Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Nov. 01, 2019 | Mar. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MODEL N, INC. | ||
Entity Central Index Key | 0001118417 | ||
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 | 32,995,069 | ||
Entity Public Float | $ 563 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 60,780 | $ 56,704 |
Accounts receivable, net of allowance for doubtful accounts of $51 and $172 as of September 30, 2019, and 2018, respectively | 26,953 | 28,273 |
Prepaid expenses | 2,776 | 3,631 |
Other current assets | 4,039 | 455 |
Total current assets | 94,548 | 89,063 |
Property and equipment, net | 1,043 | 2,146 |
Goodwill | 39,283 | 39,283 |
Intangible assets, net | 29,131 | 34,597 |
Other assets | 5,588 | 1,064 |
Total assets | 169,593 | 166,153 |
Current liabilities: | ||
Accounts payable | 2,302 | 1,664 |
Accrued employee compensation | 19,906 | 14,211 |
Accrued liabilities | 4,354 | 3,182 |
Deferred revenue, current portion | 44,875 | 52,176 |
Long term debt, current portion | 4,911 | 1,375 |
Total current liabilities | 76,348 | 72,608 |
Long-term debt | 39,371 | 52,329 |
Other long-term liabilities | 1,152 | 1,182 |
Total liabilities | 116,871 | 126,119 |
Commitments and contingencies (Note 8) | ||
Convertible preferred stock: | ||
Convertible preferred stock, $0.0005 par value; no shares authorized, issued and outstanding at September 30, 2019 and 2018, respectively | 0 | 0 |
Stockholders’ equity: | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 32,995 and 31,444 shares issued and outstanding at September 30, 2019 and September 30, 2018, respectively | 5 | 5 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 266,295 | 244,814 |
Accumulated other comprehensive loss | (1,169) | (1,285) |
Accumulated deficit | (212,409) | (203,500) |
Total stockholders’ equity | 52,722 | 40,034 |
Total liabilities and stockholders’ equity | $ 169,593 | $ 166,153 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 51 | $ 172 |
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) | 32,995,000 | 31,444,000 |
Common Stock, shares outstanding (in shares) | 32,995,000 | 31,444,000 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | |||
Total revenues | $ 141,235 | $ 154,632 | $ 131,169 |
Cost of revenues: | |||
Total cost of revenues | 66,130 | 65,334 | 61,096 |
Gross profit | 75,105 | 89,298 | 70,073 |
Operating expenses: | |||
Research and development | 30,009 | 32,416 | 31,064 |
Sales and marketing | 32,894 | 35,482 | 41,339 |
General and administrative | 27,213 | 42,178 | 36,281 |
Total operating expenses | 90,116 | 110,076 | 108,684 |
Loss from operations | (15,011) | (20,778) | (38,611) |
Interest expense, net | 2,933 | 8,178 | 4,159 |
Other expenses (income), net | 319 | (722) | 62 |
Loss before income taxes | (18,263) | (28,234) | (42,832) |
Provision for (benefit from) income taxes | 1,030 | (27) | (3,285) |
Net loss | $ (19,293) | $ (28,207) | $ (39,547) |
Net loss per share attributable to common stockholders: | |||
Basic and diluted (in dollars per share) | $ (0.60) | $ (0.93) | $ (1.38) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | |||
Basic and diluted (in shares) | 32,232 | 30,370 | 28,649 |
Subscription [Member] | |||
Revenues: | |||
Total revenues | $ 105,219 | $ 98,308 | $ 86,151 |
Cost of revenues: | |||
Total cost of revenues | 35,218 | 37,820 | 38,172 |
Professional services [Member] | |||
Revenues: | |||
Total revenues | 36,016 | 56,324 | 45,018 |
Cost of revenues: | |||
Total cost of revenues | $ 30,912 | $ 27,514 | $ 22,924 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (19,293) | $ (28,207) | $ (39,547) |
Other comprehensive income (loss), net: | |||
Unrealized gain on cash flow hedges | 5 | ||
Foreign currency translation gain (loss) | 111 | (783) | 60 |
Total comprehensive loss | $ (19,177) | $ (28,990) | $ (39,487) |
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] |
Balance at (in shares) at Sep. 30, 2016 | 27,891 | ||||
Balance at 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) | |||
Balance at (in shares) at Sep. 30, 2017 | 29,323 | ||||
Balance at 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) | |||
Balance at (in shares) at Sep. 30, 2018 | 31,444 | ||||
Balance at at Sep. 30, 2018 | $ 40,034 | $ 5 | 244,814 | (1,285) | (203,500) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 120 | 120 | |||
Issuance of common stock upon exercise of stock options | $ 822 | 822 | |||
Issuance of common stock upon release of restricted stock units (in shares) | 1,213 | ||||
Issuance of common stock upon release of restricted stock units | 0 | ||||
Issuance of common stock under stock purchase plans (in shares) | 218 | ||||
Issuance of common stock under stock purchase plans | 3,048 | 3,048 | |||
Stock-based compensation | 17,611 | 17,611 | |||
Other comprehensive income (loss) | 116 | 116 | |||
Net loss | (19,293) | (19,293) | |||
Balance at (in shares) at Sep. 30, 2019 | 32,995 | ||||
Balance at at Sep. 30, 2019 | $ 52,722 | $ 5 | $ 266,295 | $ (1,169) | $ (212,409) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||||
Net loss | $ (19,293) | $ (28,207) | $ (39,547) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||||
Depreciation and amortization | 6,790 | 8,299 | 8,185 | |
Stock-based compensation | 21,340 | 23,324 | 10,560 | |
Amortization of debt discount and issuance costs | 579 | 800 | 683 | |
Deferred income taxes | 176 | (392) | (3,952) | |
Amortization of capitalized contract acquisition costs | 1,781 | 0 | 0 | |
Other non-cash charges | (121) | 137 | 216 | |
Loss on extinguishment | 0 | 3,142 | 0 | |
Changes in assets and liabilities, net of acquisition: | ||||
Accounts receivable | 860 | $ 741 | (3,555) | 1,420 |
Prepaid expenses and other assets | (5,158) | (960) | 2,117 | |
Deferred cost of implementation services | 0 | 486 | 1,502 | |
Accounts payable | 692 | (1,434) | (1,558) | |
Accrued employee compensation | 2,015 | (687) | 2,626 | |
Other accrued and long-term liabilities | 240 | (1,622) | 13 | |
Deferred revenue | 549 | 3,192 | 5,770 | |
Net cash provided by (used in) operating activities | 10,450 | 2,523 | (11,965) | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (280) | (252) | (359) | |
Acquisition of business, net of cash acquired | 0 | 0 | (47,773) | |
Capitalization of software development costs | 0 | 0 | (369) | |
Net cash used in investing activities | (280) | (252) | (48,501) | |
Cash flows from financing activities: | ||||
Proceeds from exercise of stock options and issuance of employee stock purchase plan | 3,870 | 4,439 | 3,986 | |
Proceeds from term loan | 0 | 49,588 | 48,686 | |
Debt issuance costs | 0 | (280) | (806) | |
Principal payments on loan | (10,000) | (55,250) | 0 | |
Early payment penalty | 0 | (1,500) | 0 | |
Net cash (used in) provided by financing activities | (6,130) | (3,003) | 51,866 | |
Effect of exchange rate changes on cash and cash equivalents | 36 | (122) | 9 | |
Net decrease in cash and cash equivalents | 4,076 | (854) | (8,591) | |
Cash and cash equivalents | ||||
Beginning of period | 56,704 | 57,558 | 66,149 | |
End of period | 60,780 | $ 60,780 | 56,704 | 57,558 |
Supplemental Disclosure of Cash Flow Data: | ||||
Cash paid for income taxes | 993 | 622 | 677 | |
Cash paid for interest | 3,225 | 4,181 | 3,462 | |
Noncash Investing and Financing Activities: | ||||
Promissory notes issued for acquisition | $ 0 | $ 0 | $ 8,643 |
The Company
The Company | 12 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Model N, Inc. (the “Company”) was incorporated in Delaware on December 14, 1999 . The Company is a provider of cloud revenue management solutions for the life sciences and high tech 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 2019, for example, refer to the fiscal year ended September 30, 2019 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Sep. 30, 2019 | |
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 intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. Change in Presentation Previously, the Company presented revenue and cost of revenue on two lines: “SaaS and maintenance” and “License and implementation.” Historically, the Company’s growth was driven by the sale of on-premise solutions. Over the last few years, the Company shifted its focus to selling cloud-based software. As a result of the business model transition from an on-premise to a software-as-a-service (“SaaS”) model, the Company updated the presentation in fiscal year 2019 to present the revenue and cost of revenue line items within the Consolidated Statements of Operations with the break-out between two new lines called “Subscription” and “Professional services.” Revenues and cost of revenues in prior periods have been reclassified in this filing to conform to the new presentation. This change in presentation does not affect our previously-reported total revenues and total cost of revenues. Subscription Subscription revenues primarily include contractual arrangements with customers accessing our cloud-based solutions. Subscription revenues also include revenues associated with maintenance and support and managed support services. Maintenance and support revenues include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis to customers using on-premise solutions. Managed support services revenues include supporting, managing and administering our software solutions and providing additional end user support. 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 included in subscription revenues. Professional services Professional services revenues primarily include fees generated from implementation, cloud configuration, on-site support and other consulting services. Also included in professional services revenues are revenues related to training and customer-reimbursed expenses, as well as services related to software licenses for our on-premise solutions. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. Significant items subject to such estimates include revenue recognition, income taxes, stock-based compensation, and business combination. 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 under ASC Topic 606 The Company adopted ASC Topic 606, Revenue from Contracts with Customers, on October 1, 2018, using the modified retrospective method. The Company derives revenues primarily from subscription revenues and professional services revenues and applies the following framework to recognize revenue: • Identification of the contract, or contracts, with a customer, • Identification of the performance obligations in the contract, • Determination of the transaction price, • Allocation of the transaction price to the performance obligations in the contract, and • Recognition of revenue when, or as, the Company satisfies a performance obligation. The Company enters into contracts with customers that can include various combinations of services which are generally distinct and accounted for as separate performance obligations. As a result, the contracts may contain multiple performance obligations. The Company determines whether the services are distinct based on whether the customer can benefit from the service on its own or together with other resources that are readily available and whether the Company’s commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The Company generally considers its cloud-based subscription offerings, maintenance and support on license arrangements, managed service support, professional services and training to be distinct performance obligations. Term-based licenses generally have two performance obligations: software licenses and software maintenance. The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Variable consideration, if any, is estimated and included in the transaction price if, in the Company’s judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract. The Company typically does not offer contractual rights of return or concessions. For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on its relative standalone selling price (“SSP”). SSP is estimated for each distinct performance obligation and judgment may be involved in the determination. The Company determines SSP using information that may include market conditions and other observable inputs. The Company evaluates SSP for its performance obligations on a quarterly basis. Revenue is recognized when control of these services is transferred to the customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these services. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. Subscription revenue related to cloud-based solutions, maintenance and support, and managed service and support revenues are generally recognized ratably over the contractual term of the arrangement beginning on the date that our service is made available to the customer. These arrangements, in general, are for committed one to three -year terms. For term-based license contracts, the transaction price allocated to the software element is recognized when it is made available to the customer. The transaction price allocated to the related support and updates is recognized ratably over the contract term. Term-based license arrangements may include termination rights that limit the term of the arrangement to a month, quarter or year. Professional services revenues are generally recognized as the services are rendered for time and materials contracts or recognized using a proportional performance method as hours are incurred relative to total estimated hours for the engagement for fixed price contracts. The majority of the Company’s professional services contracts are on a time and materials basis. Revenue from training and customer-reimbursed expenses is recognized as the Company delivers these services. 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. Capitalized Contract Acquisition Costs under ASC Topic 606 The Company capitalizes incremental costs incurred to acquire contracts with customers, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. The Company incurs these costs in connection with both initial contracts and renewals. Such costs for renewals are not considered commensurate with those for initial contracts given the substantive difference in commission rates in proportion to their respective contract values. The costs in connection with initial contracts and renewals are deferred and amortized over an expected customer life of five years and over the renewal term, respectively, which corresponds to the period of benefit to the customer. The Company determined the period of benefit by considering the Company’s history of customer relationships, length of customer contracts, technological development and obsolescence, and other factors. The current and non-current portion of capitalized contract acquisition costs are included in other current assets and other assets on the Consolidated Balance Sheets. Amortization expense is included in sales and marketing expenses on the Consolidated Statements of Operations. Revenue Recognition under ASC Topic 605 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. Cost of Revenues Cost of subscription revenues primarily consists of personnel-related costs including salary, bonus, and stock-based compensation as well as costs for royalties, facilities expense, amortization, depreciation, third-party contractors and cloud infrastructure costs. Cost of professional services revenues primarily consists of personnel-related costs including salary, bonus, and stock-based compensation as well as costs for third-party contractors and other expenses. 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 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. Hedging Cash Flow Hedging—Hedges of Forecasted Foreign Currency Operation Costs The Company’s customers typically pay in U.S. dollars; however, in foreign jurisdictions, the expenses are typically denominated in local currency. The Company may use foreign exchange forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts generally range from one month to one year in duration. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. The Company records changes in the fair value of cash flow hedges in accumulated other comprehensive loss in the Consolidated Balance Sheets, until the forecasted transaction occurs, at which point, the related gain or loss on the cash flow hedge is reclassified to the financial statement line item to which the derivative relates. In the event the underlying forecasted transaction does not occur or it becomes probable that it will not occur, the gain or loss on the related cash flow hedge is reclassified into earnings from accumulated other comprehensive loss. If the Company does not elect hedge accounting or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recognized immediately in the same financial statement line item to which the derivative relates. Hedge Effectiveness For foreign currency hedges designated as cash flow hedges, the Company elected to utilize the critical terms method to determine if the hedges are highly effective and thus, eligible for hedge accounting treatment. The Company evaluates the effectiveness of the foreign exchange contracts on a quarterly basis. 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, 2019 , and 2018 and of the Company’s total revenues for the fiscal years ended September 30, 2019 , 2018 , and 2017 , respectively: As of September 30, Accounts Receivable 2019 2018 Company A 12% less than 10% Company B less than 10% 10% Fiscal Years Ended September 30, Revenue 2019 2018 2017 Company C less than 10% 15% 11% 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 $5.9 million and $3.6 million is recorded as unbilled receivables and is included in accounts receivables in the Consolidated Balance Sheets as of September 30, 2019 , and 2018 , 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 stated at cost less accumulated depreciation. Depreciation of property and equipment is calculated 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 the lease term or the 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 the Consolidated Statement of Operations. Business Combination The Company includes the results of operations of the businesses that are acquired as of the acquisition date. The Company allocates the purchase price of acquisitions to the assets acquired and liabilities assumed based on the estimated fair values. The excess of the purchase price over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are recognized separately from the business combination and are expensed as incurred. 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. The Company conducted the annual impairment test of goodwill as of September 30, 2019 , and 2018 . For purposes of goodwill impairment testing, the Company has one reporting unit. The Company has 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 the Company determines 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. There have been no goodwill impairments during the periods presented. Intangible assets, consisting of developed technology, backlog, and customer relationships, are stated at cost 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 subscription revenue while amortization expense related to backlog and customer relationships is included in sales and marketing expenses. 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. 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 , zero , and $0.4 million during the fiscal years ended September 30, 2019 , 2018 , and 2017 , 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. The Company’s cash equivalents consist of money market funds, which are classified within Level 1 of the fair value hierarchy because they are valued based on quoted prices in active markets for identical assets or liabilities. Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. The Company incurred $0.2 million , $0.4 million , and $0.3 million in advertising and promotions costs during the fiscal years ended September 30, 2019 , 2018 , and 2017 , respectively. Employee Benefit Plan The Company has a savings plan that qualifies under Section 401(k) of the Internal Revenue Code (IRC). Under the 401(k) Plan, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. The Company contributed approximately $0.6 million , $0.6 million and $0.7 million for the years ended September 30, 2019 , 2018 , and 2017 . 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 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 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 fair value of RSUs is determined based on the closing quoted price of the Company’s common stock on the grant date. 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. The Company grants performance-based restricted stock units (“PB-RSUs”) to executives and leadership team and has determined no forfeiture rate would be applied to the PB-RSUs. PB-RSUs have vesting conditions either based on pre-established performance goals of the Company or the performance of the Company’s total shareholder return relative to that of the Russell 3000 Index. For the former, the fair value is determined based on the closing quoted price of the Company’s common stock on the grant date and the fair value is recognized using the graded-vesting attribution method over the requisite service period. For the latter, the Company uses a Monte Carlo simulation model to determine the fair value on the grant date and the fair value is recognized using the graded-vesting attribution method over the requisite service period. 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 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers Revenue Recognition The Company derives revenues primarily from subscription revenues and professional services revenues. Disaggregation of Revenues See Note 12, Geographic Information, for information on revenue by geography. Customer Contract Balances The following table reflects contract balances with customers (in thousands): As of October 1, 2018 (1) As of September 30, 2019 Change Accounts receivable, net $ 27,694 $ 26,953 $ (741 ) Contract asset 579 1,588 $ 1,009 Deferred revenue 44,854 45,385 $ 531 Capitalized contract acquisition costs 3,324 6,626 $ 3,302 (1) Includes cumulative effect adjustments made to these accounts on October 1, 2018 due to the adoption of ASC 606. Accounts Receivable Accounts receivable represents our right to consideration that is unconditional, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. Contract Asset Contract asset represents revenue that has been recognized for satisfied performance obligations for which the Company does not have an unconditional right to consideration. Deferred Revenue Deferred revenue, which is a contract liability, consists of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. The non-current portion of deferred revenue is included in other long-term liabilities in the Consolidated Balance Sheets. During the year ended September 30, 2019, the Company recognized $44.5 million of revenue that was included in the deferred revenue balance at the beginning of the period. Capitalized Contract Acquisition Costs In connection with the adoption of ASC 606, the Company began to capitalize incremental costs incurred to acquire contracts with customers. See Note 2 for additional information. As of September 30, 2019, the current and non-current portions of capitalized contract acquisition costs were $2.1 million and $4.5 million , respectively. The Company amortized $1.8 million of contract acquisition costs during the year ended September 30, 2019. For the year ended September 30, 2019, there was no impairment related to capitalized contract acquisition costs. Customer Deposits Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the arrangement. These amounts are included in accrued liabilities on the Consolidated Balance Sheets. The customer deposits amount was immaterial as of September 30, 2019 and as of October 1, 2018. Standard payment terms to customers generally range from thirty to ninety days; however, payment terms and conditions in the customer contracts may vary. In some cases, customers prepay for subscription and services in advance of the delivery; in other cases, payment is due as services are performed or in arrears following the delivery. Remaining Performance Obligations Remaining performance obligations represent non-cancelable contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2019, the aggregate amount of the transaction price allocated to performance obligations either unsatisfied or partially unsatisfied was $127.5 million , 51% of which the Company expects to recognize as revenue over the next 12 months and the remainder thereafter. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The table below sets forth the Company’s cash equivalents as of September 30, 2019 , and 2018 , 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, 2019: Assets: Cash equivalents $ 32,792 $ — $ — $ 32,792 Total $ 32,792 $ — $ — $ 32,792 As of September 30, 2018: Assets: Cash equivalents $ 43,741 $ — $ — $ 43,741 Total $ 43,741 $ — $ — $ 43,741 The Company’s cash equivalents as of September 30, 2019 , and 2018 , 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, 2019 , and 2018 . 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’s carrying value approximates fair value since the term loan bears interest at rates that fluctuate with the changes in the base rate or LIBOR as selected by the Company. The promissory note’s carrying value approximates its fair value as of September 30, 2019 . Besides the cash equivalents, the Company had $28.0 million and $13.0 million held in bank deposits as of September 30, 2019 , and 2018 , respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 12 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | Derivative Instruments and Hedging In fiscal year 2019, the Company entered into foreign currency forward contracts to hedge a portion of the forecasted foreign currency-denominated expenses incurred in the normal course of business. These contracts are designated as cash flows hedges. These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign exchange rate movements. The Company does not use any of the derivative instruments for trading or speculative purposes. For the year ended September 30, 2019, the impact of the hedging activities to the Consolidated Financial Statements was immaterial. The fair value of the outstanding non-deliverable foreign currency forward contracts was immaterial as of September 30, 2019. Notional Amounts of Derivative Contracts Derivative transactions are measured in terms of the notional amount but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged but is used only as the basis on which the value of foreign exchange payments under these contracts are determined. As of September 30, 2019, the notional amount of the Company's outstanding foreign currency forward contracts designated as cash flow hedges was approximately $9.4 million . |
Consolidated Balance Sheets Com
Consolidated Balance Sheets Components | 12 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheets Components | Consolidated Balance Sheets Components Components of property and equipment, and intangible assets consisted of the following: Property and Equipment As of September 30, 2019 2018 (in thousands) Computer software and equipment $ 7,644 $ 8,154 Furniture and fixtures 1,252 1,309 Leasehold improvements 1,276 1,251 Software development costs 9,416 9,416 Total property and equipment $ 19,588 $ 20,130 Less: Accumulated depreciation and amortization (18,545 ) (17,984 ) Total Property and equipment, net $ 1,043 $ 2,146 Depreciation expense including depreciation of assets under capital leases totaled $1.3 million , $2.7 million , and $3.5 million for the fiscal years ended September 30, 2019 , 2018 , and 2017 , respectively. Intangible Assets As of September 30, 2019 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (8,351 ) $ 3,732 Backlog 5 280 (280 ) — Customer relationships 3-10 36,599 (11,200 ) 25,399 Total $ 48,962 $ (19,831 ) $ 29,131 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 The Company recorded amortization expense related to the acquired intangible assets of $5.5 million , $5.6 million and $4.6 million during the fiscal years ended September 30, 2019 , 2018 and 2017 , respectively. Estimated future amortization expense for the intangible assets as of September 30, 2019 is as follows: Fiscal Years Ending September 30, (in thousands) 2020 $ 4,751 2021 4,687 2022 4,687 2023 3,840 2024 3,558 2025 and thereafter 7,608 Total future amortization $ 29,131 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan In connection with the Revitas acquisition, on January 5, 2017 , the Company entered into a financing agreement (the “Financing Agreement”) with Crystal Financial SPV, LLC and TC Lending, LLC for a $50.0 million term loan. 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 Company recorded a loss on debt extinguishment of $3.1 million in fiscal year 2018. Term Loan - Wells Fargo On May 4, 2018, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo, as administrative agent, and the lenders party thereto, for a term loan of $50.0 million , as well as a revolving line of credit for an amount up to $5.0 million . In part from the proceeds of this refinancing, the Company repaid in full the existing term loan under the Financing Agreement discussed above. The term loan under the Credit Agreement will mature on May 4, 2023 . As of September 30, 2019, the Company had not drawn down from the line of credit and had $5.0 million available. On August 12, 2019, the Company entered into an amendment to the Credit Agreement whereby the applicable margins were revised. At the Company’s election, the term loan under the Credit Agreement and the revolving line of credit will bear interest based upon the Company’s leverage ratio as defined in the Credit Agreement at either (i) a base rate plus applicable margin ranging from 1.5% to 3.5% or (ii) LIBOR plus applicable margin ranging from 2.5% to 4.5% . Interest is payable periodically, in arrears, at the end of each interest period the Company elects. For the first eight months of fiscal year 2019, the Company’s interest rate was at the LIBOR Rate plus 4.5% . For the last four months of fiscal year 2019, the Company’s interest rate was at the LIBOR Rate plus 3.5% . In addition, the Company is required to pay monthly in arrears an unused line fee ranging from 0.25% to 0.5% of the unused portion of the revolving line of credit based upon the Company’s leverage ratio. As a condition to entering into the Credit Agreement, the Company pledged substantially all of its assets in the United States. 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 or in the direct order of maturity, subject to certain limitations. However, 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 Company prepaid approximately $4.8 million of principal on January 2, 2019, and elected to apply the prepayment against the remaining principal installments in the direct order of maturity. On July 1, 2019, the Company made another prepayment of $5.0 million and such prepayment was applied against the remaining installments of principal on a pro rata basis. The remaining balance of the term loan is classified as long-term debt on the Consolidated Balance Sheets. The Credit Agreement contains customary representations and warranties, subject to limitations and exceptions, and customary covenants restricting our ability and our subsidiaries to: incur additional indebtedness; incur liens; engage in mergers or other fundamental changes; consummate acquisitions; sell certain property or assets; change the nature of their business; prepay or amend certain indebtedness; pay cash dividends, other distributions or repurchase our equity interests or our subsidiaries; make investments; or engage in certain transactions with affiliates. The Credit Agreement also contains certain financial covenants, including maintaining consolidated liquidity (cash in the United States plus revolving credit line availability) of at least $15.0 million , minimum levels of maintenance and subscription fee revenue and, if liquidity is less than $30.0 million for 90 consecutive days, a leverage ratio of not greater than 3.50 to 1.00. 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. The Company was in compliance with all covenant requirements as of September 30, 2019. Promissory Notes Also in connection with the Revitas acquisition, the Company incurred $10.0 million in debt in the form of two $5.0 million promissory notes with the sellers, one of which matured and was paid on July 5, 2018 and the other which will mature on January 5, 2020 . 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. The remaining promissory note bears interest at the rate of 3.0% 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 note of $5.0 million is subordinate to the term loan with Wells Fargo and is classified as short-term debt on the Consolidated Balance Sheets. As of September 30, 2019 , the term loan with Wells Fargo and the promissory note consisted of the following (in thousands): Principal $ 44,750 Unamortized debt discount and issuance costs (468 ) Net carrying amount $ 44,282 As of September 30, 2019, the carrying value 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 effective interest rates for the term loan with Wells Fargo and the promissory notes are 7.0% and 9.89% , respectively. The future scheduled principal payments for the term loan and promissory note as of September 30, 2019 were as follows (in thousands): Fiscal Year Amount 2020 $ 5,000 2021 2,609 2022 3,331 2023 33,810 Total $ 44,750 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company leases facilities under noncancelable operating leases. As of September 30, 2019 , future minimum payments under operating leases were as follows (in thousands): Contractual Payment Obligations Due by Period Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations (1) $ 6,500 $ 3,400 $ 2,600 $ 500 $ — (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, 2019 , 2018 , and 2017 , was $3.2 million , $3.4 million and $3.2 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, 2019 , and 2018 . 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. Legal Proceedings The Company is not currently a party to any pending material legal proceedings. From time to time, the Company may become involved in legal proceedings arising in the ordinary course of our business. Regardless of outcome, litigation can have an adverse impact on the Company 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, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2000 Stock Plan The 2000 Stock Plan (the “2000 Plan”) authorized the board of directors (the “Board”) 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 (the “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 adopted the 2013 Equity Incentive Plan (the “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 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 the Board. 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, 2019 , 4.0 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 2019 , 2018 , and 2017 . 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. The Company uses 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, 2016 806 $ 6.31 3.56 $ 4,103 Exercised (329) 4.06 Expired (24) 11.69 Balance at September 30, 2017 453 7.71 3.53 $ 3,281 Exercised (179) 8.61 Expired (47) 4.65 Balance at September 30, 2018 227 7.64 2.94 $ 1,861 Exercised (120) 6.87 Expired (7) 6.13 Balance at September 30, 2019 100 $ 8.66 2.23 $ 1,911 Options exercisable as of September 30, 2019 100 $ 8.66 2.23 $ 1,911 Options vested and expected to vest as of September 30, 2019 100 $ 8.66 2.23 $ 1,911 The intrinsic value of options exercised during 2019 , 2018 , and 2017 was $1.6 million , $1.5 million , and $2.5 million , respectively. Employee Stock Purchase Plan The 2013 Employee Stock Purchase Plan (the “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 during the periods presented: Fiscal Years Ended September 30, 2019 2018 2017 Risk-free interest rate 2.26 % 1.73 % 0.75 % Dividend yield — % — % — % Volatility 33 % 28 % 29 % Expected term (in years) 0.50 0.50 0.50 Fair value at grant date $ 5.17 $ 3.65 $ 2.71 Restricted Stock Units and Performance-based Restricted Stock Units During the years ending September 30, 2019 , 2018 , and 2017 , 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. For the performance-based restricted stock units granted in fiscal year 2019, under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 150% of the grant based on the achievement of the pre-established performance goals of the Company. These grants vest over a three -year period with one third vesting on the first anniversary of the vesting commencing date and quarterly thereafter. For the performance-based restricted stock units granted in fiscal years 2018 and 2017, 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 total shareholder return (“TSR”) relative to that of the Russell 3000 Index (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. Performance-based restricted stock units 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, 2019 , 0.4 million shares were reserved for any additional release resulting from over-achievement relating to performance-based restricted stock units. 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, 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 Granted 1,638 16.09 Released (1,213 ) 15.35 Forfeited (388 ) 14.91 Balance at September 30, 2019 2,350 $ 16.36 The total fair value of restricted stock and performance based restricted stock awards vested for the years ended September 30, 2019 , 2018 , and 2017 , was $22.2 million , $19.8 million , and $8.6 million , respectively. The following table summarizes certain information of the unvested awards as of September 30, 2019: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 23.7 $ 0.4 Weighted-average period to recognize (in years) 2.1 0.4 (1): Includes restricted stock units and performance-based restricted stock awards. Stock-based Compensation Stock-based compensation recorded in the Consolidated Statements of Operations is as follows: Fiscal Years Ended September 30, 2019 2018 2017 (in thousands) Cost of revenues: Subscription $ 2,468 $ 1,400 $ 965 Professional Services 2,894 1,256 1,057 Total stock-based compensation in cost of revenues 5,362 2,656 2,022 Operating expenses: Research and development 4,145 2,983 1,744 Sales and marketing 4,641 3,524 2,651 General and administrative 7,192 14,161 4,143 Total stock-based compensation in operating expenses 15,978 20,668 8,538 Total stock-based compensation $ 21,340 $ 23,324 $ 10,560 For the fiscal year ended September 30, 2019, the total stock-based compensation included $3.7 million related to bonus, which was recorded in the accrued employee compensation line item in the Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes are as follows: Fiscal Years Ended September 30, 2019 2018 2017 (in thousands) Domestic $ (17,057 ) $ (31,312 ) $ (43,753 ) Foreign (1,206 ) 3,078 921 Loss before taxes $ (18,263 ) $ (28,234 ) $ (42,832 ) The components of the provision for (benefit from) income taxes are as follows: Fiscal Years Ended September 30, 2019 2018 2017 (in thousands) Current Federal $ — $ (110 ) $ — State 11 36 37 Foreign 843 439 647 $ 854 $ 365 $ 684 Deferred Federal $ (2 ) $ (404 ) $ (3,436 ) State (19 ) 12 (533 ) Foreign 197 — — $ 176 $ (392 ) $ (3,969 ) Total provision for (benefit from) income taxes $ 1,030 $ (27 ) $ (3,285 ) Reconciliation of the statutory federal income tax to the Company’s effective tax is as follows: Fiscal Years Ended September 30, 2019 2018 2017 (in thousands) Tax at statutory federal rate $ (3,835 ) $ (6,854 ) $ (14,563 ) State tax, net of federal benefit 11 36 37 Permanent differences (275 ) 1,006 692 Stock-based compensation (1,061 ) (3,761 ) (596 ) Foreign tax rate differential 1,293 (308 ) 334 Change in valuation allowance 5,814 (13,785 ) 15,279 Research and development tax credits (974 ) (725 ) (656 ) Change in deferred tax liabilities (19 ) (392 ) (3,390 ) Change in federal statutory tax rate — 24,828 — Other 76 (72 ) (422 ) Total provision for (benefit from) income taxes $ 1,030 $ (27 ) $ (3,285 ) 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 impacted the Company in fiscal year 2018, including the change in the corporate income tax rate and the Toll Charge, while other provisions were effective starting at the beginning of fiscal year 2019. On December 22, 2017, the SEC staff issued 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 Company completed its final analysis and impact of the Tax Legislation during the first quarter of fiscal year 2019. There was no material impact to the Company’s Consolidated Financial Statements when the analysis was completed. On January 22, 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Legislation. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as a period cost are both acceptable methods, subject to an accounting policy election. The Company has elected to recognize any potential GILTI obligation as an expense in the period it is incurred. Prior to the first quarter of fiscal year 2019, the Company’s provision for income taxes did not include provisions for foreign withholding taxes associated with the repatriation of undistributed earnings of certain foreign subsidiaries that the Company intends to reinvest indefinitely. The current Tax Legislation generally allows companies to make distributions of non-U.S. earnings to the U.S. without incurring additional federal income tax. As a result, the Company expects to repatriate future foreign earnings in certain foreign jurisdictions over time. During the first quarter of fiscal year 2019, the Company repatriated $2.5 million of foreign subsidiary earnings to the U.S. in the form of cash and paid foreign withholding taxes of $0.5 million . As of September 30, 2019 , the Company recorded a deferred tax liability of $0.2 million for the additional non-U.S. taxes that are expected to be incurred related to the repatriation of $1.1 million in foreign subsidiary earnings. 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 2019 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, 2019 2018 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,168 $ 1,087 Accruals and other 5,889 3,098 Deferred revenue — 152 NOL carry-forward 59,705 58,245 Stock compensation 2,610 2,701 Research and development tax credits 13,622 11,895 Total deferred tax assets $ 82,994 $ 77,178 Valuation allowance (74,885 ) (67,879 ) Net deferred tax assets $ 8,109 $ 9,299 Deferred tax liabilities: Intangibles $ (7,588 ) $ (9,398 ) Capitalized contract acquisition costs (561 ) — Other (235 ) — Net deferred tax liabilities $ (275 ) $ (99 ) 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, 2019 , and 2018 , due to the uncertainty of realizing future tax benefits from its net operating loss carry-forwards and other deferred tax assets. The net increase in the total valuation allowance for the year ended September 30, 2019 was approximately $7.0 million . As of September 30, 2019 , the Company has federal and state NOL carry-forwards of approximately $239.5 million and $572.2 million , respectively. The federal NOL will begin expiring in 2021 and the state NOL will begin expiring in 2020 . As of September 30, 2019 , the Company had federal and state research and development credit carry forwards of approximately $7.0 million and $8.3 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 . As of September 30, 2019 , the Company had unrecognized tax benefits of approximately $4.0 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, 2019 , 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 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, 2019 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, 2019 2018 2017 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,469 $ 3,143 $ 3,310 Gross decrease based on tax positions during the prior period (4 ) (143 ) (584 ) Gross increase based on tax positions during the prior period 23 94 — Gross increase based on tax positions during the current period 473 375 417 Unrecognized tax benefits at the end of the period $ 3,961 $ 3,469 $ 3,143 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 2018 2017 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (19,293 ) $ (28,207 ) $ (39,547 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 32,232 30,370 28,649 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.60 ) $ (0.93 ) $ (1.38 ) 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, 2019 2018 2017 (in thousands) Stock options 96 164 414 Performance-based restricted stock units and restricted stock units 1,096 1,709 1,074 |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 30, 2019 | |
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 8% , 12% , and 11% of total revenues for the fiscal years ended September 30, 2019 , 2018 , and 2017 , 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, 2019 2018 (in thousands) United States $ 853 $ 1,809 India 190 337 Total property and equipment, net $ 1,043 $ 2,146 |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 30, 2019 | |
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 with maturing dates 18 months after the closing and 36 months after the closing, respectively. The Company paid the first promissory note in full in July 2018. 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 7, “Debt”, for additional information. Refer to Note 3 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2017, for a description of the purchase price allocation. 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, 2016. The following table sets forth the unaudited pro forma consolidated combined results of operations for the fiscal year ended September 30, 2017: (in thousands, except per share data) Revenue $ 140,227 Net loss (45,346 ) Net loss per shares-basic and diluted $ (1.58 ) |
Schedule II - Valuation and qua
Schedule II - Valuation and qualifying accounts | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 , 2018 , and 2017 , 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, 2019 $ 172 44 165 $ 51 For the Year Ended September 30, 2018 $ 85 172 85 $ 172 For the Year Ended September 30, 2017 $ — 85 — $ 85 Valuation allowance for deferred tax assets For the Year Ended September 30, 2019 $ 67,879 7,006 — $ 74,885 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
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 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 financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. Significant items subject to such estimates include revenue recognition, income taxes, stock-based compensation, and business combination. 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 under ASC Topic 606 | Revenue Recognition under ASC Topic 606 The Company adopted ASC Topic 606, Revenue from Contracts with Customers, on October 1, 2018, using the modified retrospective method. The Company derives revenues primarily from subscription revenues and professional services revenues and applies the following framework to recognize revenue: • Identification of the contract, or contracts, with a customer, • Identification of the performance obligations in the contract, • Determination of the transaction price, • Allocation of the transaction price to the performance obligations in the contract, and • Recognition of revenue when, or as, the Company satisfies a performance obligation. The Company enters into contracts with customers that can include various combinations of services which are generally distinct and accounted for as separate performance obligations. As a result, the contracts may contain multiple performance obligations. The Company determines whether the services are distinct based on whether the customer can benefit from the service on its own or together with other resources that are readily available and whether the Company’s commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The Company generally considers its cloud-based subscription offerings, maintenance and support on license arrangements, managed service support, professional services and training to be distinct performance obligations. Term-based licenses generally have two performance obligations: software licenses and software maintenance. The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Variable consideration, if any, is estimated and included in the transaction price if, in the Company’s judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract. The Company typically does not offer contractual rights of return or concessions. For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on its relative standalone selling price (“SSP”). SSP is estimated for each distinct performance obligation and judgment may be involved in the determination. The Company determines SSP using information that may include market conditions and other observable inputs. The Company evaluates SSP for its performance obligations on a quarterly basis. Revenue is recognized when control of these services is transferred to the customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for these services. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. Subscription revenue related to cloud-based solutions, maintenance and support, and managed service and support revenues are generally recognized ratably over the contractual term of the arrangement beginning on the date that our service is made available to the customer. These arrangements, in general, are for committed one to three -year terms. For term-based license contracts, the transaction price allocated to the software element is recognized when it is made available to the customer. The transaction price allocated to the related support and updates is recognized ratably over the contract term. Term-based license arrangements may include termination rights that limit the term of the arrangement to a month, quarter or year. Professional services revenues are generally recognized as the services are rendered for time and materials contracts or recognized using a proportional performance method as hours are incurred relative to total estimated hours for the engagement for fixed price contracts. The majority of the Company’s professional services contracts are on a time and materials basis. Revenue from training and customer-reimbursed expenses is recognized as the Company delivers these services. 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. Capitalized Contract Acquisition Costs under ASC Topic 606 The Company capitalizes incremental costs incurred to acquire contracts with customers, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. The Company incurs these costs in connection with both initial contracts and renewals. Such costs for renewals are not considered commensurate with those for initial contracts given the substantive difference in commission rates in proportion to their respective contract values. The costs in connection with initial contracts and renewals are deferred and amortized over an expected customer life of five years and over the renewal term, respectively, which corresponds to the period of benefit to the customer. The Company determined the period of benefit by considering the Company’s history of customer relationships, length of customer contracts, technological development and obsolescence, and other factors. The current and non-current portion of capitalized contract acquisition costs are included in other current assets and other assets on the Consolidated Balance Sheets. Amortization expense is included in sales and marketing expenses on the Consolidated Statements of Operations. |
Revenue Recognition under ASC Topic 605 | Revenue Recognition under ASC Topic 605 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 Revenues Cost of subscription revenues primarily consists of personnel-related costs including salary, bonus, and stock-based compensation as well as costs for royalties, facilities expense, amortization, depreciation, third-party contractors and cloud infrastructure costs. Cost of professional services revenues primarily consists of personnel-related costs including salary, bonus, and stock-based compensation as well as costs for third-party contractors and other expenses. |
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 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. |
Hedging | Hedging Cash Flow Hedging—Hedges of Forecasted Foreign Currency Operation Costs The Company’s customers typically pay in U.S. dollars; however, in foreign jurisdictions, the expenses are typically denominated in local currency. The Company may use foreign exchange forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts generally range from one month to one year in duration. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. The Company records changes in the fair value of cash flow hedges in accumulated other comprehensive loss in the Consolidated Balance Sheets, until the forecasted transaction occurs, at which point, the related gain or loss on the cash flow hedge is reclassified to the financial statement line item to which the derivative relates. In the event the underlying forecasted transaction does not occur or it becomes probable that it will not occur, the gain or loss on the related cash flow hedge is reclassified into earnings from accumulated other comprehensive loss. If the Company does not elect hedge accounting or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recognized immediately in the same financial statement line item to which the derivative relates. Hedge Effectiveness For foreign currency hedges designated as cash flow hedges, the Company elected to utilize the critical terms method to determine if the hedges are highly effective and thus, eligible for hedge accounting treatment. The Company evaluates the effectiveness of the foreign exchange contracts on a quarterly basis. |
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. |
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 $5.9 million and $3.6 million is recorded as unbilled receivables and is included in accounts receivables in the Consolidated Balance Sheets as of September 30, 2019 , and 2018 , 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 stated at cost less accumulated depreciation. Depreciation of property and equipment is calculated 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 the lease term or the 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 the Consolidated Statement of Operations. |
Business Combination | Business Combination The Company includes the results of operations of the businesses that are acquired as of the acquisition date. The Company allocates the purchase price of acquisitions to the assets acquired and liabilities assumed based on the estimated fair values. The excess of the purchase price over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are recognized separately from the business combination and are expensed as incurred. |
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. The Company conducted the annual impairment test of goodwill as of September 30, 2019 , and 2018 . For purposes of goodwill impairment testing, the Company has one reporting unit. The Company has 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 the Company determines 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. There have been no goodwill impairments during the periods presented. Intangible assets, consisting of developed technology, backlog, and customer relationships, are stated at cost 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 subscription revenue while amortization expense related to backlog and customer relationships is included in sales and marketing expenses. |
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. The Company did no t recognize any impairment charges on its long-lived assets during any periods 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. The Company’s cash equivalents consist of money market funds, which are classified within Level 1 of the fair value hierarchy because they are valued based on quoted prices in active markets for identical assets or liabilities. |
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 the 401(k) Plan, 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 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 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 fair value of RSUs is determined based on the closing quoted price of the Company’s common stock on the grant date. 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. The Company grants performance-based restricted stock units (“PB-RSUs”) to executives and leadership team and has determined no forfeiture rate would be applied to the PB-RSUs. PB-RSUs have vesting conditions either based on pre-established performance goals of the Company or the performance of the Company’s total shareholder return relative to that of the Russell 3000 Index. For the former, the fair value is determined based on the closing quoted price of the Company’s common stock on the grant date and the fair value is recognized using the graded-vesting attribution method over the requisite service period. For the latter, the Company uses a Monte Carlo simulation model to determine the fair value on the grant date and the fair value is recognized using the graded-vesting attribution method over the requisite service period. |
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 income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments and unrealized gain on cash flow hedges. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the FASB issued a new standard, ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), as amended, which superseded nearly all existing revenue recognition guidance. Under ASC 606, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services. ASC 606 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. On October 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of October 1, 2018 and recorded adjustments to decrease the accumulated deficit by approximately $10.4 million . Results for reporting periods beginning after October 1, 2018 are presented under ASC 606. Prior period amounts are not adjusted and continue to be reported under accounting standards in effect for those periods. ASC 606 primarily impacted the Company’s revenue recognition for on-premise solutions, which contained deliverables within the scope of ASC 985-605, Software-Revenue Recognition, by eliminating the requirement to have VSOE for undelivered elements, which accelerated the timing of revenue recognition. In addition, ASC 606 impacted the Company’s expenses as the guidance required 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 pattern of transfer to the customer of the goods or services to which the capitalized cost relates rather than expense them immediately as under the previous standard. The following table summarizes the cumulative effect of the changes from the adoption of ASC 606 on the Consolidated Balance Sheets as of October 1, 2018: (in thousands) Balance at September 30, 2018 Cumulative effect adjustments due to the adoption of ASC 606 Balance at October 1, 2018 Assets Accounts receivables, net $ 28,273 $ (579 ) $ 27,694 Other current assets 455 1,668 2,123 Other assets 1,064 2,142 3,206 Liabilities Accrued liabilities 3,182 600 3,782 Deferred revenue, current portion 52,176 (7,753 ) 44,423 Stockholders’ Equity Accumulated deficit (203,500 ) 10,384 (193,116 ) The cumulative effect adjustment on accounts receivable, net, in the Consolidated Balance Sheets is related to unbilled accounts receivable for which revenue is recognized in advance of billings, but the Company not have the unconditional right to the consideration. Under ASC 606, these amounts are reclassified from accounts receivable, net, to other current assets. The cumulative effect adjustment on other current assets and other assets line items in the Consolidated Balance Sheets is caused by the requirement in ASC 606 to capitalize incremental costs incurred to acquire contracts with customers. In prior periods, these costs were expensed as incurred under ASC 340. The cumulative effect adjustment included in accrued liabilities in the Consolidated Balance Sheets is related to reclassifying refundable amounts associated with customer contracts from deferred revenue under ASC 606. The cumulative effect adjustment on deferred revenue is primarily driven by ASC 606 which accelerated the timing of revenue recognition by eliminating the requirement to have VSOE for undelivered elements. The following table summarizes the effects of adopting ASC 606 on the Consolidated Balance Sheets as of September 30, 2019 : (in thousands) As Reported Adjustments As if presented under ASC 605 Assets Accounts receivables, net $ 26,953 $ 1,588 $ 28,541 Other current assets 4,039 (3,244 ) 795 Other assets 5,588 (4,513 ) 1,075 Liabilities Accrued liabilities 4,354 (277 ) 4,077 Deferred revenue, current portion 44,875 5,559 50,434 Stockholders’ Equity Accumulated deficit (212,409 ) (11,451 ) (223,860 ) The following tables summarize the effects of adopting ASC 606 on the Consolidated Statements of Operations for the year ended September 30, 2019 : Fiscal Year Ended September 30, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 105,219 $ (1,546 ) $ 103,673 Professional services 36,016 3,417 39,433 Total revenues 141,235 1,871 143,106 Cost of professional services revenues 30,912 (364 ) 30,548 Sales and marketing 32,894 3,302 36,196 Loss from operations (15,011 ) (1,067 ) (16,078 ) Net loss (19,293 ) (1,067 ) (20,360 ) Net loss per share - basic and diluted (0.60 ) (0.03 ) (0.63 ) The impact to the Consolidated Statements of Cash Flows for the year ended September 30, 2019 as a result of adopting ASC 606 was not significant. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging, requiring expanded hedge accounting for both non-financial and financial risk components and refining the measurement of hedge results to better reflect an entity’s hedging strategies. The updated standard also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The Company early adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on the Consolidated Financial Statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of certain cash receipts and cash payments. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The Company adopted this guidance beginning in the first quarter of fiscal year 2019 on a retrospective basis and it did not have a material impact on the Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (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 Company adopted this guidance beginning in the first quarter of fiscal year 2019 on a prospective basis. The adoption of this guidance did not have a material impact on the 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 equivalents 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 Company adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on the Consolidated Financial Statements. 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 Company adopted this guidance beginning in the first quarter of fiscal year 2019 and it did not have a material impact on the Consolidated Financial Statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). 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. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides an alternative modified transition method. Under this method, the cumulative-effect adjustment to the opening balance of retained earnings is recognized on the date of adoption with prior periods not restated. The guidance will be effective and the Company will adopt it beginning October 1, 2019 using the alternative modified transition method. The Company will elect the package of practical expedients permitted under the transition guidance, which allows the Company to carry forward its historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also elect to combine lease and non-lease components and to keep leases with an initial term of twelve months or less off the balance sheet and recognize the associated lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The Company estimates approximately $7 million will be recognized as total right-of-use assets and total lease liabilities on the Consolidated Balance Sheet as of October 1, 2019. Other than the right-of-use assets and the lease liabilities, the Company does not expect the new standard to 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, the Company will consider the 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 does not expect the new standard to have a material impact on its Consolidated Financial Statements . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 , and 2018 and of the Company’s total revenues for the fiscal years ended September 30, 2019 , 2018 , and 2017 , respectively: As of September 30, Accounts Receivable 2019 2018 Company A 12% less than 10% Company B less than 10% 10% Fiscal Years Ended September 30, Revenue 2019 2018 2017 Company C less than 10% 15% 11% |
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 |
Cumulative Effect of the Changes made to the Consolidated Financial Statements | The following table summarizes the effects of adopting ASC 606 on the Consolidated Balance Sheets as of September 30, 2019 : (in thousands) As Reported Adjustments As if presented under ASC 605 Assets Accounts receivables, net $ 26,953 $ 1,588 $ 28,541 Other current assets 4,039 (3,244 ) 795 Other assets 5,588 (4,513 ) 1,075 Liabilities Accrued liabilities 4,354 (277 ) 4,077 Deferred revenue, current portion 44,875 5,559 50,434 Stockholders’ Equity Accumulated deficit (212,409 ) (11,451 ) (223,860 ) The following tables summarize the effects of adopting ASC 606 on the Consolidated Statements of Operations for the year ended September 30, 2019 : Fiscal Year Ended September 30, 2019 (in thousands, except per share amounts) As Reported Adjustments As if presented under ASC 605 Revenues Subscription $ 105,219 $ (1,546 ) $ 103,673 Professional services 36,016 3,417 39,433 Total revenues 141,235 1,871 143,106 Cost of professional services revenues 30,912 (364 ) 30,548 Sales and marketing 32,894 3,302 36,196 Loss from operations (15,011 ) (1,067 ) (16,078 ) Net loss (19,293 ) (1,067 ) (20,360 ) Net loss per share - basic and diluted (0.60 ) (0.03 ) (0.63 ) The following table summarizes the cumulative effect of the changes from the adoption of ASC 606 on the Consolidated Balance Sheets as of October 1, 2018: (in thousands) Balance at September 30, 2018 Cumulative effect adjustments due to the adoption of ASC 606 Balance at October 1, 2018 Assets Accounts receivables, net $ 28,273 $ (579 ) $ 27,694 Other current assets 455 1,668 2,123 Other assets 1,064 2,142 3,206 Liabilities Accrued liabilities 3,182 600 3,782 Deferred revenue, current portion 52,176 (7,753 ) 44,423 Stockholders’ Equity Accumulated deficit (203,500 ) 10,384 (193,116 ) |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Customer Contract Balances | The following table reflects contract balances with customers (in thousands): As of October 1, 2018 (1) As of September 30, 2019 Change Accounts receivable, net $ 27,694 $ 26,953 $ (741 ) Contract asset 579 1,588 $ 1,009 Deferred revenue 44,854 45,385 $ 531 Capitalized contract acquisition costs 3,324 6,626 $ 3,302 (1) Includes cumulative effect adjustments made to these accounts on October 1, 2018 due to the adoption of ASC 606. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 , and 2018 , 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, 2019: Assets: Cash equivalents $ 32,792 $ — $ — $ 32,792 Total $ 32,792 $ — $ — $ 32,792 As of September 30, 2018: Assets: Cash equivalents $ 43,741 $ — $ — $ 43,741 Total $ 43,741 $ — $ — $ 43,741 |
Consolidated Balance Sheets C_2
Consolidated Balance Sheets Components (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment | Property and Equipment As of September 30, 2019 2018 (in thousands) Computer software and equipment $ 7,644 $ 8,154 Furniture and fixtures 1,252 1,309 Leasehold improvements 1,276 1,251 Software development costs 9,416 9,416 Total property and equipment $ 19,588 $ 20,130 Less: Accumulated depreciation and amortization (18,545 ) (17,984 ) Total Property and equipment, net $ 1,043 $ 2,146 |
Schedule of Intangible Assets | Intangible Assets As of September 30, 2019 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (8,351 ) $ 3,732 Backlog 5 280 (280 ) — Customer relationships 3-10 36,599 (11,200 ) 25,399 Total $ 48,962 $ (19,831 ) $ 29,131 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 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense for the intangible assets as of September 30, 2019 is as follows: Fiscal Years Ending September 30, (in thousands) 2020 $ 4,751 2021 4,687 2022 4,687 2023 3,840 2024 3,558 2025 and thereafter 7,608 Total future amortization $ 29,131 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Term Loan and Promissory Notes and Total Interest Expense Recognized | As of September 30, 2019 , the term loan with Wells Fargo and the promissory note consisted of the following (in thousands): Principal $ 44,750 Unamortized debt discount and issuance costs (468 ) Net carrying amount $ 44,282 |
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, 2019 were as follows (in thousands): Fiscal Year Amount 2020 $ 5,000 2021 2,609 2022 3,331 2023 33,810 Total $ 44,750 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 , future minimum payments under operating leases were as follows (in thousands): Contractual Payment Obligations Due by Period Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations (1) $ 6,500 $ 3,400 $ 2,600 $ 500 $ — (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, 2019 | |
Share-based Payment Arrangement [Abstract] | |
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, 2016 806 $ 6.31 3.56 $ 4,103 Exercised (329) 4.06 Expired (24) 11.69 Balance at September 30, 2017 453 7.71 3.53 $ 3,281 Exercised (179) 8.61 Expired (47) 4.65 Balance at September 30, 2018 227 7.64 2.94 $ 1,861 Exercised (120) 6.87 Expired (7) 6.13 Balance at September 30, 2019 100 $ 8.66 2.23 $ 1,911 Options exercisable as of September 30, 2019 100 $ 8.66 2.23 $ 1,911 Options vested and expected to vest as of September 30, 2019 100 $ 8.66 2.23 $ 1,911 |
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 during the periods presented: Fiscal Years Ended September 30, 2019 2018 2017 Risk-free interest rate 2.26 % 1.73 % 0.75 % Dividend yield — % — % — % Volatility 33 % 28 % 29 % Expected term (in years) 0.50 0.50 0.50 Fair value at grant date $ 5.17 $ 3.65 $ 2.71 |
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, 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 Granted 1,638 16.09 Released (1,213 ) 15.35 Forfeited (388 ) 14.91 Balance at September 30, 2019 2,350 $ 16.36 |
Summary of Unvested Awards | The following table summarizes certain information of the unvested awards as of September 30, 2019: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 23.7 $ 0.4 Weighted-average period to recognize (in years) 2.1 0.4 (1): Includes restricted stock units and performance-based restricted stock awards. |
Stock-based Compensation | Stock-based compensation recorded in the Consolidated Statements of Operations is as follows: Fiscal Years Ended September 30, 2019 2018 2017 (in thousands) Cost of revenues: Subscription $ 2,468 $ 1,400 $ 965 Professional Services 2,894 1,256 1,057 Total stock-based compensation in cost of revenues 5,362 2,656 2,022 Operating expenses: Research and development 4,145 2,983 1,744 Sales and marketing 4,641 3,524 2,651 General and administrative 7,192 14,161 4,143 Total stock-based compensation in operating expenses 15,978 20,668 8,538 Total stock-based compensation $ 21,340 $ 23,324 $ 10,560 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 2018 2017 (in thousands) Domestic $ (17,057 ) $ (31,312 ) $ (43,753 ) Foreign (1,206 ) 3,078 921 Loss before taxes $ (18,263 ) $ (28,234 ) $ (42,832 ) |
Components of Provision (Benefit) for Income Taxes | The components of the provision for (benefit from) income taxes are as follows: Fiscal Years Ended September 30, 2019 2018 2017 (in thousands) Current Federal $ — $ (110 ) $ — State 11 36 37 Foreign 843 439 647 $ 854 $ 365 $ 684 Deferred Federal $ (2 ) $ (404 ) $ (3,436 ) State (19 ) 12 (533 ) Foreign 197 — — $ 176 $ (392 ) $ (3,969 ) Total provision for (benefit from) income taxes $ 1,030 $ (27 ) $ (3,285 ) |
Reconciliation of Statutory Federal Income Tax to Company's Effective Tax | Reconciliation of the statutory federal income tax to the Company’s effective tax is as follows: Fiscal Years Ended September 30, 2019 2018 2017 (in thousands) Tax at statutory federal rate $ (3,835 ) $ (6,854 ) $ (14,563 ) State tax, net of federal benefit 11 36 37 Permanent differences (275 ) 1,006 692 Stock-based compensation (1,061 ) (3,761 ) (596 ) Foreign tax rate differential 1,293 (308 ) 334 Change in valuation allowance 5,814 (13,785 ) 15,279 Research and development tax credits (974 ) (725 ) (656 ) Change in deferred tax liabilities (19 ) (392 ) (3,390 ) Change in federal statutory tax rate — 24,828 — Other 76 (72 ) (422 ) Total provision for (benefit from) income taxes $ 1,030 $ (27 ) $ (3,285 ) |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: As of September 30, 2019 2018 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,168 $ 1,087 Accruals and other 5,889 3,098 Deferred revenue — 152 NOL carry-forward 59,705 58,245 Stock compensation 2,610 2,701 Research and development tax credits 13,622 11,895 Total deferred tax assets $ 82,994 $ 77,178 Valuation allowance (74,885 ) (67,879 ) Net deferred tax assets $ 8,109 $ 9,299 Deferred tax liabilities: Intangibles $ (7,588 ) $ (9,398 ) Capitalized contract acquisition costs (561 ) — Other (235 ) — Net deferred tax liabilities $ (275 ) $ (99 ) |
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, 2019 2018 2017 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,469 $ 3,143 $ 3,310 Gross decrease based on tax positions during the prior period (4 ) (143 ) (584 ) Gross increase based on tax positions during the prior period 23 94 — Gross increase based on tax positions during the current period 473 375 417 Unrecognized tax benefits at the end of the period $ 3,961 $ 3,469 $ 3,143 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | Fiscal Years Ended September 30, 2019 2018 2017 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (19,293 ) $ (28,207 ) $ (39,547 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 32,232 30,370 28,649 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.60 ) $ (0.93 ) $ (1.38 ) |
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, 2019 2018 2017 (in thousands) Stock options 96 164 414 Performance-based restricted stock units and restricted stock units 1,096 1,709 1,074 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 2018 (in thousands) United States $ 853 $ 1,809 India 190 337 Total property and equipment, net $ 1,043 $ 2,146 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
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, 2016. The following table sets forth the unaudited pro forma consolidated combined results of operations for the fiscal year ended September 30, 2017: (in thousands, except per share data) Revenue $ 140,227 Net loss (45,346 ) Net loss per shares-basic and diluted $ (1.58 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Estimates - Additional Information (Detail) | 12 Months Ended | ||||
Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 01, 2019USD ($) | Oct. 01, 2018USD ($) | |
Significant Accounting Policies and Estimates [Line Items] | |||||
Capitalized contracts amortization period | 5 years | ||||
Unbilled receivables recorded in balance sheets | $ 5,900,000 | $ 3,600,000 | |||
Goodwill impairments | 0 | 0 | $ 0 | ||
Impairment charges on long-lived assets | 0 | 0 | 0 | ||
Software development costs capitalized | 0 | 0 | 400,000 | ||
Advertising and promoting costs | 200,000 | 400,000 | 300,000 | ||
Employer contribution to employee benefit plan | 600,000 | 600,000 | $ 700,000 | ||
Deferred tax assets fully offset by valuation allowance | $ 82,994,000 | 77,178,000 | |||
Number of operating segment | Segment | 1 | ||||
Accumulated deficit | $ (212,409,000) | $ (203,500,000) | $ (193,116,000) | ||
ASU 2014-09 [Member] | |||||
Significant Accounting Policies and Estimates [Line Items] | |||||
Accumulated deficit | $ (11,451,000) | ||||
ASU 2014-09 [Member] | Cumulative effect adjustments due to the adoption of ASC 606 [Member] | |||||
Significant Accounting Policies and Estimates [Line Items] | |||||
Accumulated deficit | $ 10,384,000 | ||||
ASU 2016-02 [Member] | Subsequent event [Member] | |||||
Significant Accounting Policies and Estimates [Line Items] | |||||
Right-of-use asset | $ 7,000,000 | ||||
Lease liability | $ 7,000,000 | ||||
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 | ||||
Minimum [Member] | Foreign currency exchange contracts [Member] | Cash flow hedging [Member] | |||||
Significant Accounting Policies and Estimates [Line Items] | |||||
Foreign exchange contract terms | 1 month | ||||
Maximum [Member] | |||||
Significant Accounting Policies and Estimates [Line Items] | |||||
Estimated useful life | 10 years | ||||
Maximum [Member] | Foreign currency exchange contracts [Member] | Cash flow hedging [Member] | |||||
Significant Accounting Policies and Estimates [Line Items] | |||||
Foreign exchange contract terms | 1 year |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Company A [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 12.00% | ||
Company B [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 10.00% | ||
Company C [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, 2019 | |
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 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Estimates - Effects of Adopting ASC 606 on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Assets | |||
Accounts receivable, net | $ 26,953 | $ 27,694 | $ 28,273 |
Other current assets | 4,039 | 2,123 | 455 |
Other assets | 5,588 | 3,206 | 1,064 |
Liabilities | |||
Accrued liabilities | 4,354 | 3,782 | 3,182 |
Deferred revenue, current portion | 44,875 | 44,423 | 52,176 |
Stockholders’ Equity | |||
Accumulated deficit | (212,409) | (193,116) | (203,500) |
ASU 2014-09 [Member] | |||
Assets | |||
Accounts receivable, net | 1,588 | ||
Other current assets | (3,244) | ||
Other assets | (4,513) | ||
Liabilities | |||
Accrued liabilities | (277) | ||
Deferred revenue, current portion | 5,559 | ||
Stockholders’ Equity | |||
Accumulated deficit | (11,451) | ||
Balance under revenue guidance in effect before Topic 606 [Member] | |||
Assets | |||
Accounts receivable, net | 28,541 | 28,273 | |
Other current assets | 795 | 455 | |
Other assets | 1,075 | 1,064 | |
Liabilities | |||
Accrued liabilities | 4,077 | 3,182 | |
Deferred revenue, current portion | 50,434 | 52,176 | |
Stockholders’ Equity | |||
Accumulated deficit | $ (223,860) | $ (203,500) | |
Difference between revenue guidance in effect before and after Topic 606 [Member] | ASU 2014-09 [Member] | |||
Assets | |||
Accounts receivable, net | (579) | ||
Other current assets | 1,668 | ||
Other assets | 2,142 | ||
Liabilities | |||
Accrued liabilities | 600 | ||
Deferred revenue, current portion | (7,753) | ||
Stockholders’ Equity | |||
Accumulated deficit | $ 10,384 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Estimates - Effects of Adopting ASC 606 on Condensed Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 01, 2018 | |
Assets | ||||
Accounts receivable, net | $ 26,953 | $ 28,273 | $ 27,694 | |
Other current assets | 4,039 | 455 | 2,123 | |
Other assets | 5,588 | 1,064 | 3,206 | |
Liabilities | ||||
Accrued liabilities | 4,354 | 3,182 | 3,782 | |
Deferred revenue, current portion | 44,875 | 52,176 | 44,423 | |
Stockholders’ equity: | ||||
Accumulated deficit | (212,409) | (203,500) | $ (193,116) | |
Revenues: | ||||
Total revenues | 141,235 | 154,632 | $ 131,169 | |
Total cost of revenues | 66,130 | 65,334 | 61,096 | |
Sales and marketing | 32,894 | 35,482 | 41,339 | |
Loss from operations | (15,011) | (20,778) | (38,611) | |
Net loss | $ (19,293) | $ (28,207) | $ (39,547) | |
Net loss per share - basic and diluted (in dollars per share) | $ (0.60) | $ (0.93) | $ (1.38) | |
ASU 2014-09 [Member] | ||||
Assets | ||||
Accounts receivable, net | $ 1,588 | |||
Other current assets | (3,244) | |||
Other assets | (4,513) | |||
Liabilities | ||||
Accrued liabilities | (277) | |||
Deferred revenue, current portion | 5,559 | |||
Stockholders’ equity: | ||||
Accumulated deficit | (11,451) | |||
Revenues: | ||||
Total revenues | 1,871 | |||
Total cost of revenues | (364) | |||
Sales and marketing | 3,302 | |||
Loss from operations | (1,067) | |||
Net loss | $ (1,067) | |||
Net loss per share - basic and diluted (in dollars per share) | $ (0.03) | |||
As if presented under ASC 605 [Member] | ||||
Assets | ||||
Accounts receivable, net | $ 28,541 | $ 28,273 | ||
Other current assets | 795 | 455 | ||
Other assets | 1,075 | 1,064 | ||
Liabilities | ||||
Accrued liabilities | 4,077 | 3,182 | ||
Deferred revenue, current portion | 50,434 | 52,176 | ||
Stockholders’ equity: | ||||
Accumulated deficit | (223,860) | (203,500) | ||
Revenues: | ||||
Total revenues | 143,106 | |||
Total cost of revenues | 30,548 | |||
Sales and marketing | 36,196 | |||
Loss from operations | (16,078) | |||
Net loss | $ (20,360) | |||
Net loss per share - basic and diluted (in dollars per share) | $ (0.63) | |||
Subscription [Member] | ||||
Revenues: | ||||
Total revenues | $ 105,219 | 98,308 | $ 86,151 | |
Total cost of revenues | 35,218 | 37,820 | 38,172 | |
Subscription [Member] | ASU 2014-09 [Member] | ||||
Revenues: | ||||
Total revenues | (1,546) | |||
Subscription [Member] | As if presented under ASC 605 [Member] | ||||
Revenues: | ||||
Total revenues | 103,673 | |||
Professional services [Member] | ||||
Revenues: | ||||
Total revenues | 36,016 | 56,324 | 45,018 | |
Total cost of revenues | 30,912 | $ 27,514 | $ 22,924 | |
Professional services [Member] | ASU 2014-09 [Member] | ||||
Revenues: | ||||
Total revenues | 3,417 | |||
Professional services [Member] | As if presented under ASC 605 [Member] | ||||
Revenues: | ||||
Total revenues | $ 39,433 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Customer Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 01, 2018 | |
Accounts receivable, net | |||||
Accounts receivable, net | $ 26,953 | $ 26,953 | $ 28,273 | $ 27,694 | |
Change in accounts receivable, net | (860) | (741) | $ 3,555 | $ (1,420) | |
Contract asset | |||||
Contract asset | 1,588 | 1,588 | 579 | ||
Change in contract assets | 1,009 | ||||
Deferred revenue | |||||
Deferred revenue | 45,385 | 45,385 | 44,854 | ||
Change in deferred revenue | 531 | ||||
Capitalized contract acquisition costs | |||||
Capitalized contract acquisition costs | $ 6,626 | 6,626 | $ 3,324 | ||
Change in capitalized contract acquisition costs | $ 3,302 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized that was included in deferred revenue at beginning of period | $ 44,500,000 | ||
Capitalized contract acquisition costs, current portion | 2,100,000 | ||
Capitalized contract acquisition costs, non-current portion | 4,500,000 | ||
Amortization of capitalized contract acquisition costs | 1,781,000 | $ 0 | $ 0 |
Impairment loss related to contract balances | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations not satisfied or partially satisfied | $ 127.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 51.00% |
Remaining performance obligation, expected timing of satisfaction | 12 months |
Financial Instruments - Schedul
Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 32,792 | $ 43,741 |
Total | 32,792 | 43,741 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 32,792 | 43,741 |
Total | 32,792 | 43,741 |
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, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash held in bank deposits | $ 28,000,000 | $ 13,000,000 |
Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 0 | $ 0 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Details) $ in Millions | Sep. 30, 2019USD ($) |
Cash flow hedging [Member] | Foreign currency exchange contracts [Member] | |
Derivative [Line Items] | |
Notional amount | $ 9.4 |
Consolidated Balance Sheets C_3
Consolidated Balance Sheets Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 19,588 | $ 20,130 |
Less: Accumulated depreciation and amortization | (18,545) | (17,984) |
Total Property and equipment, net | 1,043 | 2,146 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,644 | 8,154 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,252 | 1,309 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,276 | 1,251 |
Software development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 9,416 | $ 9,416 |
Consolidated Balance Sheets C_4
Consolidated Balance Sheets Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation of property and equipment | $ 1.3 | $ 2.7 | $ 3.5 |
Amortization expense of intangible assets | $ 5.5 | $ 5.6 | $ 4.6 |
Consolidated Balance Sheets C_5
Consolidated Balance Sheets Components - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 48,962 | $ 48,962 |
Intangible assets, Accumulated Amortization | (19,831) | (14,365) |
Intangible assets, Net Carrying Amount | $ 29,131 | 34,597 |
Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 3 years | |
Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 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 | (8,351) | (6,448) |
Intangible assets, Net Carrying Amount | $ 3,732 | $ 5,635 |
Developed technology [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 5 years | 5 years |
Developed technology [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 6 years | 6 years |
Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 5 years | 5 years |
Intangible assets, Gross Carrying Amount | $ 280 | $ 280 |
Intangible assets, Accumulated Amortization | (280) | (275) |
Intangible assets, Net Carrying Amount | 0 | 5 |
Customer relationship [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | 36,599 | 36,599 |
Intangible assets, Accumulated Amortization | (11,200) | (7,642) |
Intangible assets, Net Carrying Amount | $ 25,399 | $ 28,957 |
Customer relationship [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 3 years | 3 years |
Customer relationship [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life | 10 years | 10 years |
Consolidated Balance Sheets C_6
Consolidated Balance Sheets Components - Schedule of Estimated Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | $ 4,751 | |
2021 | 4,687 | |
2022 | 4,687 | |
2023 | 3,840 | |
2024 | 3,558 | |
2025 and thereafter | 7,608 | |
Intangible assets, Net Carrying Amount | $ 29,131 | $ 34,597 |
Debt - Term Loan Additional Inf
Debt - Term Loan Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 05, 2017 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 0 | $ 3,142,000 | $ 0 | |
Financing Agreement [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 3,100,000 | |||
Financing Agreement [Member] | Revitas Inc. [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 50,000,000 |
Debt - Term Loan Wells Fargo Ad
Debt - Term Loan Wells Fargo Additional Information (Detail) - USD ($) | Aug. 12, 2019 | Jul. 01, 2019 | Jan. 02, 2019 | May 04, 2018 | Sep. 30, 2019 | May 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||||||||
Principal payment | $ 10,000,000 | $ 55,250,000 | $ 0 | ||||||
Credit Agreement [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Financial covenants | $ 15,000,000 | ||||||||
Credit Agreement [Member] | Minimum [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Credit Agreement [Member] | Minimum [Member] | LIBOR Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
Credit Agreement [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Consolidated liquidity | $ 30,000,000 | ||||||||
Consolidated liquidity term | 90 days | ||||||||
Minimum leverage ratio | 350.00% | ||||||||
Credit Agreement [Member] | Maximum [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 3.50% | ||||||||
Credit Agreement [Member] | Maximum [Member] | LIBOR Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 4.50% | ||||||||
Credit Agreement [Member] | Revolving Loan [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused line fee percentage | 0.25% | ||||||||
Credit Agreement [Member] | Revolving Loan [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused line fee percentage | 0.50% | ||||||||
Term Loan [Member] | Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal payment | $ 5,000,000 | $ 4,800,000 | |||||||
Wells Fargo Bank National Association [Member] | Credit Agreement [Member] | LIBOR Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 3.50% | 4.50% | |||||||
Wells Fargo Bank National Association [Member] | Credit Agreement [Member] | Revolving Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving line of credit, aggregate principal amount | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||||||
Wells Fargo Bank National Association [Member] | Term Loan [Member] | Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 50,000,000 |
Debt - Promissory Note (Detail)
Debt - Promissory Note (Detail) | Jul. 05, 2018USD ($) | Jan. 05, 2017USD ($)PromissoryNote | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Principal payment | $ 10,000,000 | $ 55,250,000 | $ 0 | ||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 7.00% | ||||
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 | ||||
Preliminary fair value of promissory note | $ 8,600,000 | ||||
Promissory notes, interest rate | 3.00% | ||||
Promissory Notes [Member] | Discount Rate [Member] | |||||
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, face amount | 5,000,000 | ||||
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] | |||||
Principal payment | $ 5,000,000 | ||||
Effective interest rate | 9.89% | ||||
Promissory note two [Member] | Revitas Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 5,000,000 |
Debt - Schedule of Term Loan an
Debt - Schedule of Term Loan and Promissory Notes (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Principal | $ 44,750 |
Unamortized debt discount and issuance costs | (468) |
Net carrying amount | $ 44,282 |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments for Term Loan and Promissory Notes (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Fiscal Year: | |
2020 | $ 5,000 |
2021 | 2,609 |
2022 | 3,331 |
2023 | 33,810 |
Total | $ 44,750 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments under Operating Leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease obligations due, Total | $ 6,500 |
Operating lease obligations due, Less than 1 Year | 3,400 |
Operating lease obligations due, 1 to 3 Years | 2,600 |
Operating lease obligations, 3 to 5 Years | 500 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense under noncancelable operating leases | $ 3.2 | $ 3.4 | $ 3.2 |
Stock-Based Compensation - 2000
Stock-Based Compensation - 2000 Stock Plan (Details) - 2000 Stock Plan [Member] | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 18, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options, granted (in shares) | 0 | 0 | 0 | |
Number of shares available for future stock awards (in shares) | 4,000,000 | |||
2013 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
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 Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Number of stock options, granted (in shares) | 0 | 0 | 0 |
Intrinsic value of options exercised | $ 1.6 | $ 1.5 | $ 2.5 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Shares (in thousands) | ||||
Balance at beginning of period (in shares) | 227 | 453 | 806 | |
Exercised (in shares) | (120) | (179) | (329) | |
Expired (in shares) | (7) | (47) | (24) | |
Balance at end of period (in shares) | 100 | 227 | 453 | 806 |
Options exercisable as of end of period (in shares) | 100 | |||
Options vested and expected to vest at end of period (in shares) | 100 | |||
Weighted Average Exercised Price | ||||
Balance at beginning of period (in dollars per share) | $ 7.64 | $ 7.71 | $ 6.31 | |
Exercised (in dollars per share) | 6.87 | 8.61 | 4.06 | |
Expired (in dollars per share) | 6.13 | 4.65 | 11.69 | |
Balance at end of period (in dollars per share) | 8.66 | $ 7.64 | $ 7.71 | $ 6.31 |
Options exercisable at end of period (in dollars per share) | 8.66 | |||
Options vested and expected to vest (in dollars per share) | $ 8.66 | |||
Weighted Average Remaining Contract Term (in years) | ||||
Weighted Average Remaining Contract Term (in Years). Shares outstanding | 2 years 2 months 23 days | 2 years 11 months 8 days | 3 years 6 months 10 days | 3 years 6 months 22 days |
Weighted Average Remaining Contract Term (in Years), Options exercisable at end of period | 2 years 2 months 23 days | |||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest at end of period | 2 years 2 months 23 days | |||
Aggregate Intrinsic Value | $ 1,911 | $ 1,861 | $ 3,281 | $ 4,103 |
Aggregate Intrinsic Value, Options exercisable | 1,911 | |||
Aggregate Intrinsic Value, Options vested and expected to vest | $ 1,911 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - ESPP [Member] | Aug. 20, 2019 | Feb. 20, 2019 | Sep. 30, 2019 |
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% | ||
ESPP offering period | 6 months | 6 months |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of ESPP (Detail) - ESPP [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.26% | 1.73% | 0.75% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 33.00% | 28.00% | 29.00% |
Expected term (in years) | 6 months | 6 months | 6 months |
Fair value at grant date (in dollars per share) | $ 5.17 | $ 3.65 | $ 2.71 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units and Performance-based Restricted Stock Units Narrative (Details) - Performance-based Restricted Stock Units [Member] - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards, vesting period | 3 years | 3 years | 3 years |
TSR index period | 3 years | 3 years | |
TSR index, catch-up provision period | 2 years | 2 years | |
Awards, expiration period | 10 years | ||
Approved stock reserved for future issuance (in shares) | 0.4 | ||
Fair value of restricted stock awards vested | $ 22.2 | $ 19.8 | $ 8.6 |
Tranche one [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares vest under terms of grants | 33.33% | 50.00% | 50.00% |
Tranche two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares vest under terms of grants | 33.33% | 50.00% | 50.00% |
Tranche three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares vest under terms of grants | 33.33% | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares released under terms of grants | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares released under terms of grants | 150.00% | 250.00% | 250.00% |
Stock-Based Compensation - Su_2
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted Stock Units Outstanding (in thousands) | |||
Balance at beginning of period (in shares) | 2,313 | 2,917 | 3,117 |
Granted (in shares) | 1,638 | 1,355 | 1,817 |
Released (in shares) | (1,213) | (1,137) | (813) |
Forfeited (in shares) | (388) | (822) | (1,204) |
Balance at end of period (in shares) | 2,350 | 2,313 | 2,917 |
Weighted Average Grant Date Fair Value | |||
Balance at beginning of period (in dollars per share) | $ 15.78 | $ 12.55 | $ 11.81 |
Granted (in dollars per share) | 16.09 | 22.92 | 11.67 |
Released (in dollars per share) | 15.35 | 13.99 | 10.58 |
Forfeited (in dollars per share) | 14.91 | 18.57 | 10.65 |
Balance at end of period (in dollars per share) | $ 16.36 | $ 15.78 | $ 12.55 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Unvested Awards (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total compensation cost for unvested | $ 23.7 |
Weighted-average period to recognize | 2 years 1 month 10 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_4
Stock-Based Compensation - Summary of Allocated Stock-based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 21,340 | $ 23,324 | $ 10,560 |
Accrued bonuses | 3,700 | ||
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 5,362 | 2,656 | 2,022 |
Cost of revenues [Member] | Subscription [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,468 | 1,400 | 965 |
Cost of revenues [Member] | Professional services [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,894 | 1,256 | 1,057 |
Operating expenses, Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 4,145 | 2,983 | 1,744 |
Operating expenses, Sales and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 4,641 | 3,524 | 2,651 |
Operating expenses, General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 7,192 | 14,161 | 4,143 |
Operating expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 15,978 | $ 20,668 | $ 8,538 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (17,057) | $ (31,312) | $ (43,753) |
Foreign | (1,206) | 3,078 | 921 |
Loss before income taxes | $ (18,263) | $ (28,234) | $ (42,832) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Current | |||
Federal | $ 0 | $ (110) | $ 0 |
State | 11 | 36 | 37 |
Foreign | 843 | 439 | 647 |
Total current | 854 | 365 | 684 |
Deferred | |||
Federal | (2) | (404) | (3,436) |
State | (19) | 12 | (533) |
Foreign | 197 | 0 | 0 |
Total deferred | 176 | (392) | (3,969) |
Total provision for (benefit from) income taxes | $ 1,030 | $ (27) | $ (3,285) |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | $ (3,835) | $ (6,854) | $ (14,563) |
State tax, net of federal benefit | 11 | 36 | 37 |
Permanent differences | (275) | 1,006 | 692 |
Stock-based compensation | (1,061) | (3,761) | (596) |
Foreign tax rate differential | 1,293 | (308) | 334 |
Change in valuation allowance | 5,814 | (13,785) | 15,279 |
Research and development tax credits | (974) | (725) | (656) |
Change in deferred tax liabilities | (19) | (392) | (3,390) |
Change in federal statutory tax rate | 0 | 24,828 | 0 |
Other | 76 | (72) | (422) |
Total provision for (benefit from) income taxes | $ 1,030 | $ (27) | $ (3,285) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Line Items] | |||||
Foreign subsidiary earnings repatriated | $ 2,500 | ||||
Foreign withholding tax paid | $ 500 | ||||
Deferred tax liability, additional non-U.S. taxes expected to be incurred | $ 200 | ||||
Expected foreign subsidiary earnings repatriated | 1,100 | ||||
Increase in total valuation allowance | 7,000 | ||||
Unrecognized tax benefits | 3,961 | $ 3,469 | $ 3,143 | $ 3,310 | |
Uncertain tax positions | 100 | ||||
Federal [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss (NOL) carry forwards | 239,500 | ||||
Federal [Member] | Research Tax Credit Carryforward [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Research credit carry forwards | 7,000 | ||||
State [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss (NOL) carry forwards | 572,200 | ||||
State [Member] | Research Tax Credit Carryforward [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Research credit carry forwards | $ 8,300 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets: | ||
Depreciation and amortization | $ 1,168 | $ 1,087 |
Accruals and other | 5,889 | 3,098 |
Deferred revenue | 0 | 152 |
NOL carry-forward | 59,705 | 58,245 |
Stock compensation | 2,610 | 2,701 |
Research and development tax credits | 13,622 | 11,895 |
Total deferred tax assets | 82,994 | 77,178 |
Valuation allowance | (74,885) | (67,879) |
Net deferred tax assets | 8,109 | 9,299 |
Deferred tax liabilities: | ||
Intangibles | (7,588) | (9,398) |
Capitalized contract acquisition costs | (561) | 0 |
Other | (235) | 0 |
Net deferred tax liabilities | $ (275) | $ (99) |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the period | $ 3,469 | $ 3,143 | $ 3,310 |
Gross decrease based on tax positions during the prior period | (4) | (143) | (584) |
Gross increase based on tax positions during the prior period | 23 | 94 | 0 |
Gross increase based on tax positions during the current period | 473 | 375 | 417 |
Unrecognized tax benefits at the end of the period | $ 3,961 | $ 3,469 | $ 3,143 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net loss per share attributable to common stockholders: | |||
Net loss attributable to common stockholders | $ (19,293) | $ (28,207) | $ (39,547) |
Denominator, Basic and diluted: | |||
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders (in shares) | 32,232 | 30,370 | 28,649 |
Net Loss per Share Attributable to Common Stockholders: | |||
Basic and diluted (in dollars per share) | $ (0.60) | $ (0.93) | $ (1.38) |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
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) | 96 | 164 | 414 |
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) | 1,096 | 1,709 | 1,074 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2019SegmentActivity | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of business activity | Activity | 1 | ||
Other [Member] | Geographic concentration risk [Member] | Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers outside United States | 8.00% | 12.00% | 11.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 1,043 | $ 2,146 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | 853 | 1,809 |
India [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, net | $ 190 | $ 337 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) | Jan. 05, 2017USD ($)PromissoryNote | Sep. 30, 2017USD ($) |
Promissory note one [Member] | ||
Business Acquisition [Line Items] | ||
Debt instrument, face amount | $ 5,000,000 | |
Revitas Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of equity interests acquired | 100.00% | |
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 | |
Revitas Inc. [Member] | Promissory note one [Member] | ||
Business Acquisition [Line Items] | ||
Debt instrument, face amount | $ 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 | |
Maturity period | 36 months | |
Revitas Inc. [Member] | Term Loan [Member] | ||
Business Acquisition [Line Items] | ||
Debt instrument, face amount | $ 50,000,000 | |
Maturity period | 5 years |
Business Combinations - Schedul
Business Combinations - Schedule of Unaudited Pro Forma Consolidated Combined Results of Operations (Detail) - Revitas Inc. [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ 140,227 |
Net loss | $ (45,346) |
Net loss per shares-basic and diluted (in dollars per share) | $ / shares | $ (1.58) |
Schedule II - Valuation and q_2
Schedule II - Valuation and qualifying accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for doubtful receivables [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 172 | $ 85 | $ 0 |
Additions Charges to Costs and Expenses | 44 | 172 | 85 |
Write-offs and Deductions | 165 | 85 | 0 |
Balance at End of Period | 51 | 172 | 85 |
Valuation allowance for deferred tax assets [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 67,879 | 78,003 | 56,113 |
Additions Charges to Costs and Expenses | 7,006 | 10,708 | 21,890 |
Write-offs and Deductions | 0 | 20,832 | 0 |
Balance at End of Period | $ 74,885 | $ 67,879 | $ 78,003 |
Uncategorized Items - modn-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 10,384,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 10,384,000 |