Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 03, 2017 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 29,329,972 | ||
Entity Public Float | $ 243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 57,558 | $ 66,149 |
Accounts receivable, net of allowance for doubtful accounts of $85 and $0 at September 30, 2017 and 2016 | 24,784 | 19,925 |
Deferred cost of implementation services, current portion | 493 | 1,630 |
Prepaid expenses | 3,733 | 4,845 |
Other current assets | 520 | 283 |
Total current assets | 87,088 | 92,832 |
Property and equipment, net | 4,611 | 6,141 |
Goodwill | 39,283 | 6,939 |
Intangible assets, net | 40,156 | 5,684 |
Other assets | 798 | 1,371 |
Total assets | 171,936 | 112,967 |
Current liabilities: | ||
Accounts payable | 3,002 | 3,334 |
Accrued employee compensation | 14,996 | 8,349 |
Accrued liabilities | 4,979 | 3,707 |
Deferred revenue, current portion | 49,186 | 28,854 |
Short-term debt | 4,753 | |
Total current liabilities | 76,916 | 44,244 |
Deferred revenue, net of current portion | 227 | 1,924 |
Long-term debt | 52,452 | |
Other long-term liabilities | 1,080 | 597 |
Total liabilities | 130,675 | 46,765 |
Commitments and contingencies (Note 8) | ||
Convertible preferred stock: | ||
Convertible preferred stock, $0.0005 par value; no shares authorized, issued and outstanding at September 30, 2017 and 2016, respectively | 0 | 0 |
Stockholders' equity: | ||
Common Stock, $0.00015 par value; 200,000 shares authorized; 29,323 and 27,891 shares issued and outstanding at September 30, 2017 and September 30, 2016, respectively | 4 | 4 |
Preferred Stock, $0.00015 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 217,052 | 202,506 |
Accumulated other comprehensive loss | (502) | (562) |
Accumulated deficit | (175,293) | (135,746) |
Total stockholders' equity | 41,261 | 66,202 |
Total liabilities and stockholders' equity | $ 171,936 | $ 112,967 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 85 | $ 0 |
Convertible preferred stock, par value | $ 0.0005 | $ 0.0005 |
Convertible preferred stock, shares authorized | 0 | 0 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.00015 | $ 0.00015 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 29,323,000 | 27,891,000 |
Common Stock, shares outstanding | 29,323,000 | 27,891,000 |
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | |||
License and implementation | $ 23,114 | $ 20,579 | $ 36,172 |
SaaS and maintenance | 108,055 | 86,392 | 57,596 |
Total revenues | 131,169 | 106,971 | 93,768 |
Cost of revenues: | |||
License and implementation | 14,224 | 12,976 | 15,555 |
SaaS and maintenance | 46,872 | 40,717 | 26,014 |
Total cost of revenues | 61,096 | 53,693 | 41,569 |
Gross profit | 70,073 | 53,278 | 52,199 |
Operating expenses: | |||
Research and development | 31,064 | 23,706 | 17,906 |
Sales and marketing | 41,339 | 32,261 | 30,300 |
General and administrative | 36,281 | 30,051 | 23,132 |
Total operating expenses | 108,684 | 86,018 | 71,338 |
Loss from operations | (38,611) | (32,740) | (19,139) |
Interest expense (income), net | 4,159 | (50) | (6) |
Other expenses (income), net | 62 | 86 | (22) |
Loss before income taxes | (42,832) | (32,776) | (19,111) |
(Benefit) provision for income taxes | (3,285) | 335 | 528 |
Net loss | $ (39,547) | $ (33,111) | $ (19,639) |
Net loss per share attributable to common stockholders: | |||
Basic and diluted | $ (1.38) | $ (1.21) | $ (0.76) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | |||
Basic and diluted | 28,649 | 27,379 | 26,015 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (39,547) | $ (33,111) | $ (19,639) |
Other comprehensive income (loss), net: | |||
Change in foreign currency translation adjustment | 60 | (96) | (177) |
Total comprehensive loss | $ (39,487) | $ (33,207) | $ (19,816) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance at Sep. 30, 2014 | $ 88,964 | $ 4 | $ 172,245 | $ (289) | $ (82,996) |
Beginning balance, shares at Sep. 30, 2014 | 25,085 | ||||
Issuance of common stock upon exercise of stock options | $ 1,312 | $ 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 |
Issuance of common stock upon release of restricted stock units, shares | 963 | ||||
Issuance of common stock under stock purchase plans | 2,138 | $ 0 | 2,138 | 0 | 0 |
Issuance of common stock under stock purchase plans, shares | 264 | ||||
Stock-based compensation | 10,464 | $ 0 | 10,464 | 0 | 0 |
Other comprehensive income (loss) | (177) | 0 | 0 | (177) | 0 |
Net loss | (19,639) | 0 | 0 | 0 | (19,639) |
Ending balance at Sep. 30, 2015 | 83,062 | $ 4 | 186,159 | (466) | (102,635) |
Ending balance, shares at Sep. 30, 2015 | 26,666 | ||||
Issuance of common stock upon exercise of stock options | $ 923 | $ 0 | 923 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 233 | 233 | |||
Issuance of common stock upon release of restricted stock units | $ 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock upon release of restricted stock units, shares | 719 | ||||
Issuance of common stock under stock purchase plans | 2,356 | $ 0 | 2,356 | 0 | 0 |
Issuance of common stock under stock purchase plans, shares | 273 | ||||
Stock-based compensation | 13,068 | $ 0 | 13,068 | 0 | 0 |
Other comprehensive income (loss) | (96) | 0 | 0 | (96) | 0 |
Net loss | (33,111) | 0 | 0 | 0 | (33,111) |
Ending balance at Sep. 30, 2016 | 66,202 | $ 4 | 202,506 | (562) | (135,746) |
Ending balance, shares at Sep. 30, 2016 | 27,891 | ||||
Issuance of common stock upon exercise of stock options | $ 1,339 | $ 0 | 1,339 | 0 | 0 |
Issuance of common stock upon exercise of stock options, shares | 329 | 329 | |||
Issuance of common stock upon release of restricted stock units | $ 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock upon release of restricted stock units, shares | 813 | ||||
Issuance of common stock under stock purchase plans | 2,647 | $ 0 | 2,647 | 0 | 0 |
Issuance of common stock under stock purchase plans, shares | 290 | ||||
Stock-based compensation | 10,560 | $ 0 | 10,560 | 0 | 0 |
Other comprehensive income (loss) | 60 | 0 | 0 | 60 | 0 |
Net loss | (39,547) | 0 | 0 | 0 | (39,547) |
Ending balance at Sep. 30, 2017 | $ 41,261 | $ 4 | $ 217,052 | $ (502) | $ (175,293) |
Ending balance, shares at Sep. 30, 2017 | 29,323 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (39,547) | $ (33,111) | $ (19,639) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization | 8,185 | 5,929 | 4,076 |
Stock-based compensation | 10,560 | 13,068 | 10,355 |
Amortization of debt discount and issuance costs | 683 | ||
Deferred income taxes | (3,952) | 172 | 33 |
Other non-cash charges | 216 | (94) | 194 |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | 1,420 | (2,850) | (925) |
Prepaid expenses and other assets | 2,117 | (1,458) | (1,218) |
Deferred cost of implementation services | 1,502 | (996) | (518) |
Accounts payable | (1,558) | 1,494 | 457 |
Accrued employee compensation | 2,626 | (677) | (16) |
Other accrued and long-term liabilities | 13 | 253 | 976 |
Deferred revenue | 5,770 | 5,946 | (2,547) |
Net cash used in operating activities | (11,965) | (12,324) | (8,772) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (359) | (2,102) | (2,075) |
Acquisition of business, net of cash acquired | (47,773) | (12,615) | |
Capitalization of software development costs | (369) | (1,072) | (2,531) |
Net cash used in investing activities | (48,501) | (15,789) | (4,606) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options and issuance of employee stock purchase plan | 3,986 | 3,279 | 3,450 |
Proceeds from term loan | 48,686 | ||
Debt issuance costs | (806) | ||
Net cash provided by financing activities | 51,866 | 3,279 | 3,450 |
Effect of exchange rate changes on cash and cash equivalents | 9 | (36) | (59) |
Net decrease in cash and cash equivalents | (8,591) | (24,870) | (9,987) |
Cash and cash equivalents | |||
Beginning of period | 66,149 | 91,019 | 101,006 |
End of period | 57,558 | 66,149 | 91,019 |
Supplemental Disclosure of Cash Flow Data: | |||
Cash paid for income taxes | 677 | $ 233 | 364 |
Cash paid for interest | 3,462 | ||
Noncash Investing and Financing Activities: | |||
Promissory notes issued for acquisition | $ 8,643 | ||
Capitalized stock options in software development costs | $ 109 |
The Company
The Company | 12 Months Ended |
Sep. 30, 2017 | |
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 sciences and technology industries. The Company’s solutions enable its customers to maximize revenues and reduce revenue compliance risk by transforming their revenue life cycle from a series of tactical, disjointed operations into a strategic end-to-end process, which enables them to manage the strategy and execution of pricing, contracting, incentives and rebates. The Company’s corporate headquarters are located in San Mateo, California, with additional offices in the United States, India and Switzerland. Fiscal Year The Company’s fiscal year ends on September 30. References to fiscal year 2017, for example, refer to the fiscal year ended September 30, 2017. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Sep. 30, 2017 | |
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 and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. Revenue Recognition Revenues are comprised of 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 managed support services, training and customer-reimbursed expenses. The Company has determined that its subscriptions have standalone value without the implementation services and allocates revenue to each deliverable in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE are available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company established the BESP for each element by considering company-specific factors such as existing pricing and discounting. The total arrangement fee for a multiple element arrangement is allocated based on the relative selling price method, taking into consideration contingent revenue restraints. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. Prior to fiscal year 2016, for SaaS arrangements related to Revenue Cloud for Life Science and High Tech companies the Company treated the entire arrangement consideration, including subscription fees and related implementation services fees, as a single unit of accounting and recognized the revenues ratably beginning the day the customer was provided access to the subscription service through the end of contractual period. During fiscal year 2016, the Company concluded that the SaaS deliverable has standalone value to the customer without the implementation services, primarily due to the number of third-party consulting companies that have the know-how to be able to independently perform the implementation services. Revenue related to up-front fees are deferred and recognized ratably over the estimated period that the customer benefits from the related service. Maintenance and support revenue include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Managed support services revenue includes supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenue and managed support services revenue are recognized ratably over the period in which the services are provided. The revenue from training and customer-reimbursed expenses is recognized as the Company delivers these services. Arrangements that include term-based licenses for current products with the right to use unspecified future versions of the software and maintenance and support during the coverage period, are also accounted for as subscriptions, with revenue recognized ratably over the coverage period. 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 or reasonable estimable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. The Company does not offer any contractual rights of return or concessions. The Company’s implementation projects generally have a term ranging from a few months to twelve months and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. Costs of Revenues Cost of 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, third party contractors, facility expense, amortization of intangibles 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, 2017 and 2016, the deferred cost of implementation services totaled $0.6 million and $2.1 million, respectively. Warranty The Company provides limited warranties on all sales and provides for the estimated cost of warranties at the date of sale. The estimated cost of warranties has not been material to date. Foreign Currency Translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. The effects of foreign currency translations are recorded in accumulated other comprehensive loss as a separate component of stockholders’ equity in the accompanying consolidated statements of stockholders’ equity. Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of money market funds, and are maintained with financial institutions with high credit ratings. Concentration of Credit Risk and Significant Customers The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2017 and 2016 and of the Company’s total revenues for the fiscal years ended September 30, 2017, 2016 and 2015, respectively: As of September 30, Accounts Receivable 2017 2016 Company A N/A 12% Fiscal Years Ended September 30, Revenue 2017 2016 2015 Company B 11% N/A 11% Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on management’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of this allowance for doubtful accounts by considering historical experience, the age of the accounts receivable balances, the credit quality of the customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. Revenue that has been recognized, but for which the Company has not invoiced the customer, amounting to $ 4.6 million a Property and Equipment, Net Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. Long-lived Assets The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company did 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 events or changes in circumstances indicate that the carrying value may not be recoverable. We conducted our annual impairment test of goodwill as of September 30, 2017 and 2016. 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, Intangible assets, consisting of developed technology, backlog, non-competition agreements customer relationships and trade name, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to ten years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements, trade name and customer relationships is included in sales and marketing expense. No goodwill or intangible assets impairment has been identified in any of the years presented. Research and Development and Capitalization of Software Development Costs The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. The Company capitalized software development costs of $0.4 million, Fair Value of Financial Instruments The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. The Company’s Level 1 assets consist of cash equivalent. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. Sales Commissions Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. The Company incurred $ 0.3 million 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 $0.7 million, $0.6 million and $0.4 million for the years ended September 30 , 2017, 2016 and 2015. Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options and restricted stock units (“RSUs”) is measured and recognized based on the fair value of the awards on the grant date. The fair value is recognized as expense, net of estimated forfeitures on a ratable basis, over the requisite service period, which is generally the vesting period of the respective award. The Company uses a Monte Carlo simulation model to determine the fair value of its performance-based restricted stock units (“PB-RSUs”) on the grant date. The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. As the PB-RSUs are only granted to executives and leadership team, the Company has determined no forfeiture rate would be applied to the PB-RSUs. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards and employee stock purchase plan (“ESPP”). The Black-Scholes-Merton valuation model requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Income Taxes The Company accounts for income taxes in accordance with the FASB ASC No. 740— Accounting for Income Taxes 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, 2017 and 2016, 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 item s of $92.5 million Segment The Company has one operating segment with one business activity, developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information as presented on a consolidated basis. Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive (loss) income. Other comprehensive loss includes foreign currency translation adjustments. Recent Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this standard, but does not believe this will have material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the Step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of the Company’s fair value of with carrying amount and the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalent balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. The guidance becomes effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In August 2016, the Financial Accounting Standard Board (“FASB”) issued ASU 2016-15, Statement of Cash Flow (Topic 230), amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, but does not believe this will have material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, guidance related to stock-based compensation, which includes the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance becomes effective for the Company Company is In February 2016, the FASB issued ASU 2016-02, guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of the Company’s Company is In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The standard became effectives to the Company in the fourth quarter of fiscal year 2017. The adoption of the standard had no material impact on the Company’s consolidated financial statements. In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard, Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, as amended, which will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services. ASU 2014-09 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates, and also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. The FASB has issued several amendments to the new standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The amendments include ASU 2016-08, Revenue from Contracts with Customers (Topic 606)—Principal versus Agent Considerations, which was issued in March 2016, and clarifies the implementation guidance for principal versus agent considerations in ASU 2014-09, and ASU 2016-10, Revenue from Contracts with Customers (Topic 606)—Identifying Performance Obligations and Licensing, which was issued in April 2016, and amends the guidance in ASU 2014-09 related to identifying performance obligations and accounting for licenses of intellectual property. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, the Company will adopt the new standard effective October 1, 2018. The Company currently anticipate adopting the standard using the modified retrospective method. The Company |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations Revitas Acquisition On January 5, 2017, the Company completed the acquisition of 100% of the equity interests of Sapphire Stripe Holdings, Inc., the parent company of Revitas, Inc. (“Revitas”). Pursuant to the Agreement and Plan of Merger (“Merger Agreement”), the Company paid approximately $52.8 million in cash and issued to the sellers two $5.0 million promissory notes, one which will mature 18 months after the closing and the other which will mature 36 months after the closing. The Company acquired Revitas to, among other things, expand the Company’s revenue management solutions for customers. In connection with Revitas acquisition, the Company funded the cash portion of the purchase price, in part with a five year term loan in the aggregate amount of $50.0 million. See Note 6, “Debt”, for additional information. The Company included Revitas’ results of operations from the date of acquisition and the estimated fair value of assets and liabilities in its consolidated balance sheets. The Company incurred acquisition and transactional costs associated with the acquisition of Revitas of approximately $2.2 million for the fiscal year ended September 30, 2017, which were recorded as general and administrative expenses. Purchase Price Allocation The total preliminary purchase price for Revitas was approximately $61.5 million, which was comprised of $52.8 million in cash and the fair value of the promissory note of $8.6 million, see Note 6, “Debt”, for additional details. The preliminary allocation of the purchase price is based on valuations derived from estimated fair value assessments and assumptions used by the Company. While the Company believes that its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The fair value of the assets acquired and liabilities assumed is subject to change within the measurement period (up to one year from the acquisition date). As of the acquisition date, the preliminary allocation of the purchase price is as follows: Estimated Fair Value (in thousands) Cash and cash equivalents $ 5,067 Accounts receivable 6,184 Prepaid expenses 1,067 Other current assets 47 Property, plant and equipment 1,506 Intangible assets 39,100 Goodwill 32,344 Other assets 25 Total assets acquired 85,340 Accounts payable (1,352 ) Accrued employee compensation (3,983 ) Accrued liabilities (1,410 ) Deferred revenue liability (12,856 ) Other liabilities (4,256 ) Total liabilities assumed (23,857 ) Net acquired assets $ 61,483 The following table presents certain information on the acquired identifiable assets: Intangible assets Fair value (in thousands) Estimated useful lives (years) Weighted-average estimated useful lives (years) Developed technology $ 6,770 6 6 Customer relationship $ 32,180 10 10 Trade name $ 150 1 1 The purchase accounting allocation resulted in an ascribed value to the acquired intangible assets of $39.1 million and goodwill of $32.3 million. The key factors attributable to the creation of goodwill by the transaction are synergies in skill-sets, return on future technology and customer development. We do not expect the goodwill recognized as a part of the acquisition to be deductible for income tax purposes. See Note 5, “Goodwill” for additional information. Unaudited Pro Forma Combined Consolidated Financial Information The results of operations for Revitas and the estimated fair values of the assets acquired and liabilities assumed have been included in the Company’s consolidated financial statements since the respective dates of acquisition. Since the close of the acquisition, Revitas contributed approximately $20.7 million to the Company’s revenue and increased net losses by $6.3 million. The unaudited pro forma combined consolidated financial information is presented for illustrative purpose only and is not necessarily indicative of the result of operations that would have actually been reported had the acquisitions occurred on the above dates, nor is it necessarily indicative of the future results of operations of the combined company. The unaudited pro forma combined consolidated financial information reflects certain adjustments, such as amortization, interest expense, deferred tax valuation allowance and transaction related costs. The following unaudited pro forma combined consolidated financial information has been prepared by the Company using the acquisition method of accounting to give effect to the Revitas acquisition as if it had occurred on October 1, 2015. The following table sets forth the unaudited pro forma consolidated combined results of operations: Fiscal Year Ended September 30, 2017 2016 (in thousands, except per share data) Revenue $ 140,227 $ 149,632 Net loss (45,346 ) (38,656 ) Net loss per shares-basic and diluted $ (1.58 ) $ (1.41 ) Channelinsight Inc. (CI) Acquisition On October 30, 2015, the Company acquired certain assets and liabilities of Channelinsight Inc. (CI), a privately held cloud-based channel data management solution provider. The Company paid a total purchase price of $12.6 million in cash. Pro forma results have not been presented as the Company does not consider the acquisition to be significant. The purchase consideration was allocated to tangible, identifiable intangible assets acquired and liabilities assumed based on their respective fair values as of the acquisition date. This allocation resulted in fair value allocated to intangible assets of $6.8 million and goodwill of $5.4 million. The goodwill is deductible for tax purposes. Intangible assets acquired included developed technology, backlog, patents, trade names and customer relationships, and are being amortized on a straight-line basis over their estimated useful lives of 1 to 10 years. The key factors attributable to the creation of goodwill by the transaction are synergies in skill-sets, operations, customer base and organizational cultures. The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the accompanying financial statements since the acquisition date. |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 12 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheet Components | 4. Consolidated Balance Sheet Components Components of property and equipment, and intangible assets consisted of the following: Property and Equipment As of September 30, 2017 2016 (in thousands) Computer software and equipment $ 10,274 $ 9,319 Furniture and fixtures 1,284 1,117 Leasehold improvements 1,466 1,240 Software development costs 9,416 8,254 Total property and equipment 22,440 19,930 Less: Accumulated depreciation and amortization (17,829 ) (14,582 ) Property and equipment, net 4,611 5,348 Add: Capital projects in progress — 793 Total property and equipment, net $ 4,611 $ 6,141 Depreciation expense including depreciation of assets under capital leases totaled $3.5 million Intangible Assets As of September 30, 2017 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (4,545 ) $ 7,538 Backlog 5 280 (215 ) 65 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 36,599 (4,084 ) 32,515 Trade name 1 260 (222 ) 38 Total $ 49,322 $ (9,166 ) $ 40,156 As of September 30, 2016 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5 $ 5,313 $ (2,857 ) $ 2,456 Backlog 5 280 (149 ) 131 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 4,419 (1,331 ) 3,088 Trade name 1 110 (101 ) 9 Total $ 10,222 $ (4,538 ) $ 5,684 The Company recorded amortization expense related to the acquired intangible assets of $4.6 million, $1.4 million and $0.3 million during the fiscal years ended September 30, 2017, 2016 and 2015, respectively. Estimated future amortization expense for the intangible assets as of September 30, 2017 is as follows: Fiscal September 30, (in thousands) 2018 5,559 2019 5,466 2020 4,751 2021 4,687 2022 and thereafter 19,693 Total future amortization $ 40,156 |
Goodwill
Goodwill | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 5. Goodwill The following table presents goodwill activity for the years ended September 30, 2017 and 2016 (in thousands): Balance as at September 30, 2015 $ 1,509 Add: Goodwill from acquisition of business 5,430 Balance as at September 30, 2016 $ 6,939 Add: Goodwill from acquisition of business 32,344 Balance as at September 30, 2017 $ 39,283 As a result of the acquisition of Revitas in fiscal 2017, the Company recognized preliminary goodwill of $32.3 million. See Note 3, “Business Combination”, for additional details. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 6. Term Loan In connection with the Revitas acquisition, on January 5, 2017, the Company entered into a Financing Agreement (“Financing Agreement)” by and among the Company, the Subsidiaries, as guarantors, Crystal Financial SPV, LLC and TC Lending, LLC (collectively, the “Lenders”), as administrative agent for the lenders, sole lead arranger, and collateral agent for the Lenders, pursuant to which the Lenders have extended term loan to the Company in an aggregate principle amount of $50.0 million. The term loan made pursuant to the Financing Agreement will bear interest at a rate of either (i) the Base Rate (as defined in the Financing Agreement) plus 9.25% or (ii) the LIBOR Rate (as defined in the Financing Agreement) plus 8.25%, as selected by the Company. The term loans mature on January 5, 2022. As of September 30, 2017, the Company selected LIBOR Rate plus 8.25%. The Company must repay 0.625% of the aggregate principal amount of the term loans on the last business day of each fiscal quarter, beginning with the fiscal quarter ending March 31, 2019. The Company may voluntarily prepay the terms loans, subject to a 3% premium during the first 24 months and 1% premium after 24 months and prior to 36 months. Certain mandatory prepayments are required upon the sale of certain assets, the receipt of certain insurance or condemnation proceeds or extraordinary receipts, the issuance of certain securities or debt, the occurrence of excess cash flows and the occurrence of certain restrictions on the business of the combined company or certain divestitures. The Financing Agreement requires the Company and the subsidiaries to maintain certain financial covenants, including achieving certain levels of revenue from specified sources, as outlined in the agreement, and maintaining cash and cash-equivalents of $20.0 million net of accounts payable in excess of $0.5 million 90 days overdue. The Financing Agreement also contains certain non-financial covenants, including restricting our ability to dispose of assets, changing our organizational documents or amending our material agreements in a manner adverse to the lender, changing a method of accounting, merging with or acquiring other entities, incurring other indebtedness and making certain investments. The Company in compliance with all of the covenants described in the Financing Agreements as of September 30, 2017. The subsidiary guarantors have jointly and severally guaranteed the payment in full of all obligations under the Financing Agreement. The Company and the subsidiary guarantors’ obligations under the Financing Agreement are secured by substantially all of their assets and a pledge of certain of the Company and the subsidiaries’ stock. Promissory Notes Also, in connection with the Revitas acquisition, the Company incurred $10.0 million in debt in the form of two promissory notes with the sellers, one which will mature on July 5, 2018 and the other which will mature on January 5, 2020. These promissory notes bear interest at the rate of 3% per annum, and are subject to a right of set-off as partial security for the indemnification obligations of target’s stockholders under the Merger Agreement. These promissory notes are subordinate to the term loan. The preliminary fair value of the promissory notes of $8.6 million was determined based on a discounted future cash flow at 9.96% interest rate, which represents an arm’s length interest rate. As of September 30, 2017, the term loan and promissory notes consisted of the following: Amount (in thousands) Principal $ 60,000 Unamortized debt discount and issuance costs (2,795 ) Net carrying amount $ 57,205 The Company incurred approximately $0.8 million in transaction costs in connection with the term loan. These costs are included as part of the Company’s debt. The effective interest rate for the term loan is 10.5%, the 18 month promissory note is 9.74% and the 36 month promissory note is 9.89%. The future scheduled principal payments for the term loan and promissory notes as of September 30, 2017 were as follows (in thousands): Fiscal Year: 2018 $ 5,000 2019 937 2020 6,250 2021 1,250 2022 46,563 Total $ 60,000 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 7 . Financial Instruments The table below sets forth the Company’s cash equivalents as of September 30, 2017 and 2016, 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, 2017: Assets: Cash equivalents $ 47,754 $ — $ — $ 47,754 Total $ 47,754 $ — $ — $ 47,754 As of September 30, 2016: Assets: Cash equivalents $ 64,658 $ — $ — $ 64,658 Total $ 64,658 $ — $ — $ 64,658 The Company’s cash equivalents as of September 30, 2017 and 2016 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, 2017 and 2016. The Company’s financial instruments not measured at fair value on a recurring basis include cash, accounts receivable, accounts payable and accrued liabilities, and are reflected in the financial statements at cost and approximates their fair value due to their short-term nature. The term loan carrying value is approximately fair value since the term loan bears interest at rates that fluctuate with the changes in the Base Rate or the Libor Rate as selected by the Company. The promissory notes carrying values approximate their fair value as of September 30, 2017. As of September 30, 2017 and 2016, amounts of $9.8 million and $1.5 million, respectively, were held in bank deposits. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases The Company leases facilities under noncancelable operating leases. As of September 30, 2017, 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) $ 4,300 $ 1,600 $ 1,700 $ 1,000 $ — (1) Rent expense under noncancelable operating leases for the fiscal years ended September 30, 2017, 2016 and 2015 was $3.2 million, $2.7 million and $2.3 million, respectively. Indemnification Obligations Each of the Company’s software licenses contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third party. The software license also provides for indemnification by the Company of the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third party rights. The Company has not had to reimburse any of its customers for losses related to indemnification provisions, and there were no material claims against the Company outstanding as of September 30, 2017 and 2016. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the software license, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. As permitted under Delaware law, the Company has indemnification arrangements with respect to its officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the Company. Legal Proceedings We are not currently a party to any pending material legal proceedings. From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm and other factors. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9 . 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 employees, directors and other eligible participants. Stock purchase rights may also be granted under the 2000 Plan. The exercise price of the stock options shall not be less than the estimated fair value of the underlying shares of the common stock on the grant date. Options generally vest over four years and expire ten years from the date of grant. In connection with the adoption of the 2010 Equity Incentive Plan (the “2010 Plan”) in June 2010, the 2000 Plan was terminated and all shares of common stock previously reserved but unissued were transferred to 2010 Plan. 2010 Equity Incentive Plan On June 15, 2010, the Company’s Board adopted the 2010 Equity Incentive Plan under which employees, directors, and other eligible participants of the Company or any subsidiary of the Company may be granted incentive stock options, nonstatutory stock options and all other types of awards to purchase shares of the Company’s common stock. The total number of shares reserved and available for grant and issuance pursuant to this 2010 Plan consists of (a) any authorized shares not issued or subject to outstanding grants under the 2000 Plan on the adoption date, (b) shares that are subject to issuance upon exercise of options granted under the Plan but cease to exist for any reason other than exercise of such options; and (c) shares that were issued under the Plan which are repurchased by the Company at the original issue price or forfeited. In connection with the adoption of the 2013 Equity Incentive Plan in February 2013, the 2010 Plan was terminated and all shares of common stock previously reserved but unissued were transferred to 2013 Plan. 2013 Equity Incentive Plan The Company’s board 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. As of September 30, 2017, 4.4 million shares were available for future stock awards under the plans and any additional releases resulting from an over-achievement relating to performance-based restricted stock units. Stock Options There were no stock options granted in fiscal years 2017, 2016 and 2015, respectively. The expected terms of options granted were calculated using the simplified method, determined as the average of the contractual term and the vesting period. Estimated volatility is derived from the historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the option. The risk-free interest rate is based on the U.S. treasury constant maturities in effect at the time of grant for the expected term of the option. We use historical data to estimate the number of future stock option forfeitures. The following table summarized the stock option activity and related information under all stock option plans: Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Shares Exercised Contract Value (in thousands) Price Term (in years) (in thousands) 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 Exercised (233 ) 3.96 — Forfeited (12 ) 13.70 — Expired (68 ) 12.72 — Balance at September 30, 2016 806 $ 6.31 3.56 $ 4,103 Exercised (329 ) 4.06 — Forfeited — — — Expired (24 ) 11.69 — Balance at September 30, 2017 453 $ 7.71 3.53 $ 3,281 Options exercisable as of September 30, 2017 453 $ 7.71 3.53 $ 3,281 Options vested and expected to vest as of September 30, 2017 453 $ 7.71 3.53 $ 3,281 The intrinsic value of options exercised during 2017, 2016 and 2015 was $2.5 million, $1.7 million and $2.6 million, respectively. The total estimated fair value of options vested during 2017, 2016 and 2015 was $22 thousand, $0.4 million and $1.6 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 summarizes the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s ESPP plan during the periods presented: Fiscal Years Ended September 30, 2017 2016 2015 Risk-free interest rate 0.75 % 0.38 % 0.12 % Dividend yield — — — Volatility 29 % 34 % 33 % Expected term (in years) 0.50 0.50 0.50 Restricted Stock Units and Performance-based Restricted Stock Units During the years ending September 30, 2017, 2016 and 2015, the Compensation Committee of the Board approved grants of performance-based restricted stock units to the Company’s certain senior officers, including the Chief Executive Officer and the Chief Financial Officer. Under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 250% of the grant based on the performance of the Company’s TSR relative to the TSR of the Index over a three-year period. No shares will vest and be released in the first year. In any of the two remaining years, no shares will vest and be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the grant will vest and be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the grant will vest and be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest over a three-year period with 50% vesting on each of the second and the third annual anniversary of the vesting commencing date. In addition, these grants have a “catch-up” provision such that if the Company’s TSR relative to the Index for the three-year period exceeds that of the two-year period, additional shares for the two-year period will vest and be released based on the three-year achievement level. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment. As of September 30, 2017, 1.3 million shares were reserved for any additional release resulting from over-achievement relating to performance-based restricted stock units. The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. The grant date fair values of these awards were determined using the following assumptions: Fiscal Year Ended September 30, 2017 2016 2015 Risk-free interest rate 1.32%-1.45% 0.86%-1.15% 1.10 % Dividend yield — — — Volatility 38%-40% 45% 32 % The following table summarizes the Company’s restricted stock unit activity (including performance based restricted stock awards) under all equity award plans: Weighted Restricted Stock Average Units Outstanding Grant Date (in thousands) Fair Value 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 Granted 2,064 10.61 Released (720 ) 10.50 Forfeited (529 ) 11.24 Balance at September 30, 2016 3,117 $ 11.81 Granted 1,817 11.67 Released (813 ) 10.58 Forfeited (1,204 ) 10.65 Balance at September 30, 2017 2,917 $ 12.55 The total fair value of restricted stock and restricted stock awards vested for the years ended September 30, 2017, 2016 and 2015 was $ 8.6 The following table summarizes certain information of the unvested awards as of September 30, 2017: Restricted Units (1) ESPP Total compensation cost for unvested (in millions) $ 20.6 $ 0.3 Weighted-average period to recognize (in years) 2.3 0.4 (1): Includes restricted stock units and performance-based restricted stock awards. Stock-based Compensation Stock-based compensation recorded in the statements of operations is as follows: Fiscal Years Ended September 30, 2017 2016 2015 (in thousands) Cost of revenues: License and implementation $ 1,015 $ 918 $ 699 SaaS and maintenance 1,007 1,032 799 Total stock-based compensation in cost of revenues 2,022 1,950 1,498 Operating expenses: Research and development 1,744 1,393 1,353 Sales and marketing 2,651 3,307 3,202 General and administrative 4,143 6,418 4,302 Total stock-based compensation in operating expenses 8,538 11,118 8,857 Stock-based compensation in operating loss 10,560 13,068 10,355 Stock-based compensation capitalized as software development cost — — 109 Total stock-based compensation $ 10,560 $ 13,068 $ 10,464 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of loss before income taxes are as follows: Fiscal Years Ended September 30, 2017 2016 2015 (in thousands) Domestic $ (43,753 ) $ (34,527 ) $ (20,292 ) Foreign 921 1,751 1,181 Loss before taxes $ (42,832 ) $ (32,776 ) $ (19,111 ) The Company has made no provision for U.S. income taxes on approximately $4.4 million of cumulative undistributed earnings of certain foreign subsidiaries at September 30, 2017 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 (benefit) for income taxes are as follows: Fiscal Years Ended September 30, 2017 2016 2015 (in thousands) Current State $ 37 $ 23 $ 13 Foreign 647 140 482 684 163 495 Deferred Federal (3,436 ) 150 27 State (533 ) 22 6 (3,969 ) 172 33 Total provision (benefit) for income taxes $ (3,285 ) $ 335 $ 528 Reconciliation of the statutory federal income tax to the Company’s effective tax: Fiscal Years Ended September 30, 2017 2016 2015 (in thousands) Tax at statutory federal rate $ (14,563 ) $ (11,147 ) $ (6,498 ) State tax, net of federal benefit 37 23 13 Permanent differences 96 571 729 Foreign tax rate differential 334 (453 ) 81 Change in valuation allowance 15,279 12,008 6,648 Research and development tax credits (656 ) (834 ) (450 ) Foreign tax credits — — (7 ) Change in deferred tax liabilities (3,390 ) 173 33 Other (422 ) (6 ) (21 ) Total provision (benefit) for income taxes $ (3,285 ) $ 335 $ 528 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 2017 remain open to examination due to the carryover of unused net operating losses or tax credits. Deferred tax assets and liabilities consisted of the following: As of September 30, 2017 2016 (in thousands) Deferred tax assets: Depreciation and amortization $ 842 $ 436 Accruals and other 5,541 2,616 Deferred revenue 3,288 4,295 NOL carry-forward 68,190 35,885 Stock compensation 4,840 4,389 Research and development tax credits 9,792 8,492 Total deferred tax assets 92,493 56,113 Valuation allowance (78,003 ) (56,113 ) Net deferred tax assets $ 14,490 $ — Deferred tax liabilities: Intangibles (14,983 ) (295 ) Net deferred tax liabilities $ (493 ) $ (295 ) 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, 2017, 2016, and 2015 due to the uncertainty of realizing future tax benefits from its net operating loss carry-forwards and other deferred tax assets. In the second quarter of fiscal 2017, as a result of acquiring Revitas, we recorded an income tax benefit of $4.2 million due to a partial release of valuation allowance. The net change in the total valuation allowance for the year ended September 30, 2017 was an increase of approximately $21.9 million. At September 30, 2017, the Company has federal and California net operating loss carry-forwards of approximately $191.3 million and $45.2 million, respectively. The federal and California net operating losses will begin expiring in 2021 and 2018, respectively. At September 30, 2017, the Company also had other state net operating loss carry-forwards of approximately $5.2 million which will begin expiring in 2018. At September 30, 2017, the Company had federal and state research credit carry forwards of approximately $5.3 million and $6.5 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, 2017, 2016 and 2015, the Company had stock option benefits of approximately $4.7 million, $3.9 million and $3.7 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, 2017, 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, 2017, there was a liability of $0.2 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. An IRC Section 382 analysis has been performed as of September 30, 2017 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, 2017 2016 2015 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,310 $ 3,119 $ 2,513 Gross decrease based on tax positions during the prior period (584 ) (147 ) — Gross increase based on tax positions during the prior period — — $ 58 Gross increase based on tax positions during the current period 417 338 548 Unrecognized tax benefits at the end of the period $ 3,143 $ 3,310 $ 3,119 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11 . Net Loss Per Share The Company’s basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, which excludes unvested restricted stock awards. The diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, unvested restricted stock awards and unvested restricted stock units are considered to be common stock equivalents. Fiscal Years Ended September 30, 2017 2016 2015 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (39,547 ) $ (33,111 ) $ (19,639 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 28,649 27,379 26,015 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (1.38 ) $ (1.21 ) $ (0.76 ) 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, 2017 2016 2015 (in thousands) Stock options 414 650 1,228 Performance-based restricted stock units and restricted stock units 1,074 736 724 ESPP — — 20 |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Geographic Information | 12. 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 11%, 10% and 6% of total revenues for the fiscal years ended September 30, 2017, 2016 and 2015, 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, 2017 2016 (in thousands) United States $ 3,867 $ 4,817 India 744 1,324 Total property and equipment, net $ 4,611 $ 6,141 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | 13. Subsequent Event On October 05, 2017, The Company entered into a lease agreement. The thirty-seven month lease began on October 30, 2017, provides the Company with approximately 35,000 square feet of office space in San Mateo, California. Base annual rent is initially set at approximately $140,000 per month. Total base rent payable over the lease period is $4.9 million. The Company may renew this lease for two additional periods of five years each. |
Schedule II-Valuation and quali
Schedule II-Valuation and qualifying accounts | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017, 2016, and 2015, 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, 2017 $ — 85 — $ 85 For the Year Ended September 30, 2016 $ — — — $ — For the Year Ended September 30, 2015 $ — — — $ — Valuation allowance for deferred tax assets For the Year Ended September 30, 2017 $ 56,113 21,890 — $ 78,003 For the Year Ended September 30, 2016 $ 42,128 13,985 — $ 56,113 For the Year Ended September 30, 2015 $ 34,685 7,443 — $ 42,128 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis for Presentation | Basis for Presentation The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. The Company has evaluated subsequent events through the date that the financial statements were issued. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include revenue recognition, legal contingencies, income taxes, stock-based compensation and valuation of goodwill and intangibles. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates. |
Revenue Recognition | Revenue Recognition Revenues are comprised of 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 managed support services, training and customer-reimbursed expenses. The Company has determined that its subscriptions have standalone value without the implementation services and allocates revenue to each deliverable in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence (VSOE), if available, third-party evidence (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE are available. As the Company has been unable to establish VSOE or TPE for the elements of its SaaS arrangements, the Company established the BESP for each element by considering company-specific factors such as existing pricing and discounting. The total arrangement fee for a multiple element arrangement is allocated based on the relative selling price method, taking into consideration contingent revenue restraints. The consideration allocated to subscription fees is recognized as revenue ratably over the contract period. The consideration allocated to implementation services is recognized as revenue as services are performed. Prior to fiscal year 2016, for SaaS arrangements related to Revenue Cloud for Life Science and High Tech companies the Company treated the entire arrangement consideration, including subscription fees and related implementation services fees, as a single unit of accounting and recognized the revenues ratably beginning the day the customer was provided access to the subscription service through the end of contractual period. During fiscal year 2016, the Company concluded that the SaaS deliverable has standalone value to the customer without the implementation services, primarily due to the number of third-party consulting companies that have the know-how to be able to independently perform the implementation services. Revenue related to up-front fees are deferred and recognized ratably over the estimated period that the customer benefits from the related service. Maintenance and support revenue include post-contract customer support and the right to unspecified software updates and enhancements on a when and if available basis. Managed support services revenue includes supporting, managing and administering our software solutions, and providing additional end user support. Maintenance and support revenue and managed support services revenue are recognized ratably over the period in which the services are provided. The revenue from training and customer-reimbursed expenses is recognized as the Company delivers these services. Arrangements that include term-based licenses for current products with the right to use unspecified future versions of the software and maintenance and support during the coverage period, are also accounted for as subscriptions, with revenue recognized ratably over the coverage period. 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 or reasonable estimable. However, determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenues the Company reports. For multiple software element arrangements, the Company allocates the sales price among each of the deliverables using the residual method, under which revenue is allocated to undelivered elements based on their VSOE of fair value. VSOE is the price charged when an element is sold separately or a price set by management with the relevant authority. The Company has established VSOE for maintenance and support and training. The Company does not offer any contractual rights of return or concessions. The Company’s implementation projects generally have a term ranging from a few months to twelve months and may be terminated by the customer at any time. Should a loss be anticipated on a contract, the full amount of the loss is recorded when the loss is determinable. The Company updates its estimates regarding the completion of implementations based on changes to the expected contract value and revisions to its estimates of time required to complete each implementation project. Amounts that may be payable to customers to settle customer disputes are recorded as a reduction in revenues or reclassified from deferred revenue to customer payables in accrued liabilities and other long-term liabilities. |
Costs of Revenues | Costs of Revenues Cost of 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, third party contractors, facility expense, amortization of intangibles 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, 2017 and 2016, the deferred cost of implementation services totaled $0.6 million and $2.1 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 stockholders’ equity. Realized gains and losses from foreign currency transactions are included in other expenses, net in the consolidated statements of operations and have not been material for all periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months at date of purchase to be cash equivalents. The Company’s cash equivalents are comprised of money market funds, and are maintained with financial institutions with high credit ratings. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers The Company maintains cash and cash equivalents with major financial institutions. The Company’s cash and cash equivalents consist of bank deposits held with banks, money market funds that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of its investments and of the relative credit standing of these financial institutions. Credit risk is the risk of loss from amounts owed by financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and accounts receivable. In the normal course of business, the Company is exposed to credit risk from its customers. To reduce credit risk, the Company performs ongoing credit evaluations of its customers. The following customers comprised 10% or more of the Company’s accounts receivable at September 30, 2017 and 2016 and of the Company’s total revenues for the fiscal years ended September 30, 2017, 2016 and 2015, respectively: As of September 30, Accounts Receivable 2017 2016 Company A N/A 12% Fiscal Years Ended September 30, Revenue 2017 2016 2015 Company B 11% N/A 11% |
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 $ 4.6 million a |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is calculated using on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of lease term or estimated useful lives of the assets. The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are charged to expense as incurred. Upon retirement or sale of property and equipment, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in statement of operations. |
Long-lived Assets | Long-lived Assets The Company continually monitors events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. 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 events or changes in circumstances indicate that the carrying value may not be recoverable. We conducted our annual impairment test of goodwill as of September 30, 2017 and 2016. 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, Intangible assets, consisting of developed technology, backlog, non-competition agreements customer relationships and trade name, are stated at fair value less accumulated amortization. All intangible assets have been determined to have finite lives and are amortized on a straight-line basis over their estimated remaining economic lives, ranging from three to ten years. Amortization expense related to developed technology is included in cost of SaaS and maintenance revenue while amortization expense related to backlog, non-competition agreements, trade name and customer relationships is included in sales and marketing expense. No goodwill or intangible assets impairment has been identified in any of the years presented. |
Research and Development and Capitalization of Software Development Costs | Research and Development and Capitalization of Software Development Costs The Company generally expenses costs related to research and development, including those activities related to software solutions to be sold, leased or otherwise marketed. As such development work is essentially completed concurrently with the establishment of technological feasibility, and accordingly, the Company has not capitalized any such development costs. The Company capitalizes certain software development costs incurred in connection with its cloud-based software platform for internal use. The Company capitalizes software development costs when application development begins, it is probable that the project will be completed, and the software will be used as intended. When development becomes substantially complete and ready for its intended use, such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all post implementation stage activities are expensed as incurred. The Company capitalized software development costs of $0.4 million, |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities. The Company regularly reviews its financial instruments portfolio to identify and evaluate such instruments that have indications of possible impairment. When there is no readily available market data, fair value estimates are made by the Company, which involves some level of management estimation and judgment and may not necessarily represent the amounts that could be realized in a current or future sale of these assets. Based on borrowing rates currently available to the Company for financing obligations with similar terms and considering the Company’s credit risks, the carrying value of the financing obligation approximates fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value instruments defines a three-level valuation hierarchy for disclosures as follows: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Input other than quoted prices included in Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs for similar assets and liabilities that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own models and involves some level of management estimation and judgment. The Company’s Level 1 assets consist of cash equivalent. These instruments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. |
Sales Commissions | Sales Commissions Sales commissions are recognized as an expense upon booking the contract. Substantially all of the compensation due to the sales force is earned at the time of the contract signing, with limited ability to recover any commissions paid if a contract is terminated. |
Advertising and Promotion Costs | Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. The Company incurred $ 0.3 million |
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 $0.7 million, $0.6 million and $0.4 million for the years ended September 30 , 2017, 2016 and 2015. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for all share-based payment awards granted to our employees and directors including stock options and restricted stock units (“RSUs”) is measured and recognized based on the fair value of the awards on the grant date. The fair value is recognized as expense, net of estimated forfeitures on a ratable basis, over the requisite service period, which is generally the vesting period of the respective award. The Company uses a Monte Carlo simulation model to determine the fair value of its performance-based restricted stock units (“PB-RSUs”) on the grant date. The fair value of these grants with a market condition is recognized using the graded-vesting attribution method over the requisite service period. As the PB-RSUs are only granted to executives and leadership team, the Company has determined no forfeiture rate would be applied to the PB-RSUs. The Company uses the Black-Scholes-Merton valuation model to estimate the fair value of stock option awards and employee stock purchase plan (“ESPP”). The Black-Scholes-Merton valuation model requires the use of subjective assumptions to determine the fair value of stock option awards, including the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates and expected dividends. The Company periodically estimates the portion of awards which will ultimately vest based on its historical forfeiture experience. These estimates are adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the FASB ASC No. 740— Accounting for Income Taxes 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, 2017 and 2016, 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 item s of $92.5 million |
Segment | Segment The Company has one operating segment with one business activity, developing and monetizing revenue management solutions. The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer, who manages operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information as presented on a consolidated basis. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive (loss) income. Other comprehensive loss includes foreign currency translation adjustments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): providing clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The amendments of this ASU are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this standard, but does not believe this will have material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new accounting standard update simplifies the measurement of goodwill by eliminating the Step two impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The new guidance requires a comparison of the Company’s fair value of with carrying amount and the Company is required to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value. Additionally, we should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combination (Topic 805): clarifying the definition of a business. The amendments in this guidance change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash (Topic 230), clarifying the classification and presentation of restricted cash in the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents are included in the cash and cash equivalent balance in the statement of cash flows. Further, reconciliation between the balance sheet and statement of cash flows is required when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. Therefore, transfers between these balances should no longer be presented as a cash flow activity. The guidance becomes effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In August 2016, the Financial Accounting Standard Board (“FASB”) issued ASU 2016-15, Statement of Cash Flow (Topic 230), amended the existing accounting standards for the statement of cash flows. The amendments provide guidance on how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The guidance becomes effective for the Company at the beginning of its first quarter of fiscal 2019. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, but does not believe this will have material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, guidance related to stock-based compensation, which includes the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance becomes effective for the Company Company is In February 2016, the FASB issued ASU 2016-02, guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of the Company’s Company is In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The standard became effectives to the Company in the fourth quarter of fiscal year 2017. The adoption of the standard had no material impact on the Company’s consolidated financial statements. In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard, Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, as amended, which will supersede nearly all existing revenue recognition guidance. Under ASU 2014-09, an entity is required to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services. ASU 2014-09 defines a five-step process in order to achieve this core principle, which may require the use of judgment and estimates, and also requires expanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and estimates used. The FASB has issued several amendments to the new standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The amendments include ASU 2016-08, Revenue from Contracts with Customers (Topic 606)—Principal versus Agent Considerations, which was issued in March 2016, and clarifies the implementation guidance for principal versus agent considerations in ASU 2014-09, and ASU 2016-10, Revenue from Contracts with Customers (Topic 606)—Identifying Performance Obligations and Licensing, which was issued in April 2016, and amends the guidance in ASU 2014-09 related to identifying performance obligations and accounting for licenses of intellectual property. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The Company does not plan to early adopt, and accordingly, the Company will adopt the new standard effective October 1, 2018. The Company currently anticipate adopting the standard using the modified retrospective method. The Company |
Summary of Significant Accoun23
Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016 and of the Company’s total revenues for the fiscal years ended September 30, 2017, 2016 and 2015, respectively: As of September 30, Accounts Receivable 2017 2016 Company A N/A 12% Fiscal Years Ended September 30, Revenue 2017 2016 2015 Company B 11% N/A 11% |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Computer software and equipment 2-5 years Furniture and fixtures 2-5 years Leasehold improvements Shorter of the lease term or estimated useful life Software development costs 3 years |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocation of Purchase Price | As of the acquisition date, the preliminary allocation of the purchase price is as follows: Estimated Fair Value (in thousands) Cash and cash equivalents $ 5,067 Accounts receivable 6,184 Prepaid expenses 1,067 Other current assets 47 Property, plant and equipment 1,506 Intangible assets 39,100 Goodwill 32,344 Other assets 25 Total assets acquired 85,340 Accounts payable (1,352 ) Accrued employee compensation (3,983 ) Accrued liabilities (1,410 ) Deferred revenue liability (12,856 ) Other liabilities (4,256 ) Total liabilities assumed (23,857 ) Net acquired assets $ 61,483 |
Schedule of Acquired Identifiable Assets | The following table presents certain information on the acquired identifiable assets: Intangible assets Fair value (in thousands) Estimated useful lives (years) Weighted-average estimated useful lives (years) Developed technology $ 6,770 6 6 Customer relationship $ 32,180 10 10 Trade name $ 150 1 1 |
Schedule of Unaudited Pro Forma Consolidated Combined Results of Operations | The following unaudited pro forma combined consolidated financial information has been prepared by the Company using the acquisition method of accounting to give effect to the Revitas acquisition as if it had occurred on October 1, 2015. The following table sets forth the unaudited pro forma consolidated combined results of operations: Fiscal Year Ended September 30, 2017 2016 (in thousands, except per share data) Revenue $ 140,227 $ 149,632 Net loss (45,346 ) (38,656 ) Net loss per shares-basic and diluted $ (1.58 ) $ (1.41 ) |
Consolidated Balance Sheet Co25
Consolidated Balance Sheet Components (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment | Property and Equipment As of September 30, 2017 2016 (in thousands) Computer software and equipment $ 10,274 $ 9,319 Furniture and fixtures 1,284 1,117 Leasehold improvements 1,466 1,240 Software development costs 9,416 8,254 Total property and equipment 22,440 19,930 Less: Accumulated depreciation and amortization (17,829 ) (14,582 ) Property and equipment, net 4,611 5,348 Add: Capital projects in progress — 793 Total property and equipment, net $ 4,611 $ 6,141 |
Schedule of Intangible Assets | Intangible Assets As of September 30, 2017 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5-6 $ 12,083 $ (4,545 ) $ 7,538 Backlog 5 280 (215 ) 65 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 36,599 (4,084 ) 32,515 Trade name 1 260 (222 ) 38 Total $ 49,322 $ (9,166 ) $ 40,156 As of September 30, 2016 Estimated Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Intangible Assets: Developed technology 5 $ 5,313 $ (2,857 ) $ 2,456 Backlog 5 280 (149 ) 131 Non-competition agreement 3 100 (100 ) — Customer relationships 3-10 4,419 (1,331 ) 3,088 Trade name 1 110 (101 ) 9 Total $ 10,222 $ (4,538 ) $ 5,684 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense for the intangible assets as of September 30, 2017 is as follows: Fiscal September 30, (in thousands) 2018 5,559 2019 5,466 2020 4,751 2021 4,687 2022 and thereafter 19,693 Total future amortization $ 40,156 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents goodwill activity for the years ended September 30, 2017 and 2016 (in thousands): Balance as at September 30, 2015 $ 1,509 Add: Goodwill from acquisition of business 5,430 Balance as at September 30, 2016 $ 6,939 Add: Goodwill from acquisition of business 32,344 Balance as at September 30, 2017 $ 39,283 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Term Loan and Promissory Notes | As of September 30, 2017, the term loan and promissory notes consisted of the following: Amount (in thousands) Principal $ 60,000 Unamortized debt discount and issuance costs (2,795 ) Net carrying amount $ 57,205 |
Schedule of Future Principal Payments for Term Loan and Promissory Notes | The future scheduled principal payments for the term loan and promissory notes as of September 30, 2017 were as follows (in thousands): Fiscal Year: 2018 $ 5,000 2019 937 2020 6,250 2021 1,250 2022 46,563 Total $ 60,000 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016, 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, 2017: Assets: Cash equivalents $ 47,754 $ — $ — $ 47,754 Total $ 47,754 $ — $ — $ 47,754 As of September 30, 2016: Assets: Cash equivalents $ 64,658 $ — $ — $ 64,658 Total $ 64,658 $ — $ — $ 64,658 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Operating Leases | 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) $ 4,300 $ 1,600 $ 1,700 $ 1,000 $ — (1) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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 Aggregate Number of Average Remaining Intrinsic Shares Exercised Contract Value (in thousands) Price Term (in years) (in thousands) 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 Exercised (233 ) 3.96 — Forfeited (12 ) 13.70 — Expired (68 ) 12.72 — Balance at September 30, 2016 806 $ 6.31 3.56 $ 4,103 Exercised (329 ) 4.06 — Forfeited — — — Expired (24 ) 11.69 — Balance at September 30, 2017 453 $ 7.71 3.53 $ 3,281 Options exercisable as of September 30, 2017 453 $ 7.71 3.53 $ 3,281 Options vested and expected to vest as of September 30, 2017 453 $ 7.71 3.53 $ 3,281 |
Weighted-Average Assumptions Used to Estimate Fair Value of ESPP | The following table summarizes the weighted-average assumptions used to estimate the fair value of rights to acquire stock granted under the Company’s ESPP plan during the periods presented: Fiscal Years Ended September 30, 2017 2016 2015 Risk-free interest rate 0.75 % 0.38 % 0.12 % Dividend yield — — — Volatility 29 % 34 % 33 % Expected term (in years) 0.50 0.50 0.50 |
Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Awards) Under All Equity Award Plans | The following table summarizes the Company’s restricted stock unit activity (including performance based restricted stock awards) under all equity award plans: Weighted Restricted Stock Average Units Outstanding Grant Date (in thousands) Fair Value 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 Granted 2,064 10.61 Released (720 ) 10.50 Forfeited (529 ) 11.24 Balance at September 30, 2016 3,117 $ 11.81 Granted 1,817 11.67 Released (813 ) 10.58 Forfeited (1,204 ) 10.65 Balance at September 30, 2017 2,917 $ 12.55 |
Summary of Unvested Awards | The following table summarizes certain information of the unvested awards as of September 30, 2017: Restricted Units (1) ESPP Total compensation cost for unvested (in millions) $ 20.6 $ 0.3 Weighted-average period to recognize (in years) 2.3 0.4 |
Stock-based Compensation | Stock-based compensation recorded in the statements of operations is as follows: Fiscal Years Ended September 30, 2017 2016 2015 (in thousands) Cost of revenues: License and implementation $ 1,015 $ 918 $ 699 SaaS and maintenance 1,007 1,032 799 Total stock-based compensation in cost of revenues 2,022 1,950 1,498 Operating expenses: Research and development 1,744 1,393 1,353 Sales and marketing 2,651 3,307 3,202 General and administrative 4,143 6,418 4,302 Total stock-based compensation in operating expenses 8,538 11,118 8,857 Stock-based compensation in operating loss 10,560 13,068 10,355 Stock-based compensation capitalized as software development cost — — 109 Total stock-based compensation $ 10,560 $ 13,068 $ 10,464 |
Performance-based Restricted Stock Units [Member] | |
Summary of Grant Date Fair Value Assumptions | The grant date fair values of these awards were determined using the following assumptions: Fiscal Year Ended September 30, 2017 2016 2015 Risk-free interest rate 1.32%-1.45% 0.86%-1.15% 1.10 % Dividend yield — — — Volatility 38%-40% 45% 32 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2015 (in thousands) Domestic $ (43,753 ) $ (34,527 ) $ (20,292 ) Foreign 921 1,751 1,181 Loss before taxes $ (42,832 ) $ (32,776 ) $ (19,111 ) |
Components of Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes are as follows: Fiscal Years Ended September 30, 2017 2016 2015 (in thousands) Current State $ 37 $ 23 $ 13 Foreign 647 140 482 684 163 495 Deferred Federal (3,436 ) 150 27 State (533 ) 22 6 (3,969 ) 172 33 Total provision (benefit) for income taxes $ (3,285 ) $ 335 $ 528 |
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, 2017 2016 2015 (in thousands) Tax at statutory federal rate $ (14,563 ) $ (11,147 ) $ (6,498 ) State tax, net of federal benefit 37 23 13 Permanent differences 96 571 729 Foreign tax rate differential 334 (453 ) 81 Change in valuation allowance 15,279 12,008 6,648 Research and development tax credits (656 ) (834 ) (450 ) Foreign tax credits — — (7 ) Change in deferred tax liabilities (3,390 ) 173 33 Other (422 ) (6 ) (21 ) Total provision (benefit) for income taxes $ (3,285 ) $ 335 $ 528 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following: As of September 30, 2017 2016 (in thousands) Deferred tax assets: Depreciation and amortization $ 842 $ 436 Accruals and other 5,541 2,616 Deferred revenue 3,288 4,295 NOL carry-forward 68,190 35,885 Stock compensation 4,840 4,389 Research and development tax credits 9,792 8,492 Total deferred tax assets 92,493 56,113 Valuation allowance (78,003 ) (56,113 ) Net deferred tax assets $ 14,490 $ — Deferred tax liabilities: Intangibles (14,983 ) (295 ) Net deferred tax liabilities $ (493 ) $ (295 ) |
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, 2017 2016 2015 (in thousands) Unrecognized tax benefits at the beginning of the period $ 3,310 $ 3,119 $ 2,513 Gross decrease based on tax positions during the prior period (584 ) (147 ) — Gross increase based on tax positions during the prior period — — $ 58 Gross increase based on tax positions during the current period 417 338 548 Unrecognized tax benefits at the end of the period $ 3,143 $ 3,310 $ 3,119 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, 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, 2017 2016 2015 (in thousands, except per share data) Numerator: Basic and diluted: Net loss attributable to common stockholders $ (39,547 ) $ (33,111 ) $ (19,639 ) Denominator: Basic and diluted: Weighted Average Shares Used in Computing Net Loss per Share Attributable to Common Stockholders 28,649 27,379 26,015 Net Loss per Share Attributable to Common Stockholders: Basic and diluted $ (1.38 ) $ (1.21 ) $ (0.76 ) |
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, 2017 2016 2015 (in thousands) Stock options 414 650 1,228 Performance-based restricted stock units and restricted stock units 1,074 736 724 ESPP — — 20 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 (in thousands) United States $ 3,867 $ 4,817 India 744 1,324 Total property and equipment, net $ 4,611 $ 6,141 |
The Company - Additional Inform
The Company - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Date of incorporation | Dec. 14, 1999 |
State of incorporation | Delaware |
Summary of Significant Accoun35
Summary of Significant Accounting Policies and Estimates - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Significant Accounting Policies and Estimates [Line Items] | |||
Project implementation term range | few months to twelve months | ||
Deferred cost of implementation services | $ 600,000 | $ 2,100,000 | |
Unbilled receivables recorded in balance sheets | 4,600,000 | 2,800,000 | |
Impairment charge related to purchased intangible assets | 0 | ||
Software development costs capitalized | 400,000 | 1,100,000 | $ 2,500,000 |
Advertising and promoting costs | 300,000 | 300,000 | 300,000 |
Employer contribution to employee benefit plan | 700,000 | 600,000 | $ 400,000 |
Deferred tax assets fully offset by valuation allowance | $ 92,493,000 | $ 56,113,000 | |
Number of operating segment | Segment | 1 | ||
Software development costs [Member] | |||
Significant Accounting Policies and Estimates [Line Items] | |||
Estimated useful life | 3 years | ||
Minimum [Member] | |||
Significant Accounting Policies and Estimates [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum [Member] | |||
Significant Accounting Policies and Estimates [Line Items] | |||
Estimated useful life | 10 years | ||
Customer Concentration Risk [Member] | Revenue [Member] | |||
Significant Accounting Policies and Estimates [Line Items] | |||
Accounts receivable and revenues percentage | 10.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Significant Accounting Policies and Estimates [Line Items] | |||
Accounts receivable and revenues percentage | 10.00% |
Summary of Significant Accoun36
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, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | 0.00% | 12.00% | |
Company B [Member] | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of Credit Risk | 11.00% | 0.00% | 11.00% |
Summary of Significant Accoun37
Summary of Significant Accounting Policies and Estimates - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2017 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of the lease term or estimated useful life |
Software development costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Computer software and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Minimum [Member] | Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 2 years |
Maximum [Member] | Computer software and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Maximum [Member] | Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | Jan. 05, 2017USD ($)PromissoryNote | Oct. 30, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Business acquisition, transactions closed date | Jan. 5, 2017 | |||
Fair value allocated to goodwill | $ 32,344,000 | $ 5,430,000 | ||
Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 3 years | |||
Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 10 years | |||
Sapphire Stripe Holdings, Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of equity interests acquired | 100.00% | |||
Revitas Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, transactions closed date | Jan. 5, 2017 | |||
Cash payment to acquire business | $ 52,800,000 | |||
Number of promissory notes issued | PromissoryNote | 2 | |||
Acquisition and transactional costs associated with acquisition | $ 2,200,000 | |||
Purchase price | $ 61,500,000 | |||
Fair value of promissory note | 8,600,000 | |||
Fair value allocated to intangible assets | 39,100,000 | |||
Fair value allocated to goodwill | 32,300,000 | |||
Pro forma revenue | 20,700,000 | |||
Pro forma net losses | $ (6,300,000) | |||
Revitas Inc. [Member] | Promissory Note One [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | $ 5,000,000 | |||
Maturity period | 18 months | |||
Revitas Inc. [Member] | Promissory Note Two [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | $ 5,000,000 | |||
Maturity period | 36 months | |||
Revitas Inc. [Member] | Term Loan [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | $ 50,000,000 | |||
Maturity period | 5 years | |||
Channelinsight Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 12,600,000 | |||
Fair value allocated to goodwill | 5,400,000 | |||
Fair value allocated to intangible assets | $ 6,800,000 | |||
Channelinsight Inc. [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 1 year | |||
Channelinsight Inc. [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 10 years |
Business Combinations - Schedul
Business Combinations - Schedule of Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jan. 05, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 39,283 | $ 6,939 | $ 1,509 | |
Revitas Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 5,067 | |||
Accounts receivable | 6,184 | |||
Prepaid expenses | 1,067 | |||
Other current assets | 47 | |||
Property, plant and equipment | 1,506 | |||
Intangible assets | 39,100 | |||
Goodwill | 32,344 | |||
Other assets | 25 | |||
Total assets acquired | 85,340 | |||
Accounts payable | (1,352) | |||
Accrued employee compensation | (3,983) | |||
Accrued liabilities | (1,410) | |||
Deferred revenue liability | (12,856) | |||
Other liabilities | (4,256) | |||
Total liabilities assumed | (23,857) | |||
Net acquired assets | $ 61,483 |
Business Combinations - Sched40
Business Combinations - Schedule of Acquired Identifiable Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jan. 05, 2017 | |
Developed technology [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Estimated useful lives | 5 years | ||
Trade Name [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, Estimated useful lives | 1 year | 1 year | |
Revitas Inc. [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 39,100 | ||
Revitas Inc. [Member] | Developed technology [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 6,770 | ||
Intangible assets, Estimated useful lives | 6 years | ||
Intangible assets, Weighted-average estimated useful lives | 6 years | ||
Revitas Inc. [Member] | Customer Relationship [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 32,180 | ||
Intangible assets, Estimated useful lives | 10 years | ||
Intangible assets, Weighted-average estimated useful lives | 10 years | ||
Revitas Inc. [Member] | Trade Name [Member] | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 150 | ||
Intangible assets, Estimated useful lives | 1 year | ||
Intangible assets, Weighted-average estimated useful lives | 1 year |
Business Combinations - Sched41
Business Combinations - Schedule of Unaudited Pro Forma Consolidated Combined Results of Operations (Details) - Revitas Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||
Revenue | $ 140,227 | $ 149,632 |
Net loss | $ (45,346) | $ (38,656) |
Net loss per shares-basic and diluted | $ (1.58) | $ (1.41) |
Consolidated Balance Sheet Co42
Consolidated Balance Sheet Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 22,440 | $ 19,930 |
Less: Accumulated depreciation and amortization | (17,829) | (14,582) |
Property and equipment excluding construction in progress, net | 4,611 | 5,348 |
Property and equipment, net | 4,611 | 6,141 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 10,274 | 9,319 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,284 | 1,117 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,466 | 1,240 |
Software development costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 9,416 | 8,254 |
Capital projects in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 0 | $ 793 |
Consolidated Balance Sheet Co43
Consolidated Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation of property and equipment | $ 3.5 | $ 4.5 | $ 3.8 |
Amortization expense of intangible assets | $ 4.6 | $ 1.4 | $ 0.3 |
Consolidated Balance Sheet Co44
Consolidated Balance Sheet Components - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 49,322 | $ 10,222 |
Intangible assets, Accumulated Amortization | (9,166) | (4,538) |
Intangible assets, Net Carrying Amount | $ 40,156 | 5,684 |
Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 3 years | |
Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 10 years | |
Developed technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 12,083 | 5,313 |
Intangible assets, Accumulated Amortization | (4,545) | (2,857) |
Intangible assets, Net Carrying Amount | $ 7,538 | $ 2,456 |
Intangible assets, Estimated useful lives | 5 years | |
Developed technology [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 5 years | |
Developed technology [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 6 years | |
Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 280 | $ 280 |
Intangible assets, Accumulated Amortization | (215) | (149) |
Intangible assets, Net Carrying Amount | $ 65 | $ 131 |
Intangible assets, Estimated useful lives | 5 years | 5 years |
Non-competition agreement [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 100 | $ 100 |
Intangible assets, Accumulated Amortization | (100) | (100) |
Intangible assets, Net Carrying Amount | $ 0 | $ 0 |
Intangible assets, Estimated useful lives | 3 years | 3 years |
Customer Relationship [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 36,599 | $ 4,419 |
Intangible assets, Accumulated Amortization | (4,084) | (1,331) |
Intangible assets, Net Carrying Amount | $ 32,515 | $ 3,088 |
Customer Relationship [Member] | Minimum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 3 years | 3 years |
Customer Relationship [Member] | Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated useful lives | 10 years | 10 years |
Trade Name [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 260 | $ 110 |
Intangible assets, Accumulated Amortization | (222) | (101) |
Intangible assets, Net Carrying Amount | $ 38 | $ 9 |
Intangible assets, Estimated useful lives | 1 year | 1 year |
Consolidated Balance Sheet Co45
Consolidated Balance Sheet Components - Schedule of Estimated Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 5,559 | |
2,019 | 5,466 | |
2,020 | 4,751 | |
2,021 | 4,687 | |
2022 and thereafter | 19,693 | |
Total future amortization | $ 40,156 | $ 5,684 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 6,939 | $ 1,509 |
Add: Goodwill from acquisition of business | 32,344 | 5,430 |
Ending balance | $ 39,283 | $ 6,939 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jan. 05, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Goodwill [Line Items] | ||||
Goodwill | $ 39,283 | $ 6,939 | $ 1,509 | |
Revitas Inc. [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 32,344 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Sep. 30, 2017 | Jan. 05, 2017USD ($)PromissoryNote | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||
Business acquisition, transactions closed date | Jan. 5, 2017 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Financial covenant cash and cash equivalents to be maintained | $ 20,000,000 | ||
Net of accounts payable in excess of certain amount 90 days overdue | 500,000 | ||
Debt Issuance Costs | $ 800,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 10.50% | ||
Promissory Notes [Member] | |||
Debt Instrument [Line Items] | |||
Number of promissory notes issued | PromissoryNote | 2 | ||
Promissory notes, interest rate | 3.00% | ||
Preliminary fair value of promissory note | $ 8,600,000 | ||
Discounted future cash flow interest rate | 9.96% | ||
Promissory Note One [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jul. 5, 2018 | ||
Debt Instrument, Interest Rate, Effective Percentage | 9.74% | ||
Promissory Note Two [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jan. 5, 2020 | ||
Debt Instrument, Interest Rate, Effective Percentage | 9.89% | ||
Revitas Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Business acquisition, transactions closed date | Jan. 5, 2017 | ||
Term loan prepayment description | The Company may voluntarily prepay the terms loans, subject to a 3% premium during the first 24 months and 1% premium after 24 months and prior to 36 months. | ||
Number of promissory notes issued | PromissoryNote | 2 | ||
Preliminary fair value of promissory note | $ 8,600,000 | ||
Revitas Inc. [Member] | During the first 24 months [Member] | |||
Debt Instrument [Line Items] | |||
Percentage premium on prepayment of term loans | 3.00% | ||
Revitas Inc. [Member] | After the first 24 months and prior to 36 months [Member] | |||
Debt Instrument [Line Items] | |||
Percentage premium on prepayment of term loans | 1.00% | ||
Revitas Inc. [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 50,000,000 | ||
Debt instrument, maturity date | Jan. 5, 2022 | ||
Percentage of repayment on principal amount of term loan | 0.625% | ||
Revitas Inc. [Member] | Term Loan [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 9.25% | ||
Revitas Inc. [Member] | Term Loan [Member] | LIBOR Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 8.25% | 8.25% | |
Revitas Inc. [Member] | Promissory Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 10,000,000 | ||
Revitas Inc. [Member] | Promissory Note One [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 5,000,000 | ||
Revitas Inc. [Member] | Promissory Note Two [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 5,000,000 |
Debt - Schedule of Term Loan an
Debt - Schedule of Term Loan and Promissory Notes (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Principal | $ 60,000 |
Unamortized debt discount and issuance costs | (2,795) |
Net carrying amount | $ 57,205 |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments for Term Loan and Promissory Notes (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Fiscal Year: | |
2,018 | $ 5,000 |
2,019 | 937 |
2,020 | 6,250 |
2,021 | 1,250 |
2,022 | 46,563 |
Total | $ 60,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | $ 47,754 | $ 64,658 |
Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 47,754 | 64,658 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 47,754 | 64,658 |
Level 1 [Member] | Cash equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets on recurring basis | 47,754 | 64,658 |
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] | Cash equivalents [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] | Cash equivalents [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, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash at bank | $ 9,800,000 | $ 1,500,000 |
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, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease obligations due, Total | $ 4,300 |
Operating lease obligations due, Less than 1 Year | 1,600 |
Operating lease obligations due, 1 to 3 Years | 1,700 |
Operating lease obligations, 3 to 5 Years | 1,000 |
Operating lease obligations, More than 5 Years | $ 0 |
Commitments and Contingencies54
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental expense under noncancelable operating leases | $ 3.2 | $ 2.7 | $ 2.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 09, 2015 | Jun. 15, 2010 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock options, Granted | 0 | 0 | 0 | ||
Number of shares available for future stock awards | 4,400,000 | ||||
Intrinsic value of options exercised | $ 2,500 | $ 1,700 | $ 2,600 | ||
Estimated fair value of options vested | $ 22 | 400 | 1,600 | ||
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 | ||||
2013 Equity Incentive Plan [Member] | Performance-based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Approved stock reserved for future issuance | 1,300,000 | ||||
Fair value of restricted stock awards vested | $ 8,600 | $ 7,600 | $ 10,700 | ||
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% | ||||
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% | ||||
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 | Under the terms of these grants, the actual number of shares that will vest and be released will range from 0% to 250% of the grant based on the performance of the Company’s TSR relative to the TSR of the Index over a three-year period. No shares will vest and be released in the first year. In any of the two remaining years, no shares will vest and be released if the TSR of the Company’s common stock is below the 30th percentile relative to the Index; 100% of the grant will vest and be released if the Company’s TSR is at the 50th percentile relative to the Index; and 250% of the grant will vest and be released if the Company’s TSR is over the 90th percentile relative to the Index. These grants vest over a three-year period with 50% vesting on each of the second and the third annual anniversary of the vesting commencing date. In addition, these grants have a “catch-up” provision such that if the Company’s TSR relative to the Index for the three-year period exceeds that of the two-year period, additional shares for the two-year period will vest and be released based on the three-year achievement level. These grants have a ten-year term, subject to their earlier termination upon certain events including the awardee’s termination of employment | ||||
2013 Equity Incentive Plan [Member] | Second Anniversary [Member] | Performance-based Restricted Stock Units [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] | Third Anniversary [Member] | Performance-based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares vest under terms of grants | 50.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity and Related Information Under All Stock Option Plans (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of Shares, Beginning balance | 806 | 1,119 | 1,881 | |
Number of Shares, Exercised | (329) | (233) | (354) | |
Number of Shares, Forfeited | (12) | (177) | ||
Number of Shares, Expired | (24) | (68) | (231) | |
Number of Shares, Ending balance | 453 | 806 | 1,119 | 1,881 |
Number of Shares, Options exercisable | 453 | |||
Number of Shares, Options vested and expected to vest | 453 | |||
Weighted Average Exercised Price, Beginning balance | $ 6.31 | $ 6.29 | $ 7.07 | |
Weighted Average Exercised Price, Exercised | 4.06 | 3.96 | 3.71 | |
Weighted Average Exercised Price, Forfeited | 13.70 | 12.01 | ||
Weighted Average Exercise Price, Expired | 11.69 | 12.72 | 12.18 | |
Weighted Average Exercise Price, Ending balance | 7.71 | $ 6.31 | $ 6.29 | $ 7.07 |
Weighted Average Exercised Price, Options exercisable | 7.71 | |||
Weighted Average Exercised Price, Options vested and expected to vest | $ 7.71 | |||
Weighted Average Remaining Contract Term (in Years). Shares outstanding | 3 years 6 months 11 days | 3 years 6 months 22 days | 4 years 8 months 5 days | 5 years 11 months 23 days |
Weighted Average Remaining Contract Term (in Years), Options exercisable | 3 years 6 months 11 days | |||
Weighted Average Remaining Contract Term (in Years), Options vested and expected to vest | 3 years 6 months 11 days | |||
Aggregate Intrinsic Value | $ 3,281 | $ 4,103 | $ 4,904 | $ 7,055 |
Aggregate Intrinsic Value, Exercisable | 3,281 | |||
Aggregate Intrinsic Value, Vested and expected to vest | $ 3,281 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value of ESPP (Detail) - ESPP [Member] | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.75% | 0.38% | 0.12% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 29.00% | 34.00% | 33.00% |
Expected term (in years) | 6 months | 6 months | 6 months |
Stock-Based Compensation - Su58
Stock-Based Compensation - Summary of Grant Date Fair Value Assumptions (Detail) - Performance-based Restricted Stock Units [Member] | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.10% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 45.00% | 32.00% | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.32% | 0.86% | |
Volatility | 38.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.45% | 1.15% | |
Volatility | 40.00% |
Stock-Based Compensation - Su59
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Including Performance Based Restricted Stock Awards) Under All Equity Award Plans (Detail) - Restricted Stock Units [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Restricted Stock, Beginning balance | 3,117 | 2,302 | 2,265 |
Number of Restricted Stock, Granted | 1,817 | 2,064 | 1,505 |
Number of Restricted Stock, Released | (813) | (720) | (963) |
Number of Restricted Stock, Forfeited | (1,204) | (529) | (505) |
Number of Restricted Stock, Ending balance | 2,917 | 3,117 | 2,302 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 11.81 | $ 12.32 | $ 12.46 |
Weighted Average Grant Date Fair Value, Granted | 11.67 | 10.61 | 11.17 |
Weighted Average Grant Date Fair Value, Released | 10.58 | 10.50 | 11.20 |
Weighted Average Grant Date Fair Value, Forfeited | 10.65 | 11.24 | 11.66 |
Weighted Average Grant Date Fair Value, Ending balance | $ 12.55 | $ 11.81 | $ 12.32 |
Stock-Based Compensation - Su60
Stock-Based Compensation - Summary of Unvested Awards (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total compensation cost for unvested | $ 20.6 |
Weighted-average period to recognize (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 recognize (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, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 10,560 | $ 13,068 | $ 10,355 |
Stock-based compensation capitalized as software development cost | 109 | ||
Total stock-based compensation | 10,560 | 13,068 | 10,464 |
Cost of revenues, License and implementation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,015 | 918 | 699 |
Cost of Revenues, SaaS and Maintenance [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,007 | 1,032 | 799 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,022 | 1,950 | 1,498 |
Operating expenses, Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 1,744 | 1,393 | 1,353 |
Operating expenses, Sales and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,651 | 3,307 | 3,202 |
Operating expenses, General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 4,143 | 6,418 | 4,302 |
Operating expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 8,538 | $ 11,118 | $ 8,857 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (43,753) | $ (34,527) | $ (20,292) |
Foreign | 921 | 1,751 | 1,181 |
Loss before income taxes | $ (42,832) | $ (32,776) | $ (19,111) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Line Items] | |||||
Cumulative undistributed earnings from foreign subsidiaries | $ 4,400 | ||||
Net change in total valuation allowance | 21,900 | ||||
Income tax benefit | 3,285 | $ (335) | $ (528) | ||
Research credit carry forwards | 9,792 | 8,492 | |||
Stock option benefits | 4,700 | 3,900 | 3,700 | ||
Unrecognized tax benefits | 3,143 | $ 3,310 | $ 3,119 | $ 2,513 | |
Uncertain tax positions | $ 200 | ||||
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 | $ 191,300 | ||||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,021 | ||||
Research credit carry forwards | $ 5,300 | ||||
Research credit carry forwards, beginning expiring period | 2,020 | ||||
California [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss (NOL) carry forwards | $ 45,200 | ||||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,018 | ||||
Research credit carry forwards, beginning expiring period | indefinitely | ||||
California [Member] | Research [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
State research credit carry forwards | $ 6,500 | ||||
Other State [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss (NOL) carry forwards | $ 5,200 | ||||
Net operating loss (NOL) carry forwards, beginning expiring period | 2,018 | ||||
Revitas Inc. [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax benefit | $ 4,200 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current | |||
State | $ 37 | $ 23 | $ 13 |
Foreign | 647 | 140 | 482 |
Total current | 684 | 163 | 495 |
Deferred | |||
Federal | (3,436) | 150 | 27 |
State | (533) | 22 | 6 |
Total deferred | (3,969) | 172 | 33 |
Total provision (benefit) for income taxes | $ (3,285) | $ 335 | $ 528 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | $ (14,563) | $ (11,147) | $ (6,498) |
State tax, net of federal benefit | 37 | 23 | 13 |
Permanent differences | 96 | 571 | 729 |
Foreign tax rate differential | 334 | (453) | 81 |
Change in valuation allowance | 15,279 | 12,008 | 6,648 |
Research and development tax credits | (656) | (834) | (450) |
Foreign tax credits | (7) | ||
Change in deferred tax liabilities | (3,390) | 173 | 33 |
Other | (422) | (6) | (21) |
Total provision (benefit) for income taxes | $ (3,285) | $ 335 | $ 528 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Depreciation and amortization | $ 842 | $ 436 |
Accruals and other | 5,541 | 2,616 |
Deferred revenue | 3,288 | 4,295 |
NOL carry-forward | 68,190 | 35,885 |
Stock compensation | 4,840 | 4,389 |
Research and development tax credits | 9,792 | 8,492 |
Total deferred tax assets | 92,493 | 56,113 |
Valuation allowance | (78,003) | (56,113) |
Net deferred tax assets | 14,490 | 0 |
Deferred tax liabilities: | ||
Intangibles | (14,983) | (295) |
Net deferred tax liabilities | $ (493) | $ (295) |
Income Taxes - Reconciliation67
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at the beginning of the period | $ 3,310 | $ 3,119 | $ 2,513 |
Gross decrease based on tax positions during the prior period | (584) | (147) | |
Gross increase based on tax positions during the prior period | 58 | ||
Gross increase based on tax positions during the current period | 417 | 338 | 548 |
Unrecognized tax benefits at the end of the period | $ 3,143 | $ 3,310 | $ 3,119 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net loss per share attributable to common stockholders: | |||
Net loss | $ (39,547) | $ (33,111) | $ (19,639) |
Weighted average number of shares used in computing net loss per share attributable to common stockholders: | |||
Basic and diluted | 28,649 | 27,379 | 26,015 |
Basic and diluted: | |||
Net Loss per Share Attributable to Common Stockholders: Basic and diluted | $ (1.38) | $ (1.21) | $ (0.76) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Weighted Average Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 414 | 650 | 1,228 |
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 | 1,074 | 736 | 724 |
ESSP [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 0 | 0 | 20 |
Geographic Information - Additi
Geographic Information - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2017SegmentActivityJurisdiction | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of business activity | Activity | 1 | ||
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
The number of jurisdiction outside US which represents over 10% of total revenue | Jurisdiction | 0 | ||
Other [Member] | Geographic concentration risk [Member] | Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers outside United States | 11.00% | 10.00% | 6.00% |
Geographic Information - Compan
Geographic Information - Company's Property and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 4,611 | $ 6,141 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 3,867 | 4,817 |
India [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 744 | $ 1,324 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Oct. 05, 2017USD ($)ft²Option | Sep. 30, 2017USD ($) |
Subsequent Event [Line Items] | ||
Total base rent payable | $ 4,300 | |
Subsequent Event [Member] | San Mateo Lease Agreement [Member] | California [Member] | Office Space [Member] | ||
Subsequent Event [Line Items] | ||
Term of lease agreement | 37 months | |
Area of leased office space | ft² | 35,000 | |
Base annual rent, per month | $ 140,000 | |
Total base rent payable | $ 4,900,000 | |
Number of renewal options available | Option | 2 | |
Lease agreement term of renewal option available | 5 years |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowance for deferred tax assets, Balance at Beginning of Period | $ 56,113 | ||
Valuation allowance for deferred tax assets, Balance at End of Period | 78,003 | $ 56,113 | |
Allowance for doubtful receivables [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowance for doubtful receivables, Balance at Beginning of Period | 0 | 0 | $ 0 |
Charged to Costs and Expenses | 85 | 0 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Allowance for doubtful receivables, Balance at End of Period | 85 | 0 | 0 |
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 | 56,113 | 42,128 | 34,685 |
Charged to Costs and Expenses | 21,890 | 13,985 | 7,443 |
Charged to Other Accounts | 0 | 0 | 0 |
Valuation allowance for deferred tax assets, Balance at End of Period | $ 78,003 | $ 56,113 | $ 42,128 |