Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 10, 2015 | Mar. 31, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MODN | ||
Entity Registrant Name | MODEL N, INC. | ||
Entity Central Index Key | 1,118,417 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 26,666,830 | ||
Entity Public Float | $ 215 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 91,019 | $ 101,006 |
Accounts receivable, net of allowance for doubtful accounts of $0 at September 30, 2015 and 2014) | 16,106 | 15,203 |
Deferred cost of implementation services, current portion | 498 | 251 |
Prepaid expenses | 3,229 | 2,092 |
Other current assets | 109 | 322 |
Total current assets | 110,961 | 118,874 |
Property and equipment, net | 7,553 | 6,889 |
Goodwill | 1,509 | 1,509 |
Intangible assets, net | 317 | 587 |
Other assets | 1,630 | 1,272 |
Total assets | 121,970 | 129,131 |
Current liabilities: | ||
Accounts payable | 1,597 | 1,369 |
Accrued employee compensation | 9,047 | 9,194 |
Accrued liabilities | 3,464 | 1,998 |
Deferred revenue, current portion | 22,039 | 23,943 |
Total current liabilities | 36,147 | 36,504 |
Deferred revenue, net of current portion | 1,942 | 2,585 |
Other long-term liabilities | 819 | 1,078 |
Total liabilities | $ 38,908 | $ 40,167 |
Commitments and contingencies (Note 5) | ||
Convertible preferred stock: | ||
Convertible preferred stock, $0.0005 par value; no shares authorized, issued and outstanding at September 30, 2015 and 2014, respectively | $ 0 | $ 0 |
Stockholders' equity: | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 26,666 and 25,085 shares issued and outstanding at September 30, 2015 and September 30, 2014, respectively | 4 | 4 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 186,159 | 172,245 |
Accumulated other comprehensive loss | (466) | (289) |
Accumulated deficit | (102,635) | (82,996) |
Total stockholders' equity | 83,062 | 88,964 |
Total liabilities and stockholders' equity | $ 121,970 | $ 129,131 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Common Stock, par value | $ 0.00015 | $ 0.00015 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 26,666,000 | 25,085,000 |
Common Stock, shares outstanding | 26,666,000 | 25,085,000 |
Preferred Stock, par value | $ 0.00015 | $ 0.00015 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Convertible Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.0005 | $ 0.0005 |
Preferred Stock, shares authorized | 0 | 0 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues: | |||
License and implementation | $ 36,172 | $ 35,333 | $ 59,134 |
SaaS and maintenance | 57,596 | 46,423 | 42,770 |
Total revenues | 93,768 | 81,756 | 101,904 |
Cost of revenues: | |||
License and implementation | 15,555 | 16,652 | 26,832 |
SaaS and maintenance | 26,014 | 21,092 | 19,350 |
Total cost of revenues | 41,569 | 37,744 | 46,182 |
Gross profit | 52,199 | 44,012 | 55,722 |
Operating expenses: | |||
Research and development | 17,906 | 18,710 | 16,772 |
Sales and marketing | 30,300 | 25,998 | 21,144 |
General and administrative | 23,132 | 19,671 | 16,063 |
Restructuring | 26 | 1,215 | |
Total operating expenses | 71,338 | 64,405 | 55,194 |
(Loss) income from operations | (19,139) | (20,393) | 528 |
Interest (income) expense, net | (6) | (12) | 357 |
Other (income) expenses, net | (22) | 116 | 658 |
Loss before income taxes | (19,111) | (20,497) | (487) |
Provision for income taxes | 528 | 384 | 439 |
Net loss | $ (19,639) | $ (20,881) | $ (926) |
Net loss per share attributable to common stockholders : | |||
Basic and diluted | $ (0.75) | $ (0.86) | $ (0.06) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | |||
Basic and diluted | 26,015 | 24,399 | 15,979 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (19,639) | $ (20,881) | $ (926) |
Other comprehensive income (loss), net: | |||
Change in foreign currency translation adjustment, net of taxes | (177) | 13 | (182) |
Total comprehensive loss | $ (19,816) | $ (20,868) | $ (1,108) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance at Sep. 30, 2012 | $ (52,263) | $ 41,776 | $ 1 | $ 9,045 | $ (120) | $ (61,189) |
Beginning balance, shares at Sep. 30, 2012 | 20,103 | 8,131 | ||||
Issuance of common stock upon initial public offering (IPO) | 101,064 | $ 0 | $ 1 | 101,063 | 0 | 0 |
Issuance of common stock upon initial public offering (IPO), shares | 7,011 | |||||
Reclassification of deferred offering cost from other assets to additional paid-in capital upon IPO | (3,256) | 0 | $ 0 | (3,256) | 0 | 0 |
Conversion of convertible preferred stock to common stock upon IPO | 41,776 | $ 1 | 41,775 | 0 | 0 | |
Conversion of convertible preferred stock to common stock upon IPO | (41,776) | $ (41,776) | ||||
Conversion of convertible preferred stock to common stock upon IPO, shares | 7,250 | |||||
Conversion of convertible preferred stock to common stock upon IPO, shares | (20,103) | |||||
Reclassification of preferred stock warrant liability to additional paid-in capital upon IPO | 1,419 | $ 0 | $ 0 | 1,419 | 0 | 0 |
Adjustment to deferred offering cost | 88 | 0 | 0 | 88 | 0 | 0 |
Issuance of common stock upon exercise of preferred stock warrant | 0 | 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock upon exercise of preferred stock warrant, shares | 72 | |||||
Issuance of common stock upon exercise of stock options | $ 860 | 0 | $ 0 | 860 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 565 | 565 | ||||
Issuance of common stock upon release of restricted stock units | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 |
Issuance of common stock upon release of restricted stock units, shares | 7 | |||||
Cancellation of forfeited restricted stock awards | 0 | 0 | (37) | 0 | 0 | |
Stock-based compensation | $ 5,038 | $ 0 | $ 0 | 5,038 | $ 0 | $ 0 |
Other comprehensive income (loss) | (182) | 0 | 0 | 0 | (182) | 0 |
Net loss | (926) | 0 | 0 | 0 | (926) | |
Ending balance at Sep. 30, 2013 | 93,618 | 0 | $ 3 | 156,032 | (302) | (62,115) |
Ending balance, shares at Sep. 30, 2013 | 22,999 | |||||
Conversion of convertible preferred stock to common stock upon IPO | 0 | |||||
Issuance of common stock upon exercise of stock options | $ 3,035 | 0 | $ 1 | 3,034 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 1,689 | 1,689 | ||||
Issuance of common stock upon release of restricted stock units | $ 0 | 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock upon release of restricted stock units, shares | 58 | |||||
Issuance of common stock under stock purchase plans | 3,203 | 0 | $ 0 | 3,203 | ||
Issuance of common stock under stock purchase plans, shares | 339 | |||||
Stock-based compensation | 9,976 | 0 | $ 0 | 9,976 | 0 | 0 |
Other comprehensive income (loss) | 13 | 0 | 0 | 0 | 13 | 0 |
Net loss | (20,881) | 0 | 0 | 0 | 0 | (20,881) |
Ending balance at Sep. 30, 2014 | 88,964 | 0 | $ 4 | 172,245 | (289) | (82,996) |
Ending balance, shares at Sep. 30, 2014 | 25,085 | |||||
Conversion of convertible preferred stock to common stock upon IPO | 0 | |||||
Issuance of common stock upon exercise of stock options | $ 1,312 | 0 | $ 0 | 1,312 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 354 | 354 | ||||
Issuance of common stock upon release of restricted stock units | $ 0 | 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock upon release of restricted stock units, shares | 963 | |||||
Issuance of common stock under stock purchase plans | 2,138 | 0 | $ 0 | 2,138 | 0 | 0 |
Issuance of common stock under stock purchase plans, shares | 264 | |||||
Stock-based compensation | 10,464 | 0 | $ 0 | 10,464 | 0 | 0 |
Other comprehensive income (loss) | (177) | 0 | 0 | 0 | (177) | 0 |
Net loss | (19,639) | 0 | 0 | 0 | 0 | (19,639) |
Ending balance at Sep. 30, 2015 | $ 83,062 | $ 0 | $ 4 | $ 186,159 | $ (466) | $ (102,635) |
Ending balance, shares at Sep. 30, 2015 | 26,666 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (19,639) | $ (20,881) | $ (926) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization | 4,076 | 3,716 | 2,207 |
Stock-based compensation | 10,355 | 9,949 | 4,856 |
Changes in fair value of preferred stock warranty liability and other, net | 0 | 0 | 671 |
Other non cash charges, net | 227 | 83 | 151 |
Changes in assets and liabilities: | |||
Accounts receivable | (925) | 983 | (3,719) |
Prepaid expenses and other assets | (1,218) | 407 | (3,043) |
Deferred cost of implementation services | (518) | 242 | 925 |
Accounts payable | 457 | 685 | 264 |
Accrued employee compensation | (16) | (4,624) | 6,275 |
Other accrued and long-term liabilities | 976 | (500) | 900 |
Deferred revenue | (2,547) | 3,890 | (8,975) |
Net cash used in operating activities | (8,772) | (6,050) | (414) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (2,075) | (1,835) | (1,392) |
Capitalization of software development costs | (2,531) | (381) | (3,741) |
Net purchase of short-term investments | 0 | 0 | (7) |
Net cash used in investing activities | (4,606) | (2,216) | (5,140) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of offering costs of $7.6 million | 0 | 0 | 101,064 |
Proceeds from exercise of stock options and employee stock purchase plan | 3,450 | 6,238 | 860 |
Payments for deferred offering costs | 0 | (6) | (2,914) |
Principal payments on capital lease obligations | 0 | (318) | (586) |
Principal payments on loan | 0 | 0 | (5,208) |
Net cash provided by financing activities | 3,450 | 5,914 | 93,216 |
Effect of exchange rate changes on cash and cash equivalents | (59) | 8 | (80) |
Net decrease in cash and cash equivalents | (9,987) | (2,344) | 87,582 |
Cash and cash equivalents | |||
Beginning of period | 101,006 | 103,350 | 15,768 |
End of period | 91,019 | 101,006 | 103,350 |
Supplemental Disclosure of Cash Flow Data: | |||
Cash paid for income taxes | 364 | 246 | 270 |
Cash paid for interest | 0 | 11 | 298 |
Noncash Investing and Financing Activities: | |||
Capitalized stock options in software development costs | 109 | 27 | 182 |
Conversion of preferred stock warrant to common stock warrant | 0 | 0 | 1,419 |
Net settlement for exercise of common stock warrant | 0 | 0 | 300 |
Conversion of convertible preferred stock to common stock | 0 | 0 | 41,776 |
Deferred offering costs not yet paid | $ 0 | $ 0 | $ 6 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Statement Of Cash Flows [Abstract] | |
Initial public offering, offering costs | $ 7.6 |
The Company
The Company | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
The Company | 1. The Company Model N, Inc. (Company) was incorporated in Delaware on December 14, 1999. The Company is a provider of revenue management solutions for the life science and technology industries. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process, which enables them to manage the strategy and execution of pricing, contracting, incentives and rebates. The Company’s corporate headquarters are located in Redwood City, California, with additional offices in the United States, India, the United Kingdom and Switzerland. Fiscal Year The Company’s fiscal year ends on September 30. References to fiscal year 2015, for example, refer to the fiscal year ended September 30, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Estimates | 2. Summary of Significant Accounting Policies and Estimates Basis for Presentation The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation, software development costs and valuation of intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. Revenue Recognition Revenues are comprised of license and implementation revenues and Software as a Service (“SaaS”) and maintenance revenues. License and Implementation License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and the related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ use of the on premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on premise solutions and the related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured as the hours expended on the implementation during the reporting period as a percentage of the total estimated hours needed to complete the implementation. SaaS and Maintenance SaaS and maintenance revenues primarily include subscription and the related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to application support, training and customer-reimbursed expenses. In SaaS arrangements where subscription fees and implementation services have a standalone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company established the BESP for each element by considering company-specific factors such as existing pricing and discounting. The total arrangement fee for a multiple element arrangement is allocated based on the relative BESP of each element. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. In SaaS arrangements where implementation services are complex and do not have a stand-alone value to the customers, the Company considers the entire arrangement consideration, including subscription fees and related implementation services fees, as a single unit of accounting in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2009-13, Revenue Recognition (Accounting Standards Codification (ASC) Topic 605)— Multiple-Deliverable Revenue Arrangements Maintenance and support revenues include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Application support revenues include supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenues and application support revenues are recognized ratably over the period in which the services are provided. The revenues from training and customer-reimbursed expenses are recognized as the Company delivers these services. Revenue Recognition The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is probable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. The Company does not offer any contractual rights of return or concessions. The Company’s implementation projects generally have a term ranging from a few months to three years and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. Costs of Revenues Cost of license and implementation revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation, third-party contractor costs and royalty fees paid to third parties for the right to intellectual property. Cost of SaaS and maintenance revenues consists primarily of personnel-related costs including salary, customer reimbursable expense, bonus, stock-based compensation, LeapFrog Rx compensation charges, third party contractors, facility expense and depreciation expense related to server equipment including capitalized software and data center-related expenses. Deferred cost of implementation services consists of costs related to implementation services that were provided to the customer but the revenues for the services have not yet been recognized, provided however that the customer is contractually required to pay for the services. These costs primarily consist of personnel costs. As of September 30, 2015 and 2014, the deferred cost of implementation services totaled $1.1 million and $0.6 million, respectively. Warranty The Company provides limited warranties on all sales and provides for the estimated cost of warranties at the date of sale. The estimated cost of warranties has not been material to date. Foreign Currency Translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity in the accompanying consolidated statements of convertible preferred stock and stockholders’ equity (deficit). Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of U.S. treasury bills and money market funds, and are maintained with financial institutions with high credit ratings. Concentration of Credit Risk and Significant Customers The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, U.S. treasury bills and money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2015 and 2014 and of the Company’s total revenues for the fiscal years ended September 30, 2015, 2014 and 2013, respectively: As of September 30, Accounts Receivable 2015 2014 Company A 15% * Company B * 12% Fiscal Years Ended September 30, Revenue 2015 2014 2013 Company A 11% 15% 12% Company B * * 12% Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of this allowance for doubtful accounts by considering historical experience, the age of the accounts receivable balances, the credit quality of the customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. Revenue that has been recognized, but for which the Company has not invoiced the customer, amounting to $3.0 million and $0.8 million is recorded as unbilled receivables and is included in accounts receivables in the consolidated balance sheets as of September 30, 2015 and 2014, respectively. Invoices that have been issued before revenue has been recognized are recorded as deferred revenue in the consolidated balance sheets. Property and Equipment, Net Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. Capital Leases Computer equipment leases are capitalized when the Company assumes substantially all risks and benefits of ownership of the computer equipment. Accordingly, the Company records the asset and obligation at an amount equal to the lesser of the fair market value of the computer equipment or the net present value of the minimum lease payments at the inception of the lease. Leased computer equipment is depreciated using the straight-line basis over the shorter of its estimated useful life or the lease term. 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. 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 facts and circumstances warrant a review. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment under Accounting Standards Update (ASU) No. 2011-08, Goodwill and Other (Topic 350): Testing Goodwill for Impairment, issued by the Financial Accounting Standards Board (FASB). If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. Intangible assets, consisting of developed technology, backlog, non-competition agreements and customer relationships, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to five years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements and customer relationships is included in sales and marketing expense. No goodwill or intangible assets impairment has been identified in any of the years presented. Research and Development and Capitalization of Software Development Costs The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. The Company capitalized software development costs of $ 2.5 Fair Value of Financial Instruments The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. The Company’s Level 1 assets consist of U.S. treasury bills and money market funds. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. Sales Commissions Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. The Company incurred $0.3 million in advertising and promotions costs during the fiscal years ended September 30, 2015 and immaterial amounts during the fiscal years ended September 30, 2014 and 2013. Employee Benefit Plan The Company has a savings plan that qualifies under Section 401(k) of the Internal Revenue Code (IRC). Under these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We contributed approximately $0.4 million for the year ended September 30 , 2015. The Company made no contributions under this plan for years ended September 30, 2014 and 2013. Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options and restricted stock units (RSUs) is measured and recognized based on the fair value of the awards on the grant date. The fair value is recognized as expense, net of estimated forfeitures on a straight-line basis, over the requisite service period, which is generally the vesting period of the respective award. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards. The Black-Scholes-Merton valuation model requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Income Taxes The Company accounts for income taxes in accordance with the FASB ASC No. 740— Accounting for Income Taxes The Company regularly assesses the likelihood that its deferred income tax assets will be realized from future taxable income based on the realization criteria set forth in ASC 740. To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred income tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. As of September 30, 2015 and 2014, the Company had gross deferred income tax assets, related primarily to net operating loss (NOL) carry forwards, deferred revenues, accruals and reserves that are not currently deductible and depreciable and amortizable items of $42.1 million and $34.7 million, respectively, which have been fully offset by a valuation allowance. Utilization of these net loss carry forwards is subject to the limitations of IRC Section 382. During the year ended September 30, 2013, the Company undertook a study of NOL carry forwards and determined that most of its NOL carry forwards are not subject to the 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. 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 presented on a consolidated basis. Comprehensive (Loss) Income Comprehensive income (loss) income is comprised of net income (loss) income and other comprehensive (loss) income. Other comprehensive (loss) income includes foreign currency translation adjustments. New Accounting Pronouncements In May 2015, the FASB issued ASU No. 2015-14— Revenue for Contracts with Customers (Topic 606) Deferral of the Effective Date: In February 2015, the FASB issued ASU No. 2015-05— Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): The Company does not anticipate that adoption of this update will have a material impact on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers, which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount to which an entity expects to be entitled when products and services are transferred to customers. ASU 2014-09 was originally to be effective for the Company on October 1, 2017. In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The new standard will become effective for the Company on October 1, 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early application is permitted but not before the original effective date of annual periods beginning after December 15, 2016. The Company is currently evaluating the impact the adoption of ASU 2014-09 will have on the Company's consolidated financial statements. |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 12 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Balance Sheet Components | 3. Consolidated Balance Sheet Components Components of property and equipment, and intangible assets consisted of the following: Property and Equipment As of September 30, 2015 2014 (in thousands) Computer software and equipment $ 8,383 $ 6,931 Furniture and fixtures 673 477 Leasehold improvements 875 804 Software development costs 6,915 5,488 Total property and equipment 16,846 13,700 Less: Accumulated depreciation and amortization (10,353 ) (6,811 ) Property and equipment, net 6,493 6,889 Add: Capital projects in progress 1,060 — Total property and equipment, net $ 7,553 $ 6,889 Computer equipment acquired under the capital leases is included in property and equipment and consisted of the following: As of September 30, 2015 2014 (in thousands) Computer software and equipment $ 793 $ 823 Less: Accumulated depreciation and amortization (791 ) (819 ) Total computer software and equipment, net $ 2 $ 4 Depreciation expense including depreciation of assets under capital leases totaled $3.8 million, $3.4 million and $1.9 million for the fiscal years ended September 30, 2015, 2014 and 2013, respectively. Intangible Assets Estimated Useful Life (in As of September 30, Years) 2015 2014 (in thousands) Intangible Assets: Developed technology 5 $ 2,213 $ 2,214 Backlog 5 100 100 Non-competition agreement 3 100 100 Customer relationships 3 1,019 1,018 Less: Accumulated amortization (3,115 ) (2,845 ) Total intangible assets $ 317 $ 587 The Company recorded amortization expense related to the acquired intangible assets of $0.3 million, $0.3 million and $0.3 million during the fiscal years ended September 30, 2015, 2014, and 2013, respectively. Estimated future amortization expense for the intangible assets as of September 30, 2015 is as follows: Fiscal September 30, (in thousands) 2016 245 2017 72 Total future amortization $ 317 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 4. Financial Instruments The table below sets forth the Company’s cash equivalents as of September 30, 2015 and 2014, which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. The Company had no liabilities measured at fair value on a recurring basis. Level 1 Level 2 Level 3 Total (in thousands) As of September 30, 2015: Assets: Cash equivalents: Money market fund deposits $ 45,516 $ — $ — $ 45,516 U.S. treasury bills 35,000 — — 35,000 Total $ 80,516 $ — $ — $ 80,516 As of September 30, 2014: Assets: Cash equivalents: Money market fund deposits $ 11,463 $ — $ — $ 11,463 U.S. treasury bills 34,050 — — 34,050 Total $ 45,513 $ — $ — $ 45,513 The Company’s cash equivalents as of September 30, 2015 and 2015 consisted of money market funds with original maturity dates of less than three months from the date of their respective purchase. Cash equivalents are classified as Level 1. The fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of September 30, 2015 and 2014. As of September 30, 2015 and 2014, amounts of $ 10.5 million and $55.5 million, respectively, were held in bank deposits. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Leases The Company leases facilities under noncancelable operating leases, and leases certain computer equipment under capital leases and acquired certain equipment under an equipment loan. As of September 30, 2015, future minimum payments under operating leases were as follows: Contractual Payment Obligations Due by Period Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations (1) $ 7,500 $ 2,300 $ 5,000 $ 200 $ — (1) Rent expense under noncancelable operating leases for the fiscal years ended September 30, 2015, 2014 and 2013 was $2.3 million, $2.0 million and $1.7 million, respectively. Loan Financing Arrangements In October 2010, the Company entered into an amended and restated loan and security agreement with a lender and refinanced its revolving credit facility with a term loan of $7.5 million. The principal amount outstanding bears a fixed interest rate at 8.0% per annum. The amended and restated loan and security agreement required interest only payments until October 1, 2011 and thirty six (36) equal monthly installments of principal with accrued interest thereafter until maturity on October 1, 2014. The Company pledged all assets excluding any intellectual property to the lender as collateral. The Company repaid this term loan in full in May 2013. The Company no longer has a line of credit as of September 30, 2015. In connection with the amended and restated loan and security agreement, the Company issued a warrant to purchase 86,655 shares of Series C Preferred Stock at an exercise price of $3.462 per share to the lender (see Note 11). For the fiscal year ended September 30, 2013, the Company recorded an interest expense of $0.4 million. No expense was recorded for the fiscal years ended September 30, 2015 and 2014 as these warrants were converted into common shares in May 2013, pursuant to Company’s initial public offering (“IPO”). The Company has no outstanding warrants as of September 30, 2015. 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, 2015 and 2014. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the software license, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. As permitted under Delaware law, the Company has indemnification arrangements with respect to its officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the Company. Legal Proceedings On September 5, 2014 and January 22, 2015, purported securities class action lawsuits were filed in the Superior Court of the State of California, County of San Mateo, against the Company, certain of the Company’s current and former directors and executive officers and underwriters of the IPO. The lawsuits were brought by purported stockholders of the Company seeking to represent a class consisting of all those who purchased the Company’s stock pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the IPO. The lawsuits assert claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and seek unspecified damages and other relief. See Note 12 relating to the resolution of this matter in fiscal 2016. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation 2000 Stock Plan The 2000 Stock Plan (the “2000 Plan”) authorized the board of directors to grant incentive share options and non-statutory share options to 2010 Equity Incentive Plan On June 15, 2010, the Company’s Board adopted the 2010 Equity Incentive Plan under which employees, directors, and other eligible participants of the Company or any subsidiary of the Company may be granted incentive stock options, nonstatutory stock options and all other types of awards to purchase shares of the Company’s common stock. The total number of shares reserved and available for grant and issuance pursuant to this 2010 Plan consists of (a) any authorized shares not issued or subject to outstanding grants under the 2000 Plan on the adoption date, (b) shares that are subject to issuance upon exercise of options granted under the Plan but cease to exist for any reason other than exercise of such options; and (c) shares that were issued under the Plan which are repurchased by the Company at the original issue price or forfeited. In connection with the adoption of the 2013 (the “2013 Plan”) in February 2013, the 2010 Plan was terminated and all shares of common stock previously reserved but unissued were transferred to 2013 Plan. 2013 Equity Incentive Plan The Company’s board of directors (Board) adopted the 2013 Equity Incentive Plan (2013 Plan) in February 2013, and the stockholders approved the 2013 Plan in March 2013. The 2013 Plan became effective on March 18, 2013 and will terminate in February 2023. The 2013 Plan serves as the successor equity compensation plan to the 2010 Equity Incentive Plan (2010 Plan). The 2013 Plan was approved with a reserve of 8.0 million shares, which consists of 2.5 million shares of the Company’s common stock reserved for future issuance under the 2013 Plan and shares of common stock previously reserved but unissued under the 2010 Plan. Additionally, the 2013 Plan provides for automatic increases in the number of shares available for issuance under it on October 1 of each of the first four calendar years during the term of the 2013 Plan by the lesser of 5% of the number of shares of common stock issued and outstanding on each September 30 immediately prior to the date of increase or the number determined by our board of directors. No further grants will be made under the 2010 Plan, and the balances under the 2010 Plan have been transferred to the 2013 Plan. The 2013 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, performance stock awards, restricted stock units and stock bonuses. Awards generally vest over four years and expire ten years from the date of grant. Stock Options As of September 30, 2015, 3.7 million shares were available for future stock awards under the plans. There were no stock options granted in fiscal years 2015 and 2014, respectively. The following table summarized the weighted-average assumptions used to estimate the fair value of stock options granted during the periods presented: Fiscal Years Ended September 30, 2015 2014 2013 Common stock valuation $ — $ — $ 13.95 Risk-free interest rate — % — % 1.10 % Dividend yield — — — Volatility — % — % 50 % Expected term (in years) — — 6.08 The expected terms of options granted were calculated using the simplified method, determined as the average of the contractual term and the vesting period. Estimated volatility is derived from the historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the option. The risk-free interest rate is based on the U.S. treasury constant maturities in effect at the time of grant for the expected term of the option. We use historical data to estimate the number of future stock option forfeitures. The following table summarized the stock option activity and related information under all stock option plans: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercised Contract Intrinsic (thousands) Price Term Value Balance at September 30, 2012 4,559 $ 4.34 6.08 $ 30,000 Granted 272 13.86 — Exercised (565 ) 1.52 — Forfeited (355 ) 8.00 — Expired (43 ) 4.35 — Balance at September 30, 2013 3,868 5.07 5.34 $ 21,122 Exercised (1,689 ) 1.80 — Forfeited (178 ) 11.29 — Expired (120 ) 10.60 — Balance at September 30, 2014 1,881 7.07 5.98 $ 7,055 Exercised (354 ) 3.71 — Forfeited (177 ) 12.01 — Expired (231 ) 12.18 — Balance at September 30, 2015 1,119 $ 6.29 4.68 $ 4,904 Options exercisable as of September 30, 2015 1,051 $ 5.87 4.53 $ 4,902 Options vested and expected to vest as of September 30, 2015 1,113 $ 6.26 4.67 $ 4,904 The intrinsic value of options exercised during 2015, 2014 and 2013 was $2.6 million, $13.8 million, and $7.0 million, respectively. The total estimated fair value of options vested during 2015, 2014 and 2013 was $1.6 million, $0.6 million, and $0.6 million respectively. Employee Stock Purchase Plan The 2013 Employee Stock Purchase Plan (ESPP) became effective on March 19, 2013. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value, as defined in the ESPP, subject to any plan limitations. Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. The following table summarized the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s ESPP plan during the periods presented: Fiscal Years Ended September 30, 2015 2014 2013 Risk-free interest rate 0.12 % 0.12 % 0.15 % Dividend yield — — — Volatility 33 % 34 % 36 % Expected term (in years) 0.50 0.77 0.91 Restricted Stock Awards Issued to Certain Employees in Connection with the LeapFrogRx Acquisition In January 2012, the Company issued 200,000 shares of common stock to certain employees of LeapFrogRx in connection with the acquisition of LeapFrogRx. Of these shares, 36,818 shares were forfeited and all the remaining shares were fully vested through the period ended March 31, 2014. The total fair value of the restricted stock awards that vested during the fiscal year ended September 30, 2014 was $0.1 million. Performance-based Restricted Stock Units On December 6, 2013, the Compensation Committee of the Board approved initial grants of an aggregate of 280,000 performance-based restricted stock units to three of the Company’s senior officers, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares released could be 0% to 250% of the initial grant based on the Company’s total shareholder return (TSR) relative to the TSR of the Russell 3000 index (Index) over a three-year period. In any of the three years, no shares will be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the initial grant will be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the initial grant will be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest as to one-third on each annual anniversary of November 22, 2013, with a “catch-up” provision such that shares not earned in a prior year may be earned in a subsequent year subject to the Company’s TSR achieving a certain level relative to the Index and exceeding the prior year’s TSR. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. As of September 30, 2015 approximately 53,000 of performance based stock units were forfeited and 195,000 shares were released based on the Company’s TSR relative to the Index. The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. The Company used the Monte-Carlo simulation model to calculate the fair value of these awards on the grant date. The Monte-Carlo simulation model takes into account the same input assumptions as the Black-Scholes model; however, it also further incorporates into the fair value determination the possibility that the performance criteria may not be satisfied. The weighted-average assumptions used to estimate the fair values of these awards were determined using the following assumptions for the fiscal year ended September 30, 2015: Risk-free interest rate 0.63 % Dividend yield — Volatility 39 % On March 9, 2015, the Compensation Committee of the Board of Directors granted an aggregate of 348,700 performance-based restricted stock units to members of the Company’s executive team, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 250% of the grant based on the performance of the Company’s TSR relative to the TSR of the Index over a three-year period. No shares will vest and be released in the first year. In any of the two remaining years, no shares will vest and be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the grant will vest and be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the grant will vest and be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest over a three-year period with 50% vesting on each of the second and the third annual anniversary of the vesting commencing date of February 15, 2015. In addition, these grants have a “catch-up” provision such that if the Company’s TSR relative to the Index for the three-year period exceeds that of the two-year period, additional shares for the two-year period will vest and be released based on the three-year achievement level. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. During fiscal year ended September 30, 2015, approximately The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. The grant date fair values of these awards were determined using the following assumptions: Risk-free interest rate 1.10 % Dividend yield — Volatility 32 % The following table summarizes the Company’s restricted stock and restricted stock unit activity under all equity award plans: Weighted Average Restricted Grant Date Units Fair Value (in thousands) Balance at September 30, 2012 20 $ 10.92 Granted 1,088 15.73 Released (7 ) 12.27 Forfeited (110 ) 15.57 Balance at September 30, 2013 991 $ 15.68 Granted 1,774 9.89 Released (58 ) 16.83 Forfeited (442 ) 8.79 Balance at September 30, 2014 2,265 $ 12.46 Granted 1,505 11.17 Released (963 ) 11.20 Forfeited (505 ) 11.66 Balance at September 30, 2015 2,302 $ 12.32 The total fair value of restricted stock awards vested for the years ended September 30, 2015, 2014, and 2013 was $ 8.7 The following table summarizes certain information of the unvested awards as of September 30, 2015: Stock Options Restricted (1) ESPP Total Compensation cost for unvested (in millions) $ 1.4 $ 12.1 $ 0.3 Weighted-average Period to recognized (in years) 1.0 2.3 0.4 (1): including restricted stock, restricted stock units and performance-based restricted stock awards Stock-based Compensation Stock-based compensation is as follows: Fiscal Years Ended September 30, 2015 2014 2013 Cost of revenues: (in thousands) License and implementation $ 699 $ 905 $ 591 SaaS and maintenance 799 749 622 Total stock-based compensation in cost of revenues 1,498 1,654 1,213 Operating expenses: Research and development 1,353 1,278 747 Sales and marketing 3,202 2,789 1,687 General and administrative 4,302 4,228 1,209 Total stock-based compensation in operating expenses 8,857 8,295 3,643 Stock-based compensation in operating loss 10,355 9,949 4,856 Stock-based compensation capitalized as software development cost 109 27 182 Total stock-based compensation $ 10,464 $ 9,976 $ 5,038 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The components of loss before income taxes are as follows: Fiscal Years Ended September 30, 2015 2014 2013 (in thousands) Domestic $ (20,292 ) $ (21,279 ) $ (1,340 ) Foreign 1,181 782 853 Loss before taxes $ (19,111 ) $ (20,497 ) $ (487 ) The Company has made no provision for U.S. income taxes on approximately $2.8 million of cumulative undistributed earnings of certain foreign subsidiaries at September 30, 2015 because it is the Company's intention to reinvest such earnings permanently. The determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. The components of the provision for income taxes are as follows: Fiscal Years Ended September 30, 2015 2014 2013 (in thousands) Current State $ 13 $ 53 $ 54 Foreign 482 295 355 495 348 409 Deferred Federal 27 27 27 State 6 9 3 33 36 30 Total provision for income taxes $ 528 $ 384 $ 439 Reconciliation of the statutory federal income tax to the Company’s effective tax: Fiscal Years Ended September 30, 2015 2014 2013 (in thousands) Tax at statutory federal rate $ (6,498 ) $ (6,969 ) $ (165 ) State tax, net of federal benefit 13 53 54 Permanent differences 729 727 1,053 Foreign tax rate differential 81 29 65 Change in valuation allowance 6,648 6,625 128 Research and development tax credits (450 ) (175 ) (726 ) Foreign tax credits (7 ) 35 (27 ) Change in deferred tax liabilities 33 36 30 Other (21 ) 23 27 Total provision for income taxes $ 528 $ 384 $ 439 The Company is subject to income taxes in U.S. federal and various state, local and foreign jurisdictions. The tax years ended from September 2000 to September 2015 remain open to examination due to the carryover of unused net operating losses or tax credits. Deferred tax assets and liability consisted of the following: As of September 30, 2015 2014 (in thousands) Deferred tax assets: Depreciation and amortization $ (388 ) $ (425 ) Accruals and other 5,431 6,833 Deferred revenue 2,795 3,045 NOL carry-forward 27,107 18,917 Research and development tax credits 7,183 6,315 Total deferred tax assets 42,128 34,685 Valuation allowance (42,128 ) (34,685 ) Net deferred tax assets $ — $ — Deferred tax liabilities: Intangibles $ (122 ) $ (89 ) A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company had established a valuation allowance to offset net deferred tax assets at September 30, 2015, 2014 and 2013 due to the uncertainty of realizing future tax benefits from its net operating loss carry-forwards and other deferred tax assets. The net change in the total valuation allowance for the year ended September 30, 2015 was an increase of approximately $7.4 million. At September 30, 2015, the Company has federal and California net operating loss carry-forwards of approximately $82.2 million and $26.6 million, respectively. The federal and California net operating losses will begin expiring in 2021 and 2016, respectively. At September 30, 2015, the Company also had other state net operating loss carry-forwards of approximately $1.0 million which will begin expiring in 2017. At September 30, 2015, the Company had federal and state research credit carry forwards of approximately $4.8 million and $5.9 million, respectively. The federal research and development credit carry-forwards will begin expiring in 2020. The California tax credit can be carried forward indefinitely. The Company is tracking its deferred tax assets attributable to stock option benefits in a separate memo account pursuant to ASC 718. Therefore, these amounts are not included in the Company's gross or net deferred tax assets. As of September 30, 2015, 2014 and 2013, the Company had stock option benefits of approximately $3.7 million, $3.1 million and $0.9 million, respectively. Pursuant to ASC 718-740-25-10, the stock option benefits will be recorded to equity when they reduce cash taxes payable . As of September 30, 2015, the Company had unrecognized tax benefits of approximately $3.1 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, 2015, there was a liability of $0.3 million related to uncertain tax positions recorded on the financial statements. Internal Revenue Code section 382 places a limitation (the "Section 382 Limitation") on the amount of taxable income can be offset by net operating ("NOL") carry-forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California has similar rules. The Company's capitalization described herein may have resulted in such a change. Generally, after a control change, a loss corporation cannot deduct NOL carry-forwards in excess of the Section 382 limitation. A high level IRC Section 382 analysis has been performed as of September 30, 2015 and determined there would be no effect on the NOL Deferred Tax Asset if ownership changes occurred. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Years Ended September 30, 2015 2014 2013 (in thousands) Unrecognized tax benefits at the beginning of the period $ 2,513 $ 1,979 $ 1,683 Gross increase based on tax positions during the prior period 58 18 78 Gross increase based on tax positions during the current period 548 516 218 Unrecognized tax benefits at the end of the period $ 3,119 $ 2,513 $ 1,979 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 8. Net Loss Per Share The Company’s basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, which excludes unvested restricted stock awards. The diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, warrants outstanding, options to purchase common stock, unvested restricted stock awards and unvested restricted stock units are considered to be common stock equivalents. Fiscal Years Ended September 30, 2015 2014 2013 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (19,639 ) $ (20,881 ) $ (926 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 26,015 24,399 15,979 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.75 ) $ (0.86 ) $ (0.06 ) The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Fiscal Years Ended September 30, 2015 2014 2013 Stock options 1,228,085 1,971,126 4,254,831 Restricted stock awards, performance-based restricted stock units and restricted stock units 724,343 1,090,703 620,528 Preferred stock warrants — — 44,398 ESSP 19,797 22,896 9,313 |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Geographic Information | 9. 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 6%, 11% and 14% of total revenues for the fiscal years ended September 30, 2015, 2014 and 2013, respectively. No location outside of the United States has revenues in excess of 10%. Long-Lived Assets The following table sets forth the Company’s property and equipment, net by geographic region: As of September 30, 2015 2014 (in thousands) United States $ 6,080 $ 5,858 India 1,473 1,031 Total property and equipment, net $ 7,553 $ 6,889 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 10. Restructuring Charges On September 30, 2013, the Company announced a plan to align its workforce with the Company’s strategic initiatives that included a reduction in the size of the Company’s workforce, primarily in professional services. The Company recorded a workforce reduction restructuring charge of $26 thousand and $1.2 million in fiscal years 2014 and 2013, respectively, primarily related to employee separation packages, which included severance pay, benefits continuation and outplacement costs. As of September 30, 2014 the Company had completed its restructuring activities. A roll-forward of the restructuring activity is summarized below: Fiscal Years Ended September 30, 2014 2013 (in thousands) Opening balance $ 1,182 $ — Amounts accrued 26 1,215 Cash payments (1,208 ) (33 ) Balance of accrual $ — $ 1,182 |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Convertible Preferred Stock | 11. Convertible Preferred Stock Upon the closing of the IPO, all outstanding shares of convertible preferred stock were converted into shares of common stock, and an outstanding warrant to purchase convertible preferred stock automatically converted into a warrant to purchase 86,655 shares of common stock. Convertible Preferred Stock Warrant On October 19, 2010, in connection with a loan agreement, the Company issued a warrant to purchase 86,655 shares of the Company’s Series C Preferred Stock at an exercise price of $3.462 per share. The warrant is exercisable in whole or in part at any time on or before the expiration date of the 10-year anniversary from the issuance date. Upon the closing of the IPO, this warrant automatically converted into a warrant to purchase the same number of shares of common stock at the same exercise price per share. Prior to the closing of the IPO, the Company re-measured the fair value of the preferred stock warrant at each balance sheet date. The fair value of the outstanding warrant was classified within non-current liabilities on the consolidated balance sheets, and any changes in fair value were recognized as a component of other (income) expenses, net in the consolidated statements of operations. Upon the closing of the IPO, the warrant was reclassified from liability to equity and the Company will no longer record any mark-to-market changes in the fair value of the warrant. The Company performed the final re-measurement of the warrant on March 25, 2013, the closing date of the IPO, and recorded an expense of $0.7 million arising from the revaluation during the three months ended March 31, 2013. In May 2013, the warrant was converted into 71,847 shares of common stock, net of the warrant price. The fair value of the outstanding warrant was determined using the Black-Scholes-Merton option-pricing model. The fair value of the warrant was estimated using the following assumptions for the periods presented below. Fiscal Year Ended September 30, 2013 Risk-free interest rate 0.92 % Dividend yield — Volatility 45 % Expected term (in years) 5.92 The change in the fair value of the convertible preferred stock warrant liability is summarized below: Fiscal September 30, 2013 Opening balance $ 748 Issuance of convertible preferred stock warrant — Increase in fair value 671 Reclassification of warrant liability to additional paid-in capital (1,419 ) Closing balance $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events (Unaudited) | 12. Subsequent Events (Unaudited) On October 19, 2015, the Company signed a definitive agreement to acquire Channelinsight, a leading provider of Channel Data Management (CDM) solutions. The combination of Model N Channel Management and Channelinsight CDM provides companies with a leading enterprise-grade, end-to-end solution to manage their Global Channel Revenue. The Company acquired operating assets and liabilities of Channelinsight in an all cash deal for approximately $12.6 million. This transaction was closed on October 30, 2015. On November 4, 2015, all parties to the consolidated class action lawsuit against Model N, Inc. and certain of the Company’s current and former directors and executive officers and underwriters of the initial public offering reached a mutually acceptable resolution by way of a mediated settlement. The agreement in principle calls for the company to contribute $250,000 toward the settlement, with the remainder to be covered by the Company’s D&O insurance. The Company is satisfied with this resolution given the risks and expenses associated with further litigation and does not believe this contribution will have a material impact on the results of operations in fiscal 2016. The settlement is subject to court approval. |
Schedule II-Valuation and quali
Schedule II-Valuation and qualifying accounts | 12 Months Ended |
Sep. 30, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and qualifying accounts | Schedule II - Valuation and qualifying accounts The table below presents the changes in the allowance for doubtful accounts for the fiscal years ended September 30, 2015, 2014, and 2013, respectively. Description Balance at Beginning of Period Additions Charges to Costs Expenses Write-offs and Deductions Balance at End of Period Allowance for doubtful receivables For the Year Ended September 30, 2015 $ — — — $ — For the Year Ended September 30, 2014 $ 46 — 46 $ — For the Year Ended September 30, 2013 $ 55 48 57 $ 46 Valuation allowance for deferred tax assets For the Year Ended September 30, 2015 $ 34,685 6,443 — $ 41,128 For the Year Ended September 30, 2014 $ 26,895 7,790 — $ 34,685 For the Year Ended September 30, 2013 $ 27,515 — 620 $ 26,895 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis for Presentation | Basis for Presentation The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation, software development costs and valuation of intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. |
Revenue Recognition | Revenue Recognition Revenues are comprised of license and implementation revenues and Software as a Service (“SaaS”) and maintenance revenues. License and Implementation License and implementation revenues include revenues from the sale of perpetual software licenses for the Company’s solutions and the related implementation services. Based on the nature and scope of the implementation services, the Company has concluded that generally the implementation services are essential to its customers’ use of the on premise solutions, and therefore, the Company recognizes revenues from the sale of software licenses for its on premise solutions and the related implementation services on a percentage-of-completion basis over the expected implementation period. The Company estimates the length of this period based on a number of factors, including the number of licensed applications and the scope and complexity of the customer’s deployment requirements. The percentage-of-completion computation is measured as the hours expended on the implementation during the reporting period as a percentage of the total estimated hours needed to complete the implementation. SaaS and Maintenance SaaS and maintenance revenues primarily include subscription and the related implementation fees from customers accessing the Company’s cloud-based solutions and revenues associated with maintenance and support contracts from customers using on premise solutions. Also included in SaaS and maintenance revenues are other revenues, including revenues related to application support, training and customer-reimbursed expenses. In SaaS arrangements where subscription fees and implementation services have a standalone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company established the BESP for each element by considering company-specific factors such as existing pricing and discounting. The total arrangement fee for a multiple element arrangement is allocated based on the relative BESP of each element. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. In SaaS arrangements where implementation services are complex and do not have a stand-alone value to the customers, the Company considers the entire arrangement consideration, including subscription fees and related implementation services fees, as a single unit of accounting in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2009-13, Revenue Recognition (Accounting Standards Codification (ASC) Topic 605)— Multiple-Deliverable Revenue Arrangements Maintenance and support revenues include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Application support revenues include supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenues and application support revenues are recognized ratably over the period in which the services are provided. The revenues from training and customer-reimbursed expenses are recognized as the Company delivers these services. Revenue Recognition The Company commences revenue recognition when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is probable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. The Company does not offer any contractual rights of return or concessions. The Company’s implementation projects generally have a term ranging from a few months to three years and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. |
Costs of Revenues | Costs of Revenues Cost of license and implementation revenues consists primarily of personnel-related costs including salary, bonus, stock-based compensation, third-party contractor costs and royalty fees paid to third parties for the right to intellectual property. Cost of SaaS and maintenance revenues consists primarily of personnel-related costs including salary, customer reimbursable expense, bonus, stock-based compensation, LeapFrog Rx compensation charges, third party contractors, facility expense and depreciation expense related to server equipment including capitalized software and data center-related expenses. Deferred cost of implementation services consists of costs related to implementation services that were provided to the customer but the revenues for the services have not yet been recognized, provided however that the customer is contractually required to pay for the services. These costs primarily consist of personnel costs. As of September 30, 2015 and 2014, the deferred cost of implementation services totaled $1.1 million and $0.6 million, respectively. |
Warranty | Warranty The Company provides limited warranties on all sales and provides for the estimated cost of warranties at the date of sale. The estimated cost of warranties has not been material to date. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity in the accompanying consolidated statements of convertible preferred stock and stockholders’ equity (deficit). Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of U.S. treasury bills and money market funds, and are maintained with financial institutions with high credit ratings. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, U.S. treasury bills and money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2015 and 2014 and of the Company’s total revenues for the fiscal years ended September 30, 2015, 2014 and 2013, respectively: As of September 30, Accounts Receivable 2015 2014 Company A 15% * Company B * 12% Fiscal Years Ended September 30, Revenue 2015 2014 2013 Company A 11% 15% 12% Company B * * 12% |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of this allowance for doubtful accounts by considering historical experience, the age of the accounts receivable balances, the credit quality of the customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. Revenue that has been recognized, but for which the Company has not invoiced the customer, amounting to $3.0 million and $0.8 million is recorded as unbilled receivables and is included in accounts receivables in the consolidated balance sheets as of September 30, 2015 and 2014, respectively. Invoices that have been issued before revenue has been recognized are recorded as deferred revenue in the consolidated balance sheets. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. |
Capital Leases | Capital Leases Computer equipment leases are capitalized when the Company assumes substantially all risks and benefits of ownership of the computer equipment. Accordingly, the Company records the asset and obligation at an amount equal to the lesser of the fair market value of the computer equipment or the net present value of the minimum lease payments at the inception of the lease. Leased computer equipment is depreciated using the straight-line basis over the shorter of its estimated useful life or the lease term. |
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. |
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 facts and circumstances warrant a review. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment under Accounting Standards Update (ASU) No. 2011-08, Goodwill and Other (Topic 350): Testing Goodwill for Impairment, issued by the Financial Accounting Standards Board (FASB). If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. Intangible assets, consisting of developed technology, backlog, non-competition agreements and customer relationships, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to five years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements and customer relationships is included in sales and marketing expense. No goodwill or intangible assets impairment has been identified in any of the years presented. |
Research and Development and Capitalization of Software Development Costs | Research and Development and Capitalization of Software Development Costs The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. The Company capitalized software development costs of $ 2.5 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. The Company’s Level 1 assets consist of U.S. treasury bills and money market funds. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. |
Sales Commissions | Sales Commissions Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. |
Advertising and Promotion Costs | Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. The Company incurred $0.3 million in advertising and promotions costs during the fiscal years ended September 30, 2015 and immaterial amounts during the fiscal years ended September 30, 2014 and 2013. |
Employee Benefit Plan | Employee Benefit Plan The Company has a savings plan that qualifies under Section 401(k) of the Internal Revenue Code (IRC). Under these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We contributed approximately $0.4 million for the year ended September 30 , 2015. The Company made no contributions under this plan for years ended September 30, 2014 and 2013. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options and restricted stock units (RSUs) is measured and recognized based on the fair value of the awards on the grant date. The fair value is recognized as expense, net of estimated forfeitures on a straight-line basis, over the requisite service period, which is generally the vesting period of the respective award. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards. The Black-Scholes-Merton valuation model requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the FASB ASC No. 740— Accounting for Income Taxes The Company regularly assesses the likelihood that its deferred income tax assets will be realized from future taxable income based on the realization criteria set forth in ASC 740. To the extent that the Company believes any amounts are not more likely than not to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies. In the event the Company determines that all or part of the net deferred tax assets are not realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently realizes deferred income tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made. As of September 30, 2015 and 2014, the Company had gross deferred income tax assets, related primarily to net operating loss (NOL) carry forwards, deferred revenues, accruals and reserves that are not currently deductible and depreciable and amortizable items of $42.1 million and $34.7 million, respectively, which have been fully offset by a valuation allowance. Utilization of these net loss carry forwards is subject to the limitations of IRC Section 382. During the year ended September 30, 2013, the Company undertook a study of NOL carry forwards and determined that most of its NOL carry forwards are not subject to the 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. |
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 presented on a consolidated basis. |
Comprehensive (Loss) Income | Comprehensive (Loss) Income Comprehensive income (loss) income is comprised of net income (loss) income and other comprehensive (loss) income. Other comprehensive (loss) income includes foreign currency translation adjustments. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2015, the FASB issued ASU No. 2015-14— Revenue for Contracts with Customers (Topic 606) Deferral of the Effective Date: In February 2015, the FASB issued ASU No. 2015-05— Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): The Company does not anticipate that adoption of this update will have a material impact on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers, which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount to which an entity expects to be entitled when products and services are transferred to customers. ASU 2014-09 was originally to be effective for the Company on October 1, 2017. In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The new standard will become effective for the Company on October 1, 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early application is permitted but not before the original effective date of annual periods beginning after December 15, 2016. The Company is currently evaluating the impact the adoption of ASU 2014-09 will have on the Company's consolidated financial statements. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Accounts Receivable and Revenues of Customers Comprising 10% or More | The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2015 and 2014 and of the Company’s total revenues for the fiscal years ended September 30, 2015, 2014 and 2013, respectively: As of September 30, Accounts Receivable 2015 2014 Company A 15% * Company B * 12% Fiscal Years Ended September 30, Revenue 2015 2014 2013 Company A 11% 15% 12% Company B * * 12% |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years |
Consolidated Balance Sheet Co24
Consolidated Balance Sheet Components (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Property and Equipment | Property and Equipment As of September 30, 2015 2014 (in thousands) Computer software and equipment $ 8,383 $ 6,931 Furniture and fixtures 673 477 Leasehold improvements 875 804 Software development costs 6,915 5,488 Total property and equipment 16,846 13,700 Less: Accumulated depreciation and amortization (10,353 ) (6,811 ) Property and equipment, net 6,493 6,889 Add: Capital projects in progress 1,060 — Total property and equipment, net $ 7,553 $ 6,889 |
Schedule of Asset Acquired under Capital Leases | Computer equipment acquired under the capital leases is included in property and equipment and consisted of the following: As of September 30, 2015 2014 (in thousands) Computer software and equipment $ 793 $ 823 Less: Accumulated depreciation and amortization (791 ) (819 ) Total computer software and equipment, net $ 2 $ 4 |
Schedule of Goodwill and Intangible Assets | Intangible Assets Estimated Useful Life (in As of September 30, Years) 2015 2014 (in thousands) Intangible Assets: Developed technology 5 $ 2,213 $ 2,214 Backlog 5 100 100 Non-competition agreement 3 100 100 Customer relationships 3 1,019 1,018 Less: Accumulated amortization (3,115 ) (2,845 ) Total intangible assets $ 317 $ 587 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense for the intangible assets as of September 30, 2015 is as follows: Fiscal September 30, (in thousands) 2016 245 2017 72 Total future amortization $ 317 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 and 2014, which are measured at fair value on a recurring basis by level within the fair value hierarchy. The assets are classified based on the lowest level of input that is significant to the fair value measurement. The Company had no liabilities measured at fair value on a recurring basis. Level 1 Level 2 Level 3 Total (in thousands) As of September 30, 2015: Assets: Cash equivalents: Money market fund deposits $ 45,516 $ — $ — $ 45,516 U.S. treasury bills 35,000 — — 35,000 Total $ 80,516 $ — $ — $ 80,516 As of September 30, 2014: Assets: Cash equivalents: Money market fund deposits $ 11,463 $ — $ — $ 11,463 U.S. treasury bills 34,050 — — 34,050 Total $ 45,513 $ — $ — $ 45,513 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Operating Leases | As of September 30, 2015, future minimum payments under operating leases were as follows: Contractual Payment Obligations Due by Period Total Less than 1 Year 1 to 3 Years 3 to 5 Years More than 5 Years Operating lease obligations (1) $ 7,500 $ 2,300 $ 5,000 $ 200 $ — (1) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted | The following table summarized the weighted-average assumptions used to estimate the fair value of stock options granted during the periods presented: Fiscal Years Ended September 30, 2015 2014 2013 Common stock valuation $ — $ — $ 13.95 Risk-free interest rate — % — % 1.10 % Dividend yield — — — Volatility — % — % 50 % Expected term (in years) — — 6.08 |
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: Weighted Weighted Average Number of Average Remaining Aggregate Shares Exercised Contract Intrinsic (thousands) Price Term Value Balance at September 30, 2012 4,559 $ 4.34 6.08 $ 30,000 Granted 272 13.86 — Exercised (565 ) 1.52 — Forfeited (355 ) 8.00 — Expired (43 ) 4.35 — Balance at September 30, 2013 3,868 5.07 5.34 $ 21,122 Exercised (1,689 ) 1.80 — Forfeited (178 ) 11.29 — Expired (120 ) 10.60 — Balance at September 30, 2014 1,881 7.07 5.98 $ 7,055 Exercised (354 ) 3.71 — Forfeited (177 ) 12.01 — Expired (231 ) 12.18 — Balance at September 30, 2015 1,119 $ 6.29 4.68 $ 4,904 Options exercisable as of September 30, 2015 1,051 $ 5.87 4.53 $ 4,902 Options vested and expected to vest as of September 30, 2015 1,113 $ 6.26 4.67 $ 4,904 |
Weighted-Average Assumptions Used to Estimate Fair Value of ESPP | The following table summarized the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s ESPP plan during the periods presented: Fiscal Years Ended September 30, 2015 2014 2013 Risk-free interest rate 0.12 % 0.12 % 0.15 % Dividend yield — — — Volatility 33 % 34 % 36 % Expected term (in years) 0.50 0.77 0.91 |
Summary of Restricted Stock and Restricted Stock Unit Activity Under All Equity Award Plans | The following table summarizes the Company’s restricted stock and restricted stock unit activity under all equity award plans: Weighted Average Restricted Grant Date Units Fair Value (in thousands) Balance at September 30, 2012 20 $ 10.92 Granted 1,088 15.73 Released (7 ) 12.27 Forfeited (110 ) 15.57 Balance at September 30, 2013 991 $ 15.68 Granted 1,774 9.89 Released (58 ) 16.83 Forfeited (442 ) 8.79 Balance at September 30, 2014 2,265 $ 12.46 Granted 1,505 11.17 Released (963 ) 11.20 Forfeited (505 ) 11.66 Balance at September 30, 2015 2,302 $ 12.32 |
Summary of Unvested Awards | The following table summarizes certain information of the unvested awards as of September 30, 2015: Stock Options Restricted (1) ESPP Total Compensation cost for unvested (in millions) $ 1.4 $ 12.1 $ 0.3 Weighted-average Period to recognized (in years) 1.0 2.3 0.4 |
Stock-based Compensation | Stock-based compensation is as follows: Fiscal Years Ended September 30, 2015 2014 2013 Cost of revenues: (in thousands) License and implementation $ 699 $ 905 $ 591 SaaS and maintenance 799 749 622 Total stock-based compensation in cost of revenues 1,498 1,654 1,213 Operating expenses: Research and development 1,353 1,278 747 Sales and marketing 3,202 2,789 1,687 General and administrative 4,302 4,228 1,209 Total stock-based compensation in operating expenses 8,857 8,295 3,643 Stock-based compensation in operating loss 10,355 9,949 4,856 Stock-based compensation capitalized as software development cost 109 27 182 Total stock-based compensation $ 10,464 $ 9,976 $ 5,038 |
December 6, 2013 Awards [Member] | |
Summary of Grant Date Fair Value Assumptions | The weighted-average assumptions used to estimate the fair values of these awards were determined using the following assumptions: Risk-free interest rate 0.63 % Dividend yield — Volatility 39 % |
March 9, 2015 Awards [Member] | |
Summary of Grant Date Fair Value Assumptions | The grant date fair values of these awards were determined using the following assumptions: Risk-free interest rate 1.10 % Dividend yield — Volatility 32 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 2013 (in thousands) Domestic $ (20,292 ) $ (21,279 ) $ (1,340 ) Foreign 1,181 782 853 Loss before taxes $ (19,111 ) $ (20,497 ) $ (487 ) |
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows: Fiscal Years Ended September 30, 2015 2014 2013 (in thousands) Current State $ 13 $ 53 $ 54 Foreign 482 295 355 495 348 409 Deferred Federal 27 27 27 State 6 9 3 33 36 30 Total provision for income taxes $ 528 $ 384 $ 439 |
Reconciliation of Statutory Federal Income Tax to Company's Effective Tax | Reconciliation of the statutory federal income tax to the Company’s effective tax: Fiscal Years Ended September 30, 2015 2014 2013 (in thousands) Tax at statutory federal rate $ (6,498 ) $ (6,969 ) $ (165 ) State tax, net of federal benefit 13 53 54 Permanent differences 729 727 1,053 Foreign tax rate differential 81 29 65 Change in valuation allowance 6,648 6,625 128 Research and development tax credits (450 ) (175 ) (726 ) Foreign tax credits (7 ) 35 (27 ) Change in deferred tax liabilities 33 36 30 Other (21 ) 23 27 Total provision for income taxes $ 528 $ 384 $ 439 |
Components of Deferred Tax Assets and Liability | Deferred tax assets and liability consisted of the following: As of September 30, 2015 2014 (in thousands) Deferred tax assets: Depreciation and amortization $ (388 ) $ (425 ) Accruals and other 5,431 6,833 Deferred revenue 2,795 3,045 NOL carry-forward 27,107 18,917 Research and development tax credits 7,183 6,315 Total deferred tax assets 42,128 34,685 Valuation allowance (42,128 ) (34,685 ) Net deferred tax assets $ — $ — Deferred tax liabilities: Intangibles $ (122 ) $ (89 ) |
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, 2015 2014 2013 (in thousands) Unrecognized tax benefits at the beginning of the period $ 2,513 $ 1,979 $ 1,683 Gross increase based on tax positions during the prior period 58 18 78 Gross increase based on tax positions during the current period 548 516 218 Unrecognized tax benefits at the end of the period $ 3,119 $ 2,513 $ 1,979 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | The diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, warrants outstanding, options to purchase common stock, unvested restricted stock awards and unvested restricted stock units are considered to be common stock equivalents. Fiscal Years Ended September 30, 2015 2014 2013 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (19,639 ) $ (20,881 ) $ (926 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 26,015 24,399 15,979 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (0.75 ) $ (0.86 ) $ (0.06 ) |
Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders | The following weighted average shares of common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Fiscal Years Ended September 30, 2015 2014 2013 Stock options 1,228,085 1,971,126 4,254,831 Restricted stock awards, performance-based restricted stock units and restricted stock units 724,343 1,090,703 620,528 Preferred stock warrants — — 44,398 ESSP 19,797 22,896 9,313 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 (in thousands) United States $ 6,080 $ 5,858 India 1,473 1,031 Total property and equipment, net $ 7,553 $ 6,889 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
Summary of Restructuring Activity Roll-forward | A roll-forward of the restructuring activity is summarized below: Fiscal Years Ended September 30, 2014 2013 (in thousands) Opening balance $ 1,182 $ — Amounts accrued 26 1,215 Cash payments (1,208 ) (33 ) Balance of accrual $ — $ 1,182 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Fair Value of Warrant | The fair value of the outstanding warrant was determined using the Black-Scholes-Merton option-pricing model. The fair value of the warrant was estimated using the following assumptions for the periods presented below. Fiscal Year Ended September 30, 2013 Risk-free interest rate 0.92 % Dividend yield — Volatility 45 % Expected term (in years) 5.92 |
Change in Fair Value of Convertible Preferred Stock Warrant Liability | The change in the fair value of the convertible preferred stock warrant liability is summarized below: Fiscal September 30, 2013 Opening balance $ 748 Issuance of convertible preferred stock warrant — Increase in fair value 671 Reclassification of warrant liability to additional paid-in capital (1,419 ) Closing balance $ — |
The Company - Additional Inform
The Company - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Date of incorporation | Dec. 14, 1999 |
State of incorporation | Delaware |
Summary of Significant Accoun34
Summary of Significant Accounting Policies and Estimates - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Project implementation term range | Few months to three years | ||
Deferred cost of implementation services | $ 1,100,000 | $ 600,000 | |
Unbilled receivables recorded in balance sheets | 3,000,000 | 800,000 | |
Impairment charge related to purchased intangible assets | 0 | ||
Software development costs capitalized | 2,500,000 | 400,000 | |
Advertising and promoting costs | 300,000 | ||
Employer contribution to employee benefit plan | 400,000 | 0 | $ 0 |
Deferred tax assets fully offset by valuation allowance | $ 42,100,000 | $ 34,700,000 | |
Number of operating segment | Segment | 1 | ||
Software development costs [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated economic lives | 3 years | ||
Minimum [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated economic lives | 3 years | ||
Maximum [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated economic lives | 5 years | ||
Customer Concentration Risk [Member] | Revenue [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable and revenues percentage | 10.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable and revenues percentage | 10.00% |
Summary of Significant Accoun35
Summary of Significant Accounting Policies and Estimates - Summary of Accounts Receivable and Revenues of Customers Comprising 10% or More (Detail) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of Credit Risk | 10.00% | ||
Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of Credit Risk | 10.00% | ||
Company A [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of Credit Risk | 15.00% | 0.00% | |
Company A [Member] | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of Credit Risk | 11.00% | 15.00% | 12.00% |
Company B [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of Credit Risk | 0.00% | 12.00% | |
Company B [Member] | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of Credit Risk | 0.00% | 0.00% | 12.00% |
Summary of Significant Accoun36
Summary of Significant Accounting Policies and Estimates - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2015 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of the lease term or estimated useful life |
Software development costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Computer software and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Minimum [Member] | Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Maximum [Member] | Computer software and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Maximum [Member] | Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Consolidated Balance Sheet Co37
Consolidated Balance Sheet Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 16,846 | $ 13,700 |
Less: Accumulated depreciation and amortization | (10,353) | (6,811) |
Property and equipment excluding construction in progress, net | 6,493 | 6,889 |
Property and equipment, net | 7,553 | 6,889 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 8,383 | 6,931 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 673 | 477 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 875 | 804 |
Software development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,915 | 5,488 |
Capital projects in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 1,060 | $ 0 |
Consolidated Balance Sheet Co38
Consolidated Balance Sheet Components - Schedule of Asset Acquired under Capital Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Property Plant And Equipment [Abstract] | ||
Computer software and equipment | $ 793 | $ 823 |
Less: Accumulated depreciation and amortization | (791) | (819) |
Total computer software and equipment, net | $ 2 | $ 4 |
Consolidated Balance Sheet Co39
Consolidated Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Depreciation of property and equipment | $ 3.8 | $ 3.4 | $ 1.9 |
Amortization expense of intangible assets | $ 0.3 | $ 0.3 | $ 0.3 |
Consolidated Balance Sheet Co40
Consolidated Balance Sheet Components - Schedule of Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Intangible Assets: | ||
Less: Accumulated amortization | $ (3,115) | $ (2,845) |
Total future amortization | $ 317 | 587 |
Developed technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in Years) | 5 years | |
Intangible Assets: | ||
Intangible assets, Gross | $ 2,213 | 2,214 |
Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in Years) | 5 years | |
Intangible Assets: | ||
Intangible assets, Gross | $ 100 | 100 |
Non-competition agreement [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Intangible Assets: | ||
Intangible assets, Gross | $ 100 | 100 |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Intangible Assets: | ||
Intangible assets, Gross | $ 1,019 | $ 1,018 |
Consolidated Balance Sheet Co41
Consolidated Balance Sheet Components - Schedule of Estimated Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 245 | |
2,017 | 72 | |
Total future amortization | $ 317 | $ 587 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - Cash equivalents [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | $ 80,516 | $ 45,513 |
Money market fund deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 45,516 | 11,463 |
U.S. treasury bills [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 35,000 | 34,050 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 80,516 | 45,513 |
Level 1 [Member] | Money market fund deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 45,516 | 11,463 |
Level 1 [Member] | U.S. treasury bills [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 35,000 | 34,050 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 0 | 0 |
Level 2 [Member] | Money market fund deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 0 | 0 |
Level 2 [Member] | U.S. treasury bills [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 0 | 0 |
Level 3 [Member] | Money market fund deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 0 | 0 |
Level 3 [Member] | U.S. treasury bills [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash at bank | $ 10,500,000 | $ 55,500,000 |
Money market fund deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains | 0 | 0 |
Unrealized losses | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments under Operating Leases (Detail) | Sep. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease obligations due, Total | $ 7,500 |
Operating lease obligations due, Less than 1 Year | 2,300 |
Operating lease obligations due, 1 to 3 Years | 5,000 |
Operating lease obligations, 3 to 5 Years | 200 |
Operating lease obligations, More than 5 Years | $ 0 |
Commitments and Contingencies45
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | May. 31, 2013 | |
Commitments And Contingencies [Line Items] | ||||
Rental expense under noncancelable operating leases | $ 2,300,000 | $ 2,000,000 | $ 1,700,000 | |
Credit facility, agreement date | 2010-10 | |||
Revolving credit facility with term loan | $ 0 | $ 7,500,000 | ||
Fixed interest rate, percentage | 8.00% | |||
Interest rate description | The amended and restated loan and security agreement required interest only payments until October 1, 2011 and thirty six (36) equal monthly installments of principal with accrued interest thereafter until maturity on October 1, 2014. | |||
Revolving credit maturity date | Oct. 1, 2014 | |||
Repayment of loan date | May 2,013 | |||
Warrants outstanding | 0 | |||
Revolving Credit Facility [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Recorded interest expense | $ 0 | $ 0 | $ 400,000 | |
Series C Preferred Stock [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Warrant to purchase shares | 86,655 | |||
Warrant exercise price per share | $ 3.462 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | Mar. 09, 2015 | Dec. 06, 2013 | Jun. 15, 2010 | Jan. 31, 2012 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock options, Granted | 0 | 0 | 272,000 | |||||
Number of shares available for future stock awards | 3,700,000 | |||||||
Intrinsic value of options exercised | $ 2.6 | $ 13.8 | $ 7 | |||||
Estimated fair value of options vested | $ 1.6 | 0.6 | 0.6 | |||||
ESPP [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Discounted employee stock purchase plan percentage | 15.00% | |||||||
Fair market value percentage on employee stock purchase plan | 85.00% | |||||||
Offering periods for employee stock purchase plan | Except for the initial offering period, the ESPP provides for six-month offering periods, starting on February 20 and August 20 of each year. | |||||||
2000 Stock Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards, vesting period | 4 years | |||||||
Awards, expiration period | 10 years | |||||||
2013 Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards, vesting period | 4 years | |||||||
Awards, expiration period | 10 years | |||||||
Approved stock reserve | 8,000,000 | |||||||
Approved stock reserved for future issuance | 2,500,000 | |||||||
Plan effective date | Mar. 18, 2013 | |||||||
Plan expiration date | Feb. 28, 2023 | |||||||
Additional shares authorized, percentage of common stock issued | 5.00% | |||||||
Number of stock options, Granted | 0 | |||||||
Restricted stock awards, shares forfeited | 36,818 | |||||||
2013 Equity Incentive Plan [Member] | Restricted Stock Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock issued | 200,000 | |||||||
Fair value of restricted stock awards vested | 0.1 | |||||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Fair value of restricted stock awards vested | $ 8.7 | $ 0.9 | $ 0.8 | |||||
Restricted stock units granted | 348,700 | 280,000 | ||||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | Second Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vest under terms of grants | 50.00% | |||||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | Third Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares vest under terms of grants | 50.00% | |||||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares released under terms of grants | 0.00% | 0.00% | ||||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares released under terms of grants | 250.00% | 250.00% | ||||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | December 6, 2013 Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards, expiration period | 10 years | |||||||
Performance-based restricted stock units, description | The Compensation Committee of the Board approved initial grants of an aggregate of 280,000 performance-based restricted stock units to three of the Company’s senior officers, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares released could be 0% to 250% of the initial grant based on the Company’s total shareholder return (TSR) relative to the TSR of the Russell 3000 index (Index) over a three-year period. In any of the three years, no shares will be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the initial grant will be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the initial grant will be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest as to one-third on each annual anniversary of November 22, 2013, with a “catch-up” provision such that shares not earned in a prior year may be earned in a subsequent year subject to the Company’s TSR achieving a certain level relative to the Index and exceeding the prior year’s TSR. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. As of September 30, 2015 approximately 43,000 of performance based stock units were forfeited and 195,000 shares were released based on the Company’s TSR relative to the Index | |||||||
Number of restricted stock, forfeited | 53,000 | |||||||
Released shares | 195,000 | |||||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | March 9, 2015 Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards, expiration period | 10 years | |||||||
Performance-based restricted stock units, description | The Compensation Committee of the Board of Directors granted an aggregate of 348,700 performance-based restricted stock units to members of the Company’s executive team, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 250% of the grant based on the performance of the Company’s TSR relative to the TSR of the Index over a three-year period. No shares will vest and be released in the first year. In any of the two remaining years, no shares will vest and be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the grant will vest and be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the grant will vest and be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest over a three-year period with 50% vesting on each of the second and the third annual anniversary of the vesting commencing date of February 15, 2015. In addition, these grants have a “catch-up” provision such that if the Company’s TSR relative to the Index for the three-year period exceeds that of the two-year period, additional shares for the two-year period will vest and be released based on the three-year achievement level. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. During nine months ended September 30, 2015, none of performance-based restricted stock units were forfeited and no shares were released based on the Company’s TSR relative to the Index | |||||||
Number of restricted stock, forfeited | 13,000 | |||||||
Released shares | 0 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) - Stock options [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock valuation | $ 13.95 | ||
Risk-free interest rate | 1.10% | ||
Volatility | 50.00% | ||
Expected term (in years) | 0 years | 0 years | 6 years 29 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information Under All Stock Option Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of Shares, Beginning balance | 1,881,000 | 3,868,000 | 4,559,000 | |
Number of Shares, Granted | 0 | 0 | 272,000 | |
Number of Shares, Exercised | (354,000) | (1,689,000) | (565,000) | |
Number of Shares, Forfeited | (177,000) | (178,000) | (355,000) | |
Number of Shares, Expired | (231,000) | (120,000) | (43,000) | |
Number of Shares, Ending balance | 1,119,000 | 1,881,000 | 3,868,000 | 4,559,000 |
Number of Shares, Options exercisable | 1,051,000 | |||
Number of Shares, Options vested and expected to vest | 1,113,000 | |||
Weighted Average Exercised Price, Beginning balance | $ 7.07 | $ 5.07 | $ 4.34 | |
Weighted Average Exercised Price, Granted | 13.86 | |||
Weighted Average Exercised Price, Exercised | 3.71 | 1.80 | 1.52 | |
Weighted Average Exercised Price, Forfeited | 12.01 | 11.29 | 8 | |
Weighted Average Exercise Price, Expired | 12.18 | 10.60 | 4.35 | |
Weighted Average Exercise Price, Ending balance | 6.29 | $ 7.07 | $ 5.07 | $ 4.34 |
Weighted Average Exercised Price, Options exercisable | 5.87 | |||
Weighted Average Exercised Price, Options vested and expected to vest | $ 6.26 | |||
Weighted Average Remaining Contract Term (in Years). Shares outstanding | 4 years 8 months 5 days | 5 years 11 months 23 days | 5 years 4 months 2 days | 6 years 29 days |
Weighted Average Remaining Contract Term (in Years), Options exercisable | 4 years 6 months 11 days | |||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest | 4 years 8 months 1 day | |||
Aggregate Intrinsic Value, Beginning balance | $ 7,055 | $ 21,122 | $ 30,000 | |
Aggregate Intrinsic Value, Ending balance | 4,904 | $ 7,055 | $ 21,122 | $ 30,000 |
Aggregate Intrinsic Value, Exercisable | 4,902 | |||
Aggregate Intrinsic Value, Vested and expected to vest | $ 4,904 |
Stock-Based Compensation - We49
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of ESPP (Detail) - ESPP [Member] | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.12% | 0.12% | 0.15% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 33.00% | 34.00% | 36.00% |
Expected term (in years) | 6 months | 9 months 7 days | 10 months 28 days |
Stock-Based Compensation - Su50
Stock-Based Compensation - Summary of Grant Date Fair Value Assumptions (Detail) - Performance-based Restricted Stock Units [Member] | 12 Months Ended |
Sep. 30, 2015 | |
December 6, 2013 Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.63% |
Dividend yield | 0.00% |
Volatility | 39.00% |
March 9, 2015 Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.10% |
Dividend yield | 0.00% |
Volatility | 32.00% |
Stock-Based Compensation - Su51
Stock-Based Compensation - Summary of Restricted Stock and Restricted Stock Unit Activity Under All Equity Award Plans (Detail) - Restricted Stock Units [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Restricted Stock, Beginning balance | 2,265 | 991 | 20 |
Number of Restricted Stock, Granted | 1,505 | 1,774 | 1,088 |
Number of Restricted Stock, Released | (963) | (58) | (7) |
Number of Restricted Stock, Forfeited | (505) | (442) | (110) |
Number of Restricted Stock, Ending balance | 2,302 | 2,265 | 991 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 12.46 | $ 15.68 | $ 10.92 |
Weighted Average Grant Date Fair Value, Granted | 11.17 | 9.89 | 15.73 |
Weighted Average Grant Date Fair Value, released | 11.20 | 16.83 | 12.27 |
Weighted Average Grant Date Fair Value, Forfeited | 11.66 | 8.79 | 15.57 |
Weighted Average Grant Date Fair Value, Ending balance | $ 12.32 | $ 12.46 | $ 15.68 |
Stock-Based Compensation - Su52
Stock-Based Compensation - Summary of Unvested Awards (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Compensation cost for unvested | $ 1.4 |
Weighted-average Period to recognized (in years) | 1 year |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Compensation cost for unvested | $ 12.1 |
Weighted-average Period to recognized (in years) | 2 years 3 months 18 days |
ESPP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Compensation cost for unvested | $ 0.3 |
Weighted-average Period to recognized (in years) | 4 months 24 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 10,355 | $ 9,949 | $ 4,856 |
Stock-based compensation capitalized as software development cost | 109 | 27 | 182 |
Total stock-based compensation | 10,464 | 9,976 | 5,038 |
Cost of revenues, License and implementation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 699 | 905 | 591 |
Cost of Revenues, SaaS and Maintenance [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 799 | 749 | 622 |
Cost of revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,498 | 1,654 | 1,213 |
Operating expenses, Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,353 | 1,278 | 747 |
Operating expenses, Sales and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 3,202 | 2,789 | 1,687 |
Operating expenses, General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 4,302 | 4,228 | 1,209 |
Operating expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 8,857 | $ 8,295 | $ 3,643 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (20,292) | $ (21,279) | $ (1,340) |
Foreign | 1,181 | 782 | 853 |
Loss before income taxes | $ (19,111) | $ (20,497) | $ (487) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Line Items] | ||||
Cumulative undistributed earnings from foreign subsidiaries | $ 2,800 | |||
Net change in total valuation allowance | 7,400 | |||
Research credit carry forwards | 7,183 | $ 6,315 | ||
Stock option benefits | 3,700 | 3,100 | $ 900 | |
Unrecognized tax benefits | 3,119 | 2,513 | 1,979 | $ 1,683 |
Uncertain tax positions | $ 548 | $ 516 | $ 218 | |
Net operating loss carry-forwards, limitations on use | Internal Revenue Code section 382 places a limitation (the "Section 382 Limitation") on the amount of taxable income can be offset by net operating ("NOL") carry-forwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California has similar rules. | |||
Federal [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss (NOL) carry forwards | $ 82,200 | |||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,021 | |||
Research credit carry forwards | $ 4,800 | |||
Research credit carry forwards, beginning expiring period | 2,020 | |||
California [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss (NOL) carry forwards | $ 26,600 | |||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,016 | |||
Research credit carry forwards, beginning expiring period | indefinitely | |||
California [Member] | Research [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
State research credit carry forwards | $ 5,900 | |||
Other State [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss (NOL) carry forwards | $ 1,000 | |||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,017 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Current | |||
State | $ 13 | $ 53 | $ 54 |
Foreign | 482 | 295 | 355 |
Total current | 495 | 348 | 409 |
Deferred | |||
Federal | 27 | 27 | 27 |
State | 6 | 9 | 3 |
Total deferred | 33 | 36 | 30 |
Total provision for income taxes | $ 528 | $ 384 | $ 439 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax to Company's Effective Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | $ (6,498) | $ (6,969) | $ (165) |
State tax, net of federal benefit | 13 | 53 | 54 |
Permanent differences | 729 | 727 | 1,053 |
Foreign tax rate differential | 81 | 29 | 65 |
Change in valuation allowance | 6,648 | 6,625 | 128 |
Research and development tax credits | (450) | (175) | (726) |
Foreign tax credits | (7) | 35 | (27) |
Change in deferred tax liabilities | 33 | 36 | 30 |
Other | (21) | 23 | 27 |
Total provision for income taxes | $ 528 | $ 384 | $ 439 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liability (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Deferred tax assets: | ||
Depreciation and amortization | $ (388) | $ (425) |
Accruals and other | 5,431 | 6,833 |
Deferred revenue | 2,795 | 3,045 |
NOL carry-forward | 27,107 | 18,917 |
Research and development tax credits | 7,183 | 6,315 |
Total deferred tax assets | 42,128 | 34,685 |
Valuation allowance | (42,128) | (34,685) |
Net deferred tax assets | 0 | 0 |
Deferred tax liabilities: | ||
Intangibles | $ (122) | $ (89) |
Income Taxes - Reconciliation59
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at the beginning of the period | $ 2,513 | $ 1,979 | $ 1,683 |
Gross increase based on tax positions during the prior period | 58 | 18 | 78 |
Gross increase based on tax positions during the current period | 548 | 516 | 218 |
Unrecognized tax benefits at the end of the period | $ 3,119 | $ 2,513 | $ 1,979 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Numerator: | |||
Net loss attributable to common stockholders | $ (19,639) | $ (20,881) | $ (926) |
Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders | 26,015 | 24,399 | 15,979 |
Basic and diluted: | |||
Net Loss per Share Attributable to Common Stockholders: Basic and diluted | $ (0.75) | $ (0.86) | $ (0.06) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 1,228,085 | 1,971,126 | 4,254,831 |
Restricted stock awards, performance-based restricted stock units and restricted stock units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 724,343 | 1,090,703 | 620,528 |
Preferred stock warrants [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 44,398 | ||
ESSP [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 19,797 | 22,896 | 9,313 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | 1 | ||
Other [Member] | Geographic concentration risk [Member] | Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers outside United States | 6.00% | 11.00% | 14.00% |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues in excess | 10.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 7,553 | $ 6,889 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 6,080 | 5,858 |
India [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 1,473 | $ 1,031 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Restructuring And Related Activities [Abstract] | ||
Amounts accrued (released) | $ 26 | $ 1,215 |
Restructuring Charges - Summary
Restructuring Charges - Summary of Restructuring Activity Roll-forward (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Restructuring And Related Activities [Abstract] | ||
Opening balance | $ 1,182 | |
Amounts accrued | 26 | $ 1,215 |
Cash payments | $ (1,208) | (33) |
Balance of accrual | $ 1,182 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 19, 2010 | May. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2015 |
Class of Warrant or Right [Line Items] | |||||
Warrant exercisable period | 10 years | ||||
Revaluation expense | $ 700 | $ 0 | |||
Series C Convertible Preferred Stock [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant exercise price per share | $ 3.462 | ||||
Common Stock [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Revaluation expense | $ 0 | ||||
Number of common stock issued upon the conversion of common stock warrant, net of the warrant price | 72,000 | ||||
Common Stock [Member] | IPO [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Company's Series C Preferred Stock issued | 86,655 | ||||
Warrant [Member] | Series C Convertible Preferred Stock [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Company's Series C Preferred Stock issued | 86,655 | ||||
Warrant [Member] | IPO [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Number of common stock issued upon the conversion of common stock warrant, net of the warrant price | 71,847 |
Convertible Preferred Stock - F
Convertible Preferred Stock - Fair Value of Warrant (Detail) | 12 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | |
Risk-free interest rate | 0.92% |
Dividend yield | 0.00% |
Volatility | 45.00% |
Expected term (in years) | 5 years 11 months 1 day |
Convertible Preferred Stock - C
Convertible Preferred Stock - Change in Fair Value of Convertible Preferred Stock Warrant Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Equity [Abstract] | |||
Opening balance | $ 0 | $ 748 | |
Issuance of convertible preferred stock warrant | 0 | ||
Increase in fair value | $ 0 | $ 0 | 671 |
Reclassification of warrant liability to additional paid-in capital | (1,419) | ||
Closing balance | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($) | Nov. 04, 2015 | Oct. 30, 2015 | Oct. 19, 2010 |
Subsequent Event [Line Items] | |||
Contribution towards the settlement | $ 250,000 | ||
Channel Insight [Member] | |||
Subsequent Event [Line Items] | |||
Business acquisition, agreement date | Oct. 19, 2015 | ||
Business acquisition, transactions closed date | Oct. 30, 2015 | ||
Cash paid for acquisition | $ 12,600,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance for deferred tax assets, Balance at Beginning of Period | $ 34,685 | ||
Valuation allowance for deferred tax assets, Balance at End of Period | 42,128 | $ 34,685 | |
Allowance for doubtful receivables [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for doubtful receivables, Balance at Beginning of Period | 0 | 46 | $ 55 |
Charged to Costs and Expenses | 0 | 0 | 48 |
Charged to Other Accounts | 0 | 46 | 57 |
Allowance for doubtful receivables, Balance at End of Period | 0 | 0 | 46 |
Valuation allowance for deferred tax assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance for deferred tax assets, Balance at Beginning of Period | 34,685 | 26,895 | 27,515 |
Charged to Costs and Expenses | 6,443 | 7,790 | 0 |
Charged to Other Accounts | 0 | 0 | 620 |
Valuation allowance for deferred tax assets, Balance at End of Period | $ 41,128 | $ 34,685 | $ 26,895 |