Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 02, 2018 | Mar. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MODN | ||
Entity Registrant Name | MODEL N, INC. | ||
Entity Central Index Key | 1,118,417 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 31,447,507 | ||
Entity Public Float | $ 471 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 56,704 | $ 57,558 |
Accounts receivable, net of allowance for doubtful accounts of $172 and $85 at September 30, 2018 and 2017 | 28,273 | 24,784 |
Prepaid expenses | 3,631 | 3,733 |
Other current assets | 455 | 1,013 |
Total current assets | 89,063 | 87,088 |
Property and equipment, net | 2,146 | 4,611 |
Goodwill | 39,283 | 39,283 |
Intangible assets, net | 34,597 | 40,156 |
Other assets | 1,064 | 798 |
Total assets | 166,153 | 171,936 |
Current liabilities: | ||
Accounts payable | 1,664 | 3,002 |
Accrued employee compensation | 14,211 | 14,996 |
Accrued liabilities | 3,182 | 4,979 |
Deferred revenue, current portion | 52,176 | 49,186 |
Long term debt, current portion | 1,375 | 4,753 |
Total current liabilities | 72,608 | 76,916 |
Long-term debt | 52,329 | 52,452 |
Other long-term liabilities | 1,182 | 1,307 |
Total liabilities | 126,119 | 130,675 |
Commitments and contingencies (Note 8) | ||
Convertible preferred stock: | ||
Convertible preferred stock, $0.0005 par value; no shares authorized, issued and outstanding at September 30, 2018 and 2017, respectively | 0 | 0 |
Stockholders' equity: | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 31,444 and 29,323 shares issued and outstanding at September 30, 2018 and September 30, 2017, respectively | 5 | 4 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 244,814 | 217,052 |
Accumulated other comprehensive loss | (1,285) | (502) |
Accumulated deficit | (203,500) | (175,293) |
Total stockholders' equity | 40,034 | 41,261 |
Total liabilities and stockholders' equity | $ 166,153 | $ 171,936 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 172 | $ 85 |
Convertible preferred stock, par value (in dollars per share) | $ 0.0005 | $ 0.0005 |
Convertible preferred stock, shares authorized (in shares) | 0 | 0 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Common Stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common Stock, shares issued (in shares) | 31,444,000 | 29,323,000 |
Common Stock, shares outstanding (in shares) | 31,444,000 | 29,323,000 |
Preferred Stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred Stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | |||
Total revenues | $ 154,632 | $ 131,169 | $ 106,971 |
Cost of revenues: | |||
Total cost of revenues | 65,334 | 61,096 | 53,693 |
Gross profit | 89,298 | 70,073 | 53,278 |
Operating expenses: | |||
Research and development | 32,416 | 31,064 | 23,706 |
Sales and marketing | 35,482 | 41,339 | 32,261 |
General and administrative | 42,178 | 36,281 | 30,051 |
Total operating expenses | 110,076 | 108,684 | 86,018 |
Loss from operations | (20,778) | (38,611) | (32,740) |
Interest expense (income), net | 8,178 | 4,159 | (50) |
Other expenses (income), net | (722) | 62 | 86 |
Loss before income taxes | (28,234) | (42,832) | (32,776) |
(Benefit) provision for income taxes | (27) | (3,285) | 335 |
Net loss | $ (28,207) | $ (39,547) | $ (33,111) |
Net loss per share attributable to common stockholders: | |||
Basic and diluted (in dollars per share) | $ (0.93) | $ (1.38) | $ (1.21) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | |||
Basic and diluted (in shares) | 30,370 | 28,649 | 27,379 |
Software As A Service And Maintenance [Member] | |||
Revenues: | |||
Total revenues | $ 135,927 | $ 108,055 | $ 86,392 |
Cost of revenues: | |||
Total cost of revenues | 53,903 | 46,872 | 40,717 |
License And Implementation [Member] | |||
Revenues: | |||
Total revenues | 18,705 | 23,114 | 20,579 |
Cost of revenues: | |||
Total cost of revenues | $ 11,431 | $ 14,224 | $ 12,976 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (28,207) | $ (39,547) | $ (33,111) |
Other comprehensive income (loss), net: | |||
Change in foreign currency translation adjustment | (783) | 60 | (96) |
Total comprehensive loss | $ (28,990) | $ (39,487) | $ (33,207) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance, shares at Sep. 30, 2015 | 26,666 | ||||
Beginning balance at Sep. 30, 2015 | $ 83,062 | $ 4 | $ 186,159 | $ (466) | $ (102,635) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 233 | 233 | |||
Issuance of common stock upon exercise of stock options | $ 923 | 923 | |||
Issuance of common stock upon release of restricted stock units (in shares) | 719 | ||||
Issuance of common stock upon release of restricted stock units | 0 | ||||
Issuance of common stock under stock purchase plans (in shares) | 273 | ||||
Issuance of common stock under stock purchase plans | 2,356 | 2,356 | |||
Stock-based compensation | 13,068 | 13,068 | |||
Other comprehensive income (loss) | (96) | (96) | |||
Net loss | (33,111) | (33,111) | |||
Ending balance, shares at Sep. 30, 2016 | 27,891 | ||||
Ending balance at Sep. 30, 2016 | $ 66,202 | $ 4 | 202,506 | (562) | (135,746) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 329 | 329 | |||
Issuance of common stock upon exercise of stock options | $ 1,339 | 1,339 | |||
Issuance of common stock upon release of restricted stock units (in shares) | 813 | ||||
Issuance of common stock upon release of restricted stock units | 0 | ||||
Issuance of common stock under stock purchase plans (in shares) | 290 | ||||
Issuance of common stock under stock purchase plans | 2,647 | 2,647 | |||
Stock-based compensation | 10,560 | 10,560 | |||
Other comprehensive income (loss) | 60 | 60 | |||
Net loss | (39,547) | (39,547) | |||
Ending balance, shares at Sep. 30, 2017 | 29,323 | ||||
Ending balance at Sep. 30, 2017 | $ 41,261 | $ 4 | 217,052 | (502) | (175,293) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 179 | 180 | |||
Issuance of common stock upon exercise of stock options | $ 1,546 | 1,546 | |||
Issuance of common stock upon release of restricted stock units (in shares) | 1,709 | ||||
Issuance of common stock upon release of restricted stock units | 0 | $ 1 | (1) | ||
Issuance of common stock under stock purchase plans (in shares) | 232 | ||||
Issuance of common stock under stock purchase plans | 2,893 | 2,893 | |||
Stock-based compensation | 23,324 | 23,324 | |||
Other comprehensive income (loss) | (783) | (783) | |||
Net loss | (28,207) | (28,207) | |||
Ending balance, shares at Sep. 30, 2018 | 31,444 | ||||
Ending balance at Sep. 30, 2018 | $ 40,034 | $ 5 | $ 244,814 | $ (1,285) | $ (203,500) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (28,207) | $ (39,547) | $ (33,111) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization | 8,299 | 8,185 | 5,929 |
Stock-based compensation | 23,324 | 10,560 | 13,068 |
Amortization of debt discount and issuance costs | 800 | 683 | 0 |
Deferred income taxes | (392) | (3,952) | 172 |
Other non-cash charges | 137 | 216 | (94) |
Loss on extinguishment | 3,142 | 0 | 0 |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | (3,555) | 1,420 | (2,850) |
Prepaid expenses and other assets | (960) | 2,117 | (1,458) |
Deferred cost of implementation services | 486 | 1,502 | (996) |
Accounts payable | (1,434) | (1,558) | 1,494 |
Accrued employee compensation | (687) | 2,626 | (677) |
Other accrued and long-term liabilities | (1,622) | 13 | 253 |
Deferred revenue | 3,192 | 5,770 | 5,946 |
Net cash provided by (used in) operating activities | 2,523 | (11,965) | (12,324) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (252) | (359) | (2,102) |
Acquisition of business, net of cash acquired | 0 | (47,773) | (12,615) |
Capitalization of software development costs | 0 | (369) | (1,072) |
Net cash used in investing activities | (252) | (48,501) | (15,789) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options and issuance of employee stock purchase plan | 4,439 | 3,986 | 3,279 |
Proceeds from term loan | 49,588 | 48,686 | 0 |
Debt issuance costs | (280) | (806) | 0 |
Principal payment on loan | (55,250) | 0 | 0 |
Early payment penalty | (1,500) | 0 | 0 |
Net cash (used in) provided by financing activities | (3,003) | 51,866 | 3,279 |
Effect of exchange rate changes on cash and cash equivalents | (122) | 9 | (36) |
Net decrease in cash and cash equivalents | (854) | (8,591) | (24,870) |
Cash and cash equivalents | |||
Beginning of period | 57,558 | 66,149 | 91,019 |
End of period | 56,704 | 57,558 | 66,149 |
Supplemental Disclosure of Cash Flow Data: | |||
Cash paid for income taxes | 622 | 677 | 233 |
Cash paid for interest | 4,181 | 3,462 | 0 |
Noncash Investing and Financing Activities: | |||
Promissory notes issued for acquisition | $ 0 | $ 8,643 | $ 0 |
The Company
The Company | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Model N, Inc. (Company) was incorporated in Delaware on December 14, 1999 . The Company is a provider of cloud revenue management solutions for the life sciences and technology industries. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process, which enables them to manage the strategy and execution of pricing, contracting, incentives and rebates. The Company’s corporate headquarters are located in San Mateo, California, with additional offices in the United States, India and Switzerland. Fiscal Year The Company’s fiscal year ends on September 30. References to fiscal year 2018, for example, refer to the fiscal year ended September 30, 2018 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Estimates | Summary of Significant Accounting Policies and Estimates Basis for Presentation The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. Revenue Recognition Revenues are comprised of Software as a Service (“SaaS”) and maintenance revenues and license and implementation revenues. SaaS and Maintenance SaaS and maintenance revenues primarily include subscription and the related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on-premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to managed support services, training and customer-reimbursed expenses. The Company has determined that its subscriptions have standalone value without the implementation services and allocates revenue to each deliverable in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE are available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company established the BESP for each element by considering company-specific factors such as existing pricing and discounting. The total arrangement fee for a multiple element arrangement is allocated based on the relative selling price method, taking into consideration contingent revenue restraints. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. Prior to fiscal year 2016, for SaaS arrangements related to Revenue Cloud for Life Science and High Tech companies the Company treated the entire arrangement consideration, including subscription fees and related implementation services fees, as a single unit of accounting and recognized the revenues ratably beginning the day the customer was provided access to the subscription service through the end of contractual period. During fiscal year 2016, the Company concluded that the SaaS deliverable has standalone value to the customer without the implementation services, primarily due to the number of third-party consulting companies that have the know-how to be able to independently perform the implementation services. Revenue related to up-front fees are deferred and recognized ratably over the estimated period that the customer benefits from the related service. Maintenance and support revenue include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Managed support services revenue includes supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenue and managed support services revenue are recognized ratably over the period in which the services are provided. The revenue from training and customer-reimbursed expenses is recognized as the Company delivers these services. Arrangements that include term-based licenses for current products with the right to use unspecified future versions of the software and maintenance and support during the coverage period, are also accounted for as subscriptions, with revenue recognized ratably over the coverage period. License and Implementation License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and the related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ use of the on-premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on-premise solutions and the related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured as the hours expended on the implementation during the reporting period as a percentage of the total estimated hours needed to complete the implementation. Revenue Recognition The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection of the fees is probable or reasonably estimable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. The Company does not offer any contractual rights of return or concessions. The Company’s implementation projects generally have a term ranging from a few months to twelve months and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. Costs of Revenues Cost of SaaS and maintenance revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation, royalties, facility expense, amortization, depreciation related to server equipment and capitalized software, reimbursable expenses, third-party contractors and cloud hosting costs. Cost of license and implementation revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation, third-party contractor costs and other related expenses. Deferred cost of implementation services consists of costs related to implementation services that were provided to the customer but the revenues for the services have not yet been recognized, provided however that the customer is contractually required to pay for the services. These costs primarily consist of personnel costs. As of September 30, 2018 and 2017 , the deferred cost of implementation services totaled $0.1 million and $0.6 million , respectively. Warranty The Company provides limited warranties on all sales and provides for the estimated cost of warranties at the date of sale. The estimated cost of warranties has not been material to date. Foreign Currency Translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity in the accompanying consolidated statements of stockholders’ equity. Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of money market funds, and are maintained with financial institutions with high credit ratings. Concentration of Credit Risk and Significant Customers The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2018 and 2017 and of the Company’s total revenues for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively: As of September 30, Accounts Receivable 2018 2017 Company A 10% N/A Fiscal Years Ended September 30, Revenue 2018 2017 2016 Company B 15% 11% N/A Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of this allowance for doubtful accounts by considering historical experience, the age of the accounts receivable balances, the credit quality of the customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. Revenue that has been recognized, but for which the Company has not invoiced the customer, amounting to $3.6 million and $4.6 million is recorded as unbilled receivables and is included in accounts receivables in the consolidated balance sheets as of September 30, 2018 and 2017 , respectively. Invoices that have been issued before revenue has been recognized are recorded as deferred revenue in the consolidated balance sheets. Property and Equipment, Net Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. Long-lived Assets The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did no t recognize any impairment charges on its long-lived assets during any periods presented. Goodwill and Intangible Assets The Company records goodwill when consideration paid in an acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. We conducted our annual impairment test of goodwill as of September 30, 2018 and 2017 . We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment under Accounting Standards Update (ASU) No. 2011-08, Goodwill and Other (Topic 350): Testing Goodwill for Impairment, issued by the Financial Accounting Standards Board (FASB). If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. Intangible assets, consisting of developed technology, backlog, non-competition agreements customer relationships and trade name, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to ten years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements, trade name and customer relationships is included in sales and marketing expense. No goodwill or intangible assets impairment has been identified in any of the years presented. Research and Development and Capitalization of Software Development Costs The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years . Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. The Company capitalized software development costs of zero , $0.4 million and $1.1 million during the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. Fair Value of Financial Instruments The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. The Company’s Level 1 assets consist of cash equivalent. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. Sales Commissions Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. The Company incurred $0.4 million , $0.3 million and $0.3 million in advertising and promotions costs during the fiscal years ended September 30, 2018 , 2017 , and 2016 , respectively. Employee Benefit Plan The Company has a savings plan that qualifies under Section 401(k) of the Internal Revenue Code (IRC). Under these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We contributed approximately $0.6 million , $0.7 million and $0.6 million for the years ended September 30, 2018 , 2017 and 2016 . Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options and restricted stock units (“RSUs”) is measured and recognized based on the fair value of the awards on the grant date. The fair value is recognized as expense, net of estimated forfeitures on a ratable basis, over the requisite service period, which is generally the vesting period of the respective award. The Company uses a Monte Carlo simulation model to determine the fair value of its performance-based restricted stock units (“PB-RSUs”) on the grant date. The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. As the PB-RSUs are only granted to executives and leadership team, the Company has determined no forfeiture rate would be applied to the PB-RSUs. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards and employee stock purchase plan (“ESPP”). The Black-Scholes-Merton valuation model requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Income Taxes The Company accounts for income taxes in accordance with the FASB ASC No. 740— Accounting for Income Taxes (ASC 740). The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, tax benefits and deductions and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Significant changes to these estimates may result in an increase or decrease to our tax provision in the subsequent period when such a change in estimate occurs.The Company regularly assesses the likelihood that its deferred income tax assets will be realized from future taxable income based on the realization criteria set forth in ASC 740. To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred income tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. As of September 30, 2018 and 2017 , the Company had gross deferred income tax assets, related primarily to net operating loss (NOL) carry forwards, deferred revenues, accruals and reserves that are not currently deductible and depreciable and amortizable items of $77.2 million and $92.5 million , respectively, which have been fully offset by a valuation allowance. Utilization of these net loss carry forwards is subject to the limitations of IRC Section 382 (Section 382 Limitations). A Section 382 study was performed when the Company went IPO and subsequent Section 382 analysis have been performed. It is determined that there are no material limitations of IRC Section 382. However, in the future, some portion or all of these carry forwards may not be available to offset any future taxable income. We account for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We classify the liability for unrecognized tax benefits as current to the extent that we anticipate payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Segment The Company has one operating segment with one business activity, developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information as presented on a consolidated basis. Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive (loss) income. Other comprehensive loss includes foreign currency translation adjustments. Recent Accounting Pronouncements Recent Adopted Accounting Guidance In March 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public companies, the guidance is effective for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted for all companies in any interim or annual period. Forfeitures can be estimated, as required today, or recognized when they occur. Estimates of forfeitures will still be required in certain circumstances, such as at the time of modification of an award or issuance of a replacement award in a business combination. The Company adopted this guidance in the first quarter of fiscal year 2018 and has elected to continue to estimate our forfeiture rate. In the year of adoption, the ASU requires that the cumulative effect adjustment be recorded to retained earnings. Due to a full valuation allowance, there is no cumulative effect adjustment to record and the adoption of this guidance had no material impact on the Company's consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which amended the existing accounting standards for income taxes. The amendments require companies to report their deferred tax liabilities and deferred tax assets each as a single non-current item on their classified balance sheets. The Company adopted this guidance. The adoption of this guidance had no material impact on the Company's consolidated financial statements. Recently Enacted Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company does not believe this will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the Step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of the Company’s fair value of with carrying amount and the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal year 2019. Early adoption is permitted. The Company does not believe this will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalent balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. The guidance become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company do not plan to early adopt, and accordingly we will adopt the new standard effective at the beginning of its first quarter of fiscal year 2019. The Company does not believe this will have material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow (Topic 230), amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal year 2019. Early adoption is permitted, including adoption in an interim period. The Company does not believe this will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Revitas Acquisition On January 5, 2017 , the Company completed the acquisition of 100% of the equity interests of Sapphire Stripe Holdings, Inc., the parent company of Revitas, Inc. (“Revitas”). Pursuant to the Agreement and Plan of Merger (“Merger Agreement”), the Company paid approximately $52.8 million in cash and issued to the sellers two $5.0 million promissory notes, one which will mature 18 months after the closing and the other which will mature 36 months after the closing. The Company acquired Revitas to, among other things, expand the Company’s revenue management solutions for customers. The Company incurred acquisition and transaction costs associated with the acquisition of Revitas of approximately $2.2 million for the fiscal year ended September 30, 2017, which were recorded as general and administrative expenses. In connection with Revitas acquisition, the Company funded the cash portion of the purchase price, in part with a five years term loan in the aggregate amount of $50.0 million . See Note 6, “Debt”, for additional information. The final allocation of the purchase price is as follows: Fair Value (in thousands) Cash and cash equivalents $ 5,067 Accounts receivable 6,184 Prepaid expenses 1,067 Other current assets 47 Property, plant and equipment 1,506 Intangible assets 39,100 Goodwill 32,344 Other assets 25 Total assets acquired 85,340 Accounts payable (1,352 ) Accrued employee compensation (3,983 ) Accrued liabilities (1,410 ) Deferred revenue liability (12,856 ) Other liabilities (4,256 ) Total liabilities assumed (23,857 ) Net acquired assets $ 61,483 The following table presents certain information on the acquired identifiable assets: Intangible assets Fair value (in thousands) Estimated useful lives (years) Weighted-average estimated useful lives (years) Developed technology $ 6,770 6 6 Customer relationship $ 32,180 10 10 Trade name $ 150 1 1 The purchase accounting allocation resulted in an ascribed value to the acquired intangible assets of $39.1 million and goodwill of $32.3 million . The key factors attributable to the creation of goodwill by the transaction are synergies in skill-sets, return on future technology and customer development. The Company does not expect the goodwill recognized as a part of the acquisition to be deductible for income tax purposes. See Note 5, “Goodwill” for additional information. Unaudited Pro Forma Combined Consolidated Financial Information The results of operations for Revitas and the estimated fair values of the assets acquired and liabilities assumed have been included in the Company’s consolidated financial statements since the respective dates of acquisition. The unaudited pro forma combined consolidated financial information is presented for illustrative purpose only and is not necessarily indicative of the result of operations that would have actually been reported had the acquisitions occurred on the above dates, nor is it necessarily indicative of the future results of operations of the combined company. The unaudited pro forma combined consolidated financial information reflects certain adjustments, such as amortization, interest expense, deferred tax valuation allowance and transaction related costs. The following unaudited pro forma combined consolidated financial information has been prepared by the Company using the acquisition method of accounting to give effect to the Revitas acquisition as if it had occurred on October 1, 2015. The following table sets forth the unaudited pro forma consolidated combined results of operations: Fiscal Year Ended September 30, 2017 2016 (in thousands, except per share data) Revenue $ 140,227 $ 149,632 Net loss (45,346 ) (38,656 ) Net loss per shares-basic and diluted $ (1.58 ) $ (1.41 ) |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 12 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheet Components | Consolidated Balance Sheet Components Components of property and equipment, and intangible assets consisted of the following: Property and Equipment As of September 30, 2018 2017 (in thousands) Computer software and equipment $ 8,154 $ 10,274 Furniture and fixtures 1,309 1,284 Leasehold improvements 1,251 1,466 Software development costs 9,416 9,416 Total property and equipment 20,130 22,440 Less: Accumulated depreciation and amortization (17,984 ) (17,829 ) Total Property and equipment, net 2,146 4,611 Depreciation expense including depreciation of assets under capital leases totaled $2.7 million , $3.5 million and $4.5 million for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. Intangible Assets As of September 30, 2018 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (6,448 ) $ 5,635 Backlog 5 280 (275 ) 5 Customer relationships 3-10 36,599 (7,642 ) 28,957 Total $ 48,962 $ (14,365 ) $ 34,597 As of September 30, 2017 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (4,545 ) $ 7,538 Backlog 5 280 (215 ) 65 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 36,599 (4,084 ) 32,515 Trade name 1 260 (222 ) 38 Total $ 49,322 $ (9,166 ) $ 40,156 The Company recorded amortization expense related to the acquired intangible assets of $5.6 million , $4.6 million and $1.4 million during the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. Estimated future amortization expense for the intangible assets as of September 30, 2018 is as follows: Fiscal Years Ending September 30, (in thousands) 2019 $ 5,466 2020 4,751 2021 4,687 2022 4,687 2023 and thereafter 15,006 Total future amortization $ 34,597 |
Goodwill
Goodwill | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table presents goodwill activity for the years ended September 30, 2018 and 2017 (in thousands): Balance as at September 30, 2016 $ 6,939 Add: Goodwill from acquisition of business 32,344 Balance as at September 30, 2017 $ 39,283 Add: Goodwill from acquisition of business — Balance as at September 30, 2018 $ 39,283 As a result of the acquisition of Revitas in fiscal year 2017, the Company recognized goodwill of $32.3 million . See Note 3, “Business Combination”, for additional details. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan In connection with the Revitas acquisition, on January 5, 2017 , the Company entered into a Financing Agreement (Financing Agreement) by and among the Company, the Subsidiaries, as guarantors, Crystal Financial SPV, LLC and TC Lending, LLC, pursuant to which the lenders extended a term loan to the Company in an aggregate principle amount of $50.0 million . In May 2018, this term loan was extinguished and repaid in full in part from the proceeds of the refinancing with Wells Fargo Bank, N. A. (Wells Fargo), as discussed below. The term loan made pursuant to the Financing Agreement bore interest at a rate of either (i) the Base Rate (as defined in the Financing Agreement) plus 9.25% or (ii) the LIBOR Rate (as defined in the Financing Agreement) plus 8.25% , as selected by the Company. The term loans would have matured on January 5, 2022 . The Company selected the LIBOR Rate plus 8.25% except for the quarter beginning on April 1, 2018 through the payoff of the loan in May 2018, the Company selected the Base Rate plus 9.25% . The loan required quarterly payments of interest only and quarterly principal payments of 0.625% of the aggregate principal amount of the term loan beginning with the fiscal quarter ending March 31, 2019. The Financing Agreement required the Company and the subsidiaries to maintain certain financial covenants and,,also contains certain non-financial covenants, including restricting our ability to dispose of assets, changing our organizational documents or amending our material agreements in a manner adverse to the lender, changing a method of accounting, merging with or acquiring other entities, incurring other indebtedness and making certain investments. The Company was in compliance with all of the covenants described in the Financing Agreements through the payoff on May 4, 2018, discussed below. The balance of this term loan of $50.0 million was repaid in full in connection with a new facility under Wells Fargo in the third quarter of 2018. The Company recorded in the third quarter of fiscal year 2018, a loss on debt extinguishment of approximately of $3.1 million , of which $1.5 million was a pre-payment penalty and $1.6 million was the remaining non-cash unamortized discount and deferred financing costs write-off. Term Loan - Wells Fargo On May 4, 2018, the Company and certain of its subsidiaries entered into a Credit Agreement (Credit Agreement) by and among the Company, Wells Fargo Bank, National Association, as Administrative Agent, and the lenders party thereto (Lenders), pursuant to which the Lenders extended a term loan to the Company in an aggregate principal amount of $50.0 million and agreed to establish an additional revolving line of credit up to an aggregate principal amount of $5.0 million . In part from the proceeds of this refinancing, the Company repaid in full the existing term loan under the Financing Agreement dated January 5, 2017. The term loan will mature on May 4, 2023 . The Company is required to repay the principal of the term loan in quarterly installments follows: • $250,000 on September 30, 2018 and the last day of each fiscal quarter thereafter up to June 30, 2019; • $625,000 on September 30, 2019 and the last day of each fiscal quarter thereafter up to June 30, 2020; • $937,500 on September 30, 2020 and the last day of each fiscal quarter thereafter up to March 31, 2023; and the remaining principal amount at maturity. The loans will bear interest, at the Company’s option, at (i) the Base Rate (as defined in the Credit Agreement) plus applicable margin or (ii) the LIBOR Rate (as defined in the Credit Agreement) plus applicable margin. LIBOR interest is payable quarterly and margin varies based upon our leverage ratio. See the table below of applicable margin rates: Level Leverage Ratio Calculation Applicable Margin Relative to Base Rate Applicable Margin Relative to LIBOR Rate I <2.0:1.0 2.0% 3.0% II >=2.0:1.0 but less than 3.5:1.0 2.5% 3.5% III >=3.5:1.0 3.5% 4.5% For the period ended as of September 30, 2018, the Company’s interest rate is at the LIBOR Rate plus 4.5% . Certain United States subsidiaries of the Company (Guarantors) and the Company have entered into a guaranty and security agreement pursuant to which the Guarantors have agreed to guarantee the Company’s payment of its obligations under the Credit Agreement, and pursuant to which the Company’s and Guarantors’ obligations under the Credit Agreement and the guaranty and security agreement are secured by substantially all of their assets. The Company may voluntarily prepay the term loan, with any such prepayment applied against the remaining installments of principal of the term loan on a pro rata basis; provided, that at the election of the Company, one such prepayment made during the fiscal quarter ending December 31, 2018 in an amount not to exceed $5.0 million may be applied against the remaining installments of principal in the direct order of maturity. The Company is required to repay the term loan with proceeds from the sale of assets, the receipt of certain insurance proceeds, litigation proceeds or indemnity payments, or the incurrence of debt (in each case subject to certain exceptions). The Credit Agreement requires the Company and its subsidiaries to maintain certain financial covenants, including maintaining consolidated liquidity (cash in the United States plus revolving credit line availability) of at least $15 million , minimum levels of maintenance and subscription fee revenue and, if liquidity is less than $30 million for 90 consecutive days, leverage ratio not greater than 3.50 to 1.00. The Credit Agreement also requires the Company and Guarantors to maintain certain non-financial covenants, including covenants that restrict their ability to dispose of assets, change the Company's organizational documents, merge with or acquire (or make investments in) other entities, or incur other indebtedness or liens. The Credit Agreement also provides for customary events of default, including failure to pay amounts due or to comply with covenants, default on other indebtedness, or a change of control with respect to the Company. The Company was in compliance with the financial covenant requirements as of September 30, 2018. Promissory Notes Also, in connection with the Revitas acquisition, the Company incurred $10.0 million in debt in the form of two promissory notes with the sellers, one which matured on July 5, 2018 and the other which will mature on January 5, 2020 . The Company paid the first promissory note of $5.0 million on July 5, 2018. The remaining promissory notes bears interest at the rate of 3% per annum, and is subject to a right of set-off as partial security for the indemnification obligations of the target’s stockholders under the Merger Agreement. The remaining promissory notes is subordinate to the term loan with Wells Fargo. The fair value of the promissory notes of $8.6 million was determined based on a discounted future cash flow at 9.96% interest rate, which represents an arm’s length interest rate. As of September 30, 2018 , the term loan with Wells Fargo and promissory note consisted of the following: Amount (in thousands) Principal $ 54,750 Unamortized debt discount and issuance costs (1,046 ) Net carrying amount $ 53,704 As of September 30, 2018, the carrying value of the of the debt approximates the fair value basis. The Company classified the debt under Level 2 of the fair value measurement hierarchy as the borrowings are not actively traded. The Company incurred approximately $0.7 million in transaction costs in connection with the term loan with Wells Fargo in the third quarter of fiscal year 2018. These costs are included as part of the Company’s debt. The effective interest rate for the term loan with Wells Fargo is 7.2% and the 36 month promissory note is 9.89% . The future scheduled principal payments for the term loan and promissory note as of September 30, 2018 were as follows (in thousands): Fiscal Year: 2019 $ 1,375 2020 7,813 2021 3,750 2022 3,750 2023 38,062 Total $ 54,750 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The table below sets forth the Company’s cash equivalents as of September 30, 2018 and 2017 , which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. The Company had no liabilities measured at fair value on a recurring basis. Level 1 Level 2 Level 3 Total (in thousands) As of September 30, 2018: Assets: Cash equivalents $ 43,741 $ — $ — $ 43,741 Total $ 43,741 $ — $ — $ 43,741 As of September 30, 2017: Assets: Cash equivalents $ 47,754 $ — $ — $ 47,754 Total $ 47,754 $ — $ — $ 47,754 The Company’s cash equivalents as of September 30, 2018 and 2017 consisted of money market funds with original maturity dates of less than three months from the date of their respective purchase. Cash equivalents are classified as Level 1. The fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of September 30, 2018 and 2017 . The Company’s financial instruments not measured at fair value on a recurring basis include cash, accounts receivable, accounts payable and accrued liabilities, and are reflected in the financial statements at cost and approximates their fair value due to their short-term nature. The term loan with Wells Fargo carrying value is approximately fair value since the term loan bears interest at rates that fluctuate with the changes in the Base Rate or the Libor Rate as selected by the Company. The promissory notes carrying value approximate its fair value as of September 30, 2018 . As of September 30, 2018 and 2017 , amounts of $13.0 million and $9.8 million , respectively, were held in bank deposits. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company leases facilities under noncancelable operating leases. As of September 30, 2018 , future minimum payments under operating leases were as follows: Contractual Payment Obligations Due by Period (in thousands) Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations (1) $ 8,900 $ 3,200 $ 4,600 $ 1,100 $ — (1) Operating lease obligations represent our obligations to make payments under the lease agreements for our facilities leases. Rent expense under noncancelable operating leases for the fiscal years ended September 30, 2018 , 2017 and 2016 was $3.4 million , $3.2 million and $2.7 million , respectively. Indemnification Obligations Each of the Company’s software licenses contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third party. The software license also provides for indemnification by the Company of the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third party rights. The Company has not had to reimburse any of its customers for losses related to indemnification provisions, and there were no material claims against the Company outstanding as of September 30, 2018 and 2017 . For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the software license, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. As permitted under Delaware law, the Company has indemnification arrangements with respect to its officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the Company. Legal Proceedings We are not currently a party to any pending material legal proceedings. From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm and other factors. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2000 Stock Plan The 2000 Stock Plan (2000 Plan) authorized the board of directors to grant incentive share options and non-statutory share options to employees, directors and other eligible participants. Stock purchase rights may also be granted under the 2000 Plan. The exercise price of the stock options shall not be less than the estimated fair value of the underlying shares of the common stock on the grant date. Options generally vest over four years and expire ten years from the date of grant. In connection with the adoption of the 2010 Equity Incentive Plan (2010 Plan) in June 2010, the 2000 Plan was terminated and all shares of common stock previously reserved but unissued were transferred to 2010 Plan. 2010 Equity Incentive Plan On June 15, 2010, the Company’s Board adopted the 2010 Equity Incentive Plan under which employees, directors, and other eligible participants of the Company or any subsidiary of the Company may be granted incentive stock options, nonstatutory stock options and all other types of awards to purchase shares of the Company’s common stock. The total number of shares reserved and available for grant and issuance pursuant to this 2010 Plan consists of (a) any authorized shares not issued or subject to outstanding grants under the 2000 Plan on the adoption date, (b) shares that are subject to issuance upon exercise of options granted under the Plan but cease to exist for any reason other than exercise of such options; and (c) shares that were issued under the Plan which are repurchased by the Company at the original issue price or forfeited. In connection with the adoption of the 2013 Equity Incentive Plan in February 2013, the 2010 Plan was terminated and all shares of common stock previously reserved but unissued were transferred to 2013 Plan. 2013 Equity Incentive Plan The Company’s board of directors (Board) adopted the 2013 Equity Incentive Plan (2013 Plan) in February 2013, and the stockholders approved the 2013 Plan in March 2013. The 2013 Plan became effective on March 18, 2013 and will terminate in February 28, 2023 . The 2013 Plan serves as the successor equity compensation plan to the 2010 Equity Incentive Plan (2010 Plan). The 2013 Plan was approved with a reserve of 8.0 million shares, which consists of 2.5 million shares of the Company’s common stock reserved for future issuance under the 2013 Plan and shares of common stock previously reserved but unissued under the 2010 Plan. Additionally, the 2013 Plan provides for automatic increases in the number of shares available for issuance under it on October 1 of each of the first four calendar years during the term of the 2013 Plan by the lesser of 5% of the number of shares of common stock issued and outstanding on each September 30 immediately prior to the date of increase or the number determined by our board of directors. In fiscal year 2018, 2.0 million additional shares were approved by the Company's stockholders for issuance under the 2013 Plan No further grants will be made under the 2010 Plan, and the balances under the 2010 Plan have been transferred to the 2013 Plan. The 2013 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, performance stock awards, restricted stock units and stock bonuses. Awards generally vest over four years and expire ten years from the date of grant. As of September 30, 2018 , 5.2 million shares were available for future stock awards under the plans and any additional releases resulting from an over-achievement relating to performance-based restricted stock units. Stock Options There were no stock options granted in fiscal years 2018 , 2017 and 2016 , respectively. The expected terms of options granted were calculated using the simplified method, determined as the average of the contractual term and the vesting period. Estimated volatility is derived from the historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the option. The risk-free interest rate is based on the U.S. treasury constant maturities in effect at the time of grant for the expected term of the option. We use historical data to estimate the number of future stock option forfeitures. The following table summarized the stock option activity and related information under all stock option plans: Number of Shares (in thousands) Weighted Average Exercised Price Weighted Average Remaining Contract Term (in years) Aggregate Intrinsic Value (in thousands) Balance at September 30, 2015 1,119 $ 6.29 4.68 $ 4,904 Exercised (233) 3.96 — Forfeited (12) 13.70 — Expired (68) 12.72 — Balance at September 30, 2016 806 6.31 3.56 $ 4,103 Exercised (329) 4.06 — Forfeited — — — Expired (24) 11.69 — Balance at September 30, 2017 453 7.71 3.53 $ 3,281 Exercised (179) 8.61 — Forfeited — — — Expired (47) 4.65 — Balance at September 30, 2018 227 $ 7.64 2.94 $ 1,861 Options exercisable as of September 30, 2018 227 $ 7.64 2.94 $ 1,861 Options vested and expected to vest as of September 30, 2018 227 $ 7.64 2.94 $ 1,861 The intrinsic value of options exercised during 2018 , 2017 and 2016 was $1.5 million , $2.5 million and $1.7 million , respectively. The total estimated fair value of options vested during 2018 , 2017 and 2016 was zero , $22 thousand and $0.4 million respectively. Employee Stock Purchase Plan The 2013 Employee Stock Purchase Plan (ESPP) became effective on March 19, 2013. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value, as defined in the ESPP, subject to any plan limitations. Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. The following table summarizes the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s ESPP plan during the periods presented: Fiscal Years Ended September 30, 2018 2017 2016 Risk-free interest rate 1.73 % 0.75 % 0.38 % Dividend yield — % — % — % Volatility 28 % 29 % 34 % Expected term (in years) 0.50 0.50 0.50 Restricted Stock Units and Performance-based Restricted Stock Units During the years ending September 30, 2018 , 2017 and 2016 , the Compensation Committee of the Board approved grants of performance-based restricted stock units to the Company’s certain senior officers, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 250% of the grant based on the performance of the Company’s TSR relative to the TSR of the Index over a three -year period. No shares will vest and be released in the first year. In any of the two remaining years, no shares will vest and be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the grant will vest and be released if the Company’s TSR is at the 50th percentile relative to the Index; and 200% or 250% of the grant will vest and be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest over a three -year period with 50% vesting on each of the second and the third annual anniversary of the vesting commencing date. In addition, these grants have a “catch-up” provision such that if the Company’s TSR relative to the Index for the three -year period exceeds that of the two -year period, additional shares for the two -year period will vest and be released based on the three -year achievement level. These grants have a ten -year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. As of September 30, 2018 , 0.6 million shares were reserved for any additional release resulting from over-achievement relating to performance-based restricted stock units. The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. The Company used the Monte-Carlo simulation model to calculate the fair value of these awards on the grant date. The Monte-Carlo simulation model takes into account the same input assumptions as the Black-Scholes model; however, it also further incorporates into the fair value determination the possibility that the performance criteria may not be satisfied. The grant date fair values of these awards were determined using the following assumptions: Fiscal Year Ended September 30, 2018 2017 2016 Risk-free interest rate 2.42%-2.57% 1.32%-1.45% 0.86%-1.15% Dividend yield — — — Volatility 39%-40% 38%-40% 45 % The following table summarizes the Company’s restricted stock unit activity (including performance based restricted stock awards) under all equity award plans: Restricted Stock Units Outstanding (in thousands) Weighted Average Grant Date Fair Value Balance at September 30, 2015 2,302 $ 12.32 Granted 2,064 10.61 Released (720 ) 10.50 Forfeited (529 ) 11.24 Balance at September 30, 2016 3,117 $ 11.81 Granted 1,817 11.67 Released (813 ) 10.58 Forfeited (1,204 ) 10.65 Balance at September 30, 2017 2,917 $ 12.55 Granted 1,355 22.92 Released (1,137 ) 13.99 Forfeited (822 ) 18.57 Balance at September 30, 2018 2,313 $ 15.78 On June 7, 2018, the Company issued Mr. Rinat 572,601 common shares, with fair value approximately $10.5 million , in connection with his transition agreement when he resigned as Chief Executive Officer and Chairman of the Board. The related tax withholding portion was later reimbursed by Mr. Rinat to the Company. Mr. Rinat’s 375,234 performance-based restricted stock units, were cancelled due to his departure and the previously recorded expense of approximately $2.0 million was reversed in general administrative expenses. The total fair value of restricted stock and performance based restricted stock awards vested for the years ended September 30, 2018 , 2017 and 2016 was $19.8 million , $8.6 million and $7.6 million , respectively. The following table summarizes certain information of the unvested awards as of September 30, 2018: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 22.5 $ 0.4 Weighted-average period to recognize (in years) 2.2 0.4 (1): Includes restricted stock units and performance-based restricted stock awards. Stock-based Compensation Stock-based compensation recorded in the statements of operations is as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Cost of revenues: SaaS and maintenance $ 1,269 $ 1,007 $ 1,032 License and implementation 1,387 1,015 918 Total stock-based compensation in cost of revenues 2,656 2,022 1,950 Operating expenses: Research and development 2,983 1,744 1,393 Sales and marketing 3,524 2,651 3,307 General and administrative 14,161 4,143 6,418 Total stock-based compensation in operating expenses 20,668 8,538 11,118 Total stock-based compensation $ 23,324 $ 10,560 $ 13,068 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes are as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Domestic $ (31,312 ) $ (43,753 ) $ (34,527 ) Foreign 3,078 921 1,751 Loss before taxes $ (28,234 ) $ (42,832 ) $ (32,776 ) The components of the provision (benefit) for income taxes are as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Current Federal $ (110 ) $ — $ — State 36 37 23 Foreign 439 647 140 365 684 163 Deferred Federal (404 ) (3,436 ) 150 State 12 (533 ) 22 (392 ) (3,969 ) 172 Total provision (benefit) for income taxes $ (27 ) $ (3,285 ) $ 335 Reconciliation of the statutory federal income tax to the Company’s effective tax: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Tax at statutory federal rate $ (6,854 ) $ (14,563 ) $ (11,147 ) State tax, net of federal benefit 36 37 23 Permanent differences 1,006 692 370 Stock based compensation (3,761 ) (596 ) 201 Foreign tax rate differential (308 ) 334 (453 ) Change in valuation allowance (13,785 ) 15,279 12,008 Research and development tax credits (725 ) (656 ) (834 ) Change in deferred tax liabilities (392 ) (3,390 ) 173 Change in federal statutory tax rate 24,828 — — Other (72 ) (422 ) (6 ) Total provision (benefit) for income taxes $ (27 ) $ (3,285 ) $ 335 On December 22, 2017, tax reform legislation known as the Tax Cuts and Jobs Act (the Tax Legislation) was enacted in the United States (U.S.). The Tax Legislation significantly revises the U.S. corporate income tax by, among other things, lowering the corporate income tax rate to 21%, implementing a modified territorial tax system and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Toll Charge), and limiting the deductibility of certain expenses, such as interest expense. As a fiscal-year taxpayer, certain provisions of the Tax Legislation impact the Company in fiscal year 2018, including the change in the corporate income tax rate and the Toll Charge, while other provisions will be effective starting at the beginning of fiscal year 2019. The U.S. federal income tax rate reduction was effective as of January 1, 2018. Accordingly, the Company’s federal statutory income tax rate for fiscal year 2018 reflects a blended rate of approximately 24.3% . On December 22, 2017, the SEC issued Staff Accounting Bulletin No.118 (SAB 118), which addresses how a company recognizes provisional estimates when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the Tax Legislation. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The final impact of the Tax Legislation may differ from the above provisional estimates due to changes in interpretations of the Tax Legislation, any legislative action to address questions that arise because of the Tax Legislation, by changes in accounting standard for income taxes and related interpretations in response to the Tax Legislation, and any updates or changes to estimates used in the provisional amounts. The Company's provision for income taxes does not include provisions for foreign withholding taxes associated with the repatriation of undistributed earnings of certain foreign subsidiaries that we intend to reinvest indefinitely in our foreign subsidiaries. The Company is subject to income taxes in U.S. federal and various state, local and foreign jurisdictions. The tax years ended from September 2000 to September 2018 remain open to examination due to the carryover of unused net operating losses or tax credits. Deferred tax assets and liabilities consisted of the following: As of September 30, 2018 2017 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,087 $ 842 Accruals and other 3,098 5,541 Deferred revenue 152 3,288 NOL carry-forward 58,245 68,190 Stock compensation 2,701 4,840 Research and development tax credits 11,895 9,792 Total deferred tax assets 77,178 92,493 Valuation allowance (67,879 ) (78,003 ) Net deferred tax assets 9,299 14,490 Deferred tax liabilities: Intangibles (9,398 ) (14,983 ) Net deferred tax liabilities $ (99 ) $ (493 ) A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a full valuation allowance to offset net deferred tax assets at September 30, 2018 , 2017 , and 2016 due to the uncertainty of realizing future tax benefits from its net operating loss carry-forwards and other deferred tax assets. The net decrease in the total valuation allowance for the year ended September 30, 2018 was approximately $10.1 million . Due to the reduction in the U.S. federal income tax rate, deferred tax balances decreased by approximately $24.9 million . At September 30, 2018 , the Company has federal and state net operating loss carry-forwards of approximately $232.0 million and $606.2 million , respectively. The federal and state net operating losses will begin expiring in 2021 and 2019 , respectively. At September 30, 2018 , the Company had federal and state research and development credit carry forwards of approximately $6.1 million and $7.4 million , respectively. The federal research and development credit carry-forwards will begin expiring in 2020 . The California and Massachusetts tax credit can be carried forward indefinitely . The Company adopted ASU 2015-17 in the beginning of fiscal year 2018. The adoption of ASU 2015-17 did not have a material impact on the Company's consolidated financial statements. The Company has adopted ASU 2016-09 in fiscal year 2018 and has elected to continue to estimate its forfeiture rate. The ASU 2016-09 is considered effective from the beginning of the year of adoption. In the year of adoption, the ASU requires that the cumulative effect adjustment be recorded to retained earnings. Due to full valuation allowance, there is no cumulative effect adjustment to record and the adoption of this ASU has no material impact in the Company’s consolidated financial statements. As of September 30, 2018 , the Company had unrecognized tax benefits of approximately $3.5 million . It is unlikely that the amount of liability for unrecognized tax benefits will significantly change over the next twelve months. The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of September 30, 2018 , there was a liability of $0.1 million related to uncertain tax positions recorded on the financial statements. Internal Revenue Code section 382 places a limitation (Section 382 Limitation) on the amount of taxable income can be offset by net operating (NOL) carry-forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California has similar rules. Generally, after a control change, a loss corporation cannot deduct NOL carry-forwards in excess of the Section 382 limitation. An IRC Section 382 analysis has been performed as of September 30, 2018 and determined there would be no effect on the NOL deferred tax asset if ownership changes occurred. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,143 $ 3,310 $ 3,119 Gross decrease based on tax positions during the prior period (143 ) (584 ) (147 ) Gross increase based on tax positions during the prior period 94 — — Gross increase based on tax positions during the current period 375 417 338 Unrecognized tax benefits at the end of the period $ 3,469 $ 3,143 $ 3,310 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The Company’s basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, which excludes unvested restricted stock awards. The diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, unvested restricted stock awards and unvested restricted stock units are considered to be common stock equivalents. Fiscal Years Ended September 30, 2018 2017 2016 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (28,207 ) $ (39,547 ) $ (33,111 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 30,370 28,649 27,379 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.93 ) $ (1.38 ) $ (1.21 ) The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Stock options 164 414 650 Performance-based restricted stock units and restricted stock units 1,709 1,074 736 |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company has one operating segment with one business activity - developing and monetizing revenue management solutions. Revenues from External Customers Revenues from customers outside the United States were 12% , 11% and 10% of total revenues for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. No single jurisdiction outside of the United States had revenues in excess of 10%. Long-Lived Assets The following table sets forth the Company’s property and equipment, net by geographic region: As of September 30, 2018 2017 (in thousands) United States $ 1,809 $ 3,867 India 337 744 Total property and equipment, net $ 2,146 $ 4,611 |
Schedule II - Valuation and qua
Schedule II - Valuation and qualifying accounts | 12 Months Ended |
Sep. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and qualifying accounts | Schedule II - Valuation and qualifying accounts The table below presents the changes in the allowance for doubtful accounts for the fiscal years ended September 30, 2018 , 2017 , and 2016 , respectively. Description Balance at Beginning of Period Additions Charges to Costs and Expenses Write-offs and Deductions Balance at End of Period Allowance for doubtful receivables For the Year Ended September 30, 2018 $ 85 172 85 $ 172 For the Year Ended September 30, 2017 $ — 85 — $ 85 For the Year Ended September 30, 2016 $ — — — $ — Valuation allowance for deferred tax assets For the Year Ended September 30, 2018 $ 78,003 10,708 20,832 $ 67,879 For the Year Ended September 30, 2017 $ 56,113 21,890 — $ 78,003 For the Year Ended September 30, 2016 $ 42,128 13,985 — $ 56,113 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis for Presentation | Basis for Presentation The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. |
Revenue Recognition | Revenue Recognition Revenues are comprised of Software as a Service (“SaaS”) and maintenance revenues and license and implementation revenues. SaaS and Maintenance SaaS and maintenance revenues primarily include subscription and the related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on-premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to managed support services, training and customer-reimbursed expenses. The Company has determined that its subscriptions have standalone value without the implementation services and allocates revenue to each deliverable in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE are available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company established the BESP for each element by considering company-specific factors such as existing pricing and discounting. The total arrangement fee for a multiple element arrangement is allocated based on the relative selling price method, taking into consideration contingent revenue restraints. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. Prior to fiscal year 2016, for SaaS arrangements related to Revenue Cloud for Life Science and High Tech companies the Company treated the entire arrangement consideration, including subscription fees and related implementation services fees, as a single unit of accounting and recognized the revenues ratably beginning the day the customer was provided access to the subscription service through the end of contractual period. During fiscal year 2016, the Company concluded that the SaaS deliverable has standalone value to the customer without the implementation services, primarily due to the number of third-party consulting companies that have the know-how to be able to independently perform the implementation services. Revenue related to up-front fees are deferred and recognized ratably over the estimated period that the customer benefits from the related service. Maintenance and support revenue include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Managed support services revenue includes supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenue and managed support services revenue are recognized ratably over the period in which the services are provided. The revenue from training and customer-reimbursed expenses is recognized as the Company delivers these services. Arrangements that include term-based licenses for current products with the right to use unspecified future versions of the software and maintenance and support during the coverage period, are also accounted for as subscriptions, with revenue recognized ratably over the coverage period. License and Implementation License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and the related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ use of the on-premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on-premise solutions and the related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured as the hours expended on the implementation during the reporting period as a percentage of the total estimated hours needed to complete the implementation. Revenue Recognition The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection of the fees is probable or reasonably estimable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. The Company does not offer any contractual rights of return or concessions. The Company’s implementation projects generally have a term ranging from a few months to twelve months and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. |
Costs of Revenues | Costs of Revenues Cost of SaaS and maintenance revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation, royalties, facility expense, amortization, depreciation related to server equipment and capitalized software, reimbursable expenses, third-party contractors and cloud hosting costs. Cost of license and implementation revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation, third-party contractor costs and other related expenses. Deferred cost of implementation services consists of costs related to implementation services that were provided to the customer but the revenues for the services have not yet been recognized, provided however that the customer is contractually required to pay for the services. These costs primarily consist of personnel costs. |
Warranty | Warranty The Company provides limited warranties on all sales and provides for the estimated cost of warranties at the date of sale. The estimated cost of warranties has not been material to date. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity in the accompanying consolidated statements of stockholders’ equity. Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of money market funds, and are maintained with financial institutions with high credit ratings. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2018 and 2017 and of the Company’s total revenues for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively: As of September 30, Accounts Receivable 2018 2017 Company A 10% N/A Fiscal Years Ended September 30, Revenue 2018 2017 2016 Company B 15% 11% N/A |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of this allowance for doubtful accounts by considering historical experience, the age of the accounts receivable balances, the credit quality of the customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. Revenue that has been recognized, but for which the Company has not invoiced the customer, amounting to $3.6 million and $4.6 million is recorded as unbilled receivables and is included in accounts receivables in the consolidated balance sheets as of September 30, 2018 and 2017 , respectively. Invoices that have been issued before revenue has been recognized are recorded as deferred revenue in the consolidated balance sheets. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. |
Long-lived Assets | Long-lived Assets The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company records goodwill when consideration paid in an acquisition exceeds the fair value of the net tangible assets and the identified intangible assets acquired. Goodwill is not amortized, but rather is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. We conducted our annual impairment test of goodwill as of September 30, 2018 and 2017 . We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment under Accounting Standards Update (ASU) No. 2011-08, Goodwill and Other (Topic 350): Testing Goodwill for Impairment, issued by the Financial Accounting Standards Board (FASB). If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. Intangible assets, consisting of developed technology, backlog, non-competition agreements customer relationships and trade name, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to ten years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements, trade name and customer relationships is included in sales and marketing expense. No goodwill or intangible assets impairment has been identified in any of the years presented. |
Research and Development and Capitalization of Software Development Costs | Research and Development and Capitalization of Software Development Costs The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years . Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. The Company’s Level 1 assets consist of cash equivalent. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. |
Sales Commissions | Sales Commissions Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. |
Advertising and Promotion Costs | Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. |
Employee Benefit Plan | Employee Benefit Plan The Company has a savings plan that qualifies under Section 401(k) of the Internal Revenue Code (IRC). Under these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options and restricted stock units (“RSUs”) is measured and recognized based on the fair value of the awards on the grant date. The fair value is recognized as expense, net of estimated forfeitures on a ratable basis, over the requisite service period, which is generally the vesting period of the respective award. The Company uses a Monte Carlo simulation model to determine the fair value of its performance-based restricted stock units (“PB-RSUs”) on the grant date. The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. As the PB-RSUs are only granted to executives and leadership team, the Company has determined no forfeiture rate would be applied to the PB-RSUs. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards and employee stock purchase plan (“ESPP”). The Black-Scholes-Merton valuation model requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the FASB ASC No. 740— Accounting for Income Taxes (ASC 740). The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, tax benefits and deductions and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Significant changes to these estimates may result in an increase or decrease to our tax provision in the subsequent period when such a change in estimate occurs.The Company regularly assesses the likelihood that its deferred income tax assets will be realized from future taxable income based on the realization criteria set forth in ASC 740. To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred income tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. |
Segment | Segment The Company has one operating segment with one business activity, developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information as presented on a consolidated basis. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive (loss) income. Other comprehensive loss includes foreign currency translation adjustments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Adopted Accounting Guidance In March 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public companies, the guidance is effective for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted for all companies in any interim or annual period. Forfeitures can be estimated, as required today, or recognized when they occur. Estimates of forfeitures will still be required in certain circumstances, such as at the time of modification of an award or issuance of a replacement award in a business combination. The Company adopted this guidance in the first quarter of fiscal year 2018 and has elected to continue to estimate our forfeiture rate. In the year of adoption, the ASU requires that the cumulative effect adjustment be recorded to retained earnings. Due to a full valuation allowance, there is no cumulative effect adjustment to record and the adoption of this guidance had no material impact on the Company's consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740), which amended the existing accounting standards for income taxes. The amendments require companies to report their deferred tax liabilities and deferred tax assets each as a single non-current item on their classified balance sheets. The Company adopted this guidance. The adoption of this guidance had no material impact on the Company's consolidated financial statements. Recently Enacted Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company does not believe this will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the Step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of the Company’s fair value of with carrying amount and the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal year 2019. Early adoption is permitted. The Company does not believe this will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalent balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. The guidance become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company do not plan to early adopt, and accordingly we will adopt the new standard effective at the beginning of its first quarter of fiscal year 2019. The Company does not believe this will have material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow (Topic 230), amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal year 2019. Early adoption is permitted, including adoption in an interim period. The Company does not believe this will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of October 1, 2019 for the Company, with optional practical expedients, but permits adoption in an earlier period. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606), as amended, which will supersede nearly all existing revenue recognition guidance. The underlying principle of ASC 606 is to recognize revenue when a customer obtains control of promised goods or services at an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services. To achieve this, the Company should apply the five-step revenue recognition model, which may require the use of judgments and estimates, also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. Subsequently, the FASB issued several amendments to the new standard, which clarified or affected certain aspects of ASC 606 but did not change the core principle of the guidance. The new standard permits two methods of adoption: (i) retrospectively to each prior period presented (full retrospective method), or ii) retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption (modified retrospective method). The Company will adopt the new standard using the modified retrospective method at the beginning of the first quarter of fiscal year 2019. The Company is in process of finalizing its new accounting policies, processes, and internal controls necessary to support the requirements of ASC 606. The Company has substantially completed its assessment of the financial statement impact of ASC 606, the impact of which are as discussed below. ASC 606 will primarily impact our revenue recognition for on-premises offerings, which contained deliverables within the scope of ASC 985-605, Software-Revenue Recognition, by eliminating the requirement to have VSOE for undelivered elements, which accelerates the timing of revenue recognition. In addition, ASC 606 requires incremental contract acquisition costs (such as sales commissions) for customer contracts to be capitalized and amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the capitalized cost relates. Currently, these costs are expensed as incurred. Upon adopting ASC 606 at the beginning of fiscal year 2019, the Company's cumulative effect adjustment will decrease accumulated deficit by approximately $10.3 million . This cumulative effect adjustment is primarily driven by a reduction to our deferred subscription revenues of approximately $3.2 million and deferred license and implementation revenues of approximately $3.9 million . Further, refundable amounts associated with customer contracts of approximately $0.6 million will be reclassified from deferred subscription revenues to customer deposit. In addition to the adjustment to deferred revenue, other adjustments at transition include adjustments to other current and noncurrent assets. The adjustment to other current and noncurrent assets is primarily for capitalized incremental contract acquisitions costs of approximately $3.2 million . The Company does not expect that this accounting standard update will have a material impact on the Company's tax provision. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Accounts Receivable and Revenues of Customers Comprising 10% or More | The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2018 and 2017 and of the Company’s total revenues for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively: As of September 30, Accounts Receivable 2018 2017 Company A 10% N/A Fiscal Years Ended September 30, Revenue 2018 2017 2016 Company B 15% 11% N/A |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocation of Purchase Price | The final allocation of the purchase price is as follows: Fair Value (in thousands) Cash and cash equivalents $ 5,067 Accounts receivable 6,184 Prepaid expenses 1,067 Other current assets 47 Property, plant and equipment 1,506 Intangible assets 39,100 Goodwill 32,344 Other assets 25 Total assets acquired 85,340 Accounts payable (1,352 ) Accrued employee compensation (3,983 ) Accrued liabilities (1,410 ) Deferred revenue liability (12,856 ) Other liabilities (4,256 ) Total liabilities assumed (23,857 ) Net acquired assets $ 61,483 |
Schedule of Acquired Identifiable Assets | The following table presents certain information on the acquired identifiable assets: Intangible assets Fair value (in thousands) Estimated useful lives (years) Weighted-average estimated useful lives (years) Developed technology $ 6,770 6 6 Customer relationship $ 32,180 10 10 Trade name $ 150 1 1 |
Schedule of Unaudited Pro Forma Consolidated Combined Results of Operations | The following unaudited pro forma combined consolidated financial information has been prepared by the Company using the acquisition method of accounting to give effect to the Revitas acquisition as if it had occurred on October 1, 2015. The following table sets forth the unaudited pro forma consolidated combined results of operations: Fiscal Year Ended September 30, 2017 2016 (in thousands, except per share data) Revenue $ 140,227 $ 149,632 Net loss (45,346 ) (38,656 ) Net loss per shares-basic and diluted $ (1.58 ) $ (1.41 ) |
Consolidated Balance Sheet Co_2
Consolidated Balance Sheet Components (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment | Property and Equipment As of September 30, 2018 2017 (in thousands) Computer software and equipment $ 8,154 $ 10,274 Furniture and fixtures 1,309 1,284 Leasehold improvements 1,251 1,466 Software development costs 9,416 9,416 Total property and equipment 20,130 22,440 Less: Accumulated depreciation and amortization (17,984 ) (17,829 ) Total Property and equipment, net 2,146 4,611 |
Schedule of Intangible Assets | Intangible Assets As of September 30, 2018 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (6,448 ) $ 5,635 Backlog 5 280 (275 ) 5 Customer relationships 3-10 36,599 (7,642 ) 28,957 Total $ 48,962 $ (14,365 ) $ 34,597 As of September 30, 2017 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (4,545 ) $ 7,538 Backlog 5 280 (215 ) 65 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 36,599 (4,084 ) 32,515 Trade name 1 260 (222 ) 38 Total $ 49,322 $ (9,166 ) $ 40,156 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense for the intangible assets as of September 30, 2018 is as follows: Fiscal Years Ending September 30, (in thousands) 2019 $ 5,466 2020 4,751 2021 4,687 2022 4,687 2023 and thereafter 15,006 Total future amortization $ 34,597 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents goodwill activity for the years ended September 30, 2018 and 2017 (in thousands): Balance as at September 30, 2016 $ 6,939 Add: Goodwill from acquisition of business 32,344 Balance as at September 30, 2017 $ 39,283 Add: Goodwill from acquisition of business — Balance as at September 30, 2018 $ 39,283 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Applicable Margin Rates | See the table below of applicable margin rates: Level Leverage Ratio Calculation Applicable Margin Relative to Base Rate Applicable Margin Relative to LIBOR Rate I <2.0:1.0 2.0% 3.0% II >=2.0:1.0 but less than 3.5:1.0 2.5% 3.5% III >=3.5:1.0 3.5% 4.5% |
Schedule of Term Loan and Promissory Notes | As of September 30, 2018 , the term loan with Wells Fargo and promissory note consisted of the following: Amount (in thousands) Principal $ 54,750 Unamortized debt discount and issuance costs (1,046 ) Net carrying amount $ 53,704 |
Schedule of Future Principal Payments for Term Loan and Promissory Notes | The future scheduled principal payments for the term loan and promissory note as of September 30, 2018 were as follows (in thousands): Fiscal Year: 2019 $ 1,375 2020 7,813 2021 3,750 2022 3,750 2023 38,062 Total $ 54,750 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measured on Recurring Basis | The table below sets forth the Company’s cash equivalents as of September 30, 2018 and 2017 , which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. The Company had no liabilities measured at fair value on a recurring basis. Level 1 Level 2 Level 3 Total (in thousands) As of September 30, 2018: Assets: Cash equivalents $ 43,741 $ — $ — $ 43,741 Total $ 43,741 $ — $ — $ 43,741 As of September 30, 2017: Assets: Cash equivalents $ 47,754 $ — $ — $ 47,754 Total $ 47,754 $ — $ — $ 47,754 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Operating Leases | The Company leases facilities under noncancelable operating leases. As of September 30, 2018 , future minimum payments under operating leases were as follows: Contractual Payment Obligations Due by Period (in thousands) Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations (1) $ 8,900 $ 3,200 $ 4,600 $ 1,100 $ — (1) Operating lease obligations represent our obligations to make payments under the lease agreements for our facilities leases. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Summary of Stock Option Activity and Related Information Under All Stock Option Plans | The following table summarized the stock option activity and related information under all stock option plans: Number of Shares (in thousands) Weighted Average Exercised Price Weighted Average Remaining Contract Term (in years) Aggregate Intrinsic Value (in thousands) Balance at September 30, 2015 1,119 $ 6.29 4.68 $ 4,904 Exercised (233) 3.96 — Forfeited (12) 13.70 — Expired (68) 12.72 — Balance at September 30, 2016 806 6.31 3.56 $ 4,103 Exercised (329) 4.06 — Forfeited — — — Expired (24) 11.69 — Balance at September 30, 2017 453 7.71 3.53 $ 3,281 Exercised (179) 8.61 — Forfeited — — — Expired (47) 4.65 — Balance at September 30, 2018 227 $ 7.64 2.94 $ 1,861 Options exercisable as of September 30, 2018 227 $ 7.64 2.94 $ 1,861 Options vested and expected to vest as of September 30, 2018 227 $ 7.64 2.94 $ 1,861 |
Weighted-Average Assumptions Used to Estimate Fair Value of ESPP | The following table summarizes the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s ESPP plan during the periods presented: Fiscal Years Ended September 30, 2018 2017 2016 Risk-free interest rate 1.73 % 0.75 % 0.38 % Dividend yield — % — % — % Volatility 28 % 29 % 34 % Expected term (in years) 0.50 0.50 0.50 |
Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Awards) Under All Equity Award Plans | The following table summarizes the Company’s restricted stock unit activity (including performance based restricted stock awards) under all equity award plans: Restricted Stock Units Outstanding (in thousands) Weighted Average Grant Date Fair Value Balance at September 30, 2015 2,302 $ 12.32 Granted 2,064 10.61 Released (720 ) 10.50 Forfeited (529 ) 11.24 Balance at September 30, 2016 3,117 $ 11.81 Granted 1,817 11.67 Released (813 ) 10.58 Forfeited (1,204 ) 10.65 Balance at September 30, 2017 2,917 $ 12.55 Granted 1,355 22.92 Released (1,137 ) 13.99 Forfeited (822 ) 18.57 Balance at September 30, 2018 2,313 $ 15.78 |
Summary of Unvested Awards | The following table summarizes certain information of the unvested awards as of September 30, 2018: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 22.5 $ 0.4 Weighted-average period to recognize (in years) 2.2 0.4 (1): Includes restricted stock units and performance-based restricted stock awards. |
Stock-based Compensation | Stock-based compensation recorded in the statements of operations is as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Cost of revenues: SaaS and maintenance $ 1,269 $ 1,007 $ 1,032 License and implementation 1,387 1,015 918 Total stock-based compensation in cost of revenues 2,656 2,022 1,950 Operating expenses: Research and development 2,983 1,744 1,393 Sales and marketing 3,524 2,651 3,307 General and administrative 14,161 4,143 6,418 Total stock-based compensation in operating expenses 20,668 8,538 11,118 Total stock-based compensation $ 23,324 $ 10,560 $ 13,068 |
Performance-based Restricted Stock Units [Member] | |
Summary of Grant Date Fair Value Assumptions | The grant date fair values of these awards were determined using the following assumptions: Fiscal Year Ended September 30, 2018 2017 2016 Risk-free interest rate 2.42%-2.57% 1.32%-1.45% 0.86%-1.15% Dividend yield — — — Volatility 39%-40% 38%-40% 45 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Loss Before Income Taxes | The components of loss before income taxes are as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Domestic $ (31,312 ) $ (43,753 ) $ (34,527 ) Foreign 3,078 921 1,751 Loss before taxes $ (28,234 ) $ (42,832 ) $ (32,776 ) |
Components of Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes are as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Current Federal $ (110 ) $ — $ — State 36 37 23 Foreign 439 647 140 365 684 163 Deferred Federal (404 ) (3,436 ) 150 State 12 (533 ) 22 (392 ) (3,969 ) 172 Total provision (benefit) for income taxes $ (27 ) $ (3,285 ) $ 335 |
Reconciliation of Statutory Federal Income Tax to Company's Effective Tax | Reconciliation of the statutory federal income tax to the Company’s effective tax: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Tax at statutory federal rate $ (6,854 ) $ (14,563 ) $ (11,147 ) State tax, net of federal benefit 36 37 23 Permanent differences 1,006 692 370 Stock based compensation (3,761 ) (596 ) 201 Foreign tax rate differential (308 ) 334 (453 ) Change in valuation allowance (13,785 ) 15,279 12,008 Research and development tax credits (725 ) (656 ) (834 ) Change in deferred tax liabilities (392 ) (3,390 ) 173 Change in federal statutory tax rate 24,828 — — Other (72 ) (422 ) (6 ) Total provision (benefit) for income taxes $ (27 ) $ (3,285 ) $ 335 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: As of September 30, 2018 2017 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,087 $ 842 Accruals and other 3,098 5,541 Deferred revenue 152 3,288 NOL carry-forward 58,245 68,190 Stock compensation 2,701 4,840 Research and development tax credits 11,895 9,792 Total deferred tax assets 77,178 92,493 Valuation allowance (67,879 ) (78,003 ) Net deferred tax assets 9,299 14,490 Deferred tax liabilities: Intangibles (9,398 ) (14,983 ) Net deferred tax liabilities $ (99 ) $ (493 ) |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,143 $ 3,310 $ 3,119 Gross decrease based on tax positions during the prior period (143 ) (584 ) (147 ) Gross increase based on tax positions during the prior period 94 — — Gross increase based on tax positions during the current period 375 417 338 Unrecognized tax benefits at the end of the period $ 3,469 $ 3,143 $ 3,310 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | Fiscal Years Ended September 30, 2018 2017 2016 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (28,207 ) $ (39,547 ) $ (33,111 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 30,370 28,649 27,379 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.93 ) $ (1.38 ) $ (1.21 ) |
Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders | The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Fiscal Years Ended September 30, 2018 2017 2016 (in thousands) Stock options 164 414 650 Performance-based restricted stock units and restricted stock units 1,709 1,074 736 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Company's Property and Equipment, Net by Geographic Region | The following table sets forth the Company’s property and equipment, net by geographic region: As of September 30, 2018 2017 (in thousands) United States $ 1,809 $ 3,867 India 337 744 Total property and equipment, net $ 2,146 $ 4,611 |
The Company - Additional Inform
The Company - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Date of incorporation | Dec. 14, 1999 |
State of incorporation | Delaware |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Estimates - Additional Information (Detail) | 12 Months Ended | |||
Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Oct. 01, 2018USD ($) | |
Significant Accounting Policies and Estimates [Line Items] | ||||
Project implementation term range | few months to twelve months | |||
Deferred cost of implementation services | $ 100,000 | $ 600,000 | ||
Unbilled receivables recorded in balance sheets | 3,600,000 | 4,600,000 | ||
Impairment charges on long-lived assets | 0 | 0 | $ 0 | |
Goodwill impairment | 0 | 0 | 0 | |
Intangible assets impairment | 0 | 0 | 0 | |
Software development costs capitalized | 0 | 400,000 | 1,100,000 | |
Advertising and promoting costs | 400,000 | 300,000 | 300,000 | |
Employer contribution to employee benefit plan | 600,000 | 700,000 | $ 600,000 | |
Deferred tax assets fully offset by valuation allowance | $ 77,178,000 | 92,493,000 | ||
Number of operating segment | Segment | 1 | |||
Accumulated deficit | $ (203,500,000) | (175,293,000) | ||
Deferred subscription revenues | $ 52,176,000 | $ 49,186,000 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Forecast [Member] | ASU 2014-09 [Member] | ||||
Significant Accounting Policies and Estimates [Line Items] | ||||
Accumulated deficit | $ 10,300,000 | |||
Deferred subscription revenues | (600,000) | |||
Customer deposits | 600,000 | |||
Other assets, current and non current | 3,200,000 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Forecast [Member] | ASU 2014-09 [Member] | Software As A Service And Maintenance [Member] | ||||
Significant Accounting Policies and Estimates [Line Items] | ||||
Deferred revenue | 3,200,000 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Forecast [Member] | ASU 2014-09 [Member] | License And Implementation [Member] | ||||
Significant Accounting Policies and Estimates [Line Items] | ||||
Deferred revenue | $ 3,900,000 | |||
Software development costs [Member] | ||||
Significant Accounting Policies and Estimates [Line Items] | ||||
Estimated useful life | 3 years | |||
Minimum [Member] | ||||
Significant Accounting Policies and Estimates [Line Items] | ||||
Estimated useful life | 3 years | |||
Maximum [Member] | ||||
Significant Accounting Policies and Estimates [Line Items] | ||||
Estimated useful life | 10 years | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Significant Accounting Policies and Estimates [Line Items] | ||||
Accounts receivable and revenues percentage | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Estimates - Summary of Accounts Receivable and Revenues of Customers Comprising 10% or More (Detail) - Customer Concentration Risk [Member] | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 10.00% | |
Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 10.00% | |
Company A [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 10.00% | |
Company B [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of Credit Risk | 15.00% | 11.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Estimates - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2018 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of the lease term or estimated useful life |
Software development costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Computer software and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Minimum [Member] | Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Maximum [Member] | Computer software and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Maximum [Member] | Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) | Jan. 05, 2017USD ($) | Jan. 05, 2017USD ($)PromissoryNote | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Fair value allocated to goodwill | $ 0 | $ 32,344,000 | ||
Sapphire Stripe Holdings, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of equity interests acquired | 100.00% | 100.00% | ||
Revitas Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, transactions closed date | Jan. 5, 2017 | |||
Cash payment to acquire business | $ 52,800,000 | |||
Number of promissory notes issued | PromissoryNote | 2 | |||
Acquisition and transactional costs associated with acquisition | $ 2,200,000 | |||
Fair value allocated to intangible assets | $ 39,100,000 | $ 39,100,000 | ||
Fair value allocated to goodwill | 32,300,000 | |||
Revitas Inc. [Member] | Promissory Note One [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | 5,000,000 | $ 5,000,000 | ||
Maturity period | 18 months | |||
Revitas Inc. [Member] | Promissory Note Two [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | 5,000,000 | $ 5,000,000 | ||
Maturity period | 36 months | |||
Revitas Inc. [Member] | Term Loan [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | $ 50,000,000 | $ 50,000,000 | ||
Maturity period | 5 years |
Business Combinations - Schedul
Business Combinations - Schedule of Preliminary Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 05, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 39,283 | $ 39,283 | $ 6,939 | |
Revitas Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 5,067 | |||
Accounts receivable | 6,184 | |||
Prepaid expenses | 1,067 | |||
Other current assets | 47 | |||
Property, plant and equipment | 1,506 | |||
Intangible assets | 39,100 | |||
Goodwill | 32,344 | |||
Other assets | 25 | |||
Total assets acquired | 85,340 | |||
Accounts payable | (1,352) | |||
Accrued employee compensation | (3,983) | |||
Accrued liabilities | (1,410) | |||
Deferred revenue liability | (12,856) | |||
Other liabilities | (4,256) | |||
Total liabilities assumed | (23,857) | |||
Net acquired assets | $ 61,483 |
Business Combinations - Sched_2
Business Combinations - Schedule of Acquired Identifiable Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jan. 05, 2017 | |
Trade name [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, Estimated useful lives | 1 year | ||
Revitas Inc. [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 39,100 | ||
Revitas Inc. [Member] | Developed technology [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 6,770 | ||
Intangible assets, Estimated useful lives | 6 years | ||
Intangible assets, Weighted-average estimated useful lives | 6 years | ||
Revitas Inc. [Member] | Customer relationship [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 32,180 | ||
Intangible assets, Estimated useful lives | 10 years | ||
Intangible assets, Weighted-average estimated useful lives | 10 years | ||
Revitas Inc. [Member] | Trade name [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 150 | ||
Intangible assets, Estimated useful lives | 1 year | ||
Intangible assets, Weighted-average estimated useful lives | 1 year |
Business Combinations - Sched_3
Business Combinations - Schedule of Unaudited Pro Forma Consolidated Combined Results of Operations (Detail) - Revitas Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||
Revenue | $ 140,227 | $ 149,632 |
Net loss | $ (45,346) | $ (38,656) |
Net loss per shares-basic and diluted (in dollars per share) | $ (1.58) | $ (1.41) |
Consolidated Balance Sheet Co_3
Consolidated Balance Sheet Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 20,130 | $ 22,440 |
Less: Accumulated depreciation and amortization | (17,984) | (17,829) |
Total Property and equipment, net | 2,146 | 4,611 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 8,154 | 10,274 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,309 | 1,284 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,251 | 1,466 |
Software development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 9,416 | $ 9,416 |
Consolidated Balance Sheet Co_4
Consolidated Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation of property and equipment | $ 2.7 | $ 3.5 | $ 4.5 |
Amortization expense of intangible assets | $ 5.6 | $ 4.6 | $ 1.4 |
Consolidated Balance Sheet Co_5
Consolidated Balance Sheet Components - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 48,962 | $ 49,322 |
Intangible assets, Accumulated Amortization | (14,365) | (9,166) |
Intangible assets, Net Carrying Amount | $ 34,597 | 40,156 |
Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 3 years | |
Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 10 years | |
Developed technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 12,083 | 12,083 |
Intangible assets, Accumulated Amortization | (6,448) | (4,545) |
Intangible assets, Net Carrying Amount | $ 5,635 | $ 7,538 |
Developed technology [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 5 years | 5 years |
Developed technology [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 6 years | 6 years |
Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 5 years | 5 years |
Intangible assets, Gross Carrying Amount | $ 280 | $ 280 |
Intangible assets, Accumulated Amortization | (275) | (215) |
Intangible assets, Net Carrying Amount | 5 | $ 65 |
Non-competition agreement [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 3 years | |
Intangible assets, Gross Carrying Amount | $ 100 | |
Intangible assets, Accumulated Amortization | (100) | |
Intangible assets, Net Carrying Amount | 0 | |
Customer relationship [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | 36,599 | 36,599 |
Intangible assets, Accumulated Amortization | (7,642) | (4,084) |
Intangible assets, Net Carrying Amount | $ 28,957 | $ 32,515 |
Customer relationship [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 3 years | 3 years |
Customer relationship [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 10 years | 10 years |
Trade name [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 1 year | |
Intangible assets, Gross Carrying Amount | $ 260 | |
Intangible assets, Accumulated Amortization | (222) | |
Intangible assets, Net Carrying Amount | $ 38 |
Consolidated Balance Sheet Co_6
Consolidated Balance Sheet Components - Schedule of Estimated Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 5,466 | |
2,020 | 4,751 | |
2,021 | 4,687 | |
2,022 | 4,687 | |
2023 and thereafter | 15,006 | |
Intangible assets, Net Carrying Amount | $ 34,597 | $ 40,156 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 39,283 | $ 6,939 |
Add: Goodwill from acquisition of business | 0 | 32,344 |
Ending balance | $ 39,283 | $ 39,283 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 05, 2017 | Sep. 30, 2016 |
Goodwill [Line Items] | ||||
Goodwill | $ 39,283 | $ 39,283 | $ 6,939 | |
Revitas Inc. [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 32,344 |
Debt - Term Loan Additional Inf
Debt - Term Loan Additional Information (Detail) - USD ($) | Jan. 05, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 3,142,000 | $ 0 | $ 0 | ||
Debt pre-payment penalty | $ 1,500,000 | $ 0 | $ 0 | ||
Financing Agreement [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of term loan | $ 50,000,000 | ||||
Loss on extinguishment of debt | 3,100,000 | ||||
Debt pre-payment penalty | 1,500,000 | ||||
Write-off of unamortized discounts and debt issuance cost | $ 1,600,000 | ||||
Revitas Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Business acquisition, transactions closed date | Jan. 5, 2017 | ||||
Revitas Inc. [Member] | Financing Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Jan. 5, 2022 | ||||
Revitas Inc. [Member] | Financing Agreement [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 50,000,000 | ||||
Percentage of repayment on principal amount of term loan | 0.625% | ||||
Revitas Inc. [Member] | Financing Agreement [Member] | Term Loan [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 9.25% | ||||
Revitas Inc. [Member] | Financing Agreement [Member] | Term Loan [Member] | LIBOR Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 8.25% |
Debt - Term Loan Wells Fargo Ad
Debt - Term Loan Wells Fargo Additional Information (Detail) - Credit Agreement [Member] - USD ($) | May 04, 2018 | Dec. 31, 2018 | Sep. 30, 2018 |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Consolidated liquidity | $ 30,000,000 | ||
Consolidated liquidity term | 90 days | ||
Minimum leverage ratio | 350.00% | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Financial covenants | $ 15,000,000 | ||
Wells Fargo Bank National Association [Member] | LIBOR Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.50% | ||
Wells Fargo Bank National Association [Member] | Revolving Loan [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line of credit, aggregate principal amount | 5,000,000 | ||
Term Loan [Member] | September 30, 2018 through June 30, 2019 | |||
Debt Instrument [Line Items] | |||
Term loan, quarterly principal payment | 250,000 | ||
Term Loan [Member] | September 30, 2019 through June 30, 2020 | |||
Debt Instrument [Line Items] | |||
Term loan, quarterly principal payment | 625,000 | ||
Term Loan [Member] | September 30, 2020 through March 31, 2023 | |||
Debt Instrument [Line Items] | |||
Term loan, quarterly principal payment | 937,500 | ||
Term Loan [Member] | Maximum [Member] | Forecast [Member] | |||
Debt Instrument [Line Items] | |||
Term loan, quarterly principal payment | $ 5,000,000 | ||
Term Loan [Member] | Wells Fargo Bank National Association [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 50,000,000 | ||
Debt instrument, maturity date | May 4, 2023 |
Debt - Schedule of Applicable M
Debt - Schedule of Applicable Margin Rates (Detail) - Wells Fargo Bank National Association [Member] - Credit Agreement [Member] | 12 Months Ended |
Sep. 30, 2018 | |
LIBOR Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 4.50% |
Level I [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 2 |
Level I [Member] | Base Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Level I [Member] | LIBOR Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.00% |
Level II [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 2 |
Level II [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 3.5 |
Level II [Member] | Base Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.50% |
Level II [Member] | LIBOR Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.50% |
Level III [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 3.5 |
Level III [Member] | Base Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.50% |
Level III [Member] | LIBOR Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 4.50% |
Debt - Promissory Note (Detail)
Debt - Promissory Note (Detail) | Jul. 05, 2018USD ($) | May 04, 2018USD ($) | Jan. 05, 2017USD ($)PromissoryNote | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 55,250,000 | $ 0 | $ 0 | ||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 7.20% | ||||||
Revitas Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of promissory notes issued | PromissoryNote | 2 | ||||||
Promissory Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of promissory notes issued | PromissoryNote | 2 | ||||||
Repayment of debt | $ 5,000,000 | ||||||
Promissory notes, interest rate | 3.00% | ||||||
Preliminary fair value of promissory note | $ 8,600,000 | ||||||
Promissory Notes [Member] | Discount Rate | |||||||
Debt Instrument [Line Items] | |||||||
Discounted future cash flow interest rate | 0.0996 | ||||||
Promissory Notes [Member] | Revitas Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 10,000,000 | ||||||
Promissory Note One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Jul. 5, 2018 | ||||||
Promissory Note One [Member] | Revitas Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 5,000,000 | ||||||
Promissory Note Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Jan. 5, 2020 | ||||||
Effective interest rate | 9.89% | ||||||
Promissory Note Two [Member] | Revitas Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 5,000,000 | ||||||
Credit Agreement [Member] | Term Loan [Member] | Wells Fargo Bank National Association [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 50,000,000 | ||||||
Debt instrument, maturity date | May 4, 2023 | ||||||
Transaction costs | $ 700,000 |
Debt - Schedule of Term Loan an
Debt - Schedule of Term Loan and Promissory Notes (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Principal | $ 54,750 |
Unamortized debt discount and issuance costs | (1,046) |
Net carrying amount | $ 53,704 |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments for Term Loan and Promissory Notes (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Fiscal Year: | |
2,019 | $ 1,375 |
2,020 | 7,813 |
2,021 | 3,750 |
2,022 | 3,750 |
2,023 | 38,062 |
Total | $ 54,750 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - Fair Value Measurement Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 43,741 | $ 47,754 |
Total | 43,741 | 47,754 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 43,741 | 47,754 |
Total | 43,741 | 47,754 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Total | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Total | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash at bank | $ 13,000,000 | $ 9,800,000 |
Money market fund deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair Value Measurement Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments under Operating Leases (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease obligations due, Total | $ 8,900 |
Operating lease obligations due, Less than 1 Year | 3,200 |
Operating lease obligations due, 1 to 3 Years | 4,600 |
Operating lease obligations, 3 to 5 Years | 1,100 |
Operating lease obligations, More than 5 Years | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense under noncancelable operating leases | $ 3.4 | $ 3.2 | $ 2.7 |
Stock-Based Compensation - 2000
Stock-Based Compensation - 2000 Stock Plan (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards, vesting period | 3 years |
2000 Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards, vesting period | 4 years |
Awards, expiration period | 10 years |
Stock-Based Compensation - 2013
Stock-Based Compensation - 2013 Equity Incentive Plan (Details) - shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options, granted (in shares) | 0 | 0 | 0 |
Awards, vesting period | 3 years | ||
Number of shares available for future stock awards (in shares) | 5,200,000 | ||
2013 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan effective date | Mar. 18, 2013 | ||
Plan expiration date | Feb. 28, 2023 | ||
Approved stock reserve (in shares) | 8,000,000 | ||
Approved stock reserved for future issuance (in shares) | 2,500,000 | ||
Additional shares authorized, percentage of common stock issued | 5.00% | ||
Additional shares approved (in shares) | 2,000,000 | ||
Awards, vesting period | 4 years | ||
Awards, expiration period | 10 years | ||
2010 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options, granted (in shares) | 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options, granted (in shares) | 0 | 0 | 0 |
Intrinsic value of options exercised | $ 1,500 | $ 2,500 | $ 1,700 |
Estimated fair value of options vested | $ 0 | $ 22 | $ 400 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information Under All Stock Option Plans (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Shares (in thousands) | ||||
Balance at beginning of period (in shares) | 453 | 806 | 1,119 | |
Exercised (in shares) | (179) | (329) | (233) | |
Forfeited (in shares) | 0 | (12) | ||
Expired (in shares) | (47) | (24) | (68) | |
Balance at end of period (in shares) | 227 | 453 | 806 | 1,119 |
Options exercisable as of end of period (in shares) | 227 | |||
Options vested and expected to vest at end of period (in shares) | 227 | |||
Weighted Average Exercised Price | ||||
Balance at beginning of period (in dollars per share) | $ 7.71 | $ 6.31 | $ 6.29 | |
Exercised (in dollars per share) | 8.61 | 4.06 | 3.96 | |
Forfeited (in dollars per share) | 0 | 13.70 | ||
Expired (in dollars per share) | 4.65 | 11.69 | 12.72 | |
Balance at end of period (in dollars per share) | 7.64 | $ 7.71 | $ 6.31 | $ 6.29 |
Options exercisable at end of period (in dollars per share) | 7.64 | |||
Options vested and expected to vest (in dollars per share) | $ 7.64 | |||
Weighted Average Remaining Contract Term (in years) | ||||
Weighted Average Remaining Contract Term (in Years). Shares outstanding | 2 years 11 months 8 days | 3 years 6 months 10 days | 3 years 6 months 22 days | 4 years 8 months 5 days |
Weighted Average Remaining Contract Term (in Years), Options exercisable at end of period | 2 years 11 months 8 days | |||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest at end of period | 2 years 11 months 8 days | |||
Aggregate Intrinsic Value | $ 1,861 | $ 3,281 | $ 4,103 | $ 4,904 |
Aggregate Intrinsic Value, Options exercisable | 1,861 | |||
Aggregate Intrinsic Value, Options vested and expected to vest | $ 1,861 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - ESPP [Member] | 12 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discounted employee stock purchase plan percentage | 15.00% |
Fair market value percentage on employee stock purchase plan | 85.00% |
Offering periods for employee stock purchase plan | Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of ESPP (Detail) - ESPP [Member] | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.73% | 0.75% | 0.38% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 28.00% | 29.00% | 34.00% |
Expected term (in years) | 6 months | 6 months | 6 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units and Performance-based Restricted Stock Units (Details) - USD ($) $ in Thousands | Jun. 07, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options, granted (in shares) | 0 | 0 | 0 | |
Awards, vesting period | 3 years | |||
Stock-based compensation | $ 23,324 | $ 10,560 | $ 13,068 | |
Mr. Rinat [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares issued (in shares) | 572,601 | |||
Stock-based compensation | $ 10,500 | |||
Below 30th Percentile [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options, granted (in shares) | 0 | |||
Performance-based Restricted Stock Units [Member] | Mr. Rinat [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unites cancelled (in shares) | 375,234 | |||
Performance-based Restricted Stock Units [Member] | Mr. Rinat [Member] | General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense reversed | $ 2,000 | |||
2013 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards, vesting period | 4 years | |||
Awards, expiration period | 10 years | |||
Approved stock reserved for future issuance (in shares) | 2,500,000 | |||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
TSR index period | 3 years | |||
Approved stock reserved for future issuance (in shares) | 600,000 | |||
Fair value of restricted stock awards vested | $ 19,800 | $ 8,600 | $ 7,600 | |
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | March 9, 2015 Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance-based restricted stock units, description | Under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 250% of the grant based on the performance of the Company’s TSR relative to the TSR of the Index over a three-year period. No shares will vest and be released in the first year. In any of the two remaining years, no shares will vest and be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the grant will vest and be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the grant will vest and be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest over a three-year period with 50% vesting on each of the second and the third annual anniversary of the vesting commencing date. In addition, these grants have a “catch-up” provision such that if the Company’s TSR relative to the Index for the three-year period exceeds that of the two-year period, additional shares for the two-year period will vest and be released based on the three-year achievement level. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment | |||
Awards, expiration period | 10 years | |||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | Second Anniversary [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vest under terms of grants | 50.00% | |||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | Third Anniversary [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vest under terms of grants | 50.00% | |||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | At 50th Percentile [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares released under terms of grants | 100.00% | |||
2013 Equity Incentive Plan [Member] | Minimum [Member] | Performance-based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares released under terms of grants | 0.00% | |||
2013 Equity Incentive Plan [Member] | Minimum [Member] | Performance-based Restricted Stock Units [Member] | Over 90th Percentile [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares released under terms of grants | 200.00% | |||
2013 Equity Incentive Plan [Member] | Maximum [Member] | Performance-based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares released under terms of grants | 250.00% | |||
2013 Equity Incentive Plan [Member] | Maximum [Member] | Performance-based Restricted Stock Units [Member] | Over 90th Percentile [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares released under terms of grants | 250.00% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Grant Date Fair Value Assumptions (Detail) - Performance-based Restricted Stock Units [Member] | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 45.00% | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.42% | 1.32% | 0.86% |
Volatility | 39.00% | 38.00% | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.57% | 1.45% | 1.15% |
Volatility | 40.00% | 40.00% |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Awards) Under All Equity Award Plans (Detail) - Restricted Stock Units [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted Stock Units Outstanding (in thousands) | |||
Balance at beginning of period (in shares) | 2,917 | 3,117 | 2,302 |
Granted (in shares) | 1,355 | 1,817 | 2,064 |
Released (in shares) | (1,137) | (813) | (720) |
Forfeited (in shares) | (822) | (1,204) | (529) |
Balance at end of period (in shares) | 2,313 | 2,917 | 3,117 |
Weighted Average Grant Date Fair Value | |||
Balance at beginning of period (in dollars per share) | $ 12.55 | $ 11.81 | $ 12.32 |
Granted (in dollars per share) | 22.92 | 11.67 | 10.61 |
Released (in dollars per share) | 13.99 | 10.58 | 10.50 |
Forfeited (in dollars per share) | 18.57 | 10.65 | 11.24 |
Balance at end of period (in dollars per share) | $ 15.78 | $ 12.55 | $ 11.81 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Unvested Awards (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total compensation cost for unvested | $ 22.5 |
Weighted-average period to recognize | 2 years 2 months 12 days |
ESPP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total compensation cost for unvested | $ 0.4 |
Weighted-average period to recognize | 4 months 24 days |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Allocated Stock-based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | $ 23,324 | $ 10,560 | $ 13,068 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,656 | 2,022 | 1,950 |
Cost of revenues [Member] | Software As A Service And Maintenance [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,269 | 1,007 | 1,032 |
Cost of revenues [Member] | License And Implementation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,387 | 1,015 | 918 |
Operating expenses, Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,983 | 1,744 | 1,393 |
Operating expenses, Sales and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 3,524 | 2,651 | 3,307 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 14,161 | 4,143 | 6,418 |
Operating expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 20,668 | $ 8,538 | $ 11,118 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (31,312) | $ (43,753) | $ (34,527) |
Foreign | 3,078 | 921 | 1,751 |
Loss before income taxes | $ (28,234) | $ (42,832) | $ (32,776) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | ||||
Effective income tax federal statutory rate | 24.30% | |||
Net change in total valuation allowance | $ (10,100) | |||
Deferred tax balance decrease due to reduction in the U.S. income tax rate | 24,900 | |||
Unrecognized tax benefits | 3,469 | $ 3,143 | $ 3,310 | $ 3,119 |
Uncertain tax positions | $ 100 | |||
Net operating loss carry-forwards, limitations on use | Internal Revenue Code section 382 places a limitation (Section 382 Limitation) on the amount of taxable income can be offset by net operating (NOL) carry-forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California has similar rules. | |||
Federal [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss (NOL) carry forwards | $ 232,000 | |||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,021 | |||
Research credit carry forwards | $ 6,100 | |||
Research credit carry forwards, beginning expiring period | 2,020 | |||
State [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss (NOL) carry forwards | $ 606,200 | |||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,019 | |||
Research credit carry forwards, beginning expiring period | indefinitely | |||
State [Member] | Research Tax Credit Carryforward [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Research credit carry forwards | $ 7,400 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current | |||
Federal | $ (110) | $ 0 | $ 0 |
State | 36 | 37 | 23 |
Foreign | 439 | 647 | 140 |
Total current | 365 | 684 | 163 |
Deferred | |||
Federal | (404) | (3,436) | 150 |
State | 12 | (533) | 22 |
Total deferred | (392) | (3,969) | 172 |
Total provision (benefit) for income taxes | $ (27) | $ (3,285) | $ 335 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax to Company's Effective Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | $ (6,854) | $ (14,563) | $ (11,147) |
State tax, net of federal benefit | 36 | 37 | 23 |
Permanent differences | 1,006 | 692 | 370 |
Stock based compensation | (3,761) | (596) | 201 |
Foreign tax rate differential | (308) | 334 | (453) |
Change in valuation allowance | (13,785) | 15,279 | 12,008 |
Research and development tax credits | (725) | (656) | (834) |
Change in deferred tax liabilities | (392) | (3,390) | 173 |
Change in federal statutory tax rate | 24,828 | 0 | 0 |
Other | (72) | (422) | (6) |
Total provision (benefit) for income taxes | $ (27) | $ (3,285) | $ 335 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||
Depreciation and amortization | $ 1,087 | $ 842 |
Accruals and other | 3,098 | 5,541 |
Deferred revenue | 152 | 3,288 |
NOL carry-forward | 58,245 | 68,190 |
Stock compensation | 2,701 | 4,840 |
Research and development tax credits | 11,895 | 9,792 |
Total deferred tax assets | 77,178 | 92,493 |
Valuation allowance | (67,879) | (78,003) |
Net deferred tax assets | 9,299 | 14,490 |
Deferred tax liabilities: | ||
Intangibles | (9,398) | (14,983) |
Net deferred tax liabilities | $ (99) | $ (493) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the period | $ 3,143 | $ 3,310 | $ 3,119 |
Gross decrease based on tax positions during the prior period | (143) | (584) | (147) |
Gross increase based on tax positions during the prior period | 94 | 0 | 0 |
Gross increase based on tax positions during the current period | 375 | 417 | 338 |
Unrecognized tax benefits at the end of the period | $ 3,469 | $ 3,143 | $ 3,310 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net loss per share attributable to common stockholders: | |||
Net loss attributable to common stockholders | $ (28,207) | $ (39,547) | $ (33,111) |
Denominator, Basic and diluted: | |||
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders (in shares) | 30,370 | 28,649 | 27,379 |
Net Loss per Share Attributable to Common Stockholders: | |||
Basic and diluted (in dollars per share) | $ (0.93) | $ (1.38) | $ (1.21) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 164 | 414 | 650 |
Performance-based restricted stock units and restricted stock units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1,709 | 1,074 | 736 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2018SegmentJurisdictionActivity | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of business activity | Activity | 1 | ||
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
The number of jurisdiction outside US which represents over 10% of total revenue | Jurisdiction | 0 | ||
Other [Member] | Geographic concentration risk [Member] | Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers outside United States | 12.00% | 11.00% | 10.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 2,146 | $ 4,611 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 1,809 | 3,867 |
India [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 337 | $ 744 |
Schedule II - Valuation and q_2
Schedule II - Valuation and qualifying accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for doubtful receivables [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance, Balance at Beginning of Period | $ 85 | $ 0 | $ 0 |
Additions Charges to Costs and Expenses | 172 | 85 | 0 |
Write-offs and Deductions | 85 | 0 | 0 |
Allowance, Balance at End of Period | 172 | 85 | 0 |
Valuation allowance for deferred tax assets [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance, Balance at Beginning of Period | 78,003 | 56,113 | 42,128 |
Additions Charges to Costs and Expenses | 10,708 | 21,890 | 13,985 |
Write-offs and Deductions | 20,832 | 0 | 0 |
Allowance, Balance at End of Period | $ 67,879 | $ 78,003 | $ 56,113 |