Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2021 | Nov. 05, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2021 | ||
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 | $ 1.2 | ||
Entity Common Stock, Shares Outstanding | 36,062,024 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
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, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 165,467 | $ 200,491 |
Funds held for customers | 316 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $225 and $47 as of September 30, 2021, and 2020, respectively | 43,185 | 35,796 |
Prepaid expenses | 4,920 | 2,797 |
Other current assets | 8,442 | 7,314 |
Total current assets | 222,330 | 246,398 |
Property and equipment, net | 1,907 | 1,034 |
Operating lease right-of-use assets | 20,565 | 3,332 |
Goodwill | 65,665 | 39,283 |
Finite-Lived Intangible Assets, Net | 45,394 | 24,380 |
Other assets | 7,929 | 5,863 |
Total assets | 363,790 | 320,290 |
Current liabilities: | ||
Accounts payable | 4,802 | 3,009 |
Customer funds payable | 316 | 0 |
Accrued employee compensation | 24,662 | 17,056 |
Accrued liabilities | 4,719 | 5,237 |
Operating lease liabilities, current portion | 4,529 | 1,460 |
Deferred revenue, current portion | 57,431 | 50,904 |
Total current liabilities | 96,459 | 77,666 |
Long-term debt | 124,301 | 114,438 |
Operating lease liabilities, less current portion | 17,229 | 2,067 |
Other long-term liabilities | 2,283 | 1,448 |
Total liabilities | 240,272 | 195,619 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 36,059 and 34,821 shares issued and outstanding at September 30, 2021 and September 30, 2020, respectively | 5 | 5 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 380,528 | 351,952 |
Accumulated other comprehensive loss | (1,205) | (1,213) |
Accumulated deficit | (255,810) | (226,073) |
Total stockholders’ equity | 123,518 | 124,671 |
Total liabilities and stockholders’ equity | $ 363,790 | $ 320,290 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 225 | $ 47 |
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) | 36,059,000 | 34,821,000 |
Common Stock, shares outstanding (in shares) | 36,059,000 | 34,821,000 |
Preferred Stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred Stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | |||
Total revenues | $ 193,445 | $ 161,056 | $ 141,235 |
Cost of revenues: | |||
Total cost of revenues | 86,648 | 65,496 | 66,130 |
Gross profit | 106,797 | 95,560 | 75,105 |
Operating expenses: | |||
Research and development | 44,661 | 34,361 | 30,009 |
Sales and marketing | 43,239 | 38,979 | 32,894 |
General and administrative | 33,311 | 28,826 | 27,213 |
Total operating expenses | 121,211 | 102,166 | 90,116 |
Loss from operations | (14,414) | (6,606) | (15,011) |
Interest expense, net | 14,344 | 6,322 | 2,933 |
Other expenses (income), net | 210 | (76) | 319 |
Loss before income taxes | (28,968) | (12,852) | (18,263) |
Provision for income taxes | 769 | 812 | 1,030 |
Net loss | $ (29,737) | $ (13,664) | $ (19,293) |
Net loss per share attributable to common stockholders: | |||
Basic (usd per share) | $ (0.84) | $ (0.40) | $ (0.60) |
Diluted (usd per share) | $ (0.84) | $ (0.40) | $ (0.60) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | |||
Basic (in shares) | 35,461 | 34,008 | 32,232 |
Diluted (in shares) | 35,461 | 34,008 | 32,232 |
Subscription | |||
Revenues: | |||
Total revenues | $ 142,448 | $ 116,184 | $ 105,219 |
Cost of revenues: | |||
Total cost of revenues | 49,933 | 34,461 | 35,218 |
Professional services | |||
Revenues: | |||
Total revenues | 50,997 | 44,872 | 36,016 |
Cost of revenues: | |||
Total cost of revenues | $ 36,715 | $ 31,035 | $ 30,912 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (29,737) | $ (13,664) | $ (19,293) |
Other comprehensive income (loss), net: | |||
Unrealized gain on cash flow hedges | 38 | 33 | 5 |
Foreign currency translation gain (loss) | (30) | (77) | 111 |
Total comprehensive loss | $ (29,729) | $ (13,708) | $ (19,177) |
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, 2018 | $ 40,034 | $ 10,384 | $ 5 | $ 244,814 | $ (1,285) | $ (203,500) | $ 10,384 | |
Beginning balance (in shares) at Sep. 30, 2018 | 31,444 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
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 (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 (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 | [1] | 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 | ||||||||
Issuance of common stock upon exercise of stock options | $ 73 | 73 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 9 | 9 | ||||||
Issuance of common stock upon release of restricted stock units (in shares) | 1,091 | |||||||
Issuance of common stock under stock purchase plans | $ 4,234 | 4,234 | ||||||
Issuance of common stock under stock purchase plans (in shares) | 138 | |||||||
Stock-based compensation | 24,269 | 24,269 | ||||||
Other comprehensive income (loss) | 8 | 8 | ||||||
Net loss | (29,737) | (29,737) | ||||||
Ending balance at Sep. 30, 2021 | $ 123,518 | $ 5 | $ 380,528 | $ (1,205) | $ (255,810) | |||
Ending balance (in shares) at Sep. 30, 2021 | 36,059 | |||||||
[1] | For the year ended September 30, 2020, the additional paid-in capital included $3.7 million related to restricted stock unit grants for the portion of the bonus recorded as stock-based compensation for the year ended September 30, 2019. |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Parentheticals) $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
APIC for restricted stock | $ 3.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (29,737) | $ (13,664) | $ (19,293) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 7,972 | 5,498 | 6,790 |
Stock-based compensation | 29,963 | 22,500 | 21,340 |
Amortization of debt discount and issuance costs | 9,863 | 3,405 | 579 |
Deferred income taxes | 95 | 389 | 176 |
Amortization of capitalized contract acquisition costs | 3,114 | 2,459 | 1,781 |
Loss on early extinguishment of debt | 0 | 319 | 0 |
Other non-cash charges | 10 | (4) | (121) |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | (3,542) | (8,836) | 860 |
Prepaid expenses and other assets | (4,224) | (3,091) | (5,158) |
Accounts payable | 1,695 | 544 | 692 |
Accrued employee compensation | 1,933 | 927 | 2,015 |
Other accrued and long-term liabilities | (2,003) | (2,433) | 240 |
Deferred revenue | 4,451 | 6,393 | 549 |
Net cash provided by operating activities | 19,590 | 14,406 | 10,450 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (1,055) | (579) | (280) |
Acquisition of business | (57,849) | 0 | 0 |
Net cash used in investing activities | (58,904) | (579) | (280) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options and issuance of employee stock purchase plan | 4,307 | 4,234 | 3,870 |
Proceeds from issuance of convertible senior notes, net of issuance costs | 0 | 166,409 | 0 |
Principal payments on loan | 0 | (44,750) | (10,000) |
Net changes in customer funds payable | 316 | 0 | 0 |
Net cash provided by (used in) financing activities | 4,623 | 125,893 | (6,130) |
Effect of exchange rate changes on cash and cash equivalents | (17) | (9) | 36 |
Net increase (decrease) in cash and cash equivalents | (34,708) | 139,711 | 4,076 |
Cash and cash equivalents | |||
Beginning of period | 200,491 | 60,780 | 56,704 |
End of period | 165,783 | 200,491 | 60,780 |
Supplemental Disclosure of Cash Flow Data: | |||
Cash paid for income taxes | 936 | 488 | 993 |
Cash paid for interest | $ 4,641 | $ 1,433 | $ 3,225 |
The Company
The Company | 12 Months Ended |
Sep. 30, 2021 | |
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 2021, for example, refer to the fiscal year ended September 30, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Sep. 30, 2021 | |
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. 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, managed service support, maintenance and support on license arrangements, 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, managed service and support, and maintenance 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. 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, 2021, and 2020: As of September 30, Accounts Receivable 2021 2020 Company A 13% 12% Company B less than 10% 12% No customer represented more than 10% of the Company’s total revenues for the fiscal years ended September 30, 2021, 2020, and 2019. 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, reasonable and supportable forecasts of future 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 $6.0 million and $2.0 million is recorded as unbilled receivables and is included in accounts receivables in the Consolidated Balance Sheets as of September 30, 2021, and 2020, 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 adopted ASC Topic 842, Leases, on October 1, 2019, using the alternative modified transition method. 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, 2021, and 2020. 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, customer relationships, non-compete agreements, and trade name 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 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 $0.3 million, $0.2 million, and $0.2 million in advertising and promotions costs during the fiscal years ended September 30, 2021, 2020, and 2019, 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 $0.8 million, $0.6 million, and $0.6 million for the years ended September 30, 2021, 2020, and 2019, respectively. Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to the employees and directors 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 purchase right granted under the 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, risk-free interest rates, and expected dividends. The fair value of RSUs is determined based on the closing quoted price of the Company’s common stock on the grant date. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. The Company grants performance-based restricted stock units (“PB-RSUs”) to executives and leadership team and has determined no forfeiture rate would be applied to the PB-RSUs. PB-RSUs have vesting conditions either based on pre-established performance goals of the Company or the performance of the Company’s total shareholder return relative to that of the Russell 3000 Index. For the former, the fair value is determined based on the closing quoted price of the Company’s common stock on the grant date and the fair value is recognized using the graded-vesting attribution method over the requisite service period. For the latter, the Company uses a Monte Carlo simulation model to determine the fair value on the grant date and the fair value is recognized using the graded-vesting attribution method over the requisite service period. Income Taxes The Company accounts for income taxes in accordance with the FASB ASC No. 740— Accounting for Income Taxes (“ASC 740”). The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, tax benefits and deductions and in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Significant changes to these estimates may result in an increase or decrease to our tax provision in the subsequent period when such a change in estimate occurs. The Company regularly assesses the likelihood that its deferred income tax assets will be realized from future taxable income based on the realization criteria set forth in ASC 740. To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies. In the event the Company determines that 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. As of September 30, 2021, and 2020, the Company had gross deferred income tax assets, related primarily to net operating loss (“NOL”) carry forwards, stock compensation, accruals and reserves that are not currently deductible, depreciation and amortization, and research and development tax credits of $107.6 million and $96.9 million, respectively, which have been fully offset by valuation allowance and deferred tax liabilities. Utilization of these net loss carry forwards is subject to the limitations of IRC Section 382 (“Section 382 Limitations”). A Section 382 study was performed in fiscal year 2013 and subsequent Section 382 analyses have been performed. It is determined that there are no material limitations of IRC Section 382. However, in the future, some portion or all of these carry forwards may not be available to offset any future taxable income. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment or receipt of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Segment The Company has one operating segment with one business activity: developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information as presented on a consolidated basis. Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments and unrealized gain (loss) on cash flow hedges. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements 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 adopted this guidance prospectively in the first quarter of fiscal year 2021 and it did not have a material impact on the 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 adopted this guidance in the first quarter of fiscal year 2021 and it did not have a material impact on the Consolidated Financial Statements. Recent Accounting Pronouncements Not Yet Adopted 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 does not expect the new standard to have a material impact on its Consolidated Financial Statements. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Sep. 30, 2021 | |
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 15, 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, 2021 2020 Accounts receivable, net $ 43,185 $ 35,796 Contract asset $ 4,891 $ 4,482 Deferred revenue $ 57,796 $ 51,786 Capitalized contract acquisition costs $ 9,539 $ 7,506 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. The additions, write-offs and deductions to the allowance for doubtful accounts were immaterial for the fiscal years ended September 30, 2021, 2020, and 2019. Contract Asset Contract asset represents revenue that has been recognized for satisfied performance obligations for which the Company does not have an unconditional right to consideration. Deferred Revenue Deferred revenue, which is a contract liability, consists of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. The non-current portion of deferred revenue is included in other long-term liabilities in the Consolidated Balance Sheets. During the year ended September 30, 2021, the Company recognized $50.9 million of revenue that was included in the deferred revenue balance at the beginning of the period. Capitalized Contract Acquisition Costs As of September 30, 2021, the current and non-current portions of capitalized contract acquisition costs were $3.3 million and $6.3 million, respectively. The Company amortized $3.1 million. $2.5 million, and $1.8 million of contract acquisition costs during the years ended September 30, 2021, 2020, and 2019, respectively. For the years ended September 30, 2021, 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, 2021, and 2020. 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, 2021, the aggregate amount of the transaction price allocated to performance obligations either unsatisfied or partially unsatisfied was $220.7 million, 49% 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, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases facilities under noncancelable operating leases with lease terms between three years and 11 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 $4.6 million and $3.2 million for the years ended September 30, 2021, and 2020, respectively. Short-term lease costs, variable lease costs, and sublease income were immaterial for the years ended September 30, 2021, and 2020. Rent expenses recognized prior to the adoption of Topic 842 were $3.2 million during the year ended September 30, 2019. Cash flow information related to operating leases is as follows (in thousands): Fiscal Years Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 2,789 $ 3,545 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 20,593 $ (375) Operating lease ROU assets obtained in exchange for new operating lease liabilities during the year ended September 30, 2021 are primarily related to the Company’s headquarters lease and the lease for new office space in India that commenced during the period. The Company early terminated certain leases during the year ended September 30, 2020 which resulted in a reduction of ROU assets and operating lease liabilities of $1.0 million. The weighted-average remaining lease terms were 4.5 years and 4.0 years as of September 30, 2021, and 2020, respectively. The weighted-average discount rates were 2.9% and 5.5% as of September 30, 2021, and 2020, respectively. Maturities of operating lease liabilities as of September 30, 2021 are as follows (in thousands): Fiscal Year 2022 $ 5,077 2023 5,186 2024 5,037 2025 4,679 2026 2,669 2027 and thereafter 575 Total operating lease payments 23,223 Less imputed interest 1,465 Total operating lease liabilities $ 21,758 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The table below sets forth the Company’s cash equivalents as of September 30, 2021, and 2020, 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, 2021 Level 1: Money market funds $ 40,755 $ — $ — $ 40,755 $ 40,755 US Treasury securities 84,997 — — 84,997 84,997 Total $ 125,752 $ — $ — $ 125,752 $ 125,752 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 The Company’s financial instruments not measured at fair value on a recurring basis include cash, funds held for customers, accounts receivable, accounts payable, customer funds 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 8 for the fair value measurement of the Company’s derivative contracts and Note 10 for the fair value measurement of the Company’s convertible senior notes. |
Acquisition, Goodwill, and Inta
Acquisition, Goodwill, and Intangible Assets | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisition, Goodwill, and Intangible Assets | Acquisition, Goodwill, and Intangible Assets Acquisition On December 31, 2020, the Company acquired certain assets, properties and rights and certain liabilities and obligations from Deloitte & Touche LLP’s pricing and contracting solutions business for a contractual purchase price of $60.0 million subject to net working capital adjustments (the “Acquisition”). The acquired business operates primarily in the same markets as the Company’s existing operations. The reason for the Acquisition was to increase the Company’s addressable market and expand the opportunity to sell existing Model N products. This Acquisition has been accounted for as a business combination. The Company has included these results in its Consolidated Financial Statements since the date of Acquisition. The Company incurred $2.5 million of acquisition-related expense during the year ended September 30, 2021, which was recorded as general and administrative expenses. The total purchase consideration was $57.8 million and reflected a $2.2 million net working capital adjustment from the contractual purchase price. The original estimate was $0.1 million in the first quarter of fiscal year 2021 which resulted in a measurement period adjustment of $2.1 million. The Company paid the entire purchase consideration in cash during the year ended September 30, 2021. The purchase price was allocated to assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill. The following table sets forth the allocation of the purchase price in connection with the Acquisition (in thousands): Acquisition Date Fair Value Accounts receivable $ 3,844 Property and equipment, net 511 Operating lease right-of-use assets 2,764 Goodwill 26,382 Intangible assets 28,210 Total assets acquired 61,711 Operating lease liabilities, current portion 656 Deferred revenue, current portion 1,549 Operating lease liabilities, less current portion 1,657 Total liabilities assumed 3,862 Total purchase price $ 57,849 Intangible assets included customer relationships of $15.5 million, developed technology of $10.2 million, non-compete agreements of $1.6 million, and trade name of $0.9 million, which are amortized on a straight-line basis over 15 years, 6 years, 5 years, and 3 years, respectively, and over a weighted average period of 10.8 years. Fair value of the customer relationships was estimated using a multi-period excess earnings valuation method and fair value of the developed technology was estimated using a relief from royalty valuation method. The Company applied significant judgment in estimating the fair value of the customer relationships and developed technology intangible assets, which involved the use of significant assumptions. Significant assumptions used in the valuation of customer relationships intangible asset included subscription revenue growth rates, research and development expenses as percentage of revenue, discount rate, subscription gross margins, and customer attrition rate. Significant assumptions used in the valuation of developed technology intangible asset included royalty rate, obsolescence rate, and discount rate. Goodwill is comprised of expected synergies for the combined operations and the assembled workforce acquired in the Acquisition. This goodwill is deductible for income tax purposes. The Acquisition contributed $18.5 million to the Company’s revenues and increased operating loss, which approximated net loss, by $6.2 million since the date of Acquisition. The Company has not presented the supplemental pro forma information for revenue and earnings related to the Acquisition, as it is deemed impracticable to determine and disclose this information, due to the unavailability of the information provided to the Company by Deloitte & Touche LLP, management’s inability to reasonably estimate the amounts from the carve out business and differing fiscal year-ends. Goodwill The following table summarizes the changes in the carrying amount of goodwill (in thousands): Balance at September 30, 2020 $ 39,283 Addition from Acquisition 26,382 Balance at September 30, 2021 $ 65,665 Intangible Assets The following table summarizes the gross intangible assets, accumulated amortization, and net intangible assets balances as of September 30, 2021: Estimated Useful Gross Carrying Accumulated Net Carrying (in thousands) Intangible Assets: Customer relationships 3-15 $ 52,109 $ (19,092) $ 33,017 Developed technology 5-6 22,333 (11,954) 10,379 Non-compete agreements 5 1,600 (240) 1,360 Trade name 3 850 (212) 638 Total $ 76,892 $ (31,498) $ 45,394 The following table summarizes the gross intangible assets, accumulated amortization, and net intangible assets balances as of September 30, 2020: Estimated Useful Gross Carrying Accumulated Net Carrying (in thousands) Intangible Assets: Customer relationships 3-10 $ 36,599 $ (14,758) $ 21,841 Developed technology 5-6 12,083 (9,544) 2,539 Total $ 48,682 $ (24,302) $ 24,380 The Company recorded amortization expense related to the acquired intangible assets of $7.2 million, $4.8 million and $5.5 million during the fiscal years ended September 30, 2021, 2020, and 2019, respectively. Estimated future amortization expense for the intangible assets as of September 30, 2021 is as follows: Fiscal Years Ending (in thousands) 2022 $ 8,032 2023 7,186 2024 6,691 2025 6,620 2026 6,069 2027 and thereafter 10,796 Total future amortization $ 45,394 |
Cash, Cash Equivalents, and Fun
Cash, Cash Equivalents, and Funds Held for Customers | 12 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Funds Held for Customers | Cash, Cash Equivalents, and Funds Held for CustomersAs part of the acquisition of Deloitte & Touche LLP’s pricing and contracting solutions business, the Company now provides payment processing services to some customers whereby the Company has contractual obligations to remit funds to various third parties on behalf of these customers. Funds received from these customers represent cash and cash equivalents and are reflected in the “Funds held for customers” line item on the Consolidated Balance Sheets. The table below reconciles the cash and cash equivalents and funds held for customers as reported on the Consolidated Balance Sheets to the cash and cash equivalents on the Consolidated Statements of Cash Flows (in thousands): As of September 30, 2021 2020 Cash and cash equivalents $ 165,467 $ 200,491 Funds held for customers 316 — Total cash and cash equivalents $ 165,783 $ 200,491 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021, 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, 2021, and 2020. 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 $6.8 million and $5.5 million as of September 30, 2021, and 2020, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Components of property and equipment consisted of the following: As of September 30, 2021 2020 (in thousands) Computer software and equipment $ 5,542 $ 6,367 Furniture and fixtures 1,257 1,143 Leasehold improvements 481 1,012 Software development costs 7,801 7,801 Total property and equipment $ 15,081 $ 16,323 Less: Accumulated depreciation and amortization (13,174) (15,289) Total Property and equipment, net $ 1,907 $ 1,034 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In May 2020, the Company issued $172.5 million aggregate principal amount of 2.625% convertible senior notes in a private placement, including $22.5 million which represents the exercise in full of the initial purchasers’ option to purchase additional notes. The net proceeds from the issuance of the Notes was $166.4 million, net of initial purchasers’ discounts and debt issuance costs of $6.1 million. The Company used $40.0 million of the net proceeds to repay in full the debt outstanding under, and terminated the Credit Agreement dated May 4, 2018, as amended, by and among the Company, Wells Fargo, as administrative agent, and the lenders party thereto. 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, 2021, 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, 2021. 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 amounts of the liability and equity components for the Notes were as follows (in thousands): As of September 30, 2021 2020 Liability component: Principal amount $ 172,500 $ 172,500 Unamortized discount (44,803) (54,147) Unamortized issuance costs (3,396) (3,915) Net carrying amount $ 124,301 $ 114,438 Equity component, net of issuance costs $ 55,227 $ 55,227 The following table sets forth the interest expense recognized related to the Notes (in thousands): Fiscal Years Ended September 30, 2021 2020 Coupon interest expense $ 4,528 $ 1,623 Amortization of debt discount 9,344 3,102 Amortization of debt issuance costs 519 155 Total interest expense related to the Notes $ 14,391 $ 4,880 Effective interest rate of the liability component 12.32 % 12.32 % The unamortized debt discount and debt issuance costs will be amortized over 44 months as of September 30, 2021. As of September 30, 2021, the total estimated fair value of the Notes was approximately $218.8 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, 2021 | |
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, 2021, and 2020. 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, 2021 | |
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 the 2010 Plan. 2010 Equity Incentive Plan On June 15, 2010, the Board adopted the 2010 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 the 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 2000 Plan but cease to exist for any reason other than exercise of such options; and (c) shares that were issued under the 2000 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 (the “2013 Plan”) in February 2013, the 2010 Plan was terminated and all shares of common stock previously reserved but unissued were transferred to the 2013 Plan. 2013 Equity Incentive Plan In February 2013, the Board adopted the 2013 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. 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. In connection with the adoption of the 2021 Equity Incentive Plan (the “2021 Plan”) in February 2021, the 2013 Plan was terminated and all shares of common stock previously reserved but unissued were transferred to the 2021 Plan. 2021 Equity Incentive Plan The Board adopted the 2021 Plan in December 2020, and the stockholders approved the 2021 Plan in February 2021. The 2021 Plan became effective on February 19, 2021 and will terminate on February 18, 2031. The 2021 Plan serves as the successor equity compensation plan to the 2013 Plan. No further grants will be made under the 2013 Plan, and the balances under the 2013 Plan have been transferred to the 2021 Plan. The 2021 Plan was approved with a reserve of 3.9 million shares, which consists of 1.7 million shares of the Company’s common stock reserved for future issuance under the 2021 Plan and shares of common stock previously reserved but unissued under the 2013 Plan. The 2021 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, 2021, 3.6 million shares were available for future stock awards under the 2021 Plan 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, 2021, 2020, and 2019. 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, 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 Exercised (9) 8.20 Balance at September 30, 2021 25 $ 11.41 0.82 $ 560 Options exercisable as of September 30, 2021 25 $ 11.41 0.82 $ 560 Options vested and expected to vest as of 25 $ 11.41 0.82 $ 560 The intrinsic value of options exercised during fiscal years ended September 30, 2021, 2020, and 2019 was $0.2 million, $1.4 million, and $1.6 million, respectively. Employee Stock Purchase Plan The 2021 Employee Stock Purchase Plan (the “ESPP”) became effective on February 19, 2021, and replaced the 2013 Employee Stock Purchase Plan. 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. 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, 2021 2020 2019 Risk-free interest rate 0.05 % 0.84 % 2.26 % Dividend yield — % — % — % Volatility 41 % 52 % 33 % Expected term (in years) 0.50 0.50 0.50 Fair value at grant date $ 9.68 $ 11.20 $ 5.17 Restricted Stock Units and Performance-based Restricted Stock Units During the years ended September 30, 2021, 2020, and 2019, the Compensation Committee of the Board approved grants of performance-based restricted stock units to the Company’s certain senior officers, including the Chief Executive Officer and the Chief Financial Officer. For the performance-based restricted stock units granted in fiscal year 2021, under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 200% 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. The grant date fair values of the performance-based restricted stock units granted in fiscal year 2021 were determined using Monte-Carlo simulation model with risk-free interest rate of 0.16%–0.32% and volatility of 45%–51%. 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. As of September 30, 2021, 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, 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 Granted 1,200 36.00 Released (1,091) 22.79 Forfeited (318) 27.88 Balance at September 30, 2021 1,748 $ 30.54 The total fair value of restricted stock and performance based restricted stock awards vested for the years ended September 30, 2021, 2020, and 2019, was $41.1 million, $54.9 million, and $22.2 million, respectively. The following table summarizes certain information of the unvested awards as of September 30, 2021: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 39.9 $ 0.6 Weighted-average period to recognize (in years) 2.2 0.4 (1): Includes restricted stock units and performance-based restricted stock awards. Stock-based Compensation Stock-based compensation recorded in the Consolidated Statements of Operations is as follows: Fiscal Years Ended September 30, 2021 2020 2019 (in thousands) Cost of revenues: Subscription $ 3,658 $ 1,865 $ 2,468 Professional Services 4,032 2,229 2,894 Total stock-based compensation in cost of revenues 7,690 4,094 5,362 Operating expenses: Research and development 6,051 4,625 4,145 Sales and marketing 7,541 6,160 4,641 General and administrative 8,681 7,621 7,192 Total stock-based compensation in operating expenses 22,273 18,406 15,978 Total stock-based compensation $ 29,963 $ 22,500 $ 21,340 For the fiscal year ended September 30, 2021, and 2019, the total stock-based compensation included $5.7 million and $3.7 million related to bonus, respectively, which was recorded in the accrued employee compensation line item in the |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes are as follows: Fiscal Years Ended September 30, 2021 2020 2019 (in thousands) Domestic $ (30,734) $ (14,252) $ (17,057) Foreign 1,766 1,400 (1,206) Loss before taxes $ (28,968) $ (12,852) $ (18,263) The components of the provision for income taxes are as follows: Fiscal Years Ended September 30, 2021 2020 2019 (in thousands) Current Federal $ — $ (106) $ — State 84 21 11 Foreign 589 508 843 $ 673 $ 423 $ 854 Deferred Federal $ 67 $ 86 $ (2) State 130 70 (19) Foreign (101) 233 197 $ 96 $ 389 $ 176 Total provision for income taxes $ 769 $ 812 $ 1,030 Reconciliation of the statutory federal income tax to the Company’s effective tax is as follows: Fiscal Years Ended September 30, 2021 2020 2019 (in thousands) Tax at statutory federal rate $ (6,083) $ (2,699) $ (3,835) State tax, net of federal benefit 84 21 11 Permanent differences (320) (195) (443) Stock-based compensation (2,757) (5,163) (1,061) Section 162(m) 2,389 2,266 168 Foreign tax rate differential 61 213 1,293 Change in valuation allowance 8,459 7,778 5,814 Research and development tax credits (1,013) (1,370) (974) Change in deferred tax liabilities (84) 69 (19) Other 33 (108) 76 Total provision for income taxes $ 769 $ 812 $ 1,030 The current United States federal income tax legislation generally allows companies to make distributions of previously taxed 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, 2021, the Company repatriated $1.5 million of foreign subsidiary earnings to the U.S. in the form of cash and paid foreign withholding taxes of $0.2 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. 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. As of September 30, 2021, the Company recorded a deferred tax liability of $0.3 million for the additional non-U.S. taxes that are expected to be incurred related to the repatriation of $2.2 million in foreign subsidiary earnings. Deferred tax assets and liabilities consisted of the following: As of September 30, 2021 2020 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,287 $ 1,104 Accruals and other 15,531 7,801 Deferred revenue 243 141 NOL carry-forward 69,388 69,816 Stock compensation 3,261 2,017 Research and development tax credits 17,927 15,975 Total deferred tax assets $ 107,637 $ 96,854 Valuation allowance (83,444) (73,372) Net deferred tax assets $ 24,193 $ 23,482 Deferred tax liabilities: Convertible senior notes $ (11,501) $ (13,967) Intangibles (6,189) (6,844) Capitalized contract acquisition costs (2,624) (2,070) Other (4,254) (1,096) Net deferred tax liabilities $ (375) $ (495) 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, 2021, and 2020, due to the uncertainty of realizing future tax benefits from its net operating loss carry-forwards and other deferred tax assets. The net increase in the total valuation allowance for the year ended September 30, 2021 was approximately $10.1 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, 2021, the Company has federal and state NOL carry-forwards of approximately $262.0 million and $570.8 million, respectively. The federal NOL and the state NOLs began expiring in 2021 and 2020. As of September 30, 2021, the Company had federal and state research and development credit carry-forwards of approximately $12.3 million and $12.9 million, respectively. The federal research and development credit carry-forwards began expiring in 2021. 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, 2021 and determined there would be no effect on the NOL deferred tax asset if ownership changes occurred. As of September 30, 2021, the Company had unrecognized tax benefits of approximately $5.1 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, 2021, 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, 2021 2020 2019 (in thousands) Unrecognized tax benefits at the beginning of the period $ 4,655 $ 3,961 $ 3,469 Gross decrease based on tax positions during the prior period (179) (8) (4) Gross increase based on tax positions during the prior period — — 23 Gross increase based on tax positions during the 642 702 473 Unrecognized tax benefits at the end of the period $ 5,118 $ 4,655 $ 3,961 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2019 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (29,737) $ (13,664) $ (19,293) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net 35,461 34,008 32,232 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.84) $ (0.40) $ (0.60) 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, 2021 2020 2019 (in thousands) Stock options 25 34 100 Performance-based RSUs and RSUs 1,748 1,957 2,350 Shares issuable pursuant to the employee stock purchase plan 91 66 84 Convertible senior notes 5,176 5,176 — Since the Company expects to settle the principal amount of its Notes in cash and any excess in cash or shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $33.33 per share for the Notes. |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 30, 2021 | |
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 7%, 9%, and 8% of total revenues for the fiscal years ended September 30, 2021, 2020, and 2019, respectively. Long-Lived Assets The following table sets forth the Company’s property and equipment, net by geographic region: As of September 30, 2021 2020 (in thousands) United States $ 1,374 $ 562 India 533 472 Total property and equipment, net $ 1,907 $ 1,034 |
Schedule II - Valuation and qua
Schedule II - Valuation and qualifying accounts | 12 Months Ended |
Sep. 30, 2021 | |
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 valuation allowance for deferred tax assets for the fiscal years ended September 30, 2021, 2020, and 2019, respectively. Description Balance at Additions Write-offs Balance at Valuation allowance for deferred tax For the Year Ended September 30, 2021 $ 73,372 14,332 4,260 $ 83,444 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
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, managed service support, maintenance and support on license arrangements, 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, managed service and support, and maintenance 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. |
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 |
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, reasonable and supportable forecasts of future 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 $6.0 million and $2.0 million is recorded as unbilled receivables and is included in accounts receivables in the Consolidated Balance Sheets as of September 30, 2021, and 2020, 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 adopted ASC Topic 842, Leases, on October 1, 2019, using the alternative modified transition method. 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, 2021, and 2020. 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. 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 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 purchase right granted under the 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, 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 |
Segment | Segment The Company has one operating segment with one business activity: developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information as presented on a consolidated basis. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments and unrealized gain (loss) on cash flow hedges. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements 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 adopted this guidance prospectively in the first quarter of fiscal year 2021 and it did not have a material impact on the 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 adopted this guidance in the first quarter of fiscal year 2021 and it did not have a material impact on the Consolidated Financial Statements. Recent Accounting Pronouncements Not Yet Adopted 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 does not expect the new standard to have a material impact on its Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021, and 2020: As of September 30, Accounts Receivable 2021 2020 Company A 13% 12% Company B less than 10% 12% |
Property Plant and Equipment Useful Life | 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 Components of property and equipment consisted of the following: As of September 30, 2021 2020 (in thousands) Computer software and equipment $ 5,542 $ 6,367 Furniture and fixtures 1,257 1,143 Leasehold improvements 481 1,012 Software development costs 7,801 7,801 Total property and equipment $ 15,081 $ 16,323 Less: Accumulated depreciation and amortization (13,174) (15,289) Total Property and equipment, net $ 1,907 $ 1,034 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 Accounts receivable, net $ 43,185 $ 35,796 Contract asset $ 4,891 $ 4,482 Deferred revenue $ 57,796 $ 51,786 Capitalized contract acquisition costs $ 9,539 $ 7,506 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Operating Lease Cost and Cash Flow Information | Cash flow information related to operating leases is as follows (in thousands): Fiscal Years Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 2,789 $ 3,545 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 20,593 $ (375) |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of September 30, 2021 are as follows (in thousands): Fiscal Year 2022 $ 5,077 2023 5,186 2024 5,037 2025 4,679 2026 2,669 2027 and thereafter 575 Total operating lease payments 23,223 Less imputed interest 1,465 Total operating lease liabilities $ 21,758 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021, and 2020, 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, 2021 Level 1: Money market funds $ 40,755 $ — $ — $ 40,755 $ 40,755 US Treasury securities 84,997 — — 84,997 84,997 Total $ 125,752 $ — $ — $ 125,752 $ 125,752 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 |
Acquisition, Goodwill, and In_2
Acquisition, Goodwill, and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the allocation of the purchase price in connection with the Acquisition (in thousands): Acquisition Date Fair Value Accounts receivable $ 3,844 Property and equipment, net 511 Operating lease right-of-use assets 2,764 Goodwill 26,382 Intangible assets 28,210 Total assets acquired 61,711 Operating lease liabilities, current portion 656 Deferred revenue, current portion 1,549 Operating lease liabilities, less current portion 1,657 Total liabilities assumed 3,862 Total purchase price $ 57,849 |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill (in thousands): Balance at September 30, 2020 $ 39,283 Addition from Acquisition 26,382 Balance at September 30, 2021 $ 65,665 |
Schedule of Intangible Assets | The following table summarizes the gross intangible assets, accumulated amortization, and net intangible assets balances as of September 30, 2021: Estimated Useful Gross Carrying Accumulated Net Carrying (in thousands) Intangible Assets: Customer relationships 3-15 $ 52,109 $ (19,092) $ 33,017 Developed technology 5-6 22,333 (11,954) 10,379 Non-compete agreements 5 1,600 (240) 1,360 Trade name 3 850 (212) 638 Total $ 76,892 $ (31,498) $ 45,394 The following table summarizes the gross intangible assets, accumulated amortization, and net intangible assets balances as of September 30, 2020: Estimated Useful Gross Carrying Accumulated Net Carrying (in thousands) Intangible Assets: Customer relationships 3-10 $ 36,599 $ (14,758) $ 21,841 Developed technology 5-6 12,083 (9,544) 2,539 Total $ 48,682 $ (24,302) $ 24,380 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense for the intangible assets as of September 30, 2021 is as follows: Fiscal Years Ending (in thousands) 2022 $ 8,032 2023 7,186 2024 6,691 2025 6,620 2026 6,069 2027 and thereafter 10,796 Total future amortization $ 45,394 |
Cash, Cash Equivalents, and F_2
Cash, Cash Equivalents, and Funds Held for Customers (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restrictions on Cash and Cash Equivalents | The table below reconciles the cash and cash equivalents and funds held for customers as reported on the Consolidated Balance Sheets to the cash and cash equivalents on the Consolidated Statements of Cash Flows (in thousands): As of September 30, 2021 2020 Cash and cash equivalents $ 165,467 $ 200,491 Funds held for customers 316 — Total cash and cash equivalents $ 165,783 $ 200,491 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule 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 Components of property and equipment consisted of the following: As of September 30, 2021 2020 (in thousands) Computer software and equipment $ 5,542 $ 6,367 Furniture and fixtures 1,257 1,143 Leasehold improvements 481 1,012 Software development costs 7,801 7,801 Total property and equipment $ 15,081 $ 16,323 Less: Accumulated depreciation and amortization (13,174) (15,289) Total Property and equipment, net $ 1,907 $ 1,034 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Term Loan and Promissory Notes and Total Interest Expense Recognized | The net carrying amounts of the liability and equity components for the Notes were as follows (in thousands): As of September 30, 2021 2020 Liability component: Principal amount $ 172,500 $ 172,500 Unamortized discount (44,803) (54,147) Unamortized issuance costs (3,396) (3,915) Net carrying amount $ 124,301 $ 114,438 Equity component, net of issuance costs $ 55,227 $ 55,227 The following table sets forth the interest expense recognized related to the Notes (in thousands): Fiscal Years Ended September 30, 2021 2020 Coupon interest expense $ 4,528 $ 1,623 Amortization of debt discount 9,344 3,102 Amortization of debt issuance costs 519 155 Total interest expense related to the Notes $ 14,391 $ 4,880 Effective interest rate of the liability component 12.32 % 12.32 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 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 Exercised (9) 8.20 Balance at September 30, 2021 25 $ 11.41 0.82 $ 560 Options exercisable as of September 30, 2021 25 $ 11.41 0.82 $ 560 Options vested and expected to vest as of 25 $ 11.41 0.82 $ 560 |
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, 2021 2020 2019 Risk-free interest rate 0.05 % 0.84 % 2.26 % Dividend yield — % — % — % Volatility 41 % 52 % 33 % Expected term (in years) 0.50 0.50 0.50 Fair value at grant date $ 9.68 $ 11.20 $ 5.17 |
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, 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 Granted 1,200 36.00 Released (1,091) 22.79 Forfeited (318) 27.88 Balance at September 30, 2021 1,748 $ 30.54 |
Summary of Unvested Awards | The following table summarizes certain information of the unvested awards as of September 30, 2021: Restricted Stock Units (1) ESPP Total compensation cost for unvested (in millions) $ 39.9 $ 0.6 Weighted-average period to recognize (in years) 2.2 0.4 (1): Includes restricted stock units and performance-based restricted stock awards. |
Stock-based Compensation | Stock-based compensation recorded in the Consolidated Statements of Operations is as follows: Fiscal Years Ended September 30, 2021 2020 2019 (in thousands) Cost of revenues: Subscription $ 3,658 $ 1,865 $ 2,468 Professional Services 4,032 2,229 2,894 Total stock-based compensation in cost of revenues 7,690 4,094 5,362 Operating expenses: Research and development 6,051 4,625 4,145 Sales and marketing 7,541 6,160 4,641 General and administrative 8,681 7,621 7,192 Total stock-based compensation in operating expenses 22,273 18,406 15,978 Total stock-based compensation $ 29,963 $ 22,500 $ 21,340 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2019 (in thousands) Domestic $ (30,734) $ (14,252) $ (17,057) Foreign 1,766 1,400 (1,206) Loss before taxes $ (28,968) $ (12,852) $ (18,263) |
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows: Fiscal Years Ended September 30, 2021 2020 2019 (in thousands) Current Federal $ — $ (106) $ — State 84 21 11 Foreign 589 508 843 $ 673 $ 423 $ 854 Deferred Federal $ 67 $ 86 $ (2) State 130 70 (19) Foreign (101) 233 197 $ 96 $ 389 $ 176 Total provision for income taxes $ 769 $ 812 $ 1,030 |
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, 2021 2020 2019 (in thousands) Tax at statutory federal rate $ (6,083) $ (2,699) $ (3,835) State tax, net of federal benefit 84 21 11 Permanent differences (320) (195) (443) Stock-based compensation (2,757) (5,163) (1,061) Section 162(m) 2,389 2,266 168 Foreign tax rate differential 61 213 1,293 Change in valuation allowance 8,459 7,778 5,814 Research and development tax credits (1,013) (1,370) (974) Change in deferred tax liabilities (84) 69 (19) Other 33 (108) 76 Total provision for income taxes $ 769 $ 812 $ 1,030 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: As of September 30, 2021 2020 (in thousands) Deferred tax assets: Depreciation and amortization $ 1,287 $ 1,104 Accruals and other 15,531 7,801 Deferred revenue 243 141 NOL carry-forward 69,388 69,816 Stock compensation 3,261 2,017 Research and development tax credits 17,927 15,975 Total deferred tax assets $ 107,637 $ 96,854 Valuation allowance (83,444) (73,372) Net deferred tax assets $ 24,193 $ 23,482 Deferred tax liabilities: Convertible senior notes $ (11,501) $ (13,967) Intangibles (6,189) (6,844) Capitalized contract acquisition costs (2,624) (2,070) Other (4,254) (1,096) Net deferred tax liabilities $ (375) $ (495) |
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, 2021 2020 2019 (in thousands) Unrecognized tax benefits at the beginning of the period $ 4,655 $ 3,961 $ 3,469 Gross decrease based on tax positions during the prior period (179) (8) (4) Gross increase based on tax positions during the prior period — — 23 Gross increase based on tax positions during the 642 702 473 Unrecognized tax benefits at the end of the period $ 5,118 $ 4,655 $ 3,961 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | Fiscal Years Ended September 30, 2021 2020 2019 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (29,737) $ (13,664) $ (19,293) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net 35,461 34,008 32,232 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.84) $ (0.40) $ (0.60) |
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, 2021 2020 2019 (in thousands) Stock options 25 34 100 Performance-based RSUs and RSUs 1,748 1,957 2,350 Shares issuable pursuant to the employee stock purchase plan 91 66 84 Convertible senior notes 5,176 5,176 — |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 (in thousands) United States $ 1,374 $ 562 India 533 472 Total property and equipment, net $ 1,907 $ 1,034 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Estimates - Narrative (Details) | 12 Months Ended | |||
Sep. 30, 2021USD ($)segmentreportingUnit | Sep. 30, 2020USD ($)reportingUnit | Sep. 30, 2019USD ($) | May 31, 2020USD ($) | |
Significant Accounting Policies and Estimates | ||||
Capitalized contracts amortization period | 5 years | |||
Unbilled receivables recorded in balance sheets | $ 6,000,000 | $ 2,000,000 | ||
Reporting units (reporting units) | reportingUnit | 1 | 1 | ||
Goodwill impairments | $ 0 | $ 0 | $ 0 | |
Impairment charges on long-lived assets | 0 | 0 | 0 | |
Advertising and promoting costs | 300,000 | 200,000 | 200,000 | |
Employer contribution to employee benefit plan | 800,000 | 600,000 | $ 600,000 | |
Deferred tax assets fully offset by valuation allowance | $ 107,637,000 | $ 96,854,000 | ||
Number of operating segment | segment | 1 | |||
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 (years) | 3 years | |||
Foreign Currency Exchange Contracts | Cash Flow Hedging | ||||
Significant Accounting Policies and Estimates | ||||
Foreign exchange contract terms | 12 months | 12 months | 12 months | |
Minimum | ||||
Significant Accounting Policies and Estimates | ||||
Revenue recognition term (years) | 1 year | |||
Estimated useful life (years) | 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 (years) | 15 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 (Details) - Accounts Receivable - Customer concentration risk | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Company A | ||
Concentration Risk | ||
Concentration of credit risk (equal to or less than) | 13.00% | 12.00% |
Company B | ||
Concentration Risk | ||
Concentration of credit risk (equal to or less than) | 10.00% | 12.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Estimates - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Sep. 30, 2021 | |
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, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 43,185 | $ 35,796 |
Contract asset | 4,891 | 4,482 |
Deferred revenue | 57,796 | 51,786 |
Capitalized contract acquisition costs | $ 9,539 | $ 7,506 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized that was included in deferred revenue at beginning of period | $ 50,900,000 | ||
Capitalized contract acquisition costs, current portion | 3,300,000 | ||
Capitalized contract acquisition costs, non-current portion | 6,300,000 | ||
Amortization of capitalized contract acquisition costs | 3,114,000 | $ 2,459,000 | $ 1,781,000 |
Impairment loss related to contract balances | $ 0 | $ 0 | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations not satisfied or partially satisfied | $ 220.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 49.00% |
Remaining performance obligation, expected timing of satisfaction | 12 months |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description | |||
Operating lease costs | $ 4.6 | $ 3.2 | |
Rent expenses | $ 3.2 | ||
Reduction of ROU assets and operating lease liabilities | $ 1 | ||
Operating lease, weighted average remaining lease term | 4 years 6 months | 4 years | |
Weighted-average discount rate (percent) | 2.90% | 5.50% | |
Minimum | |||
Lessee, Lease, Description | |||
Noncancelable operating leases term | 3 years | ||
Maximum | |||
Lessee, Lease, Description | |||
Noncancelable operating leases term | 11 years |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 2,789 | $ 3,545 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities | $ 20,593 | $ (375) |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Fiscal Year | |
2022 | $ 5,077 |
2023 | 5,186 |
2024 | 5,037 |
2025 | 4,679 |
2026 | 2,669 |
2027 and thereafter | 575 |
Total operating lease payments | 23,223 |
Less imputed interest | 1,465 |
Total operating lease liabilities | $ 21,758 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value Measurement Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | $ 0 | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Details) - Level 1 - Fair Value Measurement Recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amortized Cost | $ 125,752 | $ 181,897 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 125,752 | 181,897 |
Cash and Cash Equivalents | 125,752 | 181,897 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amortized Cost | 40,755 | 31,915 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 40,755 | 31,915 |
Cash and Cash Equivalents | 40,755 | 31,915 |
US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Amortized Cost | 84,997 | 149,982 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 84,997 | 149,982 |
Cash and Cash Equivalents | $ 84,997 | $ 149,982 |
Acquisition, Goodwill, and In_3
Acquisition, Goodwill, and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition | |||||
Amortization expense of intangible assets | $ 7,200 | $ 4,800 | $ 5,500 | ||
Non-compete agreements | |||||
Business Acquisition | |||||
Intangible assets, Estimated useful lives | 5 years | ||||
Trade names | |||||
Business Acquisition | |||||
Intangible assets, Estimated useful lives | 3 years | ||||
Acquisition | |||||
Business Acquisition | |||||
Base purchase price | $ 60,000 | ||||
Acquisition related cost | $ 2,500 | ||||
Total purchase consideration | 57,800 | ||||
Net working capital | 2,200 | $ 100 | |||
Business combination measurement period adjustment | 2,100 | ||||
Intangible assets | $ 28,210 | 28,210 | |||
Intangible assets, Weighted-average estimated useful lives | 10 years 9 months 18 days | ||||
Revenues | 18,500 | ||||
Net loss | $ 6,200 | ||||
Acquisition | Customer relationships | |||||
Business Acquisition | |||||
Intangible assets | $ 15,500 | 15,500 | |||
Intangible assets, Estimated useful lives | 15 years | ||||
Acquisition | Developed technology | |||||
Business Acquisition | |||||
Intangible assets | $ 10,200 | 10,200 | |||
Intangible assets, Estimated useful lives | 6 years | ||||
Acquisition | Non-compete agreements | |||||
Business Acquisition | |||||
Intangible assets | $ 1,600 | 1,600 | |||
Intangible assets, Estimated useful lives | 5 years | ||||
Acquisition | Trade names | |||||
Business Acquisition | |||||
Intangible assets | $ 900 | $ 900 | |||
Intangible assets, Estimated useful lives | 3 years |
Acquisition, Goodwill, and In_4
Acquisition, Goodwill, and Intangible Assets - Schedule of allocation of purchase price (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Business Acquisition | |||
Goodwill | $ 65,665 | $ 39,283 | |
Acquisition | |||
Business Acquisition | |||
Accounts receivable | $ 3,844 | ||
Property and equipment, net | 511 | ||
Operating lease right-of-use assets | 2,764 | ||
Goodwill | 26,382 | ||
Intangible assets | 28,210 | ||
Total assets acquired | 61,711 | ||
Operating lease liabilities, current portion | 656 | ||
Deferred revenue, current portion | 1,549 | ||
Operating lease liabilities, less current portion | 1,657 | ||
Total liabilities assumed | 3,862 | ||
Total purchase price | $ 57,849 |
Acquisition, Goodwill, and In_5
Acquisition, Goodwill, and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill | |
Beginning balance | $ 39,283 |
Addition from Acquisition | 26,382 |
Ending balance | $ 65,665 |
Acquisition, Goodwill, and In_6
Acquisition, Goodwill, and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 76,892 | $ 48,682 |
Finite-Lived Intangible Assets, Accumulated Amortization | (31,498) | (24,302) |
Net Carrying Amount | $ 45,394 | 24,380 |
Minimum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 3 years | |
Maximum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 15 years | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 52,109 | 36,599 |
Finite-Lived Intangible Assets, Accumulated Amortization | (19,092) | (14,758) |
Net Carrying Amount | $ 33,017 | $ 21,841 |
Customer relationships | Minimum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 3 years | 3 years |
Customer relationships | Maximum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 15 years | 10 years |
Developed technology | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 22,333 | $ 12,083 |
Finite-Lived Intangible Assets, Accumulated Amortization | (11,954) | (9,544) |
Net Carrying Amount | $ 10,379 | $ 2,539 |
Developed technology | Minimum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 5 years | 5 years |
Developed technology | Maximum | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 6 years | 6 years |
Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 5 years | |
Finite-Lived Intangible Assets, Gross | $ 1,600 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (240) | |
Net Carrying Amount | $ 1,360 | |
Trade name | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life (years) | 3 years | |
Finite-Lived Intangible Assets, Gross | $ 850 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (212) | |
Net Carrying Amount | $ 638 |
Acquisition, Goodwill, and In_7
Acquisition, Goodwill, and Intangible Assets - Schedule of Estimated Future Amortization Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2022 | $ 8,032 | |
2023 | 7,186 | |
2024 | 6,691 | |
2025 | 6,620 | |
2026 | 6,069 | |
2027 and thereafter | 10,796 | |
Net Carrying Amount | $ 45,394 | $ 24,380 |
Cash, Cash Equivalents, and F_3
Cash, Cash Equivalents, and Funds Held for Customers (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 165,467 | $ 200,491 |
Funds held for customers | 316 | 0 |
Total cash and cash equivalents | $ 165,783 | $ 200,491 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Details) - Cash Flow Hedging - Foreign Currency Exchange Contracts - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative | |||
Foreign exchange contract terms | 12 months | 12 months | 12 months |
Notional amount | $ 6,800,000 | $ 5,500,000 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment | ||
Total property and equipment | $ 15,081 | $ 16,323 |
Less: Accumulated depreciation and amortization | (13,174) | (15,289) |
Total property and equipment, net | 1,907 | 1,034 |
Computer software and equipment | ||
Property, Plant and Equipment | ||
Total property and equipment | 5,542 | 6,367 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total property and equipment | 1,257 | 1,143 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Total property and equipment | 481 | 1,012 |
Software development costs | ||
Property, Plant and Equipment | ||
Total property and equipment | $ 7,801 | $ 7,801 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation of property and equipment | $ 0.8 | $ 0.7 | $ 1.3 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
May 31, 2020USD ($)day$ / shares | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Debt Instrument | ||||
Repayments of debt | $ 0 | $ 44,750,000 | $ 10,000,000 | |
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 | day | 20 | |||
Consecutive trading days | day | 30 | |||
Conversion threshold for trigger price (percent) | 130.00% | |||
Measurement period (days) | 5 days | |||
Minimum percentage of conversion price in the event of trigger event (percent) | 98.00% | |||
Redemption price (percent) | 100.00% | |||
Sinking funds in note | $ 0 | |||
Equity component conversion option before issuance cost | 57,200,000 | |||
Equity portion of debt issuance cost | 2,000,000 | |||
Amortized over period | 44 months | |||
Convertible Debt | Notes | Estimate of Fair Value Measurement | ||||
Debt Instrument | ||||
Carrying amount of the liability component | 115,300,000 | |||
Estimated fair value | $ 218,800,000 | |||
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 | ||||
Repayments of debt | $ 40,000,000 |
Convertible Senior Notes - Liab
Convertible Senior Notes - Liability and Equity Components (Details) - Convertible Debt - Notes - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Liability component: | ||
Principal amount | $ 172,500 | $ 172,500 |
Unamortized discount | (44,803) | (54,147) |
Unamortized issuance costs | (3,396) | (3,915) |
Net carrying amount | 124,301 | 114,438 |
Equity component, net of issuance costs | $ 55,227 | $ 55,227 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Details) - Notes - Convertible Debt - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument | ||
Coupon interest expense | $ 4,528 | $ 1,623 |
Amortization of debt discount | 9,344 | 3,102 |
Amortization of debt issuance costs | 519 | 155 |
Total interest expense related to the Notes | $ 14,391 | $ 4,880 |
Effective interest rate of the liability component | 12.32% | 12.32% |
Stock-Based Compensation - 2000
Stock-Based Compensation - 2000 Stock Plan (Details) - 2000 Stock Plan | 12 Months Ended |
Sep. 30, 2021 | |
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) - 2013 Equity Incentive Plan - shares | 1 Months Ended | 12 Months Ended |
Feb. 28, 2013 | Sep. 30, 2018 | |
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 - 2021
Stock-Based Compensation - 2021 Equity Incentive Plan (Details) - shares shares in Millions | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of shares available for future stock awards (in shares) | 3.6 | |
2021 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Approved stock reserve (in shares) | 3.9 | |
Approved stock reserved for future issuance (in shares) | 1.7 | |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Number of stock options, granted (in shares) | 0 | 0 | 0 |
Intrinsic value of options exercised | $ 0.2 | $ 1.4 | $ 1.6 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information Under All Stock Option Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Number of Shares | ||||
Balance at beginning of period (in shares) | 34 | 100 | 227 | |
Exercised (in shares) | (9) | (65) | (120) | |
Expired (in shares) | (1) | (7) | ||
Balance at end of period (in shares) | 25 | 34 | 100 | 227 |
Options exercisable as of end of period (in shares) | 25 | |||
Options vested and expected to vest at end of period (in shares) | 25 | |||
Weighted Average Exercised Price | ||||
Balance at beginning of period (in dollars per share) | $ 10.57 | $ 8.66 | $ 7.64 | |
Exercised (in dollars per share) | 8.20 | 7.72 | 6.87 | |
Expired (in dollars per share) | 1.74 | 6.13 | ||
Balance at end of period (in dollars per share) | 11.41 | $ 10.57 | $ 8.66 | $ 7.64 |
Options exercisable at end of period (in dollars per share) | 11.41 | |||
Options vested and expected to vest (in dollars per share) | $ 11.41 | |||
Weighted Average Remaining Contract Term (in years) | ||||
Weighted Average Remaining Contract Term (in Years), Shares outstanding | 9 months 25 days | 1 year 8 months 4 days | 2 years 2 months 23 days | 2 years 11 months 8 days |
Weighted Average Remaining Contract Term (in Years), Options exercisable at end of period | 9 months 25 days | |||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest at end of period | 9 months 25 days | |||
Aggregate Intrinsic Value | $ 560 | $ 846 | $ 1,911 | $ 1,861 |
Aggregate Intrinsic Value, Options exercisable | 560 | |||
Aggregate Intrinsic Value, Options vested and expected to vest | $ 560 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - ESPP | 12 Months Ended |
Sep. 30, 2021 | |
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 (Details) - ESPP - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 0.05% | 0.84% | 2.26% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 41.00% | 52.00% | 33.00% |
Expected term (in years) | 6 months | 6 months | 6 months |
Fair value at grant date (in dollars per share) | $ 9.68 | $ 11.20 | $ 5.17 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of restricted stock awards vested | $ 41.1 | $ 54.9 | $ 22.2 |
Performance-based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Approved stock reserved for future issuance (in shares) | 0.2 | ||
Performance-based Restricted Stock Units | the Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awards, vesting period | 3 years | ||
Performance-based Restricted Stock Units | Company Established Performance Goals | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awards, vesting period | 3 years | ||
Performance-based Restricted Stock Units | Tranche One | the Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares vest under terms of grants | 50.00% | ||
Performance-based Restricted Stock Units | Tranche One | Company Established Performance Goals | |||
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 | the Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares vest under terms of grants | 50.00% | ||
Performance-based Restricted Stock Units | Tranche Two | Company Established Performance Goals | |||
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 | Company Established Performance Goals | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares vest under terms of grants | 33.00% | ||
Minimum | Performance-based Restricted Stock Units | the Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares released under terms of grants | 0.00% | ||
Risk-free interest rate | 0.16% | ||
Volatility | 45.00% | ||
Minimum | Performance-based Restricted Stock Units | Company Established Performance Goals | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares released under terms of grants | 0.00% | 0.00% | |
Maximum | Performance-based Restricted Stock Units | the Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares released under terms of grants | 200.00% | ||
Risk-free interest rate | 0.32% | ||
Volatility | 51.00% | ||
Maximum | Performance-based Restricted Stock Units | Company Established Performance Goals | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of shares released under terms of grants | 150.00% | 150.00% |
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 (Details) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock Units Outstanding | |||
Balance at beginning of period (in shares) | 1,957 | 2,350 | 2,313 |
Granted (in shares) | 1,200 | 1,390 | 1,638 |
Released (in shares) | (1,091) | (1,613) | (1,213) |
Forfeited (in shares) | (318) | (170) | (388) |
Balance at end of period (in shares) | 1,748 | 1,957 | 2,350 |
Weighted Average Grant Date Fair Value | |||
Balance at beginning of period (in dollars per share) | $ 22.43 | $ 16.36 | $ 15.78 |
Granted (in dollars per share) | 36 | 28.91 | 16.09 |
Released (in dollars per share) | 22.79 | 19.60 | 15.35 |
Forfeited (in dollars per share) | 27.88 | 18.21 | 14.91 |
Balance at end of period (in dollars per share) | $ 30.54 | $ 22.43 | $ 16.36 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Unvested Awards (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2021USD ($) | |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total compensation cost for unvested | $ 0.6 |
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 | $ 39.9 |
Weighted-average period to recognize | 2 years 2 months 12 days |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Allocated Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 29,963 | $ 22,500 | $ 21,340 |
Accrued bonuses | 5,700 | 3,700 | |
Total stock-based compensation in cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 7,690 | 4,094 | 5,362 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 6,051 | 4,625 | 4,145 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 7,541 | 6,160 | 4,641 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 8,681 | 7,621 | 7,192 |
Total stock-based compensation in operating expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 22,273 | 18,406 | 15,978 |
Subscription | Total stock-based compensation in cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 3,658 | 1,865 | 2,468 |
Professional services | Total stock-based compensation in cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 4,032 | $ 2,229 | $ 2,894 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (30,734) | $ (14,252) | $ (17,057) |
Foreign | 1,766 | 1,400 | (1,206) |
Loss before income taxes | $ (28,968) | $ (12,852) | $ (18,263) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current | |||
Federal | $ 0 | $ (106) | $ 0 |
State | 84 | 21 | 11 |
Foreign | 589 | 508 | 843 |
Total current | 673 | 423 | 854 |
Deferred | |||
Federal | 67 | 86 | (2) |
State | 130 | 70 | (19) |
Foreign | (101) | 233 | 197 |
Total deferred | 96 | 389 | 176 |
Total provision for income taxes | $ 769 | $ 812 | $ 1,030 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax to Company's Effective Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | $ (6,083) | $ (2,699) | $ (3,835) |
State tax, net of federal benefit | 84 | 21 | 11 |
Permanent differences | (320) | (195) | (443) |
Stock-based compensation | (2,757) | (5,163) | (1,061) |
Section 162(m) | 2,389 | 2,266 | 168 |
Foreign tax rate differential | 61 | 213 | 1,293 |
Change in valuation allowance | 8,459 | 7,778 | 5,814 |
Research and development tax credits | (1,013) | (1,370) | (974) |
Change in deferred tax liabilities | (84) | 69 | (19) |
Other | 33 | (108) | 76 |
Total provision for income taxes | $ 769 | $ 812 | $ 1,030 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure | ||||
Foreign subsidiary earnings repatriated | $ 1,500 | $ 2,500 | ||
Foreign withholding tax paid | 200 | 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 | 300 | |||
Expected foreign subsidiary earnings repatriated | 2,200 | |||
Increase in total valuation allowance | 10,100 | |||
Unrecognized tax benefits | 5,118 | $ 4,655 | $ 3,961 | $ 3,469 |
Uncertain tax positions | 100 | |||
Federal | Research Tax Credit Carryforward | ||||
Income Tax Disclosure | ||||
Net operating loss (NOL) carry forwards | 262,000 | |||
Research credit carry forwards | 12,300 | |||
State | ||||
Income Tax Disclosure | ||||
Research credit carry forwards | 12,900 | |||
State | Research Tax Credit Carryforward | ||||
Income Tax Disclosure | ||||
Net operating loss (NOL) carry forwards | $ 570,800 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Depreciation and amortization | $ 1,287 | $ 1,104 |
Accruals and other | 15,531 | 7,801 |
Deferred revenue | 243 | 141 |
NOL carry-forward | 69,388 | 69,816 |
Stock compensation | 3,261 | 2,017 |
Research and development tax credits | 17,927 | 15,975 |
Total deferred tax assets | 107,637 | 96,854 |
Valuation allowance | (83,444) | (73,372) |
Net deferred tax assets | 24,193 | 23,482 |
Deferred tax liabilities: | ||
Convertible senior notes | (11,501) | (13,967) |
Intangibles | (6,189) | (6,844) |
Capitalized contract acquisition costs | (2,624) | (2,070) |
Other | (4,254) | (1,096) |
Net deferred tax liabilities | $ (375) | $ (495) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Unrecognized tax benefits at the beginning of the period | $ 4,655 | $ 3,961 | $ 3,469 |
Gross decrease based on tax positions during the prior period | (179) | (8) | (4) |
Gross increase based on tax positions during the prior period | 0 | 0 | 23 |
Gross increase based on tax positions during the current period | 642 | 702 | 473 |
Unrecognized tax benefits at the end of the period | $ 5,118 | $ 4,655 | $ 3,961 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic and diluted: | |||
Net loss attributable to common stockholders, basic | $ (29,737) | $ (13,664) | $ (19,293) |
Net loss attributable to common stockholders, diluted | $ (29,737) | $ (13,664) | $ (19,293) |
Denominator: | |||
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders, basic (in shares) | 35,461 | 34,008 | 32,232 |
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders, diluted (in shares) | 35,461 | 34,008 | 32,232 |
Net Loss per Share Attributable to Common Stockholders: | |||
Basic (usd per share) | $ (0.84) | $ (0.40) | $ (0.60) |
Diluted (usd per share) | $ (0.84) | $ (0.40) | $ (0.60) |
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 (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 25 | 34 | 100 |
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) | 1,748 | 1,957 | 2,350 |
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) | 91 | 66 | 84 |
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 | 5,176 | 0 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) - $ / shares | Sep. 30, 2021 | 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 - Narrat
Geographic Information - Narrative (Details) | 12 Months Ended | ||
Sep. 30, 2021segmentactivity | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information | |||
Number of operating segment | segment | 1 | ||
Number of business activity | activity | 1 | ||
Outside of United States | Geographic Concentration Risk | Revenue Benchmark [Member] | |||
Segment Reporting Information | |||
Concentration of credit risk | 7.00% | 9.00% | 8.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment | ||
Total property and equipment, net | $ 1,907 | $ 1,034 |
United States | ||
Property, Plant and Equipment | ||
Total property and equipment, net | 1,374 | 562 |
India | ||
Property, Plant and Equipment | ||
Total property and equipment, net | $ 533 | $ 472 |
Schedule II - Valuation and q_2
Schedule II - Valuation and qualifying accounts (Details) - Valuation allowance for deferred tax assets - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 73,372 | $ 74,885 | $ 67,879 |
Additions Charges to Costs and Expenses | 14,332 | 15,261 | 7,006 |
Write-offs and Deductions | 4,260 | 16,774 | 0 |
Balance at End of Period | $ 83,444 | $ 73,372 | $ 74,885 |
Uncategorized Items - modn-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |