SolarWinds (SWI) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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		163,697,236
Entity Central Index Key	0001739942
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 129,180	$ 121,738
Short-term investments	11,553	27,114
Accounts receivable, net of allowances of $1,772 and $1,173 as of March 31, 2023 and December 31, 2022, respectively	108,064	100,204
Income tax receivable	1,316	987
Prepaid and other current assets	63,906	57,350
Total current assets	314,019	307,393
Property and equipment, net	23,447	26,634
Operating lease assets	52,739	61,418
Deferred taxes	136,958	134,922
Goodwill	2,388,999	2,380,059
Intangible assets, net	228,272	243,980
Other assets, net	47,015	45,600
Total assets	3,191,449	3,200,006
Current liabilities:
Accounts payable	8,848	14,045
Accrued liabilities and other	35,219	68,284
Current operating lease liabilities	15,013	15,005
Accrued interest payable	306	579
Income taxes payable	14,909	11,841
Current portion of deferred revenue	343,594	337,541
Current debt obligation	12,450	9,338
Total current liabilities	430,339	456,633
Long-term liabilities:
Deferred revenue, net of current portion	41,992	38,945
Non-current deferred taxes	10,488	8,582
Non-current operating lease liabilities	55,968	59,235
Other long-term liabilities	74,586	74,193
Long-term debt, net of current portion	1,192,276	1,192,765
Total liabilities	1,805,649	1,830,353
Commitments and contingencies (Note 9)
Stockholders’ equity:
Common stock, $0.001 par value: 1,000,000,000 shares authorized and 163,666,768 and 161,928,532 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	164	162
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	0	0
Additional paid-in capital	2,638,670	2,627,370
Accumulated other comprehensive loss	(37,648)	(48,114)
Accumulated deficit	(1,215,386)	(1,209,765)
Total stockholders’ equity	1,385,800	1,369,653
Total liabilities and stockholders’ equity	$ 3,191,449	$ 3,200,006

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Allowance for credit loss, accounts receivable	$ 1,772	$ 1,173
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)	163,666,768	161,928,532
Common stock, outstanding (in shares)	163,666,768	161,928,532
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
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Total revenue	$ 185,976	$ 176,868
Cost of revenue:
Cost of recurring revenue	18,394	17,831
Amortization of acquired technologies	3,436	17,227
Total cost of revenue	21,830	35,058
Gross profit	164,146	141,810
Operating expenses:
Sales and marketing	65,916	61,044
Research and development	23,791	23,422
General and administrative	25,601	32,664
Amortization of acquired intangibles	13,005	13,239
Total operating expenses	128,313	130,369
Operating income	35,833	11,441
Other income (expense):
Interest expense, net	(28,581)	(16,087)
Other expense, net	(89)	(169)
Total other expense	(28,670)	(16,256)
Income (loss) before income taxes	7,163	(4,815)
Income tax expense (benefit)	12,784	(156)
Net loss	(5,621)	(4,659)
Net loss available to common stockholders	(5,621)	(4,659)
Net loss available to common stockholders	$ (5,621)	$ (4,659)
Net loss available to common stockholders per share:
Basic loss per share (in dollars per share)	$ (0.03)	$ (0.03)
Diluted loss per share (in dollars per share)	$ (0.03)	$ (0.03)
Weighted-average shares used to compute net loss available to common stockholders per share:
Shares used in computation of basic loss per share (in shares)	162,773	159,847
Shares used in computation of diluted loss per share (in shares)	162,773	159,847
Recurring Revenue
Revenue:
Total revenue	$ 168,835	$ 154,242
Subscription
Revenue:
Total revenue	54,357	38,747
Cost of revenue:
Amortization of acquired technologies	2,514	2,744
Maintenance
Revenue:
Total revenue	114,478	115,495
License
Revenue:
Total revenue	17,141	22,626
Cost of revenue:
Amortization of acquired technologies	$ 922	$ 14,483

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,621)	$ (4,659)
Other comprehensive loss:
Foreign currency translation adjustment	10,383	(16,895)
Unrealized gains on investments, net of income tax expense of $21 and $— for the three months ended March 31, 2023 and 2022, respectively	83	0
Other comprehensive income (loss)	10,466	(16,895)
Comprehensive income (loss)	$ 4,845	$ (21,554)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Tax expense on unrealized losses on investments	$ 21	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of 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, 2021		159,176,000
Balance at beginning of period at Dec. 31, 2021	$ 2,287,896	$ 159	$ 2,566,783	$ 1,306	$ (280,352)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(16,895)			(16,895)
Unrealized gains on investments, net of taxes	0
Net loss	(4,659)				(4,659)
Comprehensive income (loss)	(21,554)
Exercise of stock options (in shares)		16,000
Exercise of stock options	12		12
Restricted stock units issued, net of shares withheld for taxes (in shares)		1,063,000
Restricted stock units issued, net of shares withheld for taxes	(6,407)	$ 1	(6,408)
Issuance of stock (in shares)		51,000
Issuance of stock	216	$ 0	216
Issuance of stock under employee stock purchase plan (in shares)		150,000
Issuance of stock under employee stock purchase plan	1,753		1,753
Stock-based compensation	15,462		15,462
Balance at end of period (in shares) at Mar. 31, 2022		160,456,000
Balance at end of period at Mar. 31, 2022	$ 2,277,378	$ 160	2,577,818	(15,589)	(285,011)
Balance at beginning of period (in shares) at Dec. 31, 2022	161,928,532	161,929,000
Balance at beginning of period at Dec. 31, 2022	$ 1,369,653	$ 162	2,627,370	(48,114)	(1,209,765)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	10,383			10,383
Unrealized gains on investments, net of taxes	83			83
Net loss	(5,621)				(5,621)
Comprehensive income (loss)	4,845
Exercise of stock options (in shares)		6,000
Exercise of stock options	8		8
Restricted stock units issued, net of shares withheld for taxes (in shares)		1,531,000
Restricted stock units issued, net of shares withheld for taxes	(6,991)	$ 2	(6,993)
Issuance of stock (in shares)		3,000
Issuance of stock	18		18
Issuance of stock under employee stock purchase plan (in shares)		198,000
Issuance of stock under employee stock purchase plan	1,711		1,711
Stock-based compensation	$ 16,556		16,556
Balance at end of period (in shares) at Mar. 31, 2023	163,666,768	163,667,000
Balance at end of period at Mar. 31, 2023	$ 1,385,800	$ 164	$ 2,638,670	$ (37,648)	$ (1,215,386)

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net loss	$ (5,621)	$ (4,659)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	22,018	33,928
Provision for losses on accounts receivable	594	297
Stock-based compensation expense	16,234	15,269
Amortization of debt issuance costs	2,666	2,258
Deferred taxes	1,906	(6,392)
Loss on foreign currency exchange rates	184	280
Other non-cash expenses	5,920	211
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable	(7,930)	(3,332)
Income taxes receivable	(312)	(243)
Prepaid and other assets	(6,339)	8,073
Accounts payable	(5,205)	(138)
Accrued liabilities and other	(33,587)	(8,482)
Accrued interest payable	(273)	18
Income taxes payable	3,485	(822)
Deferred revenue	7,059	3,876
Other long-term liabilities	0	116
Net cash provided by operating activities	799	40,258
Cash flows from investing activities
Maturities of investments	15,035	0
Purchases of property and equipment	(342)	(1,180)
Purchases of intangible assets	(3,138)	(3,120)
Acquisitions, net of cash acquired	0	(6,500)
Other investing activities	564	0
Net cash provided by (used in) investing activities	12,119	(10,800)
Cash flows from financing activities
Proceeds from issuance of common stock under employee stock purchase plan	1,711	1,753
Repurchase of common stock and incentive restricted stock	(6,991)	(6,419)
Exercise of stock options	8	12
Repayments of borrowings from credit agreement	0	(4,975)
Net cash used in financing activities	(5,272)	(9,629)
Effect of exchange rate changes on cash and cash equivalents	(204)	(727)
Net increase in cash and cash equivalents	7,442	19,102
Cash and cash equivalents
Beginning of period	121,738	732,116
End of period	129,180	751,218
Supplemental disclosure of cash flow information
Cash paid for interest	26,740	13,907
Cash paid for income taxes	$ 6,566	$ 6,259

Organization and Nature of Oper

Organization and Nature of Operations	3 Months Ended
	Mar. 31, 2023
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 simple, powerful and secure observability and information technology, or IT, management software. Our solutions are designed to give organizations worldwide, regardless of type, size or complexity, the power to optimize performance of their IT environments, no matter where they are in their digital transformation journeys. Our business is focused on building products designed to enable technology professionals and leaders to securely monitor and manage the performance of their IT environments, whether they be on-premises, in the cloud or in hybrid deployments. Our approach has enabled us to serve the entire IT market and our customers include network and systems engineers, database administrators, storage administrators, DevOps, SecOps and service desk professionals. We sell our products for use in organizations across industries ranging in size from very small businesses to large enterprises.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies We prepared our interim condensed consolidated financial statements in conformity with United States of America generally accepted accounting principles ("GAAP"), and the reporting regulations of the Securities and Exchange Commission (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, 2022. 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 Issued Accounting Pronouncements During the three months ended March 31, 2023, there have been no recently issued accounting pronouncements that are expected to have a material impact to our financial position, results of operations or cash flows. Goodwill Our goodwill was derived from the take private transaction in early 2016 ("Take Private") and acquisitions where the purchase price exceeded the fair value of the net identifiable assets acquired. Goodwill is tested for impairment at least annually during the fourth quarter or more frequently if events or circumstances indicate it is more likely than not that the fair value of our reporting unit is less than its carrying value. During the year ended December 31, 2022, we experienced declines in our market capitalization and after considering the impact of current macroeconomic conditions on the assumptions used in determining the fair value of our reporting unit, determined it appropriate to perform interim quantitative assessments of our reporting unit as of June 30, 2022 and September 30, 2022. As a result of the interim goodwill impairment analyses, our reporting unit was determined to have a carrying value that exceeded its fair value and therefore, we recorded non-cash goodwill impairment charges of $612.4 million and $278.7 million for the three months ended June 30, 2022 and September 30, 2022, respectively. Throughout the period since the quantitative assessment on September 30, 2022, there has been no unanticipated changes or negative indicators in the qualitative factors or valuation assumptions that would negatively impact the fair value of our reporting unit. As such, we determined there were no indicators of impairment and that it was more likely than not that the fair value of our reporting unit was greater than its carrying value at March 31, 2023. Fair value determination of our reporting unit requires considerable judgment and is sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the quantitative goodwill impairment tests will prove to be an accurate prediction of future results. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value of our reporting unit may include such items as: (i) volatility in the equity and debt markets or other macroeconomic factors, (ii) an increase in the weighted-average cost of capital due to further increases in interest rates, (iii) timing and success of new products introduced in our evolution from monitoring to observability, (iv) the ongoing impact of the Cyber Incident including a decrease in future cash flows due to lower than expected license sales or maintenance renewals, higher than expected customer attrition, higher than estimated costs to respond and adverse loss exposure from claims, fines or penalties resulting from government investigations and litigation; and (v) fluctuations in foreign currency exchange rates that may negatively impact our reported results of operations. Accordingly, if our current cash flow assumptions are not realized, we experience further sustained declines in our stock price or market capitalization, or there are further declines in the market multiplies used in our analysis, it is possible that an additional impairment charge may be recorded in the future, which could be material. 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. We determine the fair value of our available-for-sale securities based on inputs obtained from multiple pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. However, we classify all of our available-for-sale securities as being valued using Level 2 inputs. The valuation techniques used to determine the fair value of our financial instruments having Level 2 inputs are derived from unadjusted, non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models. Our procedures include controls to ensure that appropriate fair values are recorded by a review of the valuation methods and assumptions. 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 Unrealized Gain (Loss) on Investments, Accumulated Other Comprehensive (in thousands) Balance at December 31, 2022 $ (47,996) $ (118) $ (48,114) Other comprehensive gain before reclassification 10,383 83 10,466 Amount reclassified from accumulated other comprehensive income (loss) — — — Net current period other comprehensive income 10,383 83 10,466 Balance at March 31, 2023 $ (37,613) $ (35) $ (37,648) Deferred Revenue Details of our total deferred revenue balance are as follow s: Total Deferred Revenue (in thousands) Balance at December 31, 2022 $ 376,486 Deferred revenue recognized (130,163) Additional amounts deferred 139,263 Balance at March 31, 2023 $ 385,586 We expect to recognize revenue related to these remaining performance obligations as of March 31, 2023 as follows: Revenue Recognition Expected by Period Total Less than 1-3 years More than (in thousands) Expected recognition of deferred revenue $ 385,586 $ 343,594 $ 40,812 $ 1,180 Deferred Commissions Details of our deferred commissions balance are as follow s: Deferred Commissions (in thousands) Balance at December 31, 2022 $ 22,540 Commissions capitalized 2,538 Amortization recognized (1,979) Balance at March 31, 2023 $ 23,099 March 31, December 31, 2023 2022 (in thousands) Classified as: Current $ 7,334 $ 6,936 Non-current 15,765 15,604 Total deferred commissions $ 23,099 $ 22,540 Cost of Revenue Amortization of Acquired Technologies. Amortization of acquired technologies included in cost of revenue relate to our licensed products and subscription offerings as follows: Three Months Ended March 31, 2023 2022 (in thousands) Amortization of acquired license technologies $ 922 $ 14,483 Amortization of acquired subscription technologies 2,514 2,744 Total amortization of acquired technologies $ 3,436 $ 17,227 The decrease in amortization of acquired license technologies for the three months ended March 31, 2023 in comparison to the same period in 2022 was primarily due to certain intangible assets acquired in connection with the Take Private being fully amortized during the three months ended March 31, 2022.

Investments

Investments	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Our short-term investments as of March 31, 2023 and December 31, 2022 consist of available-for-sale securities, such as U.S. Treasury securities, corporate bonds, commercial paper and asset-backed securities. The following table summarizes our short-term investments: March 31, 2023 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 3,014 $ — $ (13) $ 3,001 Corporate bonds 8,584 — (32) 8,552 Total short-term investments $ 11,598 $ — $ (45) $ 11,553 December 31, 2022 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 6,013 $ — $ (43) $ 5,970 Corporate bonds 19,887 — (105) 19,782 Commercial paper 798 — — 798 Asset-backed securities 565 — (1) 564 Total short-term investments $ 27,263 $ — $ (149) $ 27,114 The following table summarizes the fair value of our available-for-sale securities with unrealized losses aggregated by type of investment instrument and length of time those securities have been in a continuous unrealized loss position: March 31, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) As of March 31, 2023 U.S. Treasury securities $ 3,001 $ (13) $ — $ — $ 3,001 $ (13) Corporate bonds 8,552 (32) — — 8,552 (32) $ 11,553 $ (45) $ — $ — $ 11,553 $ (45) December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) As of December 31, 2022 U.S. Treasury securities $ 5,970 $ (43) $ — $ — $ 5,970 $ (43) Corporate bonds 19,782 (105) — — 19,782 (105) Asset-backed securities 564 (1) — — 564 (1) $ 26,316 $ (149) $ — $ — $ 26,316 $ (149) The following table summarizes the contractual underlying maturities of our available-for-sale securities: March 31, 2023 Cost Fair Value (in thousands) Due in one year or less $ 11,598 $ 11,553

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The following table reflects the changes in goodwill for the three months ended March 31, 2023: (in thousands) Balance at December 31, 2022 $ 2,380,059 Foreign currency translation 8,940 Balance at March 31, 2023 $ 2,388,999

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table summarizes the fair value of our financial assets that were measured on a recurring basis as of March 31, 2023 and December 31, 2022. There have been no transfers between fair value measurement levels during the three months ended March 31, 2023. Fair Value Measurements at March 31, 2023 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 73,771 $ — $ — $ 73,771 Total cash equivalents 73,771 — — 73,771 Short-term investments: U.S. Treasury securities — 3,001 — 3,001 Corporate bonds — 8,552 — 8,552 Total short-term investments — 11,553 — 11,553 Total assets $ 73,771 $ 11,553 $ — $ 85,324 Fair Value Measurements at December 31, 2022 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 48,833 $ — $ — $ 48,833 Total cash equivalents 48,833 — — 48,833 Short-term investments: US Treasury bonds — 5,970 — 5,970 Corporate bonds — 19,782 — 19,782 Commercial paper — 798 — 798 Asset backed securities — 564 — 564 Total short-term investments — 27,114 — 27,114 Total assets $ 48,833 $ 27,114 $ — $ 75,947 As of March 31, 2023 and December 31, 2022, 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 for additional information regarding our debt.

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt The following table summarizes information relating to our debt: March 31, December 31, 2023 2022 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2027 1,245,000 8.81 % 1,245,000 8.32 % Total principal amount 1,245,000 1,245,000 Unamortized discount and debt issuance costs (40,274) (42,897) Total debt 1,204,726 1,202,103 Less: Current portion of long-term debt (12,450) (9,338) Total long-term debt $ 1,192,276 $ 1,192,765 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: • a $1.245 billion U.S. dollar term loan, or First Lien Term Loan, with a final maturity date of February 5, 2027; and • a $130.0 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 $112.5 million multicurrency tranche and (ii) a $17.5 million tranche available only in U.S. dollars, with a final maturity of the earlier of: November 23, 2027 or, in the event that there are more than $150.0 million of the First Lien Term Loan outstanding on the 91st day prior to maturity date of the first lien term loans, the 91st day prior to the maturity date of the First Lien Term Loan. Borrowings under our Revolving Credit Facility bear interest at a floating rate which is, at our option, either (1) a secured overnight financing rate (“SOFR”) 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 SOFR 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 SOFR rate for a specified interest period plus an applicable margin of 4.00% or (2) a base rate plus an applicable margin of 3.00%. The SOFR rate applicable to the First Lien Term Loan is subject to a “floor” of 0.0%. 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 SOFR rate plus 1.0% per annum. The First Lien Term Loan requires equal quarterly repayments equal to 0.25% of the 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 March 31, 2023, we were in compliance with all covenants of the First Lien Credit Agreement.

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Loss Per Share	Loss Per Share A reconciliation of the number of shares in the calculation of basic and diluted loss per share follows: Three Months Ended March 31, 2023 2022 (in thousands) Basic loss per share Numerator: Net loss $ (5,621) $ (4,659) Earnings allocated to unvested restricted stock — — Net loss available to common stockholders $ (5,621) $ (4,659) Denominator: Weighted-average shares used in computing basic net loss per share 162,773 159,847 Diluted net loss per share Numerator: Net loss available to common stockholders $ (5,621) $ (4,659) Denominator: Weighted-average shares used in computing basic loss per share 162,773 159,847 Add dilutive impact of employee equity plans — — Weighted-average shares used in computing diluted net loss per share 162,773 159,847 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net 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 March 31, 2023 2022 (in thousands) Total anti-dilutive shares 12,699 9,618

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended March 31, 2023 and 2022, we recorded income tax expense of $12.8 million and income tax benefit of $0.2 million, respectively, resulting in an effective tax rate of 178.5% and 3.2%, respectively. The increase in the effective tax rate for the three months ended March 31, 2023 compared to the same period in 2022 was primarily due to the increase in income before income taxes and an increase in the valuation allowance resulting from deduction limitations associated with the U.S. Tax Cuts and Jobs Act of 2017. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. At March 31, 2023, we had accrued interest and penalties related to unrecognized tax benefits of approximately $3.9 million.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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. Expenses Incurred We recorded pre-tax expenses (proceeds) related to the Cyber Incident as follows: Three Months Ended March 31, 2023 2022 (in thousands) Cost of recurring revenue $ — $ 156 Sales and marketing — 68 Research and development — 2 General and administrative 2,028 5,490 Total gross expenses related to the Cyber Incident 2,028 5,716 Less: proceeds received or expected to be received under our insurance coverage (9,798) — Total net expenses (proceeds) related to the Cyber Incident $ (7,770) $ 5,716 General and administrative expense is presented net of insurance proceeds received and expected insurance proceeds for costs we believe are reimbursable and probable of recovery in our condensed consolidated statements of operations. Expenses include one-time costs to investigate and remediate the Cyber Incident, costs of lawsuits and investigations related thereto, including settlement costs and legal and other professional services, and consulting services 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 multiple lawsuits and investigations. A consolidated putative class action lawsuit alleging violations of the federal securities laws is 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 between October 18, 2018 and December 17, 2020 and seek unspecified monetary damages, costs and attorneys’ fees. On October 28, 2022, the parties entered into a binding settlement term sheet with respect to the securities class action lawsuit and lead plaintiff filed the parties’ Stipulation and Agreement of Settlement with the court on December 8, 2022. The settlement is subject to certain conditions, including notice to potential class members and final court approval. On February 8, 2023, the court granted preliminary approval of the settlement, and on March 2, 2023, we paid $26 million to fund claims submitted by class members, the legal fees of plaintiffs’ counsel and the costs of administering the settlement. The settlement resolves all claims asserted against us and the other named defendants in connection with the class action litigation and contains provisions that the settlement does not constitute an admission, concession, or finding of any fault, liability, or wrongdoing of any kind by us or any defendant. There can be no assurance that the settlement agreement will be approved by the court. The settlement sum was authorized and approved by our insurers, and if the settlement agreement is approved by the court, we expect that the settlement payment will be reimbursed entirely by applicable directors’ and officers’ liability insurance. In addition, two shareholder derivative actions have been filed, purportedly on behalf of the Company, one in the Western District of Texas and one in the Delaware Court of Chancery, in each case asserting breach of duty and other claims against certain of our current and former officers and directors in connection with the Cyber Incident. On September 30, 2022, the Company and other named defendants filed a motion to dismiss the case filed in the Western District of Texas, which motion remains pending before that court. On October 13, 2022, the Delaware Court of Chancery entered an order dismissing the case in that court with prejudice, and on November 1, 2022 the plaintiffs filed an appeal of such order. We dispute the allegations in these complaints and intend to defend against the claims. In addition, there are several pending investigations and inquiries by U.S. regulatory authorities related to the Cyber Incident, including from the Department of Justice and the SEC. 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. On October 28, 2022, the enforcement staff of the SEC provided us with a “Wells Notice” relating to its investigation into the Cyber Incident. The Wells Notice states that the SEC staff has made a preliminary determination to recommend that the SEC file an enforcement action against us alleging violations of certain provisions of the U.S. federal securities laws with respect to our cybersecurity disclosures and public statements, as well as our internal controls and disclosure controls and procedures. A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. We maintain that our disclosures, public statements, controls and procedures were appropriate, and we currently intend to continue to vigorously defend ourselves, including against any enforcement action or other charges. If the SEC were to authorize an action against us, it could seek an order enjoining us from engaging in future violations of provisions of the federal securities laws subject to the action, imposing civil monetary penalties and/or providing for other equitable relief within the SEC’s authority. The results of the Wells Notice process and any corresponding enforcement action and the costs, timing and other potential consequences of responding and complying therewith are unknown at this time. While we believe it is reasonably possible that we could incur losses associated with these proceedings and investigations, other than with respect to the securities class action settlement, 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 fact that alleged damages have not been specified 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, which renews annually. In addition, we maintain $50 million of directors and officers liability insurance coverage to reduce our exposure to our indemnification obligations for certain expenses incurred by our directors and officers, including as a result of the legal proceedings related to the Cyber Incident such as the securities class action settlement, which renews annually. As of March 31, 2023, we have a loss recovery asset of $40.0 million recorded for insurance proceeds deemed probable of recovery which is included in prepaid and other current assets in our condensed consolidated balance sheet. Indemnification In connection with the separation and distribution of our managed service provider (“N-able”) business into a newly created and separately traded public company, N-able, Inc. (“Separation”), we entered into a separation and distribution agreement and related agreements with N‑able to govern the Separation and related transactions and the relationship between the respective companies going forward. The separation and distribution agreement provides for certain indemnity and liability obligations, including that we will indemnify N-able for all liabilities based upon, arising out of or related to the Cyber Incident other than certain specified expenses for which N-able will be responsible. The amount of the indemnification liability, if any, cannot be determined and has not been recorded in our condensed consolidated financial statements as of March 31, 2023. 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.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
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 ("GAAP"), and the reporting regulations of the Securities and Exchange Commission (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, 2022.
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 Issued Accounting Pronouncements	During the three months ended March 31, 2023, there have been no recently issued accounting pronouncements that are expected to have a material impact to our financial position, results of operations or cash flows.
Goodwill	Our goodwill was derived from the take private transaction in early 2016 ("Take Private") and acquisitions where the purchase price exceeded the fair value of the net identifiable assets acquired. Goodwill is tested for impairment at least annually during the fourth quarter or more frequently if events or circumstances indicate it is more likely than not that the fair value of our reporting unit is less than its carrying value. During the year ended December 31, 2022, we experienced declines in our market capitalization and after considering the impact of current macroeconomic conditions on the assumptions used in determining the fair value of our reporting unit, determined it appropriate to perform interim quantitative assessments of our reporting unit as of June 30, 2022 and September 30, 2022. As a result of the interim goodwill impairment analyses, our reporting unit was determined to have a carrying value that exceeded its fair value and therefore, we recorded non-cash goodwill impairment charges of $612.4 million and $278.7 million for the three months ended June 30, 2022 and September 30, 2022, respectively. Throughout the period since the quantitative assessment on September 30, 2022, there has been no unanticipated changes or negative indicators in the qualitative factors or valuation assumptions that would negatively impact the fair value of our reporting unit. As such, we determined there were no indicators of impairment and that it was more likely than not that the fair value of our reporting unit was greater than its carrying value at March 31, 2023. Fair value determination of our reporting unit requires considerable judgment and is sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the quantitative goodwill impairment tests will prove to be an accurate prediction of future results. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value of our reporting unit may include such items as: (i) volatility in the equity and debt markets or other macroeconomic factors, (ii) an increase in the weighted-average cost of capital due to further increases in interest rates, (iii) timing and success of new products introduced in our evolution from monitoring to observability, (iv) the ongoing impact of the Cyber Incident including a decrease in future cash flows due to lower than expected license sales or maintenance renewals, higher than expected customer attrition, higher than estimated costs to respond and adverse loss exposure from claims, fines or penalties resulting from government investigations and litigation; and (v) fluctuations in foreign currency exchange rates that may negatively impact our reported results of operations. Accordingly, if our current cash flow assumptions are not realized, we experience further sustained declines in our stock price or market capitalization, or there are further declines in the market multiplies used in our analysis, it is possible that an additional impairment charge may be recorded in the future, which could be material.
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. We determine the fair value of our available-for-sale securities based on inputs obtained from multiple pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. However, we classify all of our available-for-sale securities as being valued using Level 2 inputs. The valuation techniques used to determine the fair value of our financial instruments having Level 2 inputs are derived from unadjusted, non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models. Our procedures include controls to ensure that appropriate fair values are recorded by a review of the valuation methods and assumptions. 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.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
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 Unrealized Gain (Loss) on Investments, Accumulated Other Comprehensive (in thousands) Balance at December 31, 2022 $ (47,996) $ (118) $ (48,114) Other comprehensive gain before reclassification 10,383 83 10,466 Amount reclassified from accumulated other comprehensive income (loss) — — — Net current period other comprehensive income 10,383 83 10,466 Balance at March 31, 2023 $ (37,613) $ (35) $ (37,648)
Details of Total Deferred Revenue Balance	Details of our total deferred revenue balance are as follow s: Total Deferred Revenue (in thousands) Balance at December 31, 2022 $ 376,486 Deferred revenue recognized (130,163) Additional amounts deferred 139,263 Balance at March 31, 2023 $ 385,586
Remaining Performance Obligations For Revenue Recognition	We expect to recognize revenue related to these remaining performance obligations as of March 31, 2023 as follows: Revenue Recognition Expected by Period Total Less than 1-3 years More than (in thousands) Expected recognition of deferred revenue $ 385,586 $ 343,594 $ 40,812 $ 1,180
Details of Contract Acquisition Cost	Details of our deferred commissions balance are as follow s: Deferred Commissions (in thousands) Balance at December 31, 2022 $ 22,540 Commissions capitalized 2,538 Amortization recognized (1,979) Balance at March 31, 2023 $ 23,099 March 31, December 31, 2023 2022 (in thousands) Classified as: Current $ 7,334 $ 6,936 Non-current 15,765 15,604 Total deferred commissions $ 23,099 $ 22,540
Amortization of Acquired Technologies	Amortization of Acquired Technologies. Amortization of acquired technologies included in cost of revenue relate to our licensed products and subscription offerings as follows: Three Months Ended March 31, 2023 2022 (in thousands) Amortization of acquired license technologies $ 922 $ 14,483 Amortization of acquired subscription technologies 2,514 2,744 Total amortization of acquired technologies $ 3,436 $ 17,227

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities Reconciliation	The following table summarizes our short-term investments: March 31, 2023 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 3,014 $ — $ (13) $ 3,001 Corporate bonds 8,584 — (32) 8,552 Total short-term investments $ 11,598 $ — $ (45) $ 11,553 December 31, 2022 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 6,013 $ — $ (43) $ 5,970 Corporate bonds 19,887 — (105) 19,782 Commercial paper 798 — — 798 Asset-backed securities 565 — (1) 564 Total short-term investments $ 27,263 $ — $ (149) $ 27,114
Schedule of Available-for-Sale Securities in Continuous Unrealized Loss Position and Fair Value	The following table summarizes the fair value of our available-for-sale securities with unrealized losses aggregated by type of investment instrument and length of time those securities have been in a continuous unrealized loss position: March 31, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) As of March 31, 2023 U.S. Treasury securities $ 3,001 $ (13) $ — $ — $ 3,001 $ (13) Corporate bonds 8,552 (32) — — 8,552 (32) $ 11,553 $ (45) $ — $ — $ 11,553 $ (45) December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) As of December 31, 2022 U.S. Treasury securities $ 5,970 $ (43) $ — $ — $ 5,970 $ (43) Corporate bonds 19,782 (105) — — 19,782 (105) Asset-backed securities 564 (1) — — 564 (1) $ 26,316 $ (149) $ — $ — $ 26,316 $ (149)
Schedule of Investments Classified by Contractual Maturity Date	The following table summarizes the contractual underlying maturities of our available-for-sale securities: March 31, 2023 Cost Fair Value (in thousands) Due in one year or less $ 11,598 $ 11,553

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table reflects the changes in goodwill for the three months ended March 31, 2023: (in thousands) Balance at December 31, 2022 $ 2,380,059 Foreign currency translation 8,940 Balance at March 31, 2023 $ 2,388,999

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 and December 31, 2022. There have been no transfers between fair value measurement levels during the three months ended March 31, 2023. Fair Value Measurements at March 31, 2023 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 73,771 $ — $ — $ 73,771 Total cash equivalents 73,771 — — 73,771 Short-term investments: U.S. Treasury securities — 3,001 — 3,001 Corporate bonds — 8,552 — 8,552 Total short-term investments — 11,553 — 11,553 Total assets $ 73,771 $ 11,553 $ — $ 85,324 Fair Value Measurements at December 31, 2022 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 48,833 $ — $ — $ 48,833 Total cash equivalents 48,833 — — 48,833 Short-term investments: US Treasury bonds — 5,970 — 5,970 Corporate bonds — 19,782 — 19,782 Commercial paper — 798 — 798 Asset backed securities — 564 — 564 Total short-term investments — 27,114 — 27,114 Total assets $ 48,833 $ 27,114 $ — $ 75,947

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Summary of Debt	The following table summarizes information relating to our debt: March 31, December 31, 2023 2022 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2027 1,245,000 8.81 % 1,245,000 8.32 % Total principal amount 1,245,000 1,245,000 Unamortized discount and debt issuance costs (40,274) (42,897) Total debt 1,204,726 1,202,103 Less: Current portion of long-term debt (12,450) (9,338) Total long-term debt $ 1,192,276 $ 1,192,765

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Reconciliation of Shares in Calculation of Basic and Diluted Loss Per Share	A reconciliation of the number of shares in the calculation of basic and diluted loss per share follows: Three Months Ended March 31, 2023 2022 (in thousands) Basic loss per share Numerator: Net loss $ (5,621) $ (4,659) Earnings allocated to unvested restricted stock — — Net loss available to common stockholders $ (5,621) $ (4,659) Denominator: Weighted-average shares used in computing basic net loss per share 162,773 159,847 Diluted net loss per share Numerator: Net loss available to common stockholders $ (5,621) $ (4,659) Denominator: Weighted-average shares used in computing basic loss per share 162,773 159,847 Add dilutive impact of employee equity plans — — Weighted-average shares used in computing diluted net loss per share 162,773 159,847
Weighted Average Shares Excluded From Computation of the Diluted Net Loss	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net 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 March 31, 2023 2022 (in thousands) Total anti-dilutive shares 12,699 9,618

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Loss Contingencies Pre-Tax Expenses (Proceeds)	We recorded pre-tax expenses (proceeds) related to the Cyber Incident as follows: Three Months Ended March 31, 2023 2022 (in thousands) Cost of recurring revenue $ — $ 156 Sales and marketing — 68 Research and development — 2 General and administrative 2,028 5,490 Total gross expenses related to the Cyber Incident 2,028 5,716 Less: proceeds received or expected to be received under our insurance coverage (9,798) — Total net expenses (proceeds) related to the Cyber Incident $ (7,770) $ 5,716

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022
Accounting Policies [Abstract]
Goodwill impairment	$ 278.7	$ 612.4

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,369,653	$ 2,287,896
Other comprehensive gain before reclassification	10,466
Amount reclassified from accumulated other comprehensive income (loss)	0
Other comprehensive income (loss)	10,466	(16,895)
Balance at end of period	1,385,800	2,277,378
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(48,114)	1,306
Balance at end of period	(37,648)	$ (15,589)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(47,996)
Other comprehensive gain before reclassification	10,383
Amount reclassified from accumulated other comprehensive income (loss)	0
Other comprehensive income (loss)	10,383
Balance at end of period	(37,613)
Unrealized Gain (Loss) on Investments, Net of Tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(118)
Other comprehensive gain before reclassification	83
Amount reclassified from accumulated other comprehensive income (loss)	0
Other comprehensive income (loss)	83
Balance at end of period	$ (35)

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Movement in Deferred Revenue [Roll Forward]
Balance at December 31, 2022	$ 376,486
Deferred revenue recognized	(130,163)
Additional amounts deferred	139,263
Balance at March 31, 2023	$ 385,586

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Expected Recognition of Deferred Revenue (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 385,586
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 343,594
Remaining revenue performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 40,812
Remaining revenue performance obligation, expected timing of satisfaction, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 1,180
Remaining revenue performance obligation, expected timing of satisfaction, period

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Change in Contract Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Deferred Commissions, Roll Forward [Roll Forward]
Balance at December 31, 2022	$ 22,540
Commissions capitalized	2,538
Amortization recognized	(1,979)
Balance at March 31, 2023	23,099
Current	7,334	$ 6,936
Non-current	15,765	15,604
Total deferred commissions	$ 23,099	$ 22,540

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Product Information [Line Items]
Total amortization of acquired technologies	$ 3,436	$ 17,227
License
Product Information [Line Items]
Total amortization of acquired technologies	922	14,483
Subscription
Product Information [Line Items]
Total amortization of acquired technologies	$ 2,514	$ 2,744

Investments - Available-For-Sal

Investments - Available-For-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Short-term investments:
Cost	$ 11,598	$ 27,263
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(45)	(149)
Fair Value	11,553	27,114
U.S. Treasury securities
Short-term investments:
Cost	3,014	6,013
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(13)	(43)
Fair Value	3,001	5,970
Corporate bonds
Short-term investments:
Cost	8,584	19,887
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(32)	(105)
Fair Value	$ 8,552	19,782
Commercial paper
Short-term investments:
Cost		798
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		798
Asset-backed securities
Short-term investments:
Cost		565
Gross Unrealized Gains		0
Gross Unrealized Losses		(1)
Fair Value		$ 564

Investments - Summary of Fair V

Investments - Summary of Fair Value Of Available-For-Sale Securities With Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale securities less than 12 months, Fair Value	$ 11,553	$ 26,316
Available-for-sale securities less than 12 months, Gross Unrealized Losses	(45)	(149)
Available-for-sale securities, 12 Months or Greater, Fair Value	0	0
Available-for-sale securities, 12 Months or Longer, Gross Unrealized Losses	0	0
Available-for-sale securities, Total Fair Value	11,553	26,316
Available-for-sale securities Total Gross Unrealized Loss	(45)	(149)
U.S. Treasury securities
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale securities less than 12 months, Fair Value	3,001	5,970
Available-for-sale securities less than 12 months, Gross Unrealized Losses	(13)	(43)
Available-for-sale securities, 12 Months or Greater, Fair Value	0	0
Available-for-sale securities, 12 Months or Longer, Gross Unrealized Losses	0	0
Available-for-sale securities, Total Fair Value	3,001	5,970
Available-for-sale securities Total Gross Unrealized Loss	(13)	(43)
Corporate bonds
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale securities less than 12 months, Fair Value	8,552	19,782
Available-for-sale securities less than 12 months, Gross Unrealized Losses	(32)	(105)
Available-for-sale securities, 12 Months or Greater, Fair Value	0	0
Available-for-sale securities, 12 Months or Longer, Gross Unrealized Losses	0	0
Available-for-sale securities, Total Fair Value	8,552	19,782
Available-for-sale securities Total Gross Unrealized Loss	$ (32)	(105)
Asset-backed securities
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale securities less than 12 months, Fair Value		564
Available-for-sale securities less than 12 months, Gross Unrealized Losses		(1)
Available-for-sale securities, 12 Months or Greater, Fair Value		0
Available-for-sale securities, 12 Months or Longer, Gross Unrealized Losses		0
Available-for-sale securities, Total Fair Value		564
Available-for-sale securities Total Gross Unrealized Loss		$ (1)

Investments - Maturity Dates Of

Investments - Maturity Dates Of Available-For-Sale Securities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Cost
Due in one year or less	$ 11,598
Fair Value
Due in one year or less	$ 11,553

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 2,380,059
Foreign currency translation	8,940
Balance at end of period	$ 2,388,999

Goodwill - Narrative (Details)

Goodwill - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Accumulated goodwill impairment	$ 895.1

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 73,771	$ 48,833
Short-term investments:	11,553	27,114
Total assets	85,324	75,947
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	3,001	5,970
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	8,552	19,782
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		798
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		564
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	73,771	48,833
Short-term investments:	0	0
Total assets	73,771	48,833
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Short-term investments:	11,553	27,114
Total assets	11,553	27,114
Significant Other Observable Inputs (Level 2) | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	3,001	5,970
Significant Other Observable Inputs (Level 2) | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	8,552	19,782
Significant Other Observable Inputs (Level 2) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		798
Significant Other Observable Inputs (Level 2) | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		564
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Short-term investments:	0	0
Total assets	0	0
Significant Unobservable Inputs (Level 3) | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Significant Unobservable Inputs (Level 3) | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Significant Unobservable Inputs (Level 3) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		0
Significant Unobservable Inputs (Level 3) | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:		0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	73,771	48,833
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 equivalents:	73,771	48,833
Money market funds | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Money market funds | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 0	$ 0

Debt - Summary of Debt (Details

Debt - Summary of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amount
Total principal amount	$ 1,245,000	$ 1,245,000
Unamortized discount and debt issuance costs	(40,274)	(42,897)
Total debt	1,204,726	1,202,103
Less: Current portion of long-term debt	(12,450)	(9,338)
Total long-term debt	1,192,276	1,192,765
Secured Debt | First Lien Term Loan (as amended) due Feb 2027
Amount
Total principal amount	$ 1,245,000	$ 1,245,000
Effective Rate	8.81%	8.32%
Revolving credit facility | Line of Credit
Amount
Total principal amount	$ 0	$ 0
Effective Rate	0%	0%

Debt - Narrative (Details)

Debt - Narrative (Details) - Credit Suisse	3 Months Ended
	Mar. 31, 2023 USD ($)
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1%
Federal Funds Effective Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Line of Credit | Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 130,000,000
Commitment fee percentage	0.50%
Covenant, commitment fee percentage, net leverage ratio, reduction per annum	0.375%
Covenant, borrowing percentage of commitments, maximum	35%
Line of Credit | Revolving credit facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Covenant, floor interest rate	0%
Line of Credit | Revolving credit facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 35,000,000
First Lien Term Loan (as amended) due Feb 2027 | Secured Debt
Debt Instrument [Line Items]
Face amount of debt	$ 1,245,000,000
Quarterly periodic payment, as a percentage of original principal	0.25%
Covenant, leverage ratio, maximum	7.40
First Lien Term Loan (as amended) due Feb 2027 | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	4%
Covenant, floor interest rate	0%
First Lien Term Loan (as amended) due Feb 2027 | Secured Debt | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	3%
Multi-Currency Tranche | Line of Credit | Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 112,500,000
Single Currency Tranche | Line of Credit | Revolving credit facility | US Dollars
Debt Instrument [Line Items]
Maximum borrowing capacity	17,500,000
First Lien Term Loan Mature 91 Days Prior to Maturity Date | Secured Debt
Debt Instrument [Line Items]
Maturity date covenant, amount outstanding threshold	$ 150,000,000

Loss Per Share - Reconciliation

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
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss	$ (5,621)	$ (4,659)
Earnings allocated to unvested restricted stock	0	0
Net loss available to common stockholders	$ (5,621)	$ (4,659)
Denominator:
Weighted-average shares used in computing basic net loss per share (in shares)	162,773	159,847
Net loss available to common stockholders	$ (5,621)	$ (4,659)
Add dilutive impact of employee equity plans (in shares)	0	0
Weighted-average shares used in computing diluted net loss per share (in shares)	162,773	159,847

Loss Per Share - Weighted Avera

Loss Per Share - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Total anti-dilutive shares (in shares)	12,699	9,618

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 12,784	$ (156)
Effective income tax rate	178.50%	3.20%
Unrecognized tax benefits, income tax penalties and interest accrued	$ 3,900

Commitments and Contingencies -

Commitments and Contingencies - Loss Contingencies Pre-Tax Expenses (Proceeds) (Details) - Cyber Incident - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Loss Contingencies [Line Items]
Total gross expenses related to the Cyber Incident	$ 2,028	$ 5,716
Less: proceeds received or expected to be received under our insurance coverage	(9,798)	0
Total net expenses (proceeds) related to the Cyber Incident	(7,770)	5,716
Cost of recurring revenue
Loss Contingencies [Line Items]
Total gross expenses related to the Cyber Incident	0	156
Sales and marketing
Loss Contingencies [Line Items]
Total gross expenses related to the Cyber Incident	0	68
Research and development
Loss Contingencies [Line Items]
Total gross expenses related to the Cyber Incident	0	2
General and administrative
Loss Contingencies [Line Items]
Total gross expenses related to the Cyber Incident	$ 2,028	$ 5,490

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details) - Cyber Incident $ in Millions		3 Months Ended
	Mar. 02, 2023 USD ($)	Mar. 31, 2023 USD ($)	Oct. 28, 2022 shareholderDerivativeAction
Loss Contingencies [Line Items]
Loss contingency, damages paid, value	$ 26
Shareholder derivative actions filed | shareholderDerivativeAction			2
Cybersecurity insurance coverage amount		$ 15
Loss contingency, receivable, proceeds		15
Director and Officer liability insurance		50
Loss contingency, receivable		$ 40
TEXAS
Loss Contingencies [Line Items]
Shareholder derivative actions filed | shareholderDerivativeAction			1
DELAWARE
Loss Contingencies [Line Items]
Shareholder derivative actions filed | shareholderDerivativeAction			1