Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 16, 2023 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ALTR | |
Entity Registrant Name | ALTAIR ENGINEERING INC. | |
Entity Central Index Key | 0001701732 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-38263 | |
Entity Tax Identification Number | 38-2591828 | |
Entity Address, Address Line One | 1820 East Big Beaver Road | |
Entity Address, City or Town | Troy | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48083 | |
City Area Code | 248 | |
Local Phone Number | 614-2400 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Class A Common Stock $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Class A Common Stock [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 54,627,196 | |
Class B Common Stock [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,034,574 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 431,188 | $ 316,146 |
Accounts receivable, net | 121,855 | 170,279 |
Income tax receivable | 12,402 | 11,259 |
Prepaid expenses and other current assets | 26,561 | 29,142 |
Total current assets | 592,006 | 526,826 |
Property and equipment, net | 38,167 | 37,517 |
Operating lease right of use assets | 32,132 | 33,601 |
Goodwill | 452,822 | 449,048 |
Other intangible assets, net | 86,491 | 107,609 |
Deferred tax assets | 8,046 | 9,727 |
Other long-term assets | 42,327 | 40,410 |
TOTAL ASSETS | 1,251,991 | 1,204,738 |
CURRENT LIABILITIES: | ||
Accounts payable | 5,159 | 10,434 |
Accrued compensation and benefits | 39,468 | 42,456 |
Current portion of operating lease liabilities | 9,209 | 10,396 |
Other accrued expenses and current liabilities | 50,917 | 56,371 |
Deferred revenue | 110,843 | 113,081 |
Current portion of convertible senior notes, net | 81,319 | 0 |
Total current liabilities | 296,915 | 232,738 |
Convertible senior notes, net | 225,635 | 305,604 |
Operating lease liabilities, net of current portion | 23,373 | 24,065 |
Deferred revenue, non-current | 28,090 | 31,379 |
Other long-term liabilities | 43,860 | 41,216 |
TOTAL LIABILITIES | 617,873 | 635,002 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding | 0 | 0 |
Additional paid-in capital | 816,551 | 721,307 |
Accumulated deficit | (150,178) | (121,577) |
Accumulated other comprehensive loss | (32,263) | (30,002) |
TOTAL STOCKHOLDERS’ EQUITY | 634,118 | 569,736 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,251,991 | 1,204,738 |
Class A Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | 5 | 5 |
Class B Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | $ 3 | $ 3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 45,000,000 | 45,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 513,797,000 | 513,797,000 |
Common stock, shares issued | 54,351,000 | 52,277,000 |
Common stock, shares outstanding | 54,351,000 | 52,277,000 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 41,203,000 | 41,203,000 |
Common stock, shares issued | 27,045,000 | 27,745,000 |
Common stock, shares outstanding | 27,045,000 | 27,745,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total revenue | $ 134,003 | $ 119,351 | $ 441,198 | $ 411,788 |
Total cost of revenue | 29,086 | 27,909 | 92,618 | 89,035 |
Gross profit | 104,917 | 91,442 | 348,580 | 322,753 |
Operating expenses: | ||||
Research and development | 51,598 | 53,092 | 160,126 | 150,608 |
Sales and marketing | 44,069 | 41,352 | 132,543 | 120,345 |
General and administrative | 17,218 | 18,258 | 53,791 | 54,054 |
Amortization of intangible assets | 7,704 | 6,571 | 23,143 | 18,682 |
Other operating (income) expense, net | (4,408) | (2,835) | 1,324 | (9,383) |
Total operating expenses | 116,181 | 116,438 | 370,927 | 334,306 |
Operating loss | (11,264) | (24,996) | (22,347) | (11,553) |
Interest expense | 1,529 | 1,566 | 4,583 | 2,851 |
Other (income) expense, net | (1,890) | 2,107 | (9,698) | 26,082 |
Loss before income taxes | (10,903) | (28,669) | (17,232) | (40,486) |
Income tax (benefit) expense | (6,541) | 4,579 | 11,369 | 15,008 |
Net loss | $ (4,362) | $ (33,248) | $ (28,601) | $ (55,494) |
Loss per share: | ||||
Net loss per share attributable to common stockholders, basic | $ (0.05) | $ (0.42) | $ (0.36) | $ (0.7) |
Net loss per share attributable to common stockholders, diluted | $ (0.05) | $ (0.42) | $ (0.36) | $ (0.7) |
Weighted average shares outstanding: | ||||
Weighted average number of shares used in computing net loss per share, basic | 80,431 | 79,207 | 80,204 | 79,205 |
Weighted average number of shares used in computing net loss per share, diluted | 80,431 | 79,207 | 80,204 | 79,205 |
Total Software and Related Services [Member] | ||||
Total revenue | $ 125,594 | $ 110,471 | $ 414,322 | $ 384,698 |
Total cost of revenue | 22,023 | 20,844 | 69,817 | 66,753 |
License [Member] | ||||
Total revenue | 79,825 | 67,245 | 279,972 | 256,102 |
Total cost of revenue | 3,083 | 2,579 | 11,888 | 11,386 |
Maintenance and Other Services [Member] | ||||
Total revenue | 39,252 | 36,520 | 114,069 | 105,453 |
Total cost of revenue | 13,689 | 13,025 | 41,754 | 38,628 |
Total Software [Member] | ||||
Total revenue | 119,077 | 103,765 | 394,041 | 361,555 |
Total cost of revenue | 16,772 | 15,604 | 53,642 | 50,014 |
Software Related Services [Member] | ||||
Total revenue | 6,517 | 6,706 | 20,281 | 23,143 |
Total cost of revenue | 5,251 | 5,240 | 16,175 | 16,739 |
Client Engineering Services [Member] | ||||
Total revenue | 7,126 | 7,355 | 22,936 | 22,414 |
Total cost of revenue | 5,930 | 5,835 | 19,321 | 18,390 |
Other [Member] | ||||
Total revenue | 1,283 | 1,525 | 3,940 | 4,676 |
Total cost of revenue | $ 1,133 | $ 1,230 | $ 3,480 | $ 3,892 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (4,362) | $ (33,248) | $ (28,601) | $ (55,494) |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation (net of tax effect of $0 for all periods) | (8,107) | (17,817) | (2,215) | (37,929) |
Retirement related benefit plans (net of tax effect of $0, $0, $(79) and $7, respectively) | 5 | 24 | (46) | 306 |
Total other comprehensive loss | (8,102) | (17,793) | (2,261) | (37,623) |
Comprehensive loss | $ (12,464) | $ (51,041) | $ (30,862) | $ (93,117) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, tax effect | $ 0 | $ 0 | $ 0 | $ 0 |
Retirement related benefit plans, tax effect | $ 0 | $ 0 | $ (79) | $ 7 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] Class A Common Stock [Member] | Common Stock [Member] Class B Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2021 | $ 613,197 | $ 5 | $ 3 | $ 724,226 | $ (102,087) | $ (8,950) | |||
Beginning balance (in shares) at Dec. 31, 2021 | 51,524,000 | 27,745,000 | |||||||
Net Income (Loss) | 11,528 | 11,528 | |||||||
Issuance of common stock for employee stock purchase program | 4,187 | 4,187 | |||||||
Issuance of common stock for employee stock purchase program (in shares) | 77,000 | ||||||||
Exercise of stock options | 238 | 238 | |||||||
Exercise of stock options (in shares) | 86,000 | ||||||||
Vesting of restricted stock (in shares) | 324,000 | ||||||||
Stock-based compensation | 19,403 | 19,403 | |||||||
Foreign currency translation, net of tax | (4,163) | (4,163) | |||||||
Retirement related benefit plans, net of tax | 105 | 105 | |||||||
Ending balance at Mar. 31, 2022 | 618,425 | $ (26,070) | $ 5 | $ 3 | 698,045 | $ (50,009) | (66,620) | $ 23,939 | (13,008) |
Ending balance (in shares) at Mar. 31, 2022 | 52,011,000 | 27,745,000 | |||||||
Beginning balance at Dec. 31, 2021 | 613,197 | $ 5 | $ 3 | 724,226 | (102,087) | (8,950) | |||
Beginning balance (in shares) at Dec. 31, 2021 | 51,524,000 | 27,745,000 | |||||||
Net Income (Loss) | (55,494) | ||||||||
Foreign currency translation, net of tax | (37,929) | ||||||||
Retirement related benefit plans, net of tax | 306 | ||||||||
Ending balance at Sep. 30, 2022 | 535,529 | $ 5 | $ 3 | 715,736 | (133,642) | (46,573) | |||
Ending balance (in shares) at Sep. 30, 2022 | 52,377 | 27,745 | |||||||
Beginning balance at Mar. 31, 2022 | 618,425 | $ (26,070) | $ 5 | $ 3 | 698,045 | $ (50,009) | (66,620) | $ 23,939 | (13,008) |
Beginning balance (in shares) at Mar. 31, 2022 | 52,011,000 | 27,745,000 | |||||||
Net Income (Loss) | (33,774) | (33,774) | |||||||
Settlement of convertible senior notes | (29,756) | (29,756) | |||||||
Repurchase and retirement of common stock | (4,387) | (4,387) | |||||||
Repurchase and retirement of common stock, Shares | (85,000) | ||||||||
Reclassification of mezzanine equity to permanent equity | 784 | 784 | |||||||
Exercise of stock options | 1,452 | 1,452 | |||||||
Exercise of stock options (in shares) | 222,000 | ||||||||
Vesting of restricted stock (in shares) | 43,000 | ||||||||
Stock-based compensation | 21,200 | 21,200 | |||||||
Foreign currency translation, net of tax | (15,949) | (15,949) | |||||||
Retirement related benefit plans, net of tax | 177 | 177 | |||||||
Ending balance at Jun. 30, 2022 | 558,172 | $ 5 | $ 3 | 687,338 | (100,394) | (28,780) | |||
Ending balance (in shares) at Jun. 30, 2022 | 52,191,000 | 27,745,000 | |||||||
Net Income (Loss) | (33,248) | (33,248) | |||||||
Issuance of common stock for employee stock purchase program | 4,536 | 4,536 | |||||||
Issuance of common stock for employee stock purchase program (in shares) | 108 | ||||||||
Exercise of stock options | 1,152 | 1,152 | |||||||
Exercise of stock options (in shares) | 56 | ||||||||
Vesting of restricted stock (in shares) | 22 | ||||||||
Stock-based compensation | 22,710 | 22,710 | |||||||
Foreign currency translation, net of tax | (17,817) | (17,817) | |||||||
Retirement related benefit plans, net of tax | 24 | 24 | |||||||
Ending balance at Sep. 30, 2022 | 535,529 | $ 5 | $ 3 | 715,736 | (133,642) | (46,573) | |||
Ending balance (in shares) at Sep. 30, 2022 | 52,377 | 27,745 | |||||||
Beginning balance at Dec. 31, 2022 | 569,736 | $ 5 | $ 3 | 721,307 | (121,577) | (30,002) | |||
Beginning balance (in shares) at Dec. 31, 2022 | 52,277,000 | 27,745,000 | |||||||
Net Income (Loss) | (1,959) | (1,959) | |||||||
Issuance of common stock for acquisitions (in shares) | 34,000 | ||||||||
Repurchase and retirement of common stock | (4,256) | (4,256) | |||||||
Repurchase and retirement of common stock, Shares | (91,000) | ||||||||
Issuance of common stock for employee stock purchase program | 3,648 | 3,648 | |||||||
Issuance of common stock for employee stock purchase program (in shares) | 92,000 | ||||||||
Exercise of stock options | 10,324 | 10,324 | |||||||
Exercise of stock options (in shares) | 265,000 | ||||||||
Vesting of restricted stock (in shares) | 336,000 | ||||||||
Conversion from Class B to Class A common stock | 240,000 | (240,000) | |||||||
Stock-based compensation | 22,161 | 22,161 | |||||||
Foreign currency translation, net of tax | 7,232 | 7,232 | |||||||
Retirement related benefit plans, net of tax | 19 | 19 | |||||||
Ending balance at Mar. 31, 2023 | 606,905 | $ 5 | $ 3 | 753,184 | (123,536) | (22,751) | |||
Ending balance (in shares) at Mar. 31, 2023 | 53,153,000 | 27,505,000 | |||||||
Beginning balance at Dec. 31, 2022 | 569,736 | $ 5 | $ 3 | 721,307 | (121,577) | (30,002) | |||
Beginning balance (in shares) at Dec. 31, 2022 | 52,277,000 | 27,745,000 | |||||||
Net Income (Loss) | (28,601) | ||||||||
Foreign currency translation, net of tax | (2,215) | ||||||||
Retirement related benefit plans, net of tax | (46) | ||||||||
Ending balance at Sep. 30, 2023 | 634,118 | $ 5 | $ 3 | 816,551 | (150,178) | (32,263) | |||
Ending balance (in shares) at Sep. 30, 2023 | 54,351,000 | 27,045 | |||||||
Beginning balance at Mar. 31, 2023 | 606,905 | $ 5 | $ 3 | 753,184 | (123,536) | (22,751) | |||
Beginning balance (in shares) at Mar. 31, 2023 | 53,153,000 | 27,505,000 | |||||||
Net Income (Loss) | (22,280) | (22,280) | |||||||
Exercise of stock options | 13,264 | 13,264 | |||||||
Exercise of stock options (in shares) | 382,000 | ||||||||
Vesting of restricted stock (in shares) | 86,000 | ||||||||
Conversion from Class B to Class A common stock | 330,000 | (330,000) | |||||||
Stock-based compensation | 23,736 | 23,736 | |||||||
Foreign currency translation, net of tax | (1,340) | (1,340) | |||||||
Retirement related benefit plans, net of tax | (70) | (70) | |||||||
Ending balance at Jun. 30, 2023 | 620,215 | $ 5 | $ 3 | 790,184 | (145,816) | (24,161) | |||
Ending balance (in shares) at Jun. 30, 2023 | 53,951,000 | 27,175,000 | |||||||
Net Income (Loss) | (4,362) | (4,362) | |||||||
Issuance of common stock for acquisitions (in shares) | 53,000 | ||||||||
Issuance of common stock for employee stock purchase program | 3,903 | 3,903 | |||||||
Issuance of common stock for employee stock purchase program (in shares) | 91,000 | ||||||||
Exercise of stock options | 1,938 | 1,938 | |||||||
Exercise of stock options (in shares) | 79,000 | ||||||||
Vesting of restricted stock (in shares) | 47,000 | ||||||||
Conversion from Class B to Class A common stock | 130,000 | (130,000) | |||||||
Stock-based compensation | 20,526 | 20,526 | |||||||
Foreign currency translation, net of tax | (8,107) | (8,107) | |||||||
Retirement related benefit plans, net of tax | 5 | 5 | |||||||
Ending balance at Sep. 30, 2023 | $ 634,118 | $ 5 | $ 3 | $ 816,551 | $ (150,178) | $ (32,263) | |||
Ending balance (in shares) at Sep. 30, 2023 | 54,351,000 | 27,045 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (28,601) | $ (55,494) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 29,271 | 24,092 |
Stock-based compensation expense | 66,423 | 62,524 |
Amortization of debt issuance costs | 1,399 | 1,330 |
Deferred income taxes | 2,178 | 4 |
Loss (gain) on mark-to-market adjustment of contingent consideration | 4,494 | (7,482) |
Expense on repurchase of convertible senior notes | 0 | 16,621 |
Other, net | (14) | 336 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 47,226 | 13,859 |
Prepaid expenses and other current assets | 959 | 1,906 |
Other long-term assets | (1,491) | 3,134 |
Accounts payable | (5,494) | (270) |
Accrued compensation and benefits | (2,726) | (3,639) |
Other accrued expenses and current liabilities | (4,526) | (48,698) |
Deferred revenue | (3,442) | 18,311 |
Net cash provided by operating activities | 105,656 | 26,534 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (7,882) | (6,721) |
Payments for acquisition of businesses, net of cash acquired | (3,235) | (134,130) |
Other investing activities, net | (2,452) | (10,322) |
Net cash used in investing activities | (13,569) | (151,173) |
FINANCING ACTIVITIES: | ||
Proceeds from the exercise of common stock options | 25,526 | 2,840 |
Payments for repurchase and retirement of common stock | (6,255) | (4,387) |
Proceeds from employee stock purchase plan contributions | 5,772 | 6,549 |
Proceeds from issuance of convertible senior notes, net of discounts and commissions | 0 | 224,265 |
Repurchase of convertible senior notes | 0 | (192,422) |
Payments of debt issuance costs | 0 | (1,523) |
Other financing activities | (73) | (170) |
Net cash provided by financing activities | 24,970 | 35,152 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,599) | (12,142) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 114,458 | (101,629) |
Cash, cash equivalents and restricted cash at beginning of year | 316,958 | 414,012 |
Cash, cash equivalents and restricted cash at end of period | 431,416 | 312,383 |
Supplemental disclosure of cash flow: | ||
Interest paid | 2,124 | 296 |
Income taxes paid | 9,021 | 6,818 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment in accounts payable and other current liabilities | 909 | 707 |
Promissory Notes Issued And Deferred Payment Obligations For Acquisitions | $ 3,567 | $ 1,350 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net Income (Loss) | $ (4,362) | $ (22,280) | $ (1,959) | $ (33,248) | $ (33,774) | $ 11,528 | $ (28,601) | $ (55,494) |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and description of business Altair Engineering Inc. (“Altair” or the “Company”) is incorporated in the state of Delaware. The Company is a global leader in computational science and artificial intelligence enabling organizations across broad industry segments to drive smarter decisions in an increasingly connected world. Altair delivers software and cloud solutions in the areas of simulation, high-performance computing (“HPC”), data analytics, and artificial intelligence (“AI”). Altair’s products and services leverage computational science to drive innovation and intelligent decisions for a more connected, safe, and sustainable future. The Company is headquartered in Troy, Michigan. Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Accordingly, the accompanying statements do not include all the information and notes required by GAAP for complete financial statements. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the year ended December 31, 2022, included in the most recent Annual Report on Form 10-K filed with the SEC. Change in Classification of Indirect Costs Beginning in the first quarter of 2023, the Company refined its classification of certain indirect costs to reflect the way management is now reviewing the information in decision making and to improve comparability with peers. These indirect costs include certain IT, facilities, and depreciation expenses that were previously reported primarily in General and administrative expense. These indirect costs have now been reclassified to Research and development, Sales and marketing, and General and administrative expenses based on global headcount. Management believes this refined methodology better reflects the nature of the costs and financial performance of the Company. As a result, the Company’s consolidated statements of operations have been recast for prior periods presented to reflect the effects of the changes to Research and development, Sales and marketing, and General and administrative expense. There was no net impact to total operating expenses, income from operations, net income or net income per share for any periods presented. The consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of changes in stockholders’ equity, and the consolidated statements of cash flows were not affected by changes in the presentation of these costs. The following table summarizes the changes made to the consolidated statement of operations for the three and nine months ended September 30, 2022 (in thousands): Three Months Ended Nine Months Ended Previously Reported Recast Previously Reported Recast Operating expenses: Research and development $ 48,781 $ 53,092 $ 138,352 $ 150,608 Sales and marketing 39,244 41,352 114,042 120,345 General and administrative 24,677 18,258 72,613 54,054 Amortization of intangible assets 6,571 6,571 18,682 18,682 Other operating income, net ( 2,835 ) ( 2,835 ) ( 9,383 ) ( 9,383 ) Total operating expenses $ 116,438 $ 116,438 $ 334,306 $ 334,306 Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, management evaluates its significant estimates including the stand alone selling price, or SSP, for each distinct performance obligation included in customer contracts with multiple performance obligations, valuation of acquired intangible assets in business combinations, the incremental borrowing rate used in the valuation of lease liabilities, the determination of the period of benefit for capitalized costs to obtain a contract, fair value of convertible senior notes, provision for credit loss, tax valuation allowances, liabilities for uncertain tax provisions, impairment of goodwill and intangible assets, useful lives of intangible assets, and stock-based compensation. Actual results could differ from those estimates. Significant accounting policies There have been no material changes to our significant accounting policies as of and for the nine months ended September 30, 2023, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2022. |
Recent Accounting Guidance
Recent Accounting Guidance | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Guidance | 2. Recent accounting guidance Accounting standards not yet adopted Reference Rate Reform – In March 2020, the FASB issued ASU 2020-04. Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. In October 2022, the FASB Board voted to amend the sunset date of ASU 2020-04 to December 31, 2024. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures and does not expect this guidance to have a material effect on its consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from contracts with customers Disaggregation of revenue The Company disaggregates its software revenue by type of performance obligation and timing of revenue recognition as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Term licenses and other $ 70,450 $ 58,441 $ 252,540 $ 224,971 Perpetual licenses 9,375 8,804 27,432 31,131 Maintenance 37,430 34,271 109,072 100,643 Professional software services 1,822 2,249 4,997 4,810 Software related services 6,517 6,706 20,281 23,143 Client engineering services 7,126 7,355 22,936 22,414 Other 1,283 1,525 3,940 4,676 Total revenue $ 134,003 $ 119,351 $ 441,198 $ 411,788 The Company derived approximately 13.5 % and 13.7 % of its total revenue through indirect sales channels for the nine months ended September 30, 2023 and 2022, respectively. Costs to obtain a contract As of September 30, 2023, and December 31, 2022, respectively, capitalized costs to obtain a contract were $ 4.5 million and $ 3.9 million recorded in Prepaid and other current assets and $ 0.1 million and $ 0.4 million recorded in Other long-term assets in the Company’s consolidated balance sheets. Sales commissions were $ 2.4 million and $ 6.5 million, respectively, for the three and nine months ended September 30, 2023, and $ 2.1 million and $ 6.3 million, respectively, for the three and nine months ended September 30, 2022. Sales commissions were included in Sales and marketing expense in the Company’s consolidated statement of operations. Contract assets As of September 30, 2023, and December 31, 2022, respectively, contract assets were $ 6.3 million and $ 6.3 million included in Accounts receivable, and $ 3.1 million and $ 2.3 million included in Prepaid expenses and other current assets in the Company’s consolidated balance sheets. Deferred revenue Approximately $ 104.7 million of revenue recognized during the nine months ended September 30, 2023, was included in deferred revenue at the beginning of the year. Revenue allocated to remaining performance obligations represents 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. Contracted revenue not yet recognized was $ 207.9 million and $ 149.9 million as of September 30, 2023 and 2022, respectively. Of the amount recorded as of September 30, 2023, the Company expects to recognize approximately 69 % over the next 12 months and the remainder thereafter. |
Supplementary Information
Supplementary Information | 9 Months Ended |
Sep. 30, 2023 | |
Supplementary Information [Abstract] | |
Supplementary Information | 4. Supplementary Information Acquisitions 2023 Acquisitions During the three months ended September 30, 2023, the Company completed a business acquisition that was accounted for as a business combination under the acquisition method. The operating results of this acquisition have been included in the consolidated financial statements since the date of acquisition. The Company’s transaction costs related to the acquisition were not material. As of September 30, 2023, $ 5.4 million of the consideration for the acquisition was reported in goodwill in the consolidated balance sheet as preliminary pending fair value allocation. All goodwill is recorded in the Software segment. The Company expects to finalize the purchase accounting as soon as practicable, but not later than one year from the acquisition date. The acquisition was not material to the Company’s consolidated financial statements. Prior Years Acquisitions The Company finalized the valuation of the acquisition of RapidMiner as of September 30, 2023. As a result, the valuation of all 2022 acquisitions have been finalized as of September 30, 2023. There were no significant changes to the preliminary fair value of assets acquired and liabilities assumed, as previously reported. The Company recognized a $ 3.5 million gain and a $ 4.5 million loss, respectively, for the three and nine months ended September 30, 2023, and a $ 2.2 million gain and $ 7.5 million gain, respectively, for the three and nine months ended September 30, 2022, from a mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The mark-to-market adjustments were included in Other operating expense (income), net in the consolidated statements of operations. The Company’s contingent consideration balance was $ 16.5 million as of September 30, 2023 related to the World Programming acquisition, which the Company settled in October 2023 with 257,382 shares of its Class A common stock in accordance with the acquisition agreement. Cash, cash equivalents and restricted cash The Company considers all highly liquid investments with original or remaining maturities of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Restricted cash is included in other long-term assets on the consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets that sum to the total of the amounts reported in the consolidated statement of cash flows (in thousands): September 30, 2023 December 31, 2022 Cash and cash equivalents $ 431,188 $ 316,146 Restricted cash included in other long-term assets 228 812 Total cash, cash equivalents, and restricted cash $ 431,416 $ 316,958 Restricted cash represents amounts required for the payment of potential health insurance claims and term deposits for bank guarantees. Property and equipment, net Property and equipment consisted of the following (in thousands): September 30, December 31, 2023 2022 Land $ 8,361 $ 7,994 Building and improvements 17,444 16,995 Computer equipment and software 44,337 45,340 Furniture, equipment and other 11,790 13,335 Leasehold improvements 7,510 8,766 Right-of-use assets under finance leases 1,920 2,122 Total property and equipment 91,362 94,552 Less: accumulated depreciation and amortization 53,195 57,035 Property and equipment, net $ 38,167 $ 37,517 Depreciation expense, including amortization of right-of-use assets under finance leases, was $ 2.1 million and $ 6.1 million for the three and nine months ended September 30, 2023, respectively, and $ 1.7 million and $ 5.4 million for the three and nine months ended September 30, 2022, respectively. Other liabilities The following table provides the details of other accrued expenses and current liabilities (in thousands): September 30, December 31, 2023 2022 Obligations for acquisition of businesses and technology $ 19,799 $ 13,136 Income taxes payable 6,059 11,524 Accrued VAT 4,371 8,402 Accrued professional fees 2,876 3,637 Employee stock purchase plan obligations 2,194 3,969 Accrued royalties 1,849 2,593 Non-income tax liabilities 1,654 2,465 Billings in excess of cost 1,647 1,874 Defined contribution plan liabilities 1,475 1,393 Accrued interest 1,242 184 Other current liabilities 7,751 7,194 Total $ 50,917 $ 56,371 The following table provides details of other long-term liabilities (in thousands): September 30, December 31, 2023 2022 Deferred tax liabilities $ 17,712 $ 16,775 Pension and other post retirement liabilities 13,515 12,273 Other long-term liabilities 12,633 12,168 Total $ 43,860 $ 41,216 Other (income) expense, net Other (income) expense, net consists of the following (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest income $ ( 4,823 ) $ ( 1,708 ) $ ( 11,692 ) $ ( 2,008 ) Foreign exchange loss 2,933 3,815 1,994 11,469 Expense on repurchase of convertible senior notes — — — 16,621 Other (income) expense, net $ ( 1,890 ) $ 2,107 $ ( 9,698 ) $ 26,082 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and other intangible assets Goodwill The changes in the carrying amount of goodwill, which is attributable to the Software reportable segment, were as follows (in thousands): Balance as of December 31, 2022 $ 449,048 Acquisitions 5,365 Foreign currency translation and other ( 1,591 ) Balance as of September 30, 2023 $ 452,822 Other intangible assets A summary of other intangible assets is shown below (in thousands): September 30, 2023 Weighted average Gross carrying Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 - 6 years $ 137,113 $ 83,389 $ 53,724 Customer relationships 7 - 10 years 56,964 35,422 21,542 Other intangibles 4 - 10 years 1,443 489 954 Total definite-lived intangible assets 195,520 119,300 76,220 Indefinite-lived intangible assets: Trade names 10,271 10,271 Total other intangible assets $ 205,791 $ 119,300 $ 86,491 December 31, 2022 Weighted average Gross carrying Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 - 6 years $ 135,703 $ 67,665 $ 68,038 Customer relationships 7 - 10 years 57,143 29,148 27,995 Other intangibles 4 - 10 years 1,448 298 1,150 Total definite-lived intangible assets 194,294 97,111 97,183 Indefinite-lived intangible assets: Trade names 10,426 10,426 Total other intangible assets $ 204,720 $ 97,111 $ 107,609 Amortization expense related to intangible assets was $ 7.7 million and $ 23.1 million for the three and nine months ended September 30, 2023, respectively, and $ 6.6 million and $ 18.7 million for the three and nine months ended September 30, 2022, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Convertible senior notes 2027 Notes In June 2022, the Company issued $ 230.0 million aggregate principal amount of 1.750 % convertible senior notes due in 2027 (the "2027 Notes"), which includes the initial purchaser’s exercise in full of its option to purchase an additional $ 30.0 million principal amount of the 2027 Notes, in a private offering. The net proceeds from the issuance of the 2027 Notes was $ 224.3 million after deducting discounts, commissions and estimated issuance costs. The 2027 Notes bear interest at a rate of 1.750 % per year, payable semi-annually in arrears on June 15 and December 15 of each year, which commenced on December 15, 2022 . The 2027 Notes mature on June 15, 2027, unless, earlier repurchased or redeemed by the Company or converted pursuant to their terms. The 2027 Notes have an initial conversion rate of 13.9505 shares of the Company's Class A common stock per $ 1,000 principal amount of 2027 Notes, which is equivalent to an initial conversion price of approximately $ 71.68 per share of its Class A common stock. Refer to the Company’s consolidated financial statements for the year ended December 31, 2022, for details of the issuance of the 2027 Notes. The Company may settle the 2027 Notes in cash, shares of Class A common stock or a combination of cash and shares of the Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the Indenture. During the period ended September 30, 2023, the conditions allowing holders of the 2027 Notes to convert were not met. Therefore, the 2027 Notes remained classified as long-term debt on the consolidated balance sheet as of September 30, 2023. 2024 Notes In June 2019, the Company issued $ 230.0 million aggregate principal amount of 0.25 % convertible senior notes due in 2024 (the "2024 Notes" and together with the 2027 Notes, the “Convertible Notes”), which includes the underwriters’ exercise in full of their option to purchase an additional $ 30.0 million principal amount of the 2024 Notes, in a public offering. The net proceeds from the issuance of the 2024 Notes were $ 221.9 million after deducting the underwriting discounts and commissions and estimated issuance costs. The 2024 Notes bear interest at a rate of 0.25 % per year, payable semi-annually in arrears on June 1 and December 1 of each year. The 2024 Notes mature on June 1, 2024 , unless, earlier repurchased or redeemed by the Company or converted pursuant to their terms. The 2024 Notes have an initial conversion rate of 21.5049 shares of the Company's Class A common stock per $ 1,000 principal amount of 2024 Notes, which is equivalent to an initial conversion price of approximately $ 46.50 per share of its Class A common stock. Refer to the Company’s consolidated financial statements for the year ended December 31, 2022, for details of the issuance of the 2024 Notes. During the year ended December 31, 2022, using proceeds from the issuance of the 2027 Notes, the Company entered into separate privately negotiated transactions with certain holders of the 2024 Notes to repurchase and retire $ 148.2 million aggregate principal amount of the 2024 Notes for an aggregate amount of $ 192.4 million of cash including accrued and unpaid interest. As of September 30, 2023, $ 81.8 million principal amount of the 2024 Notes remained outstanding. The Company may settle the 2024 Notes in cash, shares of Class A common stock or a combination of cash and shares of the Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture for the 2024 Notes. For at least twenty trading days during the last thirty consecutive trading days in the quarter ended September 30, 2023, the last reported sale price of the Company’s Class A common stock was greater than or equal to 130 % of the conversion price of the 2024 Notes. As a result, the 2024 Notes were convertible at the option of the holders and were classified as current liabilities on the consolidated balance sheet as of September 30, 2023. The net carrying value of the liability component of the 2027 and 2024 Notes was as follows (in thousands): September 30, 2023 December 31, 2022 2027 Notes 2024 Notes 2027 Notes 2024 Notes Principal $ 230,000 $ 81,754 $ 230,000 $ 81,754 Less: unamortized debt issuance costs 4,365 435 5,247 903 Net carrying amount $ 225,635 $ 81,319 $ 224,753 $ 80,851 The interest expense recognized related to the 2027 and 2024 Notes was as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Contractual interest expense $ 1,061 $ 1,057 $ 3,182 $ 1,395 Amortization of debt issuance costs and discount 453 481 1,352 1,299 Total $ 1,514 $ 1,538 $ 4,534 $ 2,694 As of September 30, 2023, the “if converted value” of the 2027 Notes did not exceed the principal amount, and the “if converted value” of the 2024 Notes exceeded the principal amount by $ 28.2 million. Credit agreement Revolving credit facility The Company has a $ 200.0 million credit facility with a maturity date of December 31, 2025 (“2019 Amended Credit Agreement”). As of September 30, 2023, there were no outstanding borrowings under the 2019 Amended Credit Agreement, there was $ 200.0 million available for future borrowing, and the Company was in compliance with all the financial covenants. The 2019 Amended Credit Agreement is available for general corporate purposes, including working capital, capital expenditures, and permitted acquisitions. For additional information about the 2019 Amended Credit Agreement, refer to the Company’s consolidated financial statements for the year ended December 31, 2022, included in our Annual Report on Form 10-K for the year ended December 31, 2022. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair value measurements The accounting guidance for fair value, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The framework for measuring fair value consists of a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1 – Quoted prices in active markets for identical assets and liabilities at the measurement date; Level 2 – Observable inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The carrying value of cash and cash equivalents, accounts receivable, net and accounts payable approximate fair value due to their short maturities. Interest on the Company’s line of credit is at a variable rate, and as such the debt obligation outstanding approximates fair value. The carrying value of the Company’s Convertible Notes are at face value less unamortized issuance costs. The estimated fair values of the Convertible Notes, which the Company has classified as Level 2 financial instruments, were determined based on quoted bid prices of the Convertible Notes on the last trading day of each reporting period. As of September 30, 2023, the estimated fair value of the 2027 Notes and 2024 Notes was $ 244.4 million and $ 111.1 million, respectively, and is presented for required disclosure purposes only. For further information on the Convertible Notes, see Note 6. – Debt. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 8. Stock-based compensation 2017 stock-based compensation plan In 2017, the Company’s board of directors adopted the 2017 Equity Incentive Plan (“2017 Plan”), which was approved by the Company’s stockholders. The 2017 Plan provides for the grant of incentive stock options to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, other cash-based awards and other stock-based awards to the Company’s employees, directors and consultants and the Company’s parent, subsidiary, and affiliate corporations’ employees and consultants. The 2017 Plan has 16,999,318 authorized shares of the Company’s Class A common stock reserved for issuance. As of September 30, 2023, the Company had 2,622,668 shares of its common stock available for future issuances under the 2017 Plan. The following table summarizes the restricted stock units, or RSUs, awarded under the 2017 Plan for the period: Number of RSUs Outstanding as of December 31, 2022 1,230,774 Granted 398,771 Vested ( 468,759 ) Forfeited ( 21,765 ) Outstanding as of September 30, 2023 1,139,021 The weighted average grant date fair value of the RSUs was $ 65.25 and the RSUs generally vest in four equal annual installments. Total compensation cost related to nonvested awards not yet recognized as of September 30, 2023, totaled $ 71.3 million, and is expected to be recognized over a weighted average period of 2.3 years. The following table summarizes the stock option activity under the 2017 Plan for the period: Number of options Weighted average Weighted average Aggregate Outstanding as of December 31, 2022 7,491,491 $ 50.39 8.5 $ 11.5 Granted 1,017,785 $ 65.19 Exercised ( 566,170 ) $ 44.44 Forfeited ( 98,959 ) $ 56.53 Outstanding as of September 30, 2023 7,844,147 $ 52.67 8.1 $ 91.5 Exercisable as of September 30, 2023 2,775,427 $ 47.37 7.0 $ 45.0 The total intrinsic value of the 2017 Plan stock options exercised during the nine months ended September 30, 2023, was $ 14.3 million. 2021 Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (“ESPP”) which allows eligible employees to purchase shares of common stock through payroll deductions and is intended to qualify under Section 423 of the Internal Revenue Code. The maximum number of shares available for issuance under the ESPP is 3,200,000 shares of the Company’s Class A common stock. As of September 30, 2023, the Company had 2,831,824 shares of its common stock available for future issuances under the ESPP. The purchase price for each share of common stock purchased under the ESPP will be 85 % of the lower of (a) the fair market value per share on the first day of the applicable offering period or (b) the fair market value per share on the applicable purchase date. The Company issued 183,136 shares of common stock under the ESPP during the nine months ended September 30, 2023. As of September 30, 2023 and December 31, 2022, respectively, $ 2.2 million and $ 4.0 million had been withheld on behalf of employees for future purchases under the ESPP due to the timing of payroll deductions and was reported in current liabilities. Stock-based compensation expense related to the ESPP was $ 0.6 million and $ 1.8 million of for the three and nine months ended September 30, 2023, respectively, and $ 0.7 million and $ 2.0 million for the three and nine months ended September 30, 2022, respectively. Stock-based compensation expense Stock-based compensation expense was recorded as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cost of revenue – software $ 2,468 $ 2,332 $ 7,792 $ 6,265 Research and development 7,824 10,243 26,510 26,580 Sales and marketing 6,933 7,806 22,105 22,505 General and administrative 3,301 2,329 10,016 7,174 Total stock-based compensation expense $ 20,526 $ 22,710 $ 66,423 $ 62,524 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net loss per share | 9. Net loss per share Basic net loss per share attributable to common stockholders is computed using the weighted average number of shares of common stock outstanding for the period, excluding dilutive securities, stock options, RSUs, and ESPP shares. Diluted net loss per share attributable to common stockholders is based upon the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares, including the effect of dilutive securities, stock options, RSUs and ESPP shares under the treasury stock method. The Company applies the if-converted method for convertible instruments when calculating diluted earnings per share. Under the if-converted method, shares related to convertible senior notes, to the extent dilutive, are assumed to be converted into common stock at the beginning of the period. The following table sets forth the computation of the numerators and denominators used in the basic and diluted net loss per share amounts (in thousands, except per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ ( 4,362 ) $ ( 33,248 ) $ ( 28,601 ) $ ( 55,494 ) Interest expense related to Convertible Notes, net of tax — — — — Numerator for diluted loss per share $ ( 4,362 ) $ ( 33,248 ) $ ( 28,601 ) $ ( 55,494 ) Denominator: Denominator for basic loss per share— 80,431 79,207 80,204 79,205 Effect of dilutive securities, stock options, RSUs and — — — — Denominator for dilutive loss per share 80,431 79,207 80,204 79,205 Net loss per share attributable to common $ ( 0.05 ) $ ( 0.42 ) $ ( 0.36 ) $ ( 0.70 ) Anti-dilutive shares excluded from the computation of diluted net loss per share were as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options and ESPP shares 3,158 3,926 2,895 2,549 Convertible shares 4,967 4,967 4,967 4,954 Total shares excluded from calculation 8,125 8,893 7,862 7,503 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income taxes The Company’s income tax expense and effective tax rate for the three and nine months ended September 30, 2023 and 2022, were as follows (in thousands, except percentages): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Income tax (benefit) expense $ ( 6,541 ) $ 4,579 $ 11,369 $ 15,008 Effective tax rate 60 % ( 16 %) ( 66 %) ( 37 %) The tax rate is affected by the Company being a U.S. resident taxpayer, the tax rates in the U.S. and other jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction and the relative amount of losses or income for which no benefit or expense is recognized due to a valuation allowance. The change in the effective tax rate for the three months ended September 30, 2023 as compared to September 30, 2022, was primarily attributable to the effects of tax elections made by the Company during the quarter. The Company's effective tax rate for the nine months ended September 30, 2023 and 2022 also includes net discrete expense of $ 7.2 million and $ 4.3 million, respectively, primarily related to changes in tax laws, withholding taxes on royalties, changes in reserves, changes in accruals for unremitted earnings and other adjustments. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 11. Accumulated other comprehensive loss The components of accumulated other comprehensive loss were as follows (in thousands): Foreign currency translation Retirement related Total Balance as of December 31, 2022 $ ( 30,484 ) $ 482 $ ( 30,002 ) Other comprehensive income before reclassification ( 2,215 ) 33 ( 2,182 ) Amounts reclassified from accumulated other comprehensive income — — — Tax effects — ( 79 ) ( 79 ) Other comprehensive income ( 2,215 ) ( 46 ) ( 2,261 ) Balance as of September 30, 2023 $ ( 32,699 ) $ 436 $ ( 32,263 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and contingencies World Programming The Company acquired World Programming Limited and a related company (collectively, “World Programming”) in December 2021. In 2018, SAS Institute, Inc. (“SAS”) filed litigation in the United States District Court for the Eastern District of Texas (the “Texas Court”) asserting that World Programming infringed SAS copyrights and patents. SAS voluntarily dismissed with prejudice its patent claims, and the Texas Court entered judgment in favor of World Programming on the copyright claims. SAS appealed the Texas Court judgment to the United States Court of Appeals for the Federal Circuit (the “Court of Appeals”). Oral arguments were held before the Court of Appeal on January 13, 2022. On April 6, 2023, the Court of Appeals issued its decision in favor of World Programming by affirming the Texas Court’s dismissal of SAS’s copyright claims. On September 3, 2023, the Company was notified that SAS elected not to file its petition for a writ of certiorari within the period in which SAS was eligible to file such petition. With such period having expired, the judgment of the Texas Court in favor of World Programming is now final and closed. Other legal proceedings From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. The Company has received, and may in the future continue to receive, claims from third parties asserting, among other things, infringement of their intellectual property rights. Future litigation may be necessary to defend the Company, its partners, and its customers by determining the scope, enforceability, and validity of third-party proprietary rights, or to establish and enforce the Company’s proprietary rights. Effects of proceedings The results of any current or future litigation cannot be predicted with certainty and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment information The Company defines its operating segments as components of its business where separate financial information is available and used by the chief operating decision maker (“CODM”) in deciding how to allocate resources to its segments and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has identified two reportable segments for financial reporting purposes: Software and Client Engineering Services. The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) adjusted for income tax expense (benefit), interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management. Adjusted EBITDA includes an allocation of corporate headquarters costs. The following tables are in thousands: Three months ended September 30, 2023 Software CES All other Total Revenue $ 125,594 $ 7,126 $ 1,283 $ 134,003 Adjusted EBITDA $ 15,312 $ 502 $ ( 360 ) $ 15,454 Three months ended September 30, 2022 Software CES All other Total Revenue $ 110,471 $ 7,355 $ 1,525 $ 119,351 Adjusted EBITDA $ 6,368 $ 856 $ ( 395 ) $ 6,829 Nine months ended September 30, 2023 Software CES All other Total Revenue $ 414,322 $ 22,936 $ 3,940 $ 441,198 Adjusted EBITDA $ 75,791 $ 1,544 $ ( 1,770 ) $ 75,565 Nine months ended September 30, 2022 Software CES All other Total Revenue $ 384,698 $ 22,414 $ 4,676 $ 411,788 Adjusted EBITDA $ 69,083 $ 2,060 $ ( 1,284 ) $ 69,859 Three Months Ended Nine Months Ended 2023 2022 2023 2022 Reconciliation of Adjusted EBITDA to U.S. GAAP Adjusted EBITDA $ 15,454 $ 6,829 $ 75,565 $ 69,859 Stock-based compensation expense ( 20,526 ) ( 22,710 ) ( 66,423 ) ( 62,524 ) Interest expense ( 1,529 ) ( 1,566 ) ( 4,583 ) ( 2,851 ) Depreciation and amortization ( 9,783 ) ( 8,273 ) ( 29,271 ) ( 24,092 ) Special adjustments, interest income and other (1) 5,481 ( 2,949 ) 7,480 ( 20,878 ) Loss before income taxes $ ( 10,903 ) $ ( 28,669 ) $ ( 17,232 ) $ ( 40,486 ) (1) The three months ended September 30, 2023, includes $ 4.8 million of interest income, a $ 3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 2.8 million of currency losses on acquisition-related intercompany loans. The three months ended September 30, 2022, includes $ 6.8 million currency losses on acquisition-related intercompany loans, a $ 2.2 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 1.7 million of interest income. The nine months ended September 30, 2023, includes $ 11.7 million of interest income, a $ 4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 0.3 million of currency gains on acquisition-related intercompany loans. The nine months ended September 30, 2022, includes $ 16.6 million expense on repurchase of convertible senior notes, $ 13.7 million of currency losses on acquisition-related intercompany loans, a $ 7.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 2.0 million of interest income. |
Organization and Description _2
Organization and Description of Business (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Accordingly, the accompanying statements do not include all the information and notes required by GAAP for complete financial statements. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the year ended December 31, 2022, included in the most recent Annual Report on Form 10-K filed with the SEC. |
Change in Presentation of Costs | Change in Classification of Indirect Costs Beginning in the first quarter of 2023, the Company refined its classification of certain indirect costs to reflect the way management is now reviewing the information in decision making and to improve comparability with peers. These indirect costs include certain IT, facilities, and depreciation expenses that were previously reported primarily in General and administrative expense. These indirect costs have now been reclassified to Research and development, Sales and marketing, and General and administrative expenses based on global headcount. Management believes this refined methodology better reflects the nature of the costs and financial performance of the Company. As a result, the Company’s consolidated statements of operations have been recast for prior periods presented to reflect the effects of the changes to Research and development, Sales and marketing, and General and administrative expense. There was no net impact to total operating expenses, income from operations, net income or net income per share for any periods presented. The consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of changes in stockholders’ equity, and the consolidated statements of cash flows were not affected by changes in the presentation of these costs. The following table summarizes the changes made to the consolidated statement of operations for the three and nine months ended September 30, 2022 (in thousands): Three Months Ended Nine Months Ended Previously Reported Recast Previously Reported Recast Operating expenses: Research and development $ 48,781 $ 53,092 $ 138,352 $ 150,608 Sales and marketing 39,244 41,352 114,042 120,345 General and administrative 24,677 18,258 72,613 54,054 Amortization of intangible assets 6,571 6,571 18,682 18,682 Other operating income, net ( 2,835 ) ( 2,835 ) ( 9,383 ) ( 9,383 ) Total operating expenses $ 116,438 $ 116,438 $ 334,306 $ 334,306 |
Use of Estimates | Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, management evaluates its significant estimates including the stand alone selling price, or SSP, for each distinct performance obligation included in customer contracts with multiple performance obligations, valuation of acquired intangible assets in business combinations, the incremental borrowing rate used in the valuation of lease liabilities, the determination of the period of benefit for capitalized costs to obtain a contract, fair value of convertible senior notes, provision for credit loss, tax valuation allowances, liabilities for uncertain tax provisions, impairment of goodwill and intangible assets, useful lives of intangible assets, and stock-based compensation. Actual results could differ from those estimates. |
Significant Accounting Policies | Significant accounting policies There have been no material changes to our significant accounting policies as of and for the nine months ended September 30, 2023, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2022. |
Recent Accounting Guidance | Accounting standards not yet adopted Reference Rate Reform – In March 2020, the FASB issued ASU 2020-04. Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. In October 2022, the FASB Board voted to amend the sunset date of ASU 2020-04 to December 31, 2024. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures and does not expect this guidance to have a material effect on its consolidated financial statements. |
Organization and Description _3
Organization and Description of Business (Policies) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Changes Made to the Consolidated Statement of Income | The following table summarizes the changes made to the consolidated statement of operations for the three and nine months ended September 30, 2022 (in thousands): Three Months Ended Nine Months Ended Previously Reported Recast Previously Reported Recast Operating expenses: Research and development $ 48,781 $ 53,092 $ 138,352 $ 150,608 Sales and marketing 39,244 41,352 114,042 120,345 General and administrative 24,677 18,258 72,613 54,054 Amortization of intangible assets 6,571 6,571 18,682 18,682 Other operating income, net ( 2,835 ) ( 2,835 ) ( 9,383 ) ( 9,383 ) Total operating expenses $ 116,438 $ 116,438 $ 334,306 $ 334,306 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The Company disaggregates its software revenue by type of performance obligation and timing of revenue recognition as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Term licenses and other $ 70,450 $ 58,441 $ 252,540 $ 224,971 Perpetual licenses 9,375 8,804 27,432 31,131 Maintenance 37,430 34,271 109,072 100,643 Professional software services 1,822 2,249 4,997 4,810 Software related services 6,517 6,706 20,281 23,143 Client engineering services 7,126 7,355 22,936 22,414 Other 1,283 1,525 3,940 4,676 Total revenue $ 134,003 $ 119,351 $ 441,198 $ 411,788 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Supplementary Information [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets that sum to the total of the amounts reported in the consolidated statement of cash flows (in thousands): September 30, 2023 December 31, 2022 Cash and cash equivalents $ 431,188 $ 316,146 Restricted cash included in other long-term assets 228 812 Total cash, cash equivalents, and restricted cash $ 431,416 $ 316,958 |
Summary of Property and Equipment | Property and equipment consisted of the following (in thousands): September 30, December 31, 2023 2022 Land $ 8,361 $ 7,994 Building and improvements 17,444 16,995 Computer equipment and software 44,337 45,340 Furniture, equipment and other 11,790 13,335 Leasehold improvements 7,510 8,766 Right-of-use assets under finance leases 1,920 2,122 Total property and equipment 91,362 94,552 Less: accumulated depreciation and amortization 53,195 57,035 Property and equipment, net $ 38,167 $ 37,517 |
Summary of Other Accrued Expenses and Current Liabilities | The following table provides the details of other accrued expenses and current liabilities (in thousands): September 30, December 31, 2023 2022 Obligations for acquisition of businesses and technology $ 19,799 $ 13,136 Income taxes payable 6,059 11,524 Accrued VAT 4,371 8,402 Accrued professional fees 2,876 3,637 Employee stock purchase plan obligations 2,194 3,969 Accrued royalties 1,849 2,593 Non-income tax liabilities 1,654 2,465 Billings in excess of cost 1,647 1,874 Defined contribution plan liabilities 1,475 1,393 Accrued interest 1,242 184 Other current liabilities 7,751 7,194 Total $ 50,917 $ 56,371 |
Summary of Other Long-term Liabilities | The following table provides details of other long-term liabilities (in thousands): September 30, December 31, 2023 2022 Deferred tax liabilities $ 17,712 $ 16,775 Pension and other post retirement liabilities 13,515 12,273 Other long-term liabilities 12,633 12,168 Total $ 43,860 $ 41,216 |
Schedule of Other (income) Expense, Net | Other (income) expense, net consists of the following (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest income $ ( 4,823 ) $ ( 1,708 ) $ ( 11,692 ) $ ( 2,008 ) Foreign exchange loss 2,933 3,815 1,994 11,469 Expense on repurchase of convertible senior notes — — — 16,621 Other (income) expense, net $ ( 1,890 ) $ 2,107 $ ( 9,698 ) $ 26,082 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill Attributable to Software Reporting Segment | The changes in the carrying amount of goodwill, which is attributable to the Software reportable segment, were as follows (in thousands): Balance as of December 31, 2022 $ 449,048 Acquisitions 5,365 Foreign currency translation and other ( 1,591 ) Balance as of September 30, 2023 $ 452,822 |
Schedule of Other Intangible Assets | A summary of other intangible assets is shown below (in thousands): September 30, 2023 Weighted average Gross carrying Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 - 6 years $ 137,113 $ 83,389 $ 53,724 Customer relationships 7 - 10 years 56,964 35,422 21,542 Other intangibles 4 - 10 years 1,443 489 954 Total definite-lived intangible assets 195,520 119,300 76,220 Indefinite-lived intangible assets: Trade names 10,271 10,271 Total other intangible assets $ 205,791 $ 119,300 $ 86,491 December 31, 2022 Weighted average Gross carrying Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 - 6 years $ 135,703 $ 67,665 $ 68,038 Customer relationships 7 - 10 years 57,143 29,148 27,995 Other intangibles 4 - 10 years 1,448 298 1,150 Total definite-lived intangible assets 194,294 97,111 97,183 Indefinite-lived intangible assets: Trade names 10,426 10,426 Total other intangible assets $ 204,720 $ 97,111 $ 107,609 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | The net carrying value of the liability component of the 2027 and 2024 Notes was as follows (in thousands): September 30, 2023 December 31, 2022 2027 Notes 2024 Notes 2027 Notes 2024 Notes Principal $ 230,000 $ 81,754 $ 230,000 $ 81,754 Less: unamortized debt issuance costs 4,365 435 5,247 903 Net carrying amount $ 225,635 $ 81,319 $ 224,753 $ 80,851 |
Schedule of Interest Expense Related to Convertible Notes | The interest expense recognized related to the 2027 and 2024 Notes was as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Contractual interest expense $ 1,061 $ 1,057 $ 3,182 $ 1,395 Amortization of debt issuance costs and discount 453 481 1,352 1,299 Total $ 1,514 $ 1,538 $ 4,534 $ 2,694 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the 2017 Plan for the period: Number of options Weighted average Weighted average Aggregate Outstanding as of December 31, 2022 7,491,491 $ 50.39 8.5 $ 11.5 Granted 1,017,785 $ 65.19 Exercised ( 566,170 ) $ 44.44 Forfeited ( 98,959 ) $ 56.53 Outstanding as of September 30, 2023 7,844,147 $ 52.67 8.1 $ 91.5 Exercisable as of September 30, 2023 2,775,427 $ 47.37 7.0 $ 45.0 |
Summary of Stock-Based Compensation | Stock-based compensation expense was recorded as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cost of revenue – software $ 2,468 $ 2,332 $ 7,792 $ 6,265 Research and development 7,824 10,243 26,510 26,580 Sales and marketing 6,933 7,806 22,105 22,505 General and administrative 3,301 2,329 10,016 7,174 Total stock-based compensation expense $ 20,526 $ 22,710 $ 66,423 $ 62,524 |
2017 Plan [Member] | |
Summary of Restricted Stock Units Awarded | The following table summarizes the restricted stock units, or RSUs, awarded under the 2017 Plan for the period: Number of RSUs Outstanding as of December 31, 2022 1,230,774 Granted 398,771 Vested ( 468,759 ) Forfeited ( 21,765 ) Outstanding as of September 30, 2023 1,139,021 |
Net (loss) income per share (Ta
Net (loss) income per share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation of Numerators and Denominators Used in Basic and Diluted Net loss Per Share Amounts | The following table sets forth the computation of the numerators and denominators used in the basic and diluted net loss per share amounts (in thousands, except per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ ( 4,362 ) $ ( 33,248 ) $ ( 28,601 ) $ ( 55,494 ) Interest expense related to Convertible Notes, net of tax — — — — Numerator for diluted loss per share $ ( 4,362 ) $ ( 33,248 ) $ ( 28,601 ) $ ( 55,494 ) Denominator: Denominator for basic loss per share— 80,431 79,207 80,204 79,205 Effect of dilutive securities, stock options, RSUs and — — — — Denominator for dilutive loss per share 80,431 79,207 80,204 79,205 Net loss per share attributable to common $ ( 0.05 ) $ ( 0.42 ) $ ( 0.36 ) $ ( 0.70 ) |
Schedule of Anti-dilutive shares excluded from the computation of diluted net loss per share | Anti-dilutive shares excluded from the computation of diluted net loss per share were as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options and ESPP shares 3,158 3,926 2,895 2,549 Convertible shares 4,967 4,967 4,967 4,954 Total shares excluded from calculation 8,125 8,893 7,862 7,503 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense and Effective Tax Rate | The Company’s income tax expense and effective tax rate for the three and nine months ended September 30, 2023 and 2022, were as follows (in thousands, except percentages): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Income tax (benefit) expense $ ( 6,541 ) $ 4,579 $ 11,369 $ 15,008 Effective tax rate 60 % ( 16 %) ( 66 %) ( 37 %) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss were as follows (in thousands): Foreign currency translation Retirement related Total Balance as of December 31, 2022 $ ( 30,484 ) $ 482 $ ( 30,002 ) Other comprehensive income before reclassification ( 2,215 ) 33 ( 2,182 ) Amounts reclassified from accumulated other comprehensive income — — — Tax effects — ( 79 ) ( 79 ) Other comprehensive income ( 2,215 ) ( 46 ) ( 2,261 ) Balance as of September 30, 2023 $ ( 32,699 ) $ 436 $ ( 32,263 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables are in thousands: Three months ended September 30, 2023 Software CES All other Total Revenue $ 125,594 $ 7,126 $ 1,283 $ 134,003 Adjusted EBITDA $ 15,312 $ 502 $ ( 360 ) $ 15,454 Three months ended September 30, 2022 Software CES All other Total Revenue $ 110,471 $ 7,355 $ 1,525 $ 119,351 Adjusted EBITDA $ 6,368 $ 856 $ ( 395 ) $ 6,829 Nine months ended September 30, 2023 Software CES All other Total Revenue $ 414,322 $ 22,936 $ 3,940 $ 441,198 Adjusted EBITDA $ 75,791 $ 1,544 $ ( 1,770 ) $ 75,565 Nine months ended September 30, 2022 Software CES All other Total Revenue $ 384,698 $ 22,414 $ 4,676 $ 411,788 Adjusted EBITDA $ 69,083 $ 2,060 $ ( 1,284 ) $ 69,859 |
Reconciliation of U.S. GAAP (Loss) Income Before Income Taxes to Adjusted EBITDA | Three Months Ended Nine Months Ended 2023 2022 2023 2022 Reconciliation of Adjusted EBITDA to U.S. GAAP Adjusted EBITDA $ 15,454 $ 6,829 $ 75,565 $ 69,859 Stock-based compensation expense ( 20,526 ) ( 22,710 ) ( 66,423 ) ( 62,524 ) Interest expense ( 1,529 ) ( 1,566 ) ( 4,583 ) ( 2,851 ) Depreciation and amortization ( 9,783 ) ( 8,273 ) ( 29,271 ) ( 24,092 ) Special adjustments, interest income and other (1) 5,481 ( 2,949 ) 7,480 ( 20,878 ) Loss before income taxes $ ( 10,903 ) $ ( 28,669 ) $ ( 17,232 ) $ ( 40,486 ) (1) The three months ended September 30, 2023, includes $ 4.8 million of interest income, a $ 3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 2.8 million of currency losses on acquisition-related intercompany loans. The three months ended September 30, 2022, includes $ 6.8 million currency losses on acquisition-related intercompany loans, a $ 2.2 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 1.7 million of interest income. The nine months ended September 30, 2023, includes $ 11.7 million of interest income, a $ 4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 0.3 million of currency gains on acquisition-related intercompany loans. The nine months ended September 30, 2022, includes $ 16.6 million expense on repurchase of convertible senior notes, $ 13.7 million of currency losses on acquisition-related intercompany loans, a $ 7.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 2.0 million of interest income. |
Organization and Description _4
Organization and Description of Business (Policies) - Schedule of Changes Made to the Consolidated Statement Of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Research and development | $ 51,598 | $ 53,092 | $ 160,126 | $ 150,608 |
Sales and marketing | 44,069 | 41,352 | 132,543 | 120,345 |
General and administrative | 17,218 | 18,258 | 53,791 | 54,054 |
Amortization of intangible assets | 7,704 | 6,571 | 23,143 | 18,682 |
Other operating (income) expense, net | (4,408) | (2,835) | 1,324 | (9,383) |
Total operating expenses | $ 116,181 | 116,438 | $ 370,927 | 334,306 |
Previously Reported [Member] | ||||
Research and development | 48,781 | 138,352 | ||
Sales and marketing | 39,244 | 114,042 | ||
General and administrative | 24,677 | 72,613 | ||
Amortization of intangible assets | 6,571 | 18,682 | ||
Other operating (income) expense, net | (2,835) | (9,383) | ||
Total operating expenses | 116,438 | 334,306 | ||
Recast [Member] | ||||
Research and development | 53,092 | 150,608 | ||
Sales and marketing | 41,352 | 120,345 | ||
General and administrative | 18,258 | 54,054 | ||
Amortization of intangible assets | 6,571 | 18,682 | ||
Other operating (income) expense, net | (2,835) | (9,383) | ||
Total operating expenses | $ 116,438 | $ 334,306 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 134,003 | $ 119,351 | $ 441,198 | $ 411,788 |
Term licenses and other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 70,450 | 58,441 | 252,540 | 224,971 |
Perpetual licenses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 9,375 | 8,804 | 27,432 | 31,131 |
Maintenance [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 37,430 | 34,271 | 109,072 | 100,643 |
Professional software services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,822 | 2,249 | 4,997 | 4,810 |
Software related services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,517 | 6,706 | 20,281 | 23,143 |
Client Engineering Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 7,126 | 7,355 | 22,936 | 22,414 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 1,283 | $ 1,525 | $ 3,940 | $ 4,676 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue From Contracts With Customers [Line Items] | |||||
Deferred revenue, revenue recognized | $ 104.7 | ||||
Contracted revenue not yet recognized | $ 207.9 | $ 149.9 | $ 207.9 | $ 149.9 | |
Contracted revenue recognize percentage | 69% | 69% | |||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Software [Member] | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Percentage of net revenues through indirect channels | 13.50% | 13.70% | |||
Sales and Marketing Expense [Member] | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Sales commissions | $ 2.4 | $ 2.1 | $ 6.5 | $ 6.3 | |
Prepaid and Other Current Assets [Member] | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Capitalized contract cost net, current | 4.5 | 4.5 | $ 3.9 | ||
Contract assets | 3.1 | 3.1 | 2.3 | ||
Other Long-Term Assets [Member] | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Capitalized contract cost net, noncurrent | 0.1 | 0.1 | 0.4 | ||
Accounts Receivable [Member] | |||||
Revenue From Contracts With Customers [Line Items] | |||||
Contract assets | $ 6.3 | $ 6.3 | $ 6.3 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail)1 | Sep. 30, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 | |
Revenue From Contracts With Customers [Line Items] | |
Revenue, remaining contractual obligation, expected to recognize, period | 12 months |
Supplementary Information - Rec
Supplementary Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Supplementary Information [Abstract] | ||||
Cash and cash equivalents | $ 431,188 | $ 316,146 | ||
Restricted cash included in other long-term assets | 228 | 812 | ||
Total cash, cash equivalents, and restricted cash | $ 431,416 | $ 316,958 | $ 312,383 | $ 414,012 |
Supplementary Information - Sum
Supplementary Information - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 91,362 | $ 94,552 |
Less: accumulated depreciation and amortization | 53,195 | 57,035 |
Property and equipment, net | 38,167 | 37,517 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,361 | 7,994 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,444 | 16,995 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 44,337 | 45,340 |
Furniture Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,790 | 13,335 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,510 | 8,766 |
Right-of-Use Assets Under Finance Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,920 | $ 2,122 |
Supplementary Information - Add
Supplementary Information - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Noncash or Part Noncash Acquisitions [Line Items] | |||||
Depreciation expense, including amortization of right-of-use assets under finance leases | $ 2,100 | $ 1,700 | $ 6,100 | $ 5,400 | |
Loss (gain) on mark-to-market adjustment of contingent consideration | (4,494) | 7,482 | |||
2023 Acquisitions [Member] | |||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||
Consideration for the business acquisition | 5,400 | 5,400 | |||
2021 Acquisitions [Member] | |||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||
Loss (gain) on mark-to-market adjustment of contingent consideration | 3,500 | $ 2,200 | (4,500) | $ 7,500 | |
Business acquisition, Contingent consideration liability | $ 16,500 | $ 16,500 | |||
Class A Common Stock [Member] | 2021 Acquisitions [Member] | Subsequent Event [Member] | |||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||
Business acquisition, Equity interest issued, Number of shares | 257,382 |
Supplementary Information - S_2
Supplementary Information - Summary of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Obligations for acquisition of businesses and technology | $ 19,799 | $ 13,136 |
Income taxes payable | 6,059 | 11,524 |
Accrued VAT | 4,371 | 8,402 |
Accrued professional fees | 2,876 | 3,637 |
Employee stock purchase plan obligations | 2,194 | 3,969 |
Accrued royalties | 1,849 | 2,593 |
Non-income tax liabilities | 1,654 | 2,465 |
Billings in excess of cost | 1,647 | 1,874 |
Defined contribution plan liabilities | 1,475 | 1,393 |
Accrued interest | 1,242 | 184 |
Other current liabilities | 7,751 | 7,194 |
Total | $ 50,917 | $ 56,371 |
Supplementary Information - S_3
Supplementary Information - Summary of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Deferred tax liabilities | $ 17,712 | $ 16,775 |
Pension and other post retirement liabilities | 13,515 | 12,273 |
Other long-term liabilities | 12,633 | 12,168 |
Total | $ 43,860 | $ 41,216 |
Supplementary Information - Sch
Supplementary Information - Schedule of Other (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Supplementary Information [Abstract] | ||||
Interest income | $ (4,823) | $ (1,708) | $ (11,692) | $ (2,008) |
Foreign exchange loss | 2,933 | 3,815 | 1,994 | 11,469 |
Expense on repurchase of convertible senior notes | 0 | 0 | 0 | 16,621 |
Other expense, net | $ (1,890) | $ 2,107 | $ (9,698) | $ 26,082 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill Attributable to Software Reportable Segment (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning Balance | $ 449,048 |
Acquisitions | 5,365 |
Foreign currency translation and other | (1,591) |
Ending Balance | $ 452,822 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | $ 195,520 | $ 194,294 |
Accumulated amortization | 119,300 | 97,111 |
Net carrying amount | 76,220 | 97,183 |
Gross carrying amount | 205,791 | 204,720 |
Net carrying amount | 86,491 | 107,609 |
Developed Technology [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | 137,113 | 135,703 |
Accumulated amortization | 83,389 | 67,665 |
Net carrying amount | $ 53,724 | $ 68,038 |
Developed Technology [Member] | Minimum [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 4 years | 4 years |
Developed Technology [Member] | Maximum [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 6 years | 6 years |
Customer Relationships [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | $ 56,964 | $ 57,143 |
Accumulated amortization | 35,422 | 29,148 |
Net carrying amount | $ 21,542 | $ 27,995 |
Customer Relationships [Member] | Minimum [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 7 years | 7 years |
Customer Relationships [Member] | Maximum [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 10 years | 10 years |
Other Intangibles [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,443 | $ 1,448 |
Accumulated amortization | 489 | 298 |
Net carrying amount | $ 954 | $ 1,150 |
Other Intangibles [Member] | Minimum [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 4 years | 4 years |
Other Intangibles [Member] | Maximum [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 10 years | 10 years |
Trade Names [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Net carrying amount | $ 10,271 | $ 10,426 |
Gross carrying amount | $ 10,271 | $ 10,426 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 7,704 | $ 6,571 | $ 23,143 | $ 18,682 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Accumulated deficit | $ (150,178,000) | $ (121,577,000) | |||
Additional paid-in capital | 816,551,000 | 721,307,000 | |||
Current portion of convertible senior notes, net | 81,319,000 | 0 | |||
Convertible Senior Notes Due in 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 230,000,000 | $ 81,754,000 | 81,754,000 | ||
Debt instrument interest rate | 0.25% | ||||
Additional principal amount of notes to underwriters | $ 30,000,000 | ||||
Net proceeds from issuance of costs | $ 221,900,000 | ||||
Debt instrument frequency of periodic payment | semi-annually | ||||
Debt instrument maturity date | Jun. 01, 2024 | ||||
Debt instrument, description | The 2024 Notes bear interest at a rate of 0.25% per year, payable semi-annually in arrears on June 1 and December 1 of each year. | ||||
Debt instrument, convertible, terms of conversion feature | The 2024 Notes have an initial conversion rate of 21.5049 shares of the Company's Class A common stock per $1,000 principal amount of 2024 Notes, which is equivalent to an initial conversion price of approximately $46.50 per share of its Class A common stock. | ||||
Debt instrument, convertible, threshold percentage of conversion price | 130% | ||||
Debt instrument repurchased face amount | 148,200,000 | ||||
Repayments of notes payable | $ 192,400,000 | ||||
Fair value expense recognized | $ 16,600,000 | ||||
Debt instrument, convertible, "if-converted value" in excess of the principal amount | 28,200,000 | ||||
Convertible Senior Notes Due in 2024 [Member] | Class A Common Stock [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt conversion, converted instrument, shares issued | 21.5049 | ||||
Debt instrument conversion rate principal amount of notes | $ 1,000 | ||||
Debt instrument convertible initial conversion price per share of common stock | $ 46.5 | ||||
Convertible Senior Notes Due in 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | ||
Debt instrument interest rate | 1.75% | 1.75% | |||
Additional principal amount of notes to initial purchaser's | $ 30,000,000 | ||||
Net proceeds from issuance of costs | $ 224,300,000 | ||||
Debt instrument frequency of periodic payment | semi-annually | ||||
Interest payment commencement date | Dec. 15, 2022 | ||||
Debt instrument, description | The 2027 Notes bear interest at a rate of 1.750% per year, payable semi-annually in arrears on June 15 and December 15 of each year, which commenced on December 15, 2022. | ||||
Debt conversion, converted instrument, shares issued | 13.9505 | ||||
Debt instrument, convertible, terms of conversion feature | The 2027 Notes have an initial conversion rate of 13.9505 shares of the Company's Class A common stock per $1,000 principal amount of 2027 Notes, which is equivalent to an initial conversion price of approximately $71.68 per share of its Class A common stock. | ||||
Convertible Senior Notes Due in 2027 [Member] | Class A Common Stock [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument conversion rate principal amount of notes | $ 1,000 | ||||
Debt instrument convertible initial conversion price per share of common stock | $ 71.68 | ||||
Twenty Nineteen Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Dec. 31, 2025 | ||||
Credit facility | $ 200,000,000 | ||||
Secured Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan outstanding | 0 | ||||
Amount available for future borrowing | $ 200,000,000 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Notes (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 225,635 | $ 305,604 | ||
Convertible Senior Notes Due in 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | 81,754 | 81,754 | $ 230,000 | |
Less: unamortized debt issuance costs | 435 | 903 | ||
Net carrying amount | 81,319 | 80,851 | ||
Convertible Senior Notes Due in 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | 230,000 | 230,000 | $ 230,000 | |
Less: unamortized debt issuance costs | 4,365 | 5,247 | ||
Net carrying amount | $ 225,635 | $ 224,753 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Recognized Related to Convertible Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs and discount | $ 1,399 | $ 1,330 | ||
Convertible Senior Notes Due in 2024 and 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 1,061 | $ 1,057 | 3,182 | 1,395 |
Amortization of debt issuance costs and discount | 453 | 481 | 1,352 | 1,299 |
Total | $ 1,514 | $ 1,538 | $ 4,534 | $ 2,694 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | Sep. 30, 2023 USD ($) |
Convertible Senior Notes Due in 2027 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of convertible notes | $ 244.4 |
Convertible Senior Notes Due in 2024 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of convertible notes | $ 111.1 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 USD ($) $ / shares shares | Mar. 31, 2023 shares | Sep. 30, 2022 USD ($) shares | Mar. 31, 2022 shares | Sep. 30, 2023 USD ($) Installment $ / shares shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Sep. 27, 2017 shares | |
Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Compensation cost related to nonvested awards not yet recognized | $ | $ 71.3 | $ 71.3 | ||||||
2021 Employee Stock Purchase Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of purchase price for each share of common stock purchased of lower of fair market value per share on first day of applicable offering period | 85% | |||||||
Stock-based compensation expense | $ | $ 0.6 | $ 0.7 | $ 1.8 | $ 2 | ||||
2021 Employee Stock Purchase Plan [Member] | The Timing of Payroll Deductions [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Amount withheld on behalf of employees for a future purchase | $ | $ 2.2 | $ 4 | ||||||
2021 Employee Stock Purchase Plan [Member] | Common Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 2,831,824 | 2,831,824 | ||||||
Issuance of common stock for employee stock purchase program (in shares) | 183,136 | |||||||
Class A Common Stock [Member] | Common Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Issuance of common stock for employee stock purchase program (in shares) | 91,000 | 92,000 | 108 | 77,000 | ||||
2017 Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Intrinsic value of options exercised | $ | $ 14.3 | |||||||
2017 Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value of RSUs | $ / shares | $ 65.25 | $ 65.25 | ||||||
Number of vesting equal annual installments | Installment | 4 | |||||||
Weighted average period of recognition | 2 years 3 months 18 days | |||||||
2017 Plan [Member] | Class A Common Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 16,999,318 | |||||||
Maximum [Member] | Class A Common Stock [Member] | 2021 Employee Stock Purchase Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 3,200,000 | 3,200,000 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Restricted Stock Units Awarded (Detail) - Two Thousand And Seventeen Equity Incentive Plan [Member] - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of RSUs, Outstanding Beginning Balance | 1,230,774 |
Number of RSUs, Granted | 398,771 |
Number of RSUs, Vested | (468,759) |
Number of RSUs, Forfeited | (21,765) |
Number of RSUs, Outstanding Ending Balance | 1,139,021 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Option Activity under 2017 Plan (Detail) - 2017 Plan [Member] $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | shares | 7,491,491 | |
Number of options, Granted | shares | 1,017,785 | |
Number of options, Exercised | shares | (566,170) | |
Number of options, Forfeited | shares | (98,959) | |
Number of options, Outstanding, Ending Balance | shares | 7,844,147 | 7,491,491 |
Number of options, Exercisable | shares | 2,775,427 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price per share, Outstanding, Beginning Balance | $ / shares | $ 50.39 | |
Weighted average exercise price per share, Granted | $ / shares | 65.19 | |
Weighted average exercise price per share, Exercised | $ / shares | 44.44 | |
Weighted average exercise price per share, Forfeited | $ / shares | 56.53 | |
Weighted average exercise price per share, Outstanding, Ending Balance | $ / shares | 52.67 | $ 50.39 |
Weighted average exercise price per share, Exercisable | $ / shares | $ 47.37 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 8 years 1 month 6 days | 8 years 6 months |
Weighted average remaining contractual term (years), Exercisable | 7 years | |
Aggregate intrinsic value, Outstanding | $ | $ 91.5 | $ 11.5 |
Aggregate intrinsic value, Exercisable | $ | $ 45 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 20,526 | $ 22,710 | $ 66,423 | $ 62,524 |
Cost of revenue - software [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2,468 | 2,332 | 7,792 | 6,265 |
Research and development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 7,824 | 10,243 | 26,510 | 26,580 |
Sales and marketing [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 6,933 | 7,806 | 22,105 | 22,505 |
General and administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 3,301 | $ 2,329 | $ 10,016 | $ 7,174 |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Numerators and Denominators Used in Basic and Diluted Net (Loss) Income Per Share Amounts (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net Income (Loss) | $ (4,362) | $ (22,280) | $ (1,959) | $ (33,248) | $ (33,774) | $ 11,528 | $ (28,601) | $ (55,494) |
Interest expense related to Convertible Notes, net of tax | 0 | 0 | 0 | 0 | ||||
Numerator for diluted loss per share | $ (4,362) | $ (33,248) | $ (28,601) | $ (55,494) | ||||
Denominator: | ||||||||
Denominator for basic loss per share--weighted average shares | 80,431 | 79,207 | 80,204 | 79,205 | ||||
Effect of dilutive securities, stock options, RSUs and ESPP shares | 0 | 0 | 0 | 0 | ||||
Denominator for dilutive loss per share | 80,431 | 79,207 | 80,204 | 79,205 | ||||
Net loss per share attributable to common stockholders, basic | $ (0.05) | $ (0.42) | $ (0.36) | $ (0.7) | ||||
Net loss per share attributable to common stockholders, diluted | $ (0.05) | $ (0.42) | $ (0.36) | $ (0.7) |
Net (loss) income per share - S
Net (loss) income per share - Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 8,125 | 8,893 | 7,862 | 7,503 |
Stock Options and ESPP [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,158 | 3,926 | 2,895 | 2,549 |
Convertible Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,967 | 4,967 | 4,967 | 4,954 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (6,541) | $ 4,579 | $ 11,369 | $ 15,008 |
Effective tax rate | 60% | (16.00%) | (66.00%) | (37.00%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Net discrete expense (benefit) | $ 7.2 | $ 4.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 620,215 | $ 558,172 | $ 569,736 | $ 613,197 |
Total other comprehensive loss | (8,102) | (17,793) | (2,261) | (37,623) |
Ending balance | 634,118 | 535,529 | 634,118 | 535,529 |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (30,484) | |||
Other comprehensive income before reclassification | (2,215) | |||
Amounts reclassified from accumulated other comprehensive income | 0 | |||
Tax effects | 0 | |||
Total other comprehensive loss | (2,215) | |||
Ending balance | (32,699) | (32,699) | ||
Retirement Related Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 482 | |||
Other comprehensive income before reclassification | 33 | |||
Tax effects | (79) | |||
Total other comprehensive loss | (46) | |||
Ending balance | 436 | 436 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (24,161) | (28,780) | (30,002) | (8,950) |
Other comprehensive income before reclassification | (2,182) | |||
Amounts reclassified from accumulated other comprehensive income | 0 | |||
Tax effects | (79) | |||
Total other comprehensive loss | (2,261) | |||
Ending balance | $ (32,263) | $ (46,573) | $ (32,263) | $ (46,573) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 134,003 | $ 119,351 | $ 441,198 | $ 411,788 |
Adjusted EBITDA | 15,454 | 6,829 | 75,565 | 69,859 |
Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 125,594 | 110,471 | 414,322 | 384,698 |
Adjusted EBITDA | 15,312 | 6,368 | 75,791 | 69,083 |
CES [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,126 | 7,355 | 22,936 | 22,414 |
Adjusted EBITDA | 502 | 856 | 1,544 | 2,060 |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,283 | 1,525 | 3,940 | 4,676 |
Adjusted EBITDA | $ (360) | $ (395) | $ (1,770) | $ (1,284) |
Segment Information - Reconcili
Segment Information - Reconciliation of U.S. GAAP Loss Before Income Taxes to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Segment Reporting [Abstract] | |||||
Adjusted EBITDA | $ 15,454 | $ 6,829 | $ 75,565 | $ 69,859 | |
Stock-based compensation expense | (20,526) | (22,710) | (66,423) | (62,524) | |
Interest expense | (1,529) | (1,566) | (4,583) | (2,851) | |
Depreciation and amortization | (9,783) | (8,273) | (29,271) | (24,092) | |
Special adjustments, interest income and other | [1] | 5,481 | (2,949) | 7,480 | (20,878) |
Loss before income taxes | $ (10,903) | $ (28,669) | $ (17,232) | $ (40,486) | |
[1] The three months ended September 30, 2023, includes $ 4.8 million of interest income, a $ 3.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 2.8 million of currency losses on acquisition-related intercompany loans. The three months ended September 30, 2022, includes $ 6.8 million currency losses on acquisition-related intercompany loans, a $ 2.2 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 1.7 million of interest income. The nine months ended September 30, 2023, includes $ 11.7 million of interest income, a $ 4.5 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 0.3 million of currency gains on acquisition-related intercompany loans. The nine months ended September 30, 2022, includes $ 16.6 million expense on repurchase of convertible senior notes, $ 13.7 million of currency losses on acquisition-related intercompany loans, a $ 7.5 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, and $ 2.0 million of interest income. |
Segment Information - Reconci_2
Segment Information - Reconciliation of U.S. GAAP Income (Loss) Before Income Taxes to Adjusted EBITDA (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Loss (gain) on mark-to-market adjustment of contingent consideration | $ (4,494) | $ 7,482 | ||
Interest income | $ 4,800 | $ 1,700 | 11,700 | 2,000 |
Currency gains on acquisition-related intercompany loans | 300 | |||
Currency losses on acquisition-related intercompany loans | 2,800 | 6,800 | 13,700 | |
World Programming [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Loss (gain) on mark-to-market adjustment of contingent consideration | $ 4,500 | |||
Gain on mark-to-market adjustment of contingent consideration | $ 3,500 | $ 2,200 | 7,500 | |
Convertible Senior Notes Due in 2024 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Fair value expense recognized | $ 16,600 |