Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 06, 2020 | Mar. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-35840 | ||
Entity Registrant Name | Model N, Inc. | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 77-0528806 | ||
Entity Address, Street Address | 777 Mariners Island Boulevard, | ||
Entity Address, Suite | Suite 300 | ||
Entity Address, City | San Mateo, | ||
Entity Address, State | CA | ||
Entity Address, Postal Zip Code | 94404 | ||
City Area Code | 650 | ||
Local Phone Number | 610-4600 | ||
Title of each class | Common Stock, par value $0.00015 per share | ||
Trading Symbol | MODN | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Filing Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 749 | ||
Entity Common Stock, Shares Outstanding | 34,821,279 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Shareholders, scheduled to be held on February 19, 2021, are incorporated by reference into Part III of this Report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001118417 | ||
Current Fiscal Year End Date | --09-30 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 200,491 | $ 60,780 |
Accounts receivable, net of allowance for doubtful accounts of $47 and $51 as of September 30, 2020, and 2019, respectively | 35,796 | 26,953 |
Prepaid expenses | 2,797 | 2,776 |
Other current assets | 7,314 | 4,039 |
Total current assets | 246,398 | 94,548 |
Property and equipment, net | 1,034 | 1,043 |
Operating lease right-of-use assets | 3,332 | |
Goodwill | 39,283 | 39,283 |
Intangible assets, net | 24,380 | 29,131 |
Other assets | 5,863 | 5,588 |
Total assets | 320,290 | 169,593 |
Current liabilities: | ||
Accounts payable | 3,009 | 2,302 |
Accrued employee compensation | 17,056 | 19,906 |
Accrued liabilities | 5,237 | 4,354 |
Operating lease liabilities, current portion | 1,460 | |
Deferred revenue, current portion | 50,904 | 44,875 |
Long-term debt, current portion | 0 | 4,911 |
Total current liabilities | 77,666 | 76,348 |
Long-term debt | 114,438 | 39,371 |
Operating lease liabilities, less current portion | 2,067 | |
Other long-term liabilities | 1,448 | 1,152 |
Total liabilities | 195,619 | 116,871 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 34,821 and 32,995 shares issued and outstanding at September 30, 2020 and September 30, 2019, respectively | 5 | 5 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 351,952 | 266,295 |
Accumulated other comprehensive loss | (1,213) | (1,169) |
Accumulated deficit | (226,073) | (212,409) |
Total stockholders’ equity | 124,671 | 52,722 |
Total liabilities and stockholders’ equity | $ 320,290 | $ 169,593 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 47 | $ 51 |
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) | 34,821,000 | 32,995,000 |
Common Stock, shares outstanding (in shares) | 34,821,000 | 32,995,000 |
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 | |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | |||
Total revenues | $ 161,056 | $ 141,235 | $ 154,632 |
Cost of revenues: | |||
Total cost of revenues | 65,496 | 66,130 | 65,334 |
Gross profit | 95,560 | 75,105 | 89,298 |
Operating expenses: | |||
Research and development | 34,361 | 30,009 | 32,416 |
Sales and marketing | 38,979 | 32,894 | 35,482 |
General and administrative | 28,826 | 27,213 | 42,178 |
Total operating expenses | 102,166 | 90,116 | 110,076 |
Loss from operations | (6,606) | (15,011) | (20,778) |
Interest expense, net | 6,322 | 2,933 | 8,178 |
Other expenses (income), net | (76) | 319 | (722) |
Loss before income taxes | (12,852) | (18,263) | (28,234) |
Provision for (benefit from) income taxes | 812 | 1,030 | (27) |
Net loss | $ (13,664) | $ (19,293) | $ (28,207) |
Net loss per share attributable to common stockholders: | |||
Basic and diluted (in dollars per share) | $ (0.40) | $ (0.60) | $ (0.93) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | |||
Basic and diluted (in shares) | 34,008 | 32,232 | 30,370 |
Subscription | |||
Revenues: | |||
Total revenues | $ 116,184 | $ 105,219 | $ 98,308 |
Cost of revenues: | |||
Total cost of revenues | 34,461 | 35,218 | 37,820 |
Professional services | |||
Revenues: | |||
Total revenues | 44,872 | 36,016 | 56,324 |
Cost of revenues: | |||
Total cost of revenues | $ 31,035 | $ 30,912 | $ 27,514 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (13,664) | $ (19,293) | $ (28,207) |
Other comprehensive income (loss), net: | |||
Unrealized gain on cash flow hedges | 33 | 5 | 0 |
Foreign currency translation gain (loss) | (77) | 111 | (783) |
Total comprehensive loss | $ (13,708) | $ (19,177) | $ (28,990) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Adjustments | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Accumulated DeficitAdjustments |
Beginning balance at Sep. 30, 2017 | $ 41,261 | $ 4 | $ 217,052 | $ (502) | $ (175,293) | ||
Beginning balance (in shares) at Sep. 30, 2017 | 29,323 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of common stock upon exercise of stock options | $ 1,546 | 1,546 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 179 | 180 | |||||
Issuance of common stock upon release of restricted stock units | $ 0 | $ 1 | (1) | ||||
Issuance of common stock upon release of restricted stock units (in shares) | 1,709 | ||||||
Issuance of common stock under stock purchase plans | 2,893 | 2,893 | |||||
Issuance of common stock under stock purchase plans (in shares) | 232 | ||||||
Stock-based compensation | 23,324 | 23,324 | |||||
Other comprehensive income (loss) | (783) | (783) | |||||
Net loss | (28,207) | (28,207) | |||||
Ending balance at Sep. 30, 2018 | $ 40,034 | $ 10,384 | $ 5 | 244,814 | (1,285) | (203,500) | $ 10,384 |
Ending balance (in shares) at Sep. 30, 2018 | 31,444 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201409Member | ||||||
Issuance of common stock upon exercise of stock options | $ 822 | 822 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 120 | 120 | |||||
Issuance of common stock upon release of restricted stock units | $ 0 | 0 | |||||
Issuance of common stock upon release of restricted stock units (in shares) | 1,213 | ||||||
Issuance of common stock under stock purchase plans | $ 3,048 | 3,048 | |||||
Issuance of common stock under stock purchase plans (in shares) | 218 | ||||||
Stock-based compensation | 17,611 | 17,611 | |||||
Other comprehensive income (loss) | 116 | 116 | |||||
Net loss | (19,293) | (19,293) | |||||
Ending balance at Sep. 30, 2019 | 52,722 | $ 5 | 266,295 | (1,169) | (212,409) | ||
Ending balance (in shares) at Sep. 30, 2019 | 32,995 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of common stock upon exercise of stock options | $ 503 | 503 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 65 | 65 | |||||
Issuance of common stock upon release of restricted stock units | $ 0 | $ 0 | 0 | ||||
Issuance of common stock upon release of restricted stock units (in shares) | 1,613 | ||||||
Issuance of common stock under stock purchase plans | 3,731 | 3,731 | |||||
Issuance of common stock under stock purchase plans (in shares) | 148 | ||||||
Stock-based compensation | 26,196 | 26,196 | |||||
Equity component of convertible senior notes, net of issuance costs | 55,227 | 55,227 | |||||
Other comprehensive income (loss) | (44) | (44) | |||||
Net loss | (13,664) | (13,664) | |||||
Ending balance at Sep. 30, 2020 | $ 124,671 | $ 5 | $ 351,952 | $ (1,213) | $ (226,073) | ||
Ending balance (in shares) at Sep. 30, 2020 | 34,821 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201602Member |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Parentheticals) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
APIC adjustments for restricted stock | $ 3,700 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (13,664) | $ (19,293) | $ (28,207) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 5,498 | 6,790 | 8,299 |
Stock-based compensation | 22,500 | 21,340 | 23,324 |
Amortization of debt discount and issuance costs | 3,405 | 579 | 800 |
Deferred income taxes | 389 | 176 | (392) |
Amortization of capitalized contract acquisition costs | 2,459 | 1,781 | 0 |
Loss on extinguishment | 319 | 0 | 3,142 |
Other non-cash charges | (4) | (121) | 137 |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | (8,836) | 860 | (3,555) |
Prepaid expenses and other assets | (3,091) | (5,158) | (960) |
Deferred cost of implementation services | 0 | 0 | 486 |
Accounts payable | 544 | 692 | (1,434) |
Accrued employee compensation | 927 | 2,015 | (687) |
Other accrued and long-term liabilities | (2,433) | 240 | (1,622) |
Deferred revenue | 6,393 | 549 | 3,192 |
Net cash provided by operating activities | 14,406 | 10,450 | 2,523 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (579) | (280) | (252) |
Net cash used in investing activities | (579) | (280) | (252) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options and issuance of employee stock purchase plan | 4,234 | 3,870 | 4,439 |
Proceeds from debt, net of issuance costs | 166,409 | 0 | 49,308 |
Principal payments on loan | (44,750) | (10,000) | (55,250) |
Early payment penalty | 0 | 0 | (1,500) |
Net cash provided by (used in) financing activities | 125,893 | (6,130) | (3,003) |
Effect of exchange rate changes on cash and cash equivalents | (9) | 36 | (122) |
Net increase (decrease) in cash and cash equivalents | 139,711 | 4,076 | (854) |
Cash and cash equivalents | |||
Beginning of period | 60,780 | 56,704 | 57,558 |
End of period | 200,491 | 60,780 | 56,704 |
Supplemental Disclosure of Cash Flow Data: | |||
Cash paid for income taxes | 488 | 993 | 622 |
Cash paid for interest | $ 1,433 | $ 3,225 | $ 4,181 |
The Company
The Company | 12 Months Ended |
Sep. 30, 2020 | |
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 2020, for example, refer to the fiscal year ended September 30, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Sep. 30, 2020 | |
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 Prior to fiscal year 2019, 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 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, liability and equity allocation of convertible senior notes, income taxes, stock-based compensation, and business combinations. 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. COVID-19 The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. At this point, the extent to which COVID-19 may impact the Company’s financial condition or results of operations is uncertain. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require us to update our estimates, judgments or revise the carrying value of our assets or liabilities. The estimates discussed above may change, as new events occur and additional information is obtained, and are recognized in the Consolidated Financial Statements as soon as they become known. 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 five step revenue recognition framework to recognize revenue from contracts with customers: • 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 products and 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 products and services are distinct based on whether the customer can benefit from the product or 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 products and services 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. The Company applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. 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 products and 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 products and 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 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 US Treasury securities 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, and US Treasury securities. 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 as of September 30, 2020, and 2019 and of the Company’s total revenues for the fiscal years ended September 30, 2020, 2019, and 2018, respectively: As of September 30, Accounts Receivable 2020 2019 Company A 12% 12% Company B 12% less than 10% Fiscal Years Ended September 30, Revenue 2020 2019 2018 Company C less than 10% less than 10% 15% 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 $2.0 million and $5.9 million is recorded as unbilled receivables and is included in accounts receivables in the Consolidated Balance Sheets as of September 30, 2020, and 2019, 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. Leases The Company determines if an arrangement contains a lease at inception. The Company has entered into operating lease agreements primarily for offices. The Company does not have any finance leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make payments arising from the lease. Operating leases are included in “Operating lease right-of-use assets”, “Operating lease liabilities, current portion”, and “Operating lease liabilities, less current portion” in the consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized at the present value of the future lease payments at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company’s lease arrangements may contain lease and non-lease components. The Company elected to combine lease and non-lease components. In determining the present value of the future lease payments, the Company considers only payments that are fixed and determinable at commencement date, including non-lease components. Variable components such as utilities and maintenance costs are expensed as incurred. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. In determining the appropriate incremental borrowing rate, the Company considers information including, but not limited to, its credit rating, the lease term, and the economic environment where the leased asset is located. Lease terms include periods under options to extend or terminate the lease when the Company is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company also elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for leases with a term of 12 months or less. 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, 2020, and 2019. 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 the single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. When performing the goodwill impairment test, the Company compares the fair value of the single reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the fair value with goodwill written down accordingly. 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 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 not 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. 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. The Company’s cash equivalents consist of money market funds and US Treasury securities, 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. Convertible Senior Notes In May 2020, the Company issued $172.5 million aggregate principal amount of 2.625% convertible senior notes. The Company separates its convertible senior notes (the “Notes”) into liability and equity components. The carrying amount of the liability component is calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option is determined by deducting the fair value of the liability component from the principal amount of the Notes. The excess of the principal amount of the Notes over the carrying amount of the liability component (“debt discount”) is amortized to interest expense at an effective interest rate over the contractual term of the Notes. The equity component is recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocates the issuance costs to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity. Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. The Company incurred $0.2 million, $0.2 million, and $0.4 million in advertising and promotions costs during the fiscal years ended September 30, 2020, 2019, and 2018, 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 for each of the years ended September 30, 2020, 2019, and 2018. Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to the 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-Schol |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Sep. 30, 2020 | |
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 14, Geographic Information, for information on revenue by geography. Customer Contract Balances The following table reflects balances related to contracts with customers (in thousands): As of September 30, 2020 As of September 30, 2019 Accounts receivable, net $ 35,796 $ 26,953 Contract asset 4,482 1,588 Deferred revenue 51,786 45,385 Capitalized contract acquisition costs 7,506 6,626 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 receivable amounts. 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 years ended September 30, 2020, and 2019, the Company recognized $44.7 million and $44.5 million of revenue that was included in the deferred revenue balance at the beginning of the periods. Capitalized Contract Acquisition Costs As of September 30, 2020, the current and non-current portions of capitalized contract acquisition costs were $2.3 million and $5.2 million, respectively. The Company amortized $2.5 million and $1.8 million of contract acquisition costs during the years ended September 30, 2020, and 2019, respectively. For the years ended September 30, 2020, and 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, 2020, and 2019. 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, 2020, the aggregate amount of the transaction price allocated to performance obligations either unsatisfied or partially unsatisfied was $164.5 million, 53% of which the Company expects to recognize as revenue over the next 12 months and the remainder thereafter. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases facilities under noncancelable operating leases with lease terms between three years and 10 years. Certain leases include options to extend or terminate the lease. The Company factored into the determination of lease payments the options that it is reasonably certain to exercise. Operating lease costs were $3.2 million for the year ended September 30, 2020. Short-term lease costs, variable lease costs, and sublease income were immaterial for the year ended September 30, 2020. Rent expenses recognized prior to the adoption of Topic 842 were $3.2 million and $3.4 million during the fiscal years ended September 30, 2019, and 2018, respectively. Cash flow information related to operating leases is as follows (in thousands): Fiscal Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 3,545 Operating lease ROU assets obtained in exchange for new operating lease liabilities (375) The Company early terminated certain leases during the three months ended June 30, 2020 which resulted in a reduction of ROU assets and operating lease liabilities of $1.0 million. The weighted-average remaining lease term is 4.0 years and the weighted-average discount rate is 5.5% as of September 30, 2020. Maturities of operating lease liabilities as of September 30, 2020 are as follows (in thousands): Fiscal Year 2021 1,599 2022 762 2023 442 2024 350 2025 234 2026 and thereafter 535 Total operating lease payments 3,922 Less imputed interest 395 Total operating lease liabilities $ 3,527 The Company’s headquarter lease expires on November 30, 2020. In April 2020, the Company entered into a new noncancelable operating lease for its headquarters with a 64 month lease term that will commence on December 1, 2020. The new lease has a five year renewal option which the Company is not reasonably certain to exercise. The future payments over the 64 month lease term are $11.4 million. Future minimum payments under noncancelable operating leases as of September 30, 2019 under ASC 840 are as follows (in thousands): Fiscal Year 2020 $ 3,400 2021 1,700 2022 900 2023 400 2024 100 Total $ 6,500 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The table below sets forth the Company’s cash equivalents as of September 30, 2020, and 2019, 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. Reported as: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents As of September 30, 2020 Level 1: Money market funds 31,915 — — 31,915 31,915 US Treasury securities $ 149,982 $ — $ — $ 149,982 $ 149,982 Total $ 181,897 $ — $ — $ 181,897 $ 181,897 As of September 30, 2019 Level 1: Money market funds $ 32,792 $ — $ — $ 32,792 $ 32,792 Total $ 32,792 $ — $ — $ 32,792 $ 32,792 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. See Note 6 for the fair value measurement of the Company’s derivative contracts, Note 8 for the fair value measurement of the Company’s term loan and promissory notes, and Note 9 for the fair value measurement of the Company’s convertible senior notes. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | Derivative Instruments and Hedging The Company uses 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. These contracts have maturities of 12 months or less. The amounts reclassified to expenses related to the hedged transactions were immaterial for the years ended September 30, 2020, and 2019. The fair value of the outstanding non-deliverable foreign currency forward contracts was measured using Level 2 fair value inputs and was immaterial as of September 30, 2020, and 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. The notional amounts of the Company's outstanding foreign currency forward contracts designated as cash flow hedges were $5.5 million and $9.4 million as of September 30, 2020, and 2019, respectively. |
Consolidated Balance Sheets Com
Consolidated Balance Sheets Components | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 (in thousands) Computer software and equipment $ 6,367 $ 7,644 Furniture and fixtures 1,143 1,252 Leasehold improvements 1,012 1,276 Software development costs 7,801 9,416 Total property and equipment $ 16,323 $ 19,588 Less: Accumulated depreciation and amortization (15,289) (18,545) Total Property and equipment, net $ 1,034 $ 1,043 Depreciation expense including depreciation of assets under capital leases totaled $0.7 million, $1.3 million, and $2.7 million for the fiscal years ended September 30, 2020, 2019, and 2018, respectively. Intangible Assets As of September 30, 2020 Estimated Useful Gross Carrying Accumulated Net Carrying (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (9,544) $ 2,539 Customer relationships 3-10 36,599 (14,758) 21,841 Total $ 48,682 $ (24,302) $ 24,380 As of September 30, 2019 Estimated Useful Gross Carrying Accumulated Net Carrying (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 The Company recorded amortization expense related to the acquired intangible assets of $4.8 million, $5.5 million and $5.6 million during the fiscal years ended September 30, 2020, 2019, and 2018, respectively. Estimated future amortization expense for the intangible assets as of September 30, 2020 is as follows: Fiscal Years Ending (in thousands) 2021 4,687 2022 4,687 2023 3,840 2024 3,558 2025 3,558 2026 and thereafter 4,050 Total future amortization $ 24,380 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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 $50.0 million term loan, as well as a revolving line of credit for an amount up to $5.0 million. At the same time and with a portion of the proceeds, the Company repaid in full the $50.0 million term loan the Company entered into in connection with the 2017 Revitas acquisition. The Company paid a total of $10.2 million of principal in fiscal years 2018 and 2019. In May 2020, the Company terminated the Credit Agreement and repaid in full the outstanding term loan including $39.8 million principal and $0.2 million interest from the proceeds of the convertible senior notes, as discussed in Note 9. The Company recorded a loss on debt extinguishment of $0.3 million representing the unamortized debt discount and issuance costs amount. The term loan had a maturity date of May 4, 2023. 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 bore 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 rate plus applicable margin ranging from 2.5% to 4.5%. Interest was payable periodically, in arrears, at the end of each interest period the Company elected. For the first four months of fiscal year 2020, the Company’s interest rate was LIBOR rate plus 3.5%. For the period beginning on February 1, 2020 through the payoff of the term loan, the Company’s interest rate was LIBOR rate plus 2.5%. The effective interest rate for the term loan with Wells Fargo was 5.34% for the year ended September 30, 2020. In addition, the Company was 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. The Credit Agreement contained customary representations and warranties, subject to limitations and exceptions, customary covenants, and certain financial covenants. The Company was in compliance with all covenant requirements through the payoff in conjunction with the issuance of convertible senior notes as discussed in Note 9. 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, both of which matured and were paid in full on July 5, 2018 and January 5, 2020, respectively. The carrying value of the term loan with Wells Fargo approximated fair value since the term loan bore interest at rates that fluctuated with the changes in the base rate or the LIBOR rate as elected by the Company. The carrying value of the promissory note approximated its fair value. The Company classified the term loan with Wells Fargo and the promissory note under level 2 of the fair value measurement hierarchy as these instruments were not actively traded. The Notes are senior, unsecured obligations of the Company and bear an interest rate of 2.625% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The Notes mature on June 1, 2025 unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Notes are convertible into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 30.0044 shares of common stock per $1,000 principal amount of the Notes, which is equal to an initial conversion price of approximately $33.33 per share of common stock subject to adjustment, with a maximum conversion rate of 38.2555. The Company intends to settle the principal amount of the Notes with cash. Prior to the close of business on the scheduled trading day immediately preceding March 1, 2025, holders of the Notes may convert all or a portion of their Notes in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. On or after March 1, 2025 and prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Notes may convert all or a portion of their Notes in multiples of $1,000 principal amount regardless of the foregoing conditions. Holders of the Notes who convert their Notes in connection with a make-whole fundamental change (as defined in the Indenture) or in connection with any optional redemption are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. The Company may not redeem the Notes prior to June 6, 2023. The Company may redeem for cash all or part of the Notes, at its option, on or after June 6, 2023 and on or before the 41st scheduled trading day immediately before the maturity date, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. No sinking fund is provided for the Notes. During the year ended September 30, 2020, the conditions allowing holders of the Notes to convert were not met. The Notes were classified as long-term debt on the Consolidated Balance Sheets as of September 30, 2020. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component of $115.3 million was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $57.2 million and was determined by deducting the fair value of the liability component from the principal amount of the Notes. The excess of the principal amount of the Notes over the carrying amount of the liability component is amortized to interest expense at an effective interest rate over the contractual terms of the Notes. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were $4.1 million and are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component of $2.0 million were netted with the equity component in stockholders’ equity. The net carrying amount of the liability and equity components for the Notes as of September 30, 2020 was as follows (in thousands): Liability component: Principal amount $ 172,500 Unamortized discount (54,147) Unamortized issuance costs (3,915) Net carrying amount $ 114,438 Equity component, net of issuance costs $ 55,227 The following table sets forth the interest expense recognized related to the Notes (in thousands): Fiscal Year Ended Coupon interest expense $ 1,623 Amortization of debt discount 3,102 Amortization of debt issuance costs 155 Total interest expense related to the Notes $ 4,880 Effective interest rate of the liability component 12.32 % The unamortized debt discount and debt issuance costs will be amortized over 56 months as of September 30, 2020. As of September 30, 2020, the total estimated fair value of the Notes was approximately $224.9 million which includes the equity component. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. The fair value of the Notes is considered a Level 2 measurement as they are not actively traded. |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Debt 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 $50.0 million term loan, as well as a revolving line of credit for an amount up to $5.0 million. At the same time and with a portion of the proceeds, the Company repaid in full the $50.0 million term loan the Company entered into in connection with the 2017 Revitas acquisition. The Company paid a total of $10.2 million of principal in fiscal years 2018 and 2019. In May 2020, the Company terminated the Credit Agreement and repaid in full the outstanding term loan including $39.8 million principal and $0.2 million interest from the proceeds of the convertible senior notes, as discussed in Note 9. The Company recorded a loss on debt extinguishment of $0.3 million representing the unamortized debt discount and issuance costs amount. The term loan had a maturity date of May 4, 2023. 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 bore 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 rate plus applicable margin ranging from 2.5% to 4.5%. Interest was payable periodically, in arrears, at the end of each interest period the Company elected. For the first four months of fiscal year 2020, the Company’s interest rate was LIBOR rate plus 3.5%. For the period beginning on February 1, 2020 through the payoff of the term loan, the Company’s interest rate was LIBOR rate plus 2.5%. The effective interest rate for the term loan with Wells Fargo was 5.34% for the year ended September 30, 2020. In addition, the Company was 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. The Credit Agreement contained customary representations and warranties, subject to limitations and exceptions, customary covenants, and certain financial covenants. The Company was in compliance with all covenant requirements through the payoff in conjunction with the issuance of convertible senior notes as discussed in Note 9. 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, both of which matured and were paid in full on July 5, 2018 and January 5, 2020, respectively. The carrying value of the term loan with Wells Fargo approximated fair value since the term loan bore interest at rates that fluctuated with the changes in the base rate or the LIBOR rate as elected by the Company. The carrying value of the promissory note approximated its fair value. The Company classified the term loan with Wells Fargo and the promissory note under level 2 of the fair value measurement hierarchy as these instruments were not actively traded. The Notes are senior, unsecured obligations of the Company and bear an interest rate of 2.625% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The Notes mature on June 1, 2025 unless repurchased, redeemed or converted in accordance with their terms prior to such date. The Notes are convertible into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election, at an initial conversion rate of 30.0044 shares of common stock per $1,000 principal amount of the Notes, which is equal to an initial conversion price of approximately $33.33 per share of common stock subject to adjustment, with a maximum conversion rate of 38.2555. The Company intends to settle the principal amount of the Notes with cash. Prior to the close of business on the scheduled trading day immediately preceding March 1, 2025, holders of the Notes may convert all or a portion of their Notes in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. On or after March 1, 2025 and prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Notes may convert all or a portion of their Notes in multiples of $1,000 principal amount regardless of the foregoing conditions. Holders of the Notes who convert their Notes in connection with a make-whole fundamental change (as defined in the Indenture) or in connection with any optional redemption are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. The Company may not redeem the Notes prior to June 6, 2023. The Company may redeem for cash all or part of the Notes, at its option, on or after June 6, 2023 and on or before the 41st scheduled trading day immediately before the maturity date, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. No sinking fund is provided for the Notes. During the year ended September 30, 2020, the conditions allowing holders of the Notes to convert were not met. The Notes were classified as long-term debt on the Consolidated Balance Sheets as of September 30, 2020. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component of $115.3 million was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $57.2 million and was determined by deducting the fair value of the liability component from the principal amount of the Notes. The excess of the principal amount of the Notes over the carrying amount of the liability component is amortized to interest expense at an effective interest rate over the contractual terms of the Notes. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were $4.1 million and are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component of $2.0 million were netted with the equity component in stockholders’ equity. The net carrying amount of the liability and equity components for the Notes as of September 30, 2020 was as follows (in thousands): Liability component: Principal amount $ 172,500 Unamortized discount (54,147) Unamortized issuance costs (3,915) Net carrying amount $ 114,438 Equity component, net of issuance costs $ 55,227 The following table sets forth the interest expense recognized related to the Notes (in thousands): Fiscal Year Ended Coupon interest expense $ 1,623 Amortization of debt discount 3,102 Amortization of debt issuance costs 155 Total interest expense related to the Notes $ 4,880 Effective interest rate of the liability component 12.32 % The unamortized debt discount and debt issuance costs will be amortized over 56 months as of September 30, 2020. As of September 30, 2020, the total estimated fair value of the Notes was approximately $224.9 million which includes the equity component. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. The fair value of the Notes is considered a Level 2 measurement as they are not actively traded. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 4 for details of leases. 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, 2020, and 2019. 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, 2020 | |
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 on 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, 2020, 2.8 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 ended September 30, 2020, 2019, and 2018. 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 Weighted Weighted Aggregate 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 Exercised (65) 7.72 Expired (1) 1.74 Balance at September 30, 2020 34 $ 10.57 1.68 $ 846 Options exercisable as of September 30, 2020 34 $ 10.57 1.68 $ 846 Options vested and expected to vest as of 34 $ 10.57 1.68 $ 846 The intrinsic value of options exercised during fiscal years ended September 30, 2020, 2019, and 2018 was $1.4 million, $1.6 million, and $1.5 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, 2020 2019 2018 Risk-free interest rate 0.84 % 2.26 % 1.73 % Dividend yield — % — % — % Volatility 52 % 33 % 28 % Expected term (in years) 0.50 0.50 0.50 Fair value at grant date $ 11.20 $ 5.17 $ 3.65 Restricted Stock Units and Performance-based Restricted Stock Units During the years ended September 30, 2020, 2019, and 2018, 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 years 2020 and 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 year 2018, 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. The grant date fair values of the performance-based restricted stock units granted in fiscal year 2018 were determined using Monte-Carlo simulation model with risk-free interest rate of 2.42%–2.57% and volatility of 39%–40%. As of September 30, 2020, 0.2 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 Weighted 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 Granted 1,390 28.91 Released (1,613) 19.60 Forfeited (170) 18.21 Balance at September 30, 2020 1,957 $ 22.43 The total fair value of restricted stock and performance based restricted stock awards vested for the years ended September 30, 2020, 2019, and 2018, was $54.9 million, $22.2 million, and $19.8 million, respectively. The following table summarizes certain information of the unvested awards as of September 30, 2020: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 29.3 $ 0.7 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, 2020 2019 2018 (in thousands) Cost of revenues: Subscription $ 1,865 $ 2,468 $ 1,400 Professional Services 2,229 2,894 1,256 Total stock-based compensation in cost of revenues 4,094 5,362 2,656 Operating expenses: Research and development 4,625 4,145 2,983 Sales and marketing 6,160 4,641 3,524 General and administrative 7,621 7,192 14,161 Total stock-based compensation in operating expenses 18,406 15,978 20,668 Total stock-based compensation $ 22,500 $ 21,340 $ 23,324 For the fiscal year ended September 30, 2020, the total stock-based compensation included an immaterial amount related to bonus. 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, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes are as follows: Fiscal Years Ended September 30, 2020 2019 2018 (in thousands) Domestic $ (14,252) $ (17,057) $ (31,312) Foreign 1,400 (1,206) 3,078 Loss before taxes $ (12,852) $ (18,263) $ (28,234) The components of the provision for (benefit from) income taxes are as follows: Fiscal Years Ended September 30, 2020 2019 2018 (in thousands) Current Federal $ (106) $ — $ (110) State 21 11 36 Foreign 508 843 439 $ 423 $ 854 $ 365 Deferred Federal $ 86 $ (2) $ (404) State 70 (19) 12 Foreign 233 197 — $ 389 $ 176 $ (392) Total provision for (benefit from) income taxes $ 812 $ 1,030 $ (27) Reconciliation of the statutory federal income tax to the Company’s effective tax is as follows: Fiscal Years Ended September 30, 2020 2019 2018 (in thousands) Tax at statutory federal rate $ (2,699) $ (3,835) $ (6,854) State tax, net of federal benefit 21 11 36 Permanent differences (195) (443) 950 Stock-based compensation (5,163) (1,061) (3,761) Section 162(m) 2,266 168 56 Foreign tax rate differential 213 1,293 (308) Change in valuation allowance 7,778 5,814 (13,785) Research and development tax credits (1,370) (974) (725) Change in deferred tax liabilities 69 (19) (392) Change in federal statutory tax rate — — 24,828 Other (108) 76 (72) Total provision for (benefit from) income taxes $ 812 $ 1,030 $ (27) 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. 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 year ended September 30, 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. During the year ended September 30, 2020, the Company repatriated $1.0 million of foreign subsidiary earnings to the U.S. in the form of cash and paid foreign withholding taxes of $0.2 million. As of September 30, 2020, 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 $1.6 million in foreign subsidiary earnings. Deferred tax assets and liabilities consisted of the following: As of September 30, 2020 2019 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,104 $ 1,168 Accruals and other 7,801 5,889 Deferred revenue 141 — NOL carry-forward 69,816 59,705 Stock compensation 2,017 2,610 Research and development tax credits 15,975 13,622 Total deferred tax assets $ 96,854 $ 82,994 Valuation allowance (73,372) (74,885) Net deferred tax assets $ 23,482 $ 8,109 Deferred tax liabilities: Convertible senior notes $ (13,967) $ — Intangibles (6,844) (7,588) Capitalized contract acquisition costs (2,070) (561) Other (1,096) (235) Net deferred tax liabilities $ (495) $ (275) 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 as of September 30, 2020, and 2019, due to the uncertainty of realizing future tax benefits from its net operating loss carry-forwards and other deferred tax assets. The net decrease in the total valuation allowance for the year ended September 30, 2020 was approximately $1.5 million. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was enacted and signed into law in response to the COVID-19 pandemic. GAAP requires recognition of the tax effects of new legislation during the reporting period in which the enactment date occurs. The CARES Act includes changes to the tax provisions that benefits business entities and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. The tax relief measures for businesses include a five-year net operating loss carryback, suspension of annual deduction limitation of 80% of taxable income from net operating losses generated in a tax year beginning after December 31, 2017, changes in the deductibility of interest, acceleration of alternative minimum tax credit refunds, payroll tax relief, technical corrections on net operating loss carryforwards for fiscal year taxpayers and allowing accelerated deductions for qualified improvement property. The CARES Act also provides other non-tax benefits to assist those impacted by the pandemic. The Company evaluated the impact of the CARES Act and determined that there is no material impact to the income tax provision for the year. On June 29, 2020, California Assembly Bill 85 (“AB 85”) was signed into law, which suspends the use of net operating losses for certain taxpayers and limits the use of research tax credits for tax years 2020, 2021, and 2022. The Company evaluated the impact of AB 85 and determined that it did not impact the Company’s income tax provision for the year. As of September 30, 2020, the Company has federal and state NOL carry-forwards of approximately $264.4 million and $525.1 million, respectively. The federal NOL will begin expiring in 2021 and the state NOLs began expiring in 2020. As of September 30, 2020, the Company had federal and state research and development credit carry forwards of approximately $10.8 million and $11.7 million, respectively. The federal research and development credit carry-forwards began expiring in 2020. The California and Massachusetts tax credits can be carried forward indefinitely. 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, 2020 and determined there would be no effect on the NOL deferred tax asset if ownership changes occurred. As of September 30, 2020, the Company had unrecognized tax benefits of approximately $4.7 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, 2020, there was a liability of $0.1 million related to uncertain tax positions recorded on the financial statements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Years Ended September 30, 2020 2019 2018 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,961 $ 3,469 $ 3,143 Gross decrease based on tax positions during the prior period (8) (4) (143) Gross increase based on tax positions during the prior period — 23 94 Gross increase based on tax positions during the 702 473 375 Unrecognized tax benefits at the end of the period $ 4,655 $ 3,961 $ 3,469 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Sep. 30, 2020 | |
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 including options to purchase common stock, unvested restricted stock units, ESPP, and convertible senior notes. Fiscal Years Ended September 30, 2020 2019 2018 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (13,664) $ (19,293) $ (28,207) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net 34,008 32,232 30,370 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.40) $ (0.60) $ (0.93) Potentially dilutive securities that were not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive are as follows (in thousands): As of September 30, 2020 2019 2018 (in thousands) Stock options 34 100 227 Performance-based RSUs and RSUs 1,957 2,350 2,313 Shares issuable pursuant to the employee stock purchase plan 66 84 120 Convertible senior notes 5,176 — — |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 30, 2020 | |
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 9%, 8%, and 12% of total revenues for the fiscal years ended September 30, 2020, 2019, and 2018, 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, 2020 2019 (in thousands) United States $ 562 $ 853 India 472 190 Total property and equipment, net $ 1,034 $ 1,043 |
Schedule II - Valuation and qua
Schedule II - Valuation and qualifying accounts | 12 Months Ended |
Sep. 30, 2020 | |
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 and valuation allowance for deferred tax assets for the fiscal years ended September 30, 2020, 2019, and 2018, respectively. Description Balance at Additions Write-offs Balance at Allowance for doubtful receivables For the Year Ended September 30, 2020 $ 51 24 28 $ 47 For the Year Ended September 30, 2019 $ 172 44 165 $ 51 For the Year Ended September 30, 2018 $ 85 172 85 $ 172 Valuation allowance for deferred tax For the Year Ended September 30, 2020 $ 74,885 15,261 16,774 $ 73,372 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
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, liability and equity allocation of convertible senior notes, income taxes, stock-based compensation, and business combinations. 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 five step revenue recognition framework to recognize revenue from contracts with customers: • 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 products and 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 products and services are distinct based on whether the customer can benefit from the product or 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 products and services 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. The Company applies judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. 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 products and 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 products and 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 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 US Treasury securities 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, and US Treasury securities. 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. |
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 $2.0 million and $5.9 million is recorded as unbilled receivables and is included in accounts receivables in the Consolidated Balance Sheets as of September 30, 2020, and 2019, 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. |
Leases | Leases The Company determines if an arrangement contains a lease at inception. The Company has entered into operating lease agreements primarily for offices. The Company does not have any finance leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make payments arising from the lease. Operating leases are included in “Operating lease right-of-use assets”, “Operating lease liabilities, current portion”, and “Operating lease liabilities, less current portion” in the consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized at the present value of the future lease payments at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company’s lease arrangements may contain lease and non-lease components. The Company elected to combine lease and non-lease components. In determining the present value of the future lease payments, the Company considers only payments that are fixed and determinable at commencement date, including non-lease components. Variable components such as utilities and maintenance costs are expensed as incurred. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. In determining the appropriate incremental borrowing rate, the Company considers information including, but not limited to, its credit rating, the lease term, and the economic environment where the leased asset is located. Lease terms include periods under options to extend or terminate the lease when the Company is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company also elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for leases with a term of 12 months or less. |
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, 2020, and 2019. 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 the single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. When performing the goodwill impairment test, the Company compares the fair value of the single reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the fair value with goodwill written down accordingly. 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 |
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 not 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. |
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. The Company’s cash equivalents consist of money market funds and US Treasury securities, 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. |
Convertible Senior Notes | Convertible Senior Notes In May 2020, the Company issued $172.5 million aggregate principal amount of 2.625% convertible senior notes. The Company separates its convertible senior notes (the “Notes”) into liability and equity components. The carrying amount of the liability component is calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option is determined by deducting the fair value of the liability component from the principal amount of the Notes. The excess of the principal amount of the Notes over the carrying amount of the liability component (“debt discount”) is amortized to interest expense at an effective interest rate over the contractual term of the Notes. The equity component is recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocates the issuance costs to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity. |
Advertising and Promotion Costs | Advertising and Promotion CostsAdvertising and promotion costs are expensed as incurred. |
Employee Benefit Plan | Employee Benefit PlanThe 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 the 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 it is more likely than not 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 |
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 (loss) on cash flow hedges. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02 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 fair value of the Company’s single reporting unit with the 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 with early adoption permitted. The Company adopted this guidance beginning in the first quarter of fiscal year 2020 and it did not have a material impact on the Consolidated Financial Statements. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Intangibles (Topic 350), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard also requires customers to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. The Company does not expect the new standard to have a material impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. ASU 2016-13 requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company does not expect the new standard to have a material impact on its Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which simplifies the accounting for incomes taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which eliminates the beneficial conversion and cash conversion accounting models for |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 as of September 30, 2020, and 2019 and of the Company’s total revenues for the fiscal years ended September 30, 2020, 2019, and 2018, respectively: As of September 30, Accounts Receivable 2020 2019 Company A 12% 12% Company B 12% less than 10% Fiscal Years Ended September 30, Revenue 2020 2019 2018 Company C less than 10% less than 10% 15% |
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 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Customer Contract Balances | The following table reflects balances related to contracts with customers (in thousands): As of September 30, 2020 As of September 30, 2019 Accounts receivable, net $ 35,796 $ 26,953 Contract asset 4,482 1,588 Deferred revenue 51,786 45,385 Capitalized contract acquisition costs 7,506 6,626 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Operating Lease Cost and Cash Flow Information | Cash flow information related to operating leases is as follows (in thousands): Fiscal Year Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 3,545 Operating lease ROU assets obtained in exchange for new operating lease liabilities (375) |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of September 30, 2020 are as follows (in thousands): Fiscal Year 2021 1,599 2022 762 2023 442 2024 350 2025 234 2026 and thereafter 535 Total operating lease payments 3,922 Less imputed interest 395 Total operating lease liabilities $ 3,527 |
Schedule of Future Minimum Payments under Operating Leases | Future minimum payments under noncancelable operating leases as of September 30, 2019 under ASC 840 are as follows (in thousands): Fiscal Year 2020 $ 3,400 2021 1,700 2022 900 2023 400 2024 100 Total $ 6,500 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020, and 2019, 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. Reported as: Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents As of September 30, 2020 Level 1: Money market funds 31,915 — — 31,915 31,915 US Treasury securities $ 149,982 $ — $ — $ 149,982 $ 149,982 Total $ 181,897 $ — $ — $ 181,897 $ 181,897 As of September 30, 2019 Level 1: Money market funds $ 32,792 $ — $ — $ 32,792 $ 32,792 Total $ 32,792 $ — $ — $ 32,792 $ 32,792 |
Consolidated Balance Sheets C_2
Consolidated Balance Sheets Components (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment | Property and Equipment As of September 30, 2020 2019 (in thousands) Computer software and equipment $ 6,367 $ 7,644 Furniture and fixtures 1,143 1,252 Leasehold improvements 1,012 1,276 Software development costs 7,801 9,416 Total property and equipment $ 16,323 $ 19,588 Less: Accumulated depreciation and amortization (15,289) (18,545) Total Property and equipment, net $ 1,034 $ 1,043 |
Schedule of Intangible Assets | Intangible Assets As of September 30, 2020 Estimated Useful Gross Carrying Accumulated Net Carrying (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (9,544) $ 2,539 Customer relationships 3-10 36,599 (14,758) 21,841 Total $ 48,682 $ (24,302) $ 24,380 As of September 30, 2019 Estimated Useful Gross Carrying Accumulated Net Carrying (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 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense for the intangible assets as of September 30, 2020 is as follows: Fiscal Years Ending (in thousands) 2021 4,687 2022 4,687 2023 3,840 2024 3,558 2025 3,558 2026 and thereafter 4,050 Total future amortization $ 24,380 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Term Loan and Promissory Notes and Total Interest Expense Recognized | The net carrying amount of the liability and equity components for the Notes as of September 30, 2020 was as follows (in thousands): Liability component: Principal amount $ 172,500 Unamortized discount (54,147) Unamortized issuance costs (3,915) Net carrying amount $ 114,438 Equity component, net of issuance costs $ 55,227 The following table sets forth the interest expense recognized related to the Notes (in thousands): Fiscal Year Ended Coupon interest expense $ 1,623 Amortization of debt discount 3,102 Amortization of debt issuance costs 155 Total interest expense related to the Notes $ 4,880 Effective interest rate of the liability component 12.32 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 Weighted Weighted Aggregate 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 Exercised (65) 7.72 Expired (1) 1.74 Balance at September 30, 2020 34 $ 10.57 1.68 $ 846 Options exercisable as of September 30, 2020 34 $ 10.57 1.68 $ 846 Options vested and expected to vest as of 34 $ 10.57 1.68 $ 846 |
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, 2020 2019 2018 Risk-free interest rate 0.84 % 2.26 % 1.73 % Dividend yield — % — % — % Volatility 52 % 33 % 28 % Expected term (in years) 0.50 0.50 0.50 Fair value at grant date $ 11.20 $ 5.17 $ 3.65 |
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 Weighted 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 Granted 1,390 28.91 Released (1,613) 19.60 Forfeited (170) 18.21 Balance at September 30, 2020 1,957 $ 22.43 |
Summary of Unvested Awards | The following table summarizes certain information of the unvested awards as of September 30, 2020: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 29.3 $ 0.7 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, 2020 2019 2018 (in thousands) Cost of revenues: Subscription $ 1,865 $ 2,468 $ 1,400 Professional Services 2,229 2,894 1,256 Total stock-based compensation in cost of revenues 4,094 5,362 2,656 Operating expenses: Research and development 4,625 4,145 2,983 Sales and marketing 6,160 4,641 3,524 General and administrative 7,621 7,192 14,161 Total stock-based compensation in operating expenses 18,406 15,978 20,668 Total stock-based compensation $ 22,500 $ 21,340 $ 23,324 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2018 (in thousands) Domestic $ (14,252) $ (17,057) $ (31,312) Foreign 1,400 (1,206) 3,078 Loss before taxes $ (12,852) $ (18,263) $ (28,234) |
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, 2020 2019 2018 (in thousands) Current Federal $ (106) $ — $ (110) State 21 11 36 Foreign 508 843 439 $ 423 $ 854 $ 365 Deferred Federal $ 86 $ (2) $ (404) State 70 (19) 12 Foreign 233 197 — $ 389 $ 176 $ (392) Total provision for (benefit from) income taxes $ 812 $ 1,030 $ (27) |
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, 2020 2019 2018 (in thousands) Tax at statutory federal rate $ (2,699) $ (3,835) $ (6,854) State tax, net of federal benefit 21 11 36 Permanent differences (195) (443) 950 Stock-based compensation (5,163) (1,061) (3,761) Section 162(m) 2,266 168 56 Foreign tax rate differential 213 1,293 (308) Change in valuation allowance 7,778 5,814 (13,785) Research and development tax credits (1,370) (974) (725) Change in deferred tax liabilities 69 (19) (392) Change in federal statutory tax rate — — 24,828 Other (108) 76 (72) Total provision for (benefit from) income taxes $ 812 $ 1,030 $ (27) |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: As of September 30, 2020 2019 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,104 $ 1,168 Accruals and other 7,801 5,889 Deferred revenue 141 — NOL carry-forward 69,816 59,705 Stock compensation 2,017 2,610 Research and development tax credits 15,975 13,622 Total deferred tax assets $ 96,854 $ 82,994 Valuation allowance (73,372) (74,885) Net deferred tax assets $ 23,482 $ 8,109 Deferred tax liabilities: Convertible senior notes $ (13,967) $ — Intangibles (6,844) (7,588) Capitalized contract acquisition costs (2,070) (561) Other (1,096) (235) Net deferred tax liabilities $ (495) $ (275) |
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, 2020 2019 2018 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,961 $ 3,469 $ 3,143 Gross decrease based on tax positions during the prior period (8) (4) (143) Gross increase based on tax positions during the prior period — 23 94 Gross increase based on tax positions during the 702 473 375 Unrecognized tax benefits at the end of the period $ 4,655 $ 3,961 $ 3,469 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | Fiscal Years Ended September 30, 2020 2019 2018 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (13,664) $ (19,293) $ (28,207) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net 34,008 32,232 30,370 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.40) $ (0.60) $ (0.93) |
Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders | Potentially dilutive securities that were not included in the calculation of diluted net loss per share because their effect would have been anti-dilutive are as follows (in thousands): As of September 30, 2020 2019 2018 (in thousands) Stock options 34 100 227 Performance-based RSUs and RSUs 1,957 2,350 2,313 Shares issuable pursuant to the employee stock purchase plan 66 84 120 Convertible senior notes 5,176 — — |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 (in thousands) United States $ 562 $ 853 India 472 190 Total property and equipment, net $ 1,034 $ 1,043 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Estimates - Additional Information (Detail) | 12 Months Ended | ||||
Sep. 30, 2020USD ($)SegmentreportingUnits | Sep. 30, 2019USD ($)reportingUnits | Sep. 30, 2018USD ($) | May 31, 2020USD ($) | Oct. 01, 2019USD ($) | |
Significant Accounting Policies and Estimates | |||||
Capitalized contracts amortization period | 5 years | ||||
Foreign exchange contract terms | 12 months | ||||
Unbilled receivables recorded in balance sheets | $ 2,000,000 | $ 5,900,000 | |||
Reporting units (reporting units) | reportingUnits | 1 | 1 | |||
Goodwill impairments | $ 0 | $ 0 | $ 0 | ||
Impairment charges on long-lived assets | 0 | 0 | 0 | ||
Advertising and promoting costs | 200,000 | 200,000 | 400,000 | ||
Employer contribution to employee benefit plan | 600,000 | 600,000 | $ 600,000 | ||
Deferred tax assets fully offset by valuation allowance | $ 96,854,000 | $ 82,994,000 | |||
Number of operating segment | Segment | 1 | ||||
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201409Member | |||
Operating lease right-of-use | $ 3,332,000 | $ 6,700,000 | |||
Operating lease liabilities | $ 3,527,000 | 7,200,000 | |||
Deferred rent asset | $ 500,000 | ||||
Convertible Debt | Notes | |||||
Significant Accounting Policies and Estimates | |||||
Debt instrument, face amount | $ 172,500,000 | ||||
Debt instrument, interest rate (percent) | 2.625% | ||||
Software Development Costs | |||||
Significant Accounting Policies and Estimates | |||||
Estimated useful life | 3 years | ||||
Minimum | |||||
Significant Accounting Policies and Estimates | |||||
Revenue recognition term (years) | 1 year | ||||
Estimated useful life | 3 years | ||||
Minimum | Foreign Currency Exchange Contracts | Cash Flow Hedging | |||||
Significant Accounting Policies and Estimates | |||||
Foreign exchange contract terms | 1 month | ||||
Maximum | |||||
Significant Accounting Policies and Estimates | |||||
Revenue recognition term (years) | 3 years | ||||
Estimated useful life | 10 years | ||||
Maximum | Foreign Currency Exchange Contracts | Cash Flow Hedging | |||||
Significant Accounting Policies and Estimates | |||||
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 | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Company A | Accounts Receivable | |||
Concentration Risk | |||
Concentration of credit risk (equal to or less than) | 12.00% | 12.00% | |
Company B | Accounts Receivable | |||
Concentration Risk | |||
Concentration of credit risk (equal to or less than) | 12.00% | 10.00% | |
Company C | Revenue | |||
Concentration Risk | |||
Concentration of credit risk (equal to or less than) | 10.00% | 10.00% | 15.00% |
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, 2020 | |
Software development costs | |
Property, Plant and Equipment | |
Estimated useful lives | 3 years |
Minimum | Computer software and equipment | |
Property, Plant and Equipment | |
Estimated useful lives | 2 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment | |
Estimated useful lives | 2 years |
Maximum | Computer software and equipment | |
Property, Plant and Equipment | |
Estimated useful lives | 5 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment | |
Estimated useful lives | 5 years |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Customer Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 35,796 | $ 26,953 |
Contract asset | 4,482 | 1,588 |
Deferred revenue | 51,786 | 45,385 |
Capitalized contract acquisition costs | $ 7,506 | $ 6,626 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized that was included in deferred revenue at beginning of period | $ 44,700,000 | $ 44,500,000 | |
Capitalized contract acquisition costs, current portion | 2,300,000 | ||
Capitalized contract acquisition costs, non-current portion | 5,200,000 | ||
Amortization of capitalized contract acquisition costs | 2,459,000 | 1,781,000 | $ 0 |
Impairment loss related to contract balances | $ 0 | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations not satisfied or partially satisfied | $ 164.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 53.00% |
Remaining performance obligation, expected timing of satisfaction | 12 months |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 30, 2020 | |
Lessee, Lease, Description | |||||
Operating lease costs | $ 3,200 | ||||
Rent expenses | $ 3,200 | $ 3,400 | |||
Decrease in operating lease right of use asset | $ 1,000 | ||||
Operating lease, weighted average remaining lease term | 4 years | ||||
Weighted-average discount rate (percent) | 5.50% | ||||
Future lease payments | $ 3,922 | ||||
Headquarters | |||||
Lessee, Lease, Description | |||||
Noncancelable operating leases term | 64 months | ||||
Renewal option | 5 years | ||||
Future lease payments | $ 11,400 | ||||
Minimum | |||||
Lessee, Lease, Description | |||||
Noncancelable operating leases term | 3 years | ||||
Maximum | |||||
Lessee, Lease, Description | |||||
Noncancelable operating leases term | 10 years |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating lease, payments | $ 3,545 |
Right-of-use asset obtained in exchange for operating lease liability | $ (375) |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 01, 2019 |
Fiscal Year | ||
2021 | $ 1,599 | |
2022 | 762 | |
2023 | 442 | |
2024 | 350 | |
2025 | 234 | |
2026 and thereafter | 535 | |
Total operating lease payments | 3,922 | |
Less imputed interest | 395 | |
Total operating lease liabilities | $ 3,527 | $ 7,200 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 3,400 |
2021 | 1,700 |
2022 | 900 |
2023 | 400 |
2024 | 100 |
Total | $ 6,500 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - Level 1 - Fair Value Measurement Recurring - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amortized Cost | $ 181,897 | $ 32,792 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 181,897 | 32,792 |
Cash and Cash Equivalents | 181,897 | 32,792 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amortized Cost | 31,915 | 32,792 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 31,915 | 32,792 |
Cash and Cash Equivalents | 31,915 | $ 32,792 |
US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amortized Cost | 149,982 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 149,982 | |
Cash and Cash Equivalents | $ 149,982 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value Measurement Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | $ 0 | $ 0 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative | ||
Foreign exchange contract terms | 12 months | |
Cash Flow Hedging | Foreign Currency Exchange Contracts | ||
Derivative | ||
Notional amount | $ 5,500,000 | $ 9,400,000 |
Consolidated Balance Sheets C_3
Consolidated Balance Sheets Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment | ||
Total property and equipment | $ 16,323 | $ 19,588 |
Less: Accumulated depreciation and amortization | (15,289) | (18,545) |
Total property and equipment, net | 1,034 | 1,043 |
Computer software and equipment | ||
Property, Plant and Equipment | ||
Total property and equipment | 6,367 | 7,644 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total property and equipment | 1,143 | 1,252 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Total property and equipment | 1,012 | 1,276 |
Software development costs | ||
Property, Plant and Equipment | ||
Total property and equipment | $ 7,801 | $ 9,416 |
Consolidated Balance Sheets C_4
Consolidated Balance Sheets Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation of property and equipment | $ 0.7 | $ 1.3 | $ 2.7 |
Amortization expense of intangible assets | $ 4.8 | $ 5.5 | $ 5.6 |
Consolidated Balance Sheets C_5
Consolidated Balance Sheets Components - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Acquired Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 48,682 | $ 48,962 |
Accumulated Amortization | (24,302) | (19,831) |
Net Carrying Amount | $ 24,380 | 29,131 |
Minimum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated Useful Life (in years) | 3 years | |
Maximum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated Useful Life (in years) | 10 years | |
Developed technology | ||
Acquired Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 12,083 | 12,083 |
Accumulated Amortization | (9,544) | (8,351) |
Net Carrying Amount | $ 2,539 | $ 3,732 |
Developed technology | Minimum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated Useful Life (in years) | 5 years | 5 years |
Developed technology | Maximum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated Useful Life (in years) | 6 years | 6 years |
Backlog | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated Useful Life (in years) | 5 years | |
Gross Carrying Amount | $ 280 | |
Accumulated Amortization | (280) | |
Net Carrying Amount | 0 | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 36,599 | 36,599 |
Accumulated Amortization | (14,758) | (11,200) |
Net Carrying Amount | $ 21,841 | $ 25,399 |
Customer relationships | Minimum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated Useful Life (in years) | 3 years | 3 years |
Customer relationships | Maximum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated Useful Life (in years) | 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, 2020 | Sep. 30, 2019 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2021 | $ 4,687 | |
2022 | 4,687 | |
2023 | 3,840 | |
2024 | 3,558 | |
2025 | 3,558 | |
2026 and thereafter | 4,050 | |
Net Carrying Amount | $ 24,380 | $ 29,131 |
Debt - Term Loan Wells Fargo Ad
Debt - Term Loan Wells Fargo Additional Information (Detail) - USD ($) | Feb. 01, 2020 | Aug. 12, 2019 | May 04, 2018 | May 31, 2020 | May 30, 2020 | Jan. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument | |||||||||
Principal payment of loan | $ 44,750,000 | $ 10,000,000 | $ 55,250,000 | ||||||
Loss on extinguishment of debt | $ 319,000 | 0 | 3,142,000 | ||||||
Effective interest rate of the liability component | 5.34% | ||||||||
Credit Agreement | Revolving Loan | |||||||||
Debt Instrument | |||||||||
Revolving line of credit, aggregate principal amount | $ 5,000,000 | ||||||||
Term Loan | Credit Agreement | |||||||||
Debt Instrument | |||||||||
Debt instrument, face amount | 50,000,000 | ||||||||
Principal payment of loan | $ 40,000,000 | $ 10,200,000 | $ 10,200,000 | ||||||
Repayment of debt principal | $ 39,800,000 | ||||||||
Interest payment | 200,000 | ||||||||
Loss on extinguishment of debt | $ 300,000 | ||||||||
Term Loan | Credit Agreement | LIBOR Rate | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 2.50% | 3.50% | |||||||
Term Loan | Credit Agreement | Minimum | |||||||||
Debt Instrument | |||||||||
Unused line fee percentage | 0.25% | ||||||||
Term Loan | Credit Agreement | Minimum | Base Rate | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Term Loan | Credit Agreement | Minimum | LIBOR Rate | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
Term Loan | Credit Agreement | Maximum | |||||||||
Debt Instrument | |||||||||
Unused line fee percentage | 0.50% | ||||||||
Term Loan | Credit Agreement | Maximum | Base Rate | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 3.50% | ||||||||
Term Loan | Credit Agreement | Maximum | LIBOR Rate | |||||||||
Debt Instrument | |||||||||
Basis spread on variable rate | 4.50% | ||||||||
Term Loan | Revitas Loan | |||||||||
Debt Instrument | |||||||||
Principal payment of loan | $ 50,000,000 |
Debt - Promissory Note (Detail)
Debt - Promissory Note (Detail) | Jan. 05, 2020USD ($) | Jul. 15, 2018USD ($) | Jan. 05, 2017USD ($)promissory_note | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Debt Instrument | ||||||
Principal payment of loan | $ 44,750,000 | $ 10,000,000 | $ 55,250,000 | |||
Promissory Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | $ 10,000,000 | |||||
Number of promissory notes issued | promissory_note | 2 | |||||
Promissory Notes | Promissory Notes | ||||||
Debt Instrument | ||||||
Principal payment of loan | $ 5,000,000 | |||||
Promissory Notes | Promissory Note One | ||||||
Debt Instrument | ||||||
Principal payment of loan | $ 5,000,000 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2020USD ($)trading_day$ / shares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | May 04, 2018USD ($) | |
Debt Instrument | |||||
Repayments of debt | $ 44,750,000 | $ 10,000,000 | $ 55,250,000 | ||
Closing trading price | $ / shares | $ 100 | ||||
Convertible Debt | Notes | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 172,500,000 | ||||
Promissory notes, interest rate | 2.625% | ||||
Purchase option value | $ 22,500,000 | ||||
Proceeds from issuance of debt | 166,400,000 | ||||
Debt issuance costs | $ 6,100,000 | ||||
Conversion rate | 0.0300044 | ||||
Initial conversion price (usd per share) | $ / shares | $ 33.33 | $ 33.33 | |||
Common stock for trading days | trading_day | 20 | ||||
Conversion threshold for trigger price (percent) | 130.00% | ||||
Consecutive trading days | trading_day | 30 | ||||
Minimum percentage of conversion price in the event of trigger event (percent) | 98.00% | ||||
Measurement period (days) | 5 days | ||||
Redemption price (percent) | 100.00% | ||||
Equity component conversion option | $ 57,200,000 | $ 55,227,000 | |||
Equity portion of debt issuance cost | 2,000,000 | ||||
Amortized over period | 56 months | ||||
Convertible Debt | Notes | Estimate of Fair Value Measurement | |||||
Debt Instrument | |||||
Carrying amount of the liability component | 115,300,000 | ||||
Equity portion of debt issuance cost | 2,000,000 | ||||
Estimated fair value | $ 224,900,000 | ||||
Convertible Debt | Notes | Interest Expense | |||||
Debt Instrument | |||||
Debt issuance costs | $ 4,100,000 | ||||
Convertible Debt | Notes | On or After June 6, 2023 | |||||
Debt Instrument | |||||
Redemption price (percent) | 100.00% | ||||
Convertible Debt | Notes | Maximum | |||||
Debt Instrument | |||||
Conversion rate | 0.0382555 | ||||
Term Loan | Credit Agreement | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 50,000,000 | ||||
Repayments of debt | $ 40,000,000 | $ 10,200,000 | $ 10,200,000 |
Convertible Senior Notes - Liab
Convertible Senior Notes - Liability and Equity Components (Details) - Convertible Debt - Notes - USD ($) $ in Thousands | Sep. 30, 2020 | May 31, 2020 |
Liability component: | ||
Principal amount | $ 172,500 | |
Unamortized discount | (54,147) | |
Unamortized issuance costs | (3,915) | |
Net carrying amount | 114,438 | |
Equity component, net of issuance costs | $ 55,227 | $ 57,200 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Debt Instrument | |
Effective interest rate of the liability component | 5.34% |
Notes | Convertible Debt | |
Debt Instrument | |
Coupon interest expense | $ 1,623 |
Amortization of debt discount | 3,102 |
Amortization of debt issuance costs | 155 |
Total interest expense related to the Notes | $ 4,880 |
Effective interest rate of the liability component | 12.32% |
Stock-Based Compensation - 2000
Stock-Based Compensation - 2000 Stock Plan (Details) - 2000 Stock Plan | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
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, 2020 | Sep. 30, 2018 | Mar. 18, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares available for future stock awards (in shares) | 2,800,000 | ||
2013 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
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 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Number of stock options, granted (in shares) | 0 | 0 | 0 |
Intrinsic value of options exercised | $ 1.4 | $ 1.6 | $ 1.5 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Number of Shares (in thousands) | ||||
Balance at beginning of period (in shares) | 100 | 227 | 453 | |
Exercised (in shares) | (65) | (120) | (179) | |
Expired (in shares) | (1) | (7) | (47) | |
Balance at end of period (in shares) | 34 | 100 | 227 | 453 |
Options exercisable as of end of period (in shares) | 34 | |||
Options vested and expected to vest at end of period (in shares) | 34 | |||
Weighted Average Exercised Price | ||||
Balance at beginning of period (in dollars per share) | $ 8.66 | $ 7.64 | $ 7.71 | |
Exercised (in dollars per share) | 7.72 | 6.87 | 8.61 | |
Expired (in dollars per share) | 1.74 | 6.13 | 4.65 | |
Balance at end of period (in dollars per share) | 10.57 | $ 8.66 | $ 7.64 | $ 7.71 |
Options exercisable at end of period (in dollars per share) | 10.57 | |||
Options vested and expected to vest (in dollars per share) | $ 10.57 | |||
Weighted Average Remaining Contract Term (in years) | ||||
Weighted Average Remaining Contract Term (in Years), Shares outstanding | 1 year 8 months 4 days | 2 years 2 months 23 days | 2 years 11 months 8 days | 3 years 6 months 10 days |
Weighted Average Remaining Contract Term (in Years), Options exercisable at end of period | 1 year 8 months 4 days | |||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest at end of period | 1 year 8 months 4 days | |||
Aggregate Intrinsic Value | $ 846 | $ 1,911 | $ 1,861 | $ 3,281 |
Aggregate Intrinsic Value, Options exercisable | 846 | |||
Aggregate Intrinsic Value, Options vested and expected to vest | $ 846 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - ESPP | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Discounted employee stock purchase plan percentage | 15.00% |
Fair market value percentage on employee stock purchase plan | 85.00% |
Offering period (months) | 6 months |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of ESPP (Detail) - ESPP - $ / shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 0.84% | 2.26% | 1.73% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 52.00% | 33.00% | 28.00% |
Expected term (in years) | 6 months | 6 months | 6 months |
Fair value at grant date (in dollars per share) | $ 11.20 | $ 5.17 | $ 3.65 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units and Performance-based Restricted Stock Units Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of restricted stock awards vested | $ 54.9 | $ 22.2 | $ 19.8 |
Performance-based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awards, vesting period | 3 years | ||
TSR index period | 3 years | ||
TSR index, catch-up provision period | 2 years | ||
Awards, expiration period | 10 years | ||
Approved stock reserved for future issuance (in shares) | 0.2 | ||
Performance-based Restricted Stock Units | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares vest under terms of grants | 33.00% | ||
Performance-based Restricted Stock Units | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares vest under terms of grants | 33.00% | ||
Performance-based Restricted Stock Units | Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares vest under terms of grants | 33.00% | 50.00% | 50.00% |
Minimum | Performance-based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares released under terms of grants | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 2.42% | ||
Volatility | 39.00% | ||
Maximum | Performance-based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares released under terms of grants | 150.00% | 150.00% | 250.00% |
Risk-free interest rate | 2.57% | ||
Volatility | 40.00% |
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 - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock Units Outstanding (in thousands) | |||
Balance at beginning of period (in shares) | 2,350 | 2,313 | 2,917 |
Granted (in shares) | 1,390 | 1,638 | 1,355 |
Released (in shares) | (1,613) | (1,213) | (1,137) |
Forfeited (in shares) | (170) | (388) | (822) |
Balance at end of period (in shares) | 1,957 | 2,350 | 2,313 |
Weighted Average Grant Date Fair Value | |||
Balance at beginning of period (in dollars per share) | $ 16.36 | $ 15.78 | $ 12.55 |
Granted (in dollars per share) | 28.91 | 16.09 | 22.92 |
Released (in dollars per share) | 19.60 | 15.35 | 13.99 |
Forfeited (in dollars per share) | 18.21 | 14.91 | 18.57 |
Balance at end of period (in dollars per share) | $ 22.43 | $ 16.36 | $ 15.78 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Unvested Awards (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total compensation cost for unvested | $ 0.7 |
Weighted-average period to recognize | 4 months 24 days |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total compensation cost for unvested | $ 29.3 |
Weighted-average period to recognize | 2 years 1 month 6 days |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Allocated Stock-based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 22,500 | $ 21,340 | $ 23,324 |
Accrued bonuses | 3,700 | ||
Total stock-based compensation in cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 4,094 | 5,362 | 2,656 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 4,625 | 4,145 | 2,983 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 6,160 | 4,641 | 3,524 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 7,621 | 7,192 | 14,161 |
Total stock-based compensation in operating expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 18,406 | 15,978 | 20,668 |
Subscription | Total stock-based compensation in cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 1,865 | 2,468 | 1,400 |
Professional services | Total stock-based compensation in cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 2,229 | $ 2,894 | $ 1,256 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (14,252) | $ (17,057) | $ (31,312) |
Foreign | 1,400 | (1,206) | 3,078 |
Loss before income taxes | $ (12,852) | $ (18,263) | $ (28,234) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current | |||
Federal | $ (106) | $ 0 | $ (110) |
State | 21 | 11 | 36 |
Foreign | 508 | 843 | 439 |
Total current | 423 | 854 | 365 |
Deferred | |||
Federal | 86 | (2) | (404) |
State | 70 | (19) | 12 |
Foreign | 233 | 197 | 0 |
Total deferred | 389 | 176 | (392) |
Total provision for (benefit from) income taxes | $ 812 | $ 1,030 | $ (27) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | $ (2,699) | $ (3,835) | $ (6,854) |
State tax, net of federal benefit | 21 | 11 | 36 |
Permanent differences | (195) | (443) | 950 |
Stock-based compensation | (5,163) | (1,061) | (3,761) |
Section 162(m) | 2,266 | 168 | 56 |
Foreign tax rate differential | 213 | 1,293 | (308) |
Change in valuation allowance | 7,778 | 5,814 | (13,785) |
Research and development tax credits | (1,370) | (974) | (725) |
Change in deferred tax liabilities | 69 | (19) | (392) |
Change in federal statutory tax rate | 0 | 0 | 24,828 |
Other | (108) | 76 | (72) |
Total provision for (benefit from) income taxes | $ 812 | $ 1,030 | $ (27) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure | |||||
Foreign subsidiary earnings repatriated | $ 2,500 | ||||
Foreign withholding tax paid | $ 500 | ||||
Foreign earnings repatriated in cash | $ 1,000 | ||||
Foreign withholding taxes paid | 200 | ||||
Deferred tax liability, additional non-U.S. taxes expected to be incurred | 200 | ||||
Expected foreign subsidiary earnings repatriated | 1,600 | ||||
Decrease in total valuation allowance | 1,500 | ||||
Unrecognized tax benefits | 4,655 | $ 3,961 | $ 3,469 | $ 3,143 | |
Uncertain tax positions | 100 | ||||
Federal | Research Tax Credit Carryforward | |||||
Income Tax Disclosure | |||||
Net operating loss (NOL) carry forwards | 264,400 | ||||
Research credit carry forwards | 10,800 | ||||
State | |||||
Income Tax Disclosure | |||||
Research credit carry forwards | 11,700 | ||||
State | Research Tax Credit Carryforward | |||||
Income Tax Disclosure | |||||
Net operating loss (NOL) carry forwards | $ 525,100 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred tax assets: | ||
Depreciation and amortization | $ 1,104 | $ 1,168 |
Accruals and other | 7,801 | 5,889 |
Deferred revenue | 141 | 0 |
NOL carry-forward | 69,816 | 59,705 |
Stock compensation | 2,017 | 2,610 |
Research and development tax credits | 15,975 | 13,622 |
Total deferred tax assets | 96,854 | 82,994 |
Valuation allowance | (73,372) | (74,885) |
Net deferred tax assets | 23,482 | 8,109 |
Deferred tax liabilities: | ||
Convertible senior notes | (13,967) | 0 |
Intangibles | (6,844) | (7,588) |
Capitalized contract acquisition costs | (2,070) | (561) |
Other | (1,096) | (235) |
Net deferred tax liabilities | $ (495) | $ (275) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Unrecognized tax benefits at the beginning of the period | $ 3,961 | $ 3,469 | $ 3,143 |
Gross decrease based on tax positions during the prior period | (8) | (4) | (143) |
Gross increase based on tax positions during the prior period | 0 | 23 | 94 |
Gross increase based on tax positions during the current period | 702 | 473 | 375 |
Unrecognized tax benefits at the end of the period | $ 4,655 | $ 3,961 | $ 3,469 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net loss per share attributable to common stockholders: | |||
Net loss attributable to common stockholders | $ (13,664) | $ (19,293) | $ (28,207) |
Denominator, Basic and diluted: | |||
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders (in shares) | 34,008 | 32,232 | 30,370 |
Net Loss per Share Attributable to Common Stockholders: | |||
Basic and diluted (in dollars per share) | $ (0.40) | $ (0.60) | $ (0.93) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 34 | 100 | 227 |
Performance-based RSUs and RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1,957 | 2,350 | 2,313 |
Shares issuable pursuant to the employee stock purchase plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 66 | 84 | 120 |
Convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 5,176 | 0 | 0 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) - $ / shares | Sep. 30, 2020 | May 31, 2020 |
Notes | Convertible Debt | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Initial conversion price (usd per share) | $ 33.33 | $ 33.33 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020USD ($)SegmentActivity | Sep. 30, 2019USD ($) | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of business activity | Activity | 1 | ||
Property and equipment, net | $ | $ 1,034 | $ 1,043 | |
Outside of United States | Geographic Concentration Risk | Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration of credit risk | 9.00% | 8.00% | 12.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment | ||
Total property and equipment, net | $ 1,034 | $ 1,043 |
United States | ||
Property, Plant and Equipment | ||
Total property and equipment, net | 562 | 853 |
India | ||
Property, Plant and Equipment | ||
Total property and equipment, net | $ 472 | $ 190 |
Schedule II - Valuation and q_2
Schedule II - Valuation and qualifying accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for doubtful receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 51 | $ 172 | $ 85 |
Additions Charges to Costs and Expenses | 24 | 44 | 172 |
Write-offs and Deductions | 28 | 165 | 85 |
Balance at End of Period | 47 | 51 | 172 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 74,885 | 67,879 | 78,003 |
Additions Charges to Costs and Expenses | 15,261 | 7,006 | 10,708 |
Write-offs and Deductions | 0 | 20,832 | |
Balance at End of Period | $ 73,372 | $ 74,885 | $ 67,879 |