Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2022 | Jan. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DCT | |
Entity Registrant Name | Duck Creek Technologies, Inc. | |
Entity Central Index Key | 0001160951 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 132,888,209 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-39449 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 84-3723837 | |
Entity Address Address Line1 | 22 Boston Wharf Road | |
Entity Address, Address Line Two | Floor 10 | |
Entity Address City Or Town | Boston | |
Entity Address State Or Province | MA | |
Entity Address Postal Zip Code | 02210 | |
City Area Code | 888 | |
Local Phone Number | 724-3509 | |
Entity Interactive Data Current | Yes | |
Security12b Title | Common stock, $0.01 par value per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 255,456 | $ 155,265 |
Short-term investments | 8,432 | 117,823 |
Accounts receivable, net | 28,570 | 29,939 |
Unbilled revenue | 36,006 | 31,696 |
Prepaid expenses and other current assets | 16,303 | 13,355 |
Total current assets | 344,767 | 348,078 |
Property and equipment, net | 13,877 | 14,076 |
Operating lease assets | 15,636 | 16,502 |
Goodwill | 357,260 | 355,498 |
Intangible assets, net | 79,490 | 82,888 |
Deferred tax assets | 1,316 | 1,132 |
Unbilled revenue, net of current portion | 23 | 209 |
Other assets | 20,814 | 21,293 |
Total assets | 833,183 | 839,676 |
Current liabilities: | ||
Accounts payable | 3,433 | 2,577 |
Accrued liabilities | 38,980 | 41,747 |
Lease liability | 4,669 | 4,552 |
Deferred revenue | 26,509 | 29,618 |
Total current liabilities | 73,591 | 78,494 |
Lease liability, net of current portion | 16,660 | 17,877 |
Deferred revenue, net of current portion | 49 | 39 |
Deferred income taxes | 8,827 | 8,654 |
Other long-term liabilities | 2,753 | 2,207 |
Total liabilities | 101,880 | 107,271 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, 135,597,678 shares issued and 132,858,647 shares outstanding at November 30, 2022, 135,370,279 shares issued and 132,686,867 shares outstanding at August 31, 2022, 300,000,000 shares authorized at November 30, 2022 and August 31, 2022, par value $0.01 per share | 1,355 | 1,353 |
Preferred stock, 0 shares outstanding, 50,000,000 shares authorized at November 30, 2022 and August 31, 2022, par value $0.01 per share | ||
Treasury stock, common shares at cost; 2,739,031 shares at November 30, 2022 and 2,684,316 shares at August 31, 2022 | (69,437) | (68,784) |
Accumulated deficit | (54,758) | (49,597) |
Accumulated other comprehensive income (loss) | 830 | (393) |
Additional paid in capital | 853,313 | 849,826 |
Total stockholders' equity | 731,303 | 732,405 |
Total liabilities and stockholders' equity | $ 833,183 | $ 839,676 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2022 | Aug. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued | 135,597,678 | 135,370,279 |
Common stock, shares outstanding | 132,858,647 | 132,686,867 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, common shares | 2,739,031 | 2,684,316 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | ||
Revenue: | |||
Total revenue | $ 80,586 | $ 73,421 | |
Cost of revenue: | |||
Total cost of revenue | 37,142 | 30,951 | |
Gross margin | 43,444 | 42,470 | |
Operating expenses: | |||
Research and development | 16,197 | 12,321 | |
Sales and marketing | 16,211 | 13,167 | |
General and administrative | 17,597 | 15,035 | |
Change in fair value of contingent consideration | 67 | ||
Total operating expenses | 50,005 | 40,590 | |
Income (loss) from operations | (6,561) | 1,880 | |
Other income (expense), net | (402) | (696) | |
Interest income (expense), net | 1,253 | (118) | |
Income (loss) before income taxes | (5,710) | 1,066 | |
Provision for (benefit from) income taxes | (549) | 374 | |
Net income (loss) | $ (5,161) | $ 692 | |
Net earnings (loss) per share information | |||
Net earnings (loss) per share of common stock, basic | [1] | $ (0.04) | $ 0.01 |
Net earnings (loss) per share, diluted | [1] | $ (0.04) | $ 0.01 |
Weighted average shares of common stock, basic | 132,748,831 | 132,038,274 | |
Weighted average number of common stock - diluted | 132,748,831 | 134,212,210 | |
Subscription | |||
Revenue: | |||
Total revenue | $ 43,790 | $ 35,705 | |
Cost of revenue: | |||
Total cost of revenue | 17,091 | 14,585 | |
License | |||
Revenue: | |||
Total revenue | 1,782 | 1,912 | |
Cost of revenue: | |||
Total cost of revenue | 261 | 244 | |
Maintenance and Support | |||
Revenue: | |||
Total revenue | 7,159 | 6,277 | |
Cost of revenue: | |||
Total cost of revenue | 1,185 | 880 | |
Professional Services | |||
Revenue: | |||
Total revenue | 27,855 | 29,527 | |
Cost of revenue: | |||
Total cost of revenue | $ 18,605 | $ 15,242 | |
[1] See Note 8—Net Loss Per Share for additional details . |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Statement of Other Comprehensive Income [Abstract] | ||
Net income (loss) | $ (5,161) | $ 692 |
Other comprehensive loss: | ||
Foreign currency translation adjustments | 1,550 | |
Unrealized losses on available-for-sale securities | (327) | (13) |
Total other comprehensive income (loss) | 1,223 | (13) |
Comprehensive income (loss) | $ (3,938) | $ 679 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Aug. 31, 2021 | $ 730,738 | $ 1,346 | $ (67,764) | $ 838,357 | $ 64 | $ (41,265) |
Beginning balance, shares at Aug. 31, 2021 | 134,625,379 | 2,625,062 | ||||
Net income (loss) | 692 | 692 | ||||
Repurchase of common stock | (141) | $ (141) | ||||
Repurchase of common stock, shares | 3,301 | |||||
Share-based compensation expense | 2,481 | 2,481 | ||||
Issuance of common stock upon exercise of stock options | 132 | 132 | ||||
Issuance of common stock upon exercise of stock options, shares | 4,897 | |||||
Vesting of restricted stock awards | $ 1 | (1) | ||||
Vesting of restricted stock awards, shares | 60,148 | |||||
Other comprehensive gain (loss) | (13) | (13) | ||||
Ending balance at Nov. 30, 2021 | 733,889 | $ 1,347 | $ (67,905) | 840,969 | 51 | (40,573) |
Ending balance, shares at Nov. 30, 2021 | 134,690,424 | 2,628,363 | ||||
Beginning balance at Aug. 31, 2022 | 732,405 | $ 1,353 | $ (68,784) | 849,826 | (393) | (49,597) |
Beginning balance, shares at Aug. 31, 2022 | 135,370,279 | 2,684,316 | ||||
Net income (loss) | (5,161) | (5,161) | ||||
Repurchase of common stock | (653) | $ (653) | ||||
Repurchase of common stock, shares | 54,715 | |||||
Share-based compensation expense | 3,489 | 3,489 | ||||
Vesting of restricted stock awards | $ 2 | (2) | ||||
Vesting of restricted stock awards, shares | 227,399 | |||||
Other comprehensive gain (loss) | 1,223 | 1,223 | ||||
Ending balance at Nov. 30, 2022 | $ 731,303 | $ 1,355 | $ (69,437) | $ 853,313 | $ 830 | $ (54,758) |
Ending balance, shares at Nov. 30, 2022 | 135,597,678 | 2,739,031 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Operating activities: | ||
Net income (loss) | $ (5,161) | $ 692 |
Adjustments to reconcile net income (loss) to cash used in operating activities: | ||
Depreciation of property and equipment | 653 | 704 |
Amortization of capitalized software | 611 | 561 |
Amortization of intangible assets | 4,440 | 3,973 |
Amortization of deferred financing fees | 36 | 18 |
Share-based compensation expense | 3,489 | 1,212 |
Change in fair value of contingent earnout liability | 67 | |
Payment of contingent earnout liability in excess of acquisition date fair value | (1,650) | |
Changes to allowance for credit losses | 6 | 817 |
Deferred taxes | (10) | 1,288 |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,532 | (5,959) |
Unbilled revenue | (4,125) | (3,115) |
Prepaid expenses and other current assets | (3,003) | (2,428) |
Other assets | 481 | 604 |
Accounts payable | 1,234 | (909) |
Accrued liabilities | (2,708) | (16,891) |
Deferred revenue | (3,099) | (2,312) |
Operating leases | (235) | (460) |
Cash settlement of vested phantom stock | (39) | (175) |
Other long-term liabilities | 12 | (640) |
Net cash used in operating activities | (5,886) | (24,603) |
Investing activities: | ||
Purchase of short-term investments | (8,417) | |
Maturities of short-term investments | 117,481 | 95,967 |
Capitalized internal-use software | (1,891) | (366) |
Purchase of property and equipment | (443) | (540) |
Net cash provided by investing activities | 106,730 | 95,061 |
Financing activities: | ||
Purchase of treasury stock | (653) | (141) |
Proceeds from stock option exercises | 132 | |
Payments of contingent earnout liability | (3,879) | |
Payment of deferred financing costs | (488) | |
Net cash used in financing activities | (653) | (4,376) |
Net increase in cash and cash equivalents | 100,191 | 66,082 |
Cash and cash equivalents - beginning of period | 155,265 | 185,657 |
Cash and cash equivalents - end of period | 255,456 | 251,739 |
Supplemental disclosure of other cash flow information: | ||
Cash paid for income taxes | 339 | 1,001 |
Purchases of property and equipment recorded in accounts payable and accrued liabilities | $ 29 | $ 161 |
Nature of Business
Nature of Business | 3 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | (1) Nature of Business Duck Creek Technologies, Inc. (the Company) is the leading cloud-based SaaS provider of core systems for the global property and casualty (P&C) insurance industry. Products offered include Duck Creek Policy, Duck Creek Billing, Duck Creek Claims, Duck Creek Rating, Duck Creek Insights, Duck Creek Distribution Management, Duck Creek Reinsurance Management, Duck Creek Anywhere Managed Integrations, and Duck Creek Industry Content . The Company also provides its products via perpetual and term license arrangements to customers with legacy systems that have yet to move to the cloud. The Company’s headquarters are located in Boston, Massachusetts. The Company also has sales offices in the United Kingdom, Spain, France and Australia, as well as a service center located in India. |
Basis of Presentation, Consolid
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2022 | |
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies | (2) Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies (a) Basis of Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) set by the Financial Accounting Standards Board (FASB), and pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. References to GAAP issued by the FASB in these notes are to the FASB Accounting Standards Codification (FASB ASC). These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2022 filed with the SEC on October 28, 2022. Operating results for interim periods are not necessarily indicative of the results that may be expected for any future period or the entire fiscal year. (b) Risk and Uncertainties There have been no changes to the Company’s Risks and Uncertainties as disclosed in our Annual Report on Form 10-K, filed with the SEC on October 28, 2022, and incorporated herein by reference. (c) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (d) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2022. There have been no material changes to the significant accounting policies during the three months ended November 30, 2022. Allowance for Credit Losses The Company maintains an allowance for expected credit losses for its accounts receivable balance. The allowance reflects the expected collectability of the balance and is based on historical losses, customer-specific factors, and current economic conditions. Credit losses are recorded in general and administrative expense while billing and other revenue adjustments are recorded as a reduction to revenue. Unbilled Revenue, net Revenues recognized in excess of the amounts invoiced to customers are classified as unbilled revenues in the accompanying consolidated balance sheets. The Company expects to invoice all of the unbilled revenue recorded at each reporting period over the term of the contract, which ranges from two to six years . There was no change to the allowance for credit losses during the three months ended November 30, 2022. Unbilled revenue, net as of November 30, 2022 and August 31, 2022, consisted of the following: November 30, August 31, 2022 2022 Unbilled revenue $ 37,950 $ 33,640 Allowance for credit losses ( 1,944 ) ( 1,944 ) Unbilled revenue, net $ 36,006 $ 31,696 Investments At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. All of the Company’s investments are classified as available-for-sale. The Company classifies investments as short-term when their remaining contractual maturities are one year or less from the balance sheet date, and as long-term when the investment has a remaining contractual maturity of more than one year from the balance sheet date. The Company records investments at fair value with unrealized gains and losses recorded as a component of other comprehensive income (loss). (e) Recently Adopted Accounting Pronouncements There have been no changes to our recently adopted accounting pronouncements since the Company’s Annual Report on Form 10-K for the year ended August 31, 2022 . (f) Recent Accounting Pronouncements Not Yet Effective Other recent accounting pronouncements that are or will be applicable to the Company did not, or are not expected to, have a material impact on the Company’s present or future financial statements. (g) Revenue Recognition The Company derives its revenues primarily from the following four sources, which represent performance obligations of the Company: • Sales of hosted software services (SaaS) under subscription arrangements . • Sales of software licenses . Software license revenue is derived from the sale of perpetual and term license arrangements to customers. • Sales of maintenance and support services . Maintenance and support services include telephone and web-based support, software updates, and rights to unspecified software upgrades on a when-and-if-available basis during the maintenance term. • Sales of professional services . Professional services primarily relate to the implementation of the Company’s SaaS offerings and software licenses. In accordance with ASC 606, the Company recognizes revenue from the identified performance obligations, as determined in its contracts with customers, as control is transferred to the customer in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps to achieve the core principle of ASC 606: (1) Identify the contract with the customer The Company considers the terms and conditions of the contracts and its customary business practices in identifying contracts under ASC 606. The Company has determined that a contract with a customer exists when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. (2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. (3) Determine the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that no significant future reversal of cumulative revenue under the contract will occur. The sale of the Company’s software and SaaS products may include variable consideration relating to changes in a customer’s direct written premium (DWP) managed by these solutions. The Company estimates variable consideration based on historical DWP usage to the extent that a significant revenue reversal is not probable to occur. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from customers or to provide customers with financing. (4) Allocate the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (SSP). (5) Recognize revenue when (or as) the Company satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to a customer. Revenue is recognized when control of the products or services are transferred to the Company’s customers, in an amount that reflects the consideration that it expects to receive in exchange for those products or services. The Company records revenue net of applicable sales taxes collected. Sales taxes collected from customers are recorded as part of accounts payable in the accompanying consolidated balance sheets and are remitted to state and local taxing jurisdictions based on the filing requirements of each jurisdiction. Disaggregation of Revenue The Company provides disaggregation of revenue based on product and service type on the consolidated statements of operations as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table summarizes revenue by geographic area based on the location of the customer contracting entity, regardless of where the products or services are used, for the three months ended November 30, 2022 and 2021: Three Months Ended 2022 2021 United States $ 70,784 $ 68,741 All other 9,802 4,680 Total revenue $ 80,586 $ 73,421 Subscription Arrangements The transaction price allocated to subscription arrangements is recognized as revenue over time throughout the term of the contract as the services are provided on a continuous basis, beginning after the SaaS environment is provisioned and made available to customers. The Company’s subscription arrangements generally have terms of three to seven years and are generally payable on a monthly basis over the term of the subscription arrangement, which is typically noncancelable. Revenue is recognized ratably using contractual DWP as the measure of progress. Software Licenses The Company has concluded that its software licenses provide the customer with the right to functional intellectual property (IP), and are distinct performance obligations as the customer can benefit from the software licenses on their own. The transaction price allocated to perpetual and term license arrangements is recognized as revenue at a point in time when control is transferred to the customer, which generally occurs at the time of delivery. Perpetual software license fees are generally payable when the contract is executed. Term license fees are generally payable in advance on an annual basis over the term of the license arrangement, which is typically noncancelable. Perpetual and term license arrangements are delivered before related services are provided, including maintenance and support services, and are functional without such services. Maintenance and Support Services Maintenance and support contracts associated with the Company’s software licenses entitle customers to receive technical support and software updates, on a when and if available basis, during the term of the maintenance and support contract. Technical support and software updates are considered distinct from the related software licenses but accounted for as a single performance obligation as they each constitute a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. The transaction price allocated to software maintenance and support is recognized as revenue over time on a straight-line basis over the term of the maintenance and support contract. Maintenance and support fees are generally payable in advance on a monthly, quarterly, or annual basis over the term of the maintenance and support contract. Maintenance and support contracts are priced as a percentage of the associated software license. Professional Services The Company’s professional services revenue is primarily comprised of implementation services provided to customers. The majority of professional services engagements are billed to customers on a time and materials basis. The Company has determined that professional services provided to customers represent distinct performance obligations. These services may be provided on a stand-alone basis or bundled with other performance obligations, including subscription arrangements, software licenses, and maintenance and support services. The transaction price allocated to these performance obligations is recognized as revenue over time as the services are performed. In those limited instances where professional services arrangements are sold on a fixed price basis, revenue is recognized over time using an input measure of time incurred to date relative to total estimated time to be incurred at project completion. Professional services arrangements are generally invoiced monthly in arrears. The Company records reimbursable out-of-pocket expenses associated with professional services contracts in both revenue and cost of revenue. Contracts with Multiple Performance Obligations The Company’s contracts with customers can include multiple performance obligations, where the transaction price is allocated to each identified performance obligation based on their relative SSP. The Company’s contracts may also grant the customer an option to acquire additional products or services, which the Company assesses to determine whether or not any discount on the products or services is in excess of levels normally available to similar customers and, if so, accounts for the optional product or service as an additional performance obligation. The Company typically determines SSP based on the observable prices of the promised goods or services charged when sold separately to customers, which are determined using contractually stated prices. In instances where SSP is not directly observable, the Company determines SSP based on its overall pricing objectives, taking into consideration market conditions and other factors, including customer size and geography. The various products and services comprising contracts with multiple performance obligations are typically capable of being distinct and accounted for as separate performance obligations. The Company allocates revenue to each of the performance obligations included in a contract with multiple performance obligations at the inception of the contract. The SSP for perpetual or term license arrangements sold in contracts with multiple performance obligations is determined using the residual approach. The Company utilizes the residual approach because the selling prices for software licenses are highly variable and a SSP is not discernible from past transactions or other observable evidence. Periodically, the Company evaluates whether the use of the residual approach remains appropriate for performance obligations associated with software licenses when sold as part of contracts with multiple performance obligations. As a result, if the SSP analysis illustrates that the selling prices for software licenses are no longer highly variable, the Company will utilize the relative allocation method for such arrangements. Contract Modifications The Company may enter into amendments to previously executed contracts which constitute a contract modification. The effect of a contract modification on the transaction price when the remaining products or services are not distinct is recognized to revenue on a cumulative catch-up basis. Contract modifications are accounted for prospectively when it results in the promise to deliver additional products and services that are distinct and the increase in the price of the contract corresponds to the SSP of the additional products or services. Contract Balances Contract assets and liabilities are presented net at the contract level for each reporting period. Contract assets consist of unbilled revenue and represent amounts under contracts with customers where revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of deferred revenue and include billings and payments received in advance of revenue recognized. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining balance is recorded as noncurrent. During the three months ended November 30, 2022 and 2021, $ 20.1 million and $ 16.9 million , respectively, of the Company’s unbilled revenue balance that was included in the corresponding unbilled revenue balance at the beginning of the period presented became an unconditional right to payment and was billed to its customers. During the three months ended November 30, 2022 and 2021, the Company recognized revenue of $ 14.0 million and $ 13.6 million , respectively, that was included in the corresponding deferred revenue balance at the beginning of the period presented. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of November 30, 2022, approximately $ 539.6 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $ 139.9 million in fiscal 2023 and approximately $ 399.7 million thereafter . The estimated revenues do not include unexercised contract renewals. The Company applied the practical expedient in accordance with ASC 606 to exclude amounts related to professional services contracts that are on a time and materials basis. |
Business Combinations
Business Combinations | 3 Months Ended |
Nov. 30, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | (3) Business Combinations Acquisition of Effisoft SAS and Prima Solutions Belgium SA On July 12, 2022, the Company completed the acquisition of all the outstanding shares of Effisoft SAS and Prima Solutions Belgium SA (“Effisoft”), which includes the commercial reinsurance technology solution, Prima XL and a regulatory compliance management solution, Prima Compliance, for a total cash consideration of € 111.2 million ( $ 112.0 million ) . The purchase price includes € 11.0 million ($1 1.1 million) paid into an escrow account as security for certain representations, warranties, and obligations of the sellers. The following allocation of the initial purchase price includes a preliminary valuation of the acquired intangible assets and tangible assets: Tangible assets acquired, net $ 1,448 Identifiable intangible assets: Technology-related 7,650 Customer relationships 26,474 Goodwill 84,939 Deferred tax liabilities ( 8,531 ) Total assets acquired $ 111,980 The amounts above represent the preliminary fair value estimates as of July 1, 2022 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates for intangible assets and for certain components of working capital and deferred income taxes. The preliminary identifiable intangible asset estimate includes customer relationships of $ 26.5 million with a useful life of 15 years and technology of $ 7.7 million with a useful life of 8 years. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill. The goodwill reflects the value of the assembled workforce and the company-specific synergies we expect to realize by selling Effisoft products and services to our existing customers. The results of operations of Effisoft have been included prospectively in our results of operations since the date of acquisition. During the three months ended November 30, 2022, the Company recorded a measurement period adjustment of $ 1.6 million to decrease the value of certain components of tangible assets acquired, with a corresponding increase to goodwill. Contingent Earnout Liability The final earnout payment related to the Outline acquisition was made in November 2021. The total cumulative earnout paid to the Outline sellers was $ 10.3 million. Imburse AG On January 5, 2023, the Company signed an agreement to acquire all of the outstanding shares of Imburse AG and its subsidiaries ("Imburse"), a Switzerland based modern payments platform. The acquisition, which remains subject to customary closing conditions, presents the Company with an opportunity to add digital payment options to its current product offerings. The acquisition is expected to close during the second fiscal quarter of 2023. We expect to account for the acquisition as a business combination. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) Fair Value Measurements Available-for-sale investments within cash equivalents and short-term investments consist of the following (in thousands): November 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds - presented in cash and cash equivalents $ 31,250 $ — $ — $ 31,250 U.S. Government agency securities and treasuries - presented in cash and cash equivalents 167,514 — — 167,514 U.S. Government agency securities and treasuries - presented in short-term investments 8,417 15 — 8,432 Total $ 207,181 $ 15 $ — $ 207,196 August 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds - presented in cash and cash equivalents $ 239 $ — $ — $ 239 U.S. Government agency securities and treasuries - presented in cash and cash equivalents 88,045 — — 88,045 U.S. Government agency securities and treasuries - presented in short-term investments 117,481 342 — 117,823 Total $ 205,765 $ 342 $ — $ 206,107 The Company has recorded the securities at fair value in its consolidated balance sheet and unrealized gains and losses are reported as a component of accumulated other comprehensive income (loss). The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold or securities that reached maturity date. There were no sales, fourteen purchases, and thirteen maturities of securities during the three months ended November 30, 2022. Fair Value The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The following tables present the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories as of November 30, 2022 and August 31, 2022: November 30, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds - presented in cash and cash equivalents $ 31,250 $ — $ — $ 31,250 U.S. Government agency securities and treasuries - presented in cash and cash equivalents $ 167,514 $ 167,514 U.S. Government agency securities and treasuries - presented in short-term investments 8,432 — — 8,432 Total assets $ 207,196 $ — $ — $ 207,196 Liabilities: Liability classified awards $ 31 $ — $ 47 $ 78 Total liabilities $ 31 $ — $ 47 $ 78 August 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds - presented in cash and cash equivalents $ 239 $ — $ — $ 239 U.S. Government agency securities and treasuries - presented in cash and cash equivalents 88,045 — — 88,045 U.S. Government agency securities and treasuries - presented in short-term investments 117,823 — — 117,823 Total assets $ 206,107 $ — $ — $ 206,107 Liabilities: Liability classified awards $ 36 $ — $ 57 $ 93 Total liabilities $ 36 $ — $ 57 $ 93 Quoted prices for liability classified stock appreciation rights are not readily available. Accordingly, the Company uses a Black-Scholes model to estimate the fair value of these awards, which utilizes level three inputs. The following table summarizes the changes in the estimated fair value of the Company’s level 3 categorized liability classified awards for the three months ended November 30, 2022: Balance as of August 31, 2022 $ 57 Additions due to new awards — Net change in the fair value ( 10 ) Cash settlement of awards — Balance as of November 30, 2022 $ 47 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Nov. 30, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | (5) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Directors and officers insurance $ 2,062 $ — Computer software and licenses 7,505 7,930 Other 6,736 5,425 Total prepaid expenses and other current assets $ 16,303 $ 13,355 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Nov. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | (6) Property and Equipment, Net Property and equipment, net as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Leasehold improvements $ 10,296 $ 10,280 Internal-use software 12,089 10,198 Computer equipment 5,377 6,951 Furniture and fixtures 2,019 2,018 Office equipment 761 768 Assets under construction 367 300 Total property and equipment $ 30,909 $ 30,515 Less accumulated depreciation and amortization ( 17,032 ) ( 16,439 ) Property and equipment, net $ 13,877 $ 14,076 Depreciation expense related to property and equipment was $ 0.7 million and $ 0.7 million for the three months ended November 30, 2022 and 2021, respectively. The Company has determined the useful life of capitalized internal-use software to be three years . Amortization expense related to internal-use software was $ 0.6 million and $ 0.6 million for the three months ended November 30, 2022 and 2021, respectively. |
Goodwill and Intangible assets
Goodwill and Intangible assets | 3 Months Ended |
Nov. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (7) Goodwill and Intangible Assets The Company’s goodwill is the result of its acquisitions of other businesses and represents the excess of purchase consideration over the fair value of assets acquired and liabilities assumed. Goodwill for the period ended November 30, 2022 consists of the following: Gross Carrying Amount Accumulated Impairment Losses Effect of Currency Translation Net Carrying Amount Balance at August 31, 2022 $ 355,801 $ — $ ( 303 ) $ 355,498 Subsequent measurement period adjustment 1,593 — — 1,593 Foreign currency translation — — 169 169 Balance at November 30, 2022 $ 357,394 $ — $ ( 134 ) $ 357,260 Intangible assets as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, 2022 Gross Accumulated Effect of Currency Translation Net carrying Weighted Customer relationships $ 130,074 $ ( 65,600 ) $ 807 $ 65,281 8.1 years Acquired technology 39,885 ( 29,400 ) 240 10,725 5.4 years Trademarks and tradenames 9,400 ( 5,953 ) — 3,447 3.7 years Domain name 100 ( 63 ) — 37 3.8 years Backlog 6,700 ( 6,700 ) — — 0 years $ 186,159 $ ( 107,716 ) $ 1,047 $ 79,490 August 31, 2022 Gross Accumulated Effect of Currency Translation Net carrying Weighted Customer relationships $ 130,074 $ ( 62,535 ) $ ( 96 ) $ 67,443 8.3 years Acquired technology 39,885 ( 28,134 ) ( 28 ) 11,723 5.3 years Trademarks and tradenames 9,400 ( 5,718 ) — 3,682 3.9 years Domain name 100 ( 60 ) — 40 4 years Backlog 6,700 ( 6,700 ) — — 0 years $ 186,159 $ ( 103,147 ) $ ( 124 ) $ 82,888 Amortization expense was $ 4.4 million and $ 4.0 million for the three months ended November 30, 2022 and 2021, respectively. Amortization expense is recorded on a straight-line basis over the estimated useful lives of the assets. Amortization expense associated with the backlog intangible asset is classified as a reduction of revenue in the accompanying consolidated statements of operations. As of November 30, 2022, the estimated future amortization of purchased intangible assets is as follows: Fiscal year: 2023 $ 13,446 2024 14,156 2025 14,011 2026 13,060 2027 2,903 2028 and thereafter 21,914 Total $ 79,490 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | (8) Net Income (Loss) Per Share The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by assuming the exercise, settlement, and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings per share of common stock. Three Months Ended 2022 2021 Numerator Net income (loss) $ ( 5,161 ) $ 692 Denominator Weighted average shares of common stock - basic 132,748,831 132,038,274 Dilutive common stock equivalents — 2,173,936 Weighted average shares of common stock - diluted 132,748,831 134,212,210 Earnings (loss) per share - basic and diluted $ ( 0.04 ) $ 0.01 As of November 30, 2022 , 4,608,361 shares outstanding of potential common stock, using of the treasury stock method, were excluded from the computation of diluted weighted-average shares of common stock outstanding because their effect would have been antidilutive. |
Other Assets
Other Assets | 3 Months Ended |
Nov. 30, 2022 | |
Other Assets [Abstract] | |
Other Assets | (9) Other Assets Other assets as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Deferred contract costs $ 14,556 $ 14,682 Other noncurrent assets 6,258 6,611 Total other assets $ 20,814 $ 21,293 The amortization related to deferred contracts costs was $ 0.7 million and $ 0.6 million for the three months ended November 30, 2022 and 2021, respectively. There was no impairment loss in relation to the costs capitalized. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Credit Losses | 3 Months Ended |
Nov. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Accounts Receivable and Allowance for Credit Losses | (10) Accounts Receivable and Allowance for Credit Losses Accounts receivable, net as of November 30, 2022 and August 31, 2022, consisted of the following: November 30, August 31, 2022 2022 Accounts receivable $ 31,550 $ 32,913 Allowance for credit losses ( 2,980 ) ( 2,974 ) Accounts receivable, net $ 28,570 $ 29,939 The following table presents changes to the allowance for credit losses during the three months ended November 30, 2022: Allowance, August 31, 2022 $ ( 2,974 ) Net changes to credit losses ( 6 ) Write-offs, net — Recoveries of previously reserved amounts — Allowance, November 30, 2022 $ ( 2,980 ) |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Nov. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | (11) Accrued Liabilities Accrued liabilities as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Accrued bonuses $ 5,177 $ 14,146 Accrued vacation 6,198 5,490 Accrued hosting fees 13,874 7,122 Accrued withholding taxes 2,479 2,800 Accrued commissions 417 1,458 Liability-classified phantom units and SARs 78 93 Accrued professional service fees 365 425 Other 10,392 10,213 Total accrued liabilities $ 38,980 $ 41,747 |
Credit Facility
Credit Facility | 3 Months Ended |
Nov. 30, 2022 | |
Line of Credit Facility [Abstract] | |
Credit Facility | (12) Credit Facility On October 22, 2021, the Company executed an amended and restated credit agreement for its revolving credit facility, increasing its maximum borrowing capacity from $ 30.0 million to $ 45.0 million. On November 8, 2022, the Company executed Amendment No.1 to the amended and restated credit agreement to change the interest rate benchmark from LIBOR to Secured Overnight Financing Rate (SOFR), as defined in the Amendment. The revolving credit facility has a term of five years and is secured by substantially all of the Company’s tangible assets. Interest accrues on the revolving credit facility at a variable rate based upon the type of borrowing made by the Company. Borrowings can either incur interest at a rate of SOFR (as administered by the Federal Reserve Bank of New York) plus an applicable margin, or incur interest at the higher of: (i) the Prime Rate, (2) the Fed Funds Rate plus 0.5 %, or (3) SOFR plus 1.0 %, plus an applicable margin. The applicable margin ranges from 1.0 % to 2.0 % depending on the interest rate basis and type of borrowing elected. In addition to interest on the revolving credit facility, the Company pays a commitment fee of 0.5 % per annum on the unused portion of the revolving credit facility. Repayment of any amounts borrowed are not required until maturity of the revolving credit facility, however the Company may repay any amounts borrowed at any time, without premium or penalty. The Company is required to meet certain financial and nonfinancial covenants under the terms of the revolving credit facility. These covenants include limits on the creation of liens, limits on making certain investments, limits on incurring additional indebtedness, and maintaining a leverage ratio at or below a maximum level. The Company was in compliance with these financial and nonfinancial covenants as of November 30, 2022 . There was no outstanding balance under the revolving credit facility at November 30, 2022 or August 31, 2022 . Letters of credit of $ 0.7 million were outstanding under the revolving credit facility at November 30, 2022 and August 31, 2022 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (13) Commitments and Contingencies (a) Litigation From time to time, the Company is a party to or can be threatened with litigation in the ordinary course of business. The Company regularly analyzes current information, including, as applicable, the Company’s defenses and insurance coverage and, as necessary, provides accruals for probable and estimable liabilities for the eventual disposition of any matters. The Company was not a party to any material legal proceedings as of November 30, 2022 or 2021. (b) Guarantees The Company’s products are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and substantially in accordance with the Company’s product documentation under normal use and circumstances. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. The Company’s arrangements also include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such indemnifications or commitments and has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Nov. 30, 2022 | |
Compensation Items [Abstract] | |
Share-Based Compensation | (14) Share-Based Compensation Share-based compensation expense has been recorded in the accompanying consolidated statements of operations as follows for the three months ended November 30, 2022 and 2021: Three Months Ended 2022 2021 Cost of subscription revenue $ 139 $ 42 Cost of maintenance and support revenue 13 8 Cost of professional services revenue 642 ( 100 ) Research and development 653 229 Sales and marketing 568 ( 60 ) General and administrative 1,474 1,093 Total share-based compensation expense $ 3,489 $ 1,212 |
Segment Information and Informa
Segment Information and Information about Geographic Areas | 3 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information and Information about Geographic Areas | (15) Segment Information and Information about Geographic Areas The Company considers operating segments to be components of the Company for which separate financial information is available and evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the chief executive officer. The chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by product and geographic region, for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating segment. Revenues by geographic area presented based upon the location of the customer are included in Note 2(g). Property and equipment, net by geographic area are as follows: November 30, August 31, 2022 2022 United States $ 12,255 $ 11,306 All other 1,622 2,770 Total property and equipment, net $ 13,877 $ 14,076 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (16) Related-Party Transactions Services Provided on Behalf of and by Accenture As of November 30, 2022, Accenture held 16 % of the outstanding shares of common stock of the Company. The Company provides certain professional services and software maintenance services to end customers as a subcontractor to Accenture as part of its typical revenue generating arrangements. During the three months ended November 30, 2022 and 2021, the Company recognized immaterial amounts of revenue relating to services performed in this subcontractor capacity. In addition, the Company also engages Accenture to provide certain professional services on behalf of the Company as part of its typical revenue generating arrangements. During both the three months ended November 30, 2022 and 2021, the Company incurred immaterial expenditures relating to services performed by Accenture. Revenue Contracts with Investors During the three months ended November 30, 2022, the Company recognized revenue from customers that invested in the Company’s Class E Preferred Units whose shares converted to common stock in our IPO. The Company recognized aggregate revenue of $ 6.7 million and $ 6.2 million during the three months ended November 30, 2022 and 2021, respectively. Deferred revenue from these customers was $ 4.5 million and $ 4.4 million as of November 30, 2022 and August 31, 2022, respectively. Outstanding accounts receivables due from these customers was $ 5.3 million and $ 10.1 million as of November 30, 2022 and August 31, 2022 , respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (17) Subsequent Events Agreement and Plan of Merger On January 8, 2023 , the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Disco Parent, LLC, a Delaware limited liability company, and Disco Merger Sub, Inc., a Delaware corporation, providing for the acquisition of the Company by affiliates of Vista Equity Partners Management, LLC (“Vista”), for $ 19.00 per share, in an all-cash transaction valued at approximately $ 2.6 billion. The transaction is expected to close in the second calendar quarter of 2023, subject to the satisfaction of customary closing conditions, including approval by the Company’s stockholders and U.S. antitrust clearance. Upon completion of the transaction, the Company’s common stock will no longer be publicly listed, and the Company will become a privately held company. Vista intends to finance the transaction with fully committed equity financing that is not subject to any financing condition. The Merger Agreement includes a “go-shop” period expiring at 11:59 p.m. Eastern time on February 7, 2023, which allows the Company’s board of directors and its advisors to actively initiate, solicit and consider alternative acquisition proposals from third parties. The Company’s board of directors will have the right to terminate the Merger Agreement to enter into a superior proposal subject to the terms and conditions of the Merger Agreement. |
Basis of Presentation, Consol_2
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2022 | |
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) set by the Financial Accounting Standards Board (FASB), and pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. References to GAAP issued by the FASB in these notes are to the FASB Accounting Standards Codification (FASB ASC). These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2022 filed with the SEC on October 28, 2022. Operating results for interim periods are not necessarily indicative of the results that may be expected for any future period or the entire fiscal year. |
Risk and Uncertainties | (b) Risk and Uncertainties There have been no changes to the Company’s Risks and Uncertainties as disclosed in our Annual Report on Form 10-K, filed with the SEC on October 28, 2022, and incorporated herein by reference. |
Principles of Consolidation | (c) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Significant Accounting Policies | (d) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2022. There have been no material changes to the significant accounting policies during the three months ended November 30, 2022. Allowance for Credit Losses The Company maintains an allowance for expected credit losses for its accounts receivable balance. The allowance reflects the expected collectability of the balance and is based on historical losses, customer-specific factors, and current economic conditions. Credit losses are recorded in general and administrative expense while billing and other revenue adjustments are recorded as a reduction to revenue. Unbilled Revenue, net Revenues recognized in excess of the amounts invoiced to customers are classified as unbilled revenues in the accompanying consolidated balance sheets. The Company expects to invoice all of the unbilled revenue recorded at each reporting period over the term of the contract, which ranges from two to six years . There was no change to the allowance for credit losses during the three months ended November 30, 2022. Unbilled revenue, net as of November 30, 2022 and August 31, 2022, consisted of the following: November 30, August 31, 2022 2022 Unbilled revenue $ 37,950 $ 33,640 Allowance for credit losses ( 1,944 ) ( 1,944 ) Unbilled revenue, net $ 36,006 $ 31,696 Investments At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. All of the Company’s investments are classified as available-for-sale. The Company classifies investments as short-term when their remaining contractual maturities are one year or less from the balance sheet date, and as long-term when the investment has a remaining contractual maturity of more than one year from the balance sheet date. The Company records investments at fair value with unrealized gains and losses recorded as a component of other comprehensive income (loss). |
Recently Adopted Accounting Pronouncements | (e) Recently Adopted Accounting Pronouncements There have been no changes to our recently adopted accounting pronouncements since the Company’s Annual Report on Form 10-K for the year ended August 31, 2022 . |
Recent Accounting Pronouncements Not Yet Effective | (f) Recent Accounting Pronouncements Not Yet Effective Other recent accounting pronouncements that are or will be applicable to the Company did not, or are not expected to, have a material impact on the Company’s present or future financial statements. |
Revenue Recognition | (g) Revenue Recognition The Company derives its revenues primarily from the following four sources, which represent performance obligations of the Company: • Sales of hosted software services (SaaS) under subscription arrangements . • Sales of software licenses . Software license revenue is derived from the sale of perpetual and term license arrangements to customers. • Sales of maintenance and support services . Maintenance and support services include telephone and web-based support, software updates, and rights to unspecified software upgrades on a when-and-if-available basis during the maintenance term. • Sales of professional services . Professional services primarily relate to the implementation of the Company’s SaaS offerings and software licenses. In accordance with ASC 606, the Company recognizes revenue from the identified performance obligations, as determined in its contracts with customers, as control is transferred to the customer in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps to achieve the core principle of ASC 606: (1) Identify the contract with the customer The Company considers the terms and conditions of the contracts and its customary business practices in identifying contracts under ASC 606. The Company has determined that a contract with a customer exists when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. (2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. (3) Determine the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that no significant future reversal of cumulative revenue under the contract will occur. The sale of the Company’s software and SaaS products may include variable consideration relating to changes in a customer’s direct written premium (DWP) managed by these solutions. The Company estimates variable consideration based on historical DWP usage to the extent that a significant revenue reversal is not probable to occur. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from customers or to provide customers with financing. (4) Allocate the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (SSP). (5) Recognize revenue when (or as) the Company satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to a customer. Revenue is recognized when control of the products or services are transferred to the Company’s customers, in an amount that reflects the consideration that it expects to receive in exchange for those products or services. The Company records revenue net of applicable sales taxes collected. Sales taxes collected from customers are recorded as part of accounts payable in the accompanying consolidated balance sheets and are remitted to state and local taxing jurisdictions based on the filing requirements of each jurisdiction. Disaggregation of Revenue The Company provides disaggregation of revenue based on product and service type on the consolidated statements of operations as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table summarizes revenue by geographic area based on the location of the customer contracting entity, regardless of where the products or services are used, for the three months ended November 30, 2022 and 2021: Three Months Ended 2022 2021 United States $ 70,784 $ 68,741 All other 9,802 4,680 Total revenue $ 80,586 $ 73,421 Subscription Arrangements The transaction price allocated to subscription arrangements is recognized as revenue over time throughout the term of the contract as the services are provided on a continuous basis, beginning after the SaaS environment is provisioned and made available to customers. The Company’s subscription arrangements generally have terms of three to seven years and are generally payable on a monthly basis over the term of the subscription arrangement, which is typically noncancelable. Revenue is recognized ratably using contractual DWP as the measure of progress. Software Licenses The Company has concluded that its software licenses provide the customer with the right to functional intellectual property (IP), and are distinct performance obligations as the customer can benefit from the software licenses on their own. The transaction price allocated to perpetual and term license arrangements is recognized as revenue at a point in time when control is transferred to the customer, which generally occurs at the time of delivery. Perpetual software license fees are generally payable when the contract is executed. Term license fees are generally payable in advance on an annual basis over the term of the license arrangement, which is typically noncancelable. Perpetual and term license arrangements are delivered before related services are provided, including maintenance and support services, and are functional without such services. Maintenance and Support Services Maintenance and support contracts associated with the Company’s software licenses entitle customers to receive technical support and software updates, on a when and if available basis, during the term of the maintenance and support contract. Technical support and software updates are considered distinct from the related software licenses but accounted for as a single performance obligation as they each constitute a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. The transaction price allocated to software maintenance and support is recognized as revenue over time on a straight-line basis over the term of the maintenance and support contract. Maintenance and support fees are generally payable in advance on a monthly, quarterly, or annual basis over the term of the maintenance and support contract. Maintenance and support contracts are priced as a percentage of the associated software license. Professional Services The Company’s professional services revenue is primarily comprised of implementation services provided to customers. The majority of professional services engagements are billed to customers on a time and materials basis. The Company has determined that professional services provided to customers represent distinct performance obligations. These services may be provided on a stand-alone basis or bundled with other performance obligations, including subscription arrangements, software licenses, and maintenance and support services. The transaction price allocated to these performance obligations is recognized as revenue over time as the services are performed. In those limited instances where professional services arrangements are sold on a fixed price basis, revenue is recognized over time using an input measure of time incurred to date relative to total estimated time to be incurred at project completion. Professional services arrangements are generally invoiced monthly in arrears. The Company records reimbursable out-of-pocket expenses associated with professional services contracts in both revenue and cost of revenue. Contracts with Multiple Performance Obligations The Company’s contracts with customers can include multiple performance obligations, where the transaction price is allocated to each identified performance obligation based on their relative SSP. The Company’s contracts may also grant the customer an option to acquire additional products or services, which the Company assesses to determine whether or not any discount on the products or services is in excess of levels normally available to similar customers and, if so, accounts for the optional product or service as an additional performance obligation. The Company typically determines SSP based on the observable prices of the promised goods or services charged when sold separately to customers, which are determined using contractually stated prices. In instances where SSP is not directly observable, the Company determines SSP based on its overall pricing objectives, taking into consideration market conditions and other factors, including customer size and geography. The various products and services comprising contracts with multiple performance obligations are typically capable of being distinct and accounted for as separate performance obligations. The Company allocates revenue to each of the performance obligations included in a contract with multiple performance obligations at the inception of the contract. The SSP for perpetual or term license arrangements sold in contracts with multiple performance obligations is determined using the residual approach. The Company utilizes the residual approach because the selling prices for software licenses are highly variable and a SSP is not discernible from past transactions or other observable evidence. Periodically, the Company evaluates whether the use of the residual approach remains appropriate for performance obligations associated with software licenses when sold as part of contracts with multiple performance obligations. As a result, if the SSP analysis illustrates that the selling prices for software licenses are no longer highly variable, the Company will utilize the relative allocation method for such arrangements. Contract Modifications The Company may enter into amendments to previously executed contracts which constitute a contract modification. The effect of a contract modification on the transaction price when the remaining products or services are not distinct is recognized to revenue on a cumulative catch-up basis. Contract modifications are accounted for prospectively when it results in the promise to deliver additional products and services that are distinct and the increase in the price of the contract corresponds to the SSP of the additional products or services. Contract Balances Contract assets and liabilities are presented net at the contract level for each reporting period. Contract assets consist of unbilled revenue and represent amounts under contracts with customers where revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of deferred revenue and include billings and payments received in advance of revenue recognized. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining balance is recorded as noncurrent. During the three months ended November 30, 2022 and 2021, $ 20.1 million and $ 16.9 million , respectively, of the Company’s unbilled revenue balance that was included in the corresponding unbilled revenue balance at the beginning of the period presented became an unconditional right to payment and was billed to its customers. During the three months ended November 30, 2022 and 2021, the Company recognized revenue of $ 14.0 million and $ 13.6 million , respectively, that was included in the corresponding deferred revenue balance at the beginning of the period presented. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of November 30, 2022, approximately $ 539.6 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $ 139.9 million in fiscal 2023 and approximately $ 399.7 million thereafter . The estimated revenues do not include unexercised contract renewals. The Company applied the practical expedient in accordance with ASC 606 to exclude amounts related to professional services contracts that are on a time and materials basis. |
Basis of Presentation, Consol_3
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Abstract] | |
Summary of Unbilled Revenue, Net | Unbilled revenue, net as of November 30, 2022 and August 31, 2022, consisted of the following: November 30, August 31, 2022 2022 Unbilled revenue $ 37,950 $ 33,640 Allowance for credit losses ( 1,944 ) ( 1,944 ) Unbilled revenue, net $ 36,006 $ 31,696 |
Summary of Revenue by Geographic Area | The following table summarizes revenue by geographic area based on the location of the customer contracting entity, regardless of where the products or services are used, for the three months ended November 30, 2022 and 2021: Three Months Ended 2022 2021 United States $ 70,784 $ 68,741 All other 9,802 4,680 Total revenue $ 80,586 $ 73,421 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Business Combinations [Abstract] | |
Summary of Valuation of the Acquired Intangible Assets and Tangible Assets | The following allocation of the initial purchase price includes a preliminary valuation of the acquired intangible assets and tangible assets: Tangible assets acquired, net $ 1,448 Identifiable intangible assets: Technology-related 7,650 Customer relationships 26,474 Goodwill 84,939 Deferred tax liabilities ( 8,531 ) Total assets acquired $ 111,980 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Available-for-Sale Investments within Cash Equivalents and Short-term Investments | Available-for-sale investments within cash equivalents and short-term investments consist of the following (in thousands): November 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds - presented in cash and cash equivalents $ 31,250 $ — $ — $ 31,250 U.S. Government agency securities and treasuries - presented in cash and cash equivalents 167,514 — — 167,514 U.S. Government agency securities and treasuries - presented in short-term investments 8,417 15 — 8,432 Total $ 207,181 $ 15 $ — $ 207,196 August 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Money market funds - presented in cash and cash equivalents $ 239 $ — $ — $ 239 U.S. Government agency securities and treasuries - presented in cash and cash equivalents 88,045 — — 88,045 U.S. Government agency securities and treasuries - presented in short-term investments 117,481 342 — 117,823 Total $ 205,765 $ 342 $ — $ 206,107 |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following tables present the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories as of November 30, 2022 and August 31, 2022: November 30, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds - presented in cash and cash equivalents $ 31,250 $ — $ — $ 31,250 U.S. Government agency securities and treasuries - presented in cash and cash equivalents $ 167,514 $ 167,514 U.S. Government agency securities and treasuries - presented in short-term investments 8,432 — — 8,432 Total assets $ 207,196 $ — $ — $ 207,196 Liabilities: Liability classified awards $ 31 $ — $ 47 $ 78 Total liabilities $ 31 $ — $ 47 $ 78 August 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds - presented in cash and cash equivalents $ 239 $ — $ — $ 239 U.S. Government agency securities and treasuries - presented in cash and cash equivalents 88,045 — — 88,045 U.S. Government agency securities and treasuries - presented in short-term investments 117,823 — — 117,823 Total assets $ 206,107 $ — $ — $ 206,107 Liabilities: Liability classified awards $ 36 $ — $ 57 $ 93 Total liabilities $ 36 $ — $ 57 $ 93 |
Summary of Changes in the Estimated Fair Value of the Company's Level 3 Categorized Liability Classified Awards | The following table summarizes the changes in the estimated fair value of the Company’s level 3 categorized liability classified awards for the three months ended November 30, 2022: Balance as of August 31, 2022 $ 57 Additions due to new awards — Net change in the fair value ( 10 ) Cash settlement of awards — Balance as of November 30, 2022 $ 47 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Directors and officers insurance $ 2,062 $ — Computer software and licenses 7,505 7,930 Other 6,736 5,425 Total prepaid expenses and other current assets $ 16,303 $ 13,355 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Leasehold improvements $ 10,296 $ 10,280 Internal-use software 12,089 10,198 Computer equipment 5,377 6,951 Furniture and fixtures 2,019 2,018 Office equipment 761 768 Assets under construction 367 300 Total property and equipment $ 30,909 $ 30,515 Less accumulated depreciation and amortization ( 17,032 ) ( 16,439 ) Property and equipment, net $ 13,877 $ 14,076 |
Goodwill and Intangible assets
Goodwill and Intangible assets (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill for the period ended November 30, 2022 consists of the following: Gross Carrying Amount Accumulated Impairment Losses Effect of Currency Translation Net Carrying Amount Balance at August 31, 2022 $ 355,801 $ — $ ( 303 ) $ 355,498 Subsequent measurement period adjustment 1,593 — — 1,593 Foreign currency translation — — 169 169 Balance at November 30, 2022 $ 357,394 $ — $ ( 134 ) $ 357,260 |
Summary of Intangible Assets | Intangible assets as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, 2022 Gross Accumulated Effect of Currency Translation Net carrying Weighted Customer relationships $ 130,074 $ ( 65,600 ) $ 807 $ 65,281 8.1 years Acquired technology 39,885 ( 29,400 ) 240 10,725 5.4 years Trademarks and tradenames 9,400 ( 5,953 ) — 3,447 3.7 years Domain name 100 ( 63 ) — 37 3.8 years Backlog 6,700 ( 6,700 ) — — 0 years $ 186,159 $ ( 107,716 ) $ 1,047 $ 79,490 August 31, 2022 Gross Accumulated Effect of Currency Translation Net carrying Weighted Customer relationships $ 130,074 $ ( 62,535 ) $ ( 96 ) $ 67,443 8.3 years Acquired technology 39,885 ( 28,134 ) ( 28 ) 11,723 5.3 years Trademarks and tradenames 9,400 ( 5,718 ) — 3,682 3.9 years Domain name 100 ( 60 ) — 40 4 years Backlog 6,700 ( 6,700 ) — — 0 years $ 186,159 $ ( 103,147 ) $ ( 124 ) $ 82,888 |
Summary of Estimated Future Amortization of Purchased Intangible Assets | As of November 30, 2022, the estimated future amortization of purchased intangible assets is as follows: Fiscal year: 2023 $ 13,446 2024 14,156 2025 14,011 2026 13,060 2027 2,903 2028 and thereafter 21,914 Total $ 79,490 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerator and Denominator Used to Compute Basic Earnings Per Share of Common Stock | The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings per share of common stock. Three Months Ended 2022 2021 Numerator Net income (loss) $ ( 5,161 ) $ 692 Denominator Weighted average shares of common stock - basic 132,748,831 132,038,274 Dilutive common stock equivalents — 2,173,936 Weighted average shares of common stock - diluted 132,748,831 134,212,210 Earnings (loss) per share - basic and diluted $ ( 0.04 ) $ 0.01 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Deferred contract costs $ 14,556 $ 14,682 Other noncurrent assets 6,258 6,611 Total other assets $ 20,814 $ 21,293 |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Credit Losses (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Summary of Accounts Receivable, Net | Accounts receivable, net as of November 30, 2022 and August 31, 2022, consisted of the following: November 30, August 31, 2022 2022 Accounts receivable $ 31,550 $ 32,913 Allowance for credit losses ( 2,980 ) ( 2,974 ) Accounts receivable, net $ 28,570 $ 29,939 |
Schedule of Changes to the Allowance for Credit Losses | The following table presents changes to the allowance for credit losses during the three months ended November 30, 2022: Allowance, August 31, 2022 $ ( 2,974 ) Net changes to credit losses ( 6 ) Write-offs, net — Recoveries of previously reserved amounts — Allowance, November 30, 2022 $ ( 2,980 ) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities as of November 30, 2022 and August 31, 2022 consisted of the following: November 30, August 31, 2022 2022 Accrued bonuses $ 5,177 $ 14,146 Accrued vacation 6,198 5,490 Accrued hosting fees 13,874 7,122 Accrued withholding taxes 2,479 2,800 Accrued commissions 417 1,458 Liability-classified phantom units and SARs 78 93 Accrued professional service fees 365 425 Other 10,392 10,213 Total accrued liabilities $ 38,980 $ 41,747 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Compensation Items [Abstract] | |
Summary of Share-based Compensation Expense Recorded in Accompanying Consolidated Statements of Operations | Share-based compensation expense has been recorded in the accompanying consolidated statements of operations as follows for the three months ended November 30, 2022 and 2021: Three Months Ended 2022 2021 Cost of subscription revenue $ 139 $ 42 Cost of maintenance and support revenue 13 8 Cost of professional services revenue 642 ( 100 ) Research and development 653 229 Sales and marketing 568 ( 60 ) General and administrative 1,474 1,093 Total share-based compensation expense $ 3,489 $ 1,212 |
Segment Information and Infor_2
Segment Information and Information about Geographic Areas (Tables) | 3 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment, Net by Geographic Area | Property and equipment, net by geographic area are as follows: November 30, August 31, 2022 2022 United States $ 12,255 $ 11,306 All other 1,622 2,770 Total property and equipment, net $ 13,877 $ 14,076 |
Basis of Presentation, Consol_4
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies - Summary of Unbilled Revenue, Net (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Contract with Customer, Asset, after Allowance for Credit Loss, Current [Abstract] | ||
Unbilled revenue | $ 37,950 | $ 33,640 |
Allowance for credit losses | (1,944) | (1,944) |
Unbilled revenue, net | $ 36,006 | $ 31,696 |
Basis of Presentation, Consol_5
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 80,586 | $ 73,421 |
United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 70,784 | 68,741 |
All Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 9,802 | $ 4,680 |
Basis of Presentation, Consol_6
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | ||
Unbilled revenue balance | $ 20,100,000 | $ 16,900,000 |
Contract with customer, liability, revenue recognized | 14,000,000 | $ 13,600,000 |
Revenue remaining performance obligations | 539,600,000 | |
Change to allowance for credit losses | (6,000) | |
Unbilled Revenue | ||
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | ||
Change to allowance for credit losses | $ 0 | |
Minimum | ||
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | ||
Subscription arrangements term | 3 years | |
Minimum | Unbilled Revenue | ||
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | ||
Unbilled revenue term of contract | 2 years | |
Maximum | ||
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | ||
Subscription arrangements term | 7 years | |
Maximum | Unbilled Revenue | ||
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | ||
Unbilled revenue term of contract | 6 years |
Basis of Presentation, Consol_7
Basis of Presentation, Consolidation, and Summary of Significant Accounting Policies - Additional Information 1 (Details) $ in Millions | Nov. 30, 2022 USD ($) |
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Revenue remaining performance obligations | $ 539.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-12-01 | |
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue remaining performance obligations | $ 139.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-09-01 | |
Basis Of Presentation Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligations | $ 399.7 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) € in Millions, $ in Millions | 3 Months Ended | |||
Jul. 12, 2022 EUR (€) | Jul. 12, 2022 USD ($) | Nov. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||
Measurement period adjustment | $ 1.6 | |||
Technology | ||||
Business Acquisition [Line Items] | ||||
Acquired intangible assets | $ 7.7 | |||
Useful life | 8 years | 8 years | ||
Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Acquired intangible assets | $ 26.5 | |||
Useful life | 15 years | 15 years | ||
Effisoft SAS and Prima Solutions Belgium SA | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | € 111.2 | $ 112 | ||
Purchase price consideration | € 11 | $ 1.1 | ||
Outline Systems, LLC | ||||
Business Acquisition [Line Items] | ||||
Cumulative earnout payment to sellers | $ 10.3 |
Business Combinations - Summary
Business Combinations - Summary of Valuation of the Acquired Intangible Assets and Tangible Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 | Jul. 12, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 357,260 | $ 355,498 | |
Effisoft SAS and Prima Solutions Belgium SA | |||
Business Acquisition [Line Items] | |||
Tangible assets acquired, net | $ 1,448 | ||
Goodwill | 84,939 | ||
Deferred tax liabilities | (8,531) | ||
Total assets acquired | 111,980 | ||
Technology Related | Effisoft SAS and Prima Solutions Belgium SA | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | 7,650 | ||
Customer Relationships | Effisoft SAS and Prima Solutions Belgium SA | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 26,474 |
Contingent Earnout Liability -
Contingent Earnout Liability - Schedule of Changes in Fair Value of Contingent Earnout Liability (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2021 USD ($) | |
Business Acquisition Contingent Consideration [Line Items] | |
Change in fair value of contingent consideration | $ 67 |
Contingent Earnout Liability _2
Contingent Earnout Liability - Additional Information (Details) $ in Millions | Nov. 30, 2021 USD ($) |
Outline Systems, LLC | |
Business Acquisition Contingent Consideration [Line Items] | |
Cumulative earnout payment to sellers | $ 10.3 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Available-for-Sale Investments within Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 207,181 | $ 205,765 |
Unrealized Gains | 15 | 342 |
Estimated Fair Value | 207,196 | 206,107 |
Money Market Funds | Cash and Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 31,250 | 239 |
Estimated Fair Value | 31,250 | 239 |
U.S. Government Agency Securities and Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 117,481 | |
U.S. Government Agency Securities and Treasuries | Cash and Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 167,514 | 88,045 |
Estimated Fair Value | 167,514 | 88,045 |
U.S. Government Agency Securities and Treasuries | Short Term Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 8,417 | |
Unrealized Gains | 15 | 342 |
Estimated Fair Value | $ 8,432 | $ 117,823 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended |
Nov. 30, 2022 USD ($) Maturity Purchase | |
Fair Value Disclosures [Abstract] | |
Sales of securities | $ | $ 0 |
Purchases of securities with cash and cash equivalents | Purchase | 14 |
Maturities of securities | Maturity | 13 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Assets: | ||
Total assets | $ 207,196 | $ 206,107 |
Liabilities: | ||
Total liabilities | 78 | 93 |
Level 1 | ||
Assets: | ||
Total assets | 207,196 | 206,107 |
Liabilities: | ||
Total liabilities | 31 | 36 |
Level 3 | ||
Liabilities: | ||
Total liabilities | 47 | 57 |
Liability Classified Awards | ||
Liabilities: | ||
Total liabilities | 78 | 93 |
Liability Classified Awards | Level 1 | ||
Liabilities: | ||
Total liabilities | 31 | 36 |
Liability Classified Awards | Level 3 | ||
Liabilities: | ||
Total liabilities | 47 | 57 |
U.S. Government Agency Securities and Treasuries | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 167,514 | 88,045 |
U.S. Government Agency Securities and Treasuries | Short Term Investments | ||
Assets: | ||
Total assets | 8,432 | 117,823 |
U.S. Government Agency Securities and Treasuries | Level 1 | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 167,514 | 88,045 |
U.S. Government Agency Securities and Treasuries | Level 1 | Short Term Investments | ||
Assets: | ||
Total assets | 8,432 | 117,823 |
Money Market Funds | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 31,250 | 239 |
Money Market Funds | Level 1 | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | $ 31,250 | $ 239 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in the Estimated Fair Value of the Company's Level 3 Categorized Liability Classified Awards (Details) - Level 3 $ in Thousands | 3 Months Ended |
Nov. 30, 2022 USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance as of August 31, 2022 | $ 57 |
Net change in the fair value | (10) |
Balance as of November 30, 2022 | $ 47 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Directors and officers insurance | $ 2,062 | |
Computer software and licenses | 7,505 | $ 7,930 |
Other | 6,736 | 5,425 |
Total prepaid expenses and other current assets | $ 16,303 | $ 13,355 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 30,909 | $ 30,515 |
Less accumulated depreciation and amortization | (17,032) | (16,439) |
Property and equipment, net | 13,877 | 14,076 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 10,296 | 10,280 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 12,089 | 10,198 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 5,377 | 6,951 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 2,019 | 2,018 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 761 | 768 |
Assets Under Construction | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 367 | $ 300 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Property Plant And Equipment [Line Items] | ||
Depreciation of property and equipment | $ 653 | $ 704 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, useful life | 3 years | |
Amortization expense | $ 600 | $ 600 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2022 USD ($) | |
Goodwill [Line Items] | |
Goodwill, Gross Carrying Amount, Beginning balance | $ 355,801 |
Goodwill, Effect of Currency Translation, Beginning balance | (303) |
Goodwill, Net Carrying Amount, Beginning balance | 355,498 |
Subsequent measurement period adjustment, Gross Carrying Amount | 1,593 |
Subsequent measurement period adjustment, Net Carrying Amount | 1,593 |
Foreign currency translation, Effect of Currency Translation | 169 |
Foreign currency translation, Net of Carrying Amount | 169 |
Goodwill, Gross Carrying Amount, Ending balance | 357,394 |
Goodwill, Effect of Currency Translation, Ending balance | (134) |
Goodwill, Net Carrying Amount, Ending balance | $ 357,260 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Nov. 30, 2022 | Aug. 31, 2022 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 186,159 | $ 186,159 |
Accumulated amortization | (107,716) | (103,147) |
Effect of Currency Translation | 1,047 | (124) |
Net carrying amount | 79,490 | 82,888 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 130,074 | 130,074 |
Accumulated amortization | (65,600) | (62,535) |
Effect of Currency Translation | 807 | (96) |
Net carrying amount | $ 65,281 | $ 67,443 |
Weighted average remaining life | 8 years 1 month 6 days | 8 years 3 months 18 days |
Acquired Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 39,885 | $ 39,885 |
Accumulated amortization | (29,400) | (28,134) |
Effect of Currency Translation | 240 | (28) |
Net carrying amount | $ 10,725 | $ 11,723 |
Weighted average remaining life | 5 years 4 months 24 days | 5 years 3 months 18 days |
Trademarks and Tradenames | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 9,400 | $ 9,400 |
Accumulated amortization | (5,953) | (5,718) |
Net carrying amount | $ 3,447 | $ 3,682 |
Weighted average remaining life | 3 years 8 months 12 days | 3 years 10 months 24 days |
Domain Name | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 100 | $ 100 |
Accumulated amortization | (63) | (60) |
Net carrying amount | $ 37 | $ 40 |
Weighted average remaining life | 3 years 9 months 18 days | 4 years |
Backlog | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 6,700 | $ 6,700 |
Accumulated amortization | (6,700) | (6,700) |
Net carrying amount | $ 0 | $ 0 |
Weighted average remaining life | 0 years | 0 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets from acquisition | $ 4.4 | $ 4 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Estimated Future Amortization of Purchased Intangible Assets (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 13,446 |
2024 | 14,156 |
2025 | 14,011 |
2026 | 13,060 |
2027 | 2,903 |
2028 and thereafter | 21,914 |
Total | $ 79,490 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Reconciliation of Numerator and Denominator Used to Compute Basic Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | ||
Numerator | |||
Net loss | $ (5,161) | $ 692 | |
Denominator | |||
Weighted average number of common stock - basic | 132,748,831 | 132,038,274 | |
Dilutive common stock equivalents | 2,173,936 | ||
Weighted average number of common stock - diluted | 132,748,831 | 134,212,210 | |
Earnings (loss) per share - basic | [1] | $ (0.04) | $ 0.01 |
Earnings (loss) per share - diluted | [1] | $ (0.04) | $ 0.01 |
[1] See Note 8—Net Loss Per Share for additional details . |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Details) | 3 Months Ended |
Nov. 30, 2022 shares | |
Earnings Per Share [Abstract] | |
Number of shares excluded from the computation of diluted weighted-average shares of common stock outstanding | 4,608,361 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Other Assets [Abstract] | ||
Deferred contract costs | $ 14,556 | $ 14,682 |
Other noncurrent assets | 6,258 | 6,611 |
Total other assets | $ 20,814 | $ 21,293 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Other Assets [Abstract] | ||
Amortization of deferred contract costs | $ 700,000 | $ 600,000 |
Impairment loss of costs capitalized | $ 0 | $ 0 |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Credit Losses - Summary of Accounts Receivable,Net (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable | $ 31,550 | $ 32,913 |
Allowance for credit losses | (2,980) | (2,974) |
Accounts receivable, net | $ 28,570 | $ 29,939 |
Accounts Receivable and Allow_4
Accounts Receivable and Allowance for Credit Losses - Schedule of Changes to the Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2022 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance, August 31, 2022 | $ (2,974) |
Net changes to credit losses | (6) |
Allowance, November 30, 2022 | $ (2,980) |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued bonuses | $ 5,177 | $ 14,146 |
Accrued vacation | 6,198 | 5,490 |
Accrued hosting fees | 13,874 | 7,122 |
Accrued withholding taxes | 2,479 | 2,800 |
Accrued commissions | 417 | 1,458 |
Liability-classified phantom units and SARs | 78 | 93 |
Accrued professional service fees | 365 | 425 |
Other | 10,392 | 10,213 |
Total accrued liabilities | $ 38,980 | $ 41,747 |
Credit Facility - Additional In
Credit Facility - Additional Information (Details) - Revolving Credit Facility - USD ($) | 3 Months Ended | |||
Oct. 22, 2021 | Nov. 30, 2022 | Aug. 31, 2022 | Oct. 21, 2021 | |
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, term | 5 years | |||
Unused credit facility fee | 0.50% | |||
Line of credit facility, interest rate description | Interest accrues on the revolving credit facility at a variable rate based upon the type of borrowing made by the Company. Borrowings can either incur interest at a rate of SOFR (as administered by the Federal Reserve Bank of New York) plus an applicable margin, or incur interest at the higher of: (i) the Prime Rate, (2) the Fed Funds Rate plus 0.5%, or (3) SOFR plus 1.0%, plus an applicable margin. The applicable margin ranges from 1.0% to 2.0% depending on the interest rate basis and type of borrowing elected. | |||
Line of credit facility, covenant terms | The Company is required to meet certain financial and nonfinancial covenants under the terms of the revolving credit facility. These covenants include limits on the creation of liens, limits on making certain investments, limits on incurring additional indebtedness, and maintaining a leverage ratio at or below a maximum level. | |||
Line of credit facility, covenant compliance | The Company was in compliance with these financial and nonfinancial covenants as of November 30, 2022. | |||
Line of credit facility, outstanding amount | $ 0 | $ 0 | ||
Letters of credit outstanding amount | $ 700,000 | $ 700,000 | ||
Fed Funds Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Borrowings variable interest rate | 0.50% | |||
SOFR | ||||
Line Of Credit Facility [Line Items] | ||||
Borrowings variable interest rate | 1% | |||
Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Borrowings variable interest rate | 1% | |||
Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Borrowings variable interest rate | 2% | |||
Amended and Restated Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 45,000,000 | $ 30,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Expense Recorded in Accompanying Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 3,489 | $ 1,212 |
Cost of Subscription Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 139 | 42 |
Cost of Maintenance and Support Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 13 | 8 |
Cost of Professional Services Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 642 | (100) |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 653 | 229 |
Sales and Marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 568 | (60) |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 1,474 | $ 1,093 |
Segment Information and Infor_3
Segment Information and Information about Geographic Areas - Additional Information (Details) | 3 Months Ended |
Nov. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information and Infor_4
Segment Information and Information about Geographic Areas - Schedule of Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 |
Geographic Areas, Long-Lived Assets [Abstract] | ||
Total property and equipment, net | $ 13,877 | $ 14,076 |
United States | ||
Geographic Areas, Long-Lived Assets [Abstract] | ||
Total property and equipment, net | 12,255 | 11,306 |
All Other | ||
Geographic Areas, Long-Lived Assets [Abstract] | ||
Total property and equipment, net | $ 1,622 | $ 2,770 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Aug. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Total revenue | $ 80,586 | $ 73,421 | |
Revenue Contracts with Investors | |||
Related Party Transaction [Line Items] | |||
Total revenue | 6,700 | $ 6,200 | |
Deferred revenue | 4,500 | $ 4,400 | |
Accounts receivables due from related party | $ 5,300 | $ 10,100 | |
Accenture | Common Stock | |||
Related Party Transaction [Line Items] | |||
Equity interest ownership percentage | 16% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Vista Equity Partners $ / shares in Units, $ in Billions | Jan. 08, 2023 USD ($) $ / shares |
Subsequent Event [Line Items] | |
Merger agreement date | Jan. 08, 2023 |
Share price, per share | $ / shares | $ 19 |
Cash transaction | $ | $ 2.6 |