Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 17, 2024 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
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 $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Class A Common Stock [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 56,948,286 | |
Class B Common Stock [Member] | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 26,084,574 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 557,605 | $ 467,459 |
Accounts receivable, net | 127,870 | 190,461 |
Income tax receivable | 18,898 | 16,650 |
Prepaid expenses and other current assets | 26,026 | 26,053 |
Total current assets | 730,399 | 700,623 |
Property and equipment, net | 38,837 | 39,803 |
Operating lease right of use assets | 30,175 | 30,759 |
Goodwill | 454,953 | 458,125 |
Other intangible assets, net | 75,357 | 83,550 |
Deferred tax assets | 9,699 | 9,955 |
Other long-term assets | 40,491 | 40,678 |
TOTAL ASSETS | 1,379,911 | 1,363,493 |
CURRENT LIABILITIES: | ||
Accounts payable | 6,522 | 8,995 |
Accrued compensation and benefits | 35,911 | 45,081 |
Current portion of operating lease liabilities | 8,330 | 8,825 |
Other accrued expenses and current liabilities | 43,820 | 48,398 |
Deferred revenue | 120,554 | 131,356 |
Current portion of convertible senior notes, net | 81,617 | 81,455 |
Total current liabilities | 296,754 | 324,110 |
Convertible senior notes, net | 226,223 | 225,929 |
Operating lease liabilities, net of current portion | 22,508 | 22,625 |
Deferred revenue, non-current | 24,385 | 32,347 |
Other long-term liabilities | 47,113 | 47,151 |
TOTAL LIABILITIES | 616,983 | 652,162 |
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 | 904,180 | 864,135 |
Accumulated deficit | (113,956) | (130,503) |
Accumulated other comprehensive loss | (27,304) | (22,309) |
TOTAL STOCKHOLDERS’ EQUITY | 762,928 | 711,331 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,379,911 | 1,363,493 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 56,912,000 | 55,240,000 |
Common stock, shares outstanding | 56,912,000 | 55,240,000 |
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 | 26,084,000 | 26,814,000 |
Common stock, shares outstanding | 26,084,000 | 26,814,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total revenue | $ 172,912 | $ 166,034 |
Total cost of revenue | 30,893 | 32,735 |
Gross profit | 142,019 | 133,299 |
Operating expenses: | ||
Research and development | 52,333 | 53,251 |
Sales and marketing | 44,434 | 43,492 |
General and administrative | 17,761 | 17,951 |
Amortization of intangible assets | 7,438 | 7,814 |
Other operating (income) expense, net | (882) | 5,605 |
Total operating expenses | 121,084 | 128,113 |
Operating income | 20,935 | 5,186 |
Interest expense | 1,576 | 1,526 |
Other income, net | (3,957) | (3,613) |
Income before income taxes | 23,316 | 7,273 |
Income tax expense | 6,769 | 9,232 |
Net income (loss) | $ 16,547 | $ (1,959) |
Income (loss) per share: | ||
Net income (loss) per share attributable to common stockholders, basic | $ 0.2 | $ (0.02) |
Net income (loss) per share attributable to common stockholders, diluted | $ 0.2 | $ (0.02) |
Weighted average shares outstanding: | ||
Weighted average number of shares used in computing net income (loss) per share, basic | 82,587 | 80,191 |
Weighted average number of shares used in computing net income (loss) per share, diluted | 89,806 | 80,191 |
Total Software [Member] | ||
Total revenue | $ 158,429 | $ 149,643 |
Total cost of revenue | 18,656 | 19,250 |
License [Member] | ||
Total revenue | 117,707 | 112,409 |
Total cost of revenue | 4,490 | 4,824 |
Maintenance and Other Services [Member] | ||
Total revenue | 40,722 | 37,234 |
Total cost of revenue | 14,166 | 14,426 |
Engineering Services and Other [Member] | ||
Total revenue | 6,457 | 7,776 |
Engineering Services and Other [Member] | ||
Total revenue | 14,483 | 16,391 |
Total cost of revenue | 12,237 | 13,485 |
Other [Member] | ||
Total revenue | $ 1,409 | $ 1,515 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 16,547 | $ (1,959) |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation (net of tax effect of $0 for all periods) | (5,029) | 7,232 |
Retirement related benefit plans (net of tax effect of $0 for all periods) | 34 | 19 |
Total other comprehensive (loss) income | (4,995) | 7,251 |
Comprehensive income | $ 11,552 | $ 5,292 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation, tax effect | $ 0 | $ 0 |
Retirement related benefit plans, tax effect | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] Class A Common Stock [Member] | Common Stock [Member] Class B Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
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, 2023 | 711,331 | $ 5 | $ 3 | 864,135 | (130,503) | (22,309) |
Beginning balance (in shares) at Dec. 31, 2023 | 55,240,000 | 26,814,000 | ||||
Net Income (Loss) | 16,547 | 16,547 | ||||
Issuance of common stock for acquisitions | 75 | 75 | ||||
Issuance of common stock for acquisitions (in shares) | 35,000 | |||||
Issuance of common stock for employee stock purchase program | 4,127 | 4,127 | ||||
Issuance of common stock for employee stock purchase program (in shares) | 64,000 | |||||
Exercise of stock options | 19,844 | 19,844 | ||||
Exercise of stock options (in shares) | 540,000 | |||||
Vesting of restricted stock (in shares) | 303,000 | |||||
Conversion from Class B to Class A common stock | 730,000 | (730,000) | ||||
Stock-based compensation | 15,999 | 15,999 | ||||
Foreign currency translation, net of tax | (5,029) | (5,029) | ||||
Retirement related benefit plans, net of tax | 34 | 34 | ||||
Ending balance at Mar. 31, 2024 | $ 762,928 | $ 5 | $ 3 | $ 904,180 | $ (113,956) | $ (27,304) |
Ending balance (in shares) at Mar. 31, 2024 | 56,912,000 | 26,084,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 16,547 | $ (1,959) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 9,619 | 9,750 |
Stock-based compensation expense | 15,999 | 22,161 |
Loss on mark-to-market adjustment of contingent consideration | 145 | 7,006 |
Other, net | 580 | 640 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 60,245 | 39,872 |
Prepaid expenses and other current assets | (2,679) | 1,981 |
Other long-term assets | 9 | (1,944) |
Accounts payable | (1,667) | (5,362) |
Accrued compensation and benefits | (8,503) | (12,283) |
Other accrued expenses and current liabilities | (199) | 2,015 |
Deferred revenue | (16,646) | (2,678) |
Net cash provided by operating activities | 73,450 | 59,199 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (2,766) | (1,727) |
Other investing activities, net | 2 | (1,405) |
Net cash used in investing activities | (2,764) | (3,132) |
FINANCING ACTIVITIES: | ||
Proceeds from the exercise of common stock options | 19,844 | 9,872 |
Proceeds from employee stock purchase plan contributions | 2,182 | 1,868 |
Payments for repurchase and retirement of common stock | 0 | (6,255) |
Other financing activities | 0 | (29) |
Net cash provided by financing activities | 22,026 | 5,456 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,592) | 379 |
Net increase in cash, cash equivalents and restricted cash | 90,120 | 61,902 |
Cash, cash equivalents and restricted cash at beginning of year | 467,576 | 316,958 |
Cash, cash equivalents and restricted cash at end of period | 557,696 | 378,860 |
Supplemental disclosure of cash flow: | ||
Interest paid | 46 | 3 |
Income taxes paid | 2,954 | 4,751 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment in accounts payable and other current liabilities | $ 277 | $ 1,559 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 16,547 | $ (1,959) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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 | 3 Months Ended |
Mar. 31, 2024 | |
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 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, 2023, included in the most recent Annual Report on Form 10-K filed with the SEC. 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 three months ended March 31, 2024, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2023. Change in Presentation of Revenue and Cost of Revenue Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue, or total cost of revenue amounts previously reported or have any effect on segment reporting. |
Recent Accounting Guidance
Recent Accounting Guidance | 3 Months Ended |
Mar. 31, 2024 | |
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. Segment Reporting – In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures . The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting the updated standard. Income Taxes – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which updates income tax disclosures related to the tax rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is permitted. The Company is currently evaluating this ASU to determine the effect on its related disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from contracts with customers Disaggregation of revenue The Company disaggregates its revenue by type of performance obligation and timing of revenue recognition as follows (in thousands): Three Months Ended 2024 2023 Term licenses and other software products $ 111,170 $ 103,309 Perpetual licenses 6,537 9,100 Maintenance 38,643 35,601 Professional software services 2,079 1,633 Software related services 6,617 7,100 Client engineering services 6,457 7,776 Other 1,409 1,515 Total revenue $ 172,912 $ 166,034 The Company derived approximately 10.8 % of its total revenue through indirect sales channels for the three months ended March 31, 2024. Costs to obtain a contract As of March 31, 2024, and December 31, 2023, respectively, capitalized costs to obtain a contract were $ 4.6 million and $ 4.3 million recorded in Prepaid expenses and other current assets and $ 0.9 million and $ 0.9 million recorded in Other long-term assets in the Company’s consolidated balance sheets. Sales commissions were $ 2.3 million and $ 2.0 million, respectively, for the three months ended March 31, 2024 and 2023. Sales commissions were included in Sales and marketing expense in the Company’s consolidated statement of operations. Contract assets As of March 31, 2024, and December 31, 2023, respectively, contract assets were $ 5.1 million and $ 5.2 million included in Accounts receivable, net, and $ 3.1 million and $ 2.7 million included in Prepaid expenses and other current assets in the Company’s consolidated balance sheets. Deferred revenue Approximately $ 66.3 million of revenue recognized during the three months ended March 31, 2024, 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 $ 243.5 million and $ 208.3 million as of March 31, 2024 and 2023, respectively. Of the amount recorded as of March 31, 2024, the Company expects to recognize approximately 70 % over the next 12 months and the remainder thereafter. |
Supplementary Information
Supplementary Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplementary Information [Abstract] | |
Supplementary Information | 4. Supplementary Information Acquisitions During the three months ended March 31, 2024 and 2023, respectively, the Company recognized a $ 0.1 million loss and a $ 7.0 million loss from a mark-to-market adjustment of contingent consideration associated with a prior year acquisition. The mark-to-market adjustments were included in Other operating (income) expense, net in the consolidated statements of operations. 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): March 31, December 31, 2024 2023 Cash and cash equivalents $ 557,605 $ 467,459 Restricted cash included in other long-term assets 92 117 Total cash, cash equivalents and restricted cash $ 557,696 $ 467,576 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): March 31, December 31, 2024 2023 Land $ 8,373 $ 8,376 Building and improvements 17,515 17,528 Computer equipment and software 46,154 45,678 Furniture, equipment and other 13,972 14,402 Leasehold improvements 8,602 8,380 Total property and equipment 94,616 94,364 Less: accumulated depreciation and amortization 55,779 54,561 Property and equipment, net $ 38,837 $ 39,803 Depreciation expense was $ 2.2 million and $ 1.9 million for the three months ended March 31, 2024 and 2023, respectively. Other liabilities The following table provides the details of other accrued expenses and current liabilities (in thousands): March 31, December 31, 2024 2023 Income taxes payable $ 15,152 $ 12,239 Accrued VAT 4,472 8,710 Obligations related to acquisition of businesses and technology 3,012 3,286 Accrued royalties 2,889 2,313 Accrued professional fees 2,808 2,436 Billings in excess of cost 2,401 2,385 Employee stock purchase plan obligations 2,210 4,155 Non-income tax liabilities 1,332 2,473 Accrued interest 1,242 183 Defined contribution plan liabilities 1,110 1,454 Other current liabilities 7,192 8,764 Total $ 43,820 $ 48,398 The following table provides details of other long-term liabilities (in thousands): March 31, December 31, 2024 2023 Pension and other post-retirement liabilities $ 16,219 $ 15,815 Income tax reserves 16,117 16,254 Deferred tax liabilities 12,765 12,870 Other long-term liabilities 2,012 2,212 Total $ 47,113 $ 47,151 Other income, net Other income, net consists of the following (in thousands): Three Months Ended 2024 2023 Interest income $ ( 5,722 ) $ ( 2,885 ) Foreign exchange loss (gain) 1,765 ( 728 ) Other income, net $ ( 3,957 ) $ ( 3,613 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and other intangible assets Goodwill The change in the carrying amount of goodwill, which is attributable to the Software reportable segment, was as follows (in thousands): Balance as of December 31, 2023 $ 458,125 Foreign currency translation ( 3,172 ) Balance as of March 31, 2024 $ 454,953 Other intangible assets A summary of other intangible assets is shown below (in thousands): March 31, 2024 Weighted average Gross carrying Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 - 6 years $ 141,093 $ 95,465 $ 45,628 Customer relationships 7 - 10 years 57,988 39,427 18,561 Other intangibles 4 - 10 years 1,455 626 829 Total definite-lived intangible assets 200,536 135,518 65,018 Indefinite-lived intangible assets: Trade names 10,339 10,339 Total other intangible assets $ 210,875 $ 135,518 $ 75,357 December 31, 2023 Weighted average Gross carrying Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 - 6 years $ 142,368 $ 90,729 $ 51,639 Customer relationships 7 - 10 years 58,316 37,779 20,537 Other intangibles 4 - 10 years 1,459 563 896 Total definite-lived intangible assets 202,143 129,071 73,072 Indefinite-lived intangible assets: Trade names 10,478 10,478 Total other intangible assets $ 212,621 $ 129,071 $ 83,550 Amortization expense related to intangible assets was $ 7.4 million and $ 7.8 million for the three months ended March 31, 2024 and 2023, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
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 its 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 March 31, 2024, 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 March 31, 2024. 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, 2023, 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 March 31, 2024, until the close of business on the business day immediately preceding the maturity date, holders may convert their 2024 Notes at any time. Upon conversion, the Company has elected to settle the 2024 Notes par value in cash and to settle the premium in shares of its Class A common stock, subject to the terms and conditions provided in the Indenture. As of March 31, 2024, $ 81.7 million principal amount of the 2024 Notes remained outstanding and were classified as current liabilities on the consolidated balance sheet. The net carrying value of the 2027 and 2024 Notes was as follows (in thousands): March 31, 2024 December 31, 2023 2027 Notes 2024 Notes 2027 Notes 2024 Notes Principal $ 230,000 $ 81,729 $ 230,000 $ 81,729 Less: unamortized debt issuance costs 3,777 112 4,071 274 Net carrying amount $ 226,223 $ 81,617 $ 225,929 $ 81,455 The interest expense related to the 2027 and 2024 Notes was as follows (in thousands): Three Months Ended 2024 2023 Contractual interest expense $ 1,057 $ 1,061 Amortization of debt issuance costs 457 464 Total $ 1,514 $ 1,525 As of March 31, 2024, the “if converted value” of the 2027 Notes exceeded the principal amount by $ 46.4 million, and the “if converted value” of the 2024 Notes exceeded the principal amount by $ 69.7 million. 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 March 31, 2024, 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, 2023, included in our Annual Report on Form 10-K. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, the estimated fair value of the 2027 Notes and 2024 Notes was $ 302.1 million and $ 150.9 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 19,460,908 authorized shares of the Company’s Class A common stock reserved for issuance. As of March 31, 2024, the Company had 6,701,748 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, 2023 1,086,351 Granted 308,671 Vested ( 303,210 ) Forfeited ( 6,428 ) Outstanding as of March 31, 2024 1,085,384 The weighted average grant date fair value of the RSUs was $ 79.20 and the RSUs generally vest in four equal annual installments. Total compensation cost related to nonvested awards not yet recognized as of March 31, 2024, totaled $ 93.5 million, and is expected to be recognized over a weighted average period of 2.7 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, 2023 7,602,078 $ 52.81 7.8 $ 238.3 Granted 416,608 $ 79.19 Exercised ( 402,890 ) $ 49.40 Forfeited ( 22,962 ) $ 55.23 Outstanding as of March 31, 2024 7,592,834 $ 54.43 7.8 $ 240.9 Exercisable as of March 31, 2024 3,640,511 $ 51.42 6.8 $ 126.4 The total intrinsic value of the 2017 Plan stock options exercised during the three months ended March 31, 2024, was $ 143.4 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 March 31, 2024, the Company had 2,767,911 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 64,309 shares of common stock under the ESPP during the three months ended March 31, 2024. As of March 31, 2024 and December 31, 2023, respectively, $ 2.2 million and $ 4.2 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. The Company recognized $ 0.7 million and $ 0.6 million of stock-based compensation expense related to the ESPP for the three months ended March 31, 2024 and 2023, respectively. Stock-based compensation expense Stock-based compensation expense was recorded as follows (in thousands): Three Months Ended 2024 2023 Cost of revenue – software $ 2,002 $ 2,752 Research and development 6,360 8,743 Sales and marketing 4,520 7,591 General and administrative 3,117 3,075 Total stock-based compensation expense $ 15,999 $ 22,161 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 9. Net income (loss) per share Basic net income (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 income (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 income (loss) per share amounts (in thousands, except per share data): Three Months Ended 2024 2023 Numerator: Net income (loss) $ 16,547 $ ( 1,959 ) Interest expense related to Convertible Notes, net of tax 1,057 — Numerator for diluted income (loss) per share $ 17,604 $ ( 1,959 ) Denominator: Denominator for basic income (loss) per share— 82,587 80,191 Effect of dilutive securities, stock options, RSUs and 7,219 — Denominator for dilutive income (loss) per share 89,806 80,191 Net income (loss) per share attributable to common $ 0.20 $ ( 0.02 ) Net income (loss) per share attributable to common $ 0.20 $ ( 0.02 ) Anti-dilutive shares excluded from the computation of diluted net income (loss) per share were as follows (in thousands): Three Months Ended 2024 2023 Stock options and ESPP shares — 2,883 Convertible shares — 4,967 Total shares excluded from calculation — 7,850 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income taxes The Company’s income tax expense and effective tax rate for the three ended March 31, 2024 and 2023, were as follows (in thousands, except percentages): Three Months Ended 2024 2023 Income tax expense $ 6,769 $ 9,232 Effective tax rate 29 % 127 % 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 March 31, 2024 as compared to March 31, 2023, was primarily attributable to the effects of tax elections made by the Company during the third quarter of 2023 that have a prospective impact on the Company’s tax expense in 2024. The Company's effective tax rate for the three months ended March 31, 2024 and 2023 also includes net discrete benefit of $ 0.4 million and expense of $ 5.7 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 | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ ( 21,473 ) $ ( 836 ) $ ( 22,309 ) Other comprehensive income before reclassification ( 5,029 ) — ( 5,029 ) Amounts reclassified from accumulated other comprehensive income — 34 34 Tax effects — — — Other comprehensive income ( 5,029 ) 34 ( 4,995 ) Balance as of March 31, 2024 $ ( 26,502 ) $ ( 802 ) $ ( 27,304 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and contingencies 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 (“CES”). 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, asset impairment charges and other special items as determined by management. Corporate headquarter costs are allocated to each segment. The following tables are in thousands: Three months ended March 31, 2024 Software CES All other Total Revenue $ 165,046 $ 6,457 $ 1,409 $ 172,912 Adjusted EBITDA $ 46,070 $ ( 67 ) $ ( 185 ) $ 45,818 Three months ended March 31, 2023 Software CES All other Total Revenue $ 156,743 $ 7,776 $ 1,515 $ 166,034 Adjusted EBITDA $ 42,772 $ 409 $ ( 126 ) $ 43,055 Three Months Ended 2024 2023 Reconciliation of Adjusted EBITDA to U.S. GAAP Adjusted EBITDA $ 45,818 $ 43,055 Stock-based compensation expense ( 15,999 ) ( 22,161 ) Interest expense ( 1,576 ) ( 1,526 ) Depreciation and amortization ( 9,619 ) ( 9,750 ) Special adjustments, interest income and other (1) 4,692 ( 2,345 ) Income before income taxes $ 23,316 $ 7,273 (1) The three months ended March 31, 2024, primarily includes $ 5.7 million of interest income and $ 0.9 million of currency losses on acquisition-related intercompany loans. The three months ended March 31, 2023, includes a $ 7.0 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, $ 2.9 million of interest income, and $ 1.8 million of currency gains on acquisition-related intercompany loans. |
Organization and Description _2
Organization and Description of Business (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023, included in the most recent Annual Report on Form 10-K filed with the SEC. |
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 three months ended March 31, 2024, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2023. |
Change in Presentation of Revenue and Cost of Revenue | Change in Presentation of Revenue and Cost of Revenue Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue, or total cost of revenue amounts previously reported or have any effect on segment reporting. |
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. Segment Reporting – In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures . The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting the updated standard. Income Taxes – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which updates income tax disclosures related to the tax rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is permitted. The Company is currently evaluating this ASU to determine the effect on its related disclosures. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The Company disaggregates its revenue by type of performance obligation and timing of revenue recognition as follows (in thousands): Three Months Ended 2024 2023 Term licenses and other software products $ 111,170 $ 103,309 Perpetual licenses 6,537 9,100 Maintenance 38,643 35,601 Professional software services 2,079 1,633 Software related services 6,617 7,100 Client engineering services 6,457 7,776 Other 1,409 1,515 Total revenue $ 172,912 $ 166,034 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): March 31, December 31, 2024 2023 Cash and cash equivalents $ 557,605 $ 467,459 Restricted cash included in other long-term assets 92 117 Total cash, cash equivalents and restricted cash $ 557,696 $ 467,576 |
Summary of Property and Equipment | Property and equipment consisted of the following (in thousands): March 31, December 31, 2024 2023 Land $ 8,373 $ 8,376 Building and improvements 17,515 17,528 Computer equipment and software 46,154 45,678 Furniture, equipment and other 13,972 14,402 Leasehold improvements 8,602 8,380 Total property and equipment 94,616 94,364 Less: accumulated depreciation and amortization 55,779 54,561 Property and equipment, net $ 38,837 $ 39,803 |
Summary of Other Accrued Expenses and Current Liabilities | The following table provides the details of other accrued expenses and current liabilities (in thousands): March 31, December 31, 2024 2023 Income taxes payable $ 15,152 $ 12,239 Accrued VAT 4,472 8,710 Obligations related to acquisition of businesses and technology 3,012 3,286 Accrued royalties 2,889 2,313 Accrued professional fees 2,808 2,436 Billings in excess of cost 2,401 2,385 Employee stock purchase plan obligations 2,210 4,155 Non-income tax liabilities 1,332 2,473 Accrued interest 1,242 183 Defined contribution plan liabilities 1,110 1,454 Other current liabilities 7,192 8,764 Total $ 43,820 $ 48,398 |
Summary of Other Long-term Liabilities | The following table provides details of other long-term liabilities (in thousands): March 31, December 31, 2024 2023 Pension and other post-retirement liabilities $ 16,219 $ 15,815 Income tax reserves 16,117 16,254 Deferred tax liabilities 12,765 12,870 Other long-term liabilities 2,012 2,212 Total $ 47,113 $ 47,151 |
Schedule of Other Income, Net | Other income, net consists of the following (in thousands): Three Months Ended 2024 2023 Interest income $ ( 5,722 ) $ ( 2,885 ) Foreign exchange loss (gain) 1,765 ( 728 ) Other income, net $ ( 3,957 ) $ ( 3,613 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill Attributable to Software Reportable Segment | The change in the carrying amount of goodwill, which is attributable to the Software reportable segment, was as follows (in thousands): Balance as of December 31, 2023 $ 458,125 Foreign currency translation ( 3,172 ) Balance as of March 31, 2024 $ 454,953 |
Schedule of Other Intangible Assets | A summary of other intangible assets is shown below (in thousands): March 31, 2024 Weighted average Gross carrying Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 - 6 years $ 141,093 $ 95,465 $ 45,628 Customer relationships 7 - 10 years 57,988 39,427 18,561 Other intangibles 4 - 10 years 1,455 626 829 Total definite-lived intangible assets 200,536 135,518 65,018 Indefinite-lived intangible assets: Trade names 10,339 10,339 Total other intangible assets $ 210,875 $ 135,518 $ 75,357 December 31, 2023 Weighted average Gross carrying Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 - 6 years $ 142,368 $ 90,729 $ 51,639 Customer relationships 7 - 10 years 58,316 37,779 20,537 Other intangibles 4 - 10 years 1,459 563 896 Total definite-lived intangible assets 202,143 129,071 73,072 Indefinite-lived intangible assets: Trade names 10,478 10,478 Total other intangible assets $ 212,621 $ 129,071 $ 83,550 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Value of the 2027 and 2024 Notes | The net carrying value of the 2027 and 2024 Notes was as follows (in thousands): March 31, 2024 December 31, 2023 2027 Notes 2024 Notes 2027 Notes 2024 Notes Principal $ 230,000 $ 81,729 $ 230,000 $ 81,729 Less: unamortized debt issuance costs 3,777 112 4,071 274 Net carrying amount $ 226,223 $ 81,617 $ 225,929 $ 81,455 |
Schedule of Interest Expense Related to 2027 and 2024 Notes | The interest expense related to the 2027 and 2024 Notes was as follows (in thousands): Three Months Ended 2024 2023 Contractual interest expense $ 1,057 $ 1,061 Amortization of debt issuance costs 457 464 Total $ 1,514 $ 1,525 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Stock-Based Compensation | Stock-based compensation expense was recorded as follows (in thousands): Three Months Ended 2024 2023 Cost of revenue – software $ 2,002 $ 2,752 Research and development 6,360 8,743 Sales and marketing 4,520 7,591 General and administrative 3,117 3,075 Total stock-based compensation expense $ 15,999 $ 22,161 |
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, 2023 1,086,351 Granted 308,671 Vested ( 303,210 ) Forfeited ( 6,428 ) Outstanding as of March 31, 2024 1,085,384 |
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, 2023 7,602,078 $ 52.81 7.8 $ 238.3 Granted 416,608 $ 79.19 Exercised ( 402,890 ) $ 49.40 Forfeited ( 22,962 ) $ 55.23 Outstanding as of March 31, 2024 7,592,834 $ 54.43 7.8 $ 240.9 Exercisable as of March 31, 2024 3,640,511 $ 51.42 6.8 $ 126.4 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation of Numerators and Denominators Used in Basic and Diluted Net Income (Loss) Per Share Amounts | The following table sets forth the computation of the numerators and denominators used in the basic and diluted net income (loss) per share amounts (in thousands, except per share data): Three Months Ended 2024 2023 Numerator: Net income (loss) $ 16,547 $ ( 1,959 ) Interest expense related to Convertible Notes, net of tax 1,057 — Numerator for diluted income (loss) per share $ 17,604 $ ( 1,959 ) Denominator: Denominator for basic income (loss) per share— 82,587 80,191 Effect of dilutive securities, stock options, RSUs and 7,219 — Denominator for dilutive income (loss) per share 89,806 80,191 Net income (loss) per share attributable to common $ 0.20 $ ( 0.02 ) Net income (loss) per share attributable to common $ 0.20 $ ( 0.02 ) |
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share | Anti-dilutive shares excluded from the computation of diluted net income (loss) per share were as follows (in thousands): Three Months Ended 2024 2023 Stock options and ESPP shares — 2,883 Convertible shares — 4,967 Total shares excluded from calculation — 7,850 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 ended March 31, 2024 and 2023, were as follows (in thousands, except percentages): Three Months Ended 2024 2023 Income tax expense $ 6,769 $ 9,232 Effective tax rate 29 % 127 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ ( 21,473 ) $ ( 836 ) $ ( 22,309 ) Other comprehensive income before reclassification ( 5,029 ) — ( 5,029 ) Amounts reclassified from accumulated other comprehensive income — 34 34 Tax effects — — — Other comprehensive income ( 5,029 ) 34 ( 4,995 ) Balance as of March 31, 2024 $ ( 26,502 ) $ ( 802 ) $ ( 27,304 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables are in thousands: Three months ended March 31, 2024 Software CES All other Total Revenue $ 165,046 $ 6,457 $ 1,409 $ 172,912 Adjusted EBITDA $ 46,070 $ ( 67 ) $ ( 185 ) $ 45,818 Three months ended March 31, 2023 Software CES All other Total Revenue $ 156,743 $ 7,776 $ 1,515 $ 166,034 Adjusted EBITDA $ 42,772 $ 409 $ ( 126 ) $ 43,055 |
Reconciliation of U.S. GAAP (Loss) Income Before Income Taxes to Adjusted EBITDA | Three Months Ended 2024 2023 Reconciliation of Adjusted EBITDA to U.S. GAAP Adjusted EBITDA $ 45,818 $ 43,055 Stock-based compensation expense ( 15,999 ) ( 22,161 ) Interest expense ( 1,576 ) ( 1,526 ) Depreciation and amortization ( 9,619 ) ( 9,750 ) Special adjustments, interest income and other (1) 4,692 ( 2,345 ) Income before income taxes $ 23,316 $ 7,273 (1) The three months ended March 31, 2024, primarily includes $ 5.7 million of interest income and $ 0.9 million of currency losses on acquisition-related intercompany loans. The three months ended March 31, 2023, includes a $ 7.0 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, $ 2.9 million of interest income, and $ 1.8 million of currency gains on acquisition-related intercompany loans. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 172,912 | $ 166,034 |
TermLicensesAndOtherSoftwareProducts [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 111,170 | 103,309 |
Perpetual Licenses [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,537 | 9,100 |
Maintenance [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 38,643 | 35,601 |
Professional Software Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,079 | 1,633 |
Software Related Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,617 | 7,100 |
Client Engineering Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,457 | 7,776 |
Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 1,409 | $ 1,515 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Revenue From Contracts With Customers [Line Items] | |||
Percentage of net revenues through indirect channels | 10.80% | ||
Deferred revenue, revenue recognized | $ 66.3 | ||
Contracted revenue not yet recognized | $ 243.5 | $ 208.3 | |
Revenue recognize percentage | 70% | ||
Sales and Marketing Expense [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Sales commissions | $ 2.3 | $ 2 | |
Prepaid and Other Current Assets [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Capitalized contract cost net, current | 4.6 | 4.3 | |
Contract assets | 3.1 | 2.7 | |
Other Long-Term Assets [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Capitalized contract cost net, noncurrent | 0.9 | 0.9 | |
Accounts Receivable [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Contract assets | $ 5.1 | $ 5.2 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail)1 | Mar. 31, 2024 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01 | |
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 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Supplementary Information [Abstract] | ||||
Cash and cash equivalents | $ 557,605 | $ 467,459 | ||
Restricted cash included in other long-term assets | 92 | 117 | ||
Total cash, cash equivalents, and restricted cash | $ 557,696 | $ 467,576 | $ 378,860 | $ 316,958 |
Supplementary Information - Sum
Supplementary Information - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 94,616 | $ 94,364 |
Less: accumulated depreciation and amortization | 55,779 | 54,561 |
Property and equipment, net | 38,837 | 39,803 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,373 | 8,376 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,515 | 17,528 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 46,154 | 45,678 |
Furniture Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,972 | 14,402 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 8,602 | $ 8,380 |
Supplementary Information - Add
Supplementary Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Noncash or Part Noncash Acquisitions [Line Items] | ||
Depreciation expense, including amortization of right-of-use assets under finance leases | $ 2.2 | $ 1.9 |
Loss (gain) on mark-to-market adjustment of contingent consideration | $ 7 | |
2021 Acquisitions [Member] | ||
Noncash or Part Noncash Acquisitions [Line Items] | ||
Loss (gain) on mark-to-market adjustment of contingent consideration | $ 0.1 |
Supplementary Information - S_2
Supplementary Information - Summary of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Income taxes payable | $ 15,152 | $ 12,239 |
Accrued VAT | 4,472 | 8,710 |
Obligations related to acquisition of businesses and technology | 3,012 | 3,286 |
Accrued royalties | 2,889 | 2,313 |
Accrued professional fees | 2,808 | 2,436 |
Billings in excess of cost | 2,401 | 2,385 |
Employee stock purchase plan obligations | 2,210 | 4,155 |
Non-income tax liabilities | 1,332 | 2,473 |
Accrued interest | 1,242 | 183 |
Defined contribution plan liabilities | 1,110 | 1,454 |
Other current liabilities | 7,192 | 8,764 |
Total | $ 43,820 | $ 48,398 |
Supplementary Information - S_3
Supplementary Information - Summary of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Pension and other post retirement liabilities | $ 16,219 | $ 15,815 |
Income tax reserves | 16,117 | 16,254 |
Deferred tax liabilities | 12,765 | 12,870 |
Other long-term liabilities | 2,012 | 2,212 |
Total | $ 47,113 | $ 47,151 |
Supplementary Information - Sch
Supplementary Information - Schedule of Other Income, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplementary Information [Abstract] | ||
Interest income | $ (5,722) | $ (2,885) |
Foreign exchange loss (gain) | 1,765 | (728) |
Other income, net | $ (3,957) | $ (3,613) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill Attributable to Software Reportable Segment (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning Balance | $ 458,125 |
Foreign currency translation | (3,172) |
Ending Balance | $ 454,953 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | $ 200,536 | $ 202,143 |
Accumulated amortization | 135,518 | 129,071 |
Net carrying amount | 65,018 | 73,072 |
Gross carrying amount | 210,875 | 212,621 |
Net carrying amount | 75,357 | 83,550 |
Developed Technology [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | 141,093 | 142,368 |
Accumulated amortization | 95,465 | 90,729 |
Net carrying amount | $ 45,628 | $ 51,639 |
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 | $ 57,988 | $ 58,316 |
Accumulated amortization | 39,427 | 37,779 |
Net carrying amount | $ 18,561 | $ 20,537 |
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 | $ 1,455 | $ 1,459 |
Accumulated amortization | 626 | 563 |
Net carrying amount | $ 829 | $ 896 |
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 | $ 10,339 | $ 10,478 |
Gross carrying amount | $ 10,339 | $ 10,478 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 7,438 | $ 7,814 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2019 | Mar. 31, 2024 | Dec. 31, 2023 | |
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. | |||
Debt instrument, convertible, "if-converted value" in excess of the principal amount | $ 46,400,000 | |||
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 | |||
Convertible Senior Notes Due in 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, aggregate principal amount | $ 230,000,000 | $ 81,729,000 | $ 81,729,000 | |
Debt instrument interest rate | 0.25% | 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 repurchased face amount | $ 148,200,000 | |||
Repayments of notes payable | 192,400,000 | |||
Debt instrument principal outstanding | 81,700,000 | |||
Debt instrument, convertible, "if-converted value" in excess of the principal amount | $ 69,700,000 | |||
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 | |||
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 Net Carrying
Debt - Schedule of Net Carrying Value of the 2027 and 2024 Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 226,223 | $ 225,929 | ||
Convertible Senior Notes Due in 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | 230,000 | 230,000 | $ 230,000 | |
Less: unamortized debt issuance costs | 3,777 | 4,071 | ||
Net carrying amount | 226,223 | 225,929 | ||
Convertible Senior Notes Due in 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | 81,729 | 81,729 | $ 230,000 | |
Less: unamortized debt issuance costs | 112 | 274 | ||
Net carrying amount | $ 81,617 | $ 81,455 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Related to 2027 and 2024 Notes (Detail) - Convertible Senior Notes Due in 2024 and 2027 [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 1,057 | $ 1,061 |
Amortization of debt issuance costs | 457 | 464 |
Total | $ 1,514 | $ 1,525 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | Mar. 31, 2024 USD ($) |
Convertible Senior Notes Due in 2027 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of convertible notes | $ 302.1 |
Convertible Senior Notes Due in 2024 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of convertible notes | $ 150.9 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) Installment $ / shares shares | Mar. 31, 2023 shares | Dec. 31, 2023 USD ($) | Sep. 27, 2017 shares | |
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 | $ | $ 0.7 | $ 0.6 | ||
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 | $ 4.2 | ||
2021 Employee Stock Purchase Plan [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) | 64,309 | |||
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) | 64,000 | 92,000 | ||
2017 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ | $ 143.4 | |||
2017 Plan [Member] | Common Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for issuance | 6,701,748 | |||
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 | $ 79.2 | |||
Number of vesting equal annual installments | Installment | 4 | |||
Compensation cost related to nonvested awards not yet recognized | $ | $ 93.5 | |||
Weighted average period of recognition | 2 years 8 months 12 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 | 19,460,908 | |||
Maximum [Member] | 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 | 2,767,911 | |||
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 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Restricted Stock Units Awarded (Detail) - 2017 Plan [Member] - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2024 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 | 1,086,351 |
Number of RSUs, Granted | 308,671 |
Number of RSUs, Vested | (303,210) |
Number of RSUs, Forfeited | (6,428) |
Number of RSUs, Outstanding Ending Balance | 1,085,384 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Option Activity under 2017 Plan (Detail) - 2017 Plan [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 7,602,078 | |
Number of options, Granted | 416,608 | |
Number of options, Exercised | (402,890) | |
Number of options, Forfeited | (22,962) | |
Number of options, Outstanding, Ending Balance | 7,592,834 | 7,602,078 |
Number of options, Exercisable | 3,640,511 | |
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 | $ 52.81 | |
Weighted average exercise price per share, Granted | 79.19 | |
Weighted average exercise price per share, Exercised | 49.4 | |
Weighted average exercise price per share, Forfeited | 55.23 | |
Weighted average exercise price per share, Outstanding, Ending Balance | 54.43 | $ 52.81 |
Weighted average exercise price per share, Exercisable | $ 51.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 7 years 9 months 18 days | 7 years 9 months 18 days |
Weighted average remaining contractual term (years), Exercisable | 6 years 9 months 18 days | |
Aggregate intrinsic value, Outstanding | $ 240.9 | $ 238.3 |
Aggregate intrinsic value, Exercisable | $ 126.4 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 15,999 | $ 22,161 |
Cost of revenue - software [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 2,002 | 2,752 |
Research and development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 6,360 | 8,743 |
Sales and marketing [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 4,520 | 7,591 |
General and administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 3,117 | $ 3,075 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Numerators and Denominators Used in Basic and Diluted Net Income (Loss) Per Share Amounts (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income (loss) | $ 16,547 | $ (1,959) |
Interest expense related to Convertible Notes, net of tax | 1,057 | 0 |
Numerator for diluted income (loss) per share | $ 17,604 | $ (1,959) |
Denominator: | ||
Denominator for basic income (loss) per share--weighted average shares | 82,587 | 80,191 |
Effect of dilutive securities, stock options, RSUs and ESPP shares | 7,219 | 0 |
Denominator for dilutive income (loss) per share | 89,806 | 80,191 |
Net income (loss) per share attributable to common stockholders, basic | $ 0.2 | $ (0.02) |
Net income (loss) per share attributable to common stockholders, diluted | $ 0.2 | $ (0.02) |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Income (Loss) Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 7,850 |
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 | 0 | 2,883 |
Convertible Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 4,967 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 6,769 | $ 9,232 |
Effective tax rate | 29% | 127% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Net discrete expense (benefit) | $ (0.4) | $ 5.7 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 711,331 | $ 569,736 |
Total other comprehensive (loss) income | (4,995) | 7,251 |
Ending balance | 762,928 | 606,905 |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (21,473) | |
Other comprehensive income before reclassification | (5,029) | |
Amounts reclassified from accumulated other comprehensive income | 0 | |
Tax effects | 0 | |
Total other comprehensive (loss) income | (5,029) | |
Ending balance | (26,502) | |
Retirement Related Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (836) | |
Other comprehensive income before reclassification | 0 | |
Amounts reclassified from accumulated other comprehensive income | 34 | |
Tax effects | 0 | |
Total other comprehensive (loss) income | 34 | |
Ending balance | (802) | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (22,309) | (30,002) |
Other comprehensive income before reclassification | (5,029) | |
Amounts reclassified from accumulated other comprehensive income | 34 | |
Tax effects | 0 | |
Total other comprehensive (loss) income | (4,995) | |
Ending balance | $ (27,304) | $ (22,751) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 172,912 | $ 166,034 |
Adjusted EBITDA | 45,818 | 43,055 |
Software [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 165,046 | 156,743 |
Adjusted EBITDA | 46,070 | 42,772 |
CES [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 6,457 | 7,776 |
Adjusted EBITDA | (67) | 409 |
All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,409 | 1,515 |
Adjusted EBITDA | $ (185) | $ (126) |
Segment Information - Reconcili
Segment Information - Reconciliation of U.S. GAAP Loss Before Income Taxes to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Segment Reporting [Abstract] | |||
Adjusted EBITDA | $ 45,818 | $ 43,055 | |
Stock-based compensation expense | (15,999) | (22,161) | |
Interest expense | (1,576) | (1,526) | |
Depreciation and amortization | (9,619) | (9,750) | |
Special adjustments, interest income and other | [1] | 4,692 | (2,345) |
Income before income taxes | $ 23,316 | $ 7,273 | |
[1] The three months ended March 31, 2024, primarily includes $ 5.7 million of interest income and $ 0.9 million of currency losses on acquisition-related intercompany loans. The three months ended March 31, 2023, includes a $ 7.0 million loss from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition, $ 2.9 million of interest income, and $ 1.8 million of currency gains on acquisition-related intercompany loans. |
Segment Information - Reconci_2
Segment Information - Reconciliation of U.S. GAAP Income (Loss) Before Income Taxes to Adjusted EBITDA (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Loss (gain) on mark-to-market adjustment of contingent consideration | $ 7 | |
Interest income | $ 5.7 | 2.9 |
Currency losses on acquisition-related intercompany loans | $ 0.9 | 1.8 |
World Programming [Member] | ||
Segment Reporting Information [Line Items] | ||
Gain on mark-to-market adjustment of contingent consideration | $ 7 |