Cover
Cover - shares | 9 Months Ended | |
Aug. 31, 2022 | Sep. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-19417 | |
Entity Registrant Name | PROGRESS SOFTWARE CORP /MA | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2746201 | |
Entity Address, Address Line One | 15 Wayside Road, Suite 400 | |
Entity Address, City or Town | Burlington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803 | |
City Area Code | 781 | |
Local Phone Number | 280-4000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | PRGS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 42,998,323 | |
Entity Central Index Key | 0000876167 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --11-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 224,115 | $ 155,406 |
Short-term investments | 749 | 1,967 |
Total cash, cash equivalents and short-term investments | 224,864 | 157,373 |
Accounts receivable (less allowances of $1,150 and $634, respectively) | 82,258 | 99,815 |
Unbilled receivables and contract assets | 27,847 | 25,816 |
Other current assets | 29,465 | 39,549 |
Assets held for sale | 0 | 15,255 |
Total current assets | 364,434 | 337,808 |
Long-term unbilled receivables and contract assets | 25,972 | 17,464 |
Property and equipment, net | 13,409 | 14,345 |
Intangible assets, net | 233,436 | 287,185 |
Goodwill | 672,901 | 671,152 |
Right-of-use lease assets | 18,950 | 25,253 |
Deferred tax assets | 5,735 | 1,415 |
Other assets | 11,455 | 8,915 |
Total assets | 1,346,292 | 1,363,537 |
Current liabilities: | ||
Current portion of long-term debt, net | 6,234 | 25,767 |
Accounts payable | 7,717 | 9,683 |
Accrued compensation and related taxes | 35,887 | 47,116 |
Dividends payable to stockholders | 8,099 | 7,925 |
Short-term operating lease liabilities | 7,443 | 7,926 |
Other accrued liabilities | 16,878 | 19,491 |
Short-term deferred revenue | 197,425 | 205,021 |
Total current liabilities | 279,683 | 322,929 |
Long-term debt, net | 260,779 | 239,992 |
Convertible senior notes, net | 352,108 | 294,535 |
Long-term operating lease liabilities | 16,662 | 23,130 |
Long-term deferred revenue | 53,696 | 47,359 |
Deferred tax liabilities | 5,712 | 14,163 |
Other noncurrent liabilities | 10,679 | 8,940 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; authorized, 10,000,000 shares; issued, none | 0 | 0 |
Common stock, $0.01 par value, and additional paid-in capital; authorized, 200,000,000 shares; issued and outstanding, 42,998,323 shares in 2022 and 44,146,193 shares in 2021 | 430 | 441 |
Additional paid-in capital | 318,559 | 354,235 |
Retained earnings | 86,513 | 90,256 |
Accumulated other comprehensive loss | (38,529) | (32,443) |
Total stockholders’ equity | 366,973 | 412,489 |
Total liabilities and stockholders’ equity | $ 1,346,292 | $ 1,363,537 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Assets | ||
Allowance for accounts receivable | $ 1,150 | $ 634 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 42,998,323 | 44,146,193 |
Common stock, shares outstanding (in shares) | 42,998,323 | 44,146,193 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Revenue: | ||||
Total revenue | $ 151,217 | $ 147,417 | $ 444,886 | $ 391,185 |
Costs of revenue: | ||||
Amortization of acquired intangibles | 5,558 | 3,599 | 16,589 | 10,719 |
Total costs of revenue | 23,796 | 20,068 | 70,965 | 57,369 |
Gross profit | 127,421 | 127,349 | 373,921 | 333,816 |
Operating expenses: | ||||
Sales and marketing | 34,595 | 29,737 | 100,768 | 88,468 |
Product development | 28,650 | 25,616 | 85,966 | 76,579 |
General and administrative | 20,141 | 16,451 | 56,339 | 46,335 |
Amortization of acquired intangibles | 11,716 | 7,978 | 35,330 | 22,836 |
Restructuring expenses | 130 | 40 | 784 | 1,133 |
Acquisition-related expenses | 168 | 1,481 | 3,816 | 2,721 |
Gain on sale of assets held for sale | 0 | 0 | (10,770) | 0 |
Total operating expenses | 95,400 | 81,303 | 272,233 | 238,072 |
Income from operations | 32,021 | 46,046 | 101,688 | 95,744 |
Other (expense) income: | ||||
Interest expense | (4,009) | (6,510) | (11,368) | (13,625) |
Interest income and other, net | 247 | 99 | 991 | 222 |
Foreign currency gain (loss), net | (577) | (128) | (832) | (1,006) |
Total other expense, net | (4,339) | (6,539) | (11,209) | (14,409) |
Income before income taxes | 27,682 | 39,507 | 90,479 | 81,335 |
Provision for income taxes | 5,885 | 8,531 | 19,118 | 17,841 |
Net income | $ 21,797 | $ 30,976 | $ 71,361 | $ 63,494 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.50 | $ 0.71 | $ 1.64 | $ 1.45 |
Diluted (in dollars per share) | $ 0.50 | $ 0.70 | $ 1.61 | $ 1.43 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 43,211 | 43,762 | 43,589 | 43,896 |
Diluted (in shares) | 43,935 | 44,502 | 44,299 | 44,542 |
Cash dividends declared per common share (in dollars per share) | $ 0.175 | $ 0.175 | $ 0.525 | $ 0.525 |
Software licenses | ||||
Revenue: | ||||
Total revenue | $ 47,618 | $ 51,930 | $ 135,182 | $ 115,354 |
Costs of revenue: | ||||
Cost of revenue | 2,477 | 1,574 | 7,669 | 3,763 |
Maintenance and services | ||||
Revenue: | ||||
Total revenue | 103,599 | 95,487 | 309,704 | 275,831 |
Costs of revenue: | ||||
Cost of revenue | $ 15,761 | $ 14,895 | $ 46,707 | $ 42,887 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,797 | $ 30,976 | $ 71,361 | $ 63,494 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (7,632) | (2,179) | (10,955) | 922 |
Unrealized gain on hedging activity, net of tax provision of $377 and $1,542 for the third quarter and first nine months of 2022, respectively and net of tax provision of $155 and $502 for the third quarter and first nine months of 2021, respectively | 1,191 | 479 | 4,882 | 1,551 |
Unrealized loss on investments, net of tax of $0 and a tax benefit of $4 for the third quarter and first nine months of 2022 and net of tax benefit of $4 and $16 for the third quarter and first nine months of 2021, respectively | (1) | (15) | (13) | (54) |
Total other comprehensive (loss) income, net of tax | (6,442) | (1,715) | (6,086) | 2,419 |
Comprehensive income | $ 15,355 | $ 29,261 | $ 65,275 | $ 65,913 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision (benefit) on unrealized loss on hedging activity | $ 377 | $ 155 | $ 1,542 | $ 502 |
Tax provision (benefit) on accumulated unrealized gain on investments | $ 0 | $ (4) | $ (4) | $ (16) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Cumulative effect of adoption of ASU 2020-06 | Cumulative effect of adoption of ASU 2020-06 Additional Paid-In Capital | Cumulative effect of adoption of ASU 2020-06 Retained Earnings |
Beginning balance (in shares) at Nov. 30, 2020 | 44,241,000 | |||||||
Beginning balance at Nov. 30, 2020 | $ 346,013 | $ 442 | $ 305,802 | $ 72,547 | $ (32,778) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock under employee stock purchase plan (in shares) | 212,000 | |||||||
Issuance of stock under employee stock purchase plan | 5,926 | $ 2 | 5,924 | |||||
Exercise of stock options (in shares) | 87,000 | |||||||
Exercise of stock options | 2,841 | $ 1 | 2,840 | |||||
Vesting of restricted stock units and release of deferred stock units (in shares) | 100,000 | |||||||
Vesting of restricted stock units and release of deferred stock units | 0 | $ 1 | (1) | |||||
Withholding tax payments related to net issuance of RSUs | (2,398) | (2,398) | ||||||
Stock-based compensation | 21,985 | 21,985 | ||||||
Equity components of Notes, net of issuance costs and tax | 47,456 | 47,456 | ||||||
Purchase of capped calls, net of tax | (32,507) | (32,507) | ||||||
Dividends declared | $ (23,456) | (23,456) | ||||||
Treasury stock repurchases and retirements (in shares) | (800,000) | (797,000) | ||||||
Treasury stock repurchases and retirements | $ (35,000) | $ (8) | (5,862) | (29,130) | ||||
Net income | 63,494 | 63,494 | ||||||
Other comprehensive loss (income) | 2,419 | 2,419 | ||||||
Ending balance (in shares) at Aug. 31, 2021 | 43,843,000 | |||||||
Ending balance at Aug. 31, 2021 | 396,773 | $ 438 | 343,239 | 83,455 | (30,359) | |||
Beginning balance (in shares) at Nov. 30, 2020 | 44,241,000 | |||||||
Beginning balance at Nov. 30, 2020 | $ 346,013 | $ 442 | 305,802 | 72,547 | (32,778) | |||
Ending balance (in shares) at Nov. 30, 2021 | 44,146,193 | 44,146,000 | ||||||
Ending balance at Nov. 30, 2021 | $ 412,489 | $ 441 | 354,235 | 90,256 | (32,443) | $ (42,563) | $ (47,456) | $ 4,893 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 Cumulative Effect, Period of Adoption [Member] | |||||||
Beginning balance (in shares) at May. 31, 2021 | 43,745,000 | |||||||
Beginning balance at May. 31, 2021 | $ 365,721 | $ 437 | 333,627 | 60,301 | (28,644) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock under employee stock purchase plan (in shares) | 67,000 | |||||||
Issuance of stock under employee stock purchase plan | 1,886 | $ 1 | 1,885 | |||||
Exercise of stock options (in shares) | 31,000 | |||||||
Exercise of stock options | 1,009 | 1,009 | ||||||
Withholding tax payments related to net issuance of RSUs | (25) | (25) | ||||||
Stock-based compensation | 6,839 | 6,839 | ||||||
Equity components of Notes, net of issuance costs and tax | (341) | (341) | ||||||
Purchase of capped calls, net of tax | 245 | 245 | ||||||
Dividends declared | $ (7,822) | (7,822) | ||||||
Treasury stock repurchases and retirements (in shares) | 0 | |||||||
Net income | $ 30,976 | 30,976 | ||||||
Other comprehensive loss (income) | (1,715) | (1,715) | ||||||
Ending balance (in shares) at Aug. 31, 2021 | 43,843,000 | |||||||
Ending balance at Aug. 31, 2021 | $ 396,773 | $ 438 | 343,239 | 83,455 | (30,359) | |||
Beginning balance (in shares) at Nov. 30, 2021 | 44,146,193 | 44,146,000 | ||||||
Beginning balance at Nov. 30, 2021 | $ 412,489 | $ 441 | 354,235 | 90,256 | (32,443) | $ (42,563) | $ (47,456) | $ 4,893 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock under employee stock purchase plan (in shares) | 246,000 | |||||||
Issuance of stock under employee stock purchase plan | 7,237 | $ 2 | 7,235 | |||||
Exercise of stock options (in shares) | 78,000 | |||||||
Exercise of stock options | 2,879 | $ 1 | 2,878 | |||||
Vesting of restricted stock units and release of deferred stock units (in shares) | 188,000 | |||||||
Vesting of restricted stock units and release of deferred stock units | 0 | $ 2 | (2) | |||||
Withholding tax payments related to net issuance of RSUs | (5,405) | (5,405) | ||||||
Stock-based compensation | 26,110 | 26,110 | ||||||
Dividends declared | $ (23,525) | (23,525) | ||||||
Treasury stock repurchases and retirements (in shares) | (1,700,000) | (1,660,000) | ||||||
Treasury stock repurchases and retirements | $ (75,524) | $ (16) | (19,036) | (56,472) | ||||
Net income | 71,361 | 71,361 | ||||||
Other comprehensive loss (income) | $ (6,086) | (6,086) | ||||||
Ending balance (in shares) at Aug. 31, 2022 | 42,998,323 | 42,998,000 | ||||||
Ending balance at Aug. 31, 2022 | $ 366,973 | $ 430 | 318,559 | 86,513 | (38,529) | |||
Beginning balance (in shares) at May. 31, 2022 | 43,454,000 | |||||||
Beginning balance at May. 31, 2022 | 372,146 | $ 435 | 309,913 | 93,885 | (32,087) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of stock under employee stock purchase plan (in shares) | 68,000 | |||||||
Issuance of stock under employee stock purchase plan | 2,024 | 2,024 | ||||||
Exercise of stock options (in shares) | 18,000 | |||||||
Exercise of stock options | 643 | 643 | ||||||
Stock-based compensation | 8,639 | 8,639 | ||||||
Dividends declared | $ (7,783) | (7,783) | ||||||
Treasury stock repurchases and retirements (in shares) | (500,000) | (542,000) | ||||||
Treasury stock repurchases and retirements | $ (24,051) | $ (5) | (2,660) | (21,386) | ||||
Net income | 21,797 | 21,797 | ||||||
Other comprehensive loss (income) | $ (6,442) | (6,442) | ||||||
Ending balance (in shares) at Aug. 31, 2022 | 42,998,323 | 42,998,000 | ||||||
Ending balance at Aug. 31, 2022 | $ 366,973 | $ 430 | $ 318,559 | $ 86,513 | $ (38,529) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 71,361 | $ 63,494 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 3,682 | 4,147 |
Amortization of acquired intangibles and other | 52,545 | 33,988 |
Amortization of debt discount and issuance costs on Notes | 1,595 | 4,942 |
Stock-based compensation | 26,110 | 21,985 |
Non-cash lease expense | 5,919 | 6,095 |
Gain on sale of assets held for sale | (10,770) | 0 |
Deferred income taxes | (286) | (1,596) |
Allowances for bad debt and sales credits | 710 | (370) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,858 | (1,319) |
Other assets | 11,174 | 2,590 |
Inventories | (1,264) | 0 |
Accounts payable and accrued liabilities | (10,055) | (5,994) |
Lease liabilities | (6,481) | (6,440) |
Income taxes payable | (748) | 3,079 |
Deferred revenue | 5,673 | 10,001 |
Net cash flows from operating activities | 152,023 | 134,602 |
Cash flows from investing activities: | ||
Sales and maturities of investments | 1,200 | 4,150 |
Purchases of property and equipment | (3,086) | (2,741) |
Proceeds from sale of long-lived assets, net | 25,998 | 0 |
Decrease in escrow receivable and other | 134 | 2,330 |
Net cash flows from investing activities | 24,246 | 3,739 |
Cash flows (used in) from financing activities: | ||
Proceeds from stock-based compensation plans | 10,384 | 9,247 |
Payments for taxes related to net share settlements of equity awards | (5,405) | (2,398) |
Repurchases of common stock | (75,524) | (35,000) |
Proceeds from issuance of senior convertible notes, net of issuance costs of $9.9 million | 0 | 350,100 |
Purchase of capped calls | 0 | (43,056) |
Dividend payments to stockholders | (23,351) | (23,372) |
Proceeds from the issuance of debt | 7,474 | 0 |
Payment of principal on long-term debt | (5,154) | (111,669) |
Payment of debt issuance costs | (1,957) | (904) |
Net cash flows (used in) from financing activities | (93,533) | 142,948 |
Effect of exchange rate changes on cash | (14,027) | 616 |
Net increase in cash and cash equivalents | 68,709 | 281,905 |
Cash and cash equivalents, beginning of period | 155,406 | 97,990 |
Cash and cash equivalents, end of period | 224,115 | 379,895 |
Supplemental disclosure: | ||
Cash paid for income taxes, net of refunds of $920 in 2022 and $807 in 2021 | 8,954 | 9,920 |
Cash paid for interest | 5,470 | 6,564 |
Non-cash investing and financing activities: | ||
Total fair value of restricted stock awards, restricted stock units and deferred stock units on date vested | 18,204 | 8,779 |
Dividends declared | $ 8,099 | $ 7,988 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Payments of debt issuance costs | $ 9,900 | $ 9,900 |
Proceeds from income tax refunds | $ 920 | $ 807 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Company Overview - Progress Software Corporation ("Progress," the "Company," "we," "us," or "our") is dedicated to propelling business forward in a technology-driven world. Progress helps businesses drive faster cycles of innovation, fuel momentum and accelerate their path to success. As the trusted provider of the best products to develop, deploy and manage high-impact applications, Progress enables customers to develop the applications and experiences the need, deploy where and how they want and manage it all safely and securely. Hundreds of thousands of enterprises, including 1,700 software companies and 3.5 million developers depend on Progress to achieve their goals—with confidence. Our products are generally sold as perpetual licenses, but certain products also use term licensing models and our cloud-based offerings use a subscription-based model. More than half of our worldwide license revenue is realized through relationships with indirect channel partners (principally independent software vendors), original equipment manufacturers ("OEMs"), distributors and value-added resellers. Independent software vendors develop and market applications using our technology and resell our products in conjunction with sales of their own products that incorporate our technology. OEMs are companies that embed our products into their own software products or devices. Value-added resellers are companies that add features or services to our product, then resell it as an integrated product or complete "turn-key" solution. We operate in North and Latin America (the "Americas"); Europe, the Middle East and Africa ("EMEA"); and the Asia Pacific region, through local subsidiaries as well as independent distributors. Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2021, as filed with the SEC on January 27, 2022, as amended by a Form 10-K/A filed on March 30, 2022 (together, the "2021 10-K"). We made no material changes in the application of our significant accounting policies that were disclosed in our 2021 10-K. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our 2021 10-K, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an on-going basis, management evaluates its estimates and records changes in estimates in the period in which they become known. These estimates are based on historical data and experience, as well as various other assumptions that management believes to be reasonable under the circumstances. The most significant estimates relate to: the timing and amount of revenue recognition, including the determination of the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and the transaction price allocated to performance obligations; the realization of tax assets and estimates of tax liabilities; fair values of investments in marketable securities; intangible assets and goodwill valuations; the recognition and disclosure of contingent liabilities; the collectability of accounts receivable; and assumptions used to determine the fair value of stock-based compensation. Actual results could differ from those estimates. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 updates specific areas of ASC 740, Income Taxes, to reduce complexity while maintaining or improving the usefulness of the information provided to users of financial statements. The Company adopted this standard effective December 1, 2021. The adoption of this standard did not have a material effect on the Company's condensed consolidated financial position and results of operations. Convertible Debt On December 1, 2021, we early adopted Accounting Standards Update No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06") on a modified retrospective basis. Under ASU 2020-06, we no longer separate the convertible senior notes into liability and equity components. We recognized the cumulative effect of initially applying this new standard as of December 1, 2021, as an adjustment to the December 1, 2021 opening balance of retained earnings. The conversion option that was previously accounted for in equity under the cash conversion model was recombined into the convertible debt outstanding, and as a result, additional paid in capital and the related unamortized debt discount on the convertible senior notes were reduced. The removal of the remaining debt discount recorded for this previous separation has the effect of increasing our net debt balance. We recorded a $47.5 million decrease to additional paid-in capital, a $56.0 million decrease to debt discount, a $4.9 million increase to retained earnings, and a $13.4 million decrease to long-term deferred tax liabilities. There was no impact to the Company’s statements of cash flows as the result of the adoption of ASU 2020-06. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. See Note 8: Debt for additional information regarding the terms of the Convertible Senior Notes (the "Notes"). The new standard requires the use of the "if-converted" method to calculate the diluted earnings per common share. Refer to Note 16: Earnings Per Share for effect of the convertible notes on diluted earnings per common share. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Aug. 31, 2022 | |
Investments and Cash [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments A summary of our cash, cash equivalents and available-for-sale investments at August 31, 2022 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 197,777 $ — $ — $ 197,777 Money market funds 26,338 — — 26,338 U.S. treasury bonds 750 — (1) 749 Total $ 224,865 $ — $ (1) $ 224,864 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2021 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 130,371 $ — $ — $ 130,371 Money market funds 25,035 — — 25,035 U.S. treasury bonds 748 9 — 757 Corporate bonds 1,203 7 — 1,210 Total $ 157,357 $ 16 $ — $ 157,373 Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands): August 31, 2022 November 30, 2021 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 197,777 $ — $ 130,371 $ — Money market funds 26,338 — 25,035 — U.S. treasury bonds — 749 — 757 Corporate bonds — — — 1,210 Total $ 224,115 $ 749 $ 155,406 $ 1,967 The fair value of debt securities by contractual maturity due in one year or less was $0.7 million and $2.0 million as of August 31, 2022 and November 30, 2021, respectively. There were no debt securities by contractual maturity due after one year as of August 31, 2022 or November 30, 2021. We did not hold any investments with continuous unrealized losses as of August 31, 2022 or November 30, 2021. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Aug. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Cash Flow Hedge On July 9, 2019, we entered into an interest rate swap contract with an initial notional amount of $150.0 million to manage the variability of cash flows associated with approximately one-half of our variable rate debt. The contract matures on April 30, 2024 and requires periodic interest rate settlements. Under this interest rate swap contract, we receive a floating rate based on the greater of 1-month LIBOR or 0.00%, and pay a fixed rate of 1.855% on the outstanding notional amount. We have designated the interes t rate swap as a cash flow hedge and assess the hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative. To the extent that the interest rate swap is highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the derivative are included as a component of other comprehensive loss on our condensed consolidated balance sheets. Although we have determined at the onset of the hedge that the interest rate swap will be a highly effective hedge throughout the term of the contract, any portion of the fair value swap subsequently determined to be ineffective will be recognized in earnings. On January 25, 2022, we amended our prior credit facility (see Note 8: Debt). We reassessed the hedge in connection with the debt amendment and determined that it is still highly effective. As of August 31, 2022 , the fair value of the hedge was a gain of $3.3 million, which was included in other assets on our condensed consolidated balance sheets. The following table presents our interest rate swap contract where the notional amount reflects the quarterly amortization of the interest rate swap, which is equal to approximately one-half of the corresponding reduction in the balance of our term loan as we make scheduled principal payments. The fair value of the derivative represents the discounted value of the expected future discounted cash flows for the interest rate swap, based on the amortization schedule and the current forward curve for the remaining term of the contract, as of the date of each reporting period (in thousands): August 31, 2022 November 30, 2021 Notional Value Fair Value Notional Value Fair Value Interest rate swap contracts designated as cash flow hedges $ 123,750 $ 3,346 $ 133,125 $ (3,078) Forward Contracts We generally use forward contracts that are not designated as hedging instruments to hedge economically the impact of the variability in exchange rates on intercompany accounts receivable and loans receivable denominated in certain foreign currencies. We generally do not hedge the net assets of our international subsidiaries. All forward contracts are recorded at fair value on the consolidated balance sheets at the end of each reporting period and generally expire between 30 days and 2 years from the date the contract was entered. At August 31, 2022, $4.3 million and $0.1 million was recorded in other noncurrent liabilities and other current assets on our condensed consolidated balance sheets. At November 30, 2021, $0.3 million and $0.1 million were recorded in other noncurrent liabilities and other accrued liabilities, respectively, on our condensed consolidated balance sheets. In the three and nine months ended August 31, 2022, realized and unrealized losses of $5.4 million and $9.0 million, respectively, from our forward contracts were recognized in foreign currency gain (loss), net, on our condensed consolidated statements of operations. In the three and nine month ended August 31, 2021, realized and unrealized losses of $2.3 million and realized and unrealized gains of $0.4 million, respectively, from our forward contracts were recognized in foreign currency gain (loss), net, on our condensed consolidated statements of operations. These gains and losses were substantially offset by realized and unrealized gains and losses in the offsetting positions. The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): August 31, 2022 November 30, 2021 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 81,089 $ (4,211) $ 79,777 $ (371) Forward contracts to purchase U.S. dollars 618 4 119 (1) Total $ 81,707 $ (4,207) $ 79,896 $ (372) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Aug. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at August 31, 2022 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 26,338 $ 26,338 $ — $ — U.S. treasury bonds 749 — 749 — Interest rate swap 3,346 — 3,346 — Liabilities Foreign exchange derivatives $ (4,207) $ — $ (4,207) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2021 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 25,035 $ 25,035 $ — $ — U.S. treasury bonds 757 — 757 — Corporate bonds 1,210 — 1,210 — Liabilities Foreign exchange derivatives (372) — (372) — Interest rate swap $ (3,078) $ — $ (3,078) $ — When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. Fair Value of the Convertible Senior Notes The Notes’ fair value, inclusive of the conversion feature embedded in the Notes, was $364.1 million as of August 31, 2022. The fair value was determined based on the Notes’ quoted price in an over-the-counter market on the last trading day of the reporting period and classified within Level 1 in the fair value hierarchy. See Note 8: Debt for additional information. |
Inventories
Inventories | 9 Months Ended |
Aug. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories were as follows (in thousands): August 31, 2022 November 30, 2021 Finished goods $ 1,773 $ 1,631 Purchased parts and fabricated assemblies 2,867 1,920 Total $ 4,640 $ 3,551 At August 31, 2022 and November 30, 2021, the inventories balances of $4.6 million and $3.6 million were recorded in other current assets on the condensed consolidated balance sheets. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets are comprised of the following significant classes (in thousands): August 31, 2022 November 30, 2021 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 212,700 $ (145,389) $ 67,311 $ 212,700 $ (128,797) $ 83,903 Customer-related 306,308 (152,864) 153,444 306,308 (119,357) 186,951 Trademarks and trade names 37,611 (24,930) 12,681 37,611 (21,556) 16,055 Non-compete agreement 2,000 (2,000) — 2,000 (1,724) 276 Total $ 558,619 $ (325,183) $ 233,436 $ 558,619 $ (271,434) $ 287,185 In the three and nine months ended August 31, 2022, amortization expense related to intangible assets was $17.3 million and $51.9 million, respectively. In the three and nine months ended August 31, 2021, amortization expense related to intangible assets was $11.6 million and $33.6 million, respectively. Future amortization expense for intangible assets as of August 31, 2022, is as follows (in thousands): Remainder of 2022 $ 17,177 2023 68,895 2024 56,079 2025 45,569 2026 35,968 Thereafter 9,748 Total $ 233,436 Goodwill Changes in the carrying amount of goodwill in the nine months ended August 31, 2022 are as follows (in thousands): Balance, November 30, 2021 $ 671,152 Measurement period adjustments 1,752 Translation adjustments (3) Balance, August 31, 2022 $ 672,901 |
Business Combinations
Business Combinations | 9 Months Ended |
Aug. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Kemp Acquisition On November 1, 2021, we completed the acquisition of the parent company of Kemp Technologies, Inc. (“Kemp”), which is described in greater detail in our 2021 10-K. The acquisition was completed for a base purchase price of $258.0 million (subject to certain customary adjustments) in cash. The acquisition consideration for Kemp has been preliminarily allocated to Kemp’s tangible assets, identifiable intangible assets, and assumed liabilities based on their estimated fair values. The preliminary fair value estimates of the net assets acquired are based upon preliminary calculations and valuations, and those estimates and assumptions are subject to change as we obtain additional information for those estimates during the measurement period (up to one year from the acquisition date). The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities was recorded as goodwill. We recorded measurement period adjustments based on our ongoing valuation and purchase price allocation procedures. We are still finalizing the valuation and purchase price allocation as it relates to the net working capital amount in the table below. The allocation of the purchase price is as follows (in thousands): Initial Purchase Price Allocation Measurement Period Adjustments Adjusted Purchase Price Allocation Life Net working capital $ 27,075 $ (772) $ 26,303 Property, plant and equipment 803 (8) 795 Purchased technology 39,400 — 39,400 5 years Trade name 7,200 — 7,200 5 years Customer relationships 75,500 — 75,500 5 years Other assets 170 27 197 Other noncurrent liabilities (604) (1,133) (1,737) Deferred taxes (23,187) — (23,187) Deferred revenue (29,997) — (29,997) Goodwill 179,521 1,752 181,273 Net assets acquired $ 275,881 $ (134) $ 275,747 The fair value of the intangible assets was estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to value the acquisition, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted average cost of capital. The valuation assumptions take into consideration our estimates of customer attrition, technology obsolescence, and revenue growth projections. Based on the preliminary valuation, the acquired intangible assets are comprised of customer relationships of approximately $75.5 million, existing technology of approximately $39.4 million, and trade names of approximately $7.2 million. Tangible assets acquired and assumed liabilities were recorded at fair value. We determined the acquisition date deferred revenue balance based on our assessment of the individual contracts acquired. A significant portion of the deferred revenue is expected to be recognized in the 12 months following the acquisition. We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $181.3 million of goodwill, which is not deductible for tax purposes. Acquisition-related transaction costs (e.g., legal, due diligence, valuation, and other professional fees) and certain acquisition restructuring and related charges are not included as a component of consideration transferred but are required to be expensed as incurred. During the three and nine months ended August 31, 2022, we incurred approximately $0.1 million and $0.9 million of acquisition-related costs, which are included in acquisition-related expenses on our consolidated statement of operations. We determined that disclosing the amount of Kemp related earnings included in the consolidated statements of operations is impracticable, as certain operations of Kemp were integrated into the operations of the Company from the date of acquisition. Pro Forma Information The following pro forma financial information presents the combined results of operations of Progress and Kemp as if the acquisition had occurred on December 1, 2019, after giving effect to certain pro forma adjustments. The pro forma adjustments reflected herein include only those adjustments that are directly attributable to the Kemp acquisition and factually supportable. These pro forma adjustments include: (i) an increase in revenue from Kemp as a result of the application of Topic 606 to recognize and measure contract assets and contract liabilities in the business combination, (ii) a net increase in amortization expense to record amortization expense relating to the $122.1 million of acquired identifiable intangible assets, (iii) a decrease in interest expense to remove the interest expense associated with Kemp’s debt obligations, and (iv) the income tax effect of the adjustments made at the statutory tax rate of the U.S. (approximately 24.5%). The pro forma financial information does not reflect any adjustments for anticipated expense savings resulting from the acquisition and is not necessarily indicative of the operating results that would have actually occurred had the transaction been consummated on December 1, 2019. These results are prepared in accordance with ASC 606. (in thousands, except per share data) Pro Forma Three Months Ended August 31, 2021 Revenue $ 163,735 Net income $ 30,420 Net income per basic share $ 0.70 Net income per diluted share $ 0.68 (in thousands, except per share data) Pro Forma Nine Months Ended August 31, 2021 Revenue $ 438,372 Net income $ 59,883 Net income per basic share $ 1.36 Net income per diluted share $ 1.34 Chef Acquisition On October 5, 2020, we completed the acquisition of Chef Software Inc. (“Chef”), which is described in greater detail in our 2021 10-K. The acquisition was completed for a base purchase price of $220.0 million (subject to certain customary adjustments) in cash. We funded the acquisition through a combination of existing cash resources and by drawing down $98.5 million from our then-existing revolving credit facility. Refer to Note 8: Debt for further information. The acquisition considerations for Chef has been allocated to Chef’s tangible assets, identifiable intangible assets, and assumed liabilities based on their estimated fair values. The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities was recorded as goodwill. We recorded measurement period adjustments in accordance with FASB’s guidance regarding business combinations in the third and fourth quarters of fiscal year 2021 based on our valuation and purchase price allocation procedures. The measurement period adjustments were completed during the fourth quarter of fiscal year 2021. The allocation of the purchase price is as follows (in thousands): Initial Purchase Price Allocation Measurement Period Adjustments Final Purchase Price Allocation Life Net working capital $ 52,330 $ 147 $ 52,477 Property, plant and equipment 498 — 498 Purchased technology 38,300 — 38,300 5 years Trade name 5,700 — 5,700 5 years Customer relationships 97,300 — 97,300 7 years Other assets 122 — 122 Other noncurrent liabilities (841) — (841) Lease liabilities, net (1,810) — (1,810) Deferred taxes (7,817) 126 (7,691) Deferred revenue (12,525) — (12,525) Goodwill 59,858 (273) 59,585 Net assets acquired $ 231,115 $ — $ 231,115 The fair value of the intangible assets was estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to value the acquisition, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted average cost of capital. The valuation assumptions take into consideration our estimates of customer attrition, technology obsolescence, and revenue growth projections. Tangible assets acquired and assumed liabilities were recorded at fair value. The valuation of the assumed deferred revenue was based on our contractual commitment to provide post-contract customer support to Chef customers and future contractual performance obligations under existing hosting arrangements. The fair value of this assumed liability was based on the estimated cost plus a reasonable margin to fulfill these service obligations. A significant portion of the deferred revenue was expected to be recognized in the 12 months following the acquisition. We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $59.6 million of goodwill, which is not deductible for tax purposes. Acquisition-related transaction costs (e.g., legal, due diligence, valuation, and other professional fees) and certain acquisition restructuring and related charges are not included as a component of consideration transferred but are required to be expensed as incurred. During the three and nine months ended August 31, 2022, we incurred approximately $0.1 million and $0.2 million of acquisition-related costs, which are included in acquisition-related expenses on our consolidated statement of operations. The operations of Chef were included in our operating results beginning on the date of acquisition. We determined that disclosing the amount of Chef related earnings included in the consolidated statements of operations is impracticable, as certain operations of Chef were integrated into the operations of the Company from the date of acquisition. |
Debt
Debt | 9 Months Ended |
Aug. 31, 2022 | |
Line of Credit Facility [Abstract] | |
Debt | Debt As of August 31, 2022, future maturities of the Company's long-term debt were as follows: (In thousands) 2026 Notes Revolving Credit Facility Total Remainder of 2022 $ — $ 1,719 $ 1,719 2023 — 6,875 6,875 2024 — 13,750 13,750 2025 — 20,625 20,625 2026 — 20,625 20,625 2027 360,000 206,250 566,250 Total face value of long-term debt 360,000 269,844 629,844 Unamortized discount and issuance costs (7,892) (2,831) (10,723) Less current portion of long-term debt, net — (6,234) (6,234) Long-term debt $ 352,108 $ 260,779 $ 612,887 Notes Payable Convertible Senior Notes and Capped Calls In April 2021, the Company issued, in a private placement to certain initial purchasers in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act in transactions not involving any public offering, for resale by the initial purchasers to persons whom the initial purchasers believe are qualified institutional buyers pursuant to Rule144A under the Securities Act, the Notes with an aggregate principal amount of $325.0 million, due April 15, 2026, unless earlier repurchased, redeemed or converted. The proceeds from the Notes were used or are anticipated to be used for the Capped Call Transactions (described below), working capital, and other general corporate purposes, including acquisitions. There are no required principal payments prior to maturity. In addition, the Company also granted the initial purchasers of the Notes an option to purchase up to an additional $50.0 million aggregate principal amount of the Notes, for settlement within a 13-day period beginning on, and including, April 13, 2021, of which $35.0 million of additional Notes were purchased for total proceeds of $360.0 million. The Notes bear interest at an annual rate of 1%, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021. The Company incurred approximately $10.8 million in issuance cost for the issuance of the Notes. During the nine months ended August 31, 2022, the Company did not enter into any new or amended Notes. Conversion Rights The Company will satisfy its conversion obligations by paying cash up to the aggregate principal amount of Notes to be converted, by issuing shares of its common stock or a combination of cash and shares of its common stock, at its election. The initial conversion rate is 17.4525 shares of common stock per $1,000 principal amount of the Notes, representing an initial conversion price of approximately $57.30 per share of common stock. The conversion rate will be adjusted upon the occurrence of certain events, including spin-offs, tender offers, exchange offers, make-whole fundamental change and certain stockholder distributions. Repurchase Rights On or after April 20, 2024, and on or before the 50th scheduled trading day immediately before the maturity date, the Company may redeem for cash all or part of the Notes, subject to the partial redemption limitation, at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest, if the last reported sale price per share of the Company’s common stock exceeded 130% of the conversion price on; (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice and (ii) the trading day immediately before the date the Company sends such notice. Pursuant to the partial redemption limitation, the Company may not elect to redeem less than all of the outstanding Notes unless at least $100.0 million aggregate principal amount of Notes are outstanding and not subject to redemption as of the time it sends the related redemption notice. If certain corporate events that constitute a “fundamental change” (as described below) occur at any time, holders may, subject to certain exceptions, require the Company to purchase their Notes in whole or in part for cash at a price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. A fundamental change relates to events such as business combination transactions involving the Company and certain de-listing events with respect to the Company’s common stock. Capped Call Transactions On April 8, 2021, in connection with the pricing of the Notes, the Company entered into privately negotiated capped call transactions (“Capped Call Transactions”) with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions. The Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, approximately 6.3 million shares (representing the number of shares of common stock initially underlying the Notes) of the Company’s common stock. The Capped Call Transactions are generally expected to reduce potential dilution to our common stock upon any conversion of Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the Capped Call Transactions will initially be $89.88 per share of common stock, which represents a premium of 100% over the last reported sale price of the common stock of $44.94 per share on April 8, 2021 and is subject to certain adjustments under the terms of the Capped Call Transactions. The cost of the purchased capped calls of $43.1 million was recorded as a reduction to additional paid-in-capital. We elected to integrate the capped call options with the applicable Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $43.1 million gross cost of the purchased capped calls will be deductible for income tax purposes as original discount interest over the term of the Notes. We recorded deferred tax assets of $10.6 million with respect to the capped calls which represents the tax benefit of these deductions with an offsetting entry to additional paid-in capital. Accounting for the Notes In accounting for the transaction, prior to the adoption of ASU 2020-06 on December 1, 2021, the Notes were separated into liability and equity components. • The conversion option of the Notes does not require bifurcation as an embedded derivative. • The initial carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The excess of the Notes’ principal amount over the initial carrying amount of the liability component, referred to as the debt discount, is amortized as interest expense over the Notes’ contractual term - at an effective interest rate of 5.7%. • The equity component, which represents the difference between the gross proceeds and the initial liability component, was recorded as an increase to additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The Company incurred issuance costs of $10.8 million related to the Notes, allocated between the Notes’ liability and equity components proportionate to the initial carrying amount of the liability and equity components prior to the adoption of ASU 2020-06. • Issuance costs attributable to the liability component of $8.9 million are recorded as an offset to the Notes’ principal balance. They are amortized as interest expense using the effective interest method over the contractual term of the Notes. • Issuance costs attributable to the equity component of $1.9 million are recorded as an offset to the equity component in additional paid-in capital and are not amortized. Upon adoption of ASU 2020-06 on December 1, 2021, the Company reversed the separation of the debt and equity components and accounted for the Notes wholly as debt. The Company also reversed the amortization of the debt discount that was due to the equity component, with a cumulative adjustment to retained earnings on the adoption date. Further, the Company reversed the allocation of the issuance costs to the equity component and accounted for the entire amount as debt issuance cost that will be amortized as interest expense over the remaining term at an effective interest rate of 1.63% with a cumulative adjustment to retained earnings on the adoption date. Refer to Note 1, Basis of Presentation for further details on the impact of adoption. Interest expense related to the Notes: Three Months Ended Nine Months Ended (In thousands) August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Contractual interest expense (1% coupon) $ 900 $ 900 $ 2,690 $ 1,370 Amortization of debt discount and issuance costs 541 3,260 1,595 4,942 $ 1,441 $ 4,160 $ 4,285 $ 6,312 After the adoption of ASU 2020-06, the effective interest rate for the Notes is 1.63%. Prior to adoption of ASU 2020-06, the effective interest rate for the Notes was 5.71%. Credit Facility On January 25, 2022, the Company entered into an amended and restated credit agreement (the "Credit Agreement"), which provides for a $275.0 million secured term loan and a $300.0 million secured revolving line of credit. The revolving credit facility may be increased, and new term loan commitments may be entered into, by up to an additional amount up to the sum of (A) the greater of (x) $260.0 million and (y) 100% of Consolidated EBITDA (as defined in the Credit Agreement) and (B) an unlimited additional amount subject to pro forma compliance with a Consolidated Senior Secured Net Leverage Ratio of no greater than 3.75 to 1.00 if the existing or additional lenders are willing to make such increased commitments. The revolving line of credit has sublimits for swing line loans up to $25.0 million and for the issuance of standby letters of credit in a face amount up to $25.0 million. This new credit facility replaces our prior secured credit facility dated April 30, 2019. The amount of the term loan outstanding under our prior secured credit facility was incorporated into the amended and restated credit facility. Interest rates for the Credit Agreement are determined by reference to a term benchmark rate or a base rate at our option and would range from 1.00% to 2.00% above the term benchmark rate or would range from 0.00% to 1.00% above the defined base rate for base rate borrowings, in each case based upon our leverage ratio. Additionally, we may borrow certain foreign currencies at rates set in the same range above the respective term benchmark rates for those currencies, based on our leverage ratio. We will incur a quarterly commitment fee on the undrawn portion of the revolving credit facility, ranging from 0.125% to 0.275% per annum, based upon our leverage ratio. At closing of the revolving credit facility, the applicable interest rate and commitment fee are at the third lowest rate in each range. The Credit Agreement matures on the earlier of (i) January 25, 2027, and (ii) the date that is 181 days prior to the maturity date of our Notes subject to certain conditions as set forth in the Credit Agreement, including the repayment of the Notes, the refinancing of the Notes including a maturity date that is at least 181 days after January 25, 2027 and compliance with a liquidity test when all amounts outstanding will be due and payable in full. The revolving line of credit does not require amortization of principal. The outstanding balance of the term loan as of August 31, 2022 was $269.8 million, with $6.9 million due in the next 12 months. The term loan requires repayment of principal at the end of each fiscal quarter, beginning with the fiscal quarter ended February 28, 2022. The principal repayment amounts are in accordance with the following schedule: (i) eight payments of $1.7 million each, (ii) four payments of $3.4 million each, (iii) eight payments of $5.2 million each, and (iv) the last payment is of the remaining principal amount. Any amounts outstanding under the term loan thereafter would be due on the maturity date. The term loan may be prepaid before maturity in whole or in part at our option without penalty or premium. As of August 31, 2022, the carrying value of the term loan approximates the fair value, based on Level 2 inputs (observable market prices in less than active markets), as the interest rate is variable over the selected interest period and is similar to current rates at which we can borrow funds. The interest rate as of August 31, 2022 was 3.81%. Costs incurred to obtain our long-term debt of $3.2 million, including $1.1 million of unamortized debt issuance costs related to the previous credit agreement, are recorded as debt issuance costs as a direct deduction from the carrying value of the long-term debt liability on our condensed consolidated balance sheets as of August 31, 2022. These costs are being amortized over the term of the Credit Agreement using the effective interest rate method. Amortization expense related to the debt issuance costs was $0.2 million and $0.1 million, for the three months ended August 31, 2022 and August 31, 2021, respectively. Amortization expense related to the debt issuance costs was $0.5 million and $0.4 million for the nine months ended August 31, 2022 and August 31, 2021, respectively. These amounts are recorded in interest expense on our condensed consolidated statements of operations. |
Leases
Leases | 9 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for administrative, product development, and sales and marketing facilities, vehicles, and equipment under various non-cancelable lease agreements. The Company’s leases have remaining lease terms ranging from 1 year to 8 years. The Company’s lease terms may include options to extend or terminate the lease where it is reasonably certain that the Company will exercise those options. The Company considers several economic factors when making the determination as to whether the Company will exercise options to extend or terminate the lease, including but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, or specific characteristics unique to a particular lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Consideration in the contract is comprised of any fixed payments and variable payments that depend on an index or rate. Payments in the Company's operating lease arrangements primarily consist of base office rent. The Company makes variable payments on certain of its leases related to taxes, insurance, common area maintenance, and utilities, among other things. The components of operating lease cost for the three and nine months ended August 31, 2022 were as follows (in thousands): Three Months Ended Nine Months Ended August 31, 2022 August 31, 2022 Lease costs under long-term operating leases $ 1,760 $ 5,344 Lease costs under short-term operating leases 19 50 Variable lease cost under short-term and long-term operating leases (1) 143 437 Total operating lease cost $ 1,922 $ 5,831 (1) Lease costs that are not fixed at lease commencement. The components of operations lease cost for the three and nine months ended August 31, 2021 were as follows (in thousands): Three Months Ended Nine Months Ended August 31, 2021 August 31, 2021 Lease costs under long-term operating leases $ 1,991 $ 6,135 Lease costs under short-term operating leases 3 22 Variable lease cost under short-term and long-term operating leases (1) 130 280 Operating lease right-of-use asset impairment — 36 Total operating lease cost $ 2,124 $ 6,473 (1) Lease costs that are not fixed at lease commencement. The table below presents supplemental cash flow information related to leases during the nine months ended August 31, 2022 and August 31, 2021 (in thousands): Nine Months Ended August 31, 2022 August 31, 2021 Cash paid for leases $ 6,481 $ 6,440 Right-of-use assets recognized for new leases and amendments (non-cash) $ 343 $ 3,222 Weighted average remaining lease term in years and weighted average discount rate are as follows: August 31, 2022 November 30, 2021 Weighted average remaining lease term in years 3.54 4.15 Weighted average discount rate 2.7 % 2.6 % Future payments under non-cancellable leases are as follows (in thousands): August 31, 2022 Remainder of 2022 $ 2,100 2023 7,823 2024 7,444 2025 4,867 2026 1,781 Thereafter 1,300 Total lease payments 25,315 Less imputed interest (1) (1,210) Present value of lease liabilities $ 24,105 (1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated as a result of a lease reassessment event. |
Common Stock Repurchases
Common Stock Repurchases | 9 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
Common Stock Repurchases | Common Stock RepurchasesIn January 2020, our Board of Directors increased the total share repurchase authorization from $75 million to $250 million. In the three months ended August 31, 2022, we repurchased and retired 0.5 million shares for $24.1 million. In the three months ended August 31, 2021, we did not repurchase any shares of our common stock. In the nine months ended August 31, 2022 and August 31, 2021, we repurchased and retired 1.7 million shares for $75.5 million and 0.8 million shares for $35.0 million, respectively. The shares were repurchased in both periods as part of our Board of Directors authorized share repurchase program. As of August 31, 2022, there was $79.5 million remaining under the current authorization. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Aug. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards, less the present value of expected dividends when applicable, measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using the current market price of the stock, the Black-Scholes option valuation model, or the Monte Carlo Simulation valuation model. In 2020, 2021 and 2022, we granted performance-based restricted stock units that include two performance metrics under our Long-Term Incentive Plan ("LTIP") where the performance measurement period is three years. Vesting of the LTIP awards on the 2020 plan is based on the following: (i) 50% is based on our level of attainment of specified total stockholder return ("TSR") targets relative to the percentage appreciation of a specified index of companies for the respective three-year periods, and (ii) 50% is based on achievement of a three-year cumulative performance condition (operating income). For the 2021 and 2022 plan, the vesting terms were changed to the following: (i) 25% is based on our level of attainment of specified TSR targets relative to the percentage appreciation of a specified index of companies for the respective three-year periods, and (ii) 75% is based on achievement of a three-year cumulative operating income. In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model for the market condition portion of the award, and used the closing price of our common stock on the date of grant for the portion related to the performance condition. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense related to options and restricted stock units on a straight-line basis over the service period of the award, which is generally 4 years for options and 3 years for restricted stock units. We recognize stock-based compensation expense related to our employee stock purchase plan using an accelerated attribution method. The following table provides the classification of stock-based compensation as reflected on our condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Cost of maintenance and services $ 527 $ 374 $ 1,410 $ 1,234 Sales and marketing 1,331 1,424 3,423 4,679 Product development 2,586 1,848 7,548 6,179 General and administrative 4,195 3,193 13,729 9,893 Total stock-based compensation $ 8,639 $ 6,839 $ 26,110 $ 21,985 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balances of other comprehensive loss during the nine months ended August 31, 2022 (in thousands): Foreign Currency Translation Adjustment Unrealized Losses on Investments Unrealized (Losses) Gains on Hedging Activity Accumulated Other Comprehensive Loss Balance, December 1, 2021 $ (30,055) $ (49) $ (2,339) $ (32,443) Other comprehensive (loss) income before reclassifications, net of tax (10,955) (13) 4,882 (6,086) Balance, August 31, 2022 $ (41,010) $ (62) $ 2,543 $ (38,529) The tax effect on accumulated unrealized losses and gains on investments and hedging activity was $0.9 million and $0.7 million as of August 31, 2022 and November 30, 2021, respectively. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Timing of Revenue Recognition Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands): Three Months Ended Nine Months Ended (In thousands) August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Performance obligations transferred at a point in time: Software licenses $ 47,618 $ 51,930 $ 135,182 $ 115,354 Performance obligations transferred over time: Maintenance 91,043 82,875 272,337 239,921 Services 12,556 12,612 37,367 35,910 Total revenue $ 151,217 $ 147,417 $ 444,886 $ 391,185 Geographic Revenue In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from EMEA, Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Three Months Ended Nine Months Ended (In thousands) August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 North America $ 84,826 $ 93,880 $ 248,313 $ 236,479 EMEA 52,670 40,999 156,006 122,560 Latin America 4,577 5,298 13,138 12,544 Asia Pacific 9,144 7,240 27,429 19,602 Total revenue $ 151,217 $ 147,417 $ 444,886 $ 391,185 No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our total revenue for the three and nine months ended August 31, 2022 and August 31, 2021. Contract Balances Unbilled Receivables and Contract Assets The timing of revenue recognition may differ from the timing of customer invoicing. When revenue is recognized prior to invoicing and the right to the amount due from customers is conditioned only on the passage of time, we record an unbilled receivable on our condensed consolidated balance sheets. Our multi-year term license arrangements, which are typically billed annually, result in revenue recognition in advance of invoicing and the recognition of unbilled receivables. As of August 31, 2022, invoicing of our long-term unbilled receivables is expected to occur as follows (in thousands): 2023 $ 4,246 2024 11,390 2025 7,137 2026 3,199 Total $ 25,972 Contract assets, which arise when revenue is recognized prior to invoicing and the right to the amount due from customers is conditioned on something other than the passage of time, such as the completion of a related performance obligation, were $2.4 million as of August 31, 2022 and $5.0 million as of November 30, 2021. These amounts are included in unbilled receivables or long-term unbilled receivables on our condensed consolidated balance sheets. Deferred Revenue Deferred revenue is recorded when revenue is recognized subsequent to customer invoicing. Our deferred revenue balance is primarily made up of deferred maintenance. As of August 31, 2022, the changes in deferred revenue were as follows (in thousands): Balance, December 1, 2021 $ 252,380 Billings and other 443,627 Revenue recognized (444,886) Balance, August 31, 2022 $ 251,121 Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of August 31, 2022, transaction price allocated to remaining performance obligations was $256 million. We expect to recognize approximately 78% of the revenue within the next year and the remainder thereafter. Deferred Contract Costs Certain of our sales incentive programs meet the requirements to be capitalized. Depending upon the sales incentive program and the related revenue arrangement, such capitalized costs are amortized over the longer of (i) the product life, which is generally three three |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Aug. 31, 2022 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges The following table provides a summary of activity for our restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2021 $ 4,483 $ 1,889 $ 6,372 Costs incurred 319 465 784 Cash disbursements (772) (2,247) (3,019) Translation adjustments and other — (1) (1) Balance, August 31, 2022 $ 4,030 $ 106 $ 4,136 During the fourth quarter of fiscal year 2021, we restructured our operations in connection with the acquisition of Kemp. Refer to Note 7: Business Combinations for further discussion. This restructuring resulted in a reduction in redundant positions, primarily within the administrative functions of Kemp. For the three and nine months ended August 31, 2022, we incurred expenses of $0.1 million and $0.5 million, respectively, related to this restructuring. The expenses are recorded as restructuring expenses in the consolidated statements of operations. A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2021 $ — $ 1,882 $ 1,882 Costs incurred — 465 465 Cash disbursements — (2,240) (2,240) Translation adjustments and other — (1) (1) Balance, August 31, 2022 $ — $ 106 $ 106 Cash disbursements for expenses incurred to date under this restructuring are expected to be made through fiscal year 2022. Accordingly, the balance of the restructuring liability of $0.1 million is included in other accrued liabilities on the consolidated balance sheet at August 31, 2022. We expect to incur additional expenses as part of this action related to employee costs during fiscal year 2022, but we do not expect these costs to be material. During the fourth quarter of fiscal year 2020, we restructured our operations in connection with the acquisition of Chef. Refer to Note 7: Business Combinations for further discussion. This restructuring resulted in a reduction in redundant positions, primarily within administrative functions of Chef. For the three and nine months ended August 31, 2022, we incurred expenses of $0.2 million and $0.3 million, respectively, related to this restructuring. The expenses are recorded as restructuring expenses in the consolidated statements of operations. A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2021 $ 4,483 $ 7 $ 4,490 Costs incurred 319 — 319 Cash disbursements (772) (7) (779) Balance, August 31, 2022 $ 4,030 $ — $ 4,030 Cash disbursements for expenses incurred to date under this restructuring are expected to be made through fiscal year 2027. Accordingly, $1.0 million and $3.0 million of the total restructuring liability of $4.0 million is included in short-term and long-term lease liabilities, respectively, on the consolidated balance sheet at August 31, 2022. We do not expect to incur additional material expenses as part of this action. |
Income Taxes
Income Taxes | 9 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision for the third quarter of fiscal years 2022 and 2021 reflects our estimate of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events, which are recorded in the period in which they occur. The estimates are reevaluated each quarter based on our estimated tax expense for the full fiscal year. Our effective tax rate was 21% in the third fiscal quarter of 2022, compared to 22% in the third fiscal quarter of 2021.There were no significant discrete tax items in the third fiscal quarter of either 2022 or 2021. Our federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2018. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2017. Tax authorities for certain non-U.S. jurisdictions are also examining returns. With some exceptions, we are generally not subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2016 because they are closed by statute. |
Earnings per share
Earnings per share | 9 Months Ended |
Aug. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data): Three Months Ended Nine Months Ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Net income $ 21,797 $ 30,976 $ 71,361 $ 63,494 Weighted average shares outstanding 43,211 43,762 43,589 43,896 Basic earnings per common share $ 0.50 $ 0.71 $ 1.64 $ 1.45 Diluted earnings per common share: Net income $ 21,797 $ 30,976 $ 71,361 $ 63,494 Weighted average shares outstanding 43,211 43,762 43,589 43,896 Effect of dilution from common stock equivalents 724 740 710 646 Diluted weighted average shares outstanding 43,935 44,502 44,299 44,542 Diluted earnings per share $ 0.50 $ 0.70 $ 1.61 $ 1.43 We excluded stock awards representing approximately 1,777,000 and 1,739,000 shares of common stock from the calculation of diluted earnings per share in the three and nine months ended August 31, 2022, respectively, as these awards were anti-dilutive. In the three and nine months ended August 31, 2021, we excluded stock awards representing 1,250,000 shares and 1,241,000 shares of common stock, respectively, from the calculation of diluted earnings per share as they were anti-dilutive. As a result of our adoption of ASU 2020-06 on December 1, 2021, the dilutive impact of the Notes on our calculation of diluted earnings per share is considered using the if-converted method. However, because the principal amount of the Notes must be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any, of the Notes. During the three and nine months ended August 31, 2022, we did not include the Notes in our diluted earnings per share calculation because the conversion feature in the Notes was out of the money. For periods prior to our December 1, 2021 adoption of ASU 2020-06, we applied the treasury stock method to account for the dilutive impact of the Notes for diluted earnings per share purposes. |
Segment Information
Segment Information | 9 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. Our CODM is our Chief Executive Officer. We operate as one operating segment: software products to develop, deploy, and manage high-impact business applications. Our CODM evaluates financial information on a consolidated basis. As we operate as one operating segment, the required financial segment information can be found in the condensed consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2021, as filed with the SEC on January 27, 2022, as amended by a Form 10-K/A filed on March 30, 2022 (together, the "2021 10-K"). We made no material changes in the application of our significant accounting policies that were disclosed in our 2021 10-K. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our 2021 10-K, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an on-going basis, management evaluates its estimates and records changes in estimates in the period in which they become known. These estimates are based on historical data and experience, as well as various other assumptions that management believes to be reasonable under the circumstances. The most significant estimates relate to: the timing and amount of revenue recognition, including the determination of the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and the transaction price allocated to performance obligations; the realization of tax assets and estimates of tax liabilities; fair values of investments in marketable securities; intangible assets and goodwill valuations; the recognition and disclosure of contingent liabilities; the collectability of accounts receivable; and assumptions used to determine the fair value of stock-based compensation. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 updates specific areas of ASC 740, Income Taxes, to reduce complexity while maintaining or improving the usefulness of the information provided to users of financial statements. The Company adopted this standard effective December 1, 2021. The adoption of this standard did not have a material effect on the Company's condensed consolidated financial position and results of operations. Convertible Debt On December 1, 2021, we early adopted Accounting Standards Update No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06") on a modified retrospective basis. Under ASU 2020-06, we no longer separate the convertible senior notes into liability and equity components. We recognized the cumulative effect of initially applying this new standard as of December 1, 2021, as an adjustment to the December 1, 2021 opening balance of retained earnings. The conversion option that was previously accounted for in equity under the cash conversion model was recombined into the convertible debt outstanding, and as a result, additional paid in capital and the related unamortized debt discount on the convertible senior notes were reduced. The removal of the remaining debt discount recorded for this previous separation has the effect of increasing our net debt balance. We recorded a $47.5 million decrease to additional paid-in capital, a $56.0 million decrease to debt discount, a $4.9 million increase to retained earnings, and a $13.4 million decrease to long-term deferred tax liabilities. There was no impact to the Company’s statements of cash flows as the result of the adoption of ASU 2020-06. The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. See Note 8: Debt for additional information regarding the terms of the Convertible Senior Notes (the "Notes"). The new standard requires the use of the "if-converted" method to calculate the diluted earnings per common share. Refer to Note 16: Earnings Per Share for effect of the convertible notes on diluted earnings per common share. |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Investments and Cash [Abstract] | |
Summary of Cash, Cash Equivalents and Available-for-sale Investments | A summary of our cash, cash equivalents and available-for-sale investments at August 31, 2022 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 197,777 $ — $ — $ 197,777 Money market funds 26,338 — — 26,338 U.S. treasury bonds 750 — (1) 749 Total $ 224,865 $ — $ (1) $ 224,864 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2021 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 130,371 $ — $ — $ 130,371 Money market funds 25,035 — — 25,035 U.S. treasury bonds 748 9 — 757 Corporate bonds 1,203 7 — 1,210 Total $ 157,357 $ 16 $ — $ 157,373 |
Summary of Cash, Cash Equivalents and Available-for-sale Investments by Balance Sheet Classification | Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands): August 31, 2022 November 30, 2021 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 197,777 $ — $ 130,371 $ — Money market funds 26,338 — 25,035 — U.S. treasury bonds — 749 — 757 Corporate bonds — — — 1,210 Total $ 224,115 $ 749 $ 155,406 $ 1,967 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | The following table presents our interest rate swap contract where the notional amount reflects the quarterly amortization of the interest rate swap, which is equal to approximately one-half of the corresponding reduction in the balance of our term loan as we make scheduled principal payments. The fair value of the derivative represents the discounted value of the expected future discounted cash flows for the interest rate swap, based on the amortization schedule and the current forward curve for the remaining term of the contract, as of the date of each reporting period (in thousands): August 31, 2022 November 30, 2021 Notional Value Fair Value Notional Value Fair Value Interest rate swap contracts designated as cash flow hedges $ 123,750 $ 3,346 $ 133,125 $ (3,078) The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): August 31, 2022 November 30, 2021 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 81,089 $ (4,211) $ 79,777 $ (371) Forward contracts to purchase U.S. dollars 618 4 119 (1) Total $ 81,707 $ (4,207) $ 79,896 $ (372) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Within the Fair Value Hierarchy of the Financial Assets | The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at August 31, 2022 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 26,338 $ 26,338 $ — $ — U.S. treasury bonds 749 — 749 — Interest rate swap 3,346 — 3,346 — Liabilities Foreign exchange derivatives $ (4,207) $ — $ (4,207) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2021 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 25,035 $ 25,035 $ — $ — U.S. treasury bonds 757 — 757 — Corporate bonds 1,210 — 1,210 — Liabilities Foreign exchange derivatives (372) — (372) — Interest rate swap $ (3,078) $ — $ (3,078) $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The components of inventories were as follows (in thousands): August 31, 2022 November 30, 2021 Finished goods $ 1,773 $ 1,631 Purchased parts and fabricated assemblies 2,867 1,920 Total $ 4,640 $ 3,551 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are comprised of the following significant classes (in thousands): August 31, 2022 November 30, 2021 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 212,700 $ (145,389) $ 67,311 $ 212,700 $ (128,797) $ 83,903 Customer-related 306,308 (152,864) 153,444 306,308 (119,357) 186,951 Trademarks and trade names 37,611 (24,930) 12,681 37,611 (21,556) 16,055 Non-compete agreement 2,000 (2,000) — 2,000 (1,724) 276 Total $ 558,619 $ (325,183) $ 233,436 $ 558,619 $ (271,434) $ 287,185 |
Schedule of Future Amortization Expense From Intangible Assets Held | Future amortization expense for intangible assets as of August 31, 2022, is as follows (in thousands): Remainder of 2022 $ 17,177 2023 68,895 2024 56,079 2025 45,569 2026 35,968 Thereafter 9,748 Total $ 233,436 |
Schedule of Goodwill | Changes in the carrying amount of goodwill in the nine months ended August 31, 2022 are as follows (in thousands): Balance, November 30, 2021 $ 671,152 Measurement period adjustments 1,752 Translation adjustments (3) Balance, August 31, 2022 $ 672,901 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase price is as follows (in thousands): Initial Purchase Price Allocation Measurement Period Adjustments Adjusted Purchase Price Allocation Life Net working capital $ 27,075 $ (772) $ 26,303 Property, plant and equipment 803 (8) 795 Purchased technology 39,400 — 39,400 5 years Trade name 7,200 — 7,200 5 years Customer relationships 75,500 — 75,500 5 years Other assets 170 27 197 Other noncurrent liabilities (604) (1,133) (1,737) Deferred taxes (23,187) — (23,187) Deferred revenue (29,997) — (29,997) Goodwill 179,521 1,752 181,273 Net assets acquired $ 275,881 $ (134) $ 275,747 The allocation of the purchase price is as follows (in thousands): Initial Purchase Price Allocation Measurement Period Adjustments Final Purchase Price Allocation Life Net working capital $ 52,330 $ 147 $ 52,477 Property, plant and equipment 498 — 498 Purchased technology 38,300 — 38,300 5 years Trade name 5,700 — 5,700 5 years Customer relationships 97,300 — 97,300 7 years Other assets 122 — 122 Other noncurrent liabilities (841) — (841) Lease liabilities, net (1,810) — (1,810) Deferred taxes (7,817) 126 (7,691) Deferred revenue (12,525) — (12,525) Goodwill 59,858 (273) 59,585 Net assets acquired $ 231,115 $ — $ 231,115 |
Business Acquisition, Pro Forma Information | These results are prepared in accordance with ASC 606. (in thousands, except per share data) Pro Forma Three Months Ended August 31, 2021 Revenue $ 163,735 Net income $ 30,420 Net income per basic share $ 0.70 Net income per diluted share $ 0.68 (in thousands, except per share data) Pro Forma Nine Months Ended August 31, 2021 Revenue $ 438,372 Net income $ 59,883 Net income per basic share $ 1.36 Net income per diluted share $ 1.34 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Line of Credit Facility [Abstract] | |
Schedule of Maturities of Long-term Debt | As of August 31, 2022, future maturities of the Company's long-term debt were as follows: (In thousands) 2026 Notes Revolving Credit Facility Total Remainder of 2022 $ — $ 1,719 $ 1,719 2023 — 6,875 6,875 2024 — 13,750 13,750 2025 — 20,625 20,625 2026 — 20,625 20,625 2027 360,000 206,250 566,250 Total face value of long-term debt 360,000 269,844 629,844 Unamortized discount and issuance costs (7,892) (2,831) (10,723) Less current portion of long-term debt, net — (6,234) (6,234) Long-term debt $ 352,108 $ 260,779 $ 612,887 |
Schedule of Interest Expense Related to Notes | Interest expense related to the Notes: Three Months Ended Nine Months Ended (In thousands) August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Contractual interest expense (1% coupon) $ 900 $ 900 $ 2,690 $ 1,370 Amortization of debt discount and issuance costs 541 3,260 1,595 4,942 $ 1,441 $ 4,160 $ 4,285 $ 6,312 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of operating lease cost for the three and nine months ended August 31, 2022 were as follows (in thousands): Three Months Ended Nine Months Ended August 31, 2022 August 31, 2022 Lease costs under long-term operating leases $ 1,760 $ 5,344 Lease costs under short-term operating leases 19 50 Variable lease cost under short-term and long-term operating leases (1) 143 437 Total operating lease cost $ 1,922 $ 5,831 (1) Lease costs that are not fixed at lease commencement. The components of operations lease cost for the three and nine months ended August 31, 2021 were as follows (in thousands): Three Months Ended Nine Months Ended August 31, 2021 August 31, 2021 Lease costs under long-term operating leases $ 1,991 $ 6,135 Lease costs under short-term operating leases 3 22 Variable lease cost under short-term and long-term operating leases (1) 130 280 Operating lease right-of-use asset impairment — 36 Total operating lease cost $ 2,124 $ 6,473 (1) Lease costs that are not fixed at lease commencement. The table below presents supplemental cash flow information related to leases during the nine months ended August 31, 2022 and August 31, 2021 (in thousands): Nine Months Ended August 31, 2022 August 31, 2021 Cash paid for leases $ 6,481 $ 6,440 Right-of-use assets recognized for new leases and amendments (non-cash) $ 343 $ 3,222 Weighted average remaining lease term in years and weighted average discount rate are as follows: August 31, 2022 November 30, 2021 Weighted average remaining lease term in years 3.54 4.15 Weighted average discount rate 2.7 % 2.6 % |
Lessee, Operating Lease, Liability, Maturity | Future payments under non-cancellable leases are as follows (in thousands): August 31, 2022 Remainder of 2022 $ 2,100 2023 7,823 2024 7,444 2025 4,867 2026 1,781 Thereafter 1,300 Total lease payments 25,315 Less imputed interest (1) (1,210) Present value of lease liabilities $ 24,105 (1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated as a result of a lease reassessment event. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Classification of Stock-based Compensation | The following table provides the classification of stock-based compensation as reflected on our condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Cost of maintenance and services $ 527 $ 374 $ 1,410 $ 1,234 Sales and marketing 1,331 1,424 3,423 4,679 Product development 2,586 1,848 7,548 6,179 General and administrative 4,195 3,193 13,729 9,893 Total stock-based compensation $ 8,639 $ 6,839 $ 26,110 $ 21,985 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated balances of other comprehensive loss during the nine months ended August 31, 2022 (in thousands): Foreign Currency Translation Adjustment Unrealized Losses on Investments Unrealized (Losses) Gains on Hedging Activity Accumulated Other Comprehensive Loss Balance, December 1, 2021 $ (30,055) $ (49) $ (2,339) $ (32,443) Other comprehensive (loss) income before reclassifications, net of tax (10,955) (13) 4,882 (6,086) Balance, August 31, 2022 $ (41,010) $ (62) $ 2,543 $ (38,529) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From External Customers by Products and Services | Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands): Three Months Ended Nine Months Ended (In thousands) August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Performance obligations transferred at a point in time: Software licenses $ 47,618 $ 51,930 $ 135,182 $ 115,354 Performance obligations transferred over time: Maintenance 91,043 82,875 272,337 239,921 Services 12,556 12,612 37,367 35,910 Total revenue $ 151,217 $ 147,417 $ 444,886 $ 391,185 |
Revenue From External Customers From Different Geographical Areas | In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from EMEA, Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Three Months Ended Nine Months Ended (In thousands) August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 North America $ 84,826 $ 93,880 $ 248,313 $ 236,479 EMEA 52,670 40,999 156,006 122,560 Latin America 4,577 5,298 13,138 12,544 Asia Pacific 9,144 7,240 27,429 19,602 Total revenue $ 151,217 $ 147,417 $ 444,886 $ 391,185 |
Schedule of Contract With Customer, Asset and Liability | As of August 31, 2022, invoicing of our long-term unbilled receivables is expected to occur as follows (in thousands): 2023 $ 4,246 2024 11,390 2025 7,137 2026 3,199 Total $ 25,972 As of August 31, 2022, the changes in deferred revenue were as follows (in thousands): Balance, December 1, 2021 $ 252,380 Billings and other 443,627 Revenue recognized (444,886) Balance, August 31, 2022 $ 251,121 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Restructuring Charges [Abstract] | |
Summary of Restructuring Activity | The following table provides a summary of activity for our restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2021 $ 4,483 $ 1,889 $ 6,372 Costs incurred 319 465 784 Cash disbursements (772) (2,247) (3,019) Translation adjustments and other — (1) (1) Balance, August 31, 2022 $ 4,030 $ 106 $ 4,136 A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2021 $ — $ 1,882 $ 1,882 Costs incurred — 465 465 Cash disbursements — (2,240) (2,240) Translation adjustments and other — (1) (1) Balance, August 31, 2022 $ — $ 106 $ 106 A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2021 $ 4,483 $ 7 $ 4,490 Costs incurred 319 — 319 Cash disbursements (772) (7) (779) Balance, August 31, 2022 $ 4,030 $ — $ 4,030 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Aug. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data): Three Months Ended Nine Months Ended August 31, 2022 August 31, 2021 August 31, 2022 August 31, 2021 Net income $ 21,797 $ 30,976 $ 71,361 $ 63,494 Weighted average shares outstanding 43,211 43,762 43,589 43,896 Basic earnings per common share $ 0.50 $ 0.71 $ 1.64 $ 1.45 Diluted earnings per common share: Net income $ 21,797 $ 30,976 $ 71,361 $ 63,494 Weighted average shares outstanding 43,211 43,762 43,589 43,896 Effect of dilution from common stock equivalents 724 740 710 646 Diluted weighted average shares outstanding 43,935 44,502 44,299 44,542 Diluted earnings per share $ 0.50 $ 0.70 $ 1.61 $ 1.43 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Thousands, developer in Millions | 9 Months Ended | |
Aug. 31, 2022 USD ($) software_vendor developer | Nov. 30, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of independent software vendors (more than) | software_vendor | 1,700 | |
Number of developers | developer | 3.5 | |
Decrease to additional paid in capital | $ (318,559) | $ (354,235) |
Retained earnings | 86,513 | 90,256 |
Decrease to deferred tax liabilities | $ (5,712) | (14,163) |
Cumulative effect of adoption of ASU 2020-06 | Accounting Standards Update 2020-06 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease to additional paid in capital | 47,500 | |
Decrease to debt discount | 56,000 | |
Retained earnings | 4,900 | |
Decrease to deferred tax liabilities | $ 13,400 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Summary Of Cash, Cash Equivalents and Available-For-Sale Investments (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | $ 224,115 | $ 155,406 |
Unrealized Gains | 0 | 16 |
Unrealized Losses | (1) | 0 |
Total amortized cost basis | 224,865 | 157,357 |
Total fair value | 224,864 | 157,373 |
U.S. treasury bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 750 | 748 |
Unrealized Gains | 0 | 9 |
Unrealized Losses | (1) | 0 |
Fair Value | 749 | 757 |
Corporate bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 1,203 | |
Unrealized Gains | 7 | |
Unrealized Losses | 0 | |
Fair Value | 1,210 | |
Cash | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | 197,777 | 130,371 |
Money market funds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | $ 26,338 | $ 25,035 |
Cash, Cash Equivalents and In_4
Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Available-for-sale Investments by Balance Sheet Classification (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and Equivalents | $ 224,115 | $ 155,406 |
Short-Term Investments | 749 | 1,967 |
U.S. treasury bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Short-Term Investments | 749 | 757 |
Corporate bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Short-Term Investments | 0 | 1,210 |
Cash | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and Equivalents | 197,777 | 130,371 |
Money market funds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and Equivalents | $ 26,338 | $ 25,035 |
Cash, Cash Equivalents and In_5
Cash, Cash Equivalents and Investments - Narrative (Details) - USD ($) $ in Millions | Aug. 31, 2022 | Nov. 30, 2021 |
Investments and Cash [Abstract] | ||
Due in one year or less | $ 0.7 | $ 2 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Nov. 30, 2021 | Jul. 09, 2019 | |
Derivative [Line Items] | ||||||
Derivative liabilities, at fair value, net | $ 4,207 | $ 4,207 | $ 372 | |||
Other Noncurrent Liabilities | ||||||
Derivative [Line Items] | ||||||
Derivative liabilities, at fair value, net | (3,300) | (3,300) | ||||
Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 150,000 | |||||
Fixed interest rate | 1.855% | |||||
Derivative liabilities, at fair value, net | (3,346) | $ (3,346) | 3,078 | |||
Interest Rate Swap | London Interbank Offered Rate (LIBOR) | ||||||
Derivative [Line Items] | ||||||
Basis spread on variable rate | 0% | |||||
Forward Contracts | ||||||
Derivative [Line Items] | ||||||
Minimum maturity period, foreign currency derivative | 30 days | |||||
Maximum maturity period, foreign currency derivative | 2 years | |||||
Derivative, gain (loss) on derivative, net | (5,400) | $ (2,300) | $ (9,000) | $ 400 | ||
Forward Contracts | Other Noncurrent Liabilities | ||||||
Derivative [Line Items] | ||||||
Derivative liabilities | 4,300 | 4,300 | 300 | |||
Forward Contracts | Current Liabilities | ||||||
Derivative [Line Items] | ||||||
Derivative liabilities | $ 100 | $ 100 | ||||
Forward Contracts | Accrued Liabilities | ||||||
Derivative [Line Items] | ||||||
Derivative liabilities | $ 100 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Derivative [Line Items] | ||
Notional Value | $ 81,707 | $ 79,896 |
Fair Value | (4,207) | (372) |
Interest rate swap contracts designated as cash flow hedges | ||
Derivative [Line Items] | ||
Notional Value | 123,750 | 133,125 |
Fair Value | 3,346 | (3,078) |
Forward contracts to sell U.S. dollars | ||
Derivative [Line Items] | ||
Notional Value | 81,089 | 79,777 |
Fair Value | (4,211) | (371) |
Forward contracts to purchase U.S. dollars | ||
Derivative [Line Items] | ||
Notional Value | 618 | 119 |
Fair Value | $ 4 | $ (1) |
Fair Value Measurements - Hiera
Fair Value Measurements - Hierarchy of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | $ 26,338 | $ 25,035 |
Money market funds | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 26,338 | 25,035 |
Money market funds | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
U.S. treasury bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 749 | 757 |
U.S. treasury bonds | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
U.S. treasury bonds | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 749 | 757 |
U.S. treasury bonds | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 1,210 | |
Corporate bonds | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | |
Corporate bonds | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 1,210 | |
Corporate bonds | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | |
Interest rate swap | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 3,346 | |
Liabilities | (3,078) | |
Interest rate swap | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | |
Liabilities | 0 | |
Interest rate swap | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 3,346 | |
Liabilities | (3,078) | |
Interest rate swap | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | |
Liabilities | 0 | |
Foreign exchange derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | (4,207) | (372) |
Foreign exchange derivatives | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | 0 | 0 |
Foreign exchange derivatives | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | (4,207) | (372) |
Foreign exchange derivatives | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | Aug. 31, 2022 USD ($) |
Convertible Debt | |
Debt Instrument [Line Items] | |
Fair value notes | $ 364.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Inventory [Line Items] | ||
Finished goods | $ 1,773 | $ 1,631 |
Purchased parts and fabricated assemblies | 2,867 | 1,920 |
Total | 4,640 | 3,551 |
Other Current Assets | ||
Inventory [Line Items] | ||
Total | $ 4,600 | $ 3,600 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule Of Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 558,619 | $ 558,619 |
Accumulated Amortization | (325,183) | (271,434) |
Net Book Value | 233,436 | 287,185 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 212,700 | 212,700 |
Accumulated Amortization | (145,389) | (128,797) |
Net Book Value | 67,311 | 83,903 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 306,308 | 306,308 |
Accumulated Amortization | (152,864) | (119,357) |
Net Book Value | 153,444 | 186,951 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37,611 | 37,611 |
Accumulated Amortization | (24,930) | (21,556) |
Net Book Value | 12,681 | 16,055 |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,000 | 2,000 |
Accumulated Amortization | (2,000) | (1,724) |
Net Book Value | $ 0 | $ 276 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of acquired intangibles and other | $ 17.3 | $ 11.6 | $ 51.9 | $ 33.6 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule Of Future Amortization Expense (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 17,177 | |
2023 | 68,895 | |
2024 | 56,079 | |
2025 | 45,569 | |
2026 | 35,968 | |
Thereafter | 9,748 | |
Net Book Value | $ 233,436 | $ 287,185 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Aug. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Balance, November 30, 2021 | $ 671,152 |
Measurement period adjustments | 1,752 |
Translation adjustments | (3) |
Balance, August 31, 2022 | $ 672,901 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Nov. 01, 2021 | Oct. 05, 2020 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Business Acquisition [Line Items] | ||||||
Acquisition-related expenses | $ 168 | $ 1,481 | $ 3,816 | $ 2,721 | ||
Federal statutory income tax rate, percent | 24.50% | |||||
Credit Agreement | Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from lines of credit | $ 98,500 | |||||
Kemp Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments in business acquisition | $ 258,000 | |||||
Intangible assets | 122,100 | $ 122,100 | ||||
Goodwill, expected tax deductible amount | 181,300 | |||||
Acquisition-related expenses | 100 | 900 | ||||
Kemp Acquisition | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 75,500 | 75,500 | 75,500 | |||
Kemp Acquisition | Purchased technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 39,400 | 39,400 | 39,400 | |||
Kemp Acquisition | Trade name | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 7,200 | 7,200 | 7,200 | |||
Chef Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments in business acquisition | 220,000 | |||||
Goodwill, expected tax deductible amount | 59,600 | |||||
Acquisition-related expenses | 100 | 200 | ||||
Chef Acquisition | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 97,300 | 97,300 | 97,300 | |||
Chef Acquisition | Purchased technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 38,300 | 38,300 | 38,300 | |||
Chef Acquisition | Trade name | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 5,700 | $ 5,700 | $ 5,700 |
Business Combinations - Schedul
Business Combinations - Schedule of Net Assets Acquired (Details) - USD ($) $ in Thousands | 9 Months Ended | 10 Months Ended | 23 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2022 | Aug. 31, 2022 | Nov. 30, 2021 | Nov. 01, 2021 | Oct. 05, 2020 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 672,901 | $ 672,901 | $ 672,901 | $ 671,152 | ||
Measurement Period Adjustments | ||||||
Goodwill | 1,752 | |||||
Kemp Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Net working capital | 26,303 | 26,303 | 26,303 | $ 27,075 | ||
Property, plant and equipment | 795 | 795 | 795 | 803 | ||
Intangible assets | 122,100 | 122,100 | 122,100 | |||
Other assets | 197 | 197 | 197 | 170 | ||
Other noncurrent liabilities | (1,737) | (1,737) | (1,737) | (604) | ||
Deferred taxes | (23,187) | (23,187) | (23,187) | (23,187) | ||
Deferred revenue | (29,997) | (29,997) | (29,997) | (29,997) | ||
Goodwill | 181,273 | 181,273 | 181,273 | 179,521 | ||
Net assets acquired | 275,747 | 275,747 | 275,747 | 275,881 | ||
Measurement Period Adjustments | ||||||
Net working capital | (772) | |||||
Property, plant and equipment | (8) | |||||
Other assets | 27 | |||||
Other noncurrent liabilities | (1,133) | |||||
Goodwill | 1,752 | |||||
Net assets acquired | (134) | |||||
Kemp Acquisition | Purchased technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 39,400 | $ 39,400 | 39,400 | 39,400 | ||
Measurement Period Adjustments | ||||||
Finite-lived intangible assets, useful life | 5 years | |||||
Kemp Acquisition | Trade name | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 7,200 | $ 7,200 | 7,200 | 7,200 | ||
Measurement Period Adjustments | ||||||
Finite-lived intangible assets, useful life | 5 years | |||||
Kemp Acquisition | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 75,500 | $ 75,500 | 75,500 | $ 75,500 | ||
Measurement Period Adjustments | ||||||
Finite-lived intangible assets, useful life | 5 years | |||||
Chef Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Net working capital | 52,477 | $ 52,477 | 52,477 | $ 52,330 | ||
Property, plant and equipment | 498 | 498 | 498 | 498 | ||
Other assets | 122 | 122 | 122 | 122 | ||
Other noncurrent liabilities | (841) | (841) | (841) | (841) | ||
Lease liabilities, net | (1,810) | (1,810) | (1,810) | (1,810) | ||
Deferred taxes | (7,691) | (7,691) | (7,691) | (7,817) | ||
Deferred revenue | (12,525) | (12,525) | (12,525) | (12,525) | ||
Goodwill | 59,585 | 59,585 | 59,585 | 59,858 | ||
Net assets acquired | 231,115 | 231,115 | 231,115 | 231,115 | ||
Measurement Period Adjustments | ||||||
Net working capital | 147 | |||||
Deferred taxes | 126 | |||||
Goodwill | (273) | |||||
Net assets acquired | 0 | |||||
Chef Acquisition | Purchased technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 38,300 | 38,300 | $ 38,300 | 38,300 | ||
Measurement Period Adjustments | ||||||
Finite-lived intangible assets, useful life | 5 years | |||||
Chef Acquisition | Trade name | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 5,700 | 5,700 | $ 5,700 | 5,700 | ||
Measurement Period Adjustments | ||||||
Finite-lived intangible assets, useful life | 5 years | |||||
Chef Acquisition | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 97,300 | $ 97,300 | $ 97,300 | $ 97,300 | ||
Measurement Period Adjustments | ||||||
Finite-lived intangible assets, useful life | 7 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Kemp Acquisition - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Aug. 31, 2021 | Aug. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenue | $ 163,735 | $ 438,372 |
Net income | $ 30,420 | $ 59,883 |
Net income per basic share (in dollars per share) | $ 0.70 | $ 1.36 |
Net income per diluted share (in dollars per share) | $ 0.68 | $ 1.34 |
Debt - Future Maturities (Detai
Debt - Future Maturities (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Nov. 30, 2021 |
Debt Instrument [Line Items] | ||
Remainder of 2022 | $ 1,719 | |
2023 | 6,875 | |
2024 | 13,750 | |
2025 | 20,625 | |
2026 | 20,625 | |
2027 | 566,250 | |
Total face value of long-term debt | 629,844 | |
Unamortized discount and issuance costs | (10,723) | |
Less current portion of long-term debt, net | (6,234) | $ (25,767) |
Long-term debt | 612,887 | |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Remainder of 2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 360,000 | |
Total face value of long-term debt | 360,000 | |
Unamortized discount and issuance costs | (7,892) | |
Less current portion of long-term debt, net | 0 | |
Long-term debt | 352,108 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Remainder of 2022 | 1,719 | |
2023 | 6,875 | |
2024 | 13,750 | |
2025 | 20,625 | |
2026 | 20,625 | |
2027 | 206,250 | |
Total face value of long-term debt | 269,844 | |
Unamortized discount and issuance costs | (2,831) | |
Less current portion of long-term debt, net | (6,234) | |
Long-term debt | $ 260,779 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 9 Months Ended | |||
Apr. 08, 2021 USD ($) $ / shares shares | Apr. 30, 2021 USD ($) | Aug. 31, 2022 USD ($) day $ / shares | Aug. 31, 2021 USD ($) | Nov. 30, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||||
Payments of debt issuance costs | $ 9,900,000 | $ 9,900,000 | |||
Number of shares subject to anti-dilution adjustments (in shares) | shares | 6.3 | ||||
Capped call transactions (in dollars per share) | $ / shares | $ 89.88 | ||||
Represents premium price | 100% | ||||
Payments for derivative instrument | $ 43,100,000 | ||||
DTA, derivative instruments | $ 10,600,000 | ||||
Convertible Debt | |||||
Line of Credit Facility [Line Items] | |||||
Debt issuance cost | $ 10,800,000 | ||||
Debt issuance costs, liability component | 8,900,000 | ||||
Debt issuance costs, equity component | $ 1,900,000 | ||||
Convertible Senior Notes | Convertible Debt | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 325,000,000 | ||||
Convertible debt , additional purchase amount available | $ 50,000,000 | ||||
Convertible debt , additional purchase amount, settlement period | 13 days | ||||
Convertible debt, additional purchase amount | $ 35,000,000 | ||||
Proceeds from convertible debt | $ 360,000,000 | ||||
Annual interest rate | 1% | 1% | |||
Payments of debt issuance costs | $ 10,800,000 | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 57.30 | ||||
Repurchase price | 100% | ||||
Common stock exceeds | 130% | ||||
Trading days | day | 20 | ||||
Consecutive trading day | day | 30 | ||||
Conversion ratio | 0.0174525 | ||||
Principal amount redeemable | $ 100,000,000 | ||||
Share price (in dollars per share) | $ / shares | $ 44.94 | ||||
Debt instrument, interest rate, effective percentage | 1.63% | 5.71% |
Debt - Interest Expense Related
Debt - Interest Expense Related To The Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Apr. 30, 2021 | |
Debt Instrument [Line Items] | |||||
Contractual interest expense | $ 900 | $ 900 | $ 2,690 | $ 1,370 | |
Amortization of debt discount | 541 | 3,260 | 1,595 | 4,942 | |
Interest expense, debt | $ 1,441 | $ 4,160 | $ 4,285 | $ 6,312 | |
Convertible Senior Notes | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Annual interest rate | 1% | 1% | 1% |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Jan. 25, 2022 | |
Line of Credit Facility [Line Items] | |||||
Long-term debt, maturity, next 12 months | $ 6,875,000 | $ 6,875,000 | |||
Unamortized discount and issuance costs | 10,723,000 | 10,723,000 | |||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt, maturity, next 12 months | 6,875,000 | 6,875,000 | |||
Unamortized discount and issuance costs | $ 2,831,000 | $ 2,831,000 | |||
Amended Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 3.81% | 3.81% | |||
Principal repayments, option one | $ 1,700,000 | $ 1,700,000 | |||
Principal repayments, option three | 3,400,000 | 3,400,000 | |||
Principal repayments, option four | $ 5,200,000 | $ 5,200,000 | |||
Amended Credit Agreement | Minimum | Eurodollar | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 1% | 1% | |||
Amended Credit Agreement | Minimum | Base Rate | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 0% | 0% | |||
Amended Credit Agreement | Maximum | Eurodollar | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 2% | 2% | |||
Amended Credit Agreement | Maximum | Base Rate | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 1% | 1% | |||
Amended Credit Agreement | Secured Debt | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 275,000,000 | ||||
Amended Credit Agreement | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Fair value of term loan | $ 269,800,000 | $ 269,800,000 | |||
Long-term debt, maturity, next 12 months | 6,900,000 | 6,900,000 | |||
Line of credit facility outstanding amount | 0 | $ 0 | |||
Amended Credit Agreement | Revolving Credit Facility | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 300,000,000 | ||||
Additional borrowing capacity available | $ 260,000,000 | ||||
Debt EBITDA. percentage | 100% | ||||
Debt leverage ratio, net | 3.75 | ||||
Amended Credit Agreement | Revolving Credit Facility | Minimum | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.125% | ||||
Amended Credit Agreement | Revolving Credit Facility | Maximum | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.275% | ||||
Amended Credit Agreement | Bridge Loan | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 25,000,000 | ||||
Amended Credit Agreement | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit outstanding | 2,100,000 | $ 2,100,000 | |||
Amended Credit Agreement | Letter of Credit | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, face amount | $ 25,000,000 | ||||
Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Debt issuance cost | 3,200,000 | 3,200,000 | |||
Unamortized discount and issuance costs | 1,100,000 | 1,100,000 | |||
Amortization of debt issuance costs | $ 200,000 | $ 100,000 | $ 500,000 | $ 400,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Aug. 31, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of contract (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of contract (in years) | 8 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Nov. 30, 2021 | |
Leases [Abstract] | |||||
Lease costs under long-term operating leases | $ 1,760 | $ 1,991 | $ 5,344 | $ 6,135 | |
Lease costs under short-term operating leases | 19 | 3 | 50 | 22 | |
Variable lease cost under short-term and long-term operating leases | 143 | 130 | 437 | 280 | |
Operating lease right-of-use asset impairment | 0 | 36 | |||
Total operating lease cost | 1,922 | $ 2,124 | $ 5,831 | 6,473 | |
Cash paid for leases | 6,481 | 6,440 | |||
Right-of-use assets recognized for new leases and amendments (non-cash) | $ 343 | $ 3,222 | |||
Weighted average remaining lease term in years | 3 years 6 months 14 days | 3 years 6 months 14 days | 4 years 1 month 24 days | ||
Weighted average discount rate | 2.70% | 2.70% | 2.60% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments After the Adoption of ASC 842 (Details) $ in Thousands | Aug. 31, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 2,100 |
2023 | 7,823 |
2024 | 7,444 |
2025 | 4,867 |
2026 | 1,781 |
Thereafter | 1,300 |
Total lease payments | 25,315 |
Less imputed interest | (1,210) |
Present value of lease liabilities | $ 24,105 |
Common Stock Repurchases (Detai
Common Stock Repurchases (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Jan. 31, 2020 | Nov. 30, 2019 | |
Equity [Abstract] | ||||||
Stock repurchase authorization | $ 250,000,000 | $ 75,000,000 | ||||
Common stock repurchased and retired (in shares) | 0.5 | 0 | 1.7 | 0.8 | ||
Common stock repurchased and retired | $ 24,051,000 | $ 75,524,000 | $ 35,000,000 | |||
Remaining authorized repurchase amount | $ 79,500,000 | $ 79,500,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - metric | 9 Months Ended | 12 Months Ended | |
Aug. 31, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Long-term Incentive Plan (LTIP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance metrics | 2 | 2 | 2 |
Stock-based compensation award service period (in years) | 3 years | 3 years | 3 years |
Long-term Incentive Plan (LTIP) | 2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares based on market condition of total shareholder return | 50% | ||
Cumulative performance condition | 3 years | ||
Percentage of shares based on cumulative performance condition | 50% | ||
Long-term Incentive Plan (LTIP) | 2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares based on market condition of total shareholder return | 25% | ||
Cumulative performance condition | 3 years | ||
Percentage of shares based on cumulative performance condition | 75% | ||
Market condition period | 3 years | ||
Long-term Incentive Plan (LTIP) | 2022 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares based on market condition of total shareholder return | 25% | ||
Cumulative performance condition | 3 years | ||
Percentage of shares based on cumulative performance condition | 75% | ||
Market condition period | 3 years | ||
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award service period (in years) | 4 years | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award service period (in years) | 3 years |
Stock-Based Compensation - Clas
Stock-Based Compensation - Classification of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 8,639 | $ 6,839 | $ 26,110 | $ 21,985 |
Cost of maintenance and services | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 527 | 374 | 1,410 | 1,234 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 1,331 | 1,424 | 3,423 | 4,679 |
Product development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,586 | 1,848 | 7,548 | 6,179 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 4,195 | $ 3,193 | $ 13,729 | $ 9,893 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Aug. 31, 2022 | Nov. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 412,489 | $ 346,013 |
Other comprehensive (loss) income before reclassifications, net of tax | (6,086) | |
Ending balance | 366,973 | 412,489 |
Other comprehensive income (loss), tax | 900 | 700 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (32,443) | (32,778) |
Ending balance | (38,529) | (32,443) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (30,055) | |
Other comprehensive (loss) income before reclassifications, net of tax | (10,955) | |
Ending balance | (41,010) | (30,055) |
Unrealized Losses on Investments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (49) | |
Other comprehensive (loss) income before reclassifications, net of tax | (13) | |
Ending balance | (62) | (49) |
Unrealized (Losses) Gains on Hedging Activity | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (2,339) | |
Other comprehensive (loss) income before reclassifications, net of tax | 4,882 | |
Ending balance | $ 2,543 | $ (2,339) |
Revenue Recognition - Timing of
Revenue Recognition - Timing of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 151,217 | $ 147,417 | $ 444,886 | $ 391,185 |
Software licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 47,618 | 51,930 | 135,182 | 115,354 |
Software licenses | Performance Obligations Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 47,618 | 51,930 | 135,182 | 115,354 |
Maintenance | Performance Obligations Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 91,043 | 82,875 | 272,337 | 239,921 |
Services | Performance Obligations Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 12,556 | $ 12,612 | $ 37,367 | $ 35,910 |
Revenue Recognition - Geographi
Revenue Recognition - Geographic Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 151,217 | $ 147,417 | $ 444,886 | $ 391,185 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 84,826 | 93,880 | 248,313 | 236,479 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 52,670 | 40,999 | 156,006 | 122,560 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,577 | 5,298 | 13,138 | 12,544 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 9,144 | $ 7,240 | $ 27,429 | $ 19,602 |
Revenue Recognition - Unbilled
Revenue Recognition - Unbilled Receivables and Contract Assets (Details) $ in Thousands | Aug. 31, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
2023 | $ 4,246 |
2024 | 11,390 |
2025 | 7,137 |
2026 | 3,199 |
Total | $ 25,972 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Aug. 31, 2022 | Nov. 30, 2021 |
Disaggregation of Revenue [Line Items] | ||
Contract asset | $ 2.4 | $ 5 |
Deferred contract costs | $ 8.2 | $ 7.9 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization period | 3 years | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization period | 5 years |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue (Details) $ in Thousands | 9 Months Ended |
Aug. 31, 2022 USD ($) | |
Contract With Customer, Liability [Roll Forward] | |
Beginning balance | $ 252,380 |
Billings and other | 443,627 |
Revenue recognized | (444,886) |
Ending balance | $ 251,121 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Aug. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 256 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligation, percentage | 78% |
Restructuring Charges - Summary
Restructuring Charges - Summary of Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | $ 6,372 | ||||
Costs incurred | $ 130 | $ 40 | 784 | $ 1,133 | |
Cash disbursements | (3,019) | ||||
Translation adjustments and other | (1) | ||||
Ending Balance | $ 4,136 | 4,136 | 4,136 | ||
2021 Restructuring Activities | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 1,882 | ||||
Costs incurred | 100 | 100 | 465 | ||
Cash disbursements | (2,240) | ||||
Translation adjustments and other | (1) | ||||
Ending Balance | 106 | 106 | 106 | ||
2020 Restructuring Activities | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 4,490 | ||||
Costs incurred | 4,000 | 200 | 319 | ||
Cash disbursements | (779) | ||||
Ending Balance | 4,030 | 4,030 | 4,030 | ||
Excess Facilities and Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 4,483 | ||||
Costs incurred | 319 | ||||
Cash disbursements | (772) | ||||
Translation adjustments and other | 0 | ||||
Ending Balance | 4,030 | 4,030 | 4,030 | ||
Excess Facilities and Other Costs | 2021 Restructuring Activities | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Costs incurred | 0 | ||||
Cash disbursements | 0 | ||||
Translation adjustments and other | 0 | ||||
Ending Balance | 0 | 0 | 0 | ||
Excess Facilities and Other Costs | 2020 Restructuring Activities | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 4,483 | ||||
Costs incurred | 319 | ||||
Cash disbursements | (772) | ||||
Ending Balance | 4,030 | 4,030 | 4,030 | ||
Employee Severance and Related Benefits | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 1,889 | ||||
Costs incurred | 465 | ||||
Cash disbursements | (2,247) | ||||
Translation adjustments and other | (1) | ||||
Ending Balance | 106 | 106 | 106 | ||
Employee Severance and Related Benefits | 2021 Restructuring Activities | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 1,882 | ||||
Costs incurred | 465 | ||||
Cash disbursements | (2,240) | ||||
Translation adjustments and other | (1) | ||||
Ending Balance | 106 | 106 | 106 | ||
Employee Severance and Related Benefits | 2020 Restructuring Activities | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 7 | ||||
Costs incurred | 0 | ||||
Cash disbursements | (7) | ||||
Ending Balance | $ 0 | $ 0 | $ 0 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 130 | $ 40 | $ 784 | $ 1,133 | |
2021 Restructuring Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 100 | 100 | 465 | ||
2020 Restructuring Activities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 4,000 | $ 200 | $ 319 | ||
2020 Restructuring Activities | Operating Lease, Liability, Current | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 1,000 | ||||
2020 Restructuring Activities | Operating Lease, Liability, Noncurrent | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | $ 3,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21% | 22% |
Earnings per share - Calculatio
Earnings per share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 21,797 | $ 30,976 | $ 71,361 | $ 63,494 |
Weighted average shares outstanding (in shares) | 43,211 | 43,762 | 43,589 | 43,896 |
Basic earnings per common share (in dollars per share) | $ 0.50 | $ 0.71 | $ 1.64 | $ 1.45 |
Diluted earnings per common share: | ||||
Net income | $ 21,797 | $ 30,976 | $ 71,361 | $ 63,494 |
Effect of dilution from common stock equivalents (in shares) | 724 | 740 | 710 | 646 |
Diluted weighted average shares outstanding (in shares) | 43,935 | 44,502 | 44,299 | 44,542 |
Diluted earnings per share (in dollars shares) | $ 0.50 | $ 0.70 | $ 1.61 | $ 1.43 |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Number of shares excluded from the calculation of diluted earnings per share (in shares) | 1,777 | 1,250 | 1,739 | 1,241 |
Segment Information (Details)
Segment Information (Details) - segment | 3 Months Ended | 9 Months Ended |
May 31, 2021 | Aug. 31, 2022 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 1 | 1 |