SolarWinds (SWI) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-38711
Entity Registrant Name	SolarWinds Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-0753267
Entity Address, Address Line One	7171 Southwest Parkway
Entity Address, Address Line Two	Building 400
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78735
City Area Code	512
Local Phone Number	682.9300
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	SWI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		311,180,888
Entity Central Index Key	0001739942
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 221,060	$ 382,620
Accounts receivable, net of allowances of $3,469 and $3,196 as of September 30, 2019 and December 31, 2018, respectively	102,233	100,528
Income tax receivable	708	893
Prepaid and other current assets	24,108	16,267
Total current assets	348,109	500,308
Property and equipment, net	35,694	35,864
Deferred taxes	6,690	6,873
Goodwill	3,929,602	3,683,961
Intangible assets, net	815,801	956,261
Other assets, net	20,180	11,382
Total assets	5,156,076	5,194,649
Current liabilities:
Accounts payable	10,345	9,742
Accrued liabilities and other	47,933	52,055
Accrued interest payable	262	290
Income taxes payable	18,460	15,682
Current portion of deferred revenue	293,365	270,433
Current debt obligation	19,900	19,900
Total current liabilities	390,265	368,102
Long-term liabilities:
Deferred revenue, net of current portion	30,706	25,699
Non-current deferred taxes	114,919	147,144
Other long-term liabilities	130,565	133,532
Long-term debt, net of current portion	1,896,062	1,904,072
Total liabilities	2,562,517	2,578,549
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock, $0.001 par value: 1,000,000,000 shares authorized and 307,029,150 and 304,942,415 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	307	305
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	0	0
Additional paid-in capital	3,037,845	3,011,080
Accumulated other comprehensive income (loss)	(43,951)	17,043
Accumulated deficit	(400,642)	(412,328)
Total stockholders’ equity	2,593,559	2,616,100
Total liabilities and stockholders’ equity	$ 5,156,076	$ 5,194,649

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Allowance for doubtful accounts receivable	$ 3,469	$ 3,196
Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, issued (in shares)	307,029,150	304,942,415
Common stock, outstanding (in shares)	307,029,150	304,942,415
Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Total revenue	$ 240,490	$ 213,277	$ 685,030	$ 611,908
Cost of revenue:
Cost of recurring revenue	20,614	18,022	58,159	52,617
Amortization of acquired technologies	44,172	43,835	131,961	132,121
Total cost of revenue	64,786	61,857	190,120	184,738
Gross profit	175,704	151,420	494,910	427,170
Operating expenses:
Sales and marketing	68,290	56,926	193,698	166,022
Research and development	29,575	23,274	82,468	71,800
General and administrative	25,405	19,597	72,382	59,849
Amortization of acquired intangibles	18,015	16,507	51,818	50,288
Total operating expenses	141,285	116,304	400,366	347,959
Operating income	34,419	35,116	94,544	79,211
Other income (expense):
Interest expense, net	(27,418)	(35,627)	(82,977)	(112,103)
Other income (expense), net	287	(13)	506	(74,476)
Total other income (expense)	(27,131)	(35,640)	(82,471)	(186,579)
Income (loss) before income taxes	7,288	(524)	12,073	(107,368)
Income tax expense (benefit)	2,895	(126)	6,654	(20,045)
Net income (loss)	4,393	(398)	5,419	(87,323)
Net income (loss) available to common stockholders	$ 4,350	$ (75,006)	$ 5,359	$ (303,944)
Net income (loss) available to common stockholders per share:
Basic earnings (loss) per share (in dollars per share)	$ 0.01	$ (0.73)	$ 0.02	$ (2.98)
Diluted earnings (loss) per share (in dollars per share)	$ 0.01	$ (0.73)	$ 0.02	$ (2.98)
Weighted-average shares used to compute net income (loss) available to commons stockholders per share:
Shares used in computation of basic earning (loss) per share (in shares)	306,890	102,078	306,381	101,915
Shares used in computation of diluted earnings (loss) per share (in shares)	311,102	102,078	310,607	101,915
Recurring Revenue
Revenue:
Total revenue	$ 196,877	$ 169,530	$ 564,307	$ 493,588
Subscription
Revenue:
Total revenue	83,122	67,713	233,467	196,004
Cost of revenue:
Amortization of acquired technologies	8,526	7,774	24,737	23,147
Maintenance
Revenue:
Total revenue	113,755	101,817	330,840	297,584
License
Revenue:
Total revenue	43,613	43,747	120,723	118,320
Cost of revenue:
Amortization of acquired technologies	$ 35,646	$ 36,061	$ 107,224	$ 108,974

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 4,393	$ (398)	$ 5,419	$ (87,323)
Other comprehensive income (loss):
Foreign currency translation adjustment	(54,446)	(10,520)	(60,994)	(36,089)
Other comprehensive income (loss)	(54,446)	(10,520)	(60,994)	(36,089)
Comprehensive income (loss)	$ (50,053)	$ (10,918)	$ (55,575)	$ (123,412)

Condensed Consolidated Statem_3

Condensed Consolidated Statements Stockholders' Equity and Redeemable Convertible Class A Common Stock and Stockholders' Deficit - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance at beginning of period (in shares) at Dec. 31, 2017		100,734,000
Balance at beginning of period at Dec. 31, 2017	$ (729,761)	$ 101	$ 0	$ 75,294	$ (805,156)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(36,089)			(36,089)
Net income (loss)	(87,323)				(87,323)
Comprehensive income (loss)	(123,412)
Exercise of stock options (in shares)		39,000
Exercise of stock options	13		13
Issuance of stock (in shares)		1,372,000
Issuance of stock	396	$ 1	395
Repurchase of stock (in shares)		(57,000)
Repurchase of stock	(472)		(472)
Accumulating dividends	(216,621)		(268)		(216,353)
Stock-based compensation	332		332
Balance at end of period (in shares) at Sep. 30, 2018		102,088,000
Balance at end of period at Sep. 30, 2018	$ (1,069,525)	$ 102	0	39,205	(1,108,832)
Balance at beginning of period (in shares) at Dec. 31, 2017	2,661,000
Balance at beginning of period at Dec. 31, 2017	$ 3,146,887
Increase (Decrease) in Temporary Equity [Roll Forward]
Repurchase of stock	17
Accumulating dividends	$ 216,621
Balance at end of period (in shares) at Sep. 30, 2018	2,661,000
Balance at end of period at Sep. 30, 2018	$ 3,363,491
Balance at beginning of period (in shares) at Jun. 30, 2018		102,061,000
Balance at beginning of period at Jun. 30, 2018	(983,741)	$ 102	0	49,725	(1,033,568)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(10,520)			(10,520)
Net income (loss)	(398)				(398)
Comprehensive income (loss)	(10,918)
Exercise of stock options (in shares)		37,000
Exercise of stock options	13		13
Issuance of stock (in shares)		35,000
Issuance of stock	17		17
Repurchase of stock (in shares)		(45,000)
Repurchase of stock	(448)		(448)
Accumulating dividends	(74,608)		258		(74,866)
Stock-based compensation	160		160
Balance at end of period (in shares) at Sep. 30, 2018		102,088,000
Balance at end of period at Sep. 30, 2018	$ (1,069,525)	$ 102	0	39,205	(1,108,832)
Balance at beginning of period (in shares) at Jun. 30, 2018	2,661,000
Balance at beginning of period at Jun. 30, 2018	$ 3,288,900
Increase (Decrease) in Temporary Equity [Roll Forward]
Repurchase of stock	17
Accumulating dividends	$ 74,608
Balance at end of period (in shares) at Sep. 30, 2018	2,661,000
Balance at end of period at Sep. 30, 2018	$ 3,363,491
Balance at beginning of period (in shares) at Dec. 31, 2018	304,942,415	304,942,000
Balance at beginning of period at Dec. 31, 2018	$ 2,616,100	$ 305	3,011,080	17,043	(412,328)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(60,994)			(60,994)
Net income (loss)	5,419				5,419
Comprehensive income (loss)	(55,575)
Exercise of stock options (in shares)		419,000
Exercise of stock options	422		422
Restricted stock units issued, net of shares withheld for taxes (in shares)		49,000
Restricted stock units issued, net of shares withheld for taxes	(285)		(285)
Issuance of stock (in shares)		1,544,000
Issuance of stock	813	$ 2	811
Issuance of stock under employee stock purchase plan (in shares)		75,000
Issuance of stock under employee stock purchase plan	1,080		1,080
Equity awards assumed in acquisition	595		595
Stock-based compensation	$ 24,142		24,142
Balance at end of period (in shares) at Sep. 30, 2019	307,029,150	307,029,000
Balance at end of period at Sep. 30, 2019	$ 2,593,559	$ 307	3,037,845	(43,951)	(400,642)
Balance at beginning of period (in shares) at Jun. 30, 2019		306,748,000
Balance at beginning of period at Jun. 30, 2019	2,633,616	$ 307	3,027,849	10,495	(405,035)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(54,446)			(54,446)
Net income (loss)	4,393				4,393
Comprehensive income (loss)	(50,053)
Exercise of stock options (in shares)		133,000
Exercise of stock options	165		165
Restricted stock units issued, net of shares withheld for taxes (in shares)		31,000
Restricted stock units issued, net of shares withheld for taxes	(184)		(184)
Issuance of stock (in shares)		42,000
Issuance of stock	25	$ 0	25
Issuance of stock under employee stock purchase plan (in shares)		75,000
Issuance of stock under employee stock purchase plan	1,080		1,080
Stock-based compensation	$ 8,910		8,910
Balance at end of period (in shares) at Sep. 30, 2019	307,029,150	307,029,000
Balance at end of period at Sep. 30, 2019	$ 2,593,559	$ 307	$ 3,037,845	$ (43,951)	$ (400,642)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income (loss)	$ 5,419	$ (87,323)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	196,687	193,903
Provision for doubtful accounts	1,494	1,991
Stock-based compensation expense	23,917	332
Amortization of debt issuance costs	6,915	9,272
Loss on extinguishment of debt	0	60,590
Deferred taxes	(29,692)	(14,085)
(Gain) loss on foreign currency exchange rates	(907)	12,747
Other non-cash expenses	58	1,451
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable	(781)	(13,963)
Income taxes receivable	129	(131)
Prepaid and other assets	(6,243)	(1,931)
Accounts payable	357	(3,958)
Accrued liabilities and other	(5,327)	9,745
Accrued interest payable	(28)	(10,516)
Income taxes payable	(2,356)	(16,112)
Deferred revenue	26,299	22,291
Other long-term liabilities	905	1,779
Net cash provided by operating activities	216,846	166,082
Cash flows from investing activities
Purchases of property and equipment	(10,606)	(12,794)
Purchases of intangible assets	(3,601)	(2,082)
Acquisitions, net of cash acquired	(349,504)	(60,578)
Proceeds from sale of cost method investment and other	4,174	10,715
Net cash used in investing activities	(359,537)	(64,739)
Cash flows from financing activities
Proceeds from issuance of common stock under employee stock purchase plan and incentive restricted stock	1,080	1,723
Repurchase of common stock and incentive restricted stock	(382)	(568)
Exercise of stock options	422	13
Premium paid on debt extinguishment	0	(22,725)
Proceeds from credit agreement	35,000	626,950
Repayments of borrowings from credit agreement	(49,925)	(694,925)
Payment of debt issuance costs	0	(5,561)
Payment for offering costs	0	(2,194)
Net cash used in financing activities	(13,805)	(97,287)
Effect of exchange rate changes on cash and cash equivalents	(5,064)	(3,439)
Net increase (decrease) in cash and cash equivalents	(161,560)	617
Cash and cash equivalents
Beginning of period	382,620	277,716
End of period	221,060	278,333
Supplemental disclosure of cash flow information
Cash paid for interest	77,478	114,148
Cash paid for income taxes	$ 35,643	$ 8,045

Organization and Nature of Oper

Organization and Nature of Operations	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Operations	Organization and Nature of OperationsSolarWinds Corporation, a Delaware corporation, and its subsidiaries (“Company”, “we,” “us” and “our”) is a leading provider of information technology, or IT, infrastructure management software. Our products give organizations worldwide, regardless of type, size or IT infrastructure complexity, the power to monitor and manage the performance of their IT environments, whether on-premise, in the cloud, or in hybrid infrastructure models. Our approach, which we refer to as the SolarWinds Model, combines powerful, scalable, affordable, easy to use products with high-velocity, low-touch sales. We’ve built our business to enable the technology professionals who use our products to manage “all things IT.” Our range of customers has expanded over time from network and systems engineers to a broad set of technology professionals, such as database administrators, storage administrators, web operators, developers and DevOps professionals, as well as managed service providers, or MSPs. Our SolarWinds Model enables us to sell our products for use in organizations ranging in size from very small businesses to large enterprises.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies We prepared our interim condensed consolidated financial statements in conformity with United States of America generally accepted accounting principles, or GAAP, and the reporting regulations of the Securities and Exchange Commission, or the SEC. They do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements include the accounts of SolarWinds Corporation and the accounts of its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018. With the exception of the changes in our revenue recognition and other related policies upon the adoption of new revenue accounting standard described below, there have been no material changes to our significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2018. See Recently Adopted Accounting Pronouncements below regarding the impact of the adoption of the new revenue accounting standard and Revenue Recognition for discussion of our updated revenue recognition policies. Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult and subjective judgments include: • the valuation of goodwill, intangibles, long-lived assets and contingent consideration; • revenue recognition; • stock-based compensation; • income taxes; and • loss contingencies. Recently Adopted Accounting Pronouncements On January 1, 2019 we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Codification ( “ ASC ” ) No. 2014-09 “Revenue from Contracts with Customers,” or ASC 606, which replaced all existing revenue guidance under ASC 605 “Revenue Recognition,” including prescriptive industry-specific guidance, or ASC 605. This standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted ASC 606 using the modified-retrospective method. Results for reporting periods beginning after January 1, 2019 are presented in compliance with the new revenue recognition standard ASC 606. Historical financial results for reporting periods prior to 2019 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard, ASC 605. These financial statements include additional information regarding the impacts from the adoption of the new revenue recognition standard on our financial results for the three and nine month periods ended September 30, 2019. This includes the presentation of financial results for the three and nine month periods ended September 30, 2019 under ASC 605 for comparison to the prior year period. The most significantly impacted areas are the following: • License and Recurring Revenue. The adoption of the new standard resulted in changes to the classification and timing of our revenue recognition. Under the new guidance, the requirement to establish VSOE to recognize license revenue separately from the other elements is eliminated. This change impacted the allocation of the transaction price and timing of our revenue recognition between deliverables, or performance obligations, within an arrangement. In addition, we now recognize time-based license revenue upon the transfer of the license and the associated maintenance revenue over the contract period under the new standard instead of recognizing both the license and maintenance revenue ratably over the contract period. The overall adoption impact to total revenue is immaterial, though we have experienced some changes to the timing and classification between license and recurring revenue. Additionally, some historical deferred revenue, primarily from arrangements involving time-based licenses, will never be recognized as revenue and instead has been recorded as a cumulative effect adjustment within accumulated deficit. • Contract Acquisition Costs. We expensed all sales commissions as incurred under the previous guidance. The new guidance requires the deferral and amortization of certain direct and incremental costs incurred to obtain a contract. This guidance requires us to capitalize and amortize certain sales commission costs over the remaining contractual term or over an expected period of benefit, which we have determined to be approximately four to six years . • Other Items. The impact of the adoption of the new standard on income taxes resulted in an increase of deferred income tax liabilities. The adoption of this standard did not impact our total operating cash flows. The cumulative effect of the changes made to our condensed consolidated balance sheet as of January 1, 2019 for the adoption of ASC 606 to all contracts with customers that were not completed as of December 31, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date as follows: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted (in thousands) Assets: Prepaid and other current assets (1) $ 16,267 $ 1,300 $ 17,567 Other assets, net (1) 11,382 3,857 15,239 Total assets (1) 5,194,649 5,157 5,199,806 Liabilities: Current portion of deferred revenue (2) 270,433 (2,338 ) 268,095 Deferred revenue, net of current portion (2) 25,699 (434 ) 25,265 Non-current deferred taxes 147,144 1,662 148,806 Total liabilities 2,578,549 (1,110 ) 2,577,439 Stockholders' equity (deficit): Accumulated deficit (412,328 ) 6,267 (406,061 ) _______ (1) Adjustment represents the impact of the adoption of ASC 606 on deferred contract acquisition costs related to the capitalization of certain sales commissions. See Deferred Commissions below for further discussion. (2) Adjustment represents the impact of the adoption of ASC 606 on our deferred revenue balances. See Deferred Revenue below for further discussion. The impact of adoption of ASC 606 on our condensed consolidated statement of operations and condensed consolidated balance sheet was as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 (in thousands) Revenue: Subscription $ 83,122 $ 12 $ 83,134 $ 233,467 $ 366 $ 233,833 Maintenance 113,755 298 114,053 330,840 777 331,617 Total recurring revenue 196,877 310 197,187 564,307 1,143 565,450 License 43,613 (1,161 ) 42,452 120,723 (1,825 ) 118,898 Total revenue $ 240,490 $ (851 ) $ 239,639 $ 685,030 $ (682 ) $ 684,348 Gross profit 175,704 (851 ) 174,853 494,910 (682 ) 494,228 Total operating expenses 141,285 1,361 142,646 400,366 3,952 404,318 Operating income (loss) 34,419 (2,212 ) 32,207 94,544 (4,634 ) 89,910 Net income (loss) $ 4,393 $ (2,212 ) $ 2,181 $ 5,419 $ (4,634 ) $ 785 September 30, 2019 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 (ASC 605) (in thousands) Assets: Prepaid and other current assets $ 24,108 $ (2,199 ) $ 21,909 Other assets, net 20,180 (6,971 ) 13,209 Total assets 5,156,076 (9,170 ) 5,146,906 Liabilities: Current portion of deferred revenue 293,365 2,885 296,250 Deferred revenue, net of current portion 30,706 599 31,305 Non-current deferred taxes 114,919 (1,662 ) 113,257 Total liabilities 2,562,517 1,822 2,564,339 Stockholders' equity (deficit): Accumulated deficit (400,642 ) (10,992 ) (411,634 ) Recent Accounting Pronouncements Not Yet Adopted Under the Jumpstart our Business Startups Act, or the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to non-public companies. As a result of the market value of our common stock held by non-affiliates on June 30, 2019, we will no longer qualify as an emerging growth company as of December 31, 2019 and can no longer take advantage of the extended transition period for adopting new or revised accounting standards. Accordingly, we have revised our planned adoption dates below from the non-public company effective dates to the public company effective dates. In February 2016, FASB issued an accounting standard to provide updated guidance requiring the recognition of all lease assets and liabilities on the balance sheet. The accounting standard required the use of a modified retrospective transition method. In July 2018, FASB issued additional guidance that provides entities with an optional transition method in which an entity can apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance retained earnings in the period of adoption. The updated accounting guidance is effective for public companies for interim and fiscal periods beginning after December 15, 2018. Early adoption is permitted and the standard provides for certain practical expedients. As we will lose our emerging growth company status as of December 31, 2019, we will retroactively adopt the updated guidance as of January 1, 2019 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The adoption of the new standard will result in leases currently designated as operating leases being reported on our consolidated balance sheet at their net present value, which will increase total assets and total liabilities. Our total undiscounted lease payments under non-cancellable operating leases was approximately $124.0 million as of December 31, 2018. The standard is not expected to have a material impact to our consolidated statement of operations or consolidated statement of cash flows. In January 2017, FASB issued an accounting standard to simplify the accounting for goodwill impairment. The new guidance removes step two of the two-step quantitative goodwill impairment test, which requires a hypothetical purchase price allocation. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2019 and may be adopted early for any interim or annual goodwill impairment tests performed after January 1, 2017. We expect to adopt the updated guidance in fiscal year 2020. We do not believe that this standard will have a material impact on our consolidated financial statements. Fair Value Measurements We apply the authoritative guidance on fair value measurements for financial assets and liabilities that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis. The guidance establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by us. Level 2: Inputs that are observable in the marketplace other than those inputs classified as Level 1. Level 3: Inputs that are unobservable in the marketplace and significant to the valuation. See Note 5. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis. The carrying amounts reported in our consolidated balance sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component are summarized below: Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) (in thousands) Balance at December 31, 2018 $ 17,043 $ 17,043 Other comprehensive gain (loss) before reclassification (60,994 ) (60,994 ) Amount reclassified from accumulated other comprehensive income (loss) — — Net current period other comprehensive income (loss) (60,994 ) (60,994 ) Balance at September 30, 2019 $ (43,951 ) $ (43,951 ) Revenue Recognition We generate recurring revenue from fees received for subscriptions and from the sale of maintenance services associated with our perpetual license products and license revenue from the sale of our perpetual license products. We recognize revenue related to contracts from customers when we transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is determined by following a five-step process which includes (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price, and (5) recognizing revenue when or as we satisfy a performance obligation, as described below. • Identify the contract with a customer. We generally use a purchase order, an authorized credit card, an electronic or manually signed license agreement, or the receipt of a cash payment as evidence of a contract with a customer provided that collection is considered probable. We sell our products through our direct sales force and through our distributors and resellers. Our distributors and resellers do not carry inventory of our software and we generally require them to specify the end user of the software at the time of the order. If the distributor or reseller does not provide end-user information, then we will generally not fulfill the order. Our distributors and resellers have no rights of return or exchange for software that they purchase from us and payment for these purchases is due to us without regard to whether the distributors or resellers collect payment from their customers. Sales through resellers and distributors are typically evidenced by a reseller or distributor agreement, together with purchase orders or authorized credit cards on a transaction-by-transaction basis. • Identify the performance obligations in the contract. Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are separately identifiable from other promises in the contract, or distinct. If not considered distinct, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Determining the distinct performance obligations in a contract requires judgment. Our performance obligations primarily include perpetual and time-based licenses, maintenance support including unspecified upgrades or enhancements to new versions of their software products and subscriptions to our software-as-a-service, or SaaS, offerings. See additional discussion of our performance obligations below. • Determine the transaction price. We determine the transaction price based on the contractual consideration and the amount of consideration we expect to receive in exchange for transferring the promised goods or services to the customer. We account for sales incentives to customers, resellers or distributors as a reduction of revenue at the time we recognize the revenue from the related product sale. We report revenue net of any sales tax collected. Our return policy generally does not allow our customers to return software products. • Allocate the transaction price. We allocate the transaction price of the contract to each distinct performance obligation based on a relative standalone selling price basis. Determining standalone selling prices for our performance obligations requires judgment and are based on multiple factors including, but not limited to historical selling prices and discounting practices for products and services, internal pricing policies and pricing practices in different regions and through different sales channels. For our subscription products and maintenance services, our standalone selling prices are generally observable using standalone sales or renewals. For our perpetual and time-based license products, we estimate our standalone selling prices utilizing the residual approach by considering our pricing and discounting practices. We review the standalone selling price for our performance obligations periodically and update, if needed, to ensure that the methodology utilized reflects our current pricing practices. • Recognize revenue when or as we satisfy a performance obligation. Revenue is recognized when or as performance obligations are satisfied either over time or at a point in time by transferring a promised good or service. We consider this transfer to have occurred when risk of loss transfers to the customer, reseller or distributor or the customer has access to their subscription which is generally upon electronic transfer of the license key or password that provides immediate availability of the product to the purchaser. See further discussion below regarding the timing of revenue recognition for each of our performance obligations. The following summarizes our performance obligations from which we generate revenue: Performance obligation When performance obligation is typically satisfied Subscription revenue SaaS offerings Over the subscription term, once the service is made available to the customer (over time) Time-based licenses Upon the delivery of the license key or password that provides immediate availability of the product (point in time) Time-based technical support and unspecified software upgrades Ratably over the contract period (over time) Maintenance revenue Technical support and unspecified software upgrades Ratably over the contract period (over time) License revenue Perpetual licenses Upon the delivery of the license key or password that provides immediate availability of the product (point in time) Recurring Revenue. Recurring revenue consists of subscription and maintenance revenue. • Subscription Revenue . We primarily derive subscription revenue from fees received for subscriptions to our SaaS offerings and our time-based license arrangements. We generally invoice subscription agreements monthly based on usage or in advance over the subscription period on either a monthly or annual basis. Subscription revenue for our SaaS offerings is generally recognized ratably over the subscription term once the service is made available to the customer or when we have the right to invoice for services performed. Revenue for the license performance obligation of our time-based license arrangements is recognized at a point in time upon delivery of the license key and the revenue for the technical support performance obligation of our time-based license arrangements is recognized ratably over the contract period. The amount of revenue related to the license performance obligations of our time-based license arrangements included in subscription revenue is less than 10% of our total consolidated revenue. Our subscription revenue includes our cloud application management, MSP and IT service management, or ITSM, products. • Maintenance Revenue . We derive maintenance revenue from the sale of maintenance services associated with our perpetual license products. We typically include one year of maintenance service as part of the initial purchase price of each perpetual software offering and then sell renewals of this maintenance agreement. Customers with maintenance agreements are entitled to receive technical support and unspecified upgrades or enhancements to new versions of their software products on a when-and-if-available basis for the specified contract period. We believe that our technical support and unspecified upgrades or enhancements performance obligations each have the same pattern of transfer to the customer and are therefore accounted for as a single distinct performance obligation. We recognize maintenance revenue ratably on a daily basis over the contract period. License Revenue . We derive license revenue from the sale of our perpetual licenses. Revenue for the license performance obligation of our perpetual license arrangements is recognized at a point in time upon delivery of the electronic license key. Perpetual license arrangements are invoiced upon delivery. Deferred Revenue Deferred revenue primarily consists of transaction prices allocated to remaining performance obligations from maintenance services associated with our perpetual license products which are delivered over time. We generally bill maintenance agreements annually in advance for services to be performed over a 12-month period. Customers have the option to purchase maintenance renewals for periods other than 12 months. We initially record the amounts allocated to maintenance performance obligations as deferred revenue and recognize these amounts ratably on a daily basis over the term of the maintenance agreement. We record deferred revenue that will be recognized during the succeeding 12-month period as current deferred revenue and the remaining portion is recorded as long-term deferred revenue. Details of our total deferred revenue balance was as follow s: Total Deferred Revenue (in thousands) Balance at December 31, 2018 $ 296,132 Adoption of ASC 606 (2,772 ) Deferred revenue recognized (327,701 ) Additional amounts deferred 349,665 Deferred revenue acquired in business combinations 8,747 Balance at September 30, 2019 $ 324,071 We expect to recognize revenue related to these remaining performance obligations as follows: Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years (in thousands) Expected recognition of deferred revenue $ 324,071 $ 293,365 $ 29,639 $ 1,067 Deferred Commissions Deferred commissions, which consist of direct and incremental sales commissions and related fringe benefits, are capitalized using the portfolio approach if we expect to benefit from those costs for more than one year. Deferred commissions are allocated to each performance obligation within the contract and amortized on a straight-line basis over the expected benefit period of the related performance obligations. We expense commissions as incurred when the expected amortization period is one year or less. Deferred commissions allocated to new maintenance arrangements and certain SaaS offerings are amortized over an average expected benefit period of approximately four to six years which was determined based on the expected life of our technology. Deferred commissions allocated to perpetual licenses, maintenance renewal arrangements and MSP offerings are expensed as incurred. Deferred commissions are classified as current or non-current assets based on the timing the expense will be recognized. The current and non-current portions of our deferred commissions are included in prepaid and other current assets and other assets, net respectively, in our condensed consolidated balance sheets. The amortization of our deferred commissions is included in sales and marketing expense in our condensed consolidated statement of operations. Details of our deferred commissions balance was as follow s: Deferred Commissions (in thousands) Balance at December 31, 2018 $ — Adoption of ASC 606 5,157 Commissions capitalized 5,706 Amortization recognized (1,693 ) Balance at September 30, 2019 $ 9,170 Classified as: Current $ 2,199 Non-current 6,971 Total deferred commissions $ 9,170 Cost of Revenue Amortization of Acquired Technologies. Amortization of acquired technologies included in cost of revenue relate to our licensed products and subscription products as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Amortization of acquired license technologies $ 35,646 $ 36,061 $ 107,224 $ 108,974 Amortization of acquired subscription technologies 8,526 7,774 24,737 23,147 Total amortization of acquired technologies $ 44,172 $ 43,835 $ 131,961 $ 132,121

Acquisition

Acquisition	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Acquisitions	3. Acquisition On April 30, 2019, we acquired SAManage Ltd., or Samanage, an IT service desk solution company, for approximately $342.1 million , including $341.5 million paid in cash and $0.6 million in fair value of replacement equity awards attributable to pre-acquisition service. By acquiring Samanage, we entered the ITSM market and based on the acquired technology introduced the SaaS-based service desk solution, SolarWinds Service Desk, into our product portfolio. We funded the transaction with cash on hand and $35.0 million of borrowings under our Revolving Credit Facility. We incurred $2.0 million in acquisition related costs, which are included in general and administrative expense for the nine months ended September 30, 2019 . Goodwill for this acquisition is not deductible for tax purposes. The initial determination of the fair value of the assets acquired and liabilities assumed is based on a preliminary valuation and the estimates and assumptions for these items are subject to change as we obtain additional information during the measurement period. Subsequent changes to the purchase price or other fair value adjustments determined during the measurement period will be recorded as an adjustment to goodwill. Measurement period adjustments for the three months ended September 30, 2019 resulted in a decrease in goodwill of $13.7 million primarily related to adjustments to the fair value of the Samanage identifiable intangible assets acquired. We may have additional measurement period adjustments as we finalize the fair value of certain assets acquired and liabilities assumed. The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed: Total Fair Value (in thousands) Current assets, including cash acquired of $6.2 million $ 18,957 Property and equipment and other assets 428 Identifiable intangible assets 49,700 Goodwill 286,208 Current liabilities (2,230 ) Other long-term liabilities (2,288 ) Deferred revenue (8,713 ) Total consideration $ 342,062 The following table summarizes the fair value of the acquired identifiable intangible assets and weighted-average useful life: Fair Value Weighted-average useful life (in thousands) (in years) Developed product technologies $ 26,900 5 Customer relationships 22,800 4 Total identifiable intangible assets $ 49,700 We estimate the amounts of revenue and net loss related to the Samanage acquisition included in our condensed consolidated financial statements from the effective date of the acquisition are insignificant for the nine months ended September 30, 2019 . Pro forma information for the acquisition has not been provided because the impact of the historical financials on our revenue, net income (loss) and net income (loss) per share is not material. We recognize revenue on the acquired products in accordance with our revenue recognition policy as described above in Note 2. Summary of Significant Accounting Policies .

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The following table reflects the changes in goodwill for the nine months ended September 30, 2019 : (in thousands) Balance at December 31, 2018 $ 3,683,961 Acquisitions 297,466 Foreign currency translation and other adjustments (51,825 ) Balance at September 30, 2019 $ 3,929,602 The goodwill from acquisitions resulted primarily from our expectations that we will now be able to offer our customers additional products in new markets. Additionally, we expect the acquisitions will attract new customers for our entire line of products.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements As of September 30, 2019 , we had no financial assets that were measured at fair value on a recurring basis. The following table summarizes the fair value of our financial assets that were measured on a recurring basis as of December 31, 2018 . There have been no transfers between fair value measurement levels during the nine months ended September 30, 2019 . Fair Value Measurements at December 31, 2018 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Money market funds $ 117,100 $ — $ — $ 117,100 As of September 30, 2019 and December 31, 2018 , the carrying value of our long-term debt approximates its estimated fair value as the interest rate on the debt agreements is adjusted for changes in the market rates. See Note 6. Debt

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt	6. Debt The following table summarizes information relating to our debt: September 30, December 31, 2019 2018 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2024 1,955,175 4.79 % 1,970,100 5.27 % Total principal amount 1,955,175 1,970,100 Unamortized discount and debt issuance costs (39,213 ) (46,128 ) Total debt 1,915,962 1,923,972 Less: Current portion of long-term debt (19,900 ) (19,900 ) Total long-term debt $ 1,896,062 $ 1,904,072 Senior Secured First Lien Credit Facilities The First Lien Credit Agreement provides for senior secured first lien credit facilities, consisting of the following as of September 30, 2019 : • a $1.99 billion First Lien Term Loan with a final maturity date of February 5, 2024; and • a $125.0 million revolving credit facility (with a letter of credit sub-facility in the amount of $35.0 million ), or the Revolving Credit Facility, consisting of (i) a $100.0 million multicurrency tranche and (ii) a $25.0 million tranche available only in U.S. dollars, of which $7.5 million has a final maturity date of February 5, 2021 and $17.5 million has a final maturity date of February 5, 2022. Prior to the completion of our initial public offering, or IPO, in October 2018, borrowings under our Revolving Credit Facility bore interest at a floating rate which was, at our option, either (1) a Eurodollar rate for a specified interest period plus an applicable margin of 3.00% or (2) a base rate plus an applicable margin of 2.00% . Upon completion of our IPO, the applicable margins for Eurodollar rate and base rate borrowings were reduced to 2.50% , and 1.50% , respectively. The Eurodollar rate applicable to the Revolving Credit Facility is subject to a “floor” of 0.0% . Prior to the completion of our IPO, borrowings under our First Lien Term Loan bore interest at a floating rate which was, at our option, either (1) a Eurodollar rate for a specified interest period plus an applicable margin of 3.00% or (2) a base rate plus an applicable margin of 2.00% . Upon completion of our IPO, the applicable margins for Eurodollar and base rate borrowings were each reduced to 2.75% and 1.75% , respectively. The Eurodollar rate applicable to the First Lien Term Loan is subject to a “floor” of 0.0% . The Eurodollar rate is equal to an adjusted London Interbank Offered Rate, or LIBOR, for a one -, two -, three - or six -month interest period with a LIBOR floor of 0% . The base rate for any day is a fluctuating rate per annum equal to the highest of (a) the rate of interest in effect for such day as publicly announced by Credit Suisse as its “prime rate” and (b) the federal funds effective rate in effect on such day plus 0.50% and (c) the one-month adjusted LIBOR plus 1.0% per annum. The First Lien Term Loan requires equal quarterly repayments equal to 0.25% of the original principal amount. In addition to paying interest on loans outstanding under the Revolving Credit Facility and the First Lien Term Loan, we are required to pay a commitment fee of 0.50% per annum of unused commitments under the Revolving Credit Facility. The commitment fee is subject to a reduction to 0.375% per annum based on our first lien net leverage ratio. The First Lien Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, our ability to: incur additional indebtedness; incur liens; engage in mergers, consolidations, liquidations or dissolutions; pay dividends and distributions on, or redeem, repurchase or retire our capital stock; and make certain investments, acquisitions, loans, or advances. In addition, the terms of the First Lien Credit Agreement include a financial covenant which requires that, at the end of each fiscal quarter, if the aggregate amount of borrowings under the Revolving Credit Facility exceeds 35% of the aggregate commitments under the Revolving Credit Facility, our first lien net leverage ratio cannot exceed 7.40 to 1.00 . The First Lien Credit Agreement also contains certain customary representations and warranties, affirmative covenants and events of default. As of September 30, 2019 , we were in compliance with all covenants of the First Lien Credit Agreement. In April 2019, we borrowed $35.0 million

Redeemable Convertible Class A

Redeemable Convertible Class A Common Stock	9 Months Ended
	Sep. 30, 2019
Temporary Equity Disclosure [Abstract]
Redeemable Convertible Class A Common Stock	7. Redeemable Convertible Class A Common Stock Prior to the conversion of Class A Common Stock into common stock at our IPO in October 2018, our Class A Common Stock accrued dividends at a rate of 9% per annum and had a liquidation preference equal to $1,000 per share plus any accrued and unpaid dividends. Immediately prior to the completion of our IPO, we converted each outstanding share of our Class A Common Stock into 140,053,370 shares of common stock, which was equal to the result of the liquidation value of such share of Class A Common Stock, divided by $19.00 per share. The liquidation value for each share of Class A Common Stock was equal to $1,000 . At the time of the conversion of the Class A Common Stock, we converted $717.4 million of accrued and unpaid dividends on the Class A Common Stock into 37,758,109 shares of common stock equal to the result of the accrued and unpaid dividends on each share of Class A Common Stock, divided by $19.00

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	8. Earnings (Loss) Per Share A reconciliation of the number of shares in the calculation of basic and diluted earnings (loss) per share follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Basic earnings (loss) per share Numerator: Net income (loss) $ 4,393 $ (398 ) $ 5,419 $ (87,323 ) Accretion of dividends on Class A common stock — (74,608 ) — (216,621 ) Earnings allocated to unvested restricted stock (43 ) — (60 ) — Net income (loss) available to common stockholders $ 4,350 $ (75,006 ) $ 5,359 $ (303,944 ) Denominator: Weighted-average common shares outstanding used in computing basic earnings (loss) per share 306,890 102,078 306,381 101,915 Diluted earnings (loss) per share Numerator: Net income (loss) available to common stockholders $ 4,350 $ (75,006 ) $ 5,359 $ (303,944 ) Denominator: Weighted-average shares used in computing basic earnings (loss) per share 306,890 102,078 306,381 101,915 Add dilutive impact of employee equity plans 4,212 — 4,226 — Weighted-average shares used in computing diluted earnings (loss) per share 311,102 102,078 310,607 101,915 The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted earnings (loss) per share attributable to common stockholders for the periods presented because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Stock options to purchase common stock 286 2,782 322 2,525 Performance-based stock options to purchase common stock 125 316 127 267 Non-vested restricted stock incentive awards 2,147 3,512 2,439 3,435 Performance-based non-vested restricted stock incentive awards 899 1,537 1,031 1,566 Restricted stock units 5,498 — 4,948 — Performance stock units 918 — 920 — Employee stock purchase plan 127 — 63 — Total anti-dilutive shares 10,000 8,147 9,850 7,793 Prior to the conversion at the IPO, Class A Common Stock was not included in the basic or diluted earnings (loss) per share calculations as it was contingently convertible upon a future event. See Note 7. Redeemable Convertible Class A Common Stock

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes For the three months ended September 30, 2019 and 2018 , we recorded income tax expense of $2.9 million and income tax benefit of $0.1 million , respectively, resulting in an effective tax rate of 39.7% and 24.0% , respectively. For the nine months ended September 30, 2019 and 2018 , we recorded income tax expense of $6.7 million and income tax benefit of $20.0 million , respectively, resulting in an effective tax rate of 55.1% and 18.7% , respectively. The increase in the effective tax rate for the three and nine months ended September 30, 2019 compared to the same period in 2018 was primarily due to the impact of having a full valuation allowance against the deferred tax assets related to the current period losses from the recent Samanage acquisition. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. At September 30, 2019 , we had accrued interest and penalties related to unrecognized tax benefits of approximately $5.0 million . We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2011 through 2018 tax years generally remain open and subject to examination by federal tax authorities. The 2011 through 2018 tax years generally remain open and subject to examination by the state tax authorities and foreign tax authorities. We are currently under examination by the IRS for the tax years 2011 through the period ending February 2016. We are under audit by the Indian Tax Authority for the 2014 and 2017 tax years. We are currently under audit by the California Franchise Tax Board for the 2012 through 2014 tax years. We were notified in January 2019 that the Massachusetts Department of Revenue would audit the 2015 through February 2016 tax years. We are not currently under audit in any other taxing jurisdictions. On July 27, 2015 in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation in an intercompany cost sharing arrangement. In February 2016, the U.S. Internal Revenue Service appealed the decision to the U.S. Court of Appeals for the Ninth Circuit. On June 7, 2019, the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court. On July 22, 2019, Altera Corp. filed a petition for a rehearing before the full Ninth Circuit. As of September 30, 2019, we have not recorded any benefit or expense. We will continue to monitor ongoing developments and potential impacts to our consolidated financial statements.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Legal Proceedings From time to time, we have been and may be involved in various legal proceedings arising in our ordinary course of business. In the opinion of management, resolution of any pending claims (either individually or in the aggregate) is not expected to have a material adverse impact on our consolidated financial statements, cash flows or financial position and it is not possible to provide an estimated amount of any such loss. However, the outcome of disputes is inherently uncertain. Therefore, although management considers the likelihood of such an outcome to be remote, an unfavorable resolution of one or more matters could materially affect our future results of operations or cash flows, or both, in a particular period.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Accounting	We prepared our interim condensed consolidated financial statements in conformity with United States of America generally accepted accounting principles, or GAAP, and the reporting regulations of the Securities and Exchange Commission, or the SEC. They do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements include the accounts of SolarWinds Corporation and the accounts of its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. The interim financial information is unaudited, but reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The actual results that we experience may differ materially from our estimates. The accounting estimates that require our most significant, difficult and subjective judgments include: • the valuation of goodwill, intangibles, long-lived assets and contingent consideration; • revenue recognition; • stock-based compensation; • income taxes; and • loss contingencies.
Recently Adopted Accounting Pronouncements and Not Yet Adopted	Under the Jumpstart our Business Startups Act, or the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to non-public companies. As a result of the market value of our common stock held by non-affiliates on June 30, 2019, we will no longer qualify as an emerging growth company as of December 31, 2019 and can no longer take advantage of the extended transition period for adopting new or revised accounting standards. Accordingly, we have revised our planned adoption dates below from the non-public company effective dates to the public company effective dates. In February 2016, FASB issued an accounting standard to provide updated guidance requiring the recognition of all lease assets and liabilities on the balance sheet. The accounting standard required the use of a modified retrospective transition method. In July 2018, FASB issued additional guidance that provides entities with an optional transition method in which an entity can apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance retained earnings in the period of adoption. The updated accounting guidance is effective for public companies for interim and fiscal periods beginning after December 15, 2018. Early adoption is permitted and the standard provides for certain practical expedients. As we will lose our emerging growth company status as of December 31, 2019, we will retroactively adopt the updated guidance as of January 1, 2019 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The adoption of the new standard will result in leases currently designated as operating leases being reported on our consolidated balance sheet at their net present value, which will increase total assets and total liabilities. Our total undiscounted lease payments under non-cancellable operating leases was approximately $124.0 million as of December 31, 2018. The standard is not expected to have a material impact to our consolidated statement of operations or consolidated statement of cash flows. In January 2017, FASB issued an accounting standard to simplify the accounting for goodwill impairment. The new guidance removes step two of the two-step quantitative goodwill impairment test, which requires a hypothetical purchase price allocation. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2019 and may be adopted early for any interim or annual goodwill impairment tests performed after January 1, 2017. We expect to adopt the updated guidance in fiscal year 2020. We do not believe that this standard will have a material impact on our consolidated financial statements. On January 1, 2019 we adopted the Financial Accounting Standards Board, or FASB, Accounting Standards Codification ( “ ASC ” ) No. 2014-09 “Revenue from Contracts with Customers,” or ASC 606, which replaced all existing revenue guidance under ASC 605 “Revenue Recognition,” including prescriptive industry-specific guidance, or ASC 605. This standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted ASC 606 using the modified-retrospective method. Results for reporting periods beginning after January 1, 2019 are presented in compliance with the new revenue recognition standard ASC 606. Historical financial results for reporting periods prior to 2019 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard, ASC 605. These financial statements include additional information regarding the impacts from the adoption of the new revenue recognition standard on our financial results for the three and nine month periods ended September 30, 2019. This includes the presentation of financial results for the three and nine month periods ended September 30, 2019 under ASC 605 for comparison to the prior year period. The most significantly impacted areas are the following: • License and Recurring Revenue. The adoption of the new standard resulted in changes to the classification and timing of our revenue recognition. Under the new guidance, the requirement to establish VSOE to recognize license revenue separately from the other elements is eliminated. This change impacted the allocation of the transaction price and timing of our revenue recognition between deliverables, or performance obligations, within an arrangement. In addition, we now recognize time-based license revenue upon the transfer of the license and the associated maintenance revenue over the contract period under the new standard instead of recognizing both the license and maintenance revenue ratably over the contract period. The overall adoption impact to total revenue is immaterial, though we have experienced some changes to the timing and classification between license and recurring revenue. Additionally, some historical deferred revenue, primarily from arrangements involving time-based licenses, will never be recognized as revenue and instead has been recorded as a cumulative effect adjustment within accumulated deficit. • Contract Acquisition Costs. We expensed all sales commissions as incurred under the previous guidance. The new guidance requires the deferral and amortization of certain direct and incremental costs incurred to obtain a contract. This guidance requires us to capitalize and amortize certain sales commission costs over the remaining contractual term or over an expected period of benefit, which we have determined to be approximately four to six years . • Other Items. The impact of the adoption of the new standard on income taxes resulted in an increase of deferred income tax liabilities. The adoption of this standard did not impact our total operating cash flows. The cumulative effect of the changes made to our condensed consolidated balance sheet as of January 1, 2019 for the adoption of ASC 606 to all contracts with customers that were not completed as of December 31, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date as follows: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted (in thousands) Assets: Prepaid and other current assets (1) $ 16,267 $ 1,300 $ 17,567 Other assets, net (1) 11,382 3,857 15,239 Total assets (1) 5,194,649 5,157 5,199,806 Liabilities: Current portion of deferred revenue (2) 270,433 (2,338 ) 268,095 Deferred revenue, net of current portion (2) 25,699 (434 ) 25,265 Non-current deferred taxes 147,144 1,662 148,806 Total liabilities 2,578,549 (1,110 ) 2,577,439 Stockholders' equity (deficit): Accumulated deficit (412,328 ) 6,267 (406,061 ) _______ (1) Adjustment represents the impact of the adoption of ASC 606 on deferred contract acquisition costs related to the capitalization of certain sales commissions. See Deferred Commissions below for further discussion. (2) Adjustment represents the impact of the adoption of ASC 606 on our deferred revenue balances. See Deferred Revenue below for further discussion. The impact of adoption of ASC 606 on our condensed consolidated statement of operations and condensed consolidated balance sheet was as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 (in thousands) Revenue: Subscription $ 83,122 $ 12 $ 83,134 $ 233,467 $ 366 $ 233,833 Maintenance 113,755 298 114,053 330,840 777 331,617 Total recurring revenue 196,877 310 197,187 564,307 1,143 565,450 License 43,613 (1,161 ) 42,452 120,723 (1,825 ) 118,898 Total revenue $ 240,490 $ (851 ) $ 239,639 $ 685,030 $ (682 ) $ 684,348 Gross profit 175,704 (851 ) 174,853 494,910 (682 ) 494,228 Total operating expenses 141,285 1,361 142,646 400,366 3,952 404,318 Operating income (loss) 34,419 (2,212 ) 32,207 94,544 (4,634 ) 89,910 Net income (loss) $ 4,393 $ (2,212 ) $ 2,181 $ 5,419 $ (4,634 ) $ 785 September 30, 2019 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 (ASC 605) (in thousands) Assets: Prepaid and other current assets $ 24,108 $ (2,199 ) $ 21,909 Other assets, net 20,180 (6,971 ) 13,209 Total assets 5,156,076 (9,170 ) 5,146,906 Liabilities: Current portion of deferred revenue 293,365 2,885 296,250 Deferred revenue, net of current portion 30,706 599 31,305 Non-current deferred taxes 114,919 (1,662 ) 113,257 Total liabilities 2,562,517 1,822 2,564,339 Stockholders' equity (deficit): Accumulated deficit (400,642 ) (10,992 ) (411,634 )
Fair Value Measurements	We apply the authoritative guidance on fair value measurements for financial assets and liabilities that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis. The guidance establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by us. Level 2: Inputs that are observable in the marketplace other than those inputs classified as Level 1. Level 3: Inputs that are unobservable in the marketplace and significant to the valuation. See Note 5. Fair Value Measurements for a summary of our financial instruments accounted for at fair value on a recurring basis. The carrying amounts reported in our consolidated balance sheets for cash, accounts receivable, accounts payable and other accrued expenses approximate fair value due to relatively short periods to maturity.
Revenue Recognition	We generate recurring revenue from fees received for subscriptions and from the sale of maintenance services associated with our perpetual license products and license revenue from the sale of our perpetual license products. We recognize revenue related to contracts from customers when we transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is determined by following a five-step process which includes (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price, and (5) recognizing revenue when or as we satisfy a performance obligation, as described below. • Identify the contract with a customer. We generally use a purchase order, an authorized credit card, an electronic or manually signed license agreement, or the receipt of a cash payment as evidence of a contract with a customer provided that collection is considered probable. We sell our products through our direct sales force and through our distributors and resellers. Our distributors and resellers do not carry inventory of our software and we generally require them to specify the end user of the software at the time of the order. If the distributor or reseller does not provide end-user information, then we will generally not fulfill the order. Our distributors and resellers have no rights of return or exchange for software that they purchase from us and payment for these purchases is due to us without regard to whether the distributors or resellers collect payment from their customers. Sales through resellers and distributors are typically evidenced by a reseller or distributor agreement, together with purchase orders or authorized credit cards on a transaction-by-transaction basis. • Identify the performance obligations in the contract. Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are separately identifiable from other promises in the contract, or distinct. If not considered distinct, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Determining the distinct performance obligations in a contract requires judgment. Our performance obligations primarily include perpetual and time-based licenses, maintenance support including unspecified upgrades or enhancements to new versions of their software products and subscriptions to our software-as-a-service, or SaaS, offerings. See additional discussion of our performance obligations below. • Determine the transaction price. We determine the transaction price based on the contractual consideration and the amount of consideration we expect to receive in exchange for transferring the promised goods or services to the customer. We account for sales incentives to customers, resellers or distributors as a reduction of revenue at the time we recognize the revenue from the related product sale. We report revenue net of any sales tax collected. Our return policy generally does not allow our customers to return software products. • Allocate the transaction price. We allocate the transaction price of the contract to each distinct performance obligation based on a relative standalone selling price basis. Determining standalone selling prices for our performance obligations requires judgment and are based on multiple factors including, but not limited to historical selling prices and discounting practices for products and services, internal pricing policies and pricing practices in different regions and through different sales channels. For our subscription products and maintenance services, our standalone selling prices are generally observable using standalone sales or renewals. For our perpetual and time-based license products, we estimate our standalone selling prices utilizing the residual approach by considering our pricing and discounting practices. We review the standalone selling price for our performance obligations periodically and update, if needed, to ensure that the methodology utilized reflects our current pricing practices. • Recognize revenue when or as we satisfy a performance obligation. Revenue is recognized when or as performance obligations are satisfied either over time or at a point in time by transferring a promised good or service. We consider this transfer to have occurred when risk of loss transfers to the customer, reseller or distributor or the customer has access to their subscription which is generally upon electronic transfer of the license key or password that provides immediate availability of the product to the purchaser. See further discussion below regarding the timing of revenue recognition for each of our performance obligations. The following summarizes our performance obligations from which we generate revenue: Performance obligation When performance obligation is typically satisfied Subscription revenue SaaS offerings Over the subscription term, once the service is made available to the customer (over time) Time-based licenses Upon the delivery of the license key or password that provides immediate availability of the product (point in time) Time-based technical support and unspecified software upgrades Ratably over the contract period (over time) Maintenance revenue Technical support and unspecified software upgrades Ratably over the contract period (over time) License revenue Perpetual licenses Upon the delivery of the license key or password that provides immediate availability of the product (point in time) Recurring Revenue. Recurring revenue consists of subscription and maintenance revenue. • Subscription Revenue . We primarily derive subscription revenue from fees received for subscriptions to our SaaS offerings and our time-based license arrangements. We generally invoice subscription agreements monthly based on usage or in advance over the subscription period on either a monthly or annual basis. Subscription revenue for our SaaS offerings is generally recognized ratably over the subscription term once the service is made available to the customer or when we have the right to invoice for services performed. Revenue for the license performance obligation of our time-based license arrangements is recognized at a point in time upon delivery of the license key and the revenue for the technical support performance obligation of our time-based license arrangements is recognized ratably over the contract period. The amount of revenue related to the license performance obligations of our time-based license arrangements included in subscription revenue is less than 10% of our total consolidated revenue. Our subscription revenue includes our cloud application management, MSP and IT service management, or ITSM, products. • Maintenance Revenue . We derive maintenance revenue from the sale of maintenance services associated with our perpetual license products. We typically include one year of maintenance service as part of the initial purchase price of each perpetual software offering and then sell renewals of this maintenance agreement. Customers with maintenance agreements are entitled to receive technical support and unspecified upgrades or enhancements to new versions of their software products on a when-and-if-available basis for the specified contract period. We believe that our technical support and unspecified upgrades or enhancements performance obligations each have the same pattern of transfer to the customer and are therefore accounted for as a single distinct performance obligation. We recognize maintenance revenue ratably on a daily basis over the contract period. License Revenue . We derive license revenue from the sale of our perpetual licenses. Revenue for the license performance obligation of our perpetual license arrangements is recognized at a point in time upon delivery of the electronic license key. Perpetual license arrangements are invoiced upon delivery. Deferred commissions, which consist of direct and incremental sales commissions and related fringe benefits, are capitalized using the portfolio approach if we expect to benefit from those costs for more than one year. Deferred commissions are allocated to each performance obligation within the contract and amortized on a straight-line basis over the expected benefit period of the related performance obligations. We expense commissions as incurred when the expected amortization period is one year or less. Deferred commissions allocated to new maintenance arrangements and certain SaaS offerings are amortized over an average expected benefit period of approximately four to six years which was determined based on the expected life of our technology. Deferred commissions allocated to perpetual licenses, maintenance renewal arrangements and MSP offerings are expensed as incurred. Deferred commissions are classified as current or non-current assets based on the timing the expense will be recognized. The current and non-current portions of our deferred commissions are included in prepaid and other current assets and other assets, net respectively, in our condensed consolidated balance sheets. The amortization of our deferred commissions is included in sales and marketing expense in our condensed consolidated statement of operations. Deferred revenue primarily consists of transaction prices allocated to remaining performance obligations from maintenance services associated with our perpetual license products which are delivered over time. We generally bill maintenance agreements annually in advance for services to be performed over a 12-month period. Customers have the option to purchase maintenance renewals for periods other than 12 months. We initially record the amounts allocated to maintenance performance obligations as deferred revenue and recognize these amounts ratably on a daily basis over the term of the maintenance agreement. We record deferred revenue that will be recognized during the succeeding 12-month period as current deferred revenue and the remaining portion is recorded as long-term deferred revenue.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Adjustment to accumulated deficit	The impact of adoption of ASC 606 on our condensed consolidated statement of operations and condensed consolidated balance sheet was as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 (in thousands) Revenue: Subscription $ 83,122 $ 12 $ 83,134 $ 233,467 $ 366 $ 233,833 Maintenance 113,755 298 114,053 330,840 777 331,617 Total recurring revenue 196,877 310 197,187 564,307 1,143 565,450 License 43,613 (1,161 ) 42,452 120,723 (1,825 ) 118,898 Total revenue $ 240,490 $ (851 ) $ 239,639 $ 685,030 $ (682 ) $ 684,348 Gross profit 175,704 (851 ) 174,853 494,910 (682 ) 494,228 Total operating expenses 141,285 1,361 142,646 400,366 3,952 404,318 Operating income (loss) 34,419 (2,212 ) 32,207 94,544 (4,634 ) 89,910 Net income (loss) $ 4,393 $ (2,212 ) $ 2,181 $ 5,419 $ (4,634 ) $ 785 September 30, 2019 As reported ASC 606 ASC 606 impact Without adoption of ASC 606 (ASC 605) (in thousands) Assets: Prepaid and other current assets $ 24,108 $ (2,199 ) $ 21,909 Other assets, net 20,180 (6,971 ) 13,209 Total assets 5,156,076 (9,170 ) 5,146,906 Liabilities: Current portion of deferred revenue 293,365 2,885 296,250 Deferred revenue, net of current portion 30,706 599 31,305 Non-current deferred taxes 114,919 (1,662 ) 113,257 Total liabilities 2,562,517 1,822 2,564,339 Stockholders' equity (deficit): Accumulated deficit (400,642 ) (10,992 ) (411,634 ) The cumulative effect of the changes made to our condensed consolidated balance sheet as of January 1, 2019 for the adoption of ASC 606 to all contracts with customers that were not completed as of December 31, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date as follows: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted (in thousands) Assets: Prepaid and other current assets (1) $ 16,267 $ 1,300 $ 17,567 Other assets, net (1) 11,382 3,857 15,239 Total assets (1) 5,194,649 5,157 5,199,806 Liabilities: Current portion of deferred revenue (2) 270,433 (2,338 ) 268,095 Deferred revenue, net of current portion (2) 25,699 (434 ) 25,265 Non-current deferred taxes 147,144 1,662 148,806 Total liabilities 2,578,549 (1,110 ) 2,577,439 Stockholders' equity (deficit): Accumulated deficit (412,328 ) 6,267 (406,061 ) _______ (1) Adjustment represents the impact of the adoption of ASC 606 on deferred contract acquisition costs related to the capitalization of certain sales commissions. See Deferred Commissions below for further discussion. (2) Adjustment represents the impact of the adoption of ASC 606 on our deferred revenue balances. See Deferred Revenue below for further discussion.
Changes in accumulated other comprehensive income (loss) by component	Changes in accumulated other comprehensive income (loss) by component are summarized below: Foreign Currency Translation Adjustments Accumulated Other Comprehensive Income (Loss) (in thousands) Balance at December 31, 2018 $ 17,043 $ 17,043 Other comprehensive gain (loss) before reclassification (60,994 ) (60,994 ) Amount reclassified from accumulated other comprehensive income (loss) — — Net current period other comprehensive income (loss) (60,994 ) (60,994 ) Balance at September 30, 2019 $ (43,951 ) $ (43,951 )
Performance obligation from which revenue is generated	The following summarizes our performance obligations from which we generate revenue: Performance obligation When performance obligation is typically satisfied Subscription revenue SaaS offerings Over the subscription term, once the service is made available to the customer (over time) Time-based licenses Upon the delivery of the license key or password that provides immediate availability of the product (point in time) Time-based technical support and unspecified software upgrades Ratably over the contract period (over time) Maintenance revenue Technical support and unspecified software upgrades Ratably over the contract period (over time) License revenue Perpetual licenses Upon the delivery of the license key or password that provides immediate availability of the product (point in time)
Details of total deferred revenue balance	Details of our total deferred revenue balance was as follow s: Total Deferred Revenue (in thousands) Balance at December 31, 2018 $ 296,132 Adoption of ASC 606 (2,772 ) Deferred revenue recognized (327,701 ) Additional amounts deferred 349,665 Deferred revenue acquired in business combinations 8,747 Balance at September 30, 2019 $ 324,071
Remaining performance obligations for revenue recognition	We expect to recognize revenue related to these remaining performance obligations as follows: Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years (in thousands) Expected recognition of deferred revenue $ 324,071 $ 293,365 $ 29,639 $ 1,067
Details of contract acquisition cost	Details of our deferred commissions balance was as follow s: Deferred Commissions (in thousands) Balance at December 31, 2018 $ — Adoption of ASC 606 5,157 Commissions capitalized 5,706 Amortization recognized (1,693 ) Balance at September 30, 2019 $ 9,170 Classified as: Current $ 2,199 Non-current 6,971 Total deferred commissions $ 9,170
Amortization of acquired technologies	Amortization of Acquired Technologies. Amortization of acquired technologies included in cost of revenue relate to our licensed products and subscription products as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Amortization of acquired license technologies $ 35,646 $ 36,061 $ 107,224 $ 108,974 Amortization of acquired subscription technologies 8,526 7,774 24,737 23,147 Total amortization of acquired technologies $ 44,172 $ 43,835 $ 131,961 $ 132,121

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Summary of consideration paid and amounts recognized for assets acquired and liabilities assumed	The following table summarizes the consideration paid and the amounts recognized for the assets acquired and liabilities assumed: Total Fair Value (in thousands) Current assets, including cash acquired of $6.2 million $ 18,957 Property and equipment and other assets 428 Identifiable intangible assets 49,700 Goodwill 286,208 Current liabilities (2,230 ) Other long-term liabilities (2,288 ) Deferred revenue (8,713 ) Total consideration $ 342,062
Summary of fair value of acquired identifiable intangible assets and weighted-average useful life	The following table summarizes the fair value of the acquired identifiable intangible assets and weighted-average useful life: Fair Value Weighted-average useful life (in thousands) (in years) Developed product technologies $ 26,900 5 Customer relationships 22,800 4 Total identifiable intangible assets $ 49,700

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table reflects the changes in goodwill for the nine months ended September 30, 2019 : (in thousands) Balance at December 31, 2018 $ 3,683,961 Acquisitions 297,466 Foreign currency translation and other adjustments (51,825 ) Balance at September 30, 2019 $ 3,929,602

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair value of financial assets measured on a recurring basis	The following table summarizes the fair value of our financial assets that were measured on a recurring basis as of December 31, 2018 . There have been no transfers between fair value measurement levels during the nine months ended September 30, 2019 . Fair Value Measurements at December 31, 2018 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Money market funds $ 117,100 $ — $ — $ 117,100

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Summary of debt	The following table summarizes information relating to our debt: September 30, December 31, 2019 2018 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2024 1,955,175 4.79 % 1,970,100 5.27 % Total principal amount 1,955,175 1,970,100 Unamortized discount and debt issuance costs (39,213 ) (46,128 ) Total debt 1,915,962 1,923,972 Less: Current portion of long-term debt (19,900 ) (19,900 ) Total long-term debt $ 1,896,062 $ 1,904,072

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Reconciliation of shares in basic and diluted loss per share calculation	A reconciliation of the number of shares in the calculation of basic and diluted earnings (loss) per share follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Basic earnings (loss) per share Numerator: Net income (loss) $ 4,393 $ (398 ) $ 5,419 $ (87,323 ) Accretion of dividends on Class A common stock — (74,608 ) — (216,621 ) Earnings allocated to unvested restricted stock (43 ) — (60 ) — Net income (loss) available to common stockholders $ 4,350 $ (75,006 ) $ 5,359 $ (303,944 ) Denominator: Weighted-average common shares outstanding used in computing basic earnings (loss) per share 306,890 102,078 306,381 101,915 Diluted earnings (loss) per share Numerator: Net income (loss) available to common stockholders $ 4,350 $ (75,006 ) $ 5,359 $ (303,944 ) Denominator: Weighted-average shares used in computing basic earnings (loss) per share 306,890 102,078 306,381 101,915 Add dilutive impact of employee equity plans 4,212 — 4,226 — Weighted-average shares used in computing diluted earnings (loss) per share 311,102 102,078 310,607 101,915
Weighted average shares excluded from loss per share computation	The following weighted average outstanding shares of common stock equivalents were excluded from the computation of the diluted earnings (loss) per share attributable to common stockholders for the periods presented because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Stock options to purchase common stock 286 2,782 322 2,525 Performance-based stock options to purchase common stock 125 316 127 267 Non-vested restricted stock incentive awards 2,147 3,512 2,439 3,435 Performance-based non-vested restricted stock incentive awards 899 1,537 1,031 1,566 Restricted stock units 5,498 — 4,948 — Performance stock units 918 — 920 — Employee stock purchase plan 127 — 63 — Total anti-dilutive shares 10,000 8,147 9,850 7,793

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Capitalized Contract Cost [Line Items]
Total undiscounted lease payments under non-cancellable operating leases		$ 124
Minimum
Capitalized Contract Cost [Line Items]
Expected benefit period	4 years
Maximum
Capitalized Contract Cost [Line Items]
Expected benefit period	6 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Cumulative adjustment for ASC 606 (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid and other current assets	$ 24,108	$ 17,567	$ 16,267
Other assets, net	20,180	15,239	11,382
Total assets	5,156,076	5,199,806	5,194,649
Current portion of deferred revenue	293,365	268,095	270,433
Deferred revenue, net of current portion	30,706	25,265	25,699
Non-current deferred taxes	114,919	148,806	147,144
Total liabilities	2,562,517	2,577,439	2,578,549
Accumulated deficit	(400,642)	(406,061)	(412,328)
Without adoption of ASC 606 (ASC 605)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid and other current assets	21,909		16,267
Other assets, net	13,209		11,382
Total assets	5,146,906
Current portion of deferred revenue	296,250		270,433
Deferred revenue, net of current portion	31,305		25,699
Non-current deferred taxes	113,257		147,144
Total liabilities	2,564,339
Accumulated deficit	(411,634)		$ (412,328)
ASC 606 impact | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid and other current assets	(2,199)	1,300
Other assets, net	(6,971)	3,857
Total assets	(9,170)	5,157
Current portion of deferred revenue	2,885	(2,338)
Deferred revenue, net of current portion	599	(434)
Non-current deferred taxes	(1,662)	1,662
Total liabilities	1,822	(1,110)
Accumulated deficit	$ (10,992)	$ 6,267

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Impact of ASC 606 on Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 240,490	$ 213,277	$ 685,030	$ 611,908
Gross profit	175,704	151,420	494,910	427,170
Total operating expenses	141,285	116,304	400,366	347,959
Operating income (loss)	34,419	35,116	94,544	79,211
Net income (loss)	4,393	(398)	5,419	(87,323)
Subscription
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	83,122	67,713	233,467	196,004
Maintenance
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	113,755	101,817	330,840	297,584
Recurring Revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	196,877	169,530	564,307	493,588
License
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	43,613	$ 43,747	120,723	$ 118,320
ASC 606 impact | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	(851)		(682)
Gross profit	(851)		(682)
Total operating expenses	1,361		3,952
Operating income (loss)	(2,212)		(4,634)
Net income (loss)	(2,212)		(4,634)
ASC 606 impact | Accounting Standards Update 2014-09 | Subscription
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	12		366
ASC 606 impact | Accounting Standards Update 2014-09 | Maintenance
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	298		777
ASC 606 impact | Accounting Standards Update 2014-09 | Recurring Revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	310		1,143
ASC 606 impact | Accounting Standards Update 2014-09 | License
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	(1,161)		(1,825)
Without adoption of ASC 606 (ASC 605)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	239,639		684,348
Gross profit	174,853		494,228
Total operating expenses	142,646		404,318
Operating income (loss)	32,207		89,910
Net income (loss)	2,181		785
Without adoption of ASC 606 (ASC 605) | Subscription
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	83,134		233,833
Without adoption of ASC 606 (ASC 605) | Maintenance
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	114,053		331,617
Without adoption of ASC 606 (ASC 605) | Recurring Revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	197,187		565,450
Without adoption of ASC 606 (ASC 605) | License
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 42,452		$ 118,898

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Impact of ASC 606 on Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid and other current assets	$ 24,108	$ 17,567	$ 16,267
Other assets, net	20,180	15,239	11,382
Total assets	5,156,076	5,199,806	5,194,649
Current portion of deferred revenue	293,365	268,095	270,433
Deferred revenue, net of current portion	30,706	25,265	25,699
Non-current deferred taxes	114,919	148,806	147,144
Total liabilities	2,562,517	2,577,439	2,578,549
Accumulated deficit	(400,642)	(406,061)	(412,328)
ASC 606 impact | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid and other current assets	(2,199)	1,300
Other assets, net	(6,971)	3,857
Total assets	(9,170)	5,157
Current portion of deferred revenue	2,885	(2,338)
Deferred revenue, net of current portion	599	(434)
Non-current deferred taxes	(1,662)	1,662
Total liabilities	1,822	(1,110)
Accumulated deficit	(10,992)	$ 6,267
Without adoption of ASC 606 (ASC 605)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid and other current assets	21,909		16,267
Other assets, net	13,209		11,382
Total assets	5,146,906
Current portion of deferred revenue	296,250		270,433
Deferred revenue, net of current portion	31,305		25,699
Non-current deferred taxes	113,257		147,144
Total liabilities	2,564,339
Accumulated deficit	$ (411,634)		$ (412,328)

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 2,633,616	$ (983,741)	$ 2,616,100	$ (729,761)
Other comprehensive gain (loss) before reclassification			(60,994)
Amount reclassified from accumulated other comprehensive income (loss)			0
Other comprehensive income (loss)	(54,446)	(10,520)	(60,994)	(36,089)
Balance at end of period	2,593,559	(1,069,525)	2,593,559	(1,069,525)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			17,043
Other comprehensive gain (loss) before reclassification			(60,994)
Amount reclassified from accumulated other comprehensive income (loss)			0
Other comprehensive income (loss)			(60,994)
Balance at end of period	(43,951)		(43,951)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	10,495	49,725	17,043	75,294
Balance at end of period	$ (43,951)	$ 39,205	$ (43,951)	$ 39,205

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Movement in Deferred Revenue [Roll Forward]
Balance at December 31, 2018	$ 296,132
Adoption of ASC 606	(2,772)
Deferred revenue recognized	(327,701)
Additional amounts deferred	349,665
Deferred revenue acquired in business combinations	8,747
Balance at September 30, 2019	$ 324,071

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Expected Recognition of Deferred Revenue (Details) $ in Thousands	Sep. 30, 2019USD ($)
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 324,071
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	293,365
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	29,639
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 1,067
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue Recognition Expected by Period

Summary of Significant Accou_11

Summary of Significant Accounting Policies - Change in Contract Acquisition Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Deferred Commissions, Roll Forward [Roll Forward]
Balance at December 31, 2018	$ 0
Adoption of ASC 606	5,157
Commissions capitalized	5,706
Amortization recognized	(1,693)
Balance at September 30, 2019	9,170
Current		$ 2,199
Non-current		6,971
Total deferred commissions	$ 0	$ 9,170

Summary of Significant Accou_12

Summary of Significant Accounting Policies - Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Product Information [Line Items]
Total amortization of acquired technologies	$ 44,172	$ 43,835	$ 131,961	$ 132,121
License
Product Information [Line Items]
Total amortization of acquired technologies	35,646	36,061	107,224	108,974
Subscription
Product Information [Line Items]
Total amortization of acquired technologies	$ 8,526	$ 7,774	$ 24,737	$ 23,147

Acquisition - Additional Inform

Acquisition - Additional Information (Details) - SAManage Ltd. - USD ($) $ in Millions	Apr. 30, 2019	Sep. 30, 2019	Sep. 30, 2019
Business Acquisition [Line Items]
Consideration transferred	$ 342.1
Payments to acquire businesses, gross	341.5
Equity awards assumed in acquisition	0.6
Acquisition related costs			$ 2
Decrease in goodwill		$ 13.7
Line of Credit | Revolving Credit Facility
Business Acquisition [Line Items]
Proceeds from line of credit used to fund acquisition	$ 35

Acquisition - Summary of Consid

Acquisition - Summary of Consideration Paid and Amounts Recognized (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Apr. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 3,929,602		$ 3,683,961
SAManage Ltd.
Business Acquisition [Line Items]
Current assets, including cash acquired of $6.2 million		$ 18,957
Property and equipment and other assets		428
Identifiable intangible assets		49,700
Goodwill		286,208
Current liabilities		(2,230)
Other long-term liabilities		(2,288)
Deferred revenue		(8,713)
Total consideration		342,062
Cash acquired		$ 6,200

Acquisition - Summary of Fair V

Acquisition - Summary of Fair Value of Acquired Identifiable Intangible Assets and Weighted-Average Useful Life (Details) - SAManage Ltd. $ in Thousands	Apr. 30, 2019USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 49,700
Developed product technologies
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 26,900
Weighted-average useful life	5 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 22,800
Weighted-average useful life	4 years

Goodwill (Details)

Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 3,683,961
Acquisitions	297,466
Foreign currency translation and other adjustments	(51,825)
Balance at end of period	$ 3,929,602

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	$ 0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		$ 117,100,000
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		117,100,000
Significant Other Observable Inputs (Level 2) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		0
Significant Unobservable Inputs (Level 3) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		$ 0

Debt - Summary of Debt (Details

Debt - Summary of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Amount
Total principal amount	$ 1,955,175	$ 1,970,100
Unamortized discount and debt issuance costs	(39,213)	(46,128)
Total debt	1,915,962	1,923,972
Less: Current portion of long-term debt	(19,900)	(19,900)
Total long-term debt	1,896,062	1,904,072
Line of Credit | Revolving Credit Facility
Amount
Total principal amount	$ 0	$ 0
Effective Rate	0.00%	0.00%
Secured Debt | First Lien Term Loan (as amended) due Feb 2024
Amount
Total principal amount	$ 1,955,175	$ 1,970,100
Effective Rate	4.79%	5.27%

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Apr. 30, 2019	Sep. 30, 2018	Oct. 31, 2018	Sep. 30, 2019
Credit Suisse | Eurodollar
Debt Instrument [Line Items]
LIBOR floor				0.00%
Credit Suisse | Federal Funds Effective Rate
Debt Instrument [Line Items]
Basis spread on variable rate				0.50%
Credit Suisse | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				1.00%
Credit Suisse | Secured Debt | First Lien Term Loan
Debt Instrument [Line Items]
Face amount of debt				$ 1,990,000,000
Quarterly periodic payment, as a percentage of original principal				0.25%
Covenant, leverage ratio, maximum				7.40
Credit Suisse | Secured Debt | First Lien Term Loan | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate		3.00%
Covenant, floor interest rate			0.00%
Credit Suisse | Secured Debt | First Lien Term Loan | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Credit Suisse | Secured Debt | First Lien Term Loan | Net Leverage Ratio Or IPO | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate			2.75%
Credit Suisse | Secured Debt | First Lien Term Loan | Net Leverage Ratio Or IPO | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			1.75%
Credit Suisse | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 125,000,000
Commitment fee percentage				0.50%
Covenant, commitment fee percentage, net leverage ratio, reduction per annum				0.375%
Covenant, borrowing percentage of commitments, maximum				35.00%
Credit Suisse | Line of Credit | Revolving Credit Facility | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate		3.00%
Covenant, floor interest rate			0.00%
Credit Suisse | Line of Credit | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Credit Suisse | Line of Credit | Revolving Credit Facility | Net Leverage Ratio Or IPO | Eurodollar | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate			2.50%
Credit Suisse | Line of Credit | Revolving Credit Facility | Net Leverage Ratio Or IPO | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate			1.50%
Credit Suisse | Line of Credit | Revolving Credit Facility | Multi-Currency Tranche
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 100,000,000
Credit Suisse | Line of Credit | Revolving Credit Facility | Single Currency Tranche | US Dollars
Debt Instrument [Line Items]
Maximum borrowing capacity				25,000,000
Credit Suisse | Line of Credit | Revolving Credit Facility | Single Currency Tranche, February 5, 2021 Maturity Date | US Dollars
Debt Instrument [Line Items]
Maximum borrowing capacity				7,500,000
Credit Suisse | Line of Credit | Revolving Credit Facility | Single Currency Tranche, February 5, 2022 Maturity Date | US Dollars
Debt Instrument [Line Items]
Maximum borrowing capacity				17,500,000
Credit Suisse | Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 35,000,000
SAManage Ltd. | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Proceeds from line of credit used to fund acquisition	$ 35,000,000

Redeemable Convertible Class _2

Redeemable Convertible Class A Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 30, 2018	Oct. 31, 2018
Temporary Equity Disclosure [Abstract]
Dividend rate	9.00%
Liquidation preference (in dollars per share)	$ 1,000
Conversion price (in dollars per share)	$ 19	$ 19
Cumulative undeclared and unpaid dividends	$ 717.4
Common Stock
Subsidiary, Sale of Stock [Line Items]
Conversion of stock (in shares)	140,053,370
Conversion of accrued and unpaid dividends (in shares)	37,758,109

Earnings (Loss) Per Share - Rec

Earnings (Loss) Per Share - Reconciliation of Shares in the Calculation of Basic and Diluted Loss Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income (loss)	$ 4,393	$ (398)	$ 5,419	$ (87,323)
Accretion of dividends on Class A common stock	0	(74,608)	0	(216,621)
Earnings allocated to unvested restricted stock	(43)	0	(60)	0
Net income (loss) available to common stockholders	$ 4,350	$ (75,006)	$ 5,359	$ (303,944)
Weighted-average common shares outstanding used in computing basic earnings (loss) per share (in shares)	306,890	102,078	306,381	101,915
Net income (loss) available to common stockholders	$ 4,350	$ (75,006)	$ 5,359	$ (303,944)
Denominator:
Weighted-average shares used in computing basic earnings (loss) per share (in shares)	306,890	102,078	306,381	101,915
Add dilutive impact of employee equity plans (in shares)	4,212	0	4,226	0
Weighted-average shares used in computing diluted earnings (loss) per share (in shares)	311,102	102,078	310,607	101,915

Earnings (Loss) Per Share - Wei

Earnings (Loss) Per Share - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	10,000	8,147	9,850	7,793
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	286	2,782	322	2,525
Performance-based stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	125	316	127	267
Non-vested restricted stock incentive awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	2,147	3,512	2,439	3,435
Performance-based non-vested restricted stock incentive awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	899	1,537	1,031	1,566
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	5,498	0	4,948	0
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	918	0	920	0
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	127	0	63	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 2,895	$ (126)	$ 6,654	$ (20,045)
Effective income tax rate	39.70%	24.00%	55.10%	18.70%
Unrecognized tax benefits, income tax penalties and interest accrued	$ 5,000		$ 5,000

Uncategorized Items - swi-20199

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 6,267,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 6,267,000