Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 12, 2021 | Jun. 30, 2020 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ALTR | ||
Entity Registrant Name | ALTAIR ENGINEERING INC. | ||
Entity Central Index Key | 0001701732 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1.6 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Class A Common Stock $0.0001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement relating to the 2021 Annual Meeting of Stockholders, scheduled to be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Class A Common Stock [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 44,757,500 | ||
Class B Common Stock [Member] | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 29,840,732 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 241,221 | $ 223,117 |
Accounts receivable, net | 117,878 | 104,984 |
Income tax receivable | 6,736 | 7,264 |
Prepaid expenses and other current assets | 21,100 | 17,092 |
Total current assets | 386,935 | 352,457 |
Property and equipment, net | 36,332 | 36,297 |
Operating lease right of use assets | 33,526 | 28,134 |
Goodwill | 264,481 | 233,683 |
Other intangible assets, net | 76,114 | 67,075 |
Deferred tax assets | 7,125 | 5,791 |
Other long-term assets | 25,389 | 19,708 |
TOTAL ASSETS | 829,902 | 743,145 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 30,384 | 430 |
Accounts payable | 8,594 | 8,585 |
Accrued compensation and benefits | 34,772 | 30,676 |
Current portion of operating lease liabilities | 10,331 | 9,141 |
Other accrued expenses and current liabilities | 30,982 | 28,603 |
Deferred revenue | 85,691 | 75,431 |
Total current liabilities | 200,754 | 152,866 |
Long-term debt, net of current portion | 188,653 | 178,238 |
Operating lease liabilities, net of current portion | 24,323 | 20,174 |
Deferred revenue, non-current | 9,388 | 8,136 |
Other long-term liabilities | 27,414 | 26,672 |
TOTAL LIABILITIES | 450,532 | 386,086 |
Commitments and contingencies | ||
MEZZANINE EQUITY | 784 | 2,352 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued or outstanding | ||
Additional paid-in capital | 474,669 | 446,633 |
Accumulated deficit | (93,293) | (82,405) |
Accumulated other comprehensive loss | (2,797) | (9,528) |
TOTAL STOCKHOLDERS’ EQUITY | 378,586 | 354,707 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | 829,902 | 743,145 |
Class A Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 4 | 4 |
Class B Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | $ 3 | $ 3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 513,796,572 | 513,797,000 |
Common stock, shares issued | 44,216,000 | 41,271,000 |
Common stock, shares outstanding | 44,216,000 | 41,271,000 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 41,203,428 | 41,203,000 |
Common stock, shares issued | 30,111,000 | 31,131,000 |
Common stock, shares outstanding | 30,111,000 | 31,131,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenue | $ 469,921 | $ 458,915 | $ 396,379 |
Total cost of revenue | 121,305 | 132,599 | 115,973 |
Gross profit | 348,616 | 326,316 | 280,406 |
Operating expenses | |||
Research and development | 126,081 | 117,510 | 97,592 |
Sales and marketing | 111,440 | 106,051 | 80,277 |
General and administrative | 86,432 | 82,178 | 79,751 |
Amortization of intangible assets | 16,376 | 14,442 | 7,739 |
Other operating income | (3,426) | (2,072) | (9,597) |
Total operating expenses | 336,903 | 318,109 | 255,762 |
Operating income | 11,713 | 8,207 | 24,644 |
Interest expense | 11,598 | 6,371 | 200 |
Other income, net | (1,917) | (1,552) | (2,580) |
Income before income taxes | 2,032 | 3,388 | 27,024 |
Income tax expense | 12,532 | 10,930 | 11,489 |
Net (loss) income | $ (10,500) | $ (7,542) | $ 15,535 |
(Loss) income per share: | |||
Net (loss) income per share attributable to common stockholders, basic | $ (0.14) | $ (0.11) | $ 0.23 |
Net (loss) income per share attributable to common stockholders, diluted | $ (0.14) | $ (0.11) | $ 0.21 |
Weighted average shares outstanding: | |||
Weighted average number of shares used in computing net (loss) income per share, basic | 73,241 | 71,544 | 67,468 |
Weighted average number of shares used in computing net (loss) income per share, diluted | 73,241 | 71,544 | 74,878 |
License [Member] | |||
Total revenue | $ 259,965 | $ 244,321 | $ 207,164 |
Total cost of revenue | 19,637 | 21,285 | 16,119 |
Maintenance and Other Services [Member] | |||
Total revenue | 131,746 | 122,381 | 97,197 |
Total cost of revenue | 38,688 | 38,401 | 29,655 |
Total Software [Member] | |||
Total revenue | 391,711 | 366,702 | 304,361 |
Total cost of revenue | 58,325 | 59,686 | 45,774 |
Software Related Services [Member] | |||
Total revenue | 26,454 | 34,576 | 36,945 |
Total cost of revenue | 21,243 | 25,640 | 26,415 |
Total Software and Related Services [Member] | |||
Total revenue | 418,165 | 401,278 | 341,306 |
Total cost of revenue | 79,568 | 85,326 | 72,189 |
Client Engineering Services [Member] | |||
Total revenue | 44,320 | 48,987 | 47,852 |
Total cost of revenue | 35,684 | 39,875 | 38,979 |
Other [Member] | |||
Total revenue | 7,436 | 8,650 | 7,221 |
Total cost of revenue | $ 6,053 | $ 7,398 | $ 4,805 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ (10,500) | $ (7,542) | $ 15,535 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation (net of tax effect of $0 for all periods) | 7,782 | 1,895 | (5,449) |
Retirement related benefit plans (net of tax effect of $308, $(16) and $318, respectively) | (1,051) | (133) | (769) |
Total other comprehensive income (loss) | 6,731 | 1,762 | (6,218) |
Comprehensive (loss) income | $ (3,769) | $ (5,780) | $ 9,317 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Foreign currency translation, tax effect | $ 0 | $ 0 | $ 0 |
Retirement related benefit plans, tax effect | $ 308 | $ (16) | $ 318 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common StockClass A Common Stock [Member] | Common StockClass B Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2017 | $ 58,948 | $ 77,744 | $ 2 | $ 4 | $ 232,156 | $ (168,142) | $ 77,744 | $ (5,072) |
Beginning balance (in shares) at Dec. 31, 2017 | 26,725 | 36,508 | ||||||
Net income (loss) | 15,535 | 15,535 | ||||||
Follow-on public offering, net of offering costs of $370 | 135,201 | $ 1 | $ (1) | 135,201 | ||||
Follow-on public offering, net of offering costs of $370 (shares) | 5,731 | (1,675) | ||||||
Adjustment for acquisitions | (96) | (96) | ||||||
Issuance of common stock for acquisitions | 8,681 | 8,681 | ||||||
Issuance of common stock for acquisitions (in shares) | 145 | |||||||
Exercise of stock options | 2,077 | $ 1 | 2,076 | |||||
Exercise of stock options (in shares) | 3,086 | |||||||
Conversion from Class B to Class A common stock | 2,662 | (2,662) | ||||||
Stock-based compensation | 1,814 | 1,814 | ||||||
Foreign currency translation, net of tax | (5,449) | (5,449) | ||||||
Retirement related benefit plans, net of tax | (769) | (769) | ||||||
Ending balance at Dec. 31, 2018 | 293,686 | $ 4 | $ 3 | 379,832 | (74,863) | (11,290) | ||
Ending balance (in shares) at Dec. 31, 2018 | 38,349 | 32,171 | ||||||
Net income (loss) | (7,542) | (7,542) | ||||||
Equity component of convertible senior notes, net of issuance costs | 50,009 | 50,009 | ||||||
Issuance of common stock for acquisitions | 7,637 | 7,637 | ||||||
Issuance of common stock for acquisitions (in shares) | 250 | |||||||
Exercise of stock options and other | 1,510 | 1,510 | ||||||
Exercise of stock options and other (in shares) | 1,571 | |||||||
Vesting of restricted stock (in shares) | 61 | |||||||
Conversion from Class B to Class A common stock | 1,040 | (1,040) | ||||||
Stock-based compensation | 7,645 | 7,645 | ||||||
Foreign currency translation, net of tax | 1,895 | 1,895 | ||||||
Retirement related benefit plans, net of tax | (133) | (133) | ||||||
Ending balance at Dec. 31, 2019 | 354,707 | $ (388) | $ 4 | $ 3 | 446,633 | (82,405) | $ (388) | (9,528) |
Ending balance (in shares) at Dec. 31, 2019 | 41,271 | 31,131 | ||||||
Net income (loss) | (10,500) | (10,500) | ||||||
Issuance of common stock for acquisitions | 3,504 | 3,504 | ||||||
Issuance of common stock for acquisitions (in shares) | 230 | |||||||
Exercise of stock options | 1,710 | 1,710 | ||||||
Exercise of stock options (in shares) | 1,472 | |||||||
Vesting of restricted stock (in shares) | 223 | |||||||
Conversion from Class B to Class A common stock | 1,020 | (1,020) | ||||||
Stock-based compensation | 21,254 | 21,254 | ||||||
Reclassification of mezzanine equity to permanent equity | 1,568 | 1,568 | ||||||
Foreign currency translation, net of tax | 7,782 | 7,782 | ||||||
Retirement related benefit plans, net of tax | (1,051) | (1,051) | ||||||
Ending balance at Dec. 31, 2020 | $ 378,586 | $ 4 | $ 3 | $ 474,669 | $ (93,293) | $ (2,797) | ||
Ending balance (in shares) at Dec. 31, 2020 | 44,216 | 30,111 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Follow-on public offering, offering costs | $ 370 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | |||
Net (loss) income | $ (10,500) | $ (7,542) | $ 15,535 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 23,806 | 21,522 | 14,734 |
Provision for credit loss | 1,259 | 671 | 394 |
Amortization of debt discount and issuance costs | 10,829 | 5,663 | 23 |
Stock-based compensation expense | 21,355 | 8,528 | 3,339 |
Gain on sale of assets held for sale | (4,503) | ||
Impairment of intangible assets | 0 | 608 | |
Deferred income taxes | (10,350) | (950) | (1,057) |
Other, net | 118 | 6 | (206) |
Changes in assets and liabilities: | |||
Accounts receivable | (11,032) | (7,901) | (1,394) |
Prepaid expenses and other current assets | (2,131) | (2,396) | 204 |
Other long-term assets | (4,527) | (2,591) | (1,660) |
Accounts payable | (1,839) | (426) | 1,647 |
Accrued compensation and benefits | 1,985 | (1,232) | 5,678 |
Other accrued expenses and current liabilities | 5,771 | 513 | (6,667) |
Operating lease right of use assets and liabilities, net | (142) | 102 | |
Deferred revenue | 8,280 | 17,426 | 9,555 |
Net cash provided by operating activities | 32,882 | 31,393 | 36,230 |
INVESTING ACTIVITIES: | |||
Payments for acquisition of businesses, net of cash acquired | (41,028) | (25,720) | (203,438) |
Capital expenditures | (6,093) | (9,660) | (6,659) |
Payments for acquisition of developed technology | (2,133) | (473) | (2,727) |
Proceeds from sale of assets held for sale and other | 6,614 | ||
Other investing activities, net | 162 | 14 | |
Net cash used in investing activities | (49,092) | (35,839) | (206,210) |
FINANCING ACTIVITIES: | |||
Borrowings under revolving commitment | 30,000 | 96,992 | 37,041 |
Proceeds from the exercise of stock options | 1,710 | 1,510 | 2,077 |
Proceeds from issuance of convertible senior notes, net of underwriters' discounts and commissions | 223,101 | ||
Payments on revolving commitment | (127,941) | (6,091) | |
Payments for issuance costs of convertible senior notes | (1,233) | ||
Proceeds from issuance of Class A common stock in follow-on public offering, net of underwriters' discounts and commissions | 135,572 | ||
Other financing activities | (460) | (513) | (1,069) |
Net cash provided by financing activities | 31,250 | 191,916 | 167,530 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,010 | 342 | (1,443) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 18,050 | 187,812 | (3,893) |
Cash, cash equivalents and restricted cash at beginning of year | 223,497 | 35,685 | 39,578 |
Cash, cash equivalents and restricted cash at end of period | 241,547 | 223,497 | 35,685 |
Supplemental disclosures of cash flow: | |||
Interest paid | 731 | 664 | 223 |
Income taxes paid | 12,666 | 7,686 | 6,735 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Issuance of common stock in connection with acquisitions | 3,504 | 7,637 | 8,681 |
Promissory notes issued and deferred payment obligations for acquisitions | 1,266 | 497 | 1,729 |
Finance leases | 118 | 632 | 895 |
Property and equipment in accounts payable and other current liabilities | $ 1,671 | $ 259 | $ 330 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. Description of business Altair Engineering Inc. (“Altair” or the “Company”) is incorporated in the state of Delaware. The Company is a global technology company providing software and cloud solutions in the areas of simulation, high-performance computing (“HPC”), data analytics, and artificial intelligence (“AI”). The Company’s simulation and AI-driven approach to innovation is powered by the Company’s broad portfolio of high-fidelity and high-performance physics solvers, our market leading technology for optimization and HPC, and our end-to-end platform for developing AI and Internet of Things (“IoT”) solutions. The Company’s integrated suite of software optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, electromagnetics, system modeling, and embedded systems, while also providing AI solutions and true-to-life visualization and rendering. Altair’s software products represent a comprehensive, open architecture solution for simulation, HPC, data analytics, and AI to empower decision making for improved product design and development, manufacturing, energy management and exploration, financial services, health care, and retail operations. Altair believes its products offer a comprehensive set of technologies to design and optimize high-performance, efficient, innovative and sustainable products and processes in an increasingly connected world. Altair also provides Client Engineering Services to support its customers with long-term ongoing product design and development expertise. This has the benefit of embedding the Company within customers, deepening its understanding of their processes, and allowing the Company to more quickly perceive trends in the overall market, helping the Company to better tailor its software products’ research and development and sales initiatives. The Company hires engineers and data scientists for placement at a customer site for specific customer-directed assignments. Follow-on public offering In June 2018, the Company closed its follow-on public offering (the “Offering”), in which the Company issued and sold 4,056,004 shares of Class A common stock (inclusive of 763,424 shares sold upon the exercise by the underwriters of their option to purchase additional shares of our Class A common stock). The price per share to the public was $35.00. The Company received aggregate proceeds of $135.6 million from the Offering, net of underwriters’ discounts and commissions, before deducting offering costs of approximately $0.4 million. The Offering also included the sale of 2,307,420 shares of Class A common stock by selling stockholders, giving effect to the conversion of 1,675,420 shares of the Company’s Class B common stock into an equivalent number of shares of Class A common stock and the exercise of 257,000 options to purchase Class A common stock. The Company did not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders other than the $0.5 million in proceeds from exercises of stock options by certain selling stockholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies Principles of consolidation The accompanying consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the results of the Company and its controlled subsidiaries. Third-party holdings of equity interests in the Company’s subsidiaries that are less than controlled represent noncontrolling interests. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. 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, the incremental borrowing rate used in the valuation of lease liabilities, fair value of convertible senior notes Foreign currency translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The assets and liabilities of the subsidiaries are translated to U.S. dollars at the exchange rate on the balance sheet date. Equity balances and transactions are translated using historical exchange rates. Revenues and expenses are translated at the average exchange rate during the period. Translation adjustments arising from the use of differing exchange rates from period to period are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. All assets and liabilities denominated in a currency other than the functional currency are remeasured into the functional currency with gains and losses recognized in foreign currency losses, net, in the consolidated statements of operations. The Company has no transactions which hedge purchase commitments and no intercompany balances which are designated as being of a long-term investment in nature. Revenue recognition Software revenue Revenue is derived principally from the licensing of software products and from related maintenance contracts. The Company enters into contracts that include combinations of products, maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns. Revenue from term-based software licenses is classified as software revenue. Term-based licenses are sold only as a bundled arrangement that includes the rights to a term-based software license and post-contract customer support (PCS), which includes unspecified technical enhancements and customer support. Maximizing the use of observable inputs, the Company determined that a majority of the estimated standalone selling prices of the term-based license is attributable to the term-based license and a minority is attributable to the PCS. The license component is classified as license revenue and recognized as revenue upon the later of delivery of the licensed product or the beginning of the license period In addition to term-based software licenses, the Company sells perpetual licenses. Software revenue is recognized upon the later of delivery of the licensed product or the beginning of the license period Revenue from training, consulting and other services is recognized as the services are performed, and is classified as maintenance and other services in the consolidated statement of operations. For contracts in which the service consists of a single performance obligation, such as providing a training class to a customer, the Company recognizes revenue upon completion of the performance obligation. For service contracts that are longer in duration and often include multiple performance obligations (for example, point-in-time training and consulting), the Company measures the progress toward completion of the obligations and recognizes revenue accordingly. In measuring progress towards the completion of performance obligations, the Company typically utilizes output-based estimates for services with fixed fee arrangements, and estimates output based on the total tasks completed as compared to the total tasks required for each contract. Input-based estimates are utilized for services that involve general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure. The Company also executes arrangements through indirect channel partners in which the channel partners are authorized to market and distribute the Company's software products to end users of the Company's products and services in specified territories. In sales facilitated by channel partners, the channel partner bears the risk of collection from the end-user customer. The Company recognizes revenue from transactions with channel partners in a manner consistent with the direct sales described above for both perpetual and term-based licenses. Revenue from channel partner transactions is the amount remitted to the Company by the channel partners. This amount includes a fee for PCS that is compensation for providing technical enhancements and the second level of technical support to the end user, which is recognized over the period that PCS is to be provided. The Company does not offer right of return, product Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the consolidated balance sheets as accounts receivable, net and other accrued expenses and current liabilities. These amounts are reported on a net basis in the consolidated statements of operations and do not impact reported revenues or expenses. Certain hardware revenue is included within software revenue and is recognized when all revenue recognition criteria stated above are met, which is generally when the products are delivered to end customers. Software related services Consulting services from product design and development projects are considered distinct performance obligations and are provided to customers on a time-and-materials (“T&M”) or fixed-price basis. The Company recognizes software services revenue for T&M contracts based upon hours worked and contractually agreed upon hourly rates using the input method. Revenue from fixed-price engagements is recognized using the output method based on the ratio of costs incurred to total estimated project costs. Client engineering services Client engineering services revenue are derived from professional services for staffing primarily representing engineers and data scientists located at a customer site. These professional services are considered distinct performance obligations and are provided to customers on a T&M basis. The Company recognizes this revenue for T&M contracts based upon hours worked and contractually agreed upon hourly rates using the input method. Other Other revenue includes product revenue from the sale of LED products primarily for the replacement of fluorescent tubes. Revenue from the sale of LED products is recognized when all revenue recognition criteria stated above are met, which is generally when the products are delivered to resellers or to end customers. Sales returns, which reduce revenue, are estimated using historical experience. 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 statements of cash flows (in thousands): December 31, 2020 2019 Cash and cash equivalents $ 241,221 $ 223,117 Restricted cash included in other long-term assets 326 380 Total cash, cash equivalents, and restricted cash $ 241,547 $ 223,497 Restricted cash represents amounts required for a contractual agreement with an insurer for the payment of potential health insurance claims, and term deposits for bank guarantees. Accounts receivable, net Accounts receivable, net consisted of the following (in thousands): December 31, 2020 2019 Accounts receivable, trade $ 111,162 $ 100,461 Contract assets 6,716 4,523 Accounts receivable, net $ 117,878 $ 104,984 A provision for expected credit losses for groups of billed and unbilled receivables and contract assets that share similar risk characteristics is recorded based on an evaluation of historical loss experience, current conditions, and reasonable and supportable forecasts. Accounts are written off when it becomes apparent that such amounts will not be collected, generally when amounts are past due by greater than one year. Generally, the Company does not require collateral or charge interest on accounts receivable. Accounts receivable were reported net of a provision for credit loss of $2.6 million and $1.4 million at December 31, 2020 and 2019, respectively. For the Year Ended December 31, 2020 2019 2018 Balance, beginning of year $ (1,415 ) $ (1,150 ) $ (798 ) Adoption of ASC 326 on beginning allowance (388 ) — — Provision charged to expense (1,259 ) (671 ) (394 ) Write-offs, net of recoveries 563 413 3 Effects of foreign currency translation (60 ) (7 ) 39 Balance, end of year $ (2,559 ) $ (1,415 ) $ (1,150 ) The change in the provision for credit loss was driven by the $0.4 million from the adoption of ASU 2016-13 and incremental losses in the current year including an immaterial impact of COVID-19 as the Company adjusted expected credit loss rates subsequent to adoption. The impact resulting from the increased credit loss rates did not have a material effect on the Company’s consolidated financial statements and is reflected in the amounts noted above. Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation and amortization. Equipment held under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are charged to expense in the period incurred. Major expenditures for betterments are capitalized when they meet the criteria for capitalization. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized. Building and improvements is depreciated over an estimated useful life of five to thirty-nine years. Computer equipment and software is depreciated over an estimated useful life of three to five years. Office furniture and equipment is depreciated over an estimated useful life of five to fifteen years. Leasehold improvements and assets acquired under capital leases are amortized over the lease term or the estimated useful life of the related asset or improvement, whichever is shorter. Software development costs Software development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Technological feasibility is established upon the completion of a detailed program design. Capitalization of software development costs begins upon the establishment of technological feasibility and ends when the product is available for general release. Generally, the time between the establishment of technological feasibility and commercial release of software is short. As such, all internal software development costs have been expensed as incurred and included in research and development expense in the accompanying consolidated statements of operations. Impairment of long-lived assets Long-lived assets, such as property and equipment, and definite-lived intangible assets, including developed technology and customer relationships, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company compares the undiscounted future cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models and third-party independent appraisals. No impairment losses were recognized in 2020, 2019, or 2018. Goodwill and other indefinite-lived intangible assets Goodwill represents the excess of the consideration transferred for an acquired entity over the estimated fair values of the net tangible assets and the identifiable assets acquired. As described in Note 4—Acquisitions and disposals, the Company has recorded goodwill in connection with certain acquisitions. Goodwill and other indefinite-lived intangible assets are not amortized, but rather are reviewed for impairment annually or more frequently if facts or circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is one reporting unit with goodwill subject to goodwill impairment testing. An entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount prior to performing the quantitative two-step impairment test. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount prior to performing the quantitative two-step impairment test. The qualitative assessment evaluates various events and circumstances, such as macro-economic conditions, industry and market conditions, cost factors, relevant events and financial trends that may impact a reporting unit’s fair value. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then additional impairment testing is not required. However, if an entity concludes otherwise, then it is required to perform the two-step goodwill impairment test. The impairment test involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired. If, however, the fair value of the reporting unit is less than book value, then an impairment loss is recognized in an amount equal to the amount that the book value of the reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company performs its annual impairment review of goodwill in the fourth quarter of each year and when a triggering event occurs between annual impairment dates. For 2020, the Company performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of its reporting unit with goodwill was less than the carrying amounts. Accordingly, the Company determined that its goodwill was not impaired. The Company performs its annual impairment review of indefinite-lived intangibles in the fourth quarter of each year and when a triggering event occurs between annual reporting dates. Receivable for R&D credit The French government provides a research and development (“R&D”) tax credit known as Credit Impôt Recherche, or CIR, in order to encourage Companies to invest in R&D. The tax credit is deductible from the French income tax and any excess is carried forward for three years. After three years, any unused credit may be reimbursed to the Company by the French government. As of December 31, 2020, the Company had approximately $13.2 million receivables from the French government related to CIR, of which $3.2 million is recorded in income tax receivable and the remaining $10.0 million is recorded in other long-term assets. As of December 31, 2019, the Company had approximately $12.1 million receivables from the French government related to CIR, of which $2.5 million was recorded in income tax receivable and the remaining $9.6 million was recorded in other long-term assets. CIR is subject to customary audit by the French tax authorities. Derivative financial instruments The Company may use derivative financial instruments, primarily interest rate swap contracts or foreign currency contracts, to hedge its exposure to interest rate or foreign exchange risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts during the year are recorded in other (income) expense, net in the consolidated statement of operations. Hedge accounting has not been applied. Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent it believes that these assets will more likely than not be realized. These deferred tax assets are subject to periodic assessments as to recoverability and if it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recorded which increase the provision for income taxes. In making such determination, the Company considers all available positive and negative evidence, including historical taxable income, projected future taxable income, the expected timing and reversal of existing temporary differences, ability to carryback losses, and tax planning strategies. If based upon the evidence, it is more likely than not that the deferred tax asset will not be realized, a valuation allowance is recorded. A valuation allowance is recognized to reduce deferred tax assets to the amount that management believes is more likely than not to be realized. The Company applies a more-likely-than-not recognition threshold to its accounting for tax uncertainties. The Company reviews all of its tax positions and makes determinations as to whether its tax positions are more likely than not to be sustained upon examination by the relevant taxing authorities. Only those benefits that have a greater than fifty percent likelihood of being sustained upon examination by taxing authorities are recognized. Interest and penalties related to uncertain tax positions are recorded in the provision for income taxes in the consolidated statements of operations. Research and development costs Research and development costs are expensed as incurred. Research and development expenses consist primarily of salaries and benefits of research and development employees and costs incurred related to the development of new software products and significant enhancements and engineering changes to existing software products. Advertising costs Advertising costs are expensed as incurred. Advertising expenses were $4.0 million, $4.5 million and $4.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. Mezzanine equity In 2017, the Company issued 200,000 shares of Class A common stock to a third party as partial consideration for the purchase of developed technology. These shares have a put right that can be exercised by the holder five years from date of purchase at $12.50 per share that requires the shares to be recorded at fair value and classified as mezzanine equity in the consolidated balance sheet. The put right option is terminated if the shareholders sell their shares. As of December 31, 2017, the Company concluded that it is no longer probable that the put option will be exercised as the put value is substantially below market value and subsequent adjustment is not required. During the year ended December 31, 2020, the third party holder sold 133,336 shares on the open market and as a result, the issuance value of those shares was reclassified into permanent equity from mezzanine equity. The remaining 66,664 shares continue to be classified as mezzanine equity until one of the following three events take place: (1) the shares are sold on the open market; (2) a redemption feature lapses; or (3) there is a modification of the terms of the instrument. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities, net of current portion on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, current portion of long-term debt, and long-term debt, net of current portion on the consolidated balance sheets. The Company did not receive any lease concessions related to COVID-19 that had a material effect on the Company’s consolidated financial statements. Stock-based compensation Employee stock-based awards, consisting of stock options or restricted stock units (RSUs) expected to be settled by issuing shares of Class A common stock, are recorded as equity awards. The fair value of stock options on the date of grant is measured using the Black-Scholes option pricing model. The Company expenses the grant date fair value of its time-vested stock options subject to graded vesting using the straight-line method over the applicable service period. The fair value of RSUs is measured using the fair value of the Company’s Class A common stock on the date of the grant. The fair value of RSUs is recognized as expense on a straight-line basis over the requisite service period, which is generally four years. Business combinations The Company accounts for business acquisitions using the acquisition method of accounting. The fair value of purchase consideration of the acquired businesses is allocated to the identifiable tangible and intangible assets acquired and liabilities assumed in the transaction based upon their estimated fair values as of the acquisition date. Recent accounting guidance Accounting standards adopted Credit Losses – In June 2016, the FASB issued ASU 2016-13, . The ASU significantly changed how entities measure credit losses on most financial assets. The Company adopted ASU 2016-13 effective January 1, 2020 and recorded a cumulative effect adjustment to retained earnings of $0.4 million related to the adoption of ASU 2016-13; prior periods have not been adjusted. Fair Value – In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements, by removing, modifying, or adding certain disclosures. The Company adopted ASU 2018-13 on January 1, 2020. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements . Intangibles – In August 2018, the FASB issued ASU 2018-15, This ASU clarifies and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018-15 on January 1, 2020, on a prospective basis. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements . Accounting standards not yet adopted Retirement Benefits – In August 2018, the FASB issued ASU 2018-14, This ASU modifies the disclosure requirements for defined benefit pension or other postretirement plans. The amendments are effective for fiscal years ending after December 15, 2020; early adoption is permitted. The Company is currently evaluating the impact of the 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. Income Taxes – In December 2019, the FASB issued ASU 2019-12, This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improves consistent application of GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020; early adoption is permitted. The Company is currently evaluating the impact of the 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 . Reference Rate Reform – In March 2020, the FASB issued ASU 2020-04. 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. The amendments in the guidance are optional and effective for all entities as of March 12, 2020 through December 31, 2022. 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. Debt – In August 2020, the FASB issued ASU No. 2020-06, This ASU simplifies the accounting for convertible instruments by eliminating certain separation models. Under ASU 2020 - 06 , a convertible debt instrument will generally be reported as a single liability at its amortized cost with no separate accounting for embedded conversion features. The update also requires the if-converted method to be used for convertible instruments and the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or shares. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The guidance allows entities to use a modified or full retrospective transition method. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the timing and method of adoption and the related effect of the new guidance on its consolidated financial statements and earnings per share attributable to common stockholders. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from contracts with customers Revenue recognition Software revenue Revenue is derived principally from the licensing of software products and from related maintenance contracts. The Company enters into contracts that include combinations of products, maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns. Revenue from term-based software licenses is classified as software revenue. Term-based licenses are sold only as a bundled arrangement that includes the rights to a term-based software license and post-contract customer support (PCS), which includes unspecified technical enhancements and customer support. Maximizing the use of observable inputs, the Company determined that a majority of the estimated standalone selling prices of the term-based license is attributable to the term-based license and a minority is attributable to the PCS. The license component is classified as license revenue and recognized as revenue upon the later of delivery of the licensed product or the beginning of the license period In addition to term-based software licenses, the Company sells perpetual licenses. Software revenue is recognized upon the later of delivery of the licensed product or the beginning of the license period Revenue from training, consulting and other services is recognized as the services are performed, and is classified as maintenance and other services in the consolidated statement of operations. For contracts in which the service consists of a single performance obligation, such as providing a training class to a customer, the Company recognizes revenue upon completion of the performance obligation. For service contracts that are longer in duration and often include multiple performance obligations (for example, point-in-time training and consulting), the Company measures the progress toward completion of the obligations and recognizes revenue accordingly. In measuring progress towards the completion of performance obligations, the Company typically utilizes output-based estimates for services with fixed fee arrangements, and estimates output based on the total tasks completed as compared to the total tasks required for each contract. Input-based estimates are utilized for services that involve general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure. The Company also executes arrangements through indirect channel partners in which the channel partners are authorized to market and distribute the Company's software products to end users of the Company's products and services in specified territories. In sales facilitated by channel partners, the channel partner bears the risk of collection from the end-user customer. The Company recognizes revenue from transactions with channel partners in a manner consistent with the direct sales described above for both perpetual and term-based licenses. Revenue from channel partner transactions is the amount remitted to the Company by the channel partners. This amount includes a fee for PCS that is compensation for providing technical enhancements and the second level of technical support to the end user, which is recognized over the period that PCS is to be provided. The Company does not offer right Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the consolidated balance sheets as accounts receivable, net and other accrued expenses and current liabilities. These amounts are reported on a net basis in the consolidated statements of operations and do not impact reported revenues or expenses. Certain hardware revenue is included within software revenue and is recognized when all revenue recognition criteria stated above are met, which is generally when the products are delivered to end customers. Software related services revenue Consulting services from product design and development projects are considered distinct performance obligations and are provided to customers on a time-and-materials (“T&M”) or fixed-price basis. The Company recognizes software services revenue for T&M contracts based upon hours worked and contractually agreed upon hourly rates using the input method. Revenue from fixed-price engagements is recognized using the output method based on the ratio of costs incurred, to the total estimated project costs. Client engineering services and Other revenue Client engineering services revenue are derived from professional services for staffing primarily representing engineers and data scientists located at a customer site. These professional services are considered distinct performance obligations and are provided to customers on a T&M basis. The Company recognizes this revenue for T&M contracts based upon hours worked and contractually greed upon hourly rates using the input method. No significant judgments were made for revenue recognition within Other revenue. Significant judgments Software revenue The Company’s contracts with customers typically include promises to transfer licenses and services to a customer. Judgment is required to determine if the promises are separate performance obligations within the context of the arrangement, and if so, the allocation of the transaction price to each performance obligation. The Company’s determination of standalone selling price for performance obligations is based on the midpoint of the range of historical observable prices for goods and services sold separately. In addition, the Company estimates the standalone selling price for certain performance obligations where observable prices are not directly available, or a significant portion of historical prices are not within the range. In instances where standalone selling price was not determined based on the range of historical observable prices for goods and services sold separately, the Company used an adjusted market assessment approach to estimate the standalone selling price. In such cases the Company has considered market conditions and other observable inputs, such as internal price lists, peer data, and industry data for a similar or identical product. The Company estimates standalone selling price at contract inception considering all information that is reasonably available and is based on the amount of consideration for which the Company expects to be entitled in exchange for transferring the promised good or service to the customer. The corresponding revenues are recognized as the related performance obligations are satisfied. The Company’s contracts do not include a significant financing component requiring adjustment to the transaction price. Payment terms vary by contract type; however, arrangements typically stipulate a requirement for the customer to pay within 30 to 60 days. The Company rarely enters into agreements to modify previously executed contracts, which constitute contract modifications. The Company assesses each of these contract modifications to determine (i) if the additional products and services are distinct from the products and services in the original arrangement; and (ii) if the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services, as adjusted for contract-specific circumstances. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either (i) a prospective basis as a termination of the existing contract and the creation of a new contract; or (ii) a cumulative catch-up basis. Generally, the Company’s contract modifications meet both criteria and are accounted for as a separate contract, as adjusted for contract-specific circumstances. Disaggregation of revenue The Company disaggregates its software revenue by type of performance obligation and timing of revenue recognition as follows (in thousands): Year Ended December 31, 2020 2019 2018 Term licenses $ 224,472 $ 201,881 $ 168,909 Perpetual licenses 35,493 42,440 38,255 Maintenance 117,159 103,699 86,150 Professional software services 14,587 18,682 11,047 Software related services 26,454 34,576 36,945 Client engineering services 44,320 48,987 47,852 Other 7,436 8,650 7,221 Total revenue $ 469,921 $ 458,915 $ 396,379 T he Company derived approximately 10% of its total revenue through indirect sales channels for the years ended December 31, 2020, 2019 and 2018. Costs to obtain a contract The Company pays commissions for new software product and PCS sales as well as for renewals of existing software and PCS contracts. Commissions paid to obtain renewal contracts are not commensurate with the commissions paid for new product sales and therefore, a portion of the commissions paid for new contracts relate to future renewals. The Company accounts for new product sales commissions using a portfolio approach and allocates the cost of commissions in proportion to the allocation of transaction price of license and PCS performance obligations. Commissions allocated to the license and license renewal components are expensed at the time the license revenue is recognized. Commissions allocated to PCS are capitalized and amortized on a straight-line basis over a period of four years Contract assets At December 31, 2020, contract assets were $6.7 million included in Accounts receivable, $1.4 million included in Prepaid expenses and other current assets, and $1.3 million included in Other long-term assets. At December 31, 2019, contract assets were $4.5 million included in Accounts receivable and $2.7 million included in Prepaid expenses and other current assets. Deferred revenue Deferred revenue consists of billings made or payments received in advance of revenue recognition from software license, PCS and professional services agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The term between invoicing and when payment is due is not significant. The Company generally invoices its customers annually for the forthcoming year of software licenses, and more frequently for other products and services. Accordingly, the Company’s deferred revenue balance does not include revenue for future years of multiple year non-cancellable contracts that have not yet been billed. Approximately $74.5 million of revenue was recognized during 2020 was included in the deferred revenue balances 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 $131.4 million and $113.5 million at December 31, 2020 and 2019, respectively, of which the Company expects to recognize approximately 84% and 80% of the revenue, respectively, over the next 12 months and the remainder thereafter. |
Acquisitions and Disposals
Acquisitions and Disposals | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Disposals | 4. Acquisitions and disposals Univa In September 2020, the Company acquired all of the outstanding capital stock and equity interests of Univa Corporation (“Univa”) for a preliminary base purchase price of $30.2 million, subject to certain adjustments. Univa is a leading innovator in enterprise-grade workload management, scheduling, and optimization solutions for HPC and artificial intelligence (AI) on-premises and in the cloud. Univa’s technology complements Altair’s HPC and data analytics solutions and enables the Company to further expand into life sciences and financial services. Univa is headquartered in Chicago, with offices in Canada and Germany. The financial results of Univa have been included in the Company’s consolidated financial statements since the acquisition date . The acquisition of Univa has been accounted for as a business combination under the acquisition method of accounting, which results in acquired assets and assumed liabilities being measured at their estimated fair value as of the acquisition date. The following table summarizes the preliminary purchase consideration transferred to acquire Univa and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 30,184 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 193 Accounts receivable 956 Other assets 164 Trade names (4-year life) 200 Developed technology (6-year life) 9,000 Customer relationships (7-year life) 4,800 Accounts payable and other liabilities (891 ) Deferred revenue (874 ) Deferred tax liabilities (1,100 ) Total net identifiable assets acquired and liabilities assumed 12,448 Goodwill $ 17,736 (1) Goodwill is primarily attributable to market synergies expected to arise after the acquisition and is not deductible for tax purposes. All goodwill is recorded in the Software segment. The preliminary estimated fair values of assets acquired and liabilities assumed, and identifiable intangible assets may be subject to change as additional information is received. The primary areas that remain preliminary relate to the fair value of intangible assets acquired, certain tangible assets and liabilities acquired, income taxes and residual goodwill. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. Other business acquisitions During the year ended December 31, 2020, the Company completed other business acquisitions that were individually insignificant to the Company’s consolidated financial statements. The aggregate purchase price of these other acquisitions was $16.9 million and was allocated to assets acquired and liabilities assumed at their estimated fair values. The allocation included $6.2 million to developed technology, $2.2 million to customer relationships and $8.2 million to goodwill, and approximately $0.7 million is deductible for tax purposes. The operating results of each acquisition have been included in the consolidated financial statements since the respective dates of acquisition. All goodwill is recorded in the Software segment. Polliwog In October 2019, the Company entered into a stock purchase agreement and simultaneously acquired 97% of the outstanding capital stock of Polliwog Co. Ltd. (“Polliwog”), a software company based near Seoul, Korea, for aggregate consideration of $19.3 million. In October 2022, t . The allocation of fair value of purchase consideration was finalized in 2020, and there were no material changes to the fair value of assets acquired and liabilities assumed, as previously reported. DEM Solutions Limited In November 2019, the Company entered into a stock purchase agreement and simultaneously acquired 100% of the outstanding capital stock of DEM Solutions Limited (“DEM Solutions”), a company based in Edinburgh, UK, for aggregate consideration of $13.1 million . WEYV In July 2019, the Company decided to sunset operations of its WEYV business, a consumer music and content service. The Company concluded that this decision was not a strategic shift that has or will have a major effect on its operations and financial results, and therefore did not meet the accounting criteria to be classified as a discontinued operation. The operations of WEYV ceased in the third quarter of 2019. The loss on disposal was not material and is included in other operating income in the consolidated statement of operations. WEYV had a loss before income tax of $3.0 million and $4.2 million for the years ended December 31, 2019 and 2018, respectively. The WEYV business is reported in All Other within the Company’s segment information in Note 18. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and equipment, net Property and equipment consisted of the following (in thousands): Estimated December 31, useful lives 2020 2019 Land Indefinite $ 10,067 $ 9,942 Building and improvements 5-39 years 15,630 15,512 Computer equipment and software 3-5 years 41,451 37,361 Office furniture and equipment 5-15 years 10,136 8,029 Leasehold improvements (1 ) 9,652 9,014 Right of use assets under finance leases (1 ) 2,665 2,745 Total property and equipment 89,601 82,603 Less: accumulated depreciation and amortization 53,269 46,306 Property and equipment, net $ 36,332 $ 36,297 (1) Shorter of lease term or estimated useful life, generally ranging from five to ten years. Depreciation expense, including amortization of ROU assets under finance leases, was $7.4 million, $7.1 million and $7.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and other intangible assets Goodwill The changes in the carrying amount of goodwill, which is attributable to the Software reportable segment, are as follows (in thousands): Balance at December 31, 2018 $ 210,532 Acquisitions 21,922 Effects of foreign currency translation and other 1,229 Balance at December 31, 2019 233,683 Acquisitions 25,932 Effects of foreign currency translation and other 4,866 Balance at December 31, 2020 $ 264,481 Other intangible assets A summary of other intangible assets is shown below (in thousands): December 31, 2020 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4-6 years $ 78,841 $ 37,651 $ 41,190 Customer relationships 7-10 years 40,207 16,673 23,534 Other intangibles 4-10 years 344 84 260 Total definite-lived intangible assets 119,392 54,408 64,984 Indefinite-lived intangible assets: Trade names 11,130 11,130 Total other intangible assets $ 130,522 $ 54,408 $ 76,114 December 31, 2019 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4-6 years $ 60,916 $ 25,838 $ 35,078 Customer relationships 7-10 years 32,582 11,575 21,007 Other intangibles 10 years 111 62 49 Total definite-lived intangible assets 93,609 37,475 56,134 Indefinite-lived intangible assets: Trade names 10,941 10,941 Total other intangible assets $ 104,550 $ 37,475 $ 67,075 Amortization expense related to amortizing intangible assets was $16.4 million, $14.4 million and $7.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated amortization expense for the next five years as of December 31, 2020 is as follows (in thousands): Year ending December 31, 2021 $ 17,763 December 31, 2022 14,348 December 31, 2023 15,406 December 31, 2024 8,204 December 31, 2025 4,745 Thereafter 4,518 Total $ 64,984 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt The carrying value of debt is as follows (in thousands): December 31, 2020 2019 Convertible senior notes $ 230,000 $ 230,000 Revolving credit facility 30,000 — Obligations for finance leases 775 1,174 Total debt 260,775 231,174 Less: unamortized debt discount 37,190 46,820 Less: unamortized debt issuance costs 4,548 5,686 Less: current portion of long-term debt 30,384 430 Long-term debt, net of current portion $ 188,653 $ 178,238 Convertible senior notes In June 2019, the Company issued $230.0 million aggregate principal amount of 0.25% convertible senior notes due in 2024 (the "Convertible Notes"), which includes the underwriters’ exercise in full of their option to purchase an additional $30.0 million principal amount of the Convertible Notes, in a public offering. The net proceeds from the issuance of the Convertible Notes were $221.9 million after deducting the underwriting discounts and commissions and issuance costs. The Company entered into a First Supplemental Indenture relating to the issuance by the Company of the Convertible Notes (the “Supplemental Indenture”) supplementing the Indenture, dated June 10, 2019 (the “Base Indenture,” and together with the Supplemental Indenture, the “Indenture”), by and between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Indenture includes customary covenants and sets forth certain events of default after which the Convertible Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company after which the Convertible Notes become automatically due and payable. The Convertible Notes are senior unsecured obligations of the Company. The Convertible 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, commencing December 1, 2019. The Convertible Notes will mature on June 1, 2024, unless, earlier repurchased or redeemed by the Company or converted pursuant to their terms. The Convertible Notes have an initial conversion rate of 21.5049 shares of the Company's Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $46.50 per share of its Class A common stock. The conversion rate will be subject to adjustment upon the occurrence of certain events specified in the Indenture but will not be adjusted for any accrued and unpaid interest. In addition, upon the occurrence of a make whole fundamental change or a redemption period (each as defined in the Indenture), the Company will, in certain circumstances, increase the conversion rate by a specified number of additional shares for a holder who elects to convert its Convertible Notes in connection with such make whole fundamental change or during the relevant redemption period. Holders of the Convertible Notes may convert all or any portion of their Convertible Notes at any time prior to the close of business on December 1, 2023, in integral multiples of $1,000 principal amount, only under the following circumstances: • During any calendar quarter, if the last reported sale price of the Class A Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • During the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Class A Common Stock and the conversion rate on each such trading day; • If the Company calls any or all of the Convertible Notes for redemption (which the Company may not do prior to June 6, 2022), at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • Upon the occurrence of specified corporate events. On or after December 1, 2023 until the close of business on the business day immediately preceding the maturity date, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, 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. The Company intends to settle the principal amount of the Convertible Notes in cash and the conversion spread in shares. During the quarter ended December 31, 2020, the conditions allowing holders of the Convertible Notes to convert were not met. Therefore, the Convertible Notes were classified as long-term debt on the consolidated balance sheet as of December 31, 2020. As of December 31, 2020, the “if-converted value” exceeded the principal amount of the Convertible Notes by $57.8 million. The Company accounts for the Convertible Notes as separate liability and equity components. The carrying amount of the liability component of the Convertible Notes was calculated by measuring the fair value of similar debt instruments that did not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Convertible Notes. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense over the term of the Convertible Notes using the effective interest method. The $51.8 million difference between the gross proceeds received from issuance of the Convertible Notes of $230.0 million and the estimated fair value of the liability component of $178.2 million, represents the equity component that was recorded in additional paid-in capital. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocated issuance costs related to the issuance of the Convertible Notes to the liability and equity components using the same proportions as the initial carrying value of the Convertible Notes. Issuance costs attributable to the liability component are being amortized to interest expense using the effective interest method over the term of the Convertible Notes. Issuance costs attributable to the equity component are included with the equity component in stockholders’ equity. The net carrying value of the liability component of the Convertible Notes was as follows (in thousands): December 31, 2020 2019 Principal $ 230,000 $ 230,000 Less: unamortized debt discount 37,190 46,820 Less: unamortized debt issuance costs 4,510 5,686 Net carrying amount $ 188,300 $ 177,494 The net carrying value of the equity component of the Convertible Notes was $50.0 million at December 31, 2020 and 2019. The interest expense related to the Convertible Notes was as follows (in thousands): For the Year Ended December 31, 2020 2019 Contractual interest expense $ 575 $ 313 Amortization of debt issuance cost and discount 10,806 5,635 Total $ 11,381 $ 5,948 Credit agreement Revolving credit facility The Company has a $150.0 million credit agreement that was amended on June 5, 2019, to permit the issuance of the Convertible Notes and extend the maturity date of the credit facility to December 15, 2023 (“2019 Amended Credit Agreement”). The 2019 Amended Credit Agreement provides for an accordion feature that allows the Company to expand the size of the revolving line of credit by an additional $50.0 million, subject to certain conditions, by obtaining additional commitments from the existing lenders or by causing a person acceptable to the administrative agent to become a lender (in each case subject to the terms and conditions set forth in the 2019 Amended Credit Agreement). As of December 31, 2020, the Company had $30.0 million of outstanding borrowings under the 2019 Amended Credit Agreement and there was $120.0 million available for future borrowing at that time. In January 2021, the Company repaid the $30.0 million borrowing outstanding at December 31, 2020. The 2019 Amended Credit Agreement is available for general corporate purposes, including working capital, capital expenditures, and permitted acquisitions. Borrowings under the 2019 Amended Credit Agreement bear interest at a rate per annum equal to an agreed upon applicable margin plus, at the Company’s option, either the Alternate Base Rate (defined as the greatest of (1) the Prime Rate (as defined in the 2019 Amended Credit Agreement) in effect on such day, (2) the Federal Funds Effective Rate (as defined in the 2019 Amended Credit Agreement) in effect on such day plus 1/2 of 1.00% or (3) the Adjusted LIBO Rate (as defined in the 2019 Amended Credit Agreement) for a one month interest period on such day (or if such day is not a business day, the immediately preceding business day) plus 1.00%) or the Adjusted LIBO Rate. The applicable margin for borrowings under the 2019 Amended Credit Agreement is based on the Company’s most recently tested consolidated total net leverage ratio and will vary from (a) in the case of Eurodollar loans, 1.25% to 2.00%, and (b) in the case of ABR loans or swingline loans, 0.25% to 1.00%. The Company pays a commitment fee ranging from 0.15% to 0.30% on the unused portion of the 2019 Amended Credit Agreement. The weighted average interest rate on borrowings under the 2019 Amended Credit Agreement was 1.5% for the year ended December 31, 2020. Collateral and guarantees The 2019 Amended Credit Agreement is secured by collateral including (i) substantially all of the Company’s properties and assets, and the properties and assets of the Company’s domestic subsidiaries but excluding any patents, copyrights, patent applications or copyright applications or any trade secrets or software products and (ii) pledges of the equity interests in all present and future domestic subsidiaries (subject to certain exceptions as provided for under the 2019 Amended Credit Agreement). The Company’s direct and indirect domestic subsidiaries are guarantors of all the obligations under the 2019 Amended Credit Agreement. Debt covenants The 2019 Amended Credit Agreement requires the Company to maintain the following financial covenants: • Maximum Net Leverage Ratio : On the last day of each fiscal quarter, the Company on a consolidated basis will not permit the ratio of total indebtedness (net of unrestricted domestic cash in excess of $20.0 million) to EBITDA, as such terms are defined in the 2019 Amended Credit Agreement, for the rolling four quarter period ending on such date to be greater than 5.00 to 1.00 as of the last day of each fiscal quarter. • Senior Secured Leverage Ratio : On the last day of each fiscal quarter, the Company on a consolidated basis will not permit the ratio of total indebtedness secured by a lien (net of unrestricted domestic cash in excess of $20.0 million) to EBITDA, as such terms are defined in the 2019 Amended Credit Agreement, for the rolling four quarter period ending on such date to be greater than 3.00 to 1.00 as of the last day of each fiscal quarter. • Consolidated Interest Coverage Ratio : On the last day of each fiscal quarter, the Company on a consolidated basis will not permit the ratio of (x) EBITDA to (y) cash Consolidated Interest Expense, as such terms are defined in the 2019 Amended Credit Agreement, in each case for the rolling four quarter period ending on such date, to be less than 3.00 to 1.00 as of the last day of each fiscal quarter. At December 31, 2020, the Company was in compliance with all of the above financial covenants. Other The Company has available overdraft and line of credit facilities in several countries in which it operates. These credit facilities are with various domestic and international banks and are at quoted market rates. At December 31, 2020 and 2019, the Company had $3.6 million and $3.5 million, respectively, of availability under these facilities and there were no outstanding commitments. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 8. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets and operating lease obligations on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, current portion of long-term debt, and long-term debt on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments under the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. At commencement date, the ROU asset also includes adjustments for lease prepayments, lease incentives received and the lessee's initial direct costs, if applicable. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rates are determined using rates specific to the term of the lease, economic environments where lease activity is concentrated, value of lease portfolio, and assuming full collateralization of the loans. Subsequent to the commencement date, the operating ROU asset is equal to the remeasured lease liability adjusted for cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, unamortized lease incentives, unamortized initial direct costs and any impairment of the ROU assets. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease cost for minimum lease payments is recognized on a straight-line basis over the lease term. The Company does not recognize a lease liability or ROU asset for short-term leases (leases with a term of twelve months or less). For contracts with lease and non-lease components, the Company does not allocate the contract consideration, and accounts for the lease and non-lease components as a single lease component. The Company’s operating leases consist of office facilities, office equipment and cars and the Company’s finance leases consist of office equipment and cars. The Company’s leases have remaining terms of less than one year to 8.7 years, some of which include one or more options to renew, with renewal terms up to six years and some of which include options to terminate the leases within the next three years. The components of lease cost were as follows (in thousands): For the Year Ended December 31, 2020 2019 Operating lease cost $ 13,412 $ 13,287 Finance lease cost: Amortization of ROU assets $ 634 $ 525 Interest on lease liabilities 32 21 Total finance lease cost $ 666 $ 546 Operating lease cost includes short-term leases and variable lease costs, which are immaterial. Rent cost related to operating leases for office facilities was $12.1 million, $11.8 million and $11.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. Supplemental balance sheet information related to lease liabilities was as follows: December 31, (in thousands, except lease term and discount rate) 2020 2019 Operating leases: Operating lease ROU assets $ 33,526 $ 28,134 Current portion of operating lease liabilities $ 10,331 $ 9,141 Operating lease liabilities, net of current portion 24,323 20,174 Total operating lease liabilities $ 34,654 $ 29,315 Weighted average remaining lease term 4.2 4.2 Weighted average discount rate 4.7 % 5.6 % Finance leases: Property and equipment $ 2,665 $ 2,745 Accumulated depreciation (1,797 ) (1,447 ) Property and equipment, net $ 868 $ 1,298 Current portion of long-term debt $ 422 $ 430 Long-term debt, net of current portion 353 744 Total finance lease liabilities $ 775 $ 1,174 Weighted average remaining lease term 2.1 2.7 Weighted average discount rate 3.1 % 3.5 % Supplemental cash flow information related to leases was as follows (in thousands): For the Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (11,875 ) $ (11,355 ) Operating cash flows from finance leases $ (32 ) $ (46 ) Financing cash flows from finance leases $ (456 ) $ (438 ) ROU assets obtained in exchange for lease obligations: Operating leases $ 11,713 $ 11,251 Finance leases $ 118 $ 632 Maturities of operating lease liabilities at December 31, 2020, were as follows (in thousands): Year ending December 31, 2021 $ 11,704 2022 9,408 2023 6,900 2024 4,178 2025 2,786 Thereafter 3,203 Total lease payments 38,179 Less: imputed interest 3,525 Total operating lease liabilities $ 34,654 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 9. Other liabilities The following table provides the details of other accrued expenses and current liabilities (in thousands): December 31, 2020 2019 Income taxes payable $ 7,250 $ 6,008 Accrued VAT 6,604 5,312 Accrued professional fees 3,156 2,581 Accrued royalties 2,009 2,314 Obligations for acquisition of businesses 1,957 1,362 Defined contribution plan liabilities 1,660 1,593 Non-income tax liabilities 1,366 1,253 Billings in excess of cost 1,108 879 Other current liabilities 5,872 7,301 Total $ 30,982 $ 28,603 The following table provides the details of other long-term liabilities (in thousands): December 31, 2020 2019 Pension and other post retirement liabilities $ 14,497 $ 10,379 Deferred tax liabilities 8,028 6,275 Other liabilities 4,889 10,018 Total $ 27,414 $ 26,672 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. 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 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 debt discount and 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. At December 31, 2020, the fair value of the Convertible Notes was $316.3 million and is presented for required disclosure purposes only. For further information on the Convertible Notes see Note 7. The Company is exposed to certain financial market risks related to its ongoing business operations. The Company can manage foreign currency exchange rate risk and interest rate risk through derivative financial instruments and hedging activities. Derivative financial instruments and hedging activities can be utilized to protect the Company’s cash flow from adverse movements in foreign currency exchange rates and to manage interest costs. Although the Company is exposed to credit loss in the event of nonperformance by the counterparty to the derivative financial instruments, the Company attempts to limit this exposure by entering into agreements directly with major financial institutions that meet the Company’s credit standards and that are expected to fully satisfy their obligations under the contracts. The Company had no foreign exchange contracts or derivative financial instruments at December 31, 2020 or 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ equity Preferred stock As of December 31, 2020, the Company had authorized 45,000,000 shares of preferred stock, par value $0.0001, of which no shares were issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to fix rights, preferences, privileges, and restrictions, including dividends and the number of shares constituting any series or the designation of such series, without any further vote or action by the stockholders. Common stock As of December 31, 2020, the Company had authorized 513,796,572 shares of Class A common stock, par value $0.0001, and 41,203,428 shares of Class B common stock, par value $0.0001. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. The holders of Class A and Class B common stock are entitled to dividends at the sole discretion of the Board of Directors. No common stock dividends were declared or paid in 2020, 2019, or 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. Stock-based compensation 2001 stock-based compensation plans Nonqualified stock option plan In 2001, the Company established the Nonqualified Stock Option Plan (“NSO Plan”) under which 2,533,931 stock options with an exercise price of $.000025 remain outstanding at December 31, 2020. The NSO Plan was terminated in 2003. Stock options under the NSO plan were immediately vested and have a contractual term of 35 years from the date of grant. The outstanding awards will continue to be governed by their existing terms under the NSO Plan. The NSO Plan is accounted for as an equity plan. The following table summarizes the stock option activity under the NSO Plan: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 3,557,436 $ 0.000025 17.0 $ 127.8 Exercised (1,023,505 ) $ 0.000025 Forfeited — $ — Outstanding and exercisable at December 31, 2020 2,533,931 $ 0.000025 16.0 $ 147.4 The total intrinsic value of the NSO Plan stock options exercised during the years ended December 31, 2020, 2019 and 2018, was $43.1 million, $28.8 million and $68.4 million, respectively. Incentive and nonqualified stock-based plan Also, in 2001, the Company established the Incentive and Nonqualified Stock-based Plan (“ISO Plan”) which was terminated in 2011 and was authorized to issue nonqualified stock options (“NQSO”) and incentive stock options (“ISO”) totaling 11,153,872 shares of Class A common stock. The NQSO grants could be issued at less than the fair market value at date of grant under the terms of the ISO Plan, while ISO grants were issued at a price equal to or greater than the fair market value at date of grant. Options generally vest over a two to three-year The following table summarizes the stock option activity under the 2001 Stock-based compensation plans for the periods indicated as follows: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 103,000 $ 0.64 1.0 $ 3.6 Exercised (103,000 ) $ 0.64 Forfeited — $ — Outstanding and exercisable at December 31, 2020 — $ — — — The total intrinsic value of the ISO Plan stock options exercised during the years ended December 31, 2020, 2019 and 2018, was $3.8 million, $14.4 million, and $5.2 million, respectively. 2012 stock-based compensation plans During 2012, the Company established the 2012 Incentive and Nonqualified Stock Option Plan (“2012 Plan”) which permits the issuance of 5,200,000 shares of Class A common stock for the grant of nonqualified stock options (“NQSO”) and incentive stock options (“ISO”) for management, other employees, and board members of the Company. The options are issued at a price equal to or greater than fair market value at date of grant. All options have a contractual term of 10 years from date of grant. The 2012 Plan is accounted for as an equity plan. For those options expected to vest, compensation expense is recognized on a straight-line basis over a four-year The following table summarizes the stock option activity under the 2012 Plan for the periods indicated as follows: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 1,183,817 $ 4.23 6.1 Granted — $ — Exercised (351,165 ) $ 4.18 Forfeited (8,000 ) $ 4.31 Outstanding at December 31, 2020 824,652 $ 4.26 5.1 Exercisable at December 31, 2020 691,362 $ 4.08 4.8 $ 37.4 The total intrinsic value of the 2012 Plan stock options exercised during the years ended December 31, 2020, 2019, and 2018, was $13.9 million, $11.2 million and $18.0 million, respectively. 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 and 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 10,277,034 authorized shares of the Company’s Class A common stock reserved for issuance. The following table summarizes the restricted stock units, or RSUs, awarded under the 2017 Plan for the period: Number of RSUs Outstanding at January 1, 2020 781,301 Granted 641,723 Vested (222,716 ) Forfeited (45,372 ) Outstanding at December 31, 2020 1,154,936 The following table summarizes the stock option activity under the 2017 Plan for the period: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 20,000 $ 38.11 9.2 Granted 4,209,454 $ 45.68 Exercised (5,000 ) $ 38.11 Forfeited (20,972 ) $ 40.80 Outstanding at December 31, 2020 4,203,482 $ 45.68 9.7 Exercisable at December 31, 2020 158 $ 29.22 0.2 The weighted average grant date fair value of the RSUs was $32.22 and the RSUs generally vest in four equal annual installments. The fair value of RSUs that vested during the year ended December 31, 2020, was $6.7 million. Total compensation cost related to nonvested awards not yet recognized as of December 31, 2020, was $90.9 million, and is expected to be recognized over a weighted average period of 2.7 years. Fair value of equity awards The Company measures the fair value of its stock options on the date of grant using the Black-Scholes option pricing model. This valuation model requires the Company to make certain estimates and assumptions, including assumptions related to the expected price volatility of the Company’s stock, the period under which the options will be outstanding, the rate of return on risk-free investments, and the expected dividend yield for the Company’s stock. The fair values of the Company’s stock options granted during the year ended December 31, 2020 and 2019, were estimated using the following assumptions: 2020 grants 2019 grants Weighted average grant date fair value per share $29.22 - 57.72 $ 38.11 Expected volatility 34 - 35% 42 % Expected term (in years) 6.25 6.25 Risk-free interest rate 0.46 - 0.6% 1.80 % Expected dividend yield 0 % 0 % These assumptions and estimates are as follows: • Fair Value of Common Stock . The Company used the publicly quoted price as reported on the Nasdaq Global Select Market as the fair value of its common stock. • Expected Term . The Company used the simplified method to determine the expected term. • Risk-Free Interest Rate . The Company based the risk-free interest rate on U.S. Treasury zero-coupon yield curves with a remaining term equal to the expected term of the option. • Expected Volatility . As the Company does not have an extensive trading history for its common stock, the expected volatility was derived using the historical volatility of the returns of comparable publicly traded companies combined with the brief trading history of the Company’s common stock. The Company did not grant any stock options during the year ended December 31, 2018. Other In connection with the acquisition of Polliwog, per the Stock Purchase Agreement, 256,594 shares of the Company’s Class A Common Stock will be issued to existing employees, subject to continuing employment. The shares will be issued on the one-, two- and three-year anniversaries of the closing, subject to potential reduction in certain circumstances. The accounting treatment for these shares in the context of the business combination is to recognize the expense as a post-combination expense, not as transaction consideration. The estimated post combination expense to the Company as a result of the business combination was approximately $8.7 million which is recognized on a straight-line basis over the employment period that was stipulated in the Stock Purchase Agreement. As of December 31, 2020, the weighted average remaining service period is 1.8 years. Once the vesting conditions of the service period are met, the Company will issue shares for each award. Stock-based compensation expense includes $2.9 million and $0.7 million expense related to these shares for the years ended December 31, 2020 and 2019, respectively. Stock-based compensation expense The stock-based compensation expense was recorded as follows (in thousands): Year ended December 31, 2020 2019 2018 Cost of revenue-software $ 2,473 $ 1,069 $ 31 Research and development 8,372 2,917 740 Sales and marketing 6,423 2,250 910 General and administrative 4,087 2,292 1,658 Total stock-based compensation expense $ 21,355 $ 8,528 $ 3,339 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income taxes The components of income (loss) before income taxes are as follows (in thousands): Year ended December 31, 2020 2019 2018 U.S. $ (22,127 ) $ (14,732 ) $ 4,228 Non-U.S. 24,159 18,120 22,796 $ 2,032 $ 3,388 $ 27,024 The significant components of the income tax expense are as follows (in thousands): Year ended December 31, 2020 2019 2018 Current U.S. Federal $ — $ — $ 2 Non-U.S. 23,197 11,434 12,629 U.S. State and Local (315 ) 446 (16 ) Total current 22,882 11,880 12,615 Deferred U.S. Federal (881 ) 193 1,714 Non-U.S. (9,849 ) (1,143 ) (2,823 ) U.S. State and Local 380 — (17 ) Total deferred (10,350 ) (950 ) (1,126 ) Income tax expense $ 12,532 $ 10,930 $ 11,489 The reconciliation of income taxes calculated at the U.S. Federal statutory income tax rate to income tax expense is as follows (in thousands): Year ended December 31, 2020 2019 2018 U.S. federal statutory rate 21 % 21 % 21 % Income taxes at U.S. federal statutory rate $ 427 $ 711 $ 5,675 Foreign income taxes at rates other than the federal statutory rate 1,161 1,247 2,179 U.S. state and local income taxes, net of U.S. federal tax benefit (4,892 ) (6,836 ) (3,453 ) U.S. effect of changes in tax laws 4,946 — — U.S. effect of foreign operations 1,205 8,609 — Change in valuation allowance 5,215 18,138 21,544 Foreign withholding taxes 6,691 5,975 5,103 U.S. foreign tax credit and deduction (1,308 ) (7,059 ) (5,648 ) Research and development tax credit 2,576 (2,600 ) (2,819 ) Stock-based compensation (5,001 ) (4,574 ) (14,964 ) Meals & entertainment 77 246 181 Other 640 (1,068 ) 1,206 Uncertain tax positions 720 (1,859 ) 903 Acquisition costs 75 — 503 Tax law changes — — 1,079 Income tax expense $ 12,532 $ 10,930 $ 11,489 The Tax Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The impact of GILTI resulted in no incremental tax expense for the year ended December 31, 2020 due to a full valuation allowance on U.S. net deferred tax assets. In addition, the Company has made an accounting policy election to treat taxes due under the GILTI provision as a current period expense. On July 23, 2020, the Department of Treasury published final regulations under the GILTI and Subpart F provisions of the Code regarding the treatment of income that is subject to a high rate of foreign tax (“high-tax exclusion”). These regulations, among other things, permit U.S. shareholders of foreign corporations to make an election for a controlled foreign corporation to exclude from subpart F income any item of income received by the controlled foreign corporation if that income is subject to an effective tax rate greater than 90% of the maximum U.S. corporate income tax rate of 21%. The Company has evaluated the impact of these regulations and made an election to avail the high-tax exclusion for tax years 2018 and 2019. Since this is an annual election, the Company intends to make a high-tax exclusion election for 2020 tax year and has recorded the impact of the election in its 2020 year-end tax provision. The Tax Cuts and Jobs Act, or the Tax Act, was enacted on December 22, 2017. The Tax Act reduced the U.S. federal corporate income tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. The Company applied the guidance in Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act when accounting for the enactment-date effects of the Tax Act. At December 31, 2018, the Company had completed its accounting for the tax effects of the Tax Act; the Company did not record any adjustments to the provisional amounts recorded at December 31, 2017 related to the remeasurement of its deferred balances. At December 31, 2017, the Company originally recorded a provisional amount for its one-time transition tax of $4.2 million, which was substantially offset by available foreign tax credits. During the year ended December 31, 2018, the Company revised its estimate of the provisional amount of the one-time transition tax. Upon further analyses of certain aspects of the Tax Act and refinement of its calculations, the Company increased its provisional amount of transition tax by approximately $0.6 million for the year ended December 31, 2018. This resulted in no change to income tax expense due to the impact of foreign tax credits. Deferred income tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statements purposes. The approximate tax effect of each type of temporary difference, and operating losses and tax credit carryforwards that give rise to a significant portion of the deferred tax assets and liabilities are as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Deferred revenue $ 12,135 $ 11,408 Net operating loss carryforwards 66,160 38,745 Tax credit carryforwards 26,299 38,981 Stock-based compensation 3,766 6,480 Capitalized research and development 6,472 7,162 Lease obligation 9,956 7,579 Employee benefits 5,980 5,189 Other 2,618 1,968 Total gross deferred tax assets 133,386 117,512 Less: valuation allowances (96,831 ) (84,356 ) Net deferred tax assets (1) 36,555 33,156 Deferred tax liabilities: Prepaid royalties 584 — Property and equipment and intangibles 16,177 13,588 Deferred tax on investment in subsidiary 790 474 Lease right of use asset 9,610 7,247 Convertible debt, net of issuance costs 8,685 10,899 Other 1,612 1,432 Total deferred tax liabilities 37,458 33,640 Total net deferred tax (liabilities) assets $ (903 ) $ (484 ) (1) Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities. Deferred tax assets and liabilities are determined separately for each tax jurisdiction on a separate or on a consolidated tax filing basis, as applicable, in which the Company conducts its operations or otherwise incurs taxable income or losses. A valuation allowance is recorded when it is more likely than not that some portion or all of the gross deferred tax assets will not be realized. The realization of deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character within the carryback or • taxable income in prior carryback years; • future reversals of existing taxable temporary differences; • future taxable income exclusive of reversing temporary differences and carryforwards; and • prudent and feasible tax planning strategies that the Company would be willing to undertake to prevent a deferred tax asset from otherwise expiring. The assessment regarding whether a valuation allowance is required or whether a change in judgment regarding the valuation allowance has occurred also considers all available positive and negative evidence, including but not limited to: • nature, frequency, and severity of cumulative losses in recent years; • duration of statutory carryforward and carryback periods; • statutory limitations against utilization of tax attribute carryforwards against taxable income; • historical experience with tax attributes expiring unused; and • near‑ and medium‑term financial outlook. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. Accordingly, it is generally difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. The Company uses the actual results for the last two years and current year results as the primary measure of cumulative losses in recent years. The evaluation of deferred tax assets requires judgment in assessing the likely future tax consequences of events recognized in the financial statements or tax returns and future profitability. The recognition of deferred tax assets represents the Company’s best estimate of those future events. Changes in the current estimates, due to unanticipated events or otherwise, could have a material effect on the Company’s results of operations and financial condition. In certain tax jurisdictions, the Company’s analysis indicates that it has cumulative losses in recent years. This is considered significant negative evidence, which is objective and verifiable and, therefore, difficult to overcome. However, the cumulative loss position is not solely determinative and, accordingly, the Company considers all other available positive and negative evidence in its analysis. Based on its analysis, the Company has recorded a valuation allowance for the portion of deferred tax assets where based on the weight of available evidence it is unlikely to realize those deferred tax assets. Based on the evidence available including a lack of sustainable earnings, the Company in its judgment previously recorded a valuation allowance against substantially all of its net deferred tax assets in the United States. If a change in judgment regarding this valuation allowance were to occur in the future, the Company will record a potentially material deferred tax benefit, which could result in a favorable impact on the effective tax rate in that period. As a result of the Tax Act, the Company has not had a change in judgement regarding the gross book-tax basis differences in its non-U.S. consolidated subsidiaries. The Tax Act required a one-time transition tax for deemed repatriation of accumulated undistributed earnings of certain foreign investments. If we determine that all or a portion of our foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes, U.S. taxes on foreign currency fluctuations on these accumulated undistributed earnings, and incremental U.S. state income taxes, beyond the Tax Act's one-time transition tax. The Company continues to record deferred foreign taxes on gross book-tax basis differences to the extent of foreign distributable reserves and excess cash balances for its subsidiary in India. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings is not practicable. The following table summarizes the changes to the valuation allowance balance (in thousands): December 31, 2020 2019 2018 Beginning balance $ 84,356 $ 78,155 $ 56,761 Additions charged to expense 5,215 18,138 21,544 Other 7,260 (11,937 ) (150 ) Ending balance $ 96,831 $ 84,356 $ 78,155 The change in valuation allowance in Other for 2020 of $7.3 million is primarily related to a valuation allowance recorded on deferred tax assets established during purchase accounting from the Univa acquisition. The change in valuation allowance in Other for 2019 of $11.9 million is related to the issuance of convertible debt, net of issuance costs. The change in valuation allowance in Other for 2018 of $0.2 million is related to a decrease in valuation allowance from ASC 606 adoption of $12.6 million, the tax benefit recorded in other comprehensive income of $0.2 million, offset by an increase in valuation allowance recorded for business combinations of $12.6 million. The following table summarizes the amount and expiration dates of operating loss and tax credit carryforwards at December 31, 2020 (in thousands): Expiration dates Amounts U.S. general business credits and loss carryforwards 2021-Indefinite $ 79,591 Foreign loss carryforwards Indefinite 9,990 U.S. foreign tax credits 2027 2,878 Total operating loss and tax credit carryforwards $ 92,459 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year ended December 31, 2020 2019 2018 Unrecognized tax benefits—January 1 $ 15,540 $ 17,097 $ 6,157 Increase in unrecognized tax benefits as a result of: Additions for tax positions of current period 310 (203 ) 234 Additions for tax positions of prior periods 1,890 642 10,866 Reductions for tax positions of prior periods (8,816 ) (1,834 ) (100 ) Reductions due to statute of limitations — (162 ) (60 ) Unrecognized tax benefits—December 31 $ 8,924 $ 15,540 $ 17,097 At December 31, 2020, the Company had $3.5 million of gross unrecognized tax benefits that if recognized would affect the effective tax rate. The Company expects a reduction over the next 12 months in the gross unrecognized tax benefits of approximately $0.4 million which if recognized would not impact the effective tax rate during 2021. The Company operates globally but considers its more significant tax jurisdictions to include the United States, India, Germany, Japan, and China. India has tax years open for examination from 2009 through 2020. All other significant jurisdictions have open tax years from 2015 through 2020. The Company records interest and penalties with respect to unrecognized tax benefits as a component of the provision for income taxes. For the years ended December 31, 2020 and 2019, accrued interest and penalties related to unrecognized tax benefits were insignificant. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | 14. Net (loss) income per share Basic net (loss) income per share attributable to common stockholders is computed using the weighted average number of shares of common stock outstanding for the period, excluding stock options and restricted stock units (“RSUs”). Diluted net (loss) income 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 stock options and RSUs under the treasury stock method. The following table sets forth the computation of the numerators and denominators used in the basic and diluted net (loss) income per share amounts (in thousands, except per share data): Year ended December 31, 2020 2019 2018 Numerator: Net (loss) income $ (10,500 ) $ (7,542 ) $ 15,535 Denominator: Denominator for basic (loss) income per share— weighted average shares 73,241 71,544 67,468 Effect of dilutive securities, stock options and RSUs — — 7,410 Denominator for dilutive (loss) income per share 73,241 71,544 74,878 Net (loss) income per share attributable to common stockholders, basic $ (0.14 ) $ (0.11 ) $ 0.23 Net (loss) income per share attributable to common stockholders, diluted $ (0.14 ) $ (0.11 ) $ 0.21 Since the Company was in a net loss position for the years ended December 31, 2020 and 2019, basic net loss per share attributable to common stockholders is the same as diluted net loss per share for those periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. For the years ended December 31, 2020 and 2019, respectively, there were 3.1 million and 5.7 million potentially anti-dilutive shares, which were excluded from the computation of net loss per share. For the year ended December 31, 2018, there were no anti-dilutive shares, which were excluded from the computation of net income per share. The Company expects to settle the principal amount of the Convertible Notes in cash, and therefore, the Company uses the treasury stock method for calculating any potential dilutive effect of the Conversion Option on diluted net (loss) income per share, if applicable. The Conversion Option will have a dilutive impact on net income per share of common stock when the average market price of the Company’s Class A common stock for a given period exceeds the conversion price of the Convertible Notes of $46.50 per share. During the years ended December 31, 2020 and 2019, the Company's weighted average common stock price was below the conversion price of the Convertible Notes. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefits | 15. Retirement benefits The Company sponsors a 401(k)-profit sharing plan (the “Plan”) for all eligible U.S. employees. This Plan allows eligible employees to contribute up to 80% of their compensation to the Plan. The Company makes discretionary matching contributions to the Plan provided the employee is employed on the last day of the year. Such discretionary contributions vest ratably over five years of service. The Company’s contributions to the Plan were $1.6 million, $1.6 million and $1.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company also participates in government-mandated retirement and/or termination indemnity plans, benefiting certain non-U.S. employees. Termination benefits are generally lump sum payments based upon an individual’s years of credited service and annual salary at retirement. These plans are generally unfunded, and employees receive payments at the time of retirement or termination under applicable labor laws or agreements. The amount of net benefit cost recorded in the consolidated statements of operations for these plans was $2.7 million, $1.8 million and $1.2 million in 2020, 2019 and 2018, respectively. The amount of benefits paid under these plans was $0.5 million, $0.4 million and $0.4 million in 2020, 2019 and 2018, respectively. The accumulated benefit obligation, unlike the projected benefit obligation, does not reflect expected benefit increases from future salary levels, and was $8.7 million and $6.8 million at December 31, 2020 and 2019, respectively, under these plans. The projected benefit obligation, net of plan assets, was $15.2 million and $11.0 million at December 31, 2020 and 2019, respectively. A summary of the components of the pension benefits obligation recorded in the consolidated balance sheets are as follows (in thousands): December 31, 2020 2019 Accrued compensation and benefits $ 657 $ 596 Other long-term liabilities 14,497 10,379 $ 15,154 $ 10,975 The estimated future benefit payments, which reflect expected future service, that are expected to be paid for each of the next five years are as follows (in thousands): Year ending December 31, 2021 $ 677 December 31, 2022 $ 480 December 31, 2023 $ 624 December 31, 2024 $ 662 December 31, 2025 $ 577 Next five years $ 4,772 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 16. Accumulated other comprehensive loss The components of accumulated other comprehensive loss are as follows (in thousands): Foreign currency translation Retirement related benefit plans Total Balance at December 31, 2017 $ (3,374 ) $ (1,698 ) $ (5,072 ) Other comprehensive income (loss) before reclassification (5,449 ) 90 (5,359 ) Amounts reclassified from accumulated other comprehensive loss — (1,177 ) (1,177 ) Tax effects — 318 318 Other comprehensive income (loss) (5,449 ) (769 ) (6,218 ) Balance at December 31, 2018 (8,823 ) (2,467 ) (11,290 ) Other comprehensive income (loss) before reclassification 1,895 62 1,957 Amounts reclassified from accumulated other comprehensive loss — (179 ) (179 ) Tax effects — (16 ) (16 ) Other comprehensive income (loss) 1,895 (133 ) 1,762 Balance at December 31, 2019 (6,928 ) (2,600 ) (9,528 ) Other comprehensive income (loss) before reclassification 7,782 (501 ) 7,281 Amounts reclassified from accumulated other comprehensive loss — (858 ) (858 ) Tax effects — 308 308 Other comprehensive income (loss) 7,782 (1,051 ) 6,731 Balance at December 31, 2020 $ 854 $ (3,651 ) $ (2,797 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and contingencies Swedish Tax Litigation The Swedish Tax Authorities, or STA, assessed tax (net of utilization of tax attributes), penalties and interest in the amount of $6.2 million related to the acquisition of Panopticon AB by Datawatch Corporation, in 2013 for the years 2013, 2014 and 2015. The STA, upon auditing the acquisition transaction, reached a conclusion that post acquisition, certain assets were removed from Sweden, triggering the tax obligation. The STA is also of the opinion that some services related to product development provided to the new parent company in the U.S. were performed by Panopticon AB at a price below market price triggering tax obligations. Datawatch contested the findings by the STA throughout the audit process including contesting the STA position in the first level of administrative courts. On March 27, 2020, the Court of Appeals issued its finding in favor of the STA. Pursuant to requirements in Sweden, the Company paid the assessed tax, penalties and interest on April 24, 2020. The Company, in accordance with its right to appeal the ruling to the Administrative Supreme Court of Sweden, filed an appeal of the Court of Appeals ruling citing specific grounds for reconsideration. On November 4, 2020, the Supreme Administrative Court issued a decision that they would not grant leave to appeal, effectively eliminating any further appeal rights in this matter. 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. 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. Commitments The Company has entered into various renewable, nonexclusive license agreements under which the Company has been granted access to the licensor’s technology and the right to sell or use the technology in the Company’s products. Royalties are payable to developers of the software at various rates and amounts, which generally are based upon unit sales or revenue. Royalty fees were $ million, $ 10.6 million, and $ million for the years ended December 31, 20 20 , 201 9 and 201 8 , respectively, and are reported in Cost of revenue — software . Additionally, the Company has current contractual purchase obligations for services supporting business operations, including non-cancelable agreements. The future purchase obligations for these agreements are as follows (in thousands): Year ending December 31, 2021 $ 6,436 2022 6,884 2023 6,509 2024 3,560 2025 3,307 Thereafter — Total $ 26,696 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 18. 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 Software reportable segment derives revenue from the sale and lease of software licenses and cloud solutions in the areas of simulation, high-performance computing, and artificial intelligence to design and optimize high-performance, efficient, innovative and sustainable products and processes for improved business performance. The Software segment also generates revenue by providing services related to the Company’s software, including consulting, training, and implementation services. The Client Engineering Services reportable segment provides support to the Company’s customers with long-term ongoing expertise. The Company hires simulation specialists, industrial designers, design engineers, materials experts, development engineers, manufacturing engineers, data scientists, and information technology specialists for placement at customer sites for specific customer-directed assignments. The “All other” represents innovative services and products, including toggled ® ® Inter-segment sales are not significant for any period presented. The CODM does not review asset information by segment when assessing performance, therefore no asset information is provided for reportable segments. The accounting policies of the segments are the same as those described in Note 2—Summary of significant accounting policies. The following tables are in thousands: Year ended December 31, 2020 Software CES All other Total Revenue $ 418,165 $ 44,320 $ 7,436 $ 469,921 Adjusted EBITDA $ 53,820 $ 5,129 $ (1,661 ) $ 57,288 Year ended December 31, 2019 Software CES All other Total Revenue $ 401,278 $ 48,987 $ 8,650 $ 458,915 Adjusted EBITDA $ 38,834 $ 5,255 $ (4,540 ) $ 39,549 Year ended December 31, 2018 Software CES All other Total Revenue $ 341,306 $ 47,852 $ 7,221 $ 396,379 Adjusted EBITDA $ 48,643 $ 5,155 $ (3,618 ) $ 50,180 Year ended December 31, 2020 2019 2018 Reconciliation of Adjusted EBITDA to GAAP income (loss) before income taxes: Adjusted EBITDA $ 57,288 $ 39,549 $ 50,180 Stock-based compensation expense (21,355 ) (8,528 ) (3,339 ) Interest expense (11,598 ) (6,371 ) (200 ) Interest income and other (1) 1,503 260 (4,883 ) Depreciation and amortization (23,806 ) (21,522 ) (14,734 ) Income before income taxes $ 2,032 $ 3,388 $ 27,024 (1) Included for the year ended December 31, 2020 are a) $1.0 million of proceeds from settlements related to a historical acquisition, and b) $0.6 million of severance expense. Included for the year ended December 31, 2019 are a) acquisition related costs of $0.6 million, b) severance expense of $0.4 million, and c) impairment charges for royalty contracts of $1.0 million. Included for the year ended December 31, 2018 are a) costs from the acquisition of Datawatch of $10.4 million, b) gain on the sale of a building of $4.4 million, c) impairment charges for royalty contracts and trade names of $2.8 million, and d) an income adjustment for a change in estimated legal expenses of $2.0 million. Revenue is attributed to geographic areas based on the country of origin. The following table provides sales to external customers and long-lived assets for each of the geographic areas in which the Company operates (in thousands): Revenue Long-lived assets (1) Year ended December 31, December 31, 2020 2019 2018 2020 2019 United States $ 233,611 $ 219,053 $ 186,026 $ 60,479 $ 55,319 Other countries 12,127 14,753 8,604 8,378 10,190 Total Americas 245,738 233,806 194,630 68,857 65,509 Germany 48,559 50,102 45,664 9,201 3,405 France 15,287 17,210 16,154 1,078 1,224 Other countries 49,403 49,312 42,846 11,730 11,316 Total Europe, Middle East and Africa 113,249 116,624 104,664 22,009 15,945 Japan 41,109 37,757 35,478 2,009 2,036 Other countries 69,825 70,728 61,607 8,441 8,941 Total Asia Pacific 110,934 108,485 97,085 10,450 10,977 Total $ 469,921 $ 458,915 $ 396,379 $ 101,316 $ 92,431 (1) Includes property and equipment, net and definite-lived intangible assets, net. Concentrations of credit risk The Company’s financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and trade receivables. The risk with respect to trade receivables is partially mitigated by the diversity, both by geography and by industry, of the Company’s customer base. The Company’s accounts receivable is derived from sales to a large number of direct customers and resellers around the world. Sales to customers within the automotive industry accounted for approximately 36%, 40%, and 45% of the Company’s 2020, 2019 and 2018 revenue, respectively, with no other industry representing more than 10% of revenue. No individual customer accounted for 10% or more of revenue in the years ended December 31, 2020, 2019 or 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of consolidation The accompanying consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the results of the Company and its controlled subsidiaries. Third-party holdings of equity interests in the Company’s subsidiaries that are less than controlled represent noncontrolling interests. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
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, the incremental borrowing rate used in the valuation of lease liabilities, fair value of convertible senior notes |
Foreign Currency Translation | Foreign currency translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The assets and liabilities of the subsidiaries are translated to U.S. dollars at the exchange rate on the balance sheet date. Equity balances and transactions are translated using historical exchange rates. Revenues and expenses are translated at the average exchange rate during the period. Translation adjustments arising from the use of differing exchange rates from period to period are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. All assets and liabilities denominated in a currency other than the functional currency are remeasured into the functional currency with gains and losses recognized in foreign currency losses, net, in the consolidated statements of operations. The Company has no transactions which hedge purchase commitments and no intercompany balances which are designated as being of a long-term investment in nature. |
Revenue Recognition | Revenue recognition Software revenue Revenue is derived principally from the licensing of software products and from related maintenance contracts. The Company enters into contracts that include combinations of products, maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns. Revenue from term-based software licenses is classified as software revenue. Term-based licenses are sold only as a bundled arrangement that includes the rights to a term-based software license and post-contract customer support (PCS), which includes unspecified technical enhancements and customer support. Maximizing the use of observable inputs, the Company determined that a majority of the estimated standalone selling prices of the term-based license is attributable to the term-based license and a minority is attributable to the PCS. The license component is classified as license revenue and recognized as revenue upon the later of delivery of the licensed product or the beginning of the license period In addition to term-based software licenses, the Company sells perpetual licenses. Software revenue is recognized upon the later of delivery of the licensed product or the beginning of the license period Revenue from training, consulting and other services is recognized as the services are performed, and is classified as maintenance and other services in the consolidated statement of operations. For contracts in which the service consists of a single performance obligation, such as providing a training class to a customer, the Company recognizes revenue upon completion of the performance obligation. For service contracts that are longer in duration and often include multiple performance obligations (for example, point-in-time training and consulting), the Company measures the progress toward completion of the obligations and recognizes revenue accordingly. In measuring progress towards the completion of performance obligations, the Company typically utilizes output-based estimates for services with fixed fee arrangements, and estimates output based on the total tasks completed as compared to the total tasks required for each contract. Input-based estimates are utilized for services that involve general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure. The Company also executes arrangements through indirect channel partners in which the channel partners are authorized to market and distribute the Company's software products to end users of the Company's products and services in specified territories. In sales facilitated by channel partners, the channel partner bears the risk of collection from the end-user customer. The Company recognizes revenue from transactions with channel partners in a manner consistent with the direct sales described above for both perpetual and term-based licenses. Revenue from channel partner transactions is the amount remitted to the Company by the channel partners. This amount includes a fee for PCS that is compensation for providing technical enhancements and the second level of technical support to the end user, which is recognized over the period that PCS is to be provided. The Company does not offer right of return, product Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the consolidated balance sheets as accounts receivable, net and other accrued expenses and current liabilities. These amounts are reported on a net basis in the consolidated statements of operations and do not impact reported revenues or expenses. Certain hardware revenue is included within software revenue and is recognized when all revenue recognition criteria stated above are met, which is generally when the products are delivered to end customers. Software related services Consulting services from product design and development projects are considered distinct performance obligations and are provided to customers on a time-and-materials (“T&M”) or fixed-price basis. The Company recognizes software services revenue for T&M contracts based upon hours worked and contractually agreed upon hourly rates using the input method. Revenue from fixed-price engagements is recognized using the output method based on the ratio of costs incurred to total estimated project costs. Client engineering services Client engineering services revenue are derived from professional services for staffing primarily representing engineers and data scientists located at a customer site. These professional services are considered distinct performance obligations and are provided to customers on a T&M basis. The Company recognizes this revenue for T&M contracts based upon hours worked and contractually agreed upon hourly rates using the input method. Other Other revenue includes product revenue from the sale of LED products primarily for the replacement of fluorescent tubes. Revenue from the sale of LED products is recognized when all revenue recognition criteria stated above are met, which is generally when the products are delivered to resellers or to end customers. Sales returns, which reduce revenue, are estimated using historical experience. |
Cash, Cash Equivalents and Restricted Cash | 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 statements of cash flows (in thousands): December 31, 2020 2019 Cash and cash equivalents $ 241,221 $ 223,117 Restricted cash included in other long-term assets 326 380 Total cash, cash equivalents, and restricted cash $ 241,547 $ 223,497 Restricted cash represents amounts required for a contractual agreement with an insurer for the payment of potential health insurance claims, and term deposits for bank guarantees. |
Accounts Receivable, Net | Accounts receivable, net Accounts receivable, net consisted of the following (in thousands): December 31, 2020 2019 Accounts receivable, trade $ 111,162 $ 100,461 Contract assets 6,716 4,523 Accounts receivable, net $ 117,878 $ 104,984 A provision for expected credit losses for groups of billed and unbilled receivables and contract assets that share similar risk characteristics is recorded based on an evaluation of historical loss experience, current conditions, and reasonable and supportable forecasts. Accounts are written off when it becomes apparent that such amounts will not be collected, generally when amounts are past due by greater than one year. Generally, the Company does not require collateral or charge interest on accounts receivable. Accounts receivable were reported net of a provision for credit loss of $2.6 million and $1.4 million at December 31, 2020 and 2019, respectively. For the Year Ended December 31, 2020 2019 2018 Balance, beginning of year $ (1,415 ) $ (1,150 ) $ (798 ) Adoption of ASC 326 on beginning allowance (388 ) — — Provision charged to expense (1,259 ) (671 ) (394 ) Write-offs, net of recoveries 563 413 3 Effects of foreign currency translation (60 ) (7 ) 39 Balance, end of year $ (2,559 ) $ (1,415 ) $ (1,150 ) The change in the provision for credit loss was driven by the $0.4 million from the adoption of ASU 2016-13 and incremental losses in the current year including an immaterial impact of COVID-19 as the Company adjusted expected credit loss rates subsequent to adoption. The impact resulting from the increased credit loss rates did not have a material effect on the Company’s consolidated financial statements and is reflected in the amounts noted above. |
Property and Equipment, Net | Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation and amortization. Equipment held under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are charged to expense in the period incurred. Major expenditures for betterments are capitalized when they meet the criteria for capitalization. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized. Building and improvements is depreciated over an estimated useful life of five to thirty-nine years. Computer equipment and software is depreciated over an estimated useful life of three to five years. Office furniture and equipment is depreciated over an estimated useful life of five to fifteen years. Leasehold improvements and assets acquired under capital leases are amortized over the lease term or the estimated useful life of the related asset or improvement, whichever is shorter. |
Software Development Costs | Software development costs Software development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Technological feasibility is established upon the completion of a detailed program design. Capitalization of software development costs begins upon the establishment of technological feasibility and ends when the product is available for general release. Generally, the time between the establishment of technological feasibility and commercial release of software is short. As such, all internal software development costs have been expensed as incurred and included in research and development expense in the accompanying consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of long-lived assets Long-lived assets, such as property and equipment, and definite-lived intangible assets, including developed technology and customer relationships, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company compares the undiscounted future cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models and third-party independent appraisals. No impairment losses were recognized in 2020, 2019, or 2018. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and other indefinite-lived intangible assets Goodwill represents the excess of the consideration transferred for an acquired entity over the estimated fair values of the net tangible assets and the identifiable assets acquired. As described in Note 4—Acquisitions and disposals, the Company has recorded goodwill in connection with certain acquisitions. Goodwill and other indefinite-lived intangible assets are not amortized, but rather are reviewed for impairment annually or more frequently if facts or circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is one reporting unit with goodwill subject to goodwill impairment testing. An entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount prior to performing the quantitative two-step impairment test. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount prior to performing the quantitative two-step impairment test. The qualitative assessment evaluates various events and circumstances, such as macro-economic conditions, industry and market conditions, cost factors, relevant events and financial trends that may impact a reporting unit’s fair value. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then additional impairment testing is not required. However, if an entity concludes otherwise, then it is required to perform the two-step goodwill impairment test. The impairment test involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired. If, however, the fair value of the reporting unit is less than book value, then an impairment loss is recognized in an amount equal to the amount that the book value of the reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company performs its annual impairment review of goodwill in the fourth quarter of each year and when a triggering event occurs between annual impairment dates. For 2020, the Company performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of its reporting unit with goodwill was less than the carrying amounts. Accordingly, the Company determined that its goodwill was not impaired. The Company performs its annual impairment review of indefinite-lived intangibles in the fourth quarter of each year and when a triggering event occurs between annual reporting dates. |
Receivable for R&D Credit | Receivable for R&D credit The French government provides a research and development (“R&D”) tax credit known as Credit Impôt Recherche, or CIR, in order to encourage Companies to invest in R&D. The tax credit is deductible from the French income tax and any excess is carried forward for three years. After three years, any unused credit may be reimbursed to the Company by the French government. As of December 31, 2020, the Company had approximately $13.2 million receivables from the French government related to CIR, of which $3.2 million is recorded in income tax receivable and the remaining $10.0 million is recorded in other long-term assets. As of December 31, 2019, the Company had approximately $12.1 million receivables from the French government related to CIR, of which $2.5 million was recorded in income tax receivable and the remaining $9.6 million was recorded in other long-term assets. CIR is subject to customary audit by the French tax authorities. |
Derivative Financial Instruments | Derivative financial instruments The Company may use derivative financial instruments, primarily interest rate swap contracts or foreign currency contracts, to hedge its exposure to interest rate or foreign exchange risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts during the year are recorded in other (income) expense, net in the consolidated statement of operations. Hedge accounting has not been applied. |
Income Taxes | Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent it believes that these assets will more likely than not be realized. These deferred tax assets are subject to periodic assessments as to recoverability and if it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recorded which increase the provision for income taxes. In making such determination, the Company considers all available positive and negative evidence, including historical taxable income, projected future taxable income, the expected timing and reversal of existing temporary differences, ability to carryback losses, and tax planning strategies. If based upon the evidence, it is more likely than not that the deferred tax asset will not be realized, a valuation allowance is recorded. A valuation allowance is recognized to reduce deferred tax assets to the amount that management believes is more likely than not to be realized. The Company applies a more-likely-than-not recognition threshold to its accounting for tax uncertainties. The Company reviews all of its tax positions and makes determinations as to whether its tax positions are more likely than not to be sustained upon examination by the relevant taxing authorities. Only those benefits that have a greater than fifty percent likelihood of being sustained upon examination by taxing authorities are recognized. Interest and penalties related to uncertain tax positions are recorded in the provision for income taxes in the consolidated statements of operations. |
Research and Development Costs | Research and development costs Research and development costs are expensed as incurred. Research and development expenses consist primarily of salaries and benefits of research and development employees and costs incurred related to the development of new software products and significant enhancements and engineering changes to existing software products. |
Advertising Costs | Advertising costs Advertising costs are expensed as incurred. Advertising expenses were $4.0 million, $4.5 million and $4.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Mezzanine Equity | Mezzanine equity In 2017, the Company issued 200,000 shares of Class A common stock to a third party as partial consideration for the purchase of developed technology. These shares have a put right that can be exercised by the holder five years from date of purchase at $12.50 per share that requires the shares to be recorded at fair value and classified as mezzanine equity in the consolidated balance sheet. The put right option is terminated if the shareholders sell their shares. As of December 31, 2017, the Company concluded that it is no longer probable that the put option will be exercised as the put value is substantially below market value and subsequent adjustment is not required. During the year ended December 31, 2020, the third party holder sold 133,336 shares on the open market and as a result, the issuance value of those shares was reclassified into permanent equity from mezzanine equity. The remaining 66,664 shares continue to be classified as mezzanine equity until one of the following three events take place: (1) the shares are sold on the open market; (2) a redemption feature lapses; or (3) there is a modification of the terms of the instrument. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities, net of current portion on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, current portion of long-term debt, and long-term debt, net of current portion on the consolidated balance sheets. The Company did not receive any lease concessions related to COVID-19 that had a material effect on the Company’s consolidated financial statements. |
Stock-Based Compensation | Stock-based compensation Employee stock-based awards, consisting of stock options or restricted stock units (RSUs) expected to be settled by issuing shares of Class A common stock, are recorded as equity awards. The fair value of stock options on the date of grant is measured using the Black-Scholes option pricing model. The Company expenses the grant date fair value of its time-vested stock options subject to graded vesting using the straight-line method over the applicable service period. The fair value of RSUs is measured using the fair value of the Company’s Class A common stock on the date of the grant. The fair value of RSUs is recognized as expense on a straight-line basis over the requisite service period, which is generally four years. |
Business Combinations | Business combinations The Company accounts for business acquisitions using the acquisition method of accounting. The fair value of purchase consideration of the acquired businesses is allocated to the identifiable tangible and intangible assets acquired and liabilities assumed in the transaction based upon their estimated fair values as of the acquisition date. |
Recent Accounting Guidance | Recent accounting guidance Accounting standards adopted Credit Losses – In June 2016, the FASB issued ASU 2016-13, . The ASU significantly changed how entities measure credit losses on most financial assets. The Company adopted ASU 2016-13 effective January 1, 2020 and recorded a cumulative effect adjustment to retained earnings of $0.4 million related to the adoption of ASU 2016-13; prior periods have not been adjusted. Fair Value – In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements, by removing, modifying, or adding certain disclosures. The Company adopted ASU 2018-13 on January 1, 2020. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements . Intangibles – In August 2018, the FASB issued ASU 2018-15, This ASU clarifies and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted ASU 2018-15 on January 1, 2020, on a prospective basis. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements . Accounting standards not yet adopted Retirement Benefits – In August 2018, the FASB issued ASU 2018-14, This ASU modifies the disclosure requirements for defined benefit pension or other postretirement plans. The amendments are effective for fiscal years ending after December 15, 2020; early adoption is permitted. The Company is currently evaluating the impact of the 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. Income Taxes – In December 2019, the FASB issued ASU 2019-12, This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improves consistent application of GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020; early adoption is permitted. The Company is currently evaluating the impact of the 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 . Reference Rate Reform – In March 2020, the FASB issued ASU 2020-04. 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. The amendments in the guidance are optional and effective for all entities as of March 12, 2020 through December 31, 2022. 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. Debt – In August 2020, the FASB issued ASU No. 2020-06, This ASU simplifies the accounting for convertible instruments by eliminating certain separation models. Under ASU 2020 - 06 , a convertible debt instrument will generally be reported as a single liability at its amortized cost with no separate accounting for embedded conversion features. The update also requires the if-converted method to be used for convertible instruments and the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or shares. The amendments in this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The guidance allows entities to use a modified or full retrospective transition method. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the timing and method of adoption and the related effect of the new guidance on its consolidated financial statements and earnings per share attributable to common stockholders. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [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 statements of cash flows (in thousands): December 31, 2020 2019 Cash and cash equivalents $ 241,221 $ 223,117 Restricted cash included in other long-term assets 326 380 Total cash, cash equivalents, and restricted cash $ 241,547 $ 223,497 |
Schedule of Accounts Receivable Net | Accounts receivable, net consisted of the following (in thousands): December 31, 2020 2019 Accounts receivable, trade $ 111,162 $ 100,461 Contract assets 6,716 4,523 Accounts receivable, net $ 117,878 $ 104,984 |
Schedule of Provision for Credit Loss | Activity in the provision for credit loss was as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Balance, beginning of year $ (1,415 ) $ (1,150 ) $ (798 ) Adoption of ASC 326 on beginning allowance (388 ) — — Provision charged to expense (1,259 ) (671 ) (394 ) Write-offs, net of recoveries 563 413 3 Effects of foreign currency translation (60 ) (7 ) 39 Balance, end of year $ (2,559 ) $ (1,415 ) $ (1,150 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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): Year Ended December 31, 2020 2019 2018 Term licenses $ 224,472 $ 201,881 $ 168,909 Perpetual licenses 35,493 42,440 38,255 Maintenance 117,159 103,699 86,150 Professional software services 14,587 18,682 11,047 Software related services 26,454 34,576 36,945 Client engineering services 44,320 48,987 47,852 Other 7,436 8,650 7,221 Total revenue $ 469,921 $ 458,915 $ 396,379 |
Acquisitions and Disposals (Tab
Acquisitions and Disposals (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date | The following table summarizes the preliminary purchase consideration transferred to acquire Univa and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 30,184 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 193 Accounts receivable 956 Other assets 164 Trade names (4-year life) 200 Developed technology (6-year life) 9,000 Customer relationships (7-year life) 4,800 Accounts payable and other liabilities (891 ) Deferred revenue (874 ) Deferred tax liabilities (1,100 ) Total net identifiable assets acquired and liabilities assumed 12,448 Goodwill $ 17,736 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following (in thousands): Estimated December 31, useful lives 2020 2019 Land Indefinite $ 10,067 $ 9,942 Building and improvements 5-39 years 15,630 15,512 Computer equipment and software 3-5 years 41,451 37,361 Office furniture and equipment 5-15 years 10,136 8,029 Leasehold improvements (1 ) 9,652 9,014 Right of use assets under finance leases (1 ) 2,665 2,745 Total property and equipment 89,601 82,603 Less: accumulated depreciation and amortization 53,269 46,306 Property and equipment, net $ 36,332 $ 36,297 (1) Shorter of lease term or estimated useful life, generally ranging from five to ten years. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill Attributable to Software Reportable Segment | The changes in the carrying amount of goodwill, which is attributable to the Software reportable segment, are as follows (in thousands): Balance at December 31, 2018 $ 210,532 Acquisitions 21,922 Effects of foreign currency translation and other 1,229 Balance at December 31, 2019 233,683 Acquisitions 25,932 Effects of foreign currency translation and other 4,866 Balance at December 31, 2020 $ 264,481 |
Schedule of Other Intangible Assets | A summary of other intangible assets is shown below (in thousands): December 31, 2020 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4-6 years $ 78,841 $ 37,651 $ 41,190 Customer relationships 7-10 years 40,207 16,673 23,534 Other intangibles 4-10 years 344 84 260 Total definite-lived intangible assets 119,392 54,408 64,984 Indefinite-lived intangible assets: Trade names 11,130 11,130 Total other intangible assets $ 130,522 $ 54,408 $ 76,114 December 31, 2019 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4-6 years $ 60,916 $ 25,838 $ 35,078 Customer relationships 7-10 years 32,582 11,575 21,007 Other intangibles 10 years 111 62 49 Total definite-lived intangible assets 93,609 37,475 56,134 Indefinite-lived intangible assets: Trade names 10,941 10,941 Total other intangible assets $ 104,550 $ 37,475 $ 67,075 |
Summary of Estimated Amortization Expense | Estimated amortization expense for the next five years as of December 31, 2020 is as follows (in thousands): Year ending December 31, 2021 $ 17,763 December 31, 2022 14,348 December 31, 2023 15,406 December 31, 2024 8,204 December 31, 2025 4,745 Thereafter 4,518 Total $ 64,984 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Debt | The carrying value of debt is as follows (in thousands): December 31, 2020 2019 Convertible senior notes $ 230,000 $ 230,000 Revolving credit facility 30,000 — Obligations for finance leases 775 1,174 Total debt 260,775 231,174 Less: unamortized debt discount 37,190 46,820 Less: unamortized debt issuance costs 4,548 5,686 Less: current portion of long-term debt 30,384 430 Long-term debt, net of current portion $ 188,653 $ 178,238 |
Schedule of Net Carrying Value of Liability Component of Convertible Notes | The net carrying value of the liability component of the Convertible Notes was as follows (in thousands): December 31, 2020 2019 Principal $ 230,000 $ 230,000 Less: unamortized debt discount 37,190 46,820 Less: unamortized debt issuance costs 4,510 5,686 Net carrying amount $ 188,300 $ 177,494 |
Schedule of Interest Expense Related to Convertible Notes | The interest expense related to the Convertible Notes was as follows (in thousands): For the Year Ended December 31, 2020 2019 Contractual interest expense $ 575 $ 313 Amortization of debt issuance cost and discount 10,806 5,635 Total $ 11,381 $ 5,948 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease cost were as follows (in thousands): For the Year Ended December 31, 2020 2019 Operating lease cost $ 13,412 $ 13,287 Finance lease cost: Amortization of ROU assets $ 634 $ 525 Interest on lease liabilities 32 21 Total finance lease cost $ 666 $ 546 |
Schedule of Supplemental Balance Sheet Information Related to Lease Liabilities | Supplemental balance sheet information related to lease liabilities was as follows: December 31, (in thousands, except lease term and discount rate) 2020 2019 Operating leases: Operating lease ROU assets $ 33,526 $ 28,134 Current portion of operating lease liabilities $ 10,331 $ 9,141 Operating lease liabilities, net of current portion 24,323 20,174 Total operating lease liabilities $ 34,654 $ 29,315 Weighted average remaining lease term 4.2 4.2 Weighted average discount rate 4.7 % 5.6 % Finance leases: Property and equipment $ 2,665 $ 2,745 Accumulated depreciation (1,797 ) (1,447 ) Property and equipment, net $ 868 $ 1,298 Current portion of long-term debt $ 422 $ 430 Long-term debt, net of current portion 353 744 Total finance lease liabilities $ 775 $ 1,174 Weighted average remaining lease term 2.1 2.7 Weighted average discount rate 3.1 % 3.5 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): For the Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (11,875 ) $ (11,355 ) Operating cash flows from finance leases $ (32 ) $ (46 ) Financing cash flows from finance leases $ (456 ) $ (438 ) ROU assets obtained in exchange for lease obligations: Operating leases $ 11,713 $ 11,251 Finance leases $ 118 $ 632 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities at December 31, 2020, were as follows (in thousands): Year ending December 31, 2021 $ 11,704 2022 9,408 2023 6,900 2024 4,178 2025 2,786 Thereafter 3,203 Total lease payments 38,179 Less: imputed interest 3,525 Total operating lease liabilities $ 34,654 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Accrued Expenses and Current Liabilities | The following table provides the details of other accrued expenses and current liabilities (in thousands): December 31, 2020 2019 Income taxes payable $ 7,250 $ 6,008 Accrued VAT 6,604 5,312 Accrued professional fees 3,156 2,581 Accrued royalties 2,009 2,314 Obligations for acquisition of businesses 1,957 1,362 Defined contribution plan liabilities 1,660 1,593 Non-income tax liabilities 1,366 1,253 Billings in excess of cost 1,108 879 Other current liabilities 5,872 7,301 Total $ 30,982 $ 28,603 |
Summary of Other Long-term Liabilities | The following table provides the details of other long-term liabilities (in thousands): December 31, 2020 2019 Pension and other post retirement liabilities $ 14,497 $ 10,379 Deferred tax liabilities 8,028 6,275 Other liabilities 4,889 10,018 Total $ 27,414 $ 26,672 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Fair value of Company's Stock Options Granted | The fair values of the Company’s stock options granted during the year ended December 31, 2020 and 2019, were estimated using the following assumptions: 2020 grants 2019 grants Weighted average grant date fair value per share $29.22 - 57.72 $ 38.11 Expected volatility 34 - 35% 42 % Expected term (in years) 6.25 6.25 Risk-free interest rate 0.46 - 0.6% 1.80 % Expected dividend yield 0 % 0 % |
Summary of Stock-Based Compensation | Stock-based compensation expense The stock-based compensation expense was recorded as follows (in thousands): Year ended December 31, 2020 2019 2018 Cost of revenue-software $ 2,473 $ 1,069 $ 31 Research and development 8,372 2,917 740 Sales and marketing 6,423 2,250 910 General and administrative 4,087 2,292 1,658 Total stock-based compensation expense $ 21,355 $ 8,528 $ 3,339 |
NSO Plan [Member] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the NSO Plan: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 3,557,436 $ 0.000025 17.0 $ 127.8 Exercised (1,023,505 ) $ 0.000025 Forfeited — $ — Outstanding and exercisable at December 31, 2020 2,533,931 $ 0.000025 16.0 $ 147.4 |
ISO Plan [Member] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the 2001 Stock-based compensation plans for the periods indicated as follows: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 103,000 $ 0.64 1.0 $ 3.6 Exercised (103,000 ) $ 0.64 Forfeited — $ — Outstanding and exercisable at December 31, 2020 — $ — — — |
2012 Plan [Member] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the 2012 Plan for the periods indicated as follows: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 1,183,817 $ 4.23 6.1 Granted — $ — Exercised (351,165 ) $ 4.18 Forfeited (8,000 ) $ 4.31 Outstanding at December 31, 2020 824,652 $ 4.26 5.1 Exercisable at December 31, 2020 691,362 $ 4.08 4.8 $ 37.4 |
2017 Plan [Member] | |
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 exercise price per share Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Outstanding at January 1, 2020 20,000 $ 38.11 9.2 Granted 4,209,454 $ 45.68 Exercised (5,000 ) $ 38.11 Forfeited (20,972 ) $ 40.80 Outstanding at December 31, 2020 4,203,482 $ 45.68 9.7 Exercisable at December 31, 2020 158 $ 29.22 0.2 |
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 at January 1, 2020 781,301 Granted 641,723 Vested (222,716 ) Forfeited (45,372 ) Outstanding at December 31, 2020 1,154,936 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows (in thousands): Year ended December 31, 2020 2019 2018 U.S. $ (22,127 ) $ (14,732 ) $ 4,228 Non-U.S. 24,159 18,120 22,796 $ 2,032 $ 3,388 $ 27,024 |
Schedule of Significant Components of Income Tax Expense | The significant components of the income tax expense are as follows (in thousands): Year ended December 31, 2020 2019 2018 Current U.S. Federal $ — $ — $ 2 Non-U.S. 23,197 11,434 12,629 U.S. State and Local (315 ) 446 (16 ) Total current 22,882 11,880 12,615 Deferred U.S. Federal (881 ) 193 1,714 Non-U.S. (9,849 ) (1,143 ) (2,823 ) U.S. State and Local 380 — (17 ) Total deferred (10,350 ) (950 ) (1,126 ) Income tax expense $ 12,532 $ 10,930 $ 11,489 |
Reconciliation of Income Taxes Calculated at U.S. Federal Statutory Income Tax Rate | The reconciliation of income taxes calculated at the U.S. Federal statutory income tax rate to income tax expense is as follows (in thousands): Year ended December 31, 2020 2019 2018 U.S. federal statutory rate 21 % 21 % 21 % Income taxes at U.S. federal statutory rate $ 427 $ 711 $ 5,675 Foreign income taxes at rates other than the federal statutory rate 1,161 1,247 2,179 U.S. state and local income taxes, net of U.S. federal tax benefit (4,892 ) (6,836 ) (3,453 ) U.S. effect of changes in tax laws 4,946 — — U.S. effect of foreign operations 1,205 8,609 — Change in valuation allowance 5,215 18,138 21,544 Foreign withholding taxes 6,691 5,975 5,103 U.S. foreign tax credit and deduction (1,308 ) (7,059 ) (5,648 ) Research and development tax credit 2,576 (2,600 ) (2,819 ) Stock-based compensation (5,001 ) (4,574 ) (14,964 ) Meals & entertainment 77 246 181 Other 640 (1,068 ) 1,206 Uncertain tax positions 720 (1,859 ) 903 Acquisition costs 75 — 503 Tax law changes — — 1,079 Income tax expense $ 12,532 $ 10,930 $ 11,489 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statements purposes. The approximate tax effect of each type of temporary difference, and operating losses and tax credit carryforwards that give rise to a significant portion of the deferred tax assets and liabilities are as follows (in thousands): December 31, 2020 2019 Deferred tax assets: Deferred revenue $ 12,135 $ 11,408 Net operating loss carryforwards 66,160 38,745 Tax credit carryforwards 26,299 38,981 Stock-based compensation 3,766 6,480 Capitalized research and development 6,472 7,162 Lease obligation 9,956 7,579 Employee benefits 5,980 5,189 Other 2,618 1,968 Total gross deferred tax assets 133,386 117,512 Less: valuation allowances (96,831 ) (84,356 ) Net deferred tax assets (1) 36,555 33,156 Deferred tax liabilities: Prepaid royalties 584 — Property and equipment and intangibles 16,177 13,588 Deferred tax on investment in subsidiary 790 474 Lease right of use asset 9,610 7,247 Convertible debt, net of issuance costs 8,685 10,899 Other 1,612 1,432 Total deferred tax liabilities 37,458 33,640 Total net deferred tax (liabilities) assets $ (903 ) $ (484 ) (1) Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities. |
Summary of Changes to Valuation Allowance Balance | The following table summarizes the changes to the valuation allowance balance (in thousands): December 31, 2020 2019 2018 Beginning balance $ 84,356 $ 78,155 $ 56,761 Additions charged to expense 5,215 18,138 21,544 Other 7,260 (11,937 ) (150 ) Ending balance $ 96,831 $ 84,356 $ 78,155 |
Summary of Operating Loss and Tax Credit Carryforwards | The following table summarizes the amount and expiration dates of operating loss and tax credit carryforwards at December 31, 2020 (in thousands): Expiration dates Amounts U.S. general business credits and loss carryforwards 2021-Indefinite $ 79,591 Foreign loss carryforwards Indefinite 9,990 U.S. foreign tax credits 2027 2,878 Total operating loss and tax credit carryforwards $ 92,459 |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year ended December 31, 2020 2019 2018 Unrecognized tax benefits—January 1 $ 15,540 $ 17,097 $ 6,157 Increase in unrecognized tax benefits as a result of: Additions for tax positions of current period 310 (203 ) 234 Additions for tax positions of prior periods 1,890 642 10,866 Reductions for tax positions of prior periods (8,816 ) (1,834 ) (100 ) Reductions due to statute of limitations — (162 ) (60 ) Unrecognized tax benefits—December 31 $ 8,924 $ 15,540 $ 17,097 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Numerators and Denominators Used in Basic and Diluted Net (Loss) Income Per Share Amounts | The following table sets forth the computation of the numerators and denominators used in the basic and diluted net (loss) income per share amounts (in thousands, except per share data): Year ended December 31, 2020 2019 2018 Numerator: Net (loss) income $ (10,500 ) $ (7,542 ) $ 15,535 Denominator: Denominator for basic (loss) income per share— weighted average shares 73,241 71,544 67,468 Effect of dilutive securities, stock options and RSUs — — 7,410 Denominator for dilutive (loss) income per share 73,241 71,544 74,878 Net (loss) income per share attributable to common stockholders, basic $ (0.14 ) $ (0.11 ) $ 0.23 Net (loss) income per share attributable to common stockholders, diluted $ (0.14 ) $ (0.11 ) $ 0.21 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Pension Benefits Obligation Recorded in Consolidated Balance Sheets | A summary of the components of the pension benefits obligation recorded in the consolidated balance sheets are as follows (in thousands): December 31, 2020 2019 Accrued compensation and benefits $ 657 $ 596 Other long-term liabilities 14,497 10,379 $ 15,154 $ 10,975 |
Schedule of Estimated Future Benefit Payments | The estimated future benefit payments, which reflect expected future service, that are expected to be paid for each of the next five years are as follows (in thousands): Year ending December 31, 2021 $ 677 December 31, 2022 $ 480 December 31, 2023 $ 624 December 31, 2024 $ 662 December 31, 2025 $ 577 Next five years $ 4,772 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows (in thousands): Foreign currency translation Retirement related benefit plans Total Balance at December 31, 2017 $ (3,374 ) $ (1,698 ) $ (5,072 ) Other comprehensive income (loss) before reclassification (5,449 ) 90 (5,359 ) Amounts reclassified from accumulated other comprehensive loss — (1,177 ) (1,177 ) Tax effects — 318 318 Other comprehensive income (loss) (5,449 ) (769 ) (6,218 ) Balance at December 31, 2018 (8,823 ) (2,467 ) (11,290 ) Other comprehensive income (loss) before reclassification 1,895 62 1,957 Amounts reclassified from accumulated other comprehensive loss — (179 ) (179 ) Tax effects — (16 ) (16 ) Other comprehensive income (loss) 1,895 (133 ) 1,762 Balance at December 31, 2019 (6,928 ) (2,600 ) (9,528 ) Other comprehensive income (loss) before reclassification 7,782 (501 ) 7,281 Amounts reclassified from accumulated other comprehensive loss — (858 ) (858 ) Tax effects — 308 308 Other comprehensive income (loss) 7,782 (1,051 ) 6,731 Balance at December 31, 2020 $ 854 $ (3,651 ) $ (2,797 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Purchase Obligations | The future purchase obligations for these agreements are as follows (in thousands): Year ending December 31, 2021 $ 6,436 2022 6,884 2023 6,509 2024 3,560 2025 3,307 Thereafter — Total $ 26,696 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables are in thousands: Year ended December 31, 2020 Software CES All other Total Revenue $ 418,165 $ 44,320 $ 7,436 $ 469,921 Adjusted EBITDA $ 53,820 $ 5,129 $ (1,661 ) $ 57,288 Year ended December 31, 2019 Software CES All other Total Revenue $ 401,278 $ 48,987 $ 8,650 $ 458,915 Adjusted EBITDA $ 38,834 $ 5,255 $ (4,540 ) $ 39,549 Year ended December 31, 2018 Software CES All other Total Revenue $ 341,306 $ 47,852 $ 7,221 $ 396,379 Adjusted EBITDA $ 48,643 $ 5,155 $ (3,618 ) $ 50,180 |
Reconciliation of U.S. GAAP Income (Loss) Before Income Taxes to Adjusted EBITDA | Year ended December 31, 2020 2019 2018 Reconciliation of Adjusted EBITDA to GAAP income (loss) before income taxes: Adjusted EBITDA $ 57,288 $ 39,549 $ 50,180 Stock-based compensation expense (21,355 ) (8,528 ) (3,339 ) Interest expense (11,598 ) (6,371 ) (200 ) Interest income and other (1) 1,503 260 (4,883 ) Depreciation and amortization (23,806 ) (21,522 ) (14,734 ) Income before income taxes $ 2,032 $ 3,388 $ 27,024 (1) Included for the year ended December 31, 2020 are a) $1.0 million of proceeds from settlements related to a historical acquisition, and b) $0.6 million of severance expense. Included for the year ended December 31, 2019 are a) acquisition related costs of $0.6 million, b) severance expense of $0.4 million, and c) impairment charges for royalty contracts of $1.0 million. Included for the year ended December 31, 2018 are a) costs from the acquisition of Datawatch of $10.4 million, b) gain on the sale of a building of $4.4 million, c) impairment charges for royalty contracts and trade names of $2.8 million, and d) an income adjustment for a change in estimated legal expenses of $2.0 million. |
Summary of Sales to External Customers and Long-Lived Assets by Geographical Areas | Revenue is attributed to geographic areas based on the country of origin. The following table provides sales to external customers and long-lived assets for each of the geographic areas in which the Company operates (in thousands): Revenue Long-lived assets (1) Year ended December 31, December 31, 2020 2019 2018 2020 2019 United States $ 233,611 $ 219,053 $ 186,026 $ 60,479 $ 55,319 Other countries 12,127 14,753 8,604 8,378 10,190 Total Americas 245,738 233,806 194,630 68,857 65,509 Germany 48,559 50,102 45,664 9,201 3,405 France 15,287 17,210 16,154 1,078 1,224 Other countries 49,403 49,312 42,846 11,730 11,316 Total Europe, Middle East and Africa 113,249 116,624 104,664 22,009 15,945 Japan 41,109 37,757 35,478 2,009 2,036 Other countries 69,825 70,728 61,607 8,441 8,941 Total Asia Pacific 110,934 108,485 97,085 10,450 10,977 Total $ 469,921 $ 458,915 $ 396,379 $ 101,316 $ 92,431 (1) Includes property and equipment, net and definite-lived intangible assets, net. |
Description of Business - Addit
Description of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 07, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Proceeds from the exercise of stock options | $ 1,710 | $ 1,510 | $ 2,077 | |
Offering [Member] | Class A Common Stock [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Number of shares issued and sold | 4,056,004 | |||
Price per share | $ 35 | |||
Proceeds from issuance of Class A common stock in follow-on offering, net of underwriting discounts and commissions | $ 135,600 | |||
Stock issuance, offering costs | $ 400 | |||
Number of shares of common stock sold | 2,307,420 | |||
Shares issued upon conversion | 1,675,420 | |||
Exercise of stock options (in shares) | 257,000 | |||
Proceeds from the exercise of stock options | $ 500 | |||
Offering [Member] | Class B Common Stock [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Conversion from Class B to Class A | 1,675,420 | |||
Underwriters [Member] | Offering [Member] | Class A Common Stock [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Shares Sold From Underwriters Allotment | 763,424 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 241,221 | $ 223,117 | ||
Restricted cash included in other long-term assets | 326 | 380 | ||
Total cash, cash equivalents, and restricted cash | $ 241,547 | $ 223,497 | $ 35,685 | $ 39,578 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accounts Receivable Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | ||
Accounts receivable, trade | $ 111,162 | $ 100,461 |
Contract assets | 6,716 | 4,523 |
Accounts receivable, net | $ 117,878 | $ 104,984 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2020 | |
Accounting Policies [Line Items] | |||||
Provision for credit loss | $ 2,559,000 | $ 1,415,000 | $ 1,150,000 | $ 798,000 | |
Impairment losses | 0 | 0 | 0 | ||
Impairment of intangible assets | 0 | 608,000 | |||
Income tax receivable, current | 6,736,000 | 7,264,000 | |||
Advertising expenses | $ 4,000,000 | 4,500,000 | $ 4,400,000 | ||
Shares issued | 133,336 | ||||
Remaining mezzanine equity | 66,664 | ||||
Retained earnings | $ (93,293,000) | (82,405,000) | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Accounting Policies [Line Items] | |||||
Provision for credit loss | 388,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Accounting Policies [Line Items] | |||||
Stock-based compensation awards requisite service period | 4 years | ||||
Class A Common Stock [Member] | Put Option [Member] | |||||
Accounting Policies [Line Items] | |||||
Put right exercise period from date of purchase | 5 years | ||||
Shares issued | 200,000 | ||||
Put right, exercise price | $ 12.50 | ||||
Ministry of the Economy, Finance and Industry, France [Member] | Research and Development Tax Credit Carryforward [Member] | |||||
Accounting Policies [Line Items] | |||||
Tax credit carryforward, period | 3 years | ||||
Income tax receivable | $ 13,200,000 | 12,100,000 | |||
Income tax receivable, current | 3,200,000 | 2,500,000 | |||
Income tax receivable, noncurrent | $ 10,000,000 | $ 9,600,000 | |||
Building and Improvements [Member] | Minimum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful life | 5 years | ||||
Building and Improvements [Member] | Maximum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful life | 39 years | ||||
Computer Equipment and Software [Member] | Minimum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful life | 3 years | ||||
Computer Equipment and Software [Member] | Maximum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful life | 5 years | ||||
Office Furniture and Equipment [Member] | Minimum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful life | 5 years | ||||
Office Furniture and Equipment [Member] | Maximum [Member] | |||||
Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful life | 15 years | ||||
ASU 2016-13 | |||||
Accounting Policies [Line Items] | |||||
Change in provision for credit loss | $ 400,000 | ||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Accounting Policies [Line Items] | |||||
Retained earnings | $ 400,000 | ||||
ASU 2018-13 | |||||
Accounting Policies [Line Items] | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||||
ASU 2018-15 | |||||
Accounting Policies [Line Items] | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Provision for Credit Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Balance, beginning of year | $ (1,415) | $ (1,150) | $ (798) |
Provision charged to expense | (1,259) | (671) | (394) |
Write-offs, net of recoveries | 563 | 413 | 3 |
Effects of foreign currency translation | (60) | (7) | 39 |
Balance, end of year | (2,559) | (1,415) | $ (1,150) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Balance, beginning of year | $ (388) | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||
Balance, end of year | $ (388) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 469,921 | $ 458,915 | $ 396,379 |
Term Licenses [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 224,472 | 201,881 | 168,909 |
Perpetual Licenses [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 35,493 | 42,440 | 38,255 |
Maintenance [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 117,159 | 103,699 | 86,150 |
Professional Software Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 14,587 | 18,682 | 11,047 |
Software Related Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 26,454 | 34,576 | 36,945 |
Client Engineering Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 44,320 | 48,987 | 47,852 |
Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 7,436 | $ 8,650 | $ 7,221 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue From Contracts With Customers [Line Items] | |||
Percentage of net revenues through indirect channels | 10.00% | 10.00% | 10.00% |
Capitalized contract cost, amortization period | 4 years | ||
Capitalized contract cost, amortization method | straight-line basis | ||
Contract assets | $ 6,716 | $ 4,523 | |
Deferred revenue, revenue recognized | 74,500 | ||
Contracted revenue not yet recognized | $ 131,400 | $ 113,500 | |
Revenue recognize percentage | 84.00% | 80.00% | |
Sales and Marketing Expense [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Sales commissions | $ 5,000 | $ 4,500 | |
Prepaid and Other Current Assets [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Capitalized contract cost net, current | 3,700 | 2,300 | |
Contract assets | 1,400 | 2,700 | |
Other Long-Term Assets [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Capitalized contract cost net, noncurrent | 600 | 800 | |
Contract assets | 1,300 | ||
Accounts Receivable [Member] | |||
Revenue From Contracts With Customers [Line Items] | |||
Contract assets | $ 6,700 | $ 4,500 |
Acquisitions and Disposals - Ad
Acquisitions and Disposals - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 31, 2022 | Nov. 07, 2019 | Sep. 30, 2020 | Oct. 31, 2019 | Dec. 31, 2020 |
Univa [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, preliminary base purchase price | $ 30,200 | ||||
Preliminary base purchase price allocation maximum evaluation period from acquisition date | 1 year | ||||
Fair value of consideration transferred | $ 30,184 | ||||
Other Business Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | $ 16,900 | ||||
Other Business Acquisitions [Member] | Goodwill [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | 8,200 | ||||
Other Business Acquisitions [Member] | Developed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | 6,200 | ||||
Other Business Acquisitions [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | 2,200 | ||||
Other Business Acquisitions [Member] | Tax Deduction [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | $ 700 | ||||
Polliwog Co. Ltd. [Member] | Stock Purchase Agreement | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | $ 19,300 | ||||
Business acquisition, percentage of interest acquired | 97.00% | ||||
Polliwog Co. Ltd. [Member] | Second Stock Purchase Agreement | Forecast | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | $ 800 | ||||
Business acquisition, percentage of interest acquired | 3.00% | ||||
DEM Solutions Limited [Member] | Stock Purchase Agreement | |||||
Business Acquisition [Line Items] | |||||
Fair value of consideration transferred | $ 13,100 | ||||
Business acquisition, percentage of interest acquired | 100.00% |
Acquisitions and Disposals - Su
Acquisitions and Disposals - Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date (Detail) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 264,481 | $ 233,683 | $ 210,532 | |
Univa [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair value of consideration transferred | $ 30,184 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Cash | 193 | |||
Accounts receivable | 956 | |||
Other assets | 164 | |||
Accounts payable and other liabilities | (891) | |||
Deferred revenue | (874) | |||
Deferred tax liabilities | (1,100) | |||
Total net identifiable assets acquired and liabilities assumed | 12,448 | |||
Goodwill | 17,736 | |||
Univa [Member] | Trade Names [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Indefinite-lived intangibles | 200 | |||
Univa [Member] | Developed Technology [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Finite-lived intangibles | 9,000 | |||
Univa [Member] | Customer Relationships [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Finite-lived intangibles | $ 4,800 |
Acquisitions and Disposals - _2
Acquisitions and Disposals - Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date (Parenthetical) (Detail) - Univa [Member] | 1 Months Ended |
Sep. 30, 2020USD ($) | |
Software [Member] | |
Business Acquisition [Line Items] | |
Goodwill deductible for tax purposes | $ 0 |
Trade Names [Member] | |
Business Acquisition [Line Items] | |
Weighted-average useful life of acquired finite-lived intangible assets | 4 years |
Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Weighted-average useful life of acquired finite-lived intangible assets | 6 years |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Weighted-average useful life of acquired finite-lived intangible assets | 7 years |
Disposals WEYV - Additional Inf
Disposals WEYV - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
WEYV [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups [Line Items] | ||
Loss before income tax | $ (3) | $ (4.2) |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 89,601 | $ 82,603 |
Less: accumulated depreciation and amortization | 53,269 | 46,306 |
Property and equipment, net | 36,332 | 36,297 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 10,067 | 9,942 |
Property, Plant and Equipment, Estimated Useful Lives | Indefinite | |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 15,630 | 15,512 |
Building and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Building and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 39 years | |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 41,451 | 37,361 |
Computer Equipment and Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 3 years | |
Computer Equipment and Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 10,136 | 8,029 |
Office Furniture and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Office Furniture and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 15 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 9,652 | 9,014 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 10 years | |
Right-of-Use Assets Under Finance Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,665 | $ 2,745 |
Right-of-Use Assets Under Finance Leases [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Right-of-Use Assets Under Finance Leases [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 10 years |
Property and Equipment, Net -_2
Property and Equipment, Net - Summary of Property and Equipment (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Right-of-Use Assets Under Finance Leases [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Right-of-Use Assets Under Finance Leases [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 10 years |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense, including amortization of right-of-use assets under finance leases | $ 7.4 | $ 7.1 | $ 7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill Attributable to Software Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning Balance | $ 233,683 | $ 210,532 |
Acquisitions | 25,932 | 21,922 |
Effects of foreign currency translation and other | 4,866 | 1,229 |
Ending Balance | $ 264,481 | $ 233,683 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | $ 119,392 | $ 93,609 |
Accumulated amortization | 54,408 | 37,475 |
Net carrying amount | 64,984 | 56,134 |
Gross carrying amount | 130,522 | 104,550 |
Net carrying amount | 76,114 | 67,075 |
Developed Technology [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | 78,841 | 60,916 |
Accumulated amortization | 37,651 | 25,838 |
Net carrying amount | $ 41,190 | $ 35,078 |
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 | $ 40,207 | $ 32,582 |
Accumulated amortization | 16,673 | 11,575 |
Net carrying amount | $ 23,534 | $ 21,007 |
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] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 10 years | |
Gross carrying amount | $ 344 | $ 111 |
Accumulated amortization | 84 | 62 |
Net carrying amount | $ 260 | 49 |
Other Intangibles [Member] | Minimum [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 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 | |
Trade Names [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Net carrying amount | $ 11,130 | $ 10,941 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 16,376 | $ 14,442 | $ 7,739 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
December 31, 2021 | $ 17,763 | |
December 31, 2022 | 14,348 | |
December 31, 2023 | 15,406 | |
December 31, 2024 | 8,204 | |
December 31, 2025 | 4,745 | |
Thereafter | 4,518 | |
Net carrying amount | $ 64,984 | $ 56,134 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 260,775 | $ 231,174 |
Less: unamortized debt discount | 37,190 | 46,820 |
Less: unamortized debt issuance costs | 4,548 | 5,686 |
Current portion of long-term debt | 30,384 | 430 |
Long-term debt, net of current portion | 188,653 | 178,238 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 30,000 | |
Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 230,000 | 230,000 |
Obligations for Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 775 | $ 1,174 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2021USD ($) | Jun. 30, 2019USD ($)d$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Debt instrument, equity component recorded in additional paid-in capital | $ 50,009,000 | ||||
Repayments of borrowing outstanding | 127,941,000 | $ 6,091,000 | |||
Overdraft and Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan outstanding | $ 0 | 0 | |||
Amount available under secured credit agreement | 3,600,000 | 3,500,000 | |||
Convertible Senior Notes Due in 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 230,000,000 | $ 230,000,000 | |||
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 | ||||
Interest payment commencement date | Dec. 1, 2019 | ||||
Debt instrument maturity date | Jun. 1, 2024 | ||||
Debt instrument, description | The Convertible 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, commencing December 1, 2019. | ||||
Debt instrument conversion rate principal amount of notes | $ 1,000 | ||||
Debt instrument, convertible, terms of conversion feature | The Convertible Notes have an initial conversion rate of 21.5049 shares of the Company's Class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $46.50 per share of its Class A common stock. | ||||
Debt instrument, convertible, “if-converted value” in excess of the principal amount | $ 57,800,000 | ||||
Debt instrument, equity component recorded in additional paid-in capital | 51,800,000 | ||||
Debt instrument, fair value of the liability component | 178,200,000 | ||||
Net carrying value of equity component of convertible notes | $ 50,000,000 | $ 50,000,000 | |||
Convertible Senior Notes Due in 2024 [Member] | Class A Common Stock [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt conversion, converted instrument, shares issued | shares | 21.5049 | ||||
Debt instrument conversion rate principal amount of notes | $ 1,000 | ||||
Debt instrument convertible initial conversion price per share of common stock | $ / shares | $ 46.50 | $ 46.50 | |||
Convertible Senior Notes Due in 2024 [Member] | Class A Common Stock [Member] | Convertible Notes, Holders Conversion Rights, Circumstances 1 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, convertible, consecutive trading days | d | 30 | ||||
Convertible Senior Notes Due in 2024 [Member] | Class A Common Stock [Member] | Convertible Notes, Holders Conversion Rights, Circumstances 1 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, convertible, trading days | d | 20 | ||||
Debt instrument, convertible, threshold percentage of conversion price | 130.00% | ||||
Convertible Senior Notes Due in 2024 [Member] | Class A Common Stock [Member] | Convertible Notes, Holders Conversion Rights, Circumstances 2 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument conversion rate principal amount of notes | $ 1,000 | ||||
Debt instrument, convertible, consecutive trading days | d | 5 | ||||
Debt instrument, convertible, business days | d | 5 | ||||
Debt instrument, convertible, maximum threshold percentage of sale price of common stock during measurement period | 98.00% | ||||
Twenty Nineteen Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Dec. 15, 2023 | ||||
Credit facility | $ 150,000,000 | ||||
Increase in line of credit borrowing capacity | 50,000,000 | ||||
Increase in unrestricted domestic cash | $ 20,000,000 | ||||
Maximum leverage ratio | 5.00% | ||||
Twenty Nineteen Credit Agreement | Federal Funds Effective Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Twenty Nineteen Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Twenty Nineteen Credit Agreement | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fees on unused portion of the Revolving Credit Facility | 0.15% | ||||
EBITDA to cash Consolidated Interest Expense ratio | 3.00% | ||||
Twenty Nineteen Credit Agreement | Minimum [Member] | Eurodollar Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin for borrowings under new credit facility | 1.25% | ||||
Twenty Nineteen Credit Agreement | Minimum [Member] | Swingline Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin for borrowings under new credit facility | 0.25% | ||||
Twenty Nineteen Credit Agreement | Minimum [Member] | APR Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin for borrowings under new credit facility | 0.25% | ||||
Twenty Nineteen Credit Agreement | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fees on unused portion of the Revolving Credit Facility | 0.30% | ||||
Senior secured leverage ratio | 3.00% | ||||
Twenty Nineteen Credit Agreement | Maximum [Member] | Eurodollar Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin for borrowings under new credit facility | 2.00% | ||||
Twenty Nineteen Credit Agreement | Maximum [Member] | Swingline Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin for borrowings under new credit facility | 1.00% | ||||
Twenty Nineteen Credit Agreement | Maximum [Member] | APR Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin for borrowings under new credit facility | 1.00% | ||||
Secured Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan outstanding | $ 30,000,000 | ||||
Amount available for future borrowing | $ 120,000,000 | ||||
Weighted Average Interest Rate on borrowings | 1.50% | ||||
Secured Credit Agreement [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of borrowing outstanding | $ 30,000,000 |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Value of Liability Component of Convertible Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Principal | $ 260,775 | $ 231,174 |
Less: unamortized debt discount | 37,190 | 46,820 |
Less: unamortized debt issuance costs | 4,548 | 5,686 |
Convertible Senior Notes Due in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 230,000 | 230,000 |
Less: unamortized debt discount | 37,190 | 46,820 |
Less: unamortized debt issuance costs | 4,510 | 5,686 |
Net carrying amount | $ 188,300 | $ 177,494 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Related to Convertible Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance cost and discount | $ 10,829 | $ 5,663 | $ 23 |
Convertible Senior Notes Due in 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 575 | 313 | |
Amortization of debt issuance cost and discount | 10,806 | 5,635 | |
Total | $ 11,381 | $ 5,948 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | |||
Rent cost for operating leases | $ 12.1 | $ 11.8 | $ 11 |
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Leases, remaining lease term | 1 year | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Leases, remaining lease term | 8 years 8 months 12 days | ||
Operating leases, options to extend lease term | 6 years | ||
Leases, options to terminate leases | 3 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 13,412 | $ 13,287 |
Finance lease cost: | ||
Amortization of ROU assets | 634 | 525 |
Interest on lease liabilities | 32 | 21 |
Total finance lease cost | $ 666 | $ 546 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases: | ||
Operating lease ROU assets | $ 33,526 | $ 28,134 |
Current portion of operating lease liabilities | 10,331 | 9,141 |
Operating lease liabilities, net of current portion | 24,323 | 20,174 |
Total operating lease liabilities | $ 34,654 | $ 29,315 |
Weighted average remaining lease term | 4 years 2 months 12 days | 4 years 2 months 12 days |
Weighted average discount rate | 4.70% | 5.60% |
Finance leases: | ||
Property and equipment | $ 2,665 | $ 2,745 |
Accumulated depreciation | (1,797) | (1,447) |
Property and equipment, net | $ 868 | $ 1,298 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentMember | us-gaap:PropertyPlantAndEquipmentMember |
Current portion of long-term debt | $ 422 | $ 430 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Long-term debt, net of current portion | $ 353 | $ 744 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Total finance lease liabilities | $ 775 | $ 1,174 |
Weighted average remaining lease term | 2 years 1 month 6 days | 2 years 8 months 12 days |
Weighted average discount rate | 3.10% | 3.50% |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ (11,875) | $ (11,355) |
Operating cash flows from finance leases | (32) | (46) |
Financing cash flows from finance leases | (456) | (438) |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | 11,713 | 11,251 |
Finance leases | $ 118 | $ 632 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 11,704 | |
2022 | 9,408 | |
2023 | 6,900 | |
2024 | 4,178 | |
2025 | 2,786 | |
Thereafter | 3,203 | |
Total lease payments | 38,179 | |
Less: imputed interest | 3,525 | |
Total operating lease liabilities | $ 34,654 | $ 29,315 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Income taxes payable | $ 7,250 | $ 6,008 |
Accrued VAT | 6,604 | 5,312 |
Accrued professional fees | 3,156 | 2,581 |
Accrued royalties | 2,009 | 2,314 |
Obligations for acquisition of businesses | 1,957 | 1,362 |
Defined contribution plan liabilities | 1,660 | 1,593 |
Non-income tax liabilities | 1,366 | 1,253 |
Billings in excess of cost | 1,108 | 879 |
Other current liabilities | 5,872 | 7,301 |
Total | $ 30,982 | $ 28,603 |
Other Liabilities - Summary o_2
Other Liabilities - Summary of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Pension and other post retirement liabilities | $ 14,497 | $ 10,379 |
Deferred tax liabilities | 8,028 | 6,275 |
Other liabilities | 4,889 | 10,018 |
Total | $ 27,414 | $ 26,672 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value of convertible notes | $ 316,300,000 | |
Foreign Exchange Contract [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivatives outstanding notional value | $ 0 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020Vote$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / shares | |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 45,000,000 | 45,000,000 | |
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock dividends | $ / shares | $ 0 | $ 0 | $ 0 |
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 513,796,572 | 513,797,000 | |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |
Number of votes entitled per share | Vote | 1 | ||
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 41,203,428 | 41,203,000 | |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |
Number of votes entitled per share | Vote | 10 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2019shares | Dec. 31, 2020USD ($)Installment$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Sep. 27, 2017shares | Dec. 31, 2012shares | Dec. 31, 2001shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options, granted | 0 | ||||||
Stock Purchase Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Business combination, estimated post combination expense | $ | $ 8.7 | ||||||
Weighted average remaining service period | 1 year 9 months 18 days | ||||||
Stock-based compensation expense | $ | $ 2.9 | $ 0.7 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total requisite service period of awards | 4 years | ||||||
Class A Common Stock [Member] | Polliwog Co. Ltd. [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Business acquisition, shares issued | 256,594 | ||||||
Business acquisition, equity interest issued or issuable, description | Stock Purchase Agreement, 256,594 shares of the Company’s Class A Common Stock will be issued to existing employees, subject to continuing employment. The shares will be issued on the one-, two- and three-year anniversaries of the closing | ||||||
NSO Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options, outstanding | 2,533,931 | 3,557,436 | |||||
Exercise price stock options outstanding | $ / shares | $ 0.000025 | $ 0.000025 | |||||
Contractual term | 35 years | ||||||
Intrinsic value of options exercised | $ | $ 43.1 | $ 28.8 | $ 68.4 | ||||
ISO Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options, outstanding | 103,000 | ||||||
Exercise price stock options outstanding | $ / shares | $ 0.64 | ||||||
Contractual term | 10 years | ||||||
Intrinsic value of options exercised | $ | $ 3.8 | $ 14.4 | 5.2 | ||||
ISO Plan [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options vesting period | 2 years | ||||||
ISO Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options vesting period | 3 years | ||||||
ISO Plan [Member] | Class A Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized | 11,153,872 | ||||||
2012 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options, outstanding | 824,652 | 1,183,817 | |||||
Exercise price stock options outstanding | $ / shares | $ 4.26 | $ 4.23 | |||||
Contractual term | 10 years | ||||||
Intrinsic value of options exercised | $ | $ 13.9 | $ 11.2 | $ 18 | ||||
Total requisite service period of awards | 4 years | ||||||
Compensation cost related to nonvested awards not yet recognized | $ | $ 0.1 | ||||||
Weighted average period of recognition | 4 months 24 days | ||||||
Stock options, granted | 0 | ||||||
2012 Plan [Member] | Class A Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized | 5,200,000 | ||||||
2017 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options, outstanding | 4,203,482 | 20,000 | |||||
Exercise price stock options outstanding | $ / shares | $ 45.68 | $ 38.11 | |||||
Stock options, granted | 4,209,454 | ||||||
2017 Plan [Member] | 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 | $ | $ 90.9 | ||||||
Weighted average period of recognition | 2 years 8 months 12 days | ||||||
Weighted average grant date fair value of RSUs | $ / shares | $ 32.22 | ||||||
Number of vesting equal annual installments | Installment | 4 | ||||||
Fair value of RSUs vested | $ | $ 6.7 | ||||||
2017 Plan [Member] | Class A Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserved for issuance | 10,277,034 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity under NSO Plan (Detail) - NSO Plan [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 3,557,436 | |
Number of options, Exercised | (1,023,505) | |
Number of options, Forfeited | 0 | |
Number of options, Outstanding and exercisable, Ending Balance | 2,533,931 | |
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 | $ 0.000025 | |
Weighted average exercise price per share, Exercised | 0.000025 | |
Weighted average exercise price per share, Forfeited | 0 | |
Weighted average exercise price per share, Outstanding and exercisable, Ending Balance | $ 0.000025 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 17 years | |
Weighted average remaining contractual term (years), Outstanding and exercisable | 16 years | |
Aggregate intrinsic value, Outstanding | $ 127.8 | |
Aggregate intrinsic value, Outstanding and exercisable | $ 147.4 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Option Activity under ISO Plan (Detail) - ISO Plan [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 103,000 | |
Number of options, Exercised | (103,000) | |
Number of options, Forfeited | 0 | |
Number of options, Outstanding and exercisable, Ending Balance | 0 | |
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 | $ 0.64 | |
Weighted average exercise price per share, Exercised | 0.64 | |
Weighted average exercise price per share, Forfeited | 0 | |
Weighted average exercise price per share, Outstanding and exercisable, Ending Balance | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 1 year | |
Aggregate intrinsic value, Outstanding | $ 3.6 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Stock Option Activity under 2012 Plan (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Granted | 0 | ||
2012 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Outstanding, Beginning Balance | 1,183,817 | ||
Number of options, Granted | 0 | ||
Number of options, Exercised | (351,165) | ||
Number of options, Forfeited | (8,000) | ||
Number of options, Outstanding, Ending Balance | 824,652 | 1,183,817 | |
Number of options, Exercisable | 691,362 | ||
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 | $ 4.23 | ||
Weighted average exercise price per share, Granted | 0 | ||
Weighted average exercise price per share, Exercised | 4.18 | ||
Weighted average exercise price per share, Forfeited | 4.31 | ||
Weighted average exercise price per share, Outstanding, Ending Balance | 4.26 | $ 4.23 | |
Weighted average exercise price per share, Exercisable | $ 4.08 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual term (years), Outstanding | 5 years 1 month 6 days | 6 years 1 month 6 days | |
Weighted average remaining contractual term (years), Exercisable | 4 years 9 months 18 days | ||
Aggregate intrinsic value, Exercisable | $ 37.4 |
Stock-based Compensation - Su_4
Stock-based Compensation - Summary of Restricted Stock Units Awarded (Detail) - 2017 Plan [Member] - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2020shares | |
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 | 781,301 |
Number of RSUs, Granted | 641,723 |
Number of RSUs, Vested | (222,716) |
Number of RSUs, Forfeited | (45,372) |
Number of RSUs, Outstanding Ending Balance | 1,154,936 |
Stock-based Compensation - Su_5
Stock-based Compensation - Summary of Stock Option Activity under 2017 Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Granted | 0 | ||
2017 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Outstanding, Beginning Balance | 20,000 | ||
Number of options, Granted | 4,209,454 | ||
Number of options, Exercised | (5,000) | ||
Number of options, Forfeited | (20,972) | ||
Number of options, Outstanding, Ending Balance | 4,203,482 | 20,000 | |
Number of options, Exercisable | 158 | ||
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 | $ 38.11 | ||
Weighted average exercise price per share, Granted | 45.68 | ||
Weighted average exercise price per share, Exercised | 38.11 | ||
Weighted average exercise price per share, Forfeited | 40.80 | ||
Weighted average exercise price per share, Outstanding, Ending Balance | 45.68 | $ 38.11 | |
Weighted average exercise price per share, Exercisable | $ 29.22 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual term (years), Outstanding | 9 years 8 months 12 days | 9 years 2 months 12 days | |
Weighted average remaining contractual term (years), Exercisable | 2 months 12 days |
Stock-based Compensation - Su_6
Stock-based Compensation - Summary of Fair value of Company's Stock Options Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value per share | $ 38.11 | |
Expected volatility | 42.00% | |
Expected volatility, minimum | 34.00% | |
Expected volatility, maximum | 35.00% | |
Expected term (in years) | 6 years 3 months | 6 years 3 months |
Risk-free interest rate | 1.80% | |
Risk-free interest rate, minimum | 0.46% | |
Risk-free interest rate, maximum | 0.60% | |
Expected dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value per share | $ 29.22 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value per share | $ 57.72 |
Stock-based Compensation - Su_7
Stock-based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 21,355 | $ 8,528 | $ 3,339 |
Cost of Revenue - Software [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 2,473 | 1,069 | 31 |
Research and development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 8,372 | 2,917 | 740 |
Sales and marketing [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 6,423 | 2,250 | 910 |
General and administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 4,087 | $ 2,292 | $ 1,658 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S | $ (22,127) | $ (14,732) | $ 4,228 |
Non-U.S | 24,159 | 18,120 | 22,796 |
Income before income taxes | $ 2,032 | $ 3,388 | $ 27,024 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
U.S. Federal | $ 0 | $ 0 | $ 2 |
Non-U.S. | 23,197 | 11,434 | 12,629 |
U.S. State and Local | (315) | 446 | (16) |
Total current | 22,882 | 11,880 | 12,615 |
Deferred | |||
U.S. Federal | (881) | 193 | 1,714 |
Non-U.S. | (9,849) | (1,143) | (2,823) |
U.S. State and Local | 380 | (17) | |
Total deferred | (10,350) | (950) | (1,126) |
Income tax expense | $ 12,532 | $ 10,930 | $ 11,489 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Calculated at U.S. Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% |
Income taxes at U.S. federal statutory rate | $ 427 | $ 711 | $ 5,675 | |
Foreign income taxes at rates other than the federal statutory rate | 1,161 | 1,247 | 2,179 | |
U.S. state and local income taxes, net of U.S. federal tax benefit | (4,892) | (6,836) | (3,453) | |
U.S. effect of changes in tax laws | 4,946 | |||
U.S. effect of foreign operations | 1,205 | 8,609 | ||
Change in valuation allowance | 5,215 | 18,138 | 21,544 | |
Foreign withholding taxes | 6,691 | 5,975 | 5,103 | |
U.S. foreign tax credit and deduction | (1,308) | (7,059) | (5,648) | |
Research and development tax credit | 2,576 | (2,600) | (2,819) | |
Stock-based compensation | (5,001) | (4,574) | (14,964) | |
Meals & entertainment | 77 | 246 | 181 | |
Other | 640 | (1,068) | 1,206 | |
Uncertain tax positions | 720 | (1,859) | 903 | |
Acquisition costs | 75 | 503 | ||
Tax law changes | 1,079 | |||
Income tax expense | $ 12,532 | $ 10,930 | $ 11,489 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||||
Tax cuts and jobs act, foreign income exemption criteria subject to corporate tax rate minimum percentage | 90.00% | ||||
U.S. Federal statutory income tax rate | 21.00% | 21.00% | 21.00% | 35.00% | |
Tax cuts and job act, transition tax liability, net of foreign tax credits | $ 4,200 | ||||
Tax cuts and job act, additional transition tax liability, net of foreign tax credits | $ 600 | ||||
Tax benefit | $ (12,532) | $ (10,930) | (11,489) | ||
Offset by increase in valuation allowance recorded for business combinations | 12,600 | ||||
Gross unrecognized tax benefits recognized would affect the effective tax rate | 3,500 | ||||
Scenario Forecast [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Reduction in unrecognized tax benefits which if recognized would impact effective tax rate in next 12 months | $ 400 | ||||
Decrease in Valuation Allowance [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Valuation allowance in other | 200 | ||||
ASC 606 [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Valuation allowance in other | 12,600 | ||||
Other Comprehensive Income [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax benefit | $ 200 | ||||
Issuance of Convertible Debt [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Valuation allowance in other | $ 11,900 | ||||
Univa [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Valuation allowance in other | $ 7,300 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Deferred revenue | $ 12,135 | $ 11,408 |
Net operating loss carryforwards | 66,160 | 38,745 |
Tax credit carryforwards | 26,299 | 38,981 |
Stock-based compensation | 3,766 | 6,480 |
Capitalized research and development | 6,472 | 7,162 |
Lease obligation | 9,956 | 7,579 |
Employee benefits | 5,980 | 5,189 |
Other | 2,618 | 1,968 |
Total gross deferred tax assets | 133,386 | 117,512 |
Less: valuation allowances | (96,831) | (84,356) |
Net deferred tax assets | 36,555 | 33,156 |
Deferred tax liabilities: | ||
Prepaid royalties | 584 | |
Property and equipment and intangibles | 16,177 | 13,588 |
Deferred tax on investment in subsidiary | 790 | 474 |
Lease right of use asset | 9,610 | 7,247 |
Convertible debt, net of issuance costs | 8,685 | 10,899 |
Other | 1,612 | 1,432 |
Total deferred tax liabilities | 37,458 | 33,640 |
Total net deferred tax (liabilities) assets | $ (903) | $ (484) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes to Valuation Allowance Balance (Detail) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of year | $ 84,356 | $ 78,155 | $ 56,761 |
Additions charged to expense | 5,215 | 18,138 | 21,544 |
Other | 7,260 | (11,937) | (150) |
Balance at end of year | $ 96,831 | $ 84,356 | $ 78,155 |
Income Taxes - Operating Loss a
Income Taxes - Operating Loss and Tax Credit Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Foreign loss carryforwards, expiration year | Indefinite |
U.S. foreign tax credits, expiration year | 2027 |
U.S. foreign tax credits | $ 2,878 |
Total operating loss and tax credit carryforwards | 92,459 |
Foreign Tax Authority [Member] | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Foreign loss carryforwards | $ 9,990 |
General Business Tax Credit Carryforward [Member] | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
U.S. general business credits and loss carryforwards, expiration year | 2021-Indefinite |
Foreign loss carryforwards | $ 79,591 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits-January 1 | $ 15,540 | $ 17,097 | $ 6,157 |
Additions for tax positions of current period | 310 | 234 | |
Additions for tax positions of current period | (203) | ||
Additions for tax positions of prior periods | 1,890 | 642 | 10,866 |
Reductions for tax positions of prior periods | (8,816) | (1,834) | (100) |
Reductions due to statute of limitations | (162) | (60) | |
Unrecognized tax benefits—December 31 | $ 8,924 | $ 15,540 | $ 17,097 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net (loss) income | $ (10,500) | $ (7,542) | $ 15,535 |
Denominator: | |||
Denominator for basic (loss) income per share— weighted average shares | 73,241 | 71,544 | 67,468 |
Effect of dilutive securities, stock options and RSUs | 7,410 | ||
Denominator for dilutive (loss) income per share | 73,241 | 71,544 | 74,878 |
Net (loss) income per share attributable to common stockholders, basic | $ (0.14) | $ (0.11) | $ 0.23 |
Net (loss) income per share attributable to common stockholders, diluted | $ (0.14) | $ (0.11) | $ 0.21 |
Net (Loss) Income Per Share - A
Net (Loss) Income Per Share - Additional Information (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Earnings Per Share Basic [Line Items] | ||||
Anti-dilutive shares excluded from computation of net (loss) income per share | 3,100,000 | 5,700,000 | 0 | |
Class A Common Stock [Member] | Convertible Senior Notes Due in 2024 [Member] | ||||
Earnings Per Share Basic [Line Items] | ||||
Debt instrument convertible initial conversion price per share of common stock | $ 46.50 | $ 46.50 |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Funded percentage | 80.00% | ||
Defined Benefit Plan, Contributions by Employer | $ 1,600 | $ 1,600 | $ 1,300 |
Net benefit cost | 2,700 | 1,800 | 1,200 |
Benefit obligation benefits paid | 500 | 400 | $ 400 |
Accumulated benefit obligation | 8,700 | 6,800 | |
Defined benefit plan, benefit obligation | $ 15,154 | $ 10,975 |
Retirement Benefits - Schedule
Retirement Benefits - Schedule of Pension Benefits Obligation (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Pension Plan [Abstract] | ||
Accrued compensation and benefits | $ 657 | $ 596 |
Other long-term liabilities | 14,497 | 10,379 |
Components of pension benefits | $ 15,154 | $ 10,975 |
Retirement Benefits - Schedul_2
Retirement Benefits - Schedule of Estimated Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
December 31, 2021 | $ 677 |
December 31, 2022 | 480 |
December 31, 2023 | 624 |
December 31, 2024 | 662 |
December 31, 2025 | 577 |
Next five years | $ 4,772 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 354,707 | $ 293,686 | $ 58,948 |
Other comprehensive income (loss) before reclassification | 7,281 | 1,957 | (5,359) |
Amounts reclassified from accumulated other comprehensive loss | (858) | (179) | (1,177) |
Tax effects | 308 | (16) | 318 |
Total other comprehensive income (loss) | 6,731 | 1,762 | (6,218) |
Ending balance | 378,586 | 354,707 | 293,686 |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (6,928) | (8,823) | (3,374) |
Other comprehensive income (loss) before reclassification | 7,782 | 1,895 | (5,449) |
Total other comprehensive income (loss) | 7,782 | 1,895 | (5,449) |
Ending balance | 854 | (6,928) | (8,823) |
Retirement Related Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (2,600) | (2,467) | (1,698) |
Other comprehensive income (loss) before reclassification | (501) | 62 | 90 |
Amounts reclassified from accumulated other comprehensive loss | (858) | (179) | (1,177) |
Tax effects | 308 | (16) | 318 |
Total other comprehensive income (loss) | (1,051) | (133) | (769) |
Ending balance | (3,651) | (2,600) | (2,467) |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (9,528) | (11,290) | (5,072) |
Ending balance | $ (2,797) | $ (9,528) | $ (11,290) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 | |
Software and Other [Member] | ||||
Loss Contingencies [Line Items] | ||||
Royalty fees | $ 10.4 | $ 10.6 | $ 9.7 | |
Datawatch Corporation [Member] | Panopticon AB [Member] | Swedish Tax Authorities [Member] | ||||
Loss Contingencies [Line Items] | ||||
Tax assessment, penalties and interest amount related to acquisition | $ 6.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Purchase Obligations (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 6,436 |
2022 | 6,884 |
2023 | 6,509 |
2024 | 3,560 |
2025 | 3,307 |
Total | $ 26,696 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020SegmentCustomer | Dec. 31, 2019Customer | Dec. 31, 2018Customer | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Number of individual customer accounted for 10% or more of revenue | Customer | 0 | 0 | 0 |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Automotive Industry [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration of credit risk, percentage | 36.00% | 40.00% | 45.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 469,921 | $ 458,915 | $ 396,379 |
Adjusted EBITDA | 57,288 | 39,549 | 50,180 |
Software [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 418,165 | 401,278 | 341,306 |
Adjusted EBITDA | 53,820 | 38,834 | 48,643 |
CES [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 44,320 | 48,987 | 47,852 |
Adjusted EBITDA | 5,129 | 5,255 | 5,155 |
All Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 7,436 | 8,650 | 7,221 |
Adjusted EBITDA | $ (1,661) | $ (4,540) | $ (3,618) |
Segment Information - Reconcili
Segment Information - Reconciliation of U.S. GAAP Income (Loss) Before Income Taxes to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting [Abstract] | ||||
Adjusted EBITDA | $ 57,288 | $ 39,549 | $ 50,180 | |
Stock-based compensation expense | (21,355) | (8,528) | (3,339) | |
Interest expense | (11,598) | (6,371) | (200) | |
Interest income and other | [1] | 1,503 | 260 | (4,883) |
Depreciation and amortization | (23,806) | (21,522) | (14,734) | |
Income before income taxes | $ 2,032 | $ 3,388 | $ 27,024 | |
[1] | Included for the year ended December 31, 2020 are a) $1.0 million of proceeds from settlements related to a historical acquisition, and b) $0.6 million of severance expense. Included for the year ended December 31, 2019 are a) acquisition related costs of $0.6 million, b) severance expense of $0.4 million, and c) impairment charges for royalty contracts of $1.0 million. Included for the year ended December 31, 2018 are a) costs from the acquisition of Datawatch of $10.4 million, b) gain on the sale of a building of $4.4 million, c) impairment charges for royalty contracts and trade names of $2.8 million, and d) an income adjustment for a change in estimated legal expenses of $2.0 million. |
Segment Information - Reconci_2
Segment Information - Reconciliation of U.S. GAAP Income (Loss) Before Income Taxes to Adjusted EBITDA (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Proceeds from settlements related to historical acquisition | $ 1 | ||
Severance expense | $ 0.6 | $ 0.4 | |
Acquisition related costs | 0.6 | ||
Impairment charge recognized in adjustment for royalty contracts | $ 1 | ||
Impairment charge recognized in adjustment for royalty contracts and trade names | $ 2.8 | ||
Income recognized in adjustment for change in estimated legal expenses | 2 | ||
Building [Member] | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of building | 4.4 | ||
Datawatch Corporation [Member] | |||
Segment Reporting Information [Line Items] | |||
Costs from acquisition | $ 10.4 |
Segment Information - Summary o
Segment Information - Summary of Sales to External Customers and Long-Lived Assets by Geographical Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 469,921 | $ 458,915 | $ 396,379 |
Long-lived assets | 101,316 | 92,431 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 233,611 | 219,053 | 186,026 |
Long-lived assets | 60,479 | 55,319 | |
Other American Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 12,127 | 14,753 | 8,604 |
Long-lived assets | 8,378 | 10,190 | |
Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 245,738 | 233,806 | 194,630 |
Long-lived assets | 68,857 | 65,509 | |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 48,559 | 50,102 | 45,664 |
Long-lived assets | 9,201 | 3,405 | |
France [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 15,287 | 17,210 | 16,154 |
Long-lived assets | 1,078 | 1,224 | |
Other Europe, Middle East and Africa Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 49,403 | 49,312 | 42,846 |
Long-lived assets | 11,730 | 11,316 | |
Europe Middle East And Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 113,249 | 116,624 | 104,664 |
Long-lived assets | 22,009 | 15,945 | |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 41,109 | 37,757 | 35,478 |
Long-lived assets | 2,009 | 2,036 | |
Other Asia Pacific Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 69,825 | 70,728 | 61,607 |
Long-lived assets | 8,441 | 8,941 | |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 110,934 | 108,485 | $ 97,085 |
Long-lived assets | $ 10,450 | $ 10,977 |