Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | 31,250,449 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 57,645 | $ 57,558 |
Accounts receivable, net of allowance for doubtful accounts of $17 as of June 30, 2018 and $85 as of September 30, 2017 | 31,707 | 24,784 |
Prepaid expenses | 3,307 | 3,733 |
Other current assets | 405 | 1,013 |
Total current assets | 93,064 | 87,088 |
Property and equipment, net | 2,496 | 4,611 |
Goodwill | 39,283 | 39,283 |
Intangible assets, net | 35,977 | 40,156 |
Other assets | 996 | 798 |
Total assets | 171,816 | 171,936 |
Current liabilities: | ||
Accounts payable | 1,383 | 3,002 |
Accrued employee compensation | 12,376 | 14,996 |
Accrued liabilities | 4,041 | 4,979 |
Deferred revenue, current portion | 54,902 | 49,186 |
Long term debt, current portion | 5,995 | 4,753 |
Total current liabilities | 78,697 | 76,916 |
Long term debt | 52,846 | 52,452 |
Other long-term liabilities | 1,651 | 1,307 |
Total liabilities | 133,194 | 130,675 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 31,250 and 29,323 shares issued and outstanding at June 30, 2018 and September 30, 2017, respectively | 5 | 4 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 239,372 | 217,052 |
Accumulated other comprehensive loss | (874) | (502) |
Accumulated deficit | (199,881) | (175,293) |
Total stockholders' equity | 38,622 | 41,261 |
Total liabilities and stockholders' equity | $ 171,816 | $ 171,936 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 17 | $ 85 |
Common Stock, par value | $ 0.00015 | $ 0.00015 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 31,250,000 | 29,323,000 |
Common Stock, shares outstanding | 31,250,000 | 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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues: | ||||
Total revenues | $ 39,617 | $ 34,244 | $ 117,918 | $ 95,564 |
Cost of revenues: | ||||
Total cost of revenues | 16,445 | 15,772 | 50,507 | 45,633 |
Gross profit | 23,172 | 18,472 | 67,411 | 49,931 |
Operating expenses: | ||||
Research and development | 7,746 | 8,393 | 24,861 | 23,302 |
Sales and marketing | 9,338 | 10,739 | 26,845 | 31,081 |
General and administrative | 17,044 | 8,096 | 33,099 | 26,949 |
Total operating expenses | 34,128 | 27,228 | 84,805 | 81,332 |
Loss from operations | (10,956) | (8,756) | (17,394) | (31,401) |
Interest expense (income), net | 4,478 | 1,442 | 7,350 | 2,789 |
Other expenses (income), net | (344) | 3 | (306) | 77 |
Loss before income taxes | (15,090) | (10,201) | (24,438) | (34,267) |
(Benefit) provision for income taxes | 345 | 234 | 150 | (3,742) |
Net loss | $ (15,435) | $ (10,435) | $ (24,588) | $ (30,525) |
Net loss per share attributable to common stockholders: | ||||
Basic and diluted | $ (0.50) | $ (0.36) | $ (0.82) | $ (1.07) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | ||||
Basic and diluted | 30,749 | 28,936 | 30,042 | 28,464 |
SaaS and Maintenance [Member] | ||||
Revenues: | ||||
Total revenues | $ 35,623 | $ 28,530 | $ 100,943 | $ 78,427 |
Cost of revenues: | ||||
Total cost of revenues | 14,599 | 12,439 | 40,489 | 34,527 |
License and Implementation [Member] | ||||
Revenues: | ||||
Total revenues | 3,994 | 5,714 | 16,975 | 17,137 |
Cost of revenues: | ||||
Total cost of revenues | $ 1,846 | $ 3,333 | $ 10,018 | $ 11,106 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (15,435) | $ (10,435) | $ (24,588) | $ (30,525) |
Other comprehensive (loss) income, net | ||||
Change in foreign currency translation adjustment | (391) | 50 | (372) | 97 |
Total comprehensive loss | $ (15,826) | $ (10,385) | $ (24,960) | $ (30,428) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (24,588) | $ (30,525) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 6,410 | 5,866 |
Stock-based compensation | 19,312 | 6,935 |
Amortization of debt discount and issuance cost | 686 | 502 |
Deferred income taxes | (581) | (4,019) |
Other non-cash charges | (30) | 239 |
Loss on debt extinguishment | 3,142 | |
Changes in assets and liabilities, net of acquisition: | ||
Accounts receivable | (6,833) | (7,561) |
Prepaid expenses and other assets | (102) | 2,592 |
Deferred cost of implementation services | 488 | 1,289 |
Accounts payable | (1,752) | (854) |
Accrued employee compensation | (2,541) | 1,482 |
Other accrued and long-term liabilities | (639) | (1,085) |
Deferred revenue | 6,386 | 8,875 |
Net cash used in operating activities | (642) | (16,264) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (165) | (290) |
Acquisition of businesses, net of cash acquired | (47,773) | |
Capitalization of software development costs | (335) | |
Net cash used in investing activities | (165) | (48,398) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options and issuance of employee stock purchase plan | 3,008 | 2,457 |
Proceeds from term loan | 49,588 | 48,686 |
Debt issuance costs | (145) | (806) |
Principal payments on loan | (50,000) | |
Early payment penalty | (1,500) | |
Net cash provided by financing activities | 951 | 50,337 |
Effect of exchange rate changes on cash and cash equivalents | (57) | 7 |
Net decrease in cash and cash equivalents | 87 | (14,318) |
Cash and cash equivalents | ||
Beginning of period | 57,558 | 66,149 |
End of period | $ 57,645 | 51,831 |
Non-cash investing and financing activities: | ||
Promissory notes issued for acquisition | $ 8,643 |
The Company and Significant Acc
The Company and Significant Accounting Policies and Estimates | 9 Months Ended |
Jun. 30, 2018 | |
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 cloud revenue management solutions for the pharmaceutical, medical device, high tech, manufacturing and semiconductor 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 nine months ended June 30, 2018 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 will adopt 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 2016-09, 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, but does not believe this will have material impact 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 year 2019. Early adoption is 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. 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, the Company 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 | 9 Months Ended |
Jun. 30, 2018 | |
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: 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 June 30, Nine Months Ended June 30, 2017 2017 (in thousands, except per share data) (in thousands, except per share data) Revenue $ 34,244 $ 104,622 Net loss (10,343 ) (36,527 ) Net loss per shares-basic and diluted $ (0.36 ) $ (1.28 ) |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 9 Months Ended |
Jun. 30, 2018 | |
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 June 30, September 30, 2018 2017 (in thousands) Computer software and equipment $ 9,762 $ 10,274 Furniture and fixtures 1,234 1,284 Leasehold improvements 1,377 1,466 Software development costs 9,416 9,416 Total property and equipment 21,789 22,440 Less: Accumulated depreciation and amortization (19,293 ) (17,829 ) Total property and equipment, net $ 2,496 $ 4,611 Depreciation expense totaled $0.6 million and $1.0 million for the three months ended June 30, 2018 and 2017, respectively; and $2.2 million and $2.7 million for the nine months ended June 30, 2018 and 2017, respectively. Intangible Assets Estimated As of June 30, 2018 Useful Life Gross Carrying Accumulated Net Carrying (in Years) Amount Amortization Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (5,972 ) $ 6,111 Backlog 5 280 (260 ) 20 Customer relationships 3-10 36,599 (6,753 ) 29,846 Trade name 1 260 (260 ) — Total $ 49,222 $ (13,245 ) $ 35,977 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 $1.4 million for the three months ended June 30, 2018 and 2017, respectively; and $4.2 million and $3.2 million for the nine months ended June 30, 2018 and 2017, respectively. Estimated future amortization expense for the intangible assets as of June 30, 2018 is as follows (in thousands): 2018 (remaining 3 months) $ 1,380 2019 5,466 2020 4,751 2021 4,686 2022 and thereafter 19,694 Total future amortization $ 35,977 |
Goodwill
Goodwill | 9 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 4. Goodwill The changes in the carrying amount of goodwill for the nine months ended June 30, 2018 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 June 30, 2018 $ 39,283 As a result of the acquisition of Revitas in the second quarter of fiscal year 2017, the Company recognized goodwill of $32.3 million. See Note 2, “Business Combination”, for additional details. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2018 | |
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 (the “Financing Agreement”) by and among the Company, the Subsidiaries, as guarantors, Crystal Financial SPV, LLC and TC Lending, LLC, pursuant to which the lenders extended a term loan to the Company in an aggregate principle amount of $50.0 million. In May 2018, this term loan was extinguished and repaid in full in part from the proceeds of the refinancing with Wells Fargo Bank, N. A. (“Wells Fargo”) The term loan made pursuant to the Financing Agreement bore 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 loan would have matured on January 5, 2022. For the quarter beginning on April 1, 2018 through the payoff the loan, the Company selected the Base Rate plus 9.25%. The loan required quarterly payments of interest only and quarterly principal payments of 0.625% of the aggregate principal amount of the term loan beginning with the fiscal quarter ending March 31, 2019. The Financing Agreement required the Company and the subsidiaries to maintain certain financial covenants and also contained 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 March 31, 2018 and through the payoff in conjunction with the new term loan with Wells Fargo Bank entered into on May 4, 2018, discussed below. The balance of this term loan of $50.0 million was repaid in full in connection with a new facility Term Loan – Wells Fargo On May 4, 2018, the Company and certain of its subsidiaries entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, Wells Fargo Bank, National Association, as Administrative Agent, and the lenders party thereto (the “Lenders”), pursuant to which the Lenders extended a term loan to the Company in an aggregate principal amount of $50.0 million and agreed to establish an additional revolving line of credit up to an aggregate principal amount of $5.0 million. In part from the proceeds of this refinancing, the company repaid in full the existing term loan under the Financing Agreement dated January 5, 2017. The term loan will mature on May 4, 2023. The Company is required to repay the principal of the term loan in quarterly installments follows: • $250,000 on September 30, 2018 and the last day of each fiscal quarter thereafter up to June 30, 2019; • $625,000 on September 30, 2019 and the last day of each fiscal quarter thereafter up to June 30, 2020; • $937,500 on September 30, 2020 and the last day of each fiscal quarter thereafter up to March 31, 2023; and the remaining principal amount at maturity. The loans will bear interest, at the Company’s option, at (i) the Base Rate (as defined in the Credit Agreement) plus applicable margin or (ii) the LIBOR Rate (as defined in the Credit Agreement) plus applicable margin. LIBOR interest is payable quarterly and margin varies based upon our leverage ratio. See the table below of applicable margin rates: Level Leverage Ratio Calculation Applicable Margin Relative to Base Rate Applicable Margin Relative to LIBOR Rate I <2.0:1.0 2.0% 3.0% II >=2.0:1.0 but less than 3.5:1.0 2.5% 3.5% III >=3.5:1.0 3.5% 4.5% For the quarter ended as of June 30, 2018, the Company’s interest rate is at the LIBOR Rate plus 4.5%. Certain United States subsidiaries of the Company (the “ Guarantors Guarantors The Company may voluntarily prepay the term loan, with any such prepayment applied against the remaining installments of principal of the term loan on a pro rata basis; provided, that at the election of the Company, one such prepayment made during the fiscal quarter ending December 31, 2018 in an amount not to exceed $5.0 million may be applied against the remaining installments of principal in the direct order of maturity. The Company is required to repay the term loan with proceeds from the sale of assets, the receipt of certain insurance proceeds, litigation proceeds or indemnity payments, or the incurrence of debt (in each case subject to certain exceptions) The Credit Agreement requires the Company and its subsidiaries to maintain certain financial covenants, including maintaining consolidated liquidity (cash in the United States plus revolving credit line availability) of at least $15 million, minimum levels of maintenance and subscription fee revenue and, if liquidity is less than $30 million for 90 consecutive days, leverage ratio not greater than 3.50 to 1.00. The Credit Agreement also requires the Company and Guarantors to maintain certain non-financial covenants, including covenants that restrict their ability to dispose of assets acquire (or make investments in) other entities, or incur other indebtedness or liens. The Credit Agreement also provides for customary events of default, including failure to pay amounts due or to comply with covenants, default on other indebtedness, or a change of control with respect to the Company. The Company was in compliance with the financial covenant requirements as of June 30, 2018. 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. The Company paid the first promissory note of $5.0 million on July 5, 2018. 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 with Wells Fargo. 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 June 30, 2018, the term loan with Wells Fargo and promissory notes consisted of the following: Amount (in thousands) Principal $ 60,000 Unamortized debt discount and issuance costs (1,159 ) Net carrying amount $ 58,841 The Company incurred approximately $0.7 million in transaction costs in connection with the term loan with Wells Fargo in the third quarter of fiscal 2018 and $0.8 million in transaction costs in connection with the term loan with Wells Fargo in fiscal year 2017. These costs are included as part of the Company’s debt. The effective interest rate for the term loan with Wells Fargo is 6.67%, 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 with Wells Fargo and promissory notes as of June 30, 2018 were as follows (in thousands): Fiscal Year 2018 (remaining 3 months) 5,250 2019 1,375 2020 7,813 2021 3,750 2022 and thereafter 41,812 Total $ 60,000 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Jun. 30, 2018 | |
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 , 2018 Level 1 Level 2 Level 3 Total (in thousands) As of June 30, 2018: Assets: Cash equivalents: $ 48,331 $ — $ — $ 48,331 Total $ 48,331 $ — $ — $ 48,331 As of September 30, 2017: Assets: Cash equivalents: $ 47,754 $ — $ — $ 47,754 Total $ 47,754 $ — $ — $ 47,754 The Company’s cash equivalents as of June 30 and September 30, 2017 consisted of 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 June 30 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 with Wells Fargo 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 June 30, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-based Compensation As of June 30, 2018, 5.2 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 and nine months ended June 30, 2018 and 2017, 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 (178 ) 8.59 — Forfeited — — — Expired (47 ) 4.65 — Balance at June 30, 2018 228 $ 7.66 3.27 $ 2,499 Options exercisable as of June 30, 2018 228 $ 7.66 3.27 $ 2,499 Options vested and expected to vest as of June 30, 2018 228 $ 7.66 3.27 $ 2,499 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 1,289 20.45 Released (1,048 ) 13.89 Forfeited (755 ) 18.86 Balance at June 30, 2018 2,403 $ 14.22 On June 7, 2018, the Company issued Mr. Rinat 572,601 common shares, with fair value approximately $10.5 million, in connection with his transition agreement when he resigned as Chief Executive Officer and Chairman of the Board. The related tax withholding portion was later reimbursed by Mr. Rinat to the Company. Mr. Rinat’s 375,234 performance-based restricted stock units, were cancelled due to his departure and the previously recorded expense of approximately $2.0 million was reversed in general administrative expenses. Stock-based Compensation Stock-based compensation recorded in the statements of operations is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Cost of revenues: SaaS and maintenance $ 326 $ 290 $ 961 $ 742 License and implementation 373 296 1,011 740 Total stock-based compensation in cost of revenue 699 586 1,972 1,482 Operating expenses: Research and development 744 512 2,144 1,273 Sales and marketing 986 835 2,517 1,744 General and administrative 9,601 554 12,679 2,436 Total stock-based compensation in operating expense 11,331 1,901 17,340 5,453 Total stock-based compensation $ 12,030 $ 2,487 $ 19,312 $ 6,935 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2018 | |
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 ASC740 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 $0.3 million and $0.2 million, representing effective income tax rates of 2.3% and 2.3%, for the three months ended June 30, 2018 and 2017, respectively; and $0.2 million and ($3.7) million, representing income rates of 0.6% and (10.9%), for the nine months ended June 30, 2018 and 2017, respectively. The income tax expense is primarily related to the state minimum tax and foreign tax on our profitable foreign operations offset by discrete tax benefit recorded as a result of a 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 | 9 Months Ended |
Jun. 30, 2018 | |
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 June 30, Nine Months Ended June 30, 2018 2017 2018 2017 (in thousands, except per share data) (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (15,435 ) $ (10,435 ) $ (24,588 ) $ (30,525 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 30,749 28,936 30,042 28,464 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.50 ) $ (0.36 ) $ (0.82 ) $ (1.07 ) 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 June 30, Nine Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Stock options 138 380 175 496 Performance-based restricted stock units and restricted stock units 1,108 747 1,686 801 |
Litigation and Contingencies
Litigation and Contingencies | 9 Months Ended |
Jun. 30, 2018 | |
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 | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | 11. Geographic Information The Company has Revenues from External Customers Revenues from customers outside of the United States were 11% and 10% of total revenues for the three months ended June 30, 2018 and 2017, respectively, and 12% and 10% of total revenues for the nine months ended June 30, 2018 and 2017, 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 June 30, September 30, 2018 2017 (in thousands) United States $ 2,128 $ 3,867 India 368 744 Total property and equipment, net $ 2,496 $ 4,611 |
The Company and Significant A18
The Company and Significant Accounting Policies and Estimates (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
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 nine months ended June 30, 2018 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 will adopt 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 2016-09, 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, but does not believe this will have material impact 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 year 2019. Early adoption is 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. 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, the Company 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) | 9 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Price | As of the acquisition date, the final allocation of the purchase price is as follows: 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 June 30, Nine Months Ended June 30, 2017 2017 (in thousands, except per share data) (in thousands, except per share data) Revenue $ 34,244 $ 104,622 Net loss (10,343 ) (36,527 ) Net loss per shares-basic and diluted $ (0.36 ) $ (1.28 ) |
Consolidated Balance Sheet Co20
Consolidated Balance Sheet Components (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment | Property and Equipment As of As of June 30, September 30, 2018 2017 (in thousands) Computer software and equipment $ 9,762 $ 10,274 Furniture and fixtures 1,234 1,284 Leasehold improvements 1,377 1,466 Software development costs 9,416 9,416 Total property and equipment 21,789 22,440 Less: Accumulated depreciation and amortization (19,293 ) (17,829 ) Total property and equipment, net $ 2,496 $ 4,611 |
Schedule of Intangible Assets | Intangible Assets Estimated As of June 30, 2018 Useful Life Gross Carrying Accumulated Net Carrying (in Years) Amount Amortization Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (5,972 ) $ 6,111 Backlog 5 280 (260 ) 20 Customer relationships 3-10 36,599 (6,753 ) 29,846 Trade name 1 260 (260 ) — Total $ 49,222 $ (13,245 ) $ 35,977 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 June 30, 2018 is as follows (in thousands): 2018 (remaining 3 months) $ 1,380 2019 5,466 2020 4,751 2021 4,686 2022 and thereafter 19,694 Total future amortization $ 35,977 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the nine months ended June 30, 2018 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 June 30, 2018 $ 39,283 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Applicable Margin Rates | The loans will bear interest, at the Company’s option, at (i) the Base Rate (as defined in the Credit Agreement) plus applicable margin or (ii) the LIBOR Rate (as defined in the Credit Agreement) plus applicable margin. LIBOR interest is payable quarterly and margin varies based upon our leverage ratio. See the table below of applicable margin rates: Level Leverage Ratio Calculation Applicable Margin Relative to Base Rate Applicable Margin Relative to LIBOR Rate I <2.0:1.0 2.0% 3.0% II >=2.0:1.0 but less than 3.5:1.0 2.5% 3.5% III >=3.5:1.0 3.5% 4.5% |
Schedule of Term Loan with Wells Fargo and Promissory Notes | As of June 30, 2018, the term loan with Wells Fargo and promissory notes consisted of the following: Amount (in thousands) Principal $ 60,000 Unamortized debt discount and issuance costs (1,159 ) Net carrying amount $ 58,841 |
Schedule of Future Principal Payments for Term Loan with Wells Fargo and Promissory Notes | The future scheduled principal payments for the term loan with Wells Fargo and promissory notes as of June 30, 2018 were as follows (in thousands): Fiscal Year 2018 (remaining 3 months) 5,250 2019 1,375 2020 7,813 2021 3,750 2022 and thereafter 41,812 Total $ 60,000 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measured on Recurring Basis | The table below sets forth , 2018 Level 1 Level 2 Level 3 Total (in thousands) As of June 30, 2018: Assets: Cash equivalents: $ 48,331 $ — $ — $ 48,331 Total $ 48,331 $ — $ — $ 48,331 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) | 9 Months Ended |
Jun. 30, 2018 | |
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 (178 ) 8.59 — Forfeited — — — Expired (47 ) 4.65 — Balance at June 30, 2018 228 $ 7.66 3.27 $ 2,499 Options exercisable as of June 30, 2018 228 $ 7.66 3.27 $ 2,499 Options vested and expected to vest as of June 30, 2018 228 $ 7.66 3.27 $ 2,499 |
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 1,289 20.45 Released (1,048 ) 13.89 Forfeited (755 ) 18.86 Balance at June 30, 2018 2,403 $ 14.22 |
Stock-based Compensation | Stock-based compensation recorded in the statements of operations is as follows: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Cost of revenues: SaaS and maintenance $ 326 $ 290 $ 961 $ 742 License and implementation 373 296 1,011 740 Total stock-based compensation in cost of revenue 699 586 1,972 1,482 Operating expenses: Research and development 744 512 2,144 1,273 Sales and marketing 986 835 2,517 1,744 General and administrative 9,601 554 12,679 2,436 Total stock-based compensation in operating expense 11,331 1,901 17,340 5,453 Total stock-based compensation $ 12,030 $ 2,487 $ 19,312 $ 6,935 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
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 June 30, Nine Months Ended June 30, 2018 2017 2018 2017 (in thousands, except per share data) (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (15,435 ) $ (10,435 ) $ (24,588 ) $ (30,525 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 30,749 28,936 30,042 28,464 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.50 ) $ (0.36 ) $ (0.82 ) $ (1.07 ) |
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 June 30, Nine Months Ended June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Stock options 138 380 175 496 Performance-based restricted stock units and restricted stock units 1,108 747 1,686 801 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
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 June 30, September 30, 2018 2017 (in thousands) United States $ 2,128 $ 3,867 India 368 744 Total property and equipment, net $ 2,496 $ 4,611 |
The Company and Significant A27
The Company and Significant Accounting Policies and Estimates - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Date of incorporation | Dec. 14, 1999 |
State of incorporation | Delaware |
Business Combination - Addition
Business Combination - Additional Information (Details) | Jan. 05, 2017USD ($)PromissoryNote | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Business Acquisition [Line Items] | |||
Fair value allocated to goodwill | $ 0 | $ 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 | Jun. 30, 2018 | 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 | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | 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] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||
Revenue | $ 34,244 | $ 104,622 |
Net loss | $ (10,343) | $ (36,527) |
Net loss per shares-basic and diluted | $ (0.36) | $ (1.28) |
Consolidated Balance Sheet Co32
Consolidated Balance Sheet Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 21,789 | $ 22,440 |
Less: Accumulated depreciation and amortization | (19,293) | (17,829) |
Property and equipment, net | 2,496 | 4,611 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 9,762 | 10,274 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,234 | 1,284 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,377 | 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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation of property and equipment | $ 0.6 | $ 1 | $ 2.2 | $ 2.7 |
Amortization expense of intangible assets | $ 1.4 | $ 1.4 | $ 4.2 | $ 3.2 |
Consolidated Balance Sheet Co34
Consolidated Balance Sheet Components - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Sep. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 49,222 | $ 49,322 |
Intangible assets, Accumulated Amortization | (13,245) | (9,166) |
Intangible assets, Net Carrying Amount | 35,977 | 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 | (5,972) | (4,545) |
Intangible assets, Net Carrying Amount | $ 6,111 | $ 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 | (260) | (215) |
Intangible assets, Net Carrying Amount | 20 | $ 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 | (6,753) | (4,084) |
Intangible assets, Net Carrying Amount | $ 29,846 | $ 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 | Jun. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2018 (remaining 3 months) | $ 1,380 | |
2,019 | 5,466 | |
2,020 | 4,751 | |
2,021 | 4,686 | |
2022 and thereafter | 19,694 | |
Total future amortization | $ 35,977 | $ 40,156 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 39,283 | $ 6,939 |
Add: Goodwill from acquisition of business | 0 | 32,344 |
Ending balance | $ 39,283 | $ 39,283 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | 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) | Jul. 05, 2018USD ($) | May 04, 2018USD ($) | Jan. 05, 2017USD ($)PromissoryNote | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 3,142,000 | ||||||
Debt pre-payment penalty | 1,500,000 | ||||||
Repayment of debt | $ 50,000,000 | ||||||
Financing Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 3,100,000 | ||||||
Debt pre-payment penalty | 1,500,000 | ||||||
Write-off of unamortized discounts and debt issuance cost | $ 1,600,000 | ||||||
Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, covenant compliance | The Company was in compliance with the financial covenant requirements as of June 30, 2018. | ||||||
Credit Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated liquidity | $ 30,000,000 | ||||||
Minimum leverage ratio | 350.00% | ||||||
Credit Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Financial covenants | $ 15,000,000 | ||||||
Credit Agreement [Member] | Wells Fargo Bank National Association [Member] | Revolving Loan [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving line of credit, aggregate principal amount | 5,000,000 | ||||||
Credit Agreement [Member] | LIBOR Rate [Member] | Wells Fargo Bank National Association [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 4.50% | ||||||
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 | 0.0996 | ||||||
Debt Instrument, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | ||||||
Debt Instrument, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | ||||||
Promissory Note One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Jul. 5, 2018 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.74% | 9.74% | |||||
Promissory Note One [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 5,000,000 | ||||||
Promissory Note Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Jan. 5, 2020 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.89% | 9.89% | |||||
Term Loan [Member] | Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Issuance Costs | $ 800,000 | ||||||
Term Loan [Member] | Credit Agreement [Member] | September 30, 2018 through June 30, 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan, quarterly principal payment | 250,000 | ||||||
Term Loan [Member] | Credit Agreement [Member] | September 30, 2019 through June 30, 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan, quarterly principal payment | 625,000 | ||||||
Term Loan [Member] | Credit Agreement [Member] | September 30, 2020 through March 31, 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan, quarterly principal payment | 937,500 | ||||||
Term Loan [Member] | Credit Agreement [Member] | Maximum [Member] | Scenario Forcast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Term loan, quarterly principal payment | $ 5,000,000 | ||||||
Term Loan [Member] | Credit Agreement [Member] | Wells Fargo Bank National Association [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 50,000,000 | ||||||
Debt instrument, maturity date | May 4, 2023 | ||||||
Debt Issuance Costs | $ 700,000 | $ 700,000 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 6.67% | 6.67% | |||||
Revitas Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of promissory notes issued | PromissoryNote | 2 | ||||||
Fair value of promissory note | $ 8,600,000 | ||||||
Revitas Inc. [Member] | Financing Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, frequency of periodic payment | quarterly | ||||||
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 | ||||||
Revitas Inc. [Member] | Term Loan [Member] | Financing Agreement [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% | ||||||
Repayment of term loan | $ 50,000,000 | ||||||
Revitas Inc. [Member] | Term Loan [Member] | Financing Agreement [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 9.25% | 9.25% | |||||
Revitas Inc. [Member] | Term Loan [Member] | Financing Agreement [Member] | LIBOR Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 8.25% |
Debt - Schedule of Applicable M
Debt - Schedule of Applicable Margin Rates (Detail) - Wells Fargo Bank National Association [Member] - Credit Agreement [Member] | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
LIBOR Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.50% | |
Level I [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Leverage ratio | 200.00% | |
Level I [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Level I [Member] | LIBOR Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.00% | |
Level II [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Leverage ratio | 200.00% | |
Level II [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Leverage ratio | 350.00% | |
Level II [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Level II [Member] | LIBOR Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
Level III [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Leverage ratio | 350.00% | |
Level III [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
Level III [Member] | LIBOR Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.50% |
Debt - Schedule of Term Loan wi
Debt - Schedule of Term Loan with Wells Fargo and Promissory Notes (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Principal | $ 60,000 |
Unamortized debt discount and issuance costs | (1,159) |
Net carrying amount | $ 58,841 |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments for Term Loan with Wells Fargo and Promissory Notes (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Fiscal Year | |
2018 (remaining 3 months) | $ 5,250 |
2,019 | 1,375 |
2,020 | 7,813 |
2,021 | 3,750 |
2022 and thereafter | 41,812 |
Total | $ 60,000 |
Fair Value of Financial Instr42
Fair Value of Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - Fair Value Measurement Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 48,331 | $ 47,754 |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 48,331 | 47,754 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 48,331 | 47,754 |
Level 1 [Member] | Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 48,331 | 47,754 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 [Member] | Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 [Member] | Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Fair Value of Financial Instr43
Fair Value of Financial Instruments - Additional Information (Detail) - Money market fund deposits [Member] - USD ($) | Jun. 30, 2018 | 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) - USD ($) $ in Millions | Jun. 07, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for future stock awards | 5,200,000 | 5,200,000 | |||
Number of stock options, Granted | 0 | 0 | 0 | 0 | |
Zack Rinat [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares issued | 572,601 | ||||
Common shares issued, fair value | $ 10.5 | ||||
Zack Rinat [Member] | Performance-based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units cancelled | 375,234 | ||||
Zack Rinat [Member] | General and Admistrative Expenses [Member] | Performance-based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expense reversed | $ 2 |
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 | 9 Months Ended | |||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||
Number of Shares, Beginning balance | 453,000 | ||||
Number of Shares, Granted | 0 | 0 | 0 | 0 | |
Number of Shares, Exercised | (178,000) | ||||
Number of Shares, Expired | (47,000) | ||||
Number of Shares, Ending balance | 228,000 | 453,000 | 228,000 | ||
Number of Shares, Options exercisable | 228,000 | 228,000 | |||
Number of Shares, Options vested and expected to vest | 228,000 | 228,000 | |||
Weighted Average Exercised Price, Beginning balance | $ 7.71 | ||||
Weighted Average Exercised Price, Exercised | 8.59 | ||||
Weighted Average Exercise Price, Expired | 4.65 | ||||
Weighted Average Exercise Price, Ending balance | $ 7.66 | $ 7.71 | 7.66 | ||
Weighted Average Exercised Price, Options exercisable | 7.66 | 7.66 | |||
Weighted Average Exercised Price, Options vested and expected to vest | $ 7.66 | $ 7.66 | |||
Weighted Average Remaining Contract Term (in Years). Shares outstanding | 3 years 6 months 10 days | 3 years 3 months 7 days | |||
Weighted Average Remaining Contract Term (in Years), Options exercisable | 3 years 3 months 7 days | ||||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest | 3 years 3 months 7 days | ||||
Aggregate Intrinsic Value | $ 2,499 | $ 3,281 | $ 2,499 | ||
Aggregate Intrinsic Value, Exercisable | 2,499 | 2,499 | |||
Aggregate Intrinsic Value, Vested and expected to vest | $ 2,499 | $ 2,499 |
Stock-Based Compensation - Su46
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 | 9 Months Ended |
Jun. 30, 2018$ / 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 | 1,289 |
Number of Restricted Stock, Released | shares | (1,048) |
Number of Restricted Stock, Forfeited | shares | (755) |
Number of Restricted Stock, Ending balance | shares | 2,403 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 12.55 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 20.45 |
Weighted Average Grant Date Fair Value, Released | $ / shares | 13.89 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 18.86 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 14.22 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 12,030 | $ 2,487 | $ 19,312 | $ 6,935 |
Cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 699 | 586 | 1,972 | 1,482 |
Cost of revenues [Member] | SaaS and Maintenance [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 326 | 290 | 961 | 742 |
Cost of revenues [Member] | License and Implementation [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 373 | 296 | 1,011 | 740 |
Operating expenses, Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 744 | 512 | 2,144 | 1,273 |
Operating expenses, Sales and marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 986 | 835 | 2,517 | 1,744 |
Operating expenses, General and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 9,601 | 554 | 12,679 | 2,436 |
Operating expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 11,331 | $ 1,901 | $ 17,340 | $ 5,453 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 22, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 |
Income Tax Disclosure [Line Items] | ||||||
Effective income tax federal statutory rate | 21.00% | |||||
(Benefit) provision for income taxes | $ 345,000 | $ 234,000 | $ 150,000 | $ (3,742,000) | ||
Effective income tax (benefit) expense, rate | 2.30% | 2.30% | 0.60% | (10.90%) | ||
Benefit realized for current period losses | $ 0 | $ 0 | ||||
Scenario Plan [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Effective income tax federal statutory rate | 24.30% |
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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator, Basic and diluted: | ||||
Net loss attributable to common stockholders | $ (15,435) | $ (10,435) | $ (24,588) | $ (30,525) |
Denominator, Basic and diluted: | ||||
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders | 30,749 | 28,936 | 30,042 | 28,464 |
Net Loss per Share Attributable to Common Stockholders: | ||||
Basic and diluted | $ (0.50) | $ (0.36) | $ (0.82) | $ (1.07) |
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 | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 138 | 380 | 175 | 496 |
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 | 1,108 | 747 | 1,686 | 801 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018SegmentActivityJurisdiction | Jun. 30, 2017 | |
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 | 11.00% | 10.00% | 12.00% | 10.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 2,496 | $ 4,611 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 2,128 | 3,867 |
India [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 368 | $ 744 |