SolarWinds (SWI) 10-Q 1 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Oct. 28, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
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	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		170,571,741
Entity Central Index Key	0001739942
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 193,017	$ 284,695
Short-term investments	6,176	4,477
Accounts receivable, net of allowances of $932 and $743 as of September 30, 2024 and December 31, 2023, respectively	100,188	103,455
Income tax receivable	1,426	459
Prepaid and other current assets	25,032	28,241
Total current assets	325,839	421,327
Property and equipment, net	17,210	19,669
Operating lease assets	34,325	43,776
Deferred taxes	137,931	133,224
Goodwill	2,405,876	2,397,545
Intangible assets, net	143,764	183,688
Other assets, net	53,479	51,686
Total assets	3,118,424	3,250,915
Current liabilities:
Accounts payable	9,406	9,701
Accrued liabilities and other	44,348	56,643
Current operating lease liabilities	14,224	14,925
Accrued interest payable	262	942
Income taxes payable	44,335	29,240
Current portion of deferred revenue	335,384	344,907
Current debt obligation	9,267	12,450
Total current liabilities	457,226	468,808
Long-term liabilities:
Deferred revenue, net of current portion	43,548	42,070
Non-current deferred taxes	1,955	1,933
Non-current operating lease liabilities	39,900	49,848
Other long-term liabilities	15,586	55,278
Long-term debt, net of current portion	1,195,846	1,190,934
Total liabilities	1,754,061	1,808,871
Commitments and contingencies (Note 9)
Stockholders’ equity:
Common stock, $0.001 par value: 1,000,000,000 shares authorized and 170,541,946 and 166,637,506 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	171	167
Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	2,561,560	2,688,854
Accumulated other comprehensive loss	(17,727)	(28,103)
Accumulated deficit	(1,179,641)	(1,218,874)
Total stockholders’ equity	1,364,363	1,442,044
Total liabilities and stockholders’ equity	$ 3,118,424	$ 3,250,915

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Allowance for credit loss, accounts receivable	$ 932	$ 743
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)	170,541,946	166,637,506
Common stock, outstanding (in shares)	170,541,946	166,637,506
Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue:
Total revenue	$ 200,025	$ 189,591	$ 586,586	$ 560,601
Cost of revenue:
Cost of recurring revenue	19,692	17,957	56,345	54,884
Amortization of acquired technologies	1,321	3,412	5,752	10,273
Total cost of revenue	21,013	21,369	62,097	65,157
Gross profit	179,012	168,222	524,489	495,444
Operating expenses:
Sales and marketing	56,954	59,675	167,179	185,429
Research and development	26,354	27,308	80,581	75,180
General and administrative	32,563	31,101	94,192	91,120
Amortization of acquired intangibles	11,457	11,613	34,468	36,712
Total operating expenses	127,328	129,697	376,420	388,441
Operating income	51,684	38,525	148,069	107,003
Other income (expense):
Interest expense, net	(25,970)	(29,314)	(80,847)	(87,338)
Other expense, net	(704)	(121)	(714)	(197)
Total other expense	(26,674)	(29,435)	(81,561)	(87,535)
Income before income taxes	25,010	9,090	66,508	19,468
Income tax expense	12,440	12,262	27,275	28,001
Net income (loss)	12,570	(3,172)	39,233	(8,533)
Net income (loss) available to common stockholders	12,570	(3,172)	39,233	(8,533)
Net income (loss) available to common stockholders	$ 12,570	$ (3,172)	$ 39,233	$ (8,533)
Net income (loss) available to common stockholders per share:
Basic income (loss) per share (in dollars per share)	$ 0.07	$ (0.02)	$ 0.23	$ (0.05)
Diluted income (loss) per share (in dollars per share)	$ 0.07	$ (0.02)	$ 0.23	$ (0.05)
Weighted-average shares used to compute net income (loss) available to common stockholders per share:
Shares used in computation of basic income (loss) per share (in shares)	169,971	165,275	168,724	164,089
Shares used in computation of diluted income (loss) per share (in shares)	173,900	165,275	173,071	164,089
Recurring Revenue
Revenue:
Total revenue	$ 187,095	$ 175,179	$ 547,911	$ 513,459
Subscription
Revenue:
Total revenue	76,463	58,764	215,253	166,510
Cost of revenue:
Amortization of acquired technologies	396	2,488	2,981	7,503
Maintenance
Revenue:
Total revenue	110,632	116,415	332,658	346,949
License
Revenue:
Total revenue	12,930	14,412	38,675	47,142
Cost of revenue:
Amortization of acquired technologies	$ 925	$ 924	$ 2,771	$ 2,770

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 12,570	$ (3,172)	$ 39,233	$ (8,533)
Other comprehensive income (loss):
Foreign currency translation adjustment	31,039	(18,393)	10,375	(10,960)
Unrealized gains (losses) on investments, net of income tax expense (benefit) of $— and $— for the three months ended September 30, 2024 and 2023, respectively, and $— and $31 for the nine months ended September 30, 2024 and 2023, respectively	1	(2)	1	118
Other comprehensive income (loss)	31,040	(18,395)	10,376	(10,842)
Comprehensive income (loss)	$ 43,610	$ (21,567)	$ 49,609	$ (19,375)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Income tax expense (benefit) on investment unrealized gain (loss)	$ 0	$ 0	$ 0	$ 31

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, 2022		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	(10,960)			(10,960)
Unrealized gain (loss) on investments, net of taxes	118			118
Net income (loss)	(8,533)				(8,533)
Comprehensive income (loss)	(19,375)
Exercise of stock options (in shares)		123,000
Exercise of stock options	114		114
Restricted stock units issued, net of shares withheld for taxes (in shares)		3,346,000
Restricted stock units issued, net of shares withheld for taxes	(14,696)	$ 4	(14,700)
Issuance of stock (in shares)		3,000
Issuance of stock	18		18
Issuance of stock under employee stock purchase plan (in shares)		417,000
Issuance of stock under employee stock purchase plan	3,377		3,377
Stock-based compensation	55,857		55,857
Balance at end of period (in shares) at Sep. 30, 2023		165,818,000
Balance at end of period at Sep. 30, 2023	1,394,948	$ 166	2,672,036	(58,956)	(1,218,298)
Balance at beginning of period (in shares) at Jun. 30, 2023		164,711,000
Balance at beginning of period at Jun. 30, 2023	1,398,656	$ 165	2,654,178	(40,561)	(1,215,126)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(18,393)			(18,393)
Unrealized gain (loss) on investments, net of taxes	(2)			(2)
Net income (loss)	(3,172)				(3,172)
Comprehensive income (loss)	(21,567)
Exercise of stock options (in shares)		2,000
Exercise of stock options	2		2
Restricted stock units issued, net of shares withheld for taxes (in shares)		886,000
Restricted stock units issued, net of shares withheld for taxes	(4,529)	$ 1	(4,530)
Issuance of stock under employee stock purchase plan (in shares)		219,000
Issuance of stock under employee stock purchase plan	1,666		1,666
Stock-based compensation	20,720		20,720
Balance at end of period (in shares) at Sep. 30, 2023		165,818,000
Balance at end of period at Sep. 30, 2023	$ 1,394,948	$ 166	2,672,036	(58,956)	(1,218,298)
Balance at beginning of period (in shares) at Dec. 31, 2023	166,637,506	166,638,000
Balance at beginning of period at Dec. 31, 2023	$ 1,442,044	$ 167	2,688,854	(28,103)	(1,218,874)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	10,375			10,375
Unrealized gain (loss) on investments, net of taxes	1			1
Net income (loss)	39,233				39,233
Comprehensive income (loss)	49,609
Exercise of stock options (in shares)		12,000
Exercise of stock options	42		42
Restricted stock units issued, net of shares withheld for taxes (in shares)		3,568,000
Restricted stock units issued, net of shares withheld for taxes	(20,516)	$ 4	(20,520)
Issuance of stock under employee stock purchase plan (in shares)		324,000
Issuance of stock under employee stock purchase plan	3,262		3,262
Special dividend paid ($1.00 per share)	(168,162)		(168,162)
Stock-based compensation	$ 58,084		58,084
Balance at end of period (in shares) at Sep. 30, 2024	170,541,946	170,542,000
Balance at end of period at Sep. 30, 2024	$ 1,364,363	$ 171	2,561,560	(17,727)	(1,179,641)
Balance at beginning of period (in shares) at Jun. 30, 2024		169,377,000
Balance at beginning of period at Jun. 30, 2024	1,305,309	$ 169	2,546,118	(48,767)	(1,192,211)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	31,039			31,039
Unrealized gain (loss) on investments, net of taxes	1			1
Net income (loss)	12,570				12,570
Comprehensive income (loss)	43,610
Exercise of stock options (in shares)		3,000
Exercise of stock options	30		30
Restricted stock units issued, net of shares withheld for taxes (in shares)		1,006,000
Restricted stock units issued, net of shares withheld for taxes	(6,246)	$ 2	(6,248)
Issuance of stock under employee stock purchase plan (in shares)		156,000
Issuance of stock under employee stock purchase plan	1,668		1,668
Stock-based compensation	$ 19,992		19,992
Balance at end of period (in shares) at Sep. 30, 2024	170,541,946	170,542,000
Balance at end of period at Sep. 30, 2024	$ 1,364,363	$ 171	$ 2,561,560	$ (17,727)	$ (1,179,641)

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income (loss)	$ 39,233	$ (8,533)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	56,029	62,810
Provision for losses on accounts receivable	267	300
Stock-based compensation expense	57,221	55,103
Amortization of debt issuance costs	7,132	8,050
Deferred taxes	(2,921)	(1,532)
(Gain) loss on foreign currency exchange rates	377	(614)
Lease impairment charges	2,148	11,685
Other non-cash expenses	200	359
Changes in operating assets and liabilities:
Accounts receivable	3,331	7,908
Income taxes receivable	(925)	(171)
Prepaid and other assets	4,549	24,057
Accounts payable	(300)	(5,020)
Accrued liabilities and other	(16,211)	(25,025)
Accrued interest payable	(680)	47
Income taxes payable	(24,142)	(6,024)
Deferred revenue	(9,790)	(5,211)
Net cash provided by operating activities	115,518	118,189
Cash flows from investing activities
Purchases of investments	(25,064)	(3,948)
Maturities of investments	23,699	27,535
Purchases of property and equipment	(4,457)	(3,000)
Capitalized software development costs	(10,823)	(10,232)
Purchases of intangible assets	(234)	(172)
Other investing activities	0	564
Net cash provided by (used in) investing activities	(16,879)	10,747
Cash flows from financing activities
Proceeds from issuance of common stock under employee stock purchase plan	3,262	3,377
Repurchase of common stock	(20,516)	(14,696)
Exercise of stock options	42	114
Dividends paid	(168,162)	0
Proceeds from credit agreement	10,001	0
Repayments of borrowings from credit agreement	(10,001)	(6,226)
Payment of debt issuance costs	(5,657)	0
Net cash used in financing activities	(191,031)	(17,431)
Effect of exchange rate changes on cash and cash equivalents	714	(1,012)
Net increase (decrease) in cash and cash equivalents	(91,678)	110,493
Cash and cash equivalents
Beginning of period	284,695	121,738
End of period	193,017	232,231
Supplemental disclosure of cash flow information
Cash paid for interest	80,907	83,308
Cash paid for income taxes	51,704	32,477
Non-cash investing and financing transactions
Stock-based compensation included in capitalized software development costs	$ 863	$ 946

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares		9 Months Ended
	Apr. 15, 2024	Sep. 30, 2024
Statement of Stockholders' Equity [Abstract]
Special dividend paid (in dollars per share)	$ 1	$ 1

Organization and Nature of Oper

Organization and Nature of Operations	9 Months Ended
	Sep. 30, 2024
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, with a comprehensive and unified view of today’s modern, distributed and hybrid network environments. Our business is focused on building products 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	9 Months Ended
	Sep. 30, 2024
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, 2023. Special Cash Dividend On March 15, 2024, our Board of Directors declared a special cash dividend of $1.00 per share of common stock issued and outstanding as of April 3, 2024. The special cash dividend in the aggregate amount of $168.2 million was paid on April 15, 2024. Reclassifications Certain reclassifications have been made to the prior period condensed consolidated statements of cash flows to conform to the current period presentation. These reclassifications did not impact previously reported net income (loss), total assets or net operating, investing or financing cash flows. 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 In November 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The updated guidance expands segment disclosures by requiring additional disclosure of significant segment expenses included within segment profit or loss along with other segment information. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, and early adoption is permitted. We currently operate as a single reportable segment and while we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements, we will be required to provide enhanced segment disclosures beginning in our Annual Report for the fiscal year ended December 31, 2024 and subsequent interim periods. In December 2023, the FASB issued ASU No. 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2024 and early adoption permitted. We currently do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. Fair Value Measurements We apply the authoritative guidance on fair value measurements for financial assets and liabilities that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis. The guidance establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by us. Level 2: Inputs that are observable in the marketplace other than those inputs classified as Level 1. Level 3: Inputs that are unobservable in the marketplace and significant to the valuation. 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 condensed 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, 2023 $ (28,103) $ — $ (28,103) Other comprehensive income before reclassification 10,375 1 10,376 Amount reclassified from accumulated other comprehensive income (loss) — — — Net current period other comprehensive income 10,375 1 10,376 Balance at September 30, 2024 $ (17,728) $ 1 $ (17,727) Disaggregation of Revenue The following summarizes the revenue we recognized at a point in time and over time: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (in thousands) Revenue recognized at a point in time $ 47,539 $ 37,611 $ 134,482 $ 110,238 Revenue recognized over time 152,486 151,980 452,104 450,363 Total revenue recognized $ 200,025 $ 189,591 $ 586,586 $ 560,601 Deferred Revenue Details of our total deferred revenue balance are as follow s: Total Deferred Revenue (in thousands) Balance at December 31, 2023 $ 386,977 Deferred revenue recognized (404,072) Additional amounts deferred 396,027 Balance at September 30, 2024 $ 378,932 During the three and nine months ended September 30, 2024, we recognized revenue of approximately $71.0 million and $303.6 million, respectively, that was included in our deferred revenue balance reported as of December 31, 2023. We expect to recognize revenue related to these remaining performance obligations as of September 30, 2024 as follows: Revenue Recognition Expected by Period Total Less than 1-3 years More than (in thousands) Expected recognition of deferred revenue $ 378,932 $ 335,384 $ 42,482 $ 1,066 Deferred Commissions Details of our deferred commissions balance are as follow s: Deferred Commissions (in thousands) Balance at December 31, 2023 $ 23,563 Commissions capitalized 7,268 Amortization recognized (7,003) Balance at September 30, 2024 $ 23,828 September 30, December 31, 2024 2023 (in thousands) Classified as: Current $ 8,501 $ 7,926 Non-current 15,327 15,637 Total deferred commissions $ 23,828 $ 23,563 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 Nine Months Ended 2024 2023 2024 2023 (in thousands) Amortization of acquired license technologies $ 925 $ 924 $ 2,771 $ 2,770 Amortization of acquired subscription technologies 396 2,488 2,981 7,503 Total amortization of acquired technologies $ 1,321 $ 3,412 $ 5,752 $ 10,273

Investments

Investments	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Investments	Investments The following table summarizes our short-term investments: September 30, 2024 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 4,978 $ 1 $ — $ 4,979 Commercial paper 1,197 — — 1,197 Total short-term investments $ 6,175 $ 1 $ — $ 6,176 December 31, 2023 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 3,979 $ 1 $ — $ 3,980 Commercial paper 497 — — 497 Total short-term investments $ 4,476 $ 1 $ — $ 4,477 The following table summarizes the contractual underlying maturities of our available-for-sale securities: September 30, 2024 Cost Fair Value (in thousands) Due in one year or less $ 6,175 $ 6,176

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The following table reflects the changes in goodwill for the nine months ended September 30, 2024: (in thousands) Balance at December 31, 2023 $ 2,397,545 Foreign currency translation 8,331 Balance at September 30, 2024 $ 2,405,876 Accumulated goodwill impairment on our condensed consolidated balance sheet was $899.1 million and $897.2 million as of September 30, 2024 and December 31, 2023, respectively, and is impacted by changes in foreign currency exchange rates.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
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 September 30, 2024 and December 31, 2023. There have been no transfers between fair value measurement levels during the nine months ended September 30, 2024. Fair Value Measurements at September 30, 2024 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 77,412 $ — $ — $ 77,412 U.S. Treasury securities — 1,989 — 1,989 Commercial paper — 26,747 — 26,747 Total cash equivalents 77,412 28,736 — 106,148 Short-term investments: U.S. Treasury securities — 4,979 — 4,979 Commercial paper — 1,197 — 1,197 Total short-term investments — 6,176 — 6,176 Total assets $ 77,412 $ 34,912 $ — $ 112,324 Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 195,017 $ — $ — $ 195,017 U.S. Treasury securities — 1,987 — 1,987 Commercial paper — 31,586 — 31,586 Total cash equivalents 195,017 33,573 — 228,590 Short-term investments: U.S. Treasury securities — 3,980 — 3,980 Commercial paper — 497 — 497 Total short-term investments — 4,477 — 4,477 Total assets $ 195,017 $ 38,050 $ — $ 233,067 As of September 30, 2024 and December 31, 2023, 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	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt The following table summarizes information relating to our debt: September 30, December 31, 2024 2023 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2030 1,235,662 7.60 % 1,235,662 9.11 % Total principal amount 1,235,662 1,235,662 Unamortized discount and debt issuance costs (30,549) (32,278) Total debt 1,205,113 1,203,384 Less: Current portion of long-term debt (9,267) (12,450) Total long-term debt $ 1,195,846 $ 1,190,934 Senior Secured First Lien Credit Facilities In connection with the February 2016 take private transaction, we entered into a first lien credit agreement with a syndicate of institutional lenders and financial institutions (the "Credit Agreement"). In January 2024, we entered into Amendment No. 7 to the Credit Agreement to, among other things, (i) refinance the first lien term loans, (ii) decrease the applicable margin for the existing first lien term loans with respect to secured overnight financing rate (“SOFR”) borrowings and (iii) remove the first lien net leverage ratio component of determining the applicable margin. In July 2024, we entered into Amendment No. 8 to the Credit Agreement to, among other things, (i) extend the maturity date of the revolving credit facility, (ii) extend the maturity date of the first lien term loan and (iii) decrease the applicable margin for our existing first lien term loan with respect to SOFR borrowings. As a result of the refinancing, the required quarterly principal payments were deferred until the first quarter of 2025. The Credit Agreement, as amended, consisted of the following as of September 30, 2024: • a $1.236 billion U.S. dollar term loan, or First Lien Term Loan, with a maturity date of February 5, 2030; 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 maturity date of July 24, 2029. Borrowings under our Revolving Credit Facility 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 2.25% or (2) a base rate plus an applicable margin of 1.25%. 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 2.75% or (2) a base rate plus an applicable margin of 1.75%. 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 the administrative agent, JPMorgan Chase, 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 amended 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 0.375% per annum of unused commitments under the Revolving Credit Facility. The 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 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 Credit Agreement also contains certain customary representations and warranties, affirmative covenants and events of default. As of September 30, 2024, we were in compliance with all covenants of the Credit Agreement.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share A reconciliation of the number of shares in the calculation of basic and diluted income (loss) per share follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (in thousands) Basic income (loss) per share Numerator: Net income (loss) $ 12,570 $ (3,172) $ 39,233 $ (8,533) Earnings allocated to unvested restricted stock (1) — — — — Net income (loss) available to common stockholders $ 12,570 $ (3,172) $ 39,233 $ (8,533) Denominator: Weighted-average shares used in computing basic income (loss) per share 169,971 165,275 168,724 164,089 Diluted income (loss) per share Numerator: Net income (loss) available to common stockholders $ 12,570 $ (3,172) $ 39,233 $ (8,533) Denominator: Weighted-average shares used in computing basic income (loss) per share 169,971 165,275 168,724 164,089 Add dilutive impact of employee equity plans 3,929 — 4,347 — Weighted-average shares used in computing diluted income (loss) per share 173,900 165,275 173,071 164,089 ______ (1) There were no unvested restricted stock outstanding during the three and nine months ended September 30, 2024. 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 the performance condition had not been met at the end of the period: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (in thousands) Total anti-dilutive shares 2,128 14,024 1,663 14,056

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We compute our interim provision for income taxes by applying the estimated annual effective tax rate to year-to-date income before income tax and adjust the provision for discrete tax items recorded in the period. Each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The interim provision for income taxes and estimated annual effective tax rate are subject to volatility due to several factors, including changes in our domestic and foreign earnings, changes to our valuation allowances, material discrete tax items and the effects of tax law changes. For the three months ended September 30, 2024 and 2023, we recorded income tax expense of $12.4 million and $12.3 million, respectively, resulting in an effective tax rate of 49.7% and 134.9%, respectively. For the nine months ended September 30, 2024 and 2023, we recorded income tax expense of $27.3 million and $28.0 million, respectively, resulting in an effective tax rate of 41.0% and 143.8%, respectively. The decrease in the effective tax rates for the three and nine months ended September 30, 2024 compared to the same periods in 2023 was primarily a result of the impact of valuation allowances recorded during the periods and an increase in our income before income taxes, specifically foreign income, which reduced the estimated annual effective tax rate for the current periods. The decrease in the effective tax rate for the nine months ended September 30, 2024 compared to the same period in 2023 was also impacted by changes in our reserves for uncertain tax positions. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. At September 30, 2024, we had accrued interest and penalties related to unrecognized tax benefits of approximately $0.6 million. We file U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2013 through February 2016 and 2020 through 2023 tax years generally remain open and subject to examination by federal tax authorities. The 2015 through 2023 tax years generally remain open and subject to examination by the state tax authorities and foreign tax authorities. We are currently under examination by the IRS for the tax years 2013 through the period ending February 2016 and expect this audit to be fully resolved in 2024. We are currently under audit by the Texas Comptroller for the 2015 through 2020 tax years. We are currently under audit by the Philippines Bureau of Internal Revenue for the 2022 tax year. The audit by the Swedish Tax Agency for the 2022 tax year was closed with no changes. We are not currently under audit in any other taxing jurisdictions. In December 2021, the Organisation for Economic Co-operation and Development ("OECD") enacted model rules defining a new global minimum tax framework which establishes a global minimum effective tax rate of 15% for multinational groups with annual global revenue exceeding €750 million ("Pillar Two"). Although we operate in one or more jurisdictions that have substantively enacted Pillar Two legislation, we have not exceeded the revenue threshold and therefore do not expect to be subject to the Pillar Two rules this fiscal year. We will continue to evaluate the impact of these tax law changes on future reporting periods.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
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 Expenses incurred as a result of the Cyber Incident for the three and nine months ended September 30, 2024 and 2023 are presented net of insurance proceeds and recorded within general and administrative expense in our condensed consolidated statements of operations. Expenses include costs of lawsuits and investigations related thereto, including legal and other professional services, which are expensed as incurred, as well as estimated loss contingencies. We recorded pre-tax expenses (proceeds) related to the Cyber Incident as follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (in thousands) Gross expenses related to the Cyber Incident $ 2,532 $ 7,901 $ 7,641 $ 15,509 Less: proceeds received or expected to be received under our insurance coverage — (5,000) — (19,798) Total net expenses (proceeds) related to the Cyber Incident $ 2,532 $ 2,901 $ 7,641 $ (4,289) Litigation, Claims and Government Investigations As a result of the Cyber Incident, we have been subject to multiple lawsuits and investigations. A consolidated putative class action lawsuit alleging violations of the federal securities laws was filed against us and certain of our current and former officers. The complainants sought certification of a class of all persons who purchased or otherwise acquired our common stock between October 18, 2018 and December 17, 2020 and sought 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. 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. On July 28, 2023, the court held a final settlement hearing after which the court entered an order and final judgment approving the settlement. The settlement resolved all claims asserted against us and the other named defendants in connection with the securities class action litigation and contained 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. The settlement sum was reimbursed entirely by applicable directors’ and officers’ liability insurance. In addition, two shareholder derivative actions were 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 October 13, 2022, the Delaware Court of Chancery entered an order dismissing the case in that court with prejudice, and on May 17, 2023, the Supreme Court of the State of Delaware entered an order affirming the Delaware Court of Chancery’s judgment. On July 12, 2023, the United States District Court for the Western District of Texas entered a final judgment dismissing the case in that court without prejudice. In addition, we have been subject to several investigations and inquiries by U.S. regulatory authorities related to the Cyber Incident, including from the Department of Justice and the SEC, although currently the only active matter relates to the SEC litigation. On October 30, 2023, the SEC filed a civil complaint, or the SEC Complaint, in the United States District Court for the Southern District of New York naming us and our Chief Information Security Officer, or CISO, as defendants. The SEC Complaint alleges violations of the Exchange Act and the Securities Act relating to our cybersecurity disclosures and public statements, as well as our internal controls and disclosure controls and procedures. The SEC Complaint seeks permanent injunctions against the Company and our CISO, disgorgement of profits, civil penalties and a permanent officer-and-director bar against our CISO. We accrued an immaterial loss contingency related to the SEC investigation during the year ended December 31, 2023. On May 3, 2024, the Company and our CISO filed a motion to dismiss the SEC Complaint. On July 18, 2024, the District Court for the Southern District of New York entered an order granting in large part the Company's motion to dismiss. Only one claim remains pending before the court which concerns the accuracy of our online Security Statement. We maintain that the Security Statement was accurate and intend to continue to vigorously defend ourselves against the remaining claim. We have incurred, and expect to continue to incur, costs and other expenses in connection with this matter, and the ultimate results of the action initiated by the SEC Complaint are unknown at this time. The Company will continue to evaluate information as it becomes known and will adjust our estimate for losses or will record additional 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 the SEC Complaint 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 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 which renews annually. All proceeds from our cybersecurity insurance and our directors and officers liability insurance relating to the losses incurred as a result of the Cyber Incident have been received. 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. (the "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 September 30, 2024. 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.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ 12,570	$ (3,172)	$ 39,233	$ (8,533)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
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.
Reclassifications	Certain reclassifications have been made to the prior period condensed consolidated statements of cash flows to conform to the current period presentation. These reclassifications did not impact previously reported net income (loss), total assets or net operating, investing or financing cash flows.
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	In November 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The updated guidance expands segment disclosures by requiring additional disclosure of significant segment expenses included within segment profit or loss along with other segment information. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024, and early adoption is permitted. We currently operate as a single reportable segment and while we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements, we will be required to provide enhanced segment disclosures beginning in our Annual Report for the fiscal year ended December 31, 2024 and subsequent interim periods. In December 2023, the FASB issued ASU No. 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. The updated guidance is effective for public companies for fiscal years beginning after December 15, 2024 and early adoption permitted. We currently do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements.
Fair Value Measurements	We apply the authoritative guidance on fair value measurements for financial assets and liabilities that are measured at fair value on a recurring basis and non-financial assets and liabilities, such as goodwill, intangible assets and property, plant and equipment that are measured at fair value on a non-recurring basis. The guidance establishes a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by us. Level 2: Inputs that are observable in the marketplace other than those inputs classified as Level 1. Level 3: Inputs that are unobservable in the marketplace and significant to the valuation. 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 condensed 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)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of 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, 2023 $ (28,103) $ — $ (28,103) Other comprehensive income before reclassification 10,375 1 10,376 Amount reclassified from accumulated other comprehensive income (loss) — — — Net current period other comprehensive income 10,375 1 10,376 Balance at September 30, 2024 $ (17,728) $ 1 $ (17,727)
Schedule of Disaggregation of Revenue	The following summarizes the revenue we recognized at a point in time and over time: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (in thousands) Revenue recognized at a point in time $ 47,539 $ 37,611 $ 134,482 $ 110,238 Revenue recognized over time 152,486 151,980 452,104 450,363 Total revenue recognized $ 200,025 $ 189,591 $ 586,586 $ 560,601
Schedule of 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, 2023 $ 386,977 Deferred revenue recognized (404,072) Additional amounts deferred 396,027 Balance at September 30, 2024 $ 378,932
Schedule of Remaining Performance Obligations For Revenue Recognition	We expect to recognize revenue related to these remaining performance obligations as of September 30, 2024 as follows: Revenue Recognition Expected by Period Total Less than 1-3 years More than (in thousands) Expected recognition of deferred revenue $ 378,932 $ 335,384 $ 42,482 $ 1,066
Schedule of Details of Contract Acquisition Cost	Details of our deferred commissions balance are as follow s: Deferred Commissions (in thousands) Balance at December 31, 2023 $ 23,563 Commissions capitalized 7,268 Amortization recognized (7,003) Balance at September 30, 2024 $ 23,828 September 30, December 31, 2024 2023 (in thousands) Classified as: Current $ 8,501 $ 7,926 Non-current 15,327 15,637 Total deferred commissions $ 23,828 $ 23,563
Schedule of 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 Nine Months Ended 2024 2023 2024 2023 (in thousands) Amortization of acquired license technologies $ 925 $ 924 $ 2,771 $ 2,770 Amortization of acquired subscription technologies 396 2,488 2,981 7,503 Total amortization of acquired technologies $ 1,321 $ 3,412 $ 5,752 $ 10,273

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities Reconciliation	The following table summarizes our short-term investments: September 30, 2024 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 4,978 $ 1 $ — $ 4,979 Commercial paper 1,197 — — 1,197 Total short-term investments $ 6,175 $ 1 $ — $ 6,176 December 31, 2023 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Short-term investments: Available-for-sale securities: U.S. Treasury securities $ 3,979 $ 1 $ — $ 3,980 Commercial paper 497 — — 497 Total short-term investments $ 4,476 $ 1 $ — $ 4,477
Schedule of Investments Classified by Contractual Maturity Date	The following table summarizes the contractual underlying maturities of our available-for-sale securities: September 30, 2024 Cost Fair Value (in thousands) Due in one year or less $ 6,175 $ 6,176

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table reflects the changes in goodwill for the nine months ended September 30, 2024: (in thousands) Balance at December 31, 2023 $ 2,397,545 Foreign currency translation 8,331 Balance at September 30, 2024 $ 2,405,876

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of 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 September 30, 2024 and December 31, 2023. There have been no transfers between fair value measurement levels during the nine months ended September 30, 2024. Fair Value Measurements at September 30, 2024 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 77,412 $ — $ — $ 77,412 U.S. Treasury securities — 1,989 — 1,989 Commercial paper — 26,747 — 26,747 Total cash equivalents 77,412 28,736 — 106,148 Short-term investments: U.S. Treasury securities — 4,979 — 4,979 Commercial paper — 1,197 — 1,197 Total short-term investments — 6,176 — 6,176 Total assets $ 77,412 $ 34,912 $ — $ 112,324 Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Significant Total (in thousands) Cash equivalents: Money market funds $ 195,017 $ — $ — $ 195,017 U.S. Treasury securities — 1,987 — 1,987 Commercial paper — 31,586 — 31,586 Total cash equivalents 195,017 33,573 — 228,590 Short-term investments: U.S. Treasury securities — 3,980 — 3,980 Commercial paper — 497 — 497 Total short-term investments — 4,477 — 4,477 Total assets $ 195,017 $ 38,050 $ — $ 233,067

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Debt	The following table summarizes information relating to our debt: September 30, December 31, 2024 2023 Amount Effective Rate Amount Effective Rate (in thousands, except interest rates) Revolving credit facility $ — — % $ — — % First Lien Term Loan (as amended) due Feb 2030 1,235,662 7.60 % 1,235,662 9.11 % Total principal amount 1,235,662 1,235,662 Unamortized discount and debt issuance costs (30,549) (32,278) Total debt 1,205,113 1,203,384 Less: Current portion of long-term debt (9,267) (12,450) Total long-term debt $ 1,195,846 $ 1,190,934

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Reconciliation of Shares in Calculation of Basic and Diluted Income (Loss) Per Share	A reconciliation of the number of shares in the calculation of basic and diluted income (loss) per share follows: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (in thousands) Basic income (loss) per share Numerator: Net income (loss) $ 12,570 $ (3,172) $ 39,233 $ (8,533) Earnings allocated to unvested restricted stock (1) — — — — Net income (loss) available to common stockholders $ 12,570 $ (3,172) $ 39,233 $ (8,533) Denominator: Weighted-average shares used in computing basic income (loss) per share 169,971 165,275 168,724 164,089 Diluted income (loss) per share Numerator: Net income (loss) available to common stockholders $ 12,570 $ (3,172) $ 39,233 $ (8,533) Denominator: Weighted-average shares used in computing basic income (loss) per share 169,971 165,275 168,724 164,089 Add dilutive impact of employee equity plans 3,929 — 4,347 — Weighted-average shares used in computing diluted income (loss) per share 173,900 165,275 173,071 164,089 ______ (1) There were no unvested restricted stock outstanding during the three and nine months ended September 30, 2024.
Schedule of Weighted Average Shares Excluded From Computation of the Diluted Net Income (Loss)	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 the performance condition had not been met at the end of the period: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (in thousands) Total anti-dilutive shares 2,128 14,024 1,663 14,056

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2024
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 Nine Months Ended 2024 2023 2024 2023 (in thousands) Gross expenses related to the Cyber Incident $ 2,532 $ 7,901 $ 7,641 $ 15,509 Less: proceeds received or expected to be received under our insurance coverage — (5,000) — (19,798) Total net expenses (proceeds) related to the Cyber Incident $ 2,532 $ 2,901 $ 7,641 $ (4,289)

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Apr. 15, 2024	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Special dividend declared (in dollars per share)			$ 1
Special dividend paid (in dollars per share)	$ 1			$ 1
Dividends paid	$ 168,200			$ 168,162	$ 0
Deferred revenue recognized during period		$ 71,000		$ 303,600

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 1,305,309	$ 1,398,656	$ 1,442,044	$ 1,369,653
Other comprehensive income before reclassification			10,376
Amount reclassified from accumulated other comprehensive income (loss)			0
Other comprehensive income (loss)	31,040	(18,395)	10,376	(10,842)
Balance at end of period	1,364,363	1,394,948	1,364,363	1,394,948
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(48,767)	(40,561)	(28,103)	(48,114)
Balance at end of period	(17,727)	$ (58,956)	(17,727)	$ (58,956)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			(28,103)
Other comprehensive income before reclassification			10,375
Amount reclassified from accumulated other comprehensive income (loss)			0
Other comprehensive income (loss)			10,375
Balance at end of period	(17,728)		(17,728)
Unrealized Gain (Loss) on Investments, Net of Tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period			0
Other comprehensive income before reclassification			1
Amount reclassified from accumulated other comprehensive income (loss)			0
Other comprehensive income (loss)			1
Balance at end of period	$ 1		$ 1

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Revenue Recognized at a Point In Time and Over Time (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total revenue	$ 200,025	$ 189,591	$ 586,586	$ 560,601
Transferred at Point in Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total revenue	47,539	37,611	134,482	110,238
Transferred over Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total revenue	$ 152,486	$ 151,980	$ 452,104	$ 450,363

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Movement in Deferred Revenue [Roll Forward]
Beginning balance	$ 386,977
Deferred revenue recognized	(404,072)
Additional amounts deferred	396,027
Ending balance	$ 378,932

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Expected Recognition of Deferred Revenue (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 378,932
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 335,384
Remaining revenue performance obligation, expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 42,482
Remaining revenue performance obligation, expected timing of satisfaction, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected recognition of deferred revenue	$ 1,066
Remaining revenue performance obligation, expected timing of satisfaction, period

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Change in Contract Acquisition Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Deferred Commissions, Roll Forward [Roll Forward]
Beginning balance	$ 23,563
Commissions capitalized	7,268
Amortization recognized	(7,003)
Ending balance	23,828
Current	8,501	$ 7,926
Non-current	15,327	15,637
Total deferred commissions	$ 23,828	$ 23,563

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Product Information [Line Items]
Amortization of acquired subscription technologies	$ 1,321	$ 3,412	$ 5,752	$ 10,273
License
Product Information [Line Items]
Amortization of acquired subscription technologies	925	924	2,771	2,770
Subscription
Product Information [Line Items]
Amortization of acquired subscription technologies	$ 396	$ 2,488	$ 2,981	$ 7,503

Investments - Available-For-Sal

Investments - Available-For-Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Short-term investments:
Cost	$ 6,175	$ 4,476
Gross Unrealized Gains	1	1
Gross Unrealized Losses	0	0
Fair Value	6,176	4,477
U.S. Treasury securities
Short-term investments:
Cost	4,978	3,979
Gross Unrealized Gains	1	1
Gross Unrealized Losses	0	0
Fair Value	4,979	3,980
Commercial paper
Short-term investments:
Cost	1,197	497
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 1,197	$ 497

Investments - Maturity Dates of

Investments - Maturity Dates of Available-For-Sale Securities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Cost
Due in one year or less	$ 6,175
Fair Value
Due in one year or less	$ 6,176

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 2,397,545
Foreign currency translation	8,331
Balance at end of period	$ 2,405,876

Goodwill - Narrative (Details)

Goodwill - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Accumulated goodwill impairment	$ 899.1	$ 897.2

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 106,148	$ 228,590
Short-term investments:	6,176	4,477
Total assets	112,324	233,067
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	4,979	3,980
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	1,197	497
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	77,412	195,017
Short-term investments:	0	0
Total assets	77,412	195,017
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) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	28,736	33,573
Short-term investments:	6,176	4,477
Total assets	34,912	38,050
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:	4,979	3,980
Significant Other Observable Inputs (Level 2) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	1,197	497
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) | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments:	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	77,412	195,017
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	77,412	195,017
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
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,989	1,987
U.S. Treasury securities | 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	0	0
U.S. Treasury securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	1,989	1,987
U.S. Treasury securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	26,747	31,586
Commercial paper | 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	0	0
Commercial paper | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	26,747	31,586
Commercial paper | 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	Sep. 30, 2024	Dec. 31, 2023
Amount
Total principal amount	$ 1,235,662	$ 1,235,662
Unamortized discount and debt issuance costs	(30,549)	(32,278)
Total debt	1,205,113	1,203,384
Less: Current portion of long-term debt	(9,267)	(12,450)
Total long-term debt	1,195,846	1,190,934
Secured Debt | First Lien Term Loan (as amended) due Feb 2030
Amount
Total principal amount	$ 1,235,662	$ 1,235,662
Effective Rate	7.60%	9.11%
Revolving credit facility | Line of Credit
Amount
Total principal amount	$ 0	$ 0
Effective Rate	0%	0%

Debt - Narrative (Details)

Debt - Narrative (Details) - Credit Suisse	9 Months Ended
	Sep. 30, 2024 USD ($)
Secured Overnight Financing Rate (SOFR)
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	0.375%
Covenant, borrowing percentage of commitments, maximum	35%
Line of Credit | Revolving credit facility | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Covenant, floor interest rate	0%
Line of Credit | Revolving credit facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 35,000,000
First Lien Term Loan (as amended) due Feb 2030 | Secured Debt
Debt Instrument [Line Items]
Face amount of debt	$ 1,236,000,000
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 2030 | Secured Debt | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Covenant, floor interest rate	0%
First Lien Term Loan (as amended) due Feb 2030 | Secured Debt | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
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
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 Earning (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic income (loss) per share
Net income (loss)	$ 12,570	$ (3,172)	$ 39,233	$ (8,533)
Earnings allocated to unvested restricted stock	0	0	0	0
Net income (loss) available to common stockholders	$ 12,570	$ (3,172)	$ 39,233	$ (8,533)
Weighted-average shares used in computing basic income (loss) per share (in shares)	169,971	165,275	168,724	164,089
Diluted income (loss) per share
Net income (loss) available to common stockholders	$ 12,570	$ (3,172)	$ 39,233	$ (8,533)
Shares used in computation of basic income (loss) per share (in shares)	169,971	165,275	168,724	164,089
Add dilutive impact of employee equity plans (in shares)	3,929	0	4,347	0
Weighted-average shares used in computing diluted net income (loss) per share (in shares)	173,900	165,275	173,071	164,089

Earnings (Loss) Per Share - Wei

Earnings (Loss) Per Share - Weighted Average Outstanding Shares of Common Stock Equivalents Excluded (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Total anti-dilutive shares (in shares)	2,128	14,024	1,663	14,056

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 12,440	$ 12,262	$ 27,275	$ 28,001
Effective income tax rate	49.70%	134.90%	41%	143.80%
Unrecognized tax benefits, income tax penalties and interest accrued	$ 600		$ 600

Commitments and Contingencies -

Commitments and Contingencies - Loss Contingencies Pre-Tax Expenses (Proceeds) (Details) - Cyber Incident - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Loss Contingencies [Line Items]
Gross expenses related to the Cyber Incident	$ 2,532	$ 7,901	$ 7,641	$ 15,509
Less: proceeds received or expected to be received under our insurance coverage	0	(5,000)	0	(19,798)
Total net expenses (proceeds) related to the Cyber Incident	$ 2,532	$ 2,901	$ 7,641	$ (4,289)

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details) $ in Millions		9 Months Ended
	Mar. 02, 2023 USD ($)	Sep. 30, 2024 USD ($)	Oct. 28, 2022 shareholderDerivativeAction
Loss Contingencies [Line Items]
Loss contingency, damages paid, value	$ 26
Cyber Incident
Loss Contingencies [Line Items]
Shareholder derivative actions filed | shareholderDerivativeAction			2
Cybersecurity insurance coverage amount		$ 15
Loss contingency, receivable, proceeds		15
Director and officer liability insurance		$ 50
Cyber Incident | TEXAS
Loss Contingencies [Line Items]
Shareholder derivative actions filed | shareholderDerivativeAction			1
Cyber Incident | DELAWARE
Loss Contingencies [Line Items]
Shareholder derivative actions filed | shareholderDerivativeAction			1