SolarWinds (SWI) 10-Q 6 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38711
Entity Registrant Name	SolarWinds Corp
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		158,024,032
Entity Central Index Key	0001739942
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 410,635	$ 370,498
Accounts receivable, net of allowances of $2,876 and $2,736 as of June 30, 2021 and December 31, 2020, respectively	97,601	114,298
Income tax receivable	4,677	2,273
Prepaid and other current assets	31,450	25,664
Total current assets	544,363	512,733
Property and equipment, net	66,153	58,649
Operating lease assets	124,828	110,961
Deferred taxes	144,753	149,455
Goodwill	4,206,720	4,249,402
Intangible assets, net	466,667	592,985
Other assets, net	40,531	36,298
Total assets	5,594,015	5,710,483
Current liabilities:
Accounts payable	10,369	17,932
Accrued liabilities and other	64,145	72,971
Current operating lease liabilities	19,056	17,811
Accrued interest payable	153	157
Income taxes payable	6,787	16,358
Current portion of deferred revenue	326,463	346,075
Current debt obligation	19,900	19,900
Total current liabilities	446,873	491,204
Long-term liabilities:
Deferred revenue, net of current portion	33,776	36,679
Non-current deferred taxes	38,852	59,149
Non-current operating lease liabilities	132,680	115,071
Other long-term liabilities	92,901	115,021
Long-term debt, net of current portion	1,877,220	1,882,672
Total liabilities	2,622,302	2,699,796
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value: 1,000,000,000 shares authorized and 158,014,531 and 156,519,611 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	158	157
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	0	0
Additional paid-in capital	3,140,176	3,112,262
Accumulated other comprehensive income	79,107	127,212
Accumulated deficit	(247,728)	(228,944)
Total stockholders’ equity	2,971,713	3,010,687
Total liabilities and stockholders’ equity	$ 5,594,015	$ 5,710,483

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets
Allowance for credit loss, accounts receivable	$ 2,876	$ 2,736
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)	158,014,531	156,519,611
Common stock, outstanding (in shares)	158,014,531	156,519,611
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		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Total revenue	$ 261,974	$ 246,015	$ 518,876	$ 492,965
Cost of revenue:
Cost of recurring revenue	27,516	21,822	54,474	44,323
Amortization of acquired technologies	41,135	44,834	84,256	89,326
Total cost of revenue	68,651	66,656	138,730	133,649
Gross profit	193,323	179,359	380,146	359,316
Operating expenses:
Sales and marketing	82,371	70,712	165,668	143,090
Research and development	39,106	30,745	76,867	62,590
General and administrative	50,397	24,467	98,107	54,222
Amortization of acquired intangibles	18,158	18,294	38,215	36,590
Total operating expenses	190,032	144,218	378,857	296,492
Operating income	3,291	35,141	1,289	62,824
Other income (expense):
Interest expense, net	(16,191)	(18,313)	(32,365)	(42,408)
Other income (expense), net	(321)	363	(194)	(395)
Total other income (expense)	(16,512)	(17,950)	(32,559)	(42,803)
Income (loss) before income taxes	(13,221)	17,191	(31,270)	20,021
Income tax expense (benefit)	(1,597)	4,346	(12,486)	6,761
Net income (loss)	(11,624)	12,845	(18,784)	13,260
Net income (loss) available to common stockholders	$ (11,624)	$ 12,772	$ (18,784)	$ 13,169
Net income (loss) available to common stockholders per share:
Basic earnings (loss) per share (in dollars per share)	$ (0.07)	$ 0.08	$ (0.12)	$ 0.09
Diluted earnings (loss) per share (in dollars per share)	$ (0.07)	$ 0.08	$ (0.12)	$ 0.08
Weighted-average shares used to compute net income (loss) available to common stockholders per share:
Weighted-average shares used in computing basic earnings (loss) per share (in shares)	157,854	155,122	157,491	154,795
Weighted-average shares used in computing diluted earnings (loss) per share (in shares)	157,854	157,449	157,491	156,937
Recurring Revenue
Revenue:
Total revenue	$ 235,296	$ 212,338	$ 467,324	$ 422,322
Subscription
Revenue:
Total revenue	112,429	95,840	221,417	189,475
Cost of revenue:
Amortization of acquired technologies	3,807	9,280	9,592	18,200
Maintenance
Revenue:
Total revenue	122,867	116,498	245,907	232,847
License
Revenue:
Total revenue	26,678	33,677	51,552	70,643
Cost of revenue:
Amortization of acquired technologies	$ 37,328	$ 35,554	$ 74,664	$ 71,126

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (11,624)	$ 12,845	$ (18,784)	$ 13,260
Other comprehensive income (loss):
Foreign currency translation adjustment	17,645	27,778	(48,105)	(2,651)
Other comprehensive income (loss)	17,645	27,778	(48,105)	(2,651)
Comprehensive income (loss)	$ 6,021	$ 40,623	$ (66,889)	$ 10,609

Condensed Consolidated Statem_3

Condensed Consolidated Statements Stockholders' Equity - 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, 2019		154,145,000
Balance at beginning of period at Dec. 31, 2019	$ 2,649,522	$ 154	$ 3,042,034	$ (5,247)	$ (387,419)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(2,651)			(2,651)
Net income (loss)	13,260				13,260
Comprehensive income (loss)	10,609
Exercise of stock options (in shares)		141,000
Exercise of stock options	309		309
Restricted stock units issued, net of shares withheld for taxes (in shares)		329,000
Restricted stock units issued, net of shares withheld for taxes	(2,351)	$ 1	(2,352)
Issuance of stock (in shares)		591,000
Issuance of stock	660	$ 1	659
Issuance of stock under employee stock purchase plan (in shares)		80,000
Issuance of stock under employee stock purchase plan	2,357		2,357
Stock-based compensation	24,606		24,606
Balance at end of period (in shares) at Jun. 30, 2020		155,286,000
Balance at end of period at Jun. 30, 2020	2,685,712	$ 156	3,067,613	(7,898)	(374,159)
Balance at beginning of period (in shares) at Mar. 31, 2020		154,946,000
Balance at beginning of period at Mar. 31, 2020	2,632,364	$ 155	3,054,889	(35,676)	(387,004)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	27,778			27,778
Net income (loss)	12,845				12,845
Comprehensive income (loss)	40,623
Exercise of stock options (in shares)		112,000
Exercise of stock options	258		258
Restricted stock units issued, net of shares withheld for taxes (in shares)		190,000
Restricted stock units issued, net of shares withheld for taxes	(803)	$ 1	(804)
Issuance of stock (in shares)		38,000
Issuance of stock	31		31
Stock-based compensation	13,239		13,239
Balance at end of period (in shares) at Jun. 30, 2020		155,286,000
Balance at end of period at Jun. 30, 2020	$ 2,685,712	$ 156	3,067,613	(7,898)	(374,159)
Balance at beginning of period (in shares) at Dec. 31, 2020	156,519,611	156,520,000
Balance at beginning of period at Dec. 31, 2020	$ 3,010,687	$ 157	3,112,262	127,212	(228,944)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(48,105)			(48,105)
Net income (loss)	(18,784)				(18,784)
Comprehensive income (loss)	(66,889)
Exercise of stock options (in shares)		92,000
Exercise of stock options	401		401
Restricted stock units issued, net of shares withheld for taxes (in shares)		848,000
Restricted stock units issued, net of shares withheld for taxes	(9,868)	$ 1	(9,869)
Issuance of stock (in shares)		447,000
Issuance of stock	492		492
Issuance of stock under employee stock purchase plan (in shares)		108,000
Issuance of stock under employee stock purchase plan	3,129		3,129
Stock-based compensation	$ 33,761		33,761
Balance at end of period (in shares) at Jun. 30, 2021	158,014,531	158,015,000
Balance at end of period at Jun. 30, 2021	$ 2,971,713	$ 158	3,140,176	79,107	(247,728)
Balance at beginning of period (in shares) at Mar. 31, 2021		157,702,000
Balance at beginning of period at Mar. 31, 2021	2,950,166	$ 158	3,124,650	61,462	(236,104)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	17,645			17,645
Net income (loss)	(11,624)				(11,624)
Comprehensive income (loss)	6,021
Exercise of stock options (in shares)		88,000
Exercise of stock options	390		390
Restricted stock units issued, net of shares withheld for taxes (in shares)		189,000
Restricted stock units issued, net of shares withheld for taxes	(1,471)		(1,471)
Issuance of stock (in shares)		36,000
Issuance of stock	29		29
Stock-based compensation	$ 16,578		16,578
Balance at end of period (in shares) at Jun. 30, 2021	158,014,531	158,015,000
Balance at end of period at Jun. 30, 2021	$ 2,971,713	$ 158	$ 3,140,176	$ 79,107	$ (247,728)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net income (loss)	$ (18,784)	$ 13,260
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	135,297	136,015
Provision for losses on accounts receivable	895	2,960
Stock-based compensation expense	33,522	24,245
Amortization of debt issuance costs	4,498	4,570
Deferred taxes	(17,527)	(16,032)
(Gain) loss on foreign currency exchange rates	(674)	1,639
Other non-cash expenses (benefits)	1,033	(900)
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable	15,455	13,854
Income taxes receivable	(2,446)	(104)
Prepaid and other assets	(8,492)	(1,224)
Accounts payable	(7,441)	(2,794)
Accrued liabilities and other	(2,791)	1,239
Accrued interest payable	(4)	(89)
Income taxes payable	(30,491)	4,022
Deferred revenue	(18,736)	3,363
Other long-term liabilities	(276)	66
Net cash provided by operating activities	83,038	184,090
Cash flows from investing activities
Purchases of property and equipment	(18,124)	(12,123)
Purchases of intangible assets	(3,823)	(4,182)
Acquisitions, net of cash acquired	447	0
Net cash used in investing activities	(21,500)	(16,305)
Cash flows from financing activities
Proceeds from issuance of common stock under employee stock purchase plan	3,129	2,357
Repurchase of common stock and incentive restricted stock	(10,059)	(2,376)
Exercise of stock options	401	309
Repayments of borrowings from credit agreement	(9,950)	(9,950)
Payment of debt issuance costs	(903)	0
Net cash used in financing activities	(17,382)	(9,660)
Effect of exchange rate changes on cash and cash equivalents	(4,019)	(83)
Net increase in cash and cash equivalents	40,137	158,042
Cash and cash equivalents
Beginning of period	370,498	173,372
End of period	410,635	331,414
Supplemental disclosure of cash flow information
Cash paid for interest	27,995	38,149
Cash paid for income taxes	$ 35,715	$ 16,755

Organization and Nature of Oper

Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Operations	1. Organization and Nature of OperationsSolarWinds Corporation, a Delaware corporation, and its subsidiaries (“Company”, “we,” “us” and “our”) is a leading provider of simple, powerful and secure information technology, or IT, management software. Our solutions give organizations worldwide, regardless of type, size or complexity, the power to accelerate business transformation in today's hybrid IT environments. Our approach, which we refer to as the SolarWinds Model, combines powerful, scalable, affordable, easy to use products with an "inside-first" selling motion. 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 to include network and systems engineers, database administrators, storage administrators, DevOps and service desk 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	6 Months Ended
	Jun. 30, 2021
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, 2020. Spin-Off of N-able Business On July 19, 2021, we completed the previously announced separation and distribution of our managed service provider (“MSP” or “N-able”) business into a newly created and separately traded public company, N-able, Inc. We refer to this transaction as the “Separation.” The Separation was completed by means of a tax-free, pro-rata distribution in which each holder of our common stock, par value $0.001 per share, received one share of N-able’s common stock, par value $0.001, for every two shares of our common stock held of record as of the close of business on July 12, 2021. The standalone N-able entity will provide broad cloud-based software solutions for MSPs, enabling them to support digital transformation and growth within small and medium-sized enterprises, or SMEs. SolarWinds retained its Core IT Management business focused primarily on selling software and cloud-based services to corporate IT organizations. We believe that the Separation will allow each company to more effectively pursue its distinct operating priorities, strategies and capital allocation policies, while also allowing stockholders to separately evaluate and value the companies on their distinct markets, strategies and performance. Upon completion of the Separation, SolarWinds stockholders owned shares of both companies. Spin-off costs incurred were $13.2 million and $23.1 million during the three and six months ended June 30, 2021, respectively, which are primarily included in general and administrative expense in the condensed consolidated statements of operations. Spin-off costs include legal, accounting and advisory fees, implementation and integration costs, duplicative costs for subscriptions and information technology systems, employee and contract costs and other incremental separation costs related to the spin-off of the N-able business. Reverse Stock Split Effective July 30, 2021, SolarWinds also effected a 2:1 reverse stock split of its common stock. As a result of the reverse stock split, all share and per share figures contained in the condensed consolidated financial statements have been retroactively restated as if the reverse stock split occurred at the beginning of the periods presented. 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 There have been no recent accounting pronouncements or changes in accounting pronouncements that are expected to have a material impact on our consolidated financial position, results of operations, or cash flows. 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 4. 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, 2020 $ 127,212 $ 127,212 Other comprehensive gain (loss) before reclassification (48,105) (48,105) Amount reclassified from accumulated other comprehensive income (loss) — — Net current period other comprehensive income (loss) (48,105) (48,105) Balance at June 30, 2021 $ 79,107 $ 79,107 Deferred Revenue Details of our total deferred revenue balance was as follow s: Total Deferred Revenue (in thousands) Balance at December 31, 2020 $ 382,754 Deferred revenue recognized (266,089) Additional amounts deferred 243,574 Balance at June 30, 2021 $ 360,239 We expect to recognize revenue related to these remaining performance obligations as of June 30, 2021 as follows: Revenue Recognition Expected by Period Total Less than 1 1-3 years More than (in thousands) Expected recognition of deferred revenue $ 360,239 $ 326,463 $ 33,408 $ 368 Deferred Commissions Details of our deferred commissions balance was as follow s: (in thousands) Balance at December 31, 2020 $ 14,801 Commissions capitalized 4,137 Amortization recognized (2,363) Balance at June 30, 2021 $ 16,575 June 30, December 31, 2021 2020 (in thousands) Classified as: Current $ 4,474 $ 3,824 Non-current 12,101 10,977 Total deferred commissions $ 16,575 $ 14,801 Disaggregation of Revenue The following table summarizes our revenue by product group: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Core IT Management product revenue $ 176,788 $ 172,665 $ 350,644 $ 346,403 N-able product revenue 85,186 73,350 168,232 146,562 Total revenue $ 261,974 $ 246,015 $ 518,876 $ 492,965 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Amortization of acquired license technologies $ 37,328 $ 35,554 $ 74,664 $ 71,126 Amortization of acquired subscription technologies 3,807 9,280 9,592 18,200 Total amortization of acquired technologies $ 41,135 $ 44,834 $ 84,256 $ 89,326

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	3. Goodwill The following table reflects the changes in goodwill for the six months ended June 30, 2021: (in thousands) Balance at December 31, 2020 $ 4,249,402 Foreign currency translation and other adjustments (42,682) Balance at June 30, 2021 $ 4,206,720

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements The following table summarizes the fair value of our financial assets that were measured on a recurring basis as of June 30, 2021 and December 31, 2020. There have been no transfers between fair value measurement levels during the six months ended June 30, 2021. Fair Value Measurements at June 30, 2021 Using Quoted Prices in Significant Significant Total (in thousands) Money market funds $ 265,000 $ — $ — $ 265,000 Trading security — — 5,337 5,337 Total assets $ 265,000 $ — $ 5,337 $ 270,337 Fair Value Measurements at December 31, 2020 Using Quoted Prices in Significant Significant Total (in thousands) Money market funds $ 160,000 $ — $ — $ 160,000 Trading security — — 5,238 5,238 Total assets $ 160,000 $ — $ 5,238 $ 165,238 As of June 30, 2021 and December 31, 2020, 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 5. Debt

Debt

Debt	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt	5. Debt The following table summarizes information relating to our debt: June 30, December 31, 2021 2020 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2024 1,920,350 2.85 % 1,930,300 2.90 % Total principal amount 1,920,350 1,930,300 Unamortized discount and debt issuance costs (23,230) (27,728) Total debt 1,897,120 1,902,572 Less: Current portion of long-term debt (19,900) (19,900) Total long-term debt $ 1,877,220 $ 1,882,672 Senior Secured First Lien Credit Facilities Our first lien credit agreement, as amended, or First Lien Credit Agreement, provides for senior secured first lien credit facilities, consisting of the following as of June 30, 2021: • a $1.99 billion U.S. dollar term loan, or First Lien Term Loan, with a final maturity date of February 5, 2024; and • a $117.5 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 $17.5 million tranche available only in U.S. dollars, with a final maturity date of February 5, 2022. Borrowings under our Revolving Credit Facility bear interest at a floating rate which is, at our option, either (1) a Eurodollar rate for a specified interest period plus an applicable margin of 2.50% or (2) a base rate plus an applicable margin of 1.50%, respectively. The Eurodollar rate applicable to the Revolving Credit Facility is subject to a “floor” of 0.0%. Borrowings under our First Lien Term Loan bear interest at a floating rate which is, at our option, either (1) a Eurodollar rate for a specified interest period plus an applicable margin of 2.75% or (2) a base rate plus an applicable margin of 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 June 30, 2021, we were in compliance with all covenants of the First Lien Credit Agreement.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	6. 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Basic earnings (loss) per share Numerator: Net income (loss) $ (11,624) $ 12,845 $ (18,784) $ 13,260 Earnings allocated to unvested restricted stock — (73) — (91) Net income (loss) available to common stockholders $ (11,624) $ 12,772 $ (18,784) $ 13,169 Denominator: Weighted-average common shares outstanding used in computing basic earnings (loss) per share 157,854 155,122 157,491 154,795 Diluted earnings (loss) per share Numerator: Net income (loss) available to common stockholders $ (11,624) $ 12,772 $ (18,784) $ 13,169 Denominator: Weighted-average shares used in computing basic earnings (loss) per share 157,854 155,122 157,491 154,795 Add dilutive impact of employee equity plans — 2,327 — 2,142 Weighted-average shares used in computing diluted earnings (loss) per share 157,854 157,449 157,491 156,937 As a result of the reverse stock split, all share and per share figures contained in the condensed consolidated financial statements have been retroactively restated as if the reverse stock split occurred at the beginning of the periods presented. The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income (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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Stock options to purchase common stock 534 154 575 160 Non-vested restricted stock incentive awards 126 772 229 922 Performance-based non-vested restricted stock incentive awards — 118 — 151 Restricted stock units 6,206 4,097 5,716 3,464 Performance stock units 62 81 79 122 Employee stock purchase plan 143 102 14 94 Total anti-dilutive shares 7,071 5,324 6,613 4,913

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes For the three months ended June 30, 2021 and 2020, we recorded income tax benefit of $1.6 million and income tax expense of $4.3 million, respectively, resulting in an effective tax rate of 12.1% and 25.3%, respectively. For the six months ended June 30, 2021 and 2020, we recorded income tax benefit of $12.5 million and income tax expense of $6.8 million, respectively, resulting in an effective tax rate of 39.9% and 33.8%, respectively. The decrease in the effective tax rate for the three months ended June 30, 2021 compared to the same period in 2020 was primarily due to a decrease in income before income taxes and an increase in state taxes. The increase in the effective tax rate for the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to the reversal of uncertain tax positions in the amount of $6.1 million and related accrued interest in the amount of $2.7 million resulting from an IRS settlement agreement entered into during the six months ended June 30, 2021. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. At June 30, 2021, we had accrued interest and penalties related to unrecognized tax benefits of approximately $2.9 million.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Cyber Incident As previously disclosed, we were the victim of a cyberattack on our Orion Software Platform and internal systems, or the Cyber Incident. We, together with our partners, have undertaken extensive measures to investigate, contain, eradicate, and remediate the Cyber Incident. As we disclosed in our investigatory update, we have substantially completed this process and believe the threat actor is no longer active in our environments. Expenses Incurred For the three months ended June 30, 2021, we recorded pretax gross expenses related to the Cyber Incident of $13.6 million, partially offset by insurance receipts and expected insurance proceeds for costs we believe are reimbursable and probable of recovery under our insurance coverage of $2.9 million, for pretax net expenses of $10.7 million. For the three months ended June 30, 2021, we have included $0.7 million of these gross expenses in cost of recurring revenue, $0.8 million in sales and marketing expense and $12.2 million in general and administrative expense in the condensed consolidated statements of operations. For the six months ended June 30, 2021, we recorded pretax gross expenses related to the Cyber Incident of $34.0 million, partially offset by insurance receipts and expected insurance proceeds for costs we believe are reimbursable and probable of recovery under our insurance coverage of $13.1 million, for pretax net expenses of $20.9 million. For the six months ended June 30, 2021, we have included $1.5 million of these gross expenses in cost of recurring revenue, $1.5 million in sales and marketing expense and $31.0 million in general and administrative expense in the condensed consolidated statements of operations. General and administrative expense is presented net of insurance proceeds in the condensed consolidated statements of operations. Expenses include one-time costs to investigate and remediate the Cyber Incident, and legal and other professional services related thereto, and consulting services being provided to customers at no charge, all of which were expensed as incurred. Litigation, Claims and Government Investigations As a result of the Cyber Incident, we are subject to numerous lawsuits and investigations. Multiple class action lawsuits alleging, among other things, violations of the federal securities laws are pending against us and certain of our current and former officers. The complainants seek certification of a class of all persons who purchased or otherwise acquired our securities during set periods of time and unspecified monetary damages, costs and attorneys’ fees. In August 2021, the Company and all other named defendants in the securities class action filed motions to dismiss the consolidated class action complaint which is pending before the court. In addition, a shareholder derivative action, purportedly on behalf of the Company, is pending in the Western District of Texas asserting breach of duty and other claims against certain of our current and former officers and directors in connection with the cyberattack. We dispute the allegations in these complaints and intend to defend against the claims. In addition, there are underway numerous investigations and inquiries by domestic and foreign law enforcement and other governmental authorities related to the Cyber Incident, including from the Department of Justice, the Securities and Exchange Commission, and various state Attorneys General. We are cooperating and providing information in connection with these investigations and inquiries and are incurring, and in future periods expect to incur, costs and other expenses in connection with these investigations and inquiries. While we believe it is reasonably possible that we could incur losses associated with these proceedings and investigations, it is not possible to estimate the amount of any loss or range of possible loss that might result from adverse judgments, settlements, penalties or other resolutions of such proceedings and investigations based on the early stage thereof, the fact that alleged damages have not been specified, the uncertainty as to the certification of a class or classes and the size of any certified class, as applicable, and the lack of resolution on significant factual and legal issues. The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. Losses associated with any adverse judgments, settlements, penalties or other resolutions of such proceedings and investigations could be material to our business, results of operations, financial condition or cash flows in future periods. Additional lawsuits and claims related to the Cyber Incident may be asserted by or on behalf of customers, stockholders or others seeking damages or other related relief and additional inquiries from governmental agencies may be received or investigations by governmental agencies commenced. Insurance Coverage We maintain $15 million of cybersecurity insurance coverage to limit our exposure to losses such as those related to the Cyber Incident. As of June 30, 2021, we recorded a loss recovery asset of $2.1 million for insurance proceeds deemed probable of recovery which is included in prepaid and other current assets in our condensed consolidated balance sheet and received payments of $11.0 million for costs incurred. Other Matters In addition to the Cyber Incident described above, from time to time we are involved in litigation arising from the normal course of business. In management's opinion, this litigation is not expected to have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events On July 19, 2021, we completed the Separation of our N-able business into a newly created and separately traded public company, N-able, Inc. The Separation was completed by means of a tax-free, pro-rata distribution in which each holder of our common stock, par value $0.001 per share, received one share of N-able’s common stock, par value $0.001, for every two shares of our common stock held of record as of the close of business on July 12, 2021. In connection with the Separation, N‑able closed a private placement of its common stock and entered into a credit facility. Upon the closing of such private placement and such credit facility, and prior to the completion of the Separation, on July 19, 2021, N-able distributed the net proceeds from the private placement of approximately $216.0 million as well as the net proceeds of the term loan of approximately $16.5 million to us. After the distribution, we do not beneficially own any shares of common stock in N-able and will no longer consolidate N‑able into our financial results for periods ending after July 19, 2021. As a result, beginning in the third quarter of 2021, N‑able's historical financial results through the Separation will be reflected in our consolidated financial statements as a discontinued operation. On July 26, 2021, we announced that the Company intended to effect a reverse stock split of its common stock at a ratio of one post-split share for every two pre-split shares. The reverse stock split became effective on Friday, July 30, 2021 at 5:00pm ET. SolarWinds common stock continued to trade on the NYSE under the symbol SWI and began trading on a split-adjusted basis on Monday, August 2, 2021. As a result of the reverse stock split, all share and per share figures contained in the financial statements have been retroactively restated as if the reverse stock split occurred at the beginning of the periods presented. On July 27, 2021, we entered into Amendment No. 5 to our First Lien Credit Agreement to extend the maturity date of our Revolving Credit Facility to August 5, 2023. The borrowing capacity under the amended Revolving Credit Facility was unchanged. On July 30, 2021, the Board declared a special one-time cash dividend, to be paid following the effectiveness of, and after giving effect to, the reverse stock split, equal to $1.50 per share of common stock issued and outstanding as of August 9, 2021, to be paid on August 24, 2021 (the “Special Dividend”). The Special Dividend will be funded primarily from the net proceeds distributed to the Company by N-able in connection with the Separation.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
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, 2020.
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
Recently Adopted Accounting Pronouncements	There have been no recent accounting pronouncements or changes in accounting pronouncements that are expected to have a material impact on our consolidated financial position, results of operations, or cash flows.
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 4. 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.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
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, 2020 $ 127,212 $ 127,212 Other comprehensive gain (loss) before reclassification (48,105) (48,105) Amount reclassified from accumulated other comprehensive income (loss) — — Net current period other comprehensive income (loss) (48,105) (48,105) Balance at June 30, 2021 $ 79,107 $ 79,107
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, 2020 $ 382,754 Deferred revenue recognized (266,089) Additional amounts deferred 243,574 Balance at June 30, 2021 $ 360,239
Remaining performance obligations for revenue recognition	We expect to recognize revenue related to these remaining performance obligations as of June 30, 2021 as follows: Revenue Recognition Expected by Period Total Less than 1 1-3 years More than (in thousands) Expected recognition of deferred revenue $ 360,239 $ 326,463 $ 33,408 $ 368
Details of contract acquisition cost	Details of our deferred commissions balance was as follow s: (in thousands) Balance at December 31, 2020 $ 14,801 Commissions capitalized 4,137 Amortization recognized (2,363) Balance at June 30, 2021 $ 16,575 June 30, December 31, 2021 2020 (in thousands) Classified as: Current $ 4,474 $ 3,824 Non-current 12,101 10,977 Total deferred commissions $ 16,575 $ 14,801
Disaggregation of revenue	The following table summarizes our revenue by product group: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Core IT Management product revenue $ 176,788 $ 172,665 $ 350,644 $ 346,403 N-able product revenue 85,186 73,350 168,232 146,562 Total revenue $ 261,974 $ 246,015 $ 518,876 $ 492,965
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Amortization of acquired license technologies $ 37,328 $ 35,554 $ 74,664 $ 71,126 Amortization of acquired subscription technologies 3,807 9,280 9,592 18,200 Total amortization of acquired technologies $ 41,135 $ 44,834 $ 84,256 $ 89,326

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table reflects the changes in goodwill for the six months ended June 30, 2021: (in thousands) Balance at December 31, 2020 $ 4,249,402 Foreign currency translation and other adjustments (42,682) Balance at June 30, 2021 $ 4,206,720

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 and December 31, 2020. There have been no transfers between fair value measurement levels during the six months ended June 30, 2021. Fair Value Measurements at June 30, 2021 Using Quoted Prices in Significant Significant Total (in thousands) Money market funds $ 265,000 $ — $ — $ 265,000 Trading security — — 5,337 5,337 Total assets $ 265,000 $ — $ 5,337 $ 270,337 Fair Value Measurements at December 31, 2020 Using Quoted Prices in Significant Significant Total (in thousands) Money market funds $ 160,000 $ — $ — $ 160,000 Trading security — — 5,238 5,238 Total assets $ 160,000 $ — $ 5,238 $ 165,238

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Summary of debt	The following table summarizes information relating to our debt: June 30, December 31, 2021 2020 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2024 1,920,350 2.85 % 1,930,300 2.90 % Total principal amount 1,920,350 1,930,300 Unamortized discount and debt issuance costs (23,230) (27,728) Total debt 1,897,120 1,902,572 Less: Current portion of long-term debt (19,900) (19,900) Total long-term debt $ 1,877,220 $ 1,882,672

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Reconciliation of shares in basic and diluted earnings 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Basic earnings (loss) per share Numerator: Net income (loss) $ (11,624) $ 12,845 $ (18,784) $ 13,260 Earnings allocated to unvested restricted stock — (73) — (91) Net income (loss) available to common stockholders $ (11,624) $ 12,772 $ (18,784) $ 13,169 Denominator: Weighted-average common shares outstanding used in computing basic earnings (loss) per share 157,854 155,122 157,491 154,795 Diluted earnings (loss) per share Numerator: Net income (loss) available to common stockholders $ (11,624) $ 12,772 $ (18,784) $ 13,169 Denominator: Weighted-average shares used in computing basic earnings (loss) per share 157,854 155,122 157,491 154,795 Add dilutive impact of employee equity plans — 2,327 — 2,142 Weighted-average shares used in computing diluted earnings (loss) per share 157,854 157,449 157,491 156,937
Weighted average shares excluded from earnings per share computation	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income (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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Stock options to purchase common stock 534 154 575 160 Non-vested restricted stock incentive awards 126 772 229 922 Performance-based non-vested restricted stock incentive awards — 118 — 151 Restricted stock units 6,206 4,097 5,716 3,464 Performance stock units 62 81 79 122 Employee stock purchase plan 143 102 14 94 Total anti-dilutive shares 7,071 5,324 6,613 4,913

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Millions	Jul. 30, 2021	Jul. 19, 2021$ / shares	Jun. 30, 2021USD ($)$ / shares	Jun. 30, 2021USD ($)$ / shares	Dec. 31, 2020$ / shares
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Common stock, par value (in dollars per share)			$ 0.001	$ 0.001	$ 0.001
Spin-off costs | $			$ 13.2	$ 23.1
Subsequent Event
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Common stock, par value (in dollars per share)		$ 0.001
Stock split, conversion ratio	2	0.5

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 2,950,166	$ 2,632,364	$ 3,010,687	$ 2,649,522
Other comprehensive gain (loss) before reclassification			(48,105)
Amount reclassified from accumulated other comprehensive income (loss)			0
Other comprehensive income (loss)	17,645	27,778	(48,105)	(2,651)
Balance at end of period	2,971,713	2,685,712	2,971,713	2,685,712
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			127,212
Other comprehensive gain (loss) before reclassification			(48,105)
Amount reclassified from accumulated other comprehensive income (loss)			0
Other comprehensive income (loss)			(48,105)
Balance at end of period	79,107		79,107
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	61,462	(35,676)	127,212	(5,247)
Balance at end of period	$ 79,107	$ (7,898)	$ 79,107	$ (7,898)

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Movement in Deferred Revenue [Roll Forward]
Balance at December 31, 2020	$ 382,754
Deferred revenue recognized	(266,089)
Additional amounts deferred	243,574
Balance at June 30, 2021	$ 360,239

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Expected Recognition of Deferred Revenue (Details) $ in Thousands	Jun. 30, 2021USD ($)
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 360,239
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 326,463
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue Recognition Expected by Period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 33,408
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue Recognition Expected by Period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Accounting Policies [Abstract]
Expected recognition of deferred revenue	$ 368
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue Recognition Expected by Period

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Change in Contract Acquisition Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Deferred Commissions, Roll Forward [Roll Forward]
Balance at December 31, 2020	$ 14,801
Commissions capitalized	4,137
Amortization recognized	(2,363)
Balance at June 30, 2021	16,575
Current	4,474	$ 3,824
Non-current	12,101	10,977
Total deferred commissions	$ 16,575	$ 14,801

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Product Information [Line Items]
Total revenue	$ 261,974	$ 246,015	$ 518,876	$ 492,965
Core IT Management product revenue
Product Information [Line Items]
Total revenue	176,788	172,665	350,644	346,403
N-able product revenue
Product Information [Line Items]
Total revenue	$ 85,186	$ 73,350	$ 168,232	$ 146,562

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Product Information [Line Items]
Total amortization of acquired technologies	$ 41,135	$ 44,834	$ 84,256	$ 89,326
License
Product Information [Line Items]
Total amortization of acquired technologies	37,328	35,554	74,664	71,126
Subscription
Product Information [Line Items]
Total amortization of acquired technologies	$ 3,807	$ 9,280	$ 9,592	$ 18,200

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 4,249,402
Foreign currency translation and other adjustments	(42,682)
Balance at end of period	$ 4,206,720

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	$ 5,337	$ 5,238
Total assets	270,337	165,238
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	0	0
Total assets	265,000	160,000
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	0	0
Total assets	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	5,337	5,238
Total assets	5,337	5,238
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	265,000	160,000
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	265,000	160,000
Money market funds | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	0	0
Money market funds | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value disclosure	$ 0	$ 0

Debt - Summary of Debt (Details

Debt - Summary of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Amount
Total principal amount	$ 1,920,350	$ 1,930,300
Unamortized discount and debt issuance costs	(23,230)	(27,728)
Total debt	1,897,120	1,902,572
Less: Current portion of long-term debt	(19,900)	(19,900)
Total long-term debt	1,877,220	1,882,672
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	$ 1,920,350	$ 1,930,300
Effective Rate	2.85%	2.90%

Debt - Narrative (Details)

Debt - Narrative (Details) - Credit Suisse	6 Months Ended
	Jun. 30, 2021USD ($)
Eurodollar
Debt Instrument [Line Items]
LIBOR floor	0.00%
Federal Funds Effective Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
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
Secured Debt | First Lien Term Loan | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Covenant, floor interest rate	0.00%
Secured Debt | First Lien Term Loan | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Line of Credit | Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 117,500,000
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%
Line of Credit | Revolving credit facility | Eurodollar
Debt Instrument [Line Items]
Covenant, floor interest rate	0.00%
Line of Credit | Revolving credit facility | Eurodollar | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Line of Credit | Revolving credit facility | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 35,000,000
Line of Credit | Multi-Currency Tranche | Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	100,000,000
Line of Credit | Single Currency Tranche | Revolving credit facility | US Dollars
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 17,500,000

Earnings (Loss) Per Share - Rec

Earnings (Loss) Per Share - Reconciliation of Shares in the Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income (loss)	$ (11,624)	$ 12,845	$ (18,784)	$ 13,260
Earnings allocated to unvested restricted stock	0	(73)	0	(91)
Net income (loss) available to common stockholders	$ (11,624)	$ 12,772	$ (18,784)	$ 13,169
Weighted-average common shares outstanding used in computing basic earnings (loss) per share (in shares)	157,854	155,122	157,491	154,795
Net income (loss) available to common stockholders	$ (11,624)	$ 12,772	$ (18,784)	$ 13,169
Denominator:
Weighted-average shares used in computing basic earnings (loss) per share (in shares)	157,854	155,122	157,491	154,795
Add dilutive impact of employee equity plans (in shares)	0	2,327	0	2,142
Weighted-average shares used in computing diluted earnings (loss) per share (in shares)	157,854	157,449	157,491	156,937

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		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	7,071	5,324	6,613	4,913
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	534	154	575	160
Non-vested restricted stock incentive awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	126	772	229	922
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)	0	118	0	151
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	6,206	4,097	5,716	3,464
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	62	81	79	122
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares (in shares)	143	102	14	94

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (1,597)	$ 4,346	$ (12,486)	$ 6,761
Effective income tax rate	12.10%	25.30%	39.90%	33.80%
Reversal of uncertain tax position			$ 6,100
Tax settlement, amount			2,700
Unrecognized tax benefits, income tax penalties and interest accrued	$ 2,900		$ 2,900

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2021USD ($)
Loss Contingencies [Line Items]
Loss contingency, receivable, additions	$ 2.9	$ 13.1
Loss contingency expense net of insurance proceeds		15
Loss contingency, receivable	2.1	2.1
Loss contingency, receivable, proceeds		11
Cyber Incident
Loss Contingencies [Line Items]
Loss contingency, pretax expenses	13.6	34
Loss contingency expense net of insurance proceeds	10.7	20.9
Cyber Incident | Cost of Sales
Loss Contingencies [Line Items]
Loss contingency, pretax expenses	0.7	1.5
Cyber Incident | Selling and Marketing Expense
Loss Contingencies [Line Items]
Loss contingency, pretax expenses	0.8	1.5
Cyber Incident | General and Administrative Expense
Loss Contingencies [Line Items]
Loss contingency, pretax expenses	$ 12.2	$ 31

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions	Jul. 30, 2021$ / shares	Jul. 19, 2021USD ($)$ / shares	Jun. 30, 2021$ / shares	Dec. 31, 2020$ / shares
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)			$ 0.001	$ 0.001
Subsequent Event
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)		$ 0.001
Stock split, conversion ratio	2	0.5
Proceeds from issuance of term loan | $		$ 16.5
Dividends declared (in dollars per share)	$ 1.50
Subsequent Event | Private Placement
Subsequent Event [Line Items]
Proceeds from divestiture of businesses | $		$ 216