	39,283
Intangible assets, net	38,738	40,156
Other assets	1,104	798
Total assets	173,953	171,936
Current liabilities:
Accounts payable	4,240	3,002
Accrued employee compensation	9,143	14,996
Accrued liabilities	4,028	4,979
Deferred revenue, current portion	57,135	49,186
Long term debt, current portion	4,831	4,753
Total current liabilities	79,377	76,916
Long term debt	52,610	52,452
Other long-term liabilities	1,266	1,307
Total liabilities	133,253	130,675
Commitments and contingencies
Stockholders' equity:
Common Stock, $0.00015 par value; 200,000 shares authorized; 29,474 and 29,323 shares issued and outstanding at December 31, 2017 and September 30, 2017, respectively	4	4
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding	0	0
Additional paid-in capital	221,639	217,052
Accumulated other comprehensive loss	(393)	(502)
Accumulated deficit	(180,550)	(175,293)
Total stockholders' equity	40,700	41,261
Total liabilities and stockholders' equity	$ 173,953	$ 171,936

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 43	$ 85
Common Stock, par value	$ 0.00015	$ 0.00015
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares issued	29,474,000	29,323,000
Common Stock, shares outstanding	29,474,000	29,323,000
Preferred Stock, par value	$ 0.00015	$ 0.00015
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenues:
SaaS and maintenance	$ 32,323	$ 22,640
License and implementation	6,744	5,423
Total revenues	39,067	28,063
Cost of revenues:
SaaS and maintenance	13,024	10,208
License and implementation	3,785	3,614
Total cost of revenues	16,809	13,822
Gross profit	22,258	14,241
Operating expenses:
Research and development	9,068	5,975
Sales and marketing	8,492	8,734
General and administrative	8,731	7,185
Total operating expenses	26,291	21,894
Loss from operations	(4,033)	(7,653)
Interest expense (income), net	1,423	(33)
Other expenses (income), net	125	(154)
Loss before income taxes	(5,581)	(7,466)
(Benefit) provision for income taxes	(324)	134
Net loss	$ (5,257)	$ (7,600)
Net loss per share attributable to common stockholders:
Basic and diluted	$ (0.18)	$ (0.27)
Weighted average number of shares used in computing net loss per share attributable to common stockholders:
Basic and diluted	29,401	28,008

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (5,257)	$ (7,600)
Other comprehensive (loss) income, net
Change in foreign currency translation adjustment	109	(114)
Total comprehensive loss	$ (5,148)	$ (7,714)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (5,257)	$ (7,600)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	2,265	1,094
Stock-based compensation	4,036	1,895
Amortization of debt discount and issuance cost	236
Other non-cash charges	(491)	49
Changes in assets and liabilities, net of acquisition:
Accounts receivable	(13,846)	655
Prepaid expenses and other assets	363	843
Deferred cost of implementation services	191	701
Accounts payable	1,216	591
Accrued employee compensation	(5,896)	(898)
Other accrued and long-term liabilities	(703)	(1,298)
Deferred revenue	8,145	(4,261)
Net cash used in operating activities	(9,741)	(8,229)
Cash flows from investing activities:
Purchases of property and equipment	(60)	(194)
Capitalization of software development costs		(275)
Cash held in escrow for acquisition		(5,000)
Net cash used in investing activities	(60)	(5,469)
Cash flows from financing activities:
Proceeds from exercise of stock options	552	17
Net cash provided by financing activities	552	17
Effect of exchange rate changes on cash and cash equivalents	15	(22)
Net decrease in cash and cash equivalents	(9,234)	(13,703)
Cash and cash equivalents
Beginning of period	57,558	66,149
End of period	$ 48,324	$ 52,446

The Company and Significant Acc

The Company and Significant Accounting Policies and Estimates	3 Months Ended
	Dec. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [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 sciences 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 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 2018, for example, refer to the fiscal year ending September 30, 2018. 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 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 , 2017. Annual Report on Form 10-K In the opinion of management, the unaudited interim consolidated financial statements include all the normal recurring adjustments necessary to present fairly the condensed consolidated financial statements. The results of operations for the three months ended December 31, 2017 were not necessarily indicative of the operating results for the full fiscal year 2018 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 condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation, and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors. However, actual results could differ significantly from these estimates. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard, Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, as amended, which will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services. ASU 2014-09 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates, and also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. The FASB has issued several amendments to the new standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The amendments include ASU 2016-08, Revenue from Contracts with Customers (Topic 606)—Principal versus Agent Considerations, which was issued in March 2016, and clarifies the implementation guidance for principal versus agent considerations in ASU 2014-09, and ASU 2016-10, Revenue from Contracts with Customers (Topic 606)—Identifying Performance Obligations and Licensing, which was issued in April 2016, and amends the guidance in ASU 2014-09 related to identifying performance obligations and accounting for licenses of intellectual property. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, the Company will adopt the new standard effective October 1, 2018. The Company currently anticipates adopting the standard using the modified retrospective method. The Company In February 2016, the FASB issued ASU 2016-02, Lease (Topic 842), guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of October 1, 2019 for the Company Company is In March 2016, FASB issued ASU 2016-9, Compensation – Stock Compensation (Topic 718), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public companies, the guidance is effective for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted for all companies in any interim or annual period. Forfeitures can be estimated, as required today, or recognized when they occur. Estimates of forfeitures will still be required in certain circumstances, such as at the time of modification of an award or issuance of a replacement award in a business combination. The Company adopted this guidance in the first quarter of fiscal year 2018 and has elected to continue to estimate its forfeiture rate. In the year of adoption, the ASU requires that the cumulative effect adjustment be recorded to retained earnings. Due to a full valuation allowance, there is no cumulative effect adjustment to record and the adoption of this guidance had no material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow (Topic 230), amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, but does not believe this will have material impact on its consolidated financial statements In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalent balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. The guidance becomes effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company does not plan to early adopt, and accordingly the Company will adopt the new standard effective October 1, 2018. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the Step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of the Company’s fair value of with carrying amount and the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this standard, but does not believe this will have material impact on its consolidated financial statements.

Business Combination

Business Combination	3 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Business Combination	2. Business Combination Revitas Acquisition On January 5, 2017, the Company completed the acquisition of 100% of the equity interests of Sapphire Stripe Holdings, Inc., the parent company of Revitas, Inc. (“Revitas”). Pursuant to the Agreement and Plan of Merger (“Merger Agreement”), the Company paid approximately $52.8 million in cash and issued to the sellers two $5.0 million promissory notes, one which will mature 18 months after the closing and the other which will mature 36 months after the closing. The Company acquired Revitas to, among other things, expand the Company’s revenue management solutions for customers. In connection with Revitas acquisition, the Company funded, in part, the cash portion of the purchase price with a five year term loan in the aggregate amount of $50.0 million. See Note 5, “Debt”, for additional information. Purchase Price Allocation The total purchase price for Revitas was approximately $61.5 million, which was comprised of $52.8 million in cash and the fair value of the promissory note of $8.6 million, see Note 5, “Debt”, for additional details. The allocation of the purchase price is based on valuations derived from estimated fair value assessments and assumptions used by the Company. As of the acquisition date, the final allocation of the purchase price is as follows: Estimated Fair Value (in thousands) Cash and cash equivalents $ 5,067 Accounts receivable 6,184 Prepaid expenses 1,067 Other current assets 47 Property, plant and equipment 1,506 Intangible assets 39,100 Goodwill 32,344 Other assets 25 Total assets acquired 85,340 Accounts payable (1,352 ) Accrued employee compensation (3,983 ) Accrued liabilities (1,410 ) Deferred revenue liability (12,856 ) Other liabilities (4,256 ) Total liabilities assumed (23,857 ) Net acquired assets $ 61,483 The following table presents certain information on the acquired identifiable assets: Intangible assets Fair value (in thousands) Estimated useful lives (years) Weighted-average estimated useful lives (years) Developed technology $ 6,770 6 6 Customer relationship 32,180 10 10 Trade name $ 150 1 1 The purchase accounting allocation resulted in an ascribed value to the acquired intangible assets of $39.1 million and goodwill of $32.3 million. The key factors attributable to the creation of goodwill by the transaction are synergies in skill-sets, return on future technology and customer development. We do not expect the goodwill recognized as a part of the acquisition to be deductible for income tax purposes. See Note 4, “Goodwill” for additional information. Unaudited Pro Forma Combined Consolidated Financial Information The results of operations for Revitas and the estimated fair values of the assets acquired and liabilities assumed have been included in the Company’s consolidated financial statements since the respective dates of acquisition. The unaudited pro forma combined consolidated financial information is presented for illustrative purpose only and is not necessarily indicative of the result of operations that would have actually been reported had the acquisitions occurred on the above dates, nor is it necessarily indicative of the future results of operations of the combined company. The unaudited pro forma combined consolidated financial information reflects certain adjustments, such as amortization, interest expense, deferred tax valuation allowance and transaction related costs. The following unaudited pro forma combined consolidated financial information has been prepared by the Company using the acquisition method of accounting to give effect to the Revitas acquisition as if it had occurred on October 1, 2015. Three Months Ended December 31, 2016 (in thousands, except per share data) Revenue $ 37,121 Net loss (10,910 ) Net loss per shares-basic and diluted $ (0.39 )

Consolidated Balance Sheet Comp

Consolidated Balance Sheet Components	3 Months Ended
	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Consolidated Balance Sheet Components	3. Consolidated Balance Sheet Components Components of property and equipment, and intangible assets consisted of the following: Property and Equipment As of As of December 31, September 30, 2017 2017 (in thousands) Computer software and equipment $ 10,211 $ 10,274 Furniture and fixtures 1,257 1,284 Leasehold improvements 1,397 1,466 Software development costs 9,416 9,416 Total property and equipment 22,281 22,440 Less: Accumulated depreciation and amortization (18,458 ) (17,829 ) Total property and equipment, net $ 3,823 $ 4,611 Depreciation expense totaled $0.8 million and $0.7 million for the three months ended December 31, 2017 and 2016, respectively. Intangible Assets Estimated As of December 31, 2017 Useful Life Gross Carrying Accumulated Net Carrying (in Years) Amount Amortization Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (5,020 ) $ 7,063 Backlog 5 280 (230 ) 50 Customer relationships 3-10 36,599 (4,974 ) 31,625 Trade name 1 260 (260 ) — Total $ 49,222 $ (10,484 ) $ 38,738 Estimated As of September 30, 2017 Useful Life Gross Carrying Accumulated Net Carrying (in Years) Amount Amortization Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (4,545 ) $ 7,538 Backlog 5 280 (215 ) 65 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 36,599 (4,084 ) 32,515 Trade name 1 260 (222 ) 38 Total $ 49,322 $ (9,166 ) $ 40,156 The Company recorded amortization expense related to the acquired intangible assets of $1.4 million and $0.4 million for the three months ended December 31, 2017 and 2016, respectively. Estimated future amortization expense for the intangible assets as of December 31, 2017 is as follows (in thousands): 2018 (remaining 9 months) $ 4,142 2019 5,466 2020 4,751 2021 4,686 2022 and thereafter 19,693 Total future amortization $ 38,738

Goodwill

Goodwill	3 Months Ended
	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	4. Goodwill The changes in the carrying amount of goodwill for the three months ended December 31, 2017 consisted of the following (in thousands): Balance as at September 30, 2016 $ 6,939 Add: Goodwill from acquisition of business 32,344 Balance as at September 30, 2017 $ 39,283 Add: Goodwill from acquisition of business — Balance as at December 31, 2017 $ 39,283 As a result of the acquisition of Revitas in the second quarter of fiscal 2017, the Company recognized goodwill of $32.3 million. See Note 2, “Business Combination”, for additional details.

Debt

Debt	3 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Debt	5 . Debt Term Loan In connection with the Revitas acquisition, on January 5, 2017, the Company entered into a Financing Agreement (Financing Agreement) by and among the Company, the Subsidiaries, as guarantors, Crystal Financial SPV, LLC and TC Lending, LLC (collectively, the “Lenders”), as administrative agent for the lenders, sole lead arranger, and collateral agent for the Lenders, pursuant to which the Lenders have extended term loan to the Company in an aggregate principle amount of $50.0 million. The term loan made pursuant to the Financing Agreement will bear interest at a rate of either (i) the Base Rate (as defined in the Financing Agreement) plus 9.25% or (ii) the LIBOR Rate (as defined in the Financing Agreement) plus 8.25%, as selected by the Company. The term loans mature on January 5, 2022. For the quarter ending December 31, 2017, the Company selected LIBOR Rate plus 8.25%. The Company must repay 0.625% of the aggregate principal amount of the term loans on the last business day of each fiscal quarter, beginning with the fiscal quarter ending March 31, 2019. The Company may voluntarily prepay the terms loans, subject to a 3% premium during the first 24 months and 1% premium after 24 months and prior to 36 months. Certain mandatory prepayments are required upon the sale of certain assets, the receipt of certain insurance or condemnation proceeds or extraordinary receipts, the issuance of certain securities or debt, the occurrence of excess cash flows and the occurrence of certain restrictions on the business of the combined company or certain divestitures. The Financing Agreement requires the Company and the subsidiaries to maintain certain financial covenants, including achieving certain levels of revenue from specified sources, as outlined in the agreement, and maintaining cash and cash-equivalents of $20.0 million net of accounts payable in excess of $0.5 million 90 days overdue. The Financing Agreement also contains certain non-financial covenants, including restricting our ability to dispose of assets, changing our organizational documents or amending our material agreements in a manner adverse to the lender, changing a method of accounting, merging with or acquiring other entities, incurring other indebtedness and making certain investments. The Company was in compliance with all of the covenants described in the Financing Agreements as of December 31, 2017. The subsidiary guarantors have jointly and severally guaranteed the payment in full of all obligations under the Financing Agreement. The Company and the subsidiary guarantors’ obligations under the Financing Agreement are secured by substantially all of their assets and a pledge of certain of the Company and the subsidiaries’ stock. Promissory Notes Also, in connection with the Revitas acquisition, the Company incurred $10.0 million in debt in the form of two promissory notes with the sellers, one which will mature on July 5, 2018 and the other which will mature on January 5, 2020. These promissory notes bear interest at the rate of 3% per annum, and are subject to a right of set-off as partial security for the indemnification obligations of target’s stockholders under the Merger Agreement. These promissory notes are subordinate to the term loan. The fair value of the promissory notes of $8.6 million was determined based on a discounted future cash flow at 9.96% interest rate, which represents an arm’s length interest rate. As of December 31, 2017, the term loan and promissory notes consisted of the following: Amount (in thousands) Principal $ 60,000 Unamortized debt discount and issuance costs (2,559 ) Net carrying amount $ 57,441 The Company incurred approximately $0.8 million in transaction costs in connection with the term loan in fiscal year 2017. These costs are included as part of the Company’s debt. The effective interest rate for the term loan is 10.3%, the 18 month promissory note is 9.74% and the 36 month promissory note is 9.89%. The future scheduled principal payments for the term loan and promissory notes as of December 31, 2017 were as follows (in thousands): Fiscal Year 2018 (remaining 9 months) 5,000 2019 937 2020 6,250 2021 1,250 2022 46,563 Total $ 60,000

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	6. Fair Value of Financial Instruments The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt and certain accrued liabilities Fair value is defined as the exchange price that Level 1— Unadjusted 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 cash equivalent. 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 , 2017 Level 1 Level 2 Level 3 Total (in thousands) As of December 31, 2017: Assets: Cash equivalents: $ 39,052 $ — $ — $ 39,052 Total $ 39,052 $ — $ — $ 39,052 As of September 30, 2017: Assets: Cash equivalents: $ 47,754 $ — $ — $ 47,754 Total $ 47,754 $ — $ — $ 47,754 The Company’s cash equivalents as of December 31 and September 30, 2017 consisted of a money market funds with original maturity dates of less than three months from the date of their respective purchase. Cash equivalents are classified as Level 1. The fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of December 31 and September 30, 2017. The Company’s financial instruments not measured at fair value on a recurring basis include cash, accounts receivable, accounts payable and accrued liabilities, and are reflected in the financial statements at cost and approximates their fair value due to their short-term nature. The term loan carrying value is approximately fair value since the term loan bears interest at rates that fluctuate with the changes in the Base Rate or the Libor Rate as selected by the Company. The promissory notes carrying values approximate their fair value as of December 31, 2017.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	7. Stock-based Compensation As of December 31, 2017, 4.5 million shares were available for future stock awards under the Company’s equity plans and any additional releases resulting from an over-achievement relating to performance-based restricted stock units. There were no stock options granted during the three months ended December 31, 2017 and 2016, respectively. The following table summarizes the stock option activity and related information under all equity plans: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercised Contract Intrinsic (thousands) Price Term (in Years) Value Balance at September 30, 2017 453 $ 7.71 3.53 $ 3,281 Granted — — — Exercised (62 ) 8.97 — Forfeited — — — Expired — — — Balance at December 31, 2017 391 $ 7.51 3.17 $ 3,224 Options exercisable as of December 31, 2017 391 $ 7.51 3.17 $ 3,224 Options vested and expected to vest as of December 31, 2017 391 $ 7.51 3.17 $ 3,224 The following table summarizes the Company’s restricted stock unit activity (including performance-based restricted stock units) under all equity award plans: Weighted Average Restricted Grant Date Units Fair Value (in thousands) Balance at September 30, 2017 2,917 $ 12.55 Granted 65 14.55 Released (89 ) 10.68 Forfeited (138 ) 10.39 Balance at December 31, 2017 2,755 $ 12.76 Stock-based Compensation Stock-based compensation recorded in the statements of operations is as follows: Three Months Ended December 31, 2017 2016 (in thousands) Cost of revenues: SaaS and maintenance $ 278 $ 246 License and implementation 292 234 Total stock-based compensation in cost of revenue 570 480 Operating expenses: Research and development 657 404 Sales and marketing 871 553 General and administrative 1,938 458 Total stock-based compensation in operating expense 3,466 1,415 Total stock-based compensation $ 4,036 $ 1,895

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes On December 22, 2017, tax reform legislation known as the Tax Cuts and Jobs Act (the Tax Legislation) was enacted in the United States (U.S.). The Tax Legislation significantly revises the U.S. corporate income tax by, among other things, lowering the corporate income tax rate to 21%, implementing a modified territorial tax system and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Toll Charge), and limiting the deductibility of certain expenses, such as interest expense. As a fiscal-year taxpayer, certain provisions of the Tax Legislation impact the Company in fiscal 2018, including the change in the corporate income tax rate and the Toll Charge, while other provisions will be effective starting at the beginning of fiscal 2019. The U.S. federal income tax rate reduction was effective as of January 1, 2018. Accordingly, the Company’s federal statutory income tax rate for fiscal 2018 reflects a blended rate of approximately 24.3%. On December 22, 2017, the SEC issued Staff Accounting Bulletin (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Legislation. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Legislation is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Tax Legislation. Given the amount and complexity of the changes in tax law resulting from the Tax Legislation, the Company has prepared an accounting estimate for the income tax effects of the Tax Legislation. This includes the amounts recorded to the Toll Charge, the re-measurement of deferred taxes and the change in the Company’s indefinite reinvestment assertion. Further, the Company is in the process of analyzing the effects of new taxes due on certain foreign income and other provisions of the Tax Legislation. The impact of the Tax Legislation may differ from this estimate, during the one-year measurement period due to, among other things, further refinement of the Company’s calculations, changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Tax Legislation. However, due to the availability of sufficient U.S. net operating losses as well as related valuation allowances, the Company does not anticipate the enactment of the Tax Legislations to have a material impact on the Company’s financial statements other than disclosure items that will need to be disclosed in is year-end financial statements. The Company anticipates that it will obtain the necessary information to complete the accounting requirements under ASC 740 before the end of its fiscal year. Currently, the Company has recognized an immaterial tax benefit resulting from the re-measurement of indefinitely-lived U.S. deferred tax liabilities at the reduced U.S. corporate tax rate and reduction of valuation allowance for certain deferred tax liabilities from acquisition activity that can now be used as a source of income. The Company recorded an income tax (benefit) expense of $(324,000) and $134,000, representing effective income tax rates of (5.8)% and 1.8%, for the three months ended December 31, 2017 and 2016, respectively. The increase in income tax benefit is primarily due to discrete tax benefit recorded as a result reduction in deferred tax liabilities from the reduced corporate tax rate and valuation allowance release. This is in addition to a reversal of certain foreign unrecognized tax benefits. The Company’s effective income-tax rates during these periods differ from the Company’s blended federal statutory rate of 24.3%, primarily due to permanent differences for stock-based compensation and the impact of state income taxes and foreign tax rate differences. The Company realized no benefit for current period losses due to maintaining a full valuation allowance against the U.S. and foreign net deferred tax assets.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	9. 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, 2017 2016 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (5,257 ) $ (7,600 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 29,401 28,008 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.18 ) $ (0.27 ) The following shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders as the effect would have been anti-dilutive: Three Months Ended December 31, 2017 2016 (in thousands) Stock options 208 542 Performance-based restricted stock units and restricted stock units 1,398 784

Litigation and Contingencies

Litigation and Contingencies	3 Months Ended
	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Litigation and Contingencies	10 . Litigation and Contingencies Legal Proceedings We are not currently a party to any pending material legal proceedings. From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm and other factors.

Geographic Information

Geographic Information	3 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Geographic Information	11. Geographic Information The Company has Revenues from External Customers Revenues from customers outside of the United States were 13% and 9% of total revenues for the three months ended December 31, 2017 and 2016, respectively. However, no single jurisdiction outside of the United States represented more than 10% of total revenues. Long-Lived Assets The following table sets forth the Company’s property and equipment, net by geographic region: As of As of December 31, September 30, 2017 2017 (in thousands) United States $ 3,214 $ 3,867 India 609 744 Total property and equipment, net $ 3,823 $ 4,611

The Company and Significant A18

The Company and Significant Accounting Policies and Estimates (Policies)	3 Months Ended
	Dec. 31, 2017
Accounting Policies [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 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 , 2017. Annual Report on Form 10-K In the opinion of management, the unaudited interim consolidated financial statements include all the normal recurring adjustments necessary to present fairly the condensed consolidated financial statements. The results of operations for the three months ended December 31, 2017 were not necessarily indicative of the operating results for the full fiscal year 2018 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 condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation, and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors. However, actual results could differ significantly from these estimates.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard, Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, as amended, which will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services. ASU 2014-09 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates, and also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. The FASB has issued several amendments to the new standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The amendments include ASU 2016-08, Revenue from Contracts with Customers (Topic 606)—Principal versus Agent Considerations, which was issued in March 2016, and clarifies the implementation guidance for principal versus agent considerations in ASU 2014-09, and ASU 2016-10, Revenue from Contracts with Customers (Topic 606)—Identifying Performance Obligations and Licensing, which was issued in April 2016, and amends the guidance in ASU 2014-09 related to identifying performance obligations and accounting for licenses of intellectual property. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, the Company will adopt the new standard effective October 1, 2018. The Company currently anticipates adopting the standard using the modified retrospective method. The Company In February 2016, the FASB issued ASU 2016-02, Lease (Topic 842), guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of October 1, 2019 for the Company Company is In March 2016, FASB issued ASU 2016-9, Compensation – Stock Compensation (Topic 718), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public companies, the guidance is effective for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted for all companies in any interim or annual period. Forfeitures can be estimated, as required today, or recognized when they occur. Estimates of forfeitures will still be required in certain circumstances, such as at the time of modification of an award or issuance of a replacement award in a business combination. The Company adopted this guidance in the first quarter of fiscal year 2018 and has elected to continue to estimate its forfeiture rate. In the year of adoption, the ASU requires that the cumulative effect adjustment be recorded to retained earnings. Due to a full valuation allowance, there is no cumulative effect adjustment to record and the adoption of this guidance had no material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow (Topic 230), amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, but does not believe this will have material impact on its consolidated financial statements In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalent balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. The guidance becomes effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company does not plan to early adopt, and accordingly the Company will adopt the new standard effective October 1, 2018. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the Step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of the Company’s fair value of with carrying amount and the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this standard, but does not believe this will have material impact on its consolidated financial statements.
Fair Value of Financial Instruments	The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable, debt and certain accrued liabilities Fair value is defined as the exchange price that Level 1— Unadjusted 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 cash equivalent. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets.

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Schedule of Allocation of Purchase Price	As of the acquisition date, the final allocation of the purchase price is as follows: Estimated Fair Value (in thousands) Cash and cash equivalents $ 5,067 Accounts receivable 6,184 Prepaid expenses 1,067 Other current assets 47 Property, plant and equipment 1,506 Intangible assets 39,100 Goodwill 32,344 Other assets 25 Total assets acquired 85,340 Accounts payable (1,352 ) Accrued employee compensation (3,983 ) Accrued liabilities (1,410 ) Deferred revenue liability (12,856 ) Other liabilities (4,256 ) Total liabilities assumed (23,857 ) Net acquired assets $ 61,483
Schedule of Acquired Identifiable Assets	The following table presents certain information on the acquired identifiable assets: Intangible assets Fair value (in thousands) Estimated useful lives (years) Weighted-average estimated useful lives (years) Developed technology $ 6,770 6 6 Customer relationship 32,180 10 10 Trade name $ 150 1 1
Schedule of Unaudited Pro Forma Consolidated Combined Results of Operations	The following unaudited pro forma combined consolidated financial information has been prepared by the Company using the acquisition method of accounting to give effect to the Revitas acquisition as if it had occurred on October 1, 2015. Three Months Ended December 31, 2016 (in thousands, except per share data) Revenue $ 37,121 Net loss (10,910 ) Net loss per shares-basic and diluted $ (0.39 )

Consolidated Balance Sheet Co20

Consolidated Balance Sheet Components (Tables)	3 Months Ended
	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Schedule of Property and Equipment	Property and Equipment As of As of December 31, September 30, 2017 2017 (in thousands) Computer software and equipment $ 10,211 $ 10,274 Furniture and fixtures 1,257 1,284 Leasehold improvements 1,397 1,466 Software development costs 9,416 9,416 Total property and equipment 22,281 22,440 Less: Accumulated depreciation and amortization (18,458 ) (17,829 ) Total property and equipment, net $ 3,823 $ 4,611
Schedule of Intangible Assets	Intangible Assets Estimated As of December 31, 2017 Useful Life Gross Carrying Accumulated Net Carrying (in Years) Amount Amortization Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (5,020 ) $ 7,063 Backlog 5 280 (230 ) 50 Customer relationships 3-10 36,599 (4,974 ) 31,625 Trade name 1 260 (260 ) — Total $ 49,222 $ (10,484 ) $ 38,738 Estimated As of September 30, 2017 Useful Life Gross Carrying Accumulated Net Carrying (in Years) Amount Amortization Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (4,545 ) $ 7,538 Backlog 5 280 (215 ) 65 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 36,599 (4,084 ) 32,515 Trade name 1 260 (222 ) 38 Total $ 49,322 $ (9,166 ) $ 40,156
Schedule of Estimated Future Amortization Expenses	Estimated future amortization expense for the intangible assets as of December 31, 2017 is as follows (in thousands): 2018 (remaining 9 months) $ 4,142 2019 5,466 2020 4,751 2021 4,686 2022 and thereafter 19,693 Total future amortization $ 38,738

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill for the three months ended December 31, 2017 consisted of the following (in thousands): Balance as at September 30, 2016 $ 6,939 Add: Goodwill from acquisition of business 32,344 Balance as at September 30, 2017 $ 39,283 Add: Goodwill from acquisition of business — Balance as at December 31, 2017 $ 39,283

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of Term Loan and Promissory Notes	As of December 31, 2017, the term loan and promissory notes consisted of the following: Amount (in thousands) Principal $ 60,000 Unamortized debt discount and issuance costs (2,559 ) Net carrying amount $ 57,441
Schedule of Future Principal Payments for Term Loan and Promissory Notes	The future scheduled principal payments for the term loan and promissory notes as of December 31, 2017 were as follows (in thousands): Fiscal Year 2018 (remaining 9 months) 5,000 2019 937 2020 6,250 2021 1,250 2022 46,563 Total $ 60,000

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value Measured on Recurring Basis	The table below sets forth , 2017 Level 1 Level 2 Level 3 Total (in thousands) As of December 31, 2017: Assets: Cash equivalents: $ 39,052 $ — $ — $ 39,052 Total $ 39,052 $ — $ — $ 39,052 As of September 30, 2017: Assets: Cash equivalents: $ 47,754 $ — $ — $ 47,754 Total $ 47,754 $ — $ — $ 47,754

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock Option Activity and Related Information Under All Equity Plans	The following table summarizes the stock option activity and related information under all equity plans: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercised Contract Intrinsic (thousands) Price Term (in Years) Value Balance at September 30, 2017 453 $ 7.71 3.53 $ 3,281 Granted — — — Exercised (62 ) 8.97 — Forfeited — — — Expired — — — Balance at December 31, 2017 391 $ 7.51 3.17 $ 3,224 Options exercisable as of December 31, 2017 391 $ 7.51 3.17 $ 3,224 Options vested and expected to vest as of December 31, 2017 391 $ 7.51 3.17 $ 3,224
Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Units) Under All Equity Award Plans	The following table summarizes the Company’s restricted stock unit activity (including performance-based restricted stock units) under all equity award plans: Weighted Average Restricted Grant Date Units Fair Value (in thousands) Balance at September 30, 2017 2,917 $ 12.55 Granted 65 14.55 Released (89 ) 10.68 Forfeited (138 ) 10.39 Balance at December 31, 2017 2,755 $ 12.76
Stock-based Compensation	Stock-based compensation recorded in the statements of operations is as follows: Three Months Ended December 31, 2017 2016 (in thousands) Cost of revenues: SaaS and maintenance $ 278 $ 246 License and implementation 292 234 Total stock-based compensation in cost of revenue 570 480 Operating expenses: Research and development 657 404 Sales and marketing 871 553 General and administrative 1,938 458 Total stock-based compensation in operating expense 3,466 1,415 Total stock-based compensation $ 4,036 $ 1,895

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Dec. 31, 2017
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, 2017 2016 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (5,257 ) $ (7,600 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 29,401 28,008 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.18 ) $ (0.27 )
Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders	The following shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders as the effect would have been anti-dilutive: Three Months Ended December 31, 2017 2016 (in thousands) Stock options 208 542 Performance-based restricted stock units and restricted stock units 1,398 784

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Dec. 31, 2017
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 of As of December 31, September 30, 2017 2017 (in thousands) United States $ 3,214 $ 3,867 India 609 744 Total property and equipment, net $ 3,823 $ 4,611

The Company and Significant A27

The Company and Significant Accounting Policies and Estimates - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Date of incorporation	Dec. 14, 1999
State of incorporation	Delaware

Business Combination - Addition

Business Combination - Additional Information (Details)	Jan. 05, 2017USD ($)PromissoryNote	Dec. 31, 2017	Sep. 30, 2017USD ($)
Business Acquisition [Line Items]
Fair value allocated to goodwill			$ 32,344,000
Sapphire Stripe Holdings, Inc [Member]
Business Acquisition [Line Items]
Percentage of equity interests acquired	100.00%
Revitas Inc. [Member]
Business Acquisition [Line Items]
Cash payment to acquire business	$ 52,800,000
Number of promissory notes issued | PromissoryNote	2
Purchase price	$ 61,500,000
Fair value of promissory note	8,600,000
Fair value allocated to intangible assets	39,100,000
Fair value allocated to goodwill	32,300,000
Revitas Inc. [Member] | Promissory Note One [Member]
Business Acquisition [Line Items]
Debt instrument, face amount	$ 5,000,000
Maturity period	18 months
Revitas Inc. [Member] | Promissory Note Two [Member]
Business Acquisition [Line Items]
Debt instrument, face amount	$ 5,000,000
Maturity period	36 months
Revitas Inc. [Member] | Term Loan [Member]
Business Acquisition [Line Items]
Debt instrument, face amount	$ 50,000,000
Maturity period		5 years

Business Combination - Schedule

Business Combination - Schedule of Allocation of Purchase Price (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017	Jan. 05, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Goodwill	$ 39,283	$ 39,283			$ 6,939
Revitas Inc. [Member]
Business Acquisition [Line Items]
Cash and cash equivalents				$ 5,067
Accounts receivable				6,184
Prepaid expenses				1,067
Other current assets				47
Property, plant and equipment				1,506
Intangible assets				39,100
Goodwill			$ 32,300	32,344
Other assets				25
Total assets acquired				85,340
Accounts payable				(1,352)
Accrued employee compensation				(3,983)
Accrued liabilities				(1,410)
Deferred revenue liability				(12,856)
Other liabilities				(4,256)
Total liabilities assumed				(23,857)
Net acquired assets				$ 61,483

Business Combination - Schedu30

Business Combination - Schedule of Acquired Identifiable Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jan. 05, 2017
Trade Name [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives	1 year	1 year
Revitas Inc. [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets			$ 39,100
Revitas Inc. [Member] | Developed technology [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 6,770
Intangible assets, Estimated useful lives	6 years
Intangible assets, Weighted-average estimated useful lives	6 years
Revitas Inc. [Member] | Customer Relationship [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 32,180
Intangible assets, Estimated useful lives	10 years
Intangible assets, Weighted-average estimated useful lives	10 years
Revitas Inc. [Member] | Trade Name [Member]
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 150
Intangible assets, Estimated useful lives	1 year
Intangible assets, Weighted-average estimated useful lives	1 year

Business Combination - Schedu31

Business Combination - Schedule of Unaudited Pro Forma Consolidated Combined Results of Operations (Details) - Revitas Inc. [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)$ / shares
Business Acquisition [Line Items]
Revenue	$ 37,121
Net loss	$ (10,910)
Net loss per shares-basic and diluted | $ / shares	$ (0.39)

Consolidated Balance Sheet Co32

Consolidated Balance Sheet Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 22,281	$ 22,440
Less: Accumulated depreciation and amortization	(18,458)	(17,829)
Property and equipment, net	3,823	4,611
Computer software and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	10,211	10,274
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	1,257	1,284
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	1,397	1,466
Software development costs [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 9,416	$ 9,416

Consolidated Balance Sheet Co33

Consolidated Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Depreciation of property and equipment	$ 0.8	$ 0.7
Amortization expense of intangible assets	$ 1.4	$ 0.4

Consolidated Balance Sheet Co34

Consolidated Balance Sheet Components - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	$ 49,222	$ 49,322
Intangible assets, Accumulated Amortization	(10,484)	(9,166)
Intangible assets, Net Carrying Amount	38,738	40,156
Developed technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	12,083	12,083
Intangible assets, Accumulated Amortization	(5,020)	(4,545)
Intangible assets, Net Carrying Amount	$ 7,063	$ 7,538
Developed technology [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives	5 years	5 years
Developed technology [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives	6 years	6 years
Backlog [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives	5 years	5 years
Intangible assets, Gross Carrying Amount	$ 280	$ 280
Intangible assets, Accumulated Amortization	(230)	(215)
Intangible assets, Net Carrying Amount	50	$ 65
Non-competition agreement [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives		3 years
Intangible assets, Gross Carrying Amount		$ 100
Intangible assets, Accumulated Amortization		(100)
Intangible assets, Net Carrying Amount		0
Customer Relationship [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	36,599	36,599
Intangible assets, Accumulated Amortization	(4,974)	(4,084)
Intangible assets, Net Carrying Amount	$ 31,625	$ 32,515
Customer Relationship [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives	3 years	3 years
Customer Relationship [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives	10 years	10 years
Trade Name [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated useful lives	1 year	1 year
Intangible assets, Gross Carrying Amount	$ 260	$ 260
Intangible assets, Accumulated Amortization	$ (260)	(222)
Intangible assets, Net Carrying Amount		$ 38

Consolidated Balance Sheet Co35

Consolidated Balance Sheet Components - Schedule of Estimated Future Amortization Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2018 (remaining 9 months)	$ 4,142
2,019	5,466
2,020	4,751
2,021	4,686
2022 and thereafter	19,693
Total future amortization	$ 38,738	$ 40,156

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill (Detail) $ in Thousands	12 Months Ended
	Sep. 30, 2017USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Beginning balance	$ 6,939
Add: Goodwill from acquisition of business	32,344
Ending balance	$ 39,283

Goodwill - Additional Informati

Goodwill - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017	Jan. 05, 2017	Sep. 30, 2016
Goodwill [Line Items]
Goodwill	$ 39,283	$ 39,283			$ 6,939
Revitas Inc. [Member]
Goodwill [Line Items]
Goodwill			$ 32,300	$ 32,344

Debt - Additional Information (

Debt - Additional Information (Detail)	Jan. 05, 2017USD ($)PromissoryNote	Dec. 31, 2017	Sep. 30, 2017USD ($)
Term Loan [Member]
Debt Instrument [Line Items]
Financial covenant cash and cash equivalents to be maintained	$ 20,000,000
Net of accounts payable in excess of certain amount 90 days overdue	$ 500,000
Debt Issuance Costs			$ 800,000
Debt Instrument, Interest Rate, Effective Percentage	10.30%
Promissory Notes [Member]
Debt Instrument [Line Items]
Number of promissory notes issued | PromissoryNote	2
Promissory notes, interest rate	3.00%
Fair value of promissory note	$ 8,600,000
Discounted future cash flow interest rate	9.96%
Promissory Note One [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Jul. 5, 2018
Debt Instrument, Interest Rate, Effective Percentage	9.74%
Promissory Note Two [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Jan. 5, 2020
Debt Instrument, Interest Rate, Effective Percentage	9.89%
Revitas Inc. [Member]
Debt Instrument [Line Items]
Term loan prepayment description		The Company may voluntarily prepay the terms loans, subject to a 3% premium during the first 24 months and 1% premium after 24 months and prior to 36 months.
Number of promissory notes issued | PromissoryNote	2
Fair value of promissory note	$ 8,600,000
Revitas Inc. [Member] | During the first 24 months [Member]
Debt Instrument [Line Items]
Percentage premium on prepayment of term loans	3.00%
Revitas Inc. [Member] | After the first 24 months and prior to 36 months [Member]
Debt Instrument [Line Items]
Percentage premium on prepayment of term loans	1.00%
Revitas Inc. [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 50,000,000
Debt instrument, maturity date	Jan. 5, 2022
Percentage of repayment on principal amount of term loan	0.625%
Revitas Inc. [Member] | Term Loan [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	9.25%
Revitas Inc. [Member] | Term Loan [Member] | LIBOR Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	8.25%	8.25%
Revitas Inc. [Member] | Promissory Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 10,000,000
Revitas Inc. [Member] | Promissory Note One [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	5,000,000
Revitas Inc. [Member] | Promissory Note Two [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 5,000,000

Debt - Schedule of Term Loan an

Debt - Schedule of Term Loan and Promissory Notes (Detail) $ in Thousands	Dec. 31, 2017USD ($)
Debt Disclosure [Abstract]
Principal	$ 60,000
Unamortized debt discount and issuance costs	(2,559)
Net carrying amount	$ 57,441

Debt - Schedule of Future Princ

Debt - Schedule of Future Principal Payments for Term Loan and Promissory Notes (Detail) $ in Thousands	Dec. 31, 2017USD ($)
Fiscal Year
2018 (remaining 9 months)	$ 5,000
2,019	937
2,020	6,250
2,021	1,250
2,022	46,563
Total	$ 60,000

Fair Value of Financial Instr41

Fair Value of Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets on recurring basis	$ 39,052	$ 47,754
Cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets on recurring basis	39,052	47,754
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets on recurring basis	39,052	47,754
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	39,052	47,754
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets on recurring basis	0	0
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	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets on recurring basis	0	0
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	$ 0	$ 0

Fair Value of Financial Instr42

Fair Value of Financial Instruments - Additional Information (Detail) - Money market fund deposits [Member] - USD ($)	Dec. 31, 2017	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gains	$ 0	$ 0
Unrealized losses	$ 0	$ 0

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - shares	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of shares available for future stock awards	4,500,000
Number of stock options, Granted	0	0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity and Related Information Under All Equity Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares, Beginning balance	453,000
Number of Shares, Granted	0		0
Number of Shares, Exercised	(62,000)
Number of Shares, Ending balance	391,000	453,000
Number of Shares, Options exercisable	391,000
Number of Shares, Options vested and expected to vest	391,000
Weighted Average Exercised Price, Beginning balance	$ 7.71
Weighted Average Exercised Price, Exercised	8.97
Weighted Average Exercise Price, Ending balance	7.51	$ 7.71
Weighted Average Exercised Price, Options exercisable	7.51
Weighted Average Exercised Price, Options vested and expected to vest	$ 7.51
Weighted Average Remaining Contract Term (in Years). Shares outstanding	3 years 2 months	3 years 6 months 10 days
Weighted Average Remaining Contract Term (in Years), Options exercisable	3 years 2 months
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest	3 years 2 months
Aggregate Intrinsic Value	$ 3,224	$ 3,281
Aggregate Intrinsic Value, Exercisable	3,224
Aggregate Intrinsic Value, Vested and expected to vest	$ 3,224

Stock-Based Compensation - Su45

Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Units) Under All Equity Award Plans (Detail) - Restricted Stock Units [Member] shares in Thousands	3 Months Ended
	Dec. 31, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Stock, Beginning balance | shares	2,917
Number of Restricted Stock, Granted | shares	65
Number of Restricted Stock, Released | shares	(89)
Number of Restricted Stock, Forfeited | shares	(138)
Number of Restricted Stock, Ending balance | shares	2,755
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 12.55
Weighted Average Grant Date Fair Value, Granted | $ / shares	14.55
Weighted Average Grant Date Fair Value, Released | $ / shares	10.68
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	10.39
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 12.76

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 4,036	$ 1,895
Cost of revenues, License and implementation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	292	234
Cost of Revenues, SaaS and Maintenance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	278	246
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	570	480
Operating expenses, Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	657	404
Operating expenses, Sales and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	871	553
Operating expenses, General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	1,938	458
Operating expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 3,466	$ 1,415

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	Dec. 22, 2017	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective income tax federal statutory rate	21.00%
(Benefit) provision for income taxes		$ (324,000)	$ 134,000
Effective income tax (benefit) expense, rate		(5.80%)	1.80%
Effective income tax federal statutory blended rate		24.30%
Benefit realized for current period losses		$ 0

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net loss per share attributable to common stockholders:
Net loss attributable to common stockholders	$ (5,257)	$ (7,600)
Weighted average number of shares used in computing net loss per share attributable to common stockholders:
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders	29,401	28,008
Basic and diluted:
Net Loss per Share Attributable to Common Stockholders: Basic and diluted	$ (0.18)	$ (0.27)

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stock options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	208	542
Performance-based restricted stock units and restricted stock units [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	1,398	784

Geographic Information - Additi

Geographic Information - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2017SegmentActivityJurisdiction	Dec. 31, 2016
Segment Reporting Information [Line Items]
Number of operating segment | Segment	1
Number of business activity | Activity	1
Other [Member]
Segment Reporting Information [Line Items]
The number of jurisdiction outside US which represents over 10% of total revenue | Jurisdiction	0
Other [Member] | Geographic concentration risk [Member] | Revenue [Member]
Segment Reporting Information [Line Items]
Revenues from customers outside United States	13.00%	9.00%

Geographic Information - Compan

Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 3,823	$ 4,611
United States [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net	3,214	3,867
India [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 609	$ 744