Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2021 | Oct. 28, 2021 | Feb. 26, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DCT | ||
Entity Registrant Name | Duck Creek Technologies, Inc. | ||
Entity Central Index Key | 0001160951 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 132,046,578 | ||
Entity Current Reporting Status | No | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 3.6 | ||
Entity Shell Company | false | ||
Entity File Number | 001-39449 | ||
Entity Incorporation State Country Code | DE | ||
Entity Tax Identification Number | 84-3723837 | ||
Entity Address Address Line1 | 22 Boston Wharf Road | ||
Entity Address, Address Line Two | Floor 10 | ||
Entity Address City Or Town | Boston | ||
Entity Address State Or Province | MA | ||
Entity Address Postal Zip Code | 02210 | ||
City Area Code | 888 | ||
Local Phone Number | 724-3509 | ||
Entity Interactive Data Current | Yes | ||
Security12b Title | Common stock, $0.01 par value per share | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 185,657 | $ 389,878 |
Short-term investments | 191,981 | |
Accounts receivable, net | 34,629 | 29,149 |
Unbilled revenue | 24,423 | 18,121 |
Prepaid expenses and other current assets | 14,381 | 12,186 |
Total current assets | 451,071 | 449,334 |
Property and equipment, net | 14,305 | 18,113 |
Operating lease assets | 17,798 | 18,171 |
Goodwill | 272,455 | 272,455 |
Intangible assets, net | 65,359 | 81,687 |
Deferred tax assets | 2,331 | 1,550 |
Unbilled revenue, net of current portion | 1,401 | 3,487 |
Other assets | 19,413 | 16,303 |
Total assets | 844,133 | 861,100 |
Current liabilities: | ||
Accounts payable | 2,070 | 1,802 |
Accrued liabilities | 46,437 | 58,202 |
Contingent earnout liability | 5,462 | 3,701 |
Lease liability | 4,110 | 3,611 |
Deferred revenue | 29,577 | 30,397 |
Total current liabilities | 87,656 | 97,713 |
Contingent earnout liability, net of current portion | 3,391 | |
Lease liability, net of current portion | 21,273 | 21,739 |
Deferred revenue, net of current portion | 379 | |
Other long-term liabilities | 4,466 | 4,121 |
Total liabilities | 113,395 | 127,343 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Common stock, 134,625,379 shares issued and 132,000,317 shares outstanding at August 31, 2021, 133,269,301 shares issued and 130,713,745 shares outstanding at August 31, 2020, 300,000,000 shares authorized at August 31, 2021 and August 31, 2020, par value $0.01 per share | 1,346 | 1,333 |
Preferred stock, 0 shares outstanding, 50,000,000 shares authorized at August 31, 2021 and August 31, 2020, par value $0.01 per share | ||
Treasury stock, common shares at cost; 2,625,062 shares at August 31, 2021 and 2,555,556 shares at August 31, 2020 | (67,764) | (64,688) |
Accumulated deficit | (41,265) | (24,334) |
Accumulated other comprehensive income | 64 | |
Additional paid in capital | 838,357 | 821,446 |
Total stockholders' equity | 730,738 | 733,757 |
Total liabilities and stockholders' equity | $ 844,133 | $ 861,100 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 31, 2021 | Aug. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares issued | 134,625,379 | 133,269,301 |
Common stock, shares outstanding | 132,000,317 | 130,713,745 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, common shares | 2,625,062 | 2,555,556 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | ||
Revenue: | ||||
Total revenue | $ 260,350 | $ 211,672 | $ 171,273 | |
Cost of revenue: | ||||
Total cost of revenue | 110,086 | 97,175 | 72,178 | |
Gross margin | 150,264 | 114,497 | 99,095 | |
Operating expenses: | ||||
Research and development | 48,549 | 44,052 | 35,936 | |
Sales and marketing | 54,124 | 50,305 | 40,189 | |
General and administrative | 62,664 | 48,662 | 36,493 | |
Change in fair value of contingent consideration | 293 | 133 | 628 | |
Total operating expenses | 165,630 | 143,152 | 113,246 | |
Loss from operations | (15,366) | (28,655) | (14,151) | |
Other income (expense), net | 431 | 641 | (565) | |
Interest expense, net | (100) | (356) | (1,030) | |
Loss before income taxes | (15,035) | (28,370) | (15,746) | |
Provision for income taxes | 1,896 | 1,562 | 1,150 | |
Net loss | $ (16,931) | $ (29,932) | (16,896) | |
Net loss per share information | ||||
Net loss per share of common stock, basic and diluted | [1] | $ (0.13) | $ (0.19) | |
Weighted average shares of common stock, basic and diluted | [1] | 131,114,791 | 130,702,511 | |
Subscription | ||||
Revenue: | ||||
Total revenue | $ 125,267 | $ 83,999 | 55,909 | |
Cost of revenue: | ||||
Total cost of revenue | 47,266 | 34,902 | 24,199 | |
License | ||||
Revenue: | ||||
Total revenue | 12,171 | 9,914 | 13,776 | |
Cost of revenue: | ||||
Total cost of revenue | 1,888 | 1,853 | 1,970 | |
Maintenance and Support | ||||
Revenue: | ||||
Total revenue | 24,285 | 23,680 | 23,896 | |
Cost of revenue: | ||||
Total cost of revenue | 3,410 | 3,338 | 2,781 | |
Professional Services | ||||
Revenue: | ||||
Total revenue | 98,627 | 94,079 | 77,692 | |
Cost of revenue: | ||||
Total cost of revenue | $ 57,522 | $ 57,082 | $ 43,228 | |
[1] | 1) Net loss per share information for fiscal 2020 represents the net loss per share of common stock outstanding for the period from August 14, 2020 through August 31, 2020, the period following the Reorganization Transactions and Duck Creek Technologies, Inc.'s initial public offering described in Note 1—Nature of Business. See Note 9—Net Loss Per Share for additional details. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Statement Of Other Comprehensive Income [Abstract] | |||
Net loss | $ (16,931) | $ (29,932) | $ (16,896) |
Other comprehensive income (loss): | |||
Unrealized gains on available-for-sale securities | 64 | ||
Total other comprehensive gain | 64 | ||
Comprehensive loss | $ (16,867) | $ (29,932) | $ (16,896) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity/Redeemable Partners' Interest and Partners' Capital - USD ($) $ in Thousands | Total | Class C Units | Class E Units | Class A Units | Class B Units | Redeemable Partners' Interest and Partners' Capital | Redeemable Partners' Interest and Partners' CapitalClass C Units | Redeemable Partners' Interest and Partners' CapitalClass E Units | Redeemable Partners' Interest and Partners' CapitalClass A Units | Redeemable Partners' Interest and Partners' CapitalClass B Units | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Non-controlling Interests |
Beginning balance at Aug. 31, 2018 | $ 401,867 | |||||||||||||||
Beginning balance at Aug. 31, 2018 | $ 401,867 | |||||||||||||||
Units issued in connection with business combination | $ 2,025 | |||||||||||||||
Units issued in connection with business combination | $ 2,025 | |||||||||||||||
Equity-based compensation | 2,070 | 2,070 | ||||||||||||||
Net loss | (16,896) | (16,896) | ||||||||||||||
Ending balance at Aug. 31, 2019 | 389,066 | |||||||||||||||
Ending balance at Aug. 31, 2019 | 389,066 | |||||||||||||||
Net loss | (29,932) | |||||||||||||||
Units issued, net of issuance costs | $ 438,648 | $ 438,648 | ||||||||||||||
Units redeemed prior to the Reorganization Transactions | $ (238,800) | $ (159,200) | $ (238,800) | $ (159,200) | ||||||||||||
Share-based compensation expense prior to Reorganzation Transactions | 1,766 | 1,766 | ||||||||||||||
Net loss prior to Reorganization Transactions | (5,598) | (5,598) | ||||||||||||||
Exchange of LP interests for common stock andinitial effect of Reorganization Transactionson non-controlling interest | $ (425,882) | $ 1,160 | $ 425,556 | $ (834) | ||||||||||||
Exchange of LP interests for common stock and initial effect of Reorganization Transactions on non-controlling interest, shares | 115,996,833 | |||||||||||||||
Issuance of common stock for IPO net of underwriting discounts and offering costs | 429,240 | $ 173 | 429,067 | |||||||||||||
Issuance of common stock for IPO net of underwriting discounts and offering costs, shares | 17,250,000 | |||||||||||||||
Repurchase of common stock | (64,688) | $ (64,688) | ||||||||||||||
Repurchase of common stock, shares | 2,555,556 | |||||||||||||||
Purchase of non-controlling interests in Operating Partnership from Accenture and RBW | (43,125) | (43,959) | $ 834 | |||||||||||||
Issuance of common stock upon RSA's vesting, shares | 22,468 | |||||||||||||||
Share based compensation expense subsequent to Reorganzation Transactions | 10,782 | 10,782 | ||||||||||||||
Net loss subsequent to Reorganization Transactions | (24,334) | $ (24,334) | ||||||||||||||
Ending balance at Aug. 31, 2020 | 733,757 | $ 1,333 | $ (64,688) | 821,446 | (24,334) | |||||||||||
Ending balance, shares at Aug. 31, 2020 | 133,269,301 | 2,555,556 | ||||||||||||||
Net loss | (16,931) | (16,931) | ||||||||||||||
Proceeds from follow-on offering, net of issuance costs | 3,453 | $ 1 | 3,452 | |||||||||||||
Proceeds from follow-on offering, net of issuance costs, shares | 90,000 | |||||||||||||||
Repurchase of common stock | (3,076) | $ (3,076) | ||||||||||||||
Repurchase of common stock, shares | 69,506 | |||||||||||||||
Share-based compensation expense | 9,406 | 9,406 | ||||||||||||||
Issuance of common stock upon exercise of stock options | 4,065 | $ 1 | 4,064 | |||||||||||||
Issuance of common stock upon exercise of stock options, shares | 150,559 | |||||||||||||||
Vesting of restricted stock awards | $ 11 | (11) | ||||||||||||||
Vesting of restricted stock awards, shares | 1,115,519 | |||||||||||||||
Unrealized gain on available-for-sale securities | 64 | $ 64 | ||||||||||||||
Ending balance at Aug. 31, 2021 | $ 730,738 | $ 1,346 | $ (67,764) | $ 838,357 | $ 64 | $ (41,265) | ||||||||||
Ending balance, shares at Aug. 31, 2021 | 134,625,379 | 2,625,062 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Operating activities: | |||
Net loss | $ (16,931) | $ (29,932) | $ (16,896) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Depreciation of property and equipment | 3,136 | 3,143 | 2,398 |
Amortization of capitalized software | 2,040 | 703 | |
Amortization of intangible assets | 16,328 | 17,070 | 17,594 |
Impairment of right of use asset | 1,883 | 1,660 | |
Impairment of leasehold improvements | 702 | 1,132 | |
Amortization of deferred financing fees | 114 | 134 | 136 |
Share-based compensation expense | 12,877 | 21,108 | 2,070 |
Loss on change in fair value of contingent earnout liability | 293 | 133 | 628 |
Payment on contingent earnout liability in excess of acquisition date fair value | (2,350) | ||
Changes to allowance for credit losses | 1,105 | 97 | 182 |
Deferred taxes | (781) | (690) | 188 |
Other non-cash items | 12 | ||
Changes in operating assets and liabilities | |||
Accounts receivable | (6,585) | (3,796) | (6,285) |
Unbilled revenue | (4,216) | 1,730 | 4,481 |
Prepaid expenses and other current assets | (2,310) | (6,300) | 198 |
Other assets | (3,110) | (5,764) | (3,788) |
Accounts payable | 1,561 | (181) | (783) |
Accrued liabilities | (3,230) | 16,393 | 9,150 |
Deferred revenue | (1,199) | 6,614 | 5,972 |
Deferred rent | 1,661 | ||
Operating leases | (1,477) | 132 | |
Cash settlement of vested phantom stock | (9,243) | ||
Other long-term liabilities | 345 | 2,339 | 277 |
Net cash (used in) provided by operating activities | (8,686) | 25,725 | 14,833 |
Investing activities: | |||
Purchase of short-term investments | (287,912) | ||
Maturities of short-term investments | 95,982 | ||
Capitalized internal-use software | (926) | (2,893) | (2,956) |
Purchase of property and equipment | (1,355) | (3,854) | (5,314) |
Net cash used in investing activities | (194,211) | (6,747) | (19,911) |
Financing activities: | |||
Proceeds from IPO | 433,657 | ||
Proceeds from follow-on offering, net of issuance costs | 3,452 | ||
Payment of deferred IPO costs | (3,650) | ||
Payment of deferred offering costs | (772) | ||
Purchase of non-controlling interest | (43,125) | ||
Purchase of treasury stock | (3,076) | (64,688) | |
Proceeds from stock option exercises | 4,065 | ||
Payments of contingent earnout liability | (1,923) | (3,555) | |
Proceeds from revolving credit facility | 5,000 | 12,000 | |
Payments on revolving credit facility | (9,000) | (8,000) | |
Payment of deferred financing costs | (228) | (30) | |
Net cash (used in) provided by financing activities | (1,324) | 358,901 | 3,198 |
Net (decrease) increase in cash and cash equivalents | (204,221) | 377,879 | (1,880) |
Cash and cash equivalents – beginning of period | 389,878 | 11,999 | 13,879 |
Cash and cash equivalents – end of period | 185,657 | 389,878 | 11,999 |
Supplemental disclosure of other cash flow information: | |||
Cash paid for income taxes | 3,105 | 2,006 | 976 |
Cash paid for interest | 269 | 527 | |
Purchases of property and equipment recorded in accounts payable and accrued liabilities | 210 | 227 | 936 |
Fair value of contingent consideration | 5,529 | 7,452 | 11,325 |
Deferred IPO costs in accounts payable and accrued liabilities | 3,650 | 263 | |
Outline Systems LLC | |||
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Loss on change in fair value of contingent earnout liability | 293 | 450 | 840 |
Investing activities: | |||
Acquisition | (9,814) | ||
CedeRight Products | |||
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Loss on change in fair value of contingent earnout liability | (317) | ||
Investing activities: | |||
Acquisition | $ (1,827) | ||
Class E Units | |||
Financing activities: | |||
Payment of deferred offering costs | $ (192) | ||
Proceeds from issuance of Class E Units, net of issuance costs | 438,840 | ||
Supplemental disclosure of other cash flow information: | |||
Deferred offering costs in accrued expenses | 192 | ||
Class A and B Units | |||
Financing activities: | |||
Payment on redemption of Class A and Class B Units | $ (398,000) |
Nature of Business
Nature of Business | 12 Months Ended |
Aug. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business | (1) Duck Creek Technologies, Inc (the Company) is a provider of Software-as-a-Service (SaaS) core systems to the property and casualty (P&C) insurance industry, through Duck Creek OnDemand Duck Creek Policy, Duck Creek Billing, Duck Creek Claims, Duck Creek Rating, Duck Creek Insights, Duck Creek Distribution Management, Duck Creek Reinsurance Management, Duck Creek Anywhere Managed Integrations, and Duck Creek Industry Content The Company was formed as a Delaware corporation on November 15, 2019, with no operating assets or operations for the purpose of facilitating an initial public offering (the IPO) and related Reorganization Transactions (as described below) in order to carry on the business of Disco Topco Holdings (Cayman), L.P. and its subsidiaries (the Operating Partnership). Unless otherwise indicated or the context otherwise requires, references to “Duck Creek Technologies” and the “Company” refer to (a) prior to the consummation of the Reorganization Transactions and the IPO, to The Company’s headquarters are located in Boston, Massachusetts. The Company also has sales offices in the United Kingdom, Spain and Australia, as well as a service center located in India. Initial Public Offering On August 14, 2020, the Company completed its IPO. It sold 17,250,000 shares of common stock (including shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares) at a public offering price of $27.00 per share for net proceeds of $429.2 million, after deducting underwriting discounts, commissions, and estimated offering expenses. The Company used (i) $43.1 million of the net proceeds received from the IPO to redeem all of the outstanding LP Units of the Operating Partnership retained by Accenture plc (Accenture) and RBW Investment GmbH & Co. (RBW), after giving effect to the contributions that were part of the Reorganization Transactions, at a redemption price per LP Unit equal to the IPO price less underwriting discounts and commissions, (ii) $64.7 million of the net proceeds received from the IPO to repurchase from Apax Partners L.P. (Apax) a portion of the shares in the Company received by Apax in the Reorg Merger (as described below) at a repurchase price per share equal to the IPO price less underwriting discounts and commissions, and (iii) $6.7 million of net proceeds received from the IPO to cash settle outstanding equity awards of certain international employees. Reorganization Transactions The Company and the Operating Partnership completed a series of transactions concurrently with or immediately following the completion of the IPO (Reorganization Transactions) which are described below: • The Company adopted an amended and restated certification of incorporation that authorized, immediately prior to the IPO, one class of common stock and one class of preferred stock. • Apax contributed the entity that held all of Apax’s equity interests in the Operating Partnership and all of Apax’s interest in the general partner of the Operating Partnership (General Partner) to a newly-formed Cayman company (the Reorg Subsidiary) in exchange for shares in the Reorg Subsidiary. • Accenture contributed to the Company, directly or indirectly, ( i ) a portion of its equity interests in the Operating Partnership and (ii) all of its interest in the General Partner in exchange for newly-issued common stock in the Company. • Certain members of management contributed to the Company, directly or indirectly, all of their respective equity interests in the Operating Partnership in exchange for (i) newly-issued common stock in the Company or (ii) restricted common stock in the Company and options to acquire common stock in the Company with an exercise price equal to the fair market value on the date of grant. • All other investors in the Operating Partnership (excluding Apax, Accenture, and RBW) contributed to the Company, directly or indirectly, all of their equity interests in the Operating Partnership in exchange for newly-issued common stock in the Company. • The Company contributed a portion of the net proceeds received from the IPO to the Operating Partnership and the Operating Partnership redeemed the outstanding LP Units of the Operating Partnership owned by Accenture and RBW that were not contributed to the Company. • Immediately following the completion of the IPO, (i) Apax exchanged all of its shares in the Reorg Subsidiary for newly-issued common stock in the Company and (ii) the Reorg Subsidiary merged with and into the Company (and subsequently ceased existence) (collectively, the Reorg Merger). • Following these transactions and the subsequent redemption of the outstanding LP Units owned by Accenture and RBW that were not contributed to the Company, the Company indirectly owns all of the LP Units of the Operating Partnership and all interest in the General Partner. The Reorganization Transactions are considered transactions between entities under common control. As a result, Disco Topco Holdings (Cayman), L.P., is considered the predecessor of Duck Creek Technologies, Inc. for accounting purposes. This has resulted in the presentation of Disco Topco Holdings (Cayman), L.P.’s historical consolidated financial statements as the historical consolidated financial statements of Duck Creek Technologies, Inc. Duck Creek Technologies, Inc., has accounted for Disco Topco Holdings (Cayman), L.P.’s assets and liabilities at their historical carrying amounts. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) The accompanying consolidated financial statements reflect the application of significant accounting policies as described below. (a) The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) set by the Financial Accounting Standards Board (FASB). References to GAAP issued by the FASB in these notes are to the FASB Accounting Standards Codification (FASB ASC). The Company has no items of other comprehensive income or loss; therefore, the Company’s net loss is identical to its comprehensive loss. (b) Lease Accounting In February 2016, FASB issued ASU 2016-02, Leases , which requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the leased asset. The standard For comparability purposes, the Company will continue to comply with the previous disclosure requirements in accordance with the existing lease guidance for all periods presented in the year of adoption. The Company elected the package of practical expedients as permitted under the transition guidance, which allowed us: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and (3) not to reassess the treatment of initial direct costs for existing leases. In addition, the Company elected an accounting policy to not recognize leases with an initial term of one year or less on the balance sheet. Upon the adoption of this standard on September 1, 2019, the Company recognized a total lease liability of $26.7 million, representing the present value of the minimum rental payments remaining as of the adoption date, a reduction of the deferred rent liability of $5.7 million and operating lease assets in the amount of $21.0 million. The Company did not have any finance leases (formerly referred to as capital leases prior to the adoption of ASC 842), therefore there was no change in accounting treatment required). Other Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (c) The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (d) The Company’s fiscal year ends on August 31 of each calendar year. (e) The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are used when accounting for certain items such as valuation of goodwill and intangible assets, the useful lives of intangible assets, share-based compensation, standalone selling prices in transactions with customers that include multiple performance obligations, assets acquired and liabilities assumed in business combinations, contingent earnout liabilities, and capitalized software development costs. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from management’s estimates if past experience or other assumptions are not substantially accurate. (f) The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions in local currencies are translated to the U.S. dollar and recorded as gains and losses in other income (expense) in the accompanying consolidated statements of operations. Transaction gains and losses for all periods presented were not material. (g) The Company derives its revenues primarily from the following four sources, which represent performance obligations of the Company: • Sales of hosted software services (SaaS) under subscription arrangements • Sales of software licenses • Sales of maintenance and support services • Sales of professional services In accordance with ASC 606, the Company recognizes revenue from the identified performance obligations, as determined in its contracts with customers, as control is transferred to the customer in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps to achieve the core principle of ASC 606: (1) Identify the contract with the customer The Company considers the terms and conditions of the contracts and its customary business practices in identifying contracts under ASC 606. The Company has determined that a contract with a customer exists when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. (2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. (3) Determine the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that no significant future reversal of cumulative revenue under the contract will occur. The sale of the Company’s software and SaaS products may include variable consideration relating to changes in a customer’s direct written premium (DWP) managed by these solutions. The Company estimates variable consideration based on historical DWP usage to the extent that a significant revenue reversal is not probable to occur. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from customers or to provide customers with financing. (4) Allocate the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (SSP). (5) Recognize revenue when (or as) the Company satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to a customer. Revenue is recognized when control of the products or services are transferred to the Company’s customers, in an amount that reflects the consideration that it expects to receive in exchange for those products or services. The Company records revenue net of applicable sales taxes collected. Sales taxes collected from customers are recorded as part of accounts payable in the accompanying consolidated balance sheets and are remitted to state and local taxing jurisdictions based on the filing requirements of each jurisdiction. Disaggregation of Revenue The Company provides disaggregation of revenue based on product and service type on the consolidated statements of operations as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table summarizes revenue by geographic area based on the location of the contracting entity, regardless of where the products or services are used, for the years ended August 31, 2021, 2020 and 2019: Year Ended August 31, 2021 2020 2019 United States $ 238,912 $ 200,373 $ 162,585 All other 21,438 11,299 8,688 Total revenue $ 260,350 $ 211,672 $ 171,273 Subscription Arrangements The transaction price allocated to subscription arrangements is recognized as revenue over time throughout the term of the contract as the services are provided on a continuous basis, beginning after the SaaS environment is provisioned and made available to customers. The Company’s subscription arrangements generally have terms of three to seven years and are generally payable on a monthly basis over the term of the subscription arrangement, which is typically noncancelable. Revenue is recognized ratably using contractual DWP as the measure of progress. Software Licenses The Company has concluded that its software licenses provide the customer with the right to functional intellectual property (IP), and are distinct performance obligations as the customer can benefit from the software licenses on their own. The transaction price allocated to perpetual and term license arrangements is recognized as revenue at a point in time when control is transferred to the customer, which generally occurs at the time of delivery. Perpetual software license fees are generally payable when the contract is executed. Term license fees are generally payable in advance on an annual basis over the term of the license arrangement, which is typically noncancelable. Perpetual and term license arrangements are delivered before related services are provided, including maintenance and support services, and are functional without such services. Maintenance and Support Services Maintenance and support contracts associated with the Company’s software licenses entitle customers to receive technical support and software updates, on a when and if available basis, during the term of the maintenance and support contract. Technical support and software updates are considered distinct from the related software licenses but accounted for as a single performance obligation as they each constitute a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. The transaction price allocated to software maintenance and support is recognized as revenue over time on a straight-line basis over the term of the maintenance and support contract. Maintenance and support fees are generally payable in advance on a monthly, quarterly, or annual basis over the term of the maintenance and support contract. Maintenance and support contracts are priced as a percentage of the associated software license. Professional Services The Company’s professional services revenue is primarily comprised of implementation services provided to customers. The majority of professional services engagements are billed to customers on a time and materials basis. The Company has determined that professional services provided to customers represent distinct performance obligations. These services may be provided on a stand-alone basis or bundled with other performance obligations, including subscription arrangements, software licenses, and maintenance and support services. The transaction price allocated to these performance obligations is recognized as revenue over time as the services are performed. In those limited instances where professional services arrangements are sold on a fixed price basis, revenue is recognized over time using an input measure of time incurred to date relative to total estimated time to be incurred at project completion. Professional services arrangements are generally invoiced monthly in arrears. The Company records reimbursable out-of-pocket expenses associated with professional services contracts in both revenue and cost of revenue. Contracts with Multiple Performance Obligations The Company’s contracts with customers can include multiple performance obligations, where the transaction price is allocated to each identified performance obligation based on their relative SSP. The Company’s contracts may also grant the customer an option to acquire additional products or services, which the Company assesses to determine whether or not any discount on the products or services is in excess of levels normally available to similar customers and, if so, accounts for the optional product or service as an additional performance obligation. The Company typically determines SSP based on the observable prices of the promised goods or services charged when sold separately to customers, which are determined using contractually stated prices. In instances where SSP is not directly observable, the Company determines SSP based on its overall pricing objectives, taking into consideration market conditions and other factors, including customer size and geography. The various products and services comprising contracts with multiple performance obligations are typically capable of being distinct and accounted for as separate performance obligations. The Company allocates revenue to each of the performance obligations included in a contract with multiple performance obligations at the inception of the contract. The SSP for perpetual or term license arrangements sold in contracts with multiple performance obligations is determined using the residual approach. The Company utilizes the residual approach because the selling prices for software licenses is highly variable and a SSP is not discernible from past transactions or other observable evidence. Periodically, the Company evaluates whether the use of the residual approach remains appropriate for performance obligations associated with software licenses when sold as part of contracts with multiple performance obligations. As a result, if the SSP analysis illustrates that the selling prices for software licenses are no longer highly variable, the Company will utilize the relative allocation method for such arrangements. Contract Modifications The Company may enter into amendments to previously executed contracts which constitute a contract modification. The effect of a contract modification on the transaction price when the remaining products or services are not distinct is recognized to revenue on a cumulative catch-up basis. Contract modifications are accounted for prospectively when it results in the promise to deliver additional products and services that are distinct and the increase in the price of the contract corresponds to the SSP of the additional products or services. Contract Balances Contract assets and liabilities are presented net at the contract level for each reporting period. Contract assets consist of unbilled revenue and represent amounts under contracts with customers where revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of deferred revenue and include billings and payments received in advance of revenue recognized. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining balance is recorded as noncurrent. For the fiscal year ended August 31, 2021, 2020 and 2019, $18.0 million, $15.2 million and $11.0 million, respectively, of the Company’s unbilled revenue balance that was included in the corresponding unbilled revenue balance at the beginning of the period presented became an unconditional right to payment and was billed to its customers. The Company also recognized revenue that was included in the corresponding deferred revenue balance at the beginning of the period presented. For the fiscal year ended August 31, 2021, 2020 and 2019, the Company recognized revenue of $28.3 million, $22.8 million and $16.2 million, respectively, that was included in the corresponding deferred revenue balance at the beginning of the period presented Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of August 31, 2021, approximately $499.4 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $156.2 million in fiscal 2022 and approximately $343.2 million thereafter. The estimated revenues do not include unexercised contract renewals. The Company applied the practical expedient in accordance with ASC 606 to exclude amounts related to professional services contracts that are on a time and materials basis. (h) Cost of revenue is primarily composed of personnel costs and costs of external resources used in the delivery of professional services to customers, including software configuration, integration services, and training; customer support activities; third-party costs incurred related to hosting the Company’s software for its customers; amortization of acquired technology intangible assets; depreciation expense; and cost of software production and license fees paid to third parties. ( i ) The Company allocates the incremental costs to obtain a contract among the identified performance obligations that are included in the contract, on a relative basis to the allocated transaction price. Incremental costs primarily comprise of commissions paid to the Company’s sales representatives. Any such costs that are allocated to performance obligations that are recognized at a point in time are expensed at that time. Any such costs that are allocated to performance obligations that are recognized over time are capitalized in the period in which they are incurred and amortized on a straight-line basis over the expected period of benefit of the associated contract. The Company determined to use the straight-line basis as the expected benefit will be realized uniformly over the amortization period. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period. As a practical expedient, the Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that it otherwise would have recognized is one year or less. The Company has estimated that the typical period of benefit for its contracts is 8 years, based on both qualitative and quantitative factors, including product lifecycle attributes and historical customer retention data. The Company assesses deferred contract costs for impairment on an annual basis. Amortization expense associated with deferred contract costs are recorded within selling, general, and administrative expenses on the accompanying consolidated statements of operations. Deferred contract costs are included within other assets on the Company’s consolidated balance sheets. The Company does not incur up-front, direct fulfillment-related costs of a nature required to be capitalized and amortized. (j) The Company considers all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents. At August 31, 2020 and 2019, the Company did not have any cash equivalents or restricted cash. (k) Accounts receivable are stated at the amount management expects to collect from outstanding balances and are recorded when the right to consideration becomes unconditional. Payment terms and conditions vary by contract and the product and service being provided. Invoices are typically due within 30 days of receipt by a customer. (l) The Company maintains an allowance for expected credit losses for its accounts receivable balance. The allowance reflects the expected collectability of the balance and is based on historical losses, customer-specific factors, and current economic conditions. Credit losses are recorded in general and administrative expense while billing and other revenue adjustments are recorded as a reduction to revenue. The allowance for doubtful accounts was $1.4 million and $0.4 million as of August 31, 2021 and 2020, respectively. (m) Investments At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. All of the Company’s investments are classified as available-for-sale. The Company classifies investments as short-term when their ( n ) Revenues recognized in excess of the amounts invoiced to customers are classified as unbilled revenues in the accompanying consolidated balance sheets. The Company expects to invoice all of the unbilled revenue recorded at each reporting period over the term of the contract which ranges from two to six years . ( o ) The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. Concentration of credit risk, with respect to cash and cash equivalents, is limited because the Company places its investments in highly rated institutions. The Company is potentially subject to concentration of credit risk primarily through its accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses which, when realized, have been within the range of management’s expectations. The Company generally does not require collateral. Credit risk on accounts receivables is minimized as a result of the large and diverse nature of the Company’s customer base. The Company generates revenues in the capacity of a subcontractor to Accenture, a related party (as described in Note 19). Services provided to Accenture accounted for less than 1%, 1%, and 2% of the Company’s revenue for the years ended August 31, 2021, 2020 and 2019, respectively. For customer concentration purposes, customers are assessed two ways: individual entities (customers) and combining customers that are under common control (consolidated entities). The Company had no single customer that accounted for over 10% As of August 31, 2021, one customer individually accounted for approximately 11% of accounts receivable. As of August 31, 2020, two customers individually accounted for approximately 13% and 12% of accounts receivable, respectively. No other customer individually accounted for more than 10% of the Company’s accounts receivable for these reporting periods. ( p ) Fair Value of Financial Instruments Financial instruments consist mainly of cash, restricted cash, accounts receivable and borrowings under the Company’s credit facility. The carrying amount of accounts receivable is net of an allowance for doubtful accounts, which is based on historical collections and known credit risks, and approximates the fair value of accounts receivable. ( q ) Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Computer equipment and purchased software 3 years Furniture and fixtures 5 years Office equipment 3 years Leasehold improvements Lesser of estimated useful life or life of lease Expenditures for maintenance and repairs are expensed as incurred. Expenditures for renewals or betterments are capitalized. ( r ) The Company has evaluated the establishment of technological feasibility of its perpetual and term license arrangements in accordance with FASB ASC 985-20, Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed. that is subject to rapid technological change, new product development, and changing customer needs. Accordingly, the Company has concluded that technological feasibility for most software products is not established until the development stage of the software product is nearly complete. The Company defines technological feasibility as the completion of a working model. The period of time during which costs could be capitalized, from the point of reaching technological feasibility until the time of general software product release, is very short; consequently, the amounts that are capitalized are not material to the Company’s financial position or results of operations. With respect to the Company’s SaaS products sold to its customers, costs incurred in the preliminary design and development stages of a project are expensed as incurred in accordance with FASB ASC 350-40, Internal-Use Software ( s ) The Company uses its best estimates and assumptions to determine the fair value of tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill is calculated as the difference between the acquisition-date fair value of the consideration transferred and the fair values assigned to the assets acquired and liabilities assumed. During the measurement period, which may be up to one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets acquired and liabilities assumed, with a corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, subsequent adjustments, if any, are recorded to the Company’s consolidated statements of operations. ( t ) The carrying amount of goodwill is not amortized, but rather tested for impairment annually in June of each fiscal year, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. The Company has determined that it is comprised of one reporting unit for purposes of its annual impairment evaluation. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than the carrying amount, or opts not to perform a qualitative assessment, then the two-step goodwill impairment test will be performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step will be performed; otherwise, no the second step is not required. The second step, measuring the impairment loss, compares the implied fair value of the reporting unit’s goodwill with its carrying amount. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. No impairment losses associated with goodwill impairment have been recorded by the Company to date. ( u ) Long-lived assets, such as property and equipment, and acquired intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As discussed in Note 7, the Company recorded an impairment of right of use assets and leasehold improvements during the year ended August 31, 2020. T here were no impairments of long-lived assets, including acquired intangible assets, during the years ended August 31, 20 21 and 201 9 . ( v ) Deferred financing fees include costs incurred primarily in connection with entering into the Company’s revolving credit facility (see Note 13). These costs are capitalized on the accompanying consolidated balance sheets in other assets and are amortized on a straight-line basis over the term of the revolving credit facility. Amortization expense is included as a component of interest expense on the accompanying consolidated statements of operations. ( w ) Share-Based Compensation The Company accounts for share-based compensation awards in accordance with FASB ASC 718, Compensation: Stock Compensation The determination of the fair value of the Class D incentive units and Phantom Unit awards granted prior to the IPO was estimated by management using an income approach and through the use of an option pricing model, to allocate the estimated value of the Company to each of the classes of partnership units. The fair value of the Company’s restricted common stock awards and phantom stock awards is equal to the market value of the Company’s common stock on the date of grant. T he fair value of the Company’s stock options and stock appreciation rights are estimated at the grant date using the Black-Scholes model. The inputs utilized in this model require judgments and estimates. Changes in these inputs could affect the measurement of the estimated fair value of the related compensation expense of these stock options and stock appreciation rights. ( x ) Income taxes are accounted for using the asset and liability method. Under this method, deferred tax asset and liabilities are recognized for differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards, by using enacted tax rates in effect in the year in which the differences are expected to reverse. All deferred tax assets and liabilities are classified as non-current on the Company’s consolidated balance sheets. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Tax benefits from uncertain tax positions are recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense in its consolidated statements of operations. Prior to the IPO, the Company was a limited partnership for income tax purposes. While the Company was a limited partnership, the subsidiaries were the primary entities from an income tax perspective. The Company based its income tax rate reconciliation and other tax disclosures on the fact that the U.S. is the predominant tax jurisdiction where the Company operates. ( y ) Advertising costs are expensed in the period in which the cost was incurred. Total advertising expenses incurred were immaterial for the years ended August 31, 2021, 2020 and 2019. ( z ) Leases Effective September 1, 2019, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-02, Leases liabilities. The Company elected no |
Business Combinations
Business Combinations | 12 Months Ended |
Aug. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | (3) Acquisition of Outline Systems LLC On October 17, 2018, the Company acquired all of the outstanding equity interests of Outline Systems LLC (Outline) for total consideration of $20.4 million. The consideration consisted of cash totaling $9.8 million, Class C Units valued at $2.0 million and the fair value of contingent consideration of $8.6 million (Outline Earnout). The acquisition presented the Company with an opportunity to add distribution management software to its current product offerings as well as distribution management experts to its current team. The transaction was accounted for as a business combination as Outline contained inputs and processes that were capable of being operated as a business. In accordance with the acquisition method of accounting, the purchase price paid has been allocated to the assets acquired and liabilities assumed based on their estimated fair values on the date of the acquisition. The following tables present the consideration paid and the allocation of the consideration paid for the assets acquired and liabilities assumed at the acquisition date: Consideration at fair value: Cash paid at closing $ 9,814 Fair value of Class C Units 2,025 Estimated fair value of contingent consideration 8,600 $ 20,439 Fair value of identifiable assets acquired and liabilities assumed: Accounts receivable $ 824 Unbilled receivables 69 Intangible assets 3,800 Goodwill 16,823 Other assets 299 Total assets acquired 21,815 Accrued liabilities and accounts payable (641 ) Deferred revenue (695 ) Other liabilities (40 ) Total liabilities assumed (1,376 ) Acquisition consideration paid $ 20,439 Acquired intangible assets include completed technology of $1.0 million with a useful life of six years and customer relationships of $2.8 million with a useful life of 14 years. The intangible assets are being amortized on a straight-line basis, which reflects the pattern in which the economic benefits of the intangible assets are being utilized. The goodwill of $16.8 million arising from the acquisition is the result of having a workforce in place, expected synergies, access to working capital and improved vendor and customer relations. As part of the Outline Earnout, the sellers can receive up to $10.3 million in additional payments related to the achievement of a target level of sales value over the three year period subsequent to the acquisition. The sales value will be measured each year, and payments will be made to the sellers to the extent earned. The fair value of the Outline Earnout was estimated using an income-based approach to determine the risk-neutral expected earnout payment for each year. The expected payments were then discounted to determine the fair value as of the acquisition date. The Company re-values the Outline Earnout at each subsequent reporting period and recognizes the change in fair value in the accompanying statements of operations. The Company has not furnished pro forma financial information relating to Outline because such information is not material to the Company’s financial results. Contingent Earnout Liability The following table summarizes the changes in fair value of the Company’s contingent earnout liability during the years ended August 31, 2019, 2020, and 2021: Yodil, LLC Outline Systems, LLC CedeRight Products Total Balance at August 31, 2018 2,562 — — 2,562 Acquisition date fair value — 8,600 1,075 9,675 Change in fair value, including accretion (212 ) 840 — 628 Payments to sellers (2,350 ) — — (2,350 ) Balance at August 31, 2019 — 9,440 1,075 10,515 Change in fair value, including accretion — 450 (317 ) 133 Payments to sellers — (2,798 ) (758 ) (3,556 ) Balance at August 31, 2020 — 7,092 — 7,092 Change in fair value, including accretion — 293 — 293 Payments to sellers — (1,923 ) — (1,923 ) Balance at August 31, 2021 $ — $ 5,462 $ — $ 5,462 The final earnout payment relating to the Yodil acquisition was made in January 2019. The total cumulative earnout paid to the Yodil sellers was $5.3 million. The final earnout payment relating to the CedeRight acquisition was made in May 2020. The total cumulative earnout paid to the CedeRight sellers was $ 0.8 million. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) Available-for-sale investments within cash equivalents and short-term investments consist of the following (in thousands): August 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Government agency securities - presented in short-term investments $ 191,917 $ 64 $ — $ 191,981 Total $ 191,917 $ 64 $ — $ 191,981 The Company has recorded the securities at fair value in its consolidated balance sheet and unrealized gains and losses are reported as a component of accumulated other comprehensive income (loss). The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold or securities that reached maturity date. There were sales and maturities of securities for the fiscal year ended August 31, 2021. The remaining securities will mature before the end of the second quarter of fiscal year 2022. There were no available-for-sale investment balances as of August 31, 2020. Fair Value The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The following tables present the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories as of August 31, 2021 and 2020: August 31, 2021 Level 1 Level 2 Level 3 Total Assets: U.S. Government agency securities - presented in short term investments $ — $ 191,981 $ — $ 191,981 Total assets $ — $ 191,981 $ — $ 191,981 Liabilities: Liability classified awards $ 1,448 $ — $ 1,588 $ 3,036 Contingent earnout liability — — 5,462 5,462 Total liabilities $ 1,448 $ — $ 7,050 $ 8,498 August 31, 2020 Level 1 Level 2 Level 3 Total Liabilities: Liability classified awards $ 7,821 $ — $ 879 $ 8,700 Contingent earnout liability — — 7,092 7,092 Total liabilities $ 7,821 $ — $ 7,971 $ 15,792 The contingent earnout liability related to business combinations is recorded at fair value on the acquisition date and is adjusted each reporting period for changes in fair value, which can result from changes in anticipated payments and changes in assumed discount periods and rates. These inputs are unobservable in the market and therefore categorized as level 3 inputs as defined above. Quoted prices for liability classified stock appreciation rights are not readily available. Accordingly, the Company uses a Black-Scholes model to estimate the fair value of these awards, which utilizes level three inputs. The following table summarizes the changes in the estimated fair value of the Company’s level 3 categorized liability classified awards for the year ended August 31, 2021: Balance as of August 31, 2020 $ 879 Additions due to new awards — Net change in the fair value 709 Cash settlement of awards — Balance as of August 31, 2021 $ 1,588 The Company had no assets measured and recorded at fair value on a recurring basis as of August 31, 2020 and 2019. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Aug. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | (5) Prepaid expenses and other current assets as of August 31, 2021 and 2020 consisted of the following: August 31, August 31, 2021 2020 Directors and officers insurance $ 5,515 $ 5,355 Computer, software, and licenses 5,861 2,603 Other 3,005 4,228 Total prepaid expenses and other current assets $ 14,381 $ 12,186 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Aug. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | (6) Property and equipment, net as of August 31, 2021 and 2020 consisted of the following: August 31, 2021 2020 Leasehold improvements $ 10,572 $ 11,216 Internal-use software 8,230 7,304 Computer equipment 4,849 4,310 Furniture and fixtures 2,304 2,181 Office equipment 496 478 Assets under construction 111 — Total property and equipment $ 26,562 $ 25,489 Less accumulated depreciation and amortization (12,257 ) (7,376 ) Property and equipment, net $ 14,305 $ 18,113 Depreciation expense related to property and equipment was $3.1 million, $3.1 million and $2.4 million for the years ended August 31, 2021, 2020 and 2019, respectively. The Company has determined the useful life of capitalized internal-use software to be three years. Amortization expense related to internal-use software was $2.0 million for the fiscal year ended August 31, 2021, $0.7 million for the fiscal year ended August 31, 2020, and none for the fiscal year ended August 31, 2019 |
Leases
Leases | 12 Months Ended |
Aug. 31, 2021 | |
Leases [Abstract] | |
Leases | (7) The Company’s lease obligations consist of operating leases for domestic and international office facilities with lease periods expiring between fiscal years 2021 and 2029. Some leases include one or more options to renew. Lease renewals are not assumed in the determination of the lease term until the exercise of the renewals are deemed to be reasonably certain. For the fiscal year ended August 31, 2021, the Company incurred $4.5 million of operating lease expense and $0.3 million of short term lease expense resulting in total lease expense of $4.8 million. For the fiscal year ended August 31, 2020, the Company incurred $4.6 million of operating lease expense and $0.3 million of short term lease expense resulting in total lease expense of $4.9 million. Rent expense, which was recognized on a straight-line basis over the terms of the various leases, was $4.4 million for the fiscal year ended August 31, 2019 based on the previous lease accounting standard. During the fourth quarter of fiscal 2021, the Company closed its London, Barcelona, Chandigarh, and Columbia offices. As a result of these decisions, the Company recorded an impairment in the amount of $2.6 million, consisting of $1.9 million of right of use assets and $0.7 million of leasehold improvements, which is included in general and administrative expense on the consolidated statement of operations for the year ended August 31, 2021. During the fourth quarter of fiscal 2020, the Company closed its New Jersey office. The Company also closed one floor of its South Carolina office. As a result of these decisions, the Company recorded an impairment in the amount of $2.8 million, consisting of $1.7 million of right of use assets and $1.1 million of leasehold improvements, which is included in general and administrative expense on the consolidated statement of operations for the year ended August 31, 2020. During the third quarter of fiscal 2021, the Company recorded a $0.5 million gain on the derecognition of a lease liability resulting from a sublease transaction for the South Carolina office. This gain is included in other income (expense), net on the consolidated statements of operations for the year ended August 31, 2021. Future operating lease payments as of August 31, 2021 were as follows: Fiscal Year Ending August 31, 2022 $ 5,112 2023 5,062 2024 5,083 2025 4,648 Thereafter 8,813 Total future lease payments 28,718 Less imputed interest (3,335 ) Total lease liability balance $ 25,383 Supplemental information related to leases was as follows: August 31, 2021 August 31, 2020 Operating lease assets $ 17,798 $ 18,171 Current portion of lease liabilities $ 4,110 $ 3,611 Non-current portion of lease liabilities 21,273 21,739 Total lease liabilities $ 25,383 $ 25,350 Weighted average remaining lease term (years) 5.2 7.1 Weighted average discount rate 4.2 % 4.4 % Supplemental cash and non-cash information related to operating leases was as follows: Year Ended August 31, 2021 Year Ended August 31, 2020 Cash payments for operating leases $ 4,056 $ 4,604 Operating lease assets obtained in exchange for lease liabilities $ — $ 1,271 |
Goodwill and Intangible assets
Goodwill and Intangible assets | 12 Months Ended |
Aug. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | ( 8 ) The Company’s goodwill is the result of its acquisitions of other businesses and represents the excess of purchase consideration over the fair value of assets acquired and liabilities assumed. There has been no change to the $272.5 million carrying amount of goodwill since August 31, 2019. Intangible assets as of August 31, 2021, and 2020 consisted of the following: August 31, 2021 Gross carrying amount Accumulated amortization Net carrying amount Weighted average remaining life Customer relationships $ 103,600 51,815 $ 51,785 5.3 years Acquired technology 32,235 23,509 8,726 1.8 years Trademarks and tradenames 9,400 4,778 4,622 4.8 years Domain name 100 50 50 4.8 years Backlog 6,700 6,524 176 0.8 years $ 152,035 $ 86,676 $ 65,359 August 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Weighted average remaining life Customer relationships $ 103,600 41,535 $ 62,065 6.5 years Acquired technology 32,235 18,785 13,450 3.0 years Trademarks and tradenames 9,400 3,838 5,562 6.0 years Domain name 100 40 60 6.0 years Backlog 6,700 6,150 550 2.0 years $ 152,035 $ 70,348 $ 81,687 Amortization expense was $16.3 million, $17.1 million and $17.6 million for the years ended August 31, 2021, 2020 and 2019, respectively. Amortization expense is recorded on a straight line basis over the estimated useful lives of the assets. Amortization expense associated with the backlog intangible asset is classified as a reduction of revenue in the accompanying consolidated statements of operations. As of August 31, 2021, the estimated future amortization of purchased intangible assets is as follows: Fiscal year: 2022 $ 15,793 2023 15,225 2024 11,453 2025 11,307 2026 and thereafter 11,581 Total $ 65,359 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Aug. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | (9) Net Loss Per Share The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by assuming the exercise, settlement, and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings per share of common stock. Year Ended August 31, 2021 Numerator Net loss $ (16,931 ) Denominator Weighted average shares of common stock - basic and diluted 131,114,791 Net loss per share - basic and diluted $ (0.13 ) As of August 31, 2021, 3,022,585 shares outstanding of potential common stock, prior to the use of the treasury stock method, were excluded from the computation of diluted weighted-average shares of common stock outstanding because their effect would have been antidilutive. Prior to the IPO, there were no structure Basic earnings per share is applicable only for the period from August 14, 2020 through August 31, 2020, which is the period following the IPO and related Reorganization Transactions (as described in Note 1) and presents the period that the Company had outstanding common stock. The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings per share of common stock for this period. Year Ended August 31, 2020 Numerator Net loss $ (29,932 ) Net loss attributable to the Operating Partnership before the Reorganization Transactions (5,598 ) Net loss attributable to Duck Creek Technologies, Inc. $ (24,334 ) Denominator Weighted average shares of common stock - basic and diluted 130,702,511 Net loss per share - basic and diluted $ (0.19 ) The Company analyzed the calculation of earnings per unit for periods prior to the IPO and determined that it resulted in values that would not be meaningful to the users of these consolidated financial statements. Therefore, earnings per share information has not been presented for any period prior to August 31, 2020. As of August 31, 2020, 4,594,242 shares outstanding of potential common stock, prior to the use of the treasury stock method, were excluded from the computation of diluted weighted-average shares of common stock outstanding because their effect would have been antidilutive. |
Other Assets
Other Assets | 12 Months Ended |
Aug. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | ( 10 ) Other assets as of August 31, 2021 and 2020 consisted of the following: August 31, August 31, 2021 2020 Deferred contract costs $ 14,056 $ 12,440 Other noncurrent assets 5,357 3,863 Total other assets $ 19,413 $ 16,303 The amortization related to deferred contracts costs were $2.1 million, $1.5 million and $0.7 million for the fiscal year ended August 31, 2021, 2020 and 2019, respectively, and there was no impairment loss in relation to the costs capitalized. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Credit Losses | 12 Months Ended |
Aug. 31, 2021 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Accounts Receivable And Allowance For Credit Losses | (1 1 ) Accounts Receivable and Allowance for Credit Losses Accounts receivable, net as of August 31, 2021 and August 31, 2020, consisted of the following: August 31, August 31, 2021 2020 Accounts receivable $ 36,054 $ 29,504 Allowance for credit losses (1,425 ) (355 ) Accounts receivable, net $ 34,629 $ 29,149 The following table presents changes to the allowance for credit losses during the year ended August 31, 2021: Allowance, August 31, 2020 $ (355 ) Net changes to credit losses (1,105 ) Write-offs, net 35 Allowance, August 31, 2021 $ (1,425 ) |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Aug. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | ( 1 2 ) Accrued liabilities as of August 31, 2021 and 2020 consisted of the following: August 31, 2021 2020 Accrued bonuses $ 18,831 $ 18,175 Accrued hosting fees 7,500 11,890 Accrued vacation 5,572 7,560 Accrued commissions 1,429 2,269 Accrued professional service fees 369 1,910 Liability-classified phantom units and SARs 3,036 8,700 Accrued withholding taxes 2,771 731 Other 6,929 6,967 Total accrued liabilities $ 46,437 $ 58,202 |
Credit Facility
Credit Facility | 12 Months Ended |
Aug. 31, 2021 | |
Line Of Credit Facility [Abstract] | |
Credit Facility | ( 1 3 ) On October 2, 2019, the Company extended the maturity date of its credit agreement for a revolving credit facility from October 4, 2019 to October 2, 2021. The $30.0 million maximum borrowing capacity under the revolving credit facility was unchanged. The revolving credit facility is secured by substantially all of the Company’s tangible assets. Interest accrues on the revolving credit facility at a variable rate based upon the type of borrowing made by the Company. Borrowings can either incur interest at a rate of LIBOR plus an applicable margin, or incur interest at the higher of: (i) the Prime Rate, (2) the Fed Funds Rate plus 0.5%, or (3) LIBOR plus 1.0%, plus an applicable margin. The applicable margin ranges from 2.0% to 3.0% depending on the interest rate basis and type of borrowing elected. In addition to interest on the revolving credit facility, the Company pays a commitment fee of 0.5% per annum on the unused portion of the revolving credit facility. Repayment of any amounts borrowed are not required until maturity of the revolving credit facility, however the Company may repay any amounts borrowed at any time, without premium or penalty. The Company is required to meet certain financial and nonfinancial covenants under the terms of the revolving credit facility. These covenants include limits on the creation of liens, limits on making certain investments, limits on incurring additional indebtedness, maintaining a minimum level of consolidated EBITDA, and maintaining a leverage ratio at or below a maximum level. The Company was in compliance with these financial and nonfinancial covenants as of August 31, 2021. There was no outstanding balance under the revolving credit facility at August 31, 2021 and August 30, 2020. On October 22, 2021, the revolving credit facility was amended resulting in an extension of the maturity date to October 22, 2026, an increase in the borrowing capacity from $30.0 million to $45.0 million, and the removal of the financial covenant relating to consolidated EBITDA. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ( 1 4 ) ( a ) From time to time, the Company is a party to or can be threatened with litigation in the ordinary course of business. The Company regularly analyzes current information, including, as applicable, the Company’s defenses and insurance coverage and, as necessary, provides accruals for probable and estimable liabilities for the eventual disposition of any matters. The Company was not a party to any material legal proceedings as of August 31, 2021 or 2020. ( b ) The Company’s products are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and substantially in accordance with the Company’s product documentation under normal use and circumstances. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. The Company’s arrangements also include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such indemnifications or commitments and has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 1 5 ) On December 22, 2017, the Tax Cuts and Jobs Act tax reform legislation (the 2017 Tax Act) was enacted into law. This legislation made significant changes in U.S. tax law including, but not limited to, a reduction in the corporate tax rate from 35% to 21%, one time taxation of offshore earnings at reduced rates regardless of whether they are repatriated (Transition Tax), and a repeal of the corporate alternative minimum tax. The 2017 Tax Act also establishes new tax laws that will affect later years including, but not limited to, a general limitation of U.S. federal income taxes on dividends from foreign subsidiaries, net operating loss deduction limitations, a base erosion, anti-tax abuse tax (BEAT) and a new provision designed to tax global intangible low-taxed income (GILTI). The The Company’s loss before income taxes for the years ended August 31, 2021, 2020 and 2019 is as follows: August 31 2021 2020 2019 United States $ (21,193 ) $ (32,593 ) $ (18,196 ) Foreign 6,158 4,223 2,450 Loss before income taxes $ (15,035 ) $ (28,370 ) $ (15,746 ) The provision for income taxes consisted of the following: August 31 2021 2020 2019 Current: Federal $ — $ — $ — State 174 97 54 Foreign 1,059 896 908 Total current tax expense 1,233 993 962 Deferred: Federal — — (8 ) State — — (18 ) Foreign 663 569 214 Total deferred tax (benefit) expense 663 569 188 Total provision for income taxes $ 1,896 $ 1,562 $ 1,150 The table below reconciles the differences between income taxes computed at the U.S. federal statutory rate and the provision for income taxes: August 31 2021 2020 2019 Expected income tax% 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit (0.9 )% (0.5 ) 1.2 Permanent differences (0.8 )% 0.8 (1.3 ) Share-based compensation 4.7 % (2.0 ) (2.8 ) Non-deductible officer's compensation (2.4 )% (2.1 ) — Federal research and development credits 9.4 % 2.1 0.6 Foreign rate differential (3.7 )% (2.1 ) (3.9 ) Change in valuation allowance (39.9 )% (22.7 ) (22.1 ) Total income tax expense% (12.6 )% (5.5 )% (7.3 )% Net deferred tax assets (liabilities) consist of the following: August 31 2021 2020 Assets: Net operating loss carryforward $ 23,681 $ 18,640 Intangible assets 24,571 25,868 Tax credits 4,496 2,885 Other nondeductible expenses 10,931 9,106 Share-based compensation 2,520 4,731 Interest expense carryforward 132 132 Lease liabilities 4,780 5,701 Other 414 — Gross deferred tax assets $ 71,525 $ 67,063 Less valuation allowance (59,207 ) (52,956 ) Total deferred tax assets $ 12,318 $ 14,107 Liabilities: Deferred revenue — (1,564 ) Intangible assets (1,651 ) (1,809 ) Operating lease assets (3,094 ) (3,916 ) Capitalized items (5,019 ) (4,887 ) Depreciation (858 ) (897 ) Total deferred tax liabilities (10,622 ) (13,073 ) Total net deferred tax assets $ 1,696 $ 1,034 The Company recognizes a net deferred tax asset for the future benefit of tax losses, tax credit carryforwards, and other deductible temporary differences to the extent that it is more likely than not that these assets will be realized. In evaluating the Company’s ability to recover these deferred tax assets, the Company considers all available positive and negative evidence, including its past operating results, the existence of cumulative income in the most recent years, changes in the business, the projected reversal of existing deferred tax liabilities, its forecast of future taxable income, and the availability of tax planning strategies. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of the years ended August 31, 2021 and 2020, the Company evaluated the likelihood that it would realize its deferred tax assets and concluded that a valuation allowance is necessary, except in certain foreign subsidiaries which generate income. The valuation allowance increased by $6.3 million for the fiscal year ended August 31, 2021 primarily due to operating losses generated during the year, tax credits, and other non-deductible expenses. The valuation allowance increased by $5.9 million for the fiscal year ended August 31, 2020 primarily due to operating losses generated during the year , share-based compensation, tax credits, and other non-deductible expenses . As of August 31, 2021, the Company had U.S. federal and U.S. state net operating loss carryforwards of $85.3 million and $56.6 million, respectively. U.S. federal net operating loss carryforwards of $49.5 million have no expiration date and will be carried forward indefinitely until used. The remaining U.S. federal and U.S. state net operating loss carryforwards expire at various dates beginning in 2032. As of August 31, 2021, the Company had foreign net operating loss carryforwards of $12.9 million that can be carried forward indefinitely. The Company also had U.S. federal research and development credit carryforwards of $3.8 million, U.S. state research and development credit carryforwards of $0.7 million and a state investment tax credit carryforward of $0.2 million as of August 31, 2021. These credit carryforwards expire at various dates beginning in 2030. Utilization of the net operating loss and research and development credit carryforwards may be subject to a substantial annual limitation under Section 382 of the Internal Revenue Code due to ownership change limitations that have occurred previously or that could occur in the future. These ownership changes may limit the amount of net operating loss and research and development credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. The Company is in the process of preparing a 382 assessment and does not expect there to be a material impact on the utilization of its available carryforwards. The Company does not expect to be precluded from realizing the net operating loss carryforwards and tax credits but may be limited in the amount it could use in any given tax year in the event that the federal and state taxable income exceeds the limitation imposed by Section 382. The amount of the annual limitation is determined based on the Company’s value immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. A reconciliation of unrecognized income tax benefits is as follows: Amount Balance at August 31, 2019 $ 395 No change - current year and prior year tax positions — Balance at August 31, 2020 $ 395 No change - current year and prior year tax positions — Balance at August 31, 2021 $ 395 The Company accounts for uncertain tax positions using a more-likely than-not threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors that include, but are not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates uncertain tax positions on an annual basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. The Company elected an accounting policy to record interest and penalties related to income taxes as a component of income tax expense. In the normal course of business, the Company is subject to examination by U.S. federal and certain state and foreign taxing authorities. All tax periods remain subject to income tax examinations as of August 31, 2021. The statute of limitations for these jurisdictions is generally three to seven years. However, to the extent that the Company utilizes net operation losses or other similar carryforward attributes such as credits, the statute remains open to the extent of the net operation losses or credits that are utilized. |
Redeemable Partners_ Interest a
Redeemable Partners’ Interest and Partners’ Capital and Stockholders’ Equity | 12 Months Ended |
Aug. 31, 2021 | |
Redeemable Partners Interest And Partners Capital And Stockholders Equity [Abstract] | |
Redeemable Partners’ Interest and Partners’ Capital and Stockholders’ Equity | ( 1 6 ) Redeemable Partners’ Interest and Partners’ Capital As of August 13, 2020, prior to the closing of the Reorganization Transactions and IPO (see Note 1 – Nature of Business), the following units of the partnership were authorized, issued and outstanding in accordance with the Company’s amended and restated Agreement of Exempted Limited Partnership Agreement (Partnership Agreement): Description Authorized Issued and outstanding Unit classes: Class A 5,000,000,000 183,354,104 Class B 5,000,000,000 122,236,021 Class C 5,000,000,000 3,660,106 Class D 59,247,586 47,170,961 Class E 129,828,398 129,828,398 Of the 47,170,961 Class D Units outstanding noted in the table above, 27,356,428 were unvested as of August 13, 2020. In October 2018, the Company issued 1,500,000 Class C Units, with an aggregate fair value of $2.0 million, as part of the purchase price of the Outline acquisition as further described in Note 3 – Business Combinations. In November 2019, the Company issued 41,412,296 Class E Units in exchange for cash consideration of $120.0 million to certain accredited investors. Also in November 2019, the Company redeemed 20,292,029 Class A Units and 13,528,013 Class B Units in exchange for $98.0 million. In February 2020, the Company issued 30,222,126 Class E Preferred Units in exchange for cash consideration of $0.1 million to certain accredited investors. Also in February 2020, the Company redeemed 18,133,278 Class A Units and 12,088,848 Class B Units in exchange for $0.1 million. In June 2020, the Company issued 58,193,976 Class E Preferred Units in exchange for cash consideration of $230.0 million to certain accredited investors. Also in June 2020, the Company redeemed 30,362,073 Class A Units and 20,241,374 Class B Units in exchange for $199.9 million. The Company incurred $11.4 million in aggregate issuance costs associated with the Class E Units. Additionally, the Company issued Class D incentive units and Phantom Unit incentive awards to certain employees and directors of the Company (see Note 17 – Share-Based Compensation). The Class A, Class B, Class C, and Class E Units were held by the Company’s limited partners, with the exception of 100 Class A Units which were held by the Company’s general partner. Prior to the Reorganization Transactions and IPO, profits and losses were allocated to each class in such a manner, as close as possible, to equal the amount that would be distributable to each partner upon dissolution of the Company. The rights and preferences of the Class A, Class B, Class C, Class D, and Class E Units were as follows: Voting rights : All units of the limited partners were deemed to be nonvoting units and did not entitle any holder thereof to any right to vote upon or approve any action to be taken by the Company. The Company’s general partner, Disco (Cayman) GP Co., had broad authority to act on behalf of the partnership. Distribution preferences : The partners of the Company were entitled to receive distributions in the following order priority: (1) first, 100% to the holders of Class A Units, Class B Units, Class C Units, and Class E Units in proportion to their unreturned capital amounts, (2) second, to all holders, on a ratable basis, of Class A Units, Class B Units, Class C Units, Class D, and Class E Units held at the time of distribution. Liquidation preferences : Upon any liquidation or dissolution of the Company, the partners were entitled to a distribution of the remaining assets of the Company after payment or provision for the Company’s liabilities has been made, in accordance with the distribution preferences described above. Redemption rights : The holders of the Class A Units, Class B Units, Class C Units, and Class D Units did not have the right to redeem the units, outside of the distribution and liquidation terms described above. The holders of the Class E Units had the right to redeem the units upon (i) the occurrence of the Company not achieving certain liquidity events by the fourth anniversary of the original issuance of the Class E Units, and (ii) notice to the Company’s general partner. Although units of the Company were not mandatorily redeemable, they were classified outside of partner’s capital because they were potentially redeemable upon certain events outside of the Company’s control, including a change in control, sale, dissolution, or winding up. Repurchase rights : In the event that an employee holding Class C Units was terminated for cause or upon breach of the agreement between the Company and the employee, the Company had the right to repurchase the Class C Units for the lower of the cost basis (to the holder) of the Class C Units, the fair value of the Class C Units at the date of termination or the fair value of the Class C Units at the date of repurchase. The Company also had the right to repurchase vested Class D Units upon termination as further described in Note 16 – Share-Based Compensation. Reorganization Transactions and Initial Public Offering Following the Reorganization Transactions and IPO as further described in Note 1 – Nature of Business, the holders of Class A, Class B, Class C, Class D and Class E Units retained all or a portion of their equity ownership in the Company through their ownership of common stock of the Company. The units of the partnership were converted into the following shares of common stock: Units Held Pre-IPO Converted Shares Post-IPO Class A 183,354,104 45,838,526 Class B 122,236,021 28,855,284 Class C 3,660,106 915,027 Class D 19,814,533 7,930,897 Class E 129,828,398 32,457,100 458,893,162 115,996,833 Non-controlling Interests Following the Reorganization Transactions , the outstanding LP Units of the Operating Partnership owned by Accenture and RBW that were not contributed to the Company were treated as non-controlling interests. However, these outstanding LP Units of the Operating Partnership were subsequently redeemed using proceeds obtained from the IPO. Accordingly, the balance of non-controlling interests as of August 31, 2020 was $0. Common Stock Reserved for Issuance As of August 31, 2021, the Company was authorized to issue 300,000,000 shares of common stock with a par value of $0.01 per share and 132,000,317 shares of common stock were outstanding. As of August 31, 2021, the Company had 14,187,853 shares of common stock reserved for future issuance under the Company’s 2020 Omnibus Incentive Plan. Follow-on Offering During the second quarter of 2021, the Company completed a follow-on offering of its common stock. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Aug. 31, 2021 | |
Income Statement Compensation Items [Abstract] | |
Share-Based Compensation | ( 1 7 ) 2020 Omnibus Incentive Plan As part of the Reorganizations Transactions, the Company adopted the Duck Creek Technologies, Inc. 2020 Omnibus Incentive Plan (the “Plan”). The purpose of the Plan is to provide additional incentives to selected officers, employees, non-employee directors, independent contractors and consultants, to strengthen their commitment to the Company and to attract and retain competent and dedicated persons who are essential to the success of the Company’s business. The maximum number of shares of the Company’s common stock reserved for issuance under the Plan is 18,000,000 shares. This reserve will automatically increase on January 1 st st Class D Units and Phantom Units Prior to the IPO, the Company granted Class D incentive units (Class D Units) to certain employees and directors under the terms of Incentive Unit Award Agreements. The Company also granted Phantom Unit incentive awards (Phantom Units) to certain employees of its international subsidiaries. The Class D Units and Phantom Units were granted in three tranches, as follows: Class D-1 Units 80% of the units granted Class D-2 Units 10% of the units granted Class D-3 Units 10% of the units granted Vesting of the Class D Units was 50% time‑based, quarterly, over a four year Share-based compensation expense related to the issuance of Class D Units was calculated based upon the fair value of the Class D Units at the time of grant and recognized ratably over the requisite service period of the award. With respect to the Phantom Units, as a change in control event represents a contingent future event outside the control of the Company, the Company did not record any share-based compensation expense related to the Phantom Units until the contingency was resolved. The following is a summary of the Company’s Class D Unit awards as of the date of the IPO: Number of Class D Units Nonvested, August 31, 2019 30,391,861 Granted 3,420,000 Vested (5,579,183 ) Forfeited (876,250 ) Impact of conversion (27,356,428 ) Nonvested, August 31, 2020 — Outstanding Class D Units of 47,170,961 converted to 9,785,895 shares of restricted common stock on the IPO date. The following is a summary of the Company’s Phantom Unit awards as of the date of the IPO: Number of Phantom Units Nonvested, August 31, 2019 1,228,125 Granted 350,000 Vested (197,969 ) Forfeited (143,750 ) Impact of conversion (1,236,406 ) Nonvested, August 31, 2020 — Outstanding Phantom Units of 1,894,063 converted to 373,581 Phantom stock awards on the IPO date. Conversion of Class D Units and Phantom Units On the date of the IPO, the Class D-1 Units became participating units when the total cumulative distributions made to the Class A Unit holders exceeded the aggregate investment made by the Class A Unit holders. In addition, participating D-1 Phantom Units became eligible for cash settlement. As part of the Reorganization Transactions; (i) Class D Units were converted to restricted common stock and (ii) non-participating Phantom Units were cancelled and replaced with new phantom stock awards. All converted and replaced awards retained the same vesting attributes as the original Class D Units and Phantom Units. Vested and unvested Class D Units converted to an aggregate 9,785,895 shares of restricted common stock (“Class D Restricted Common Stock”). Of this amount, 7,930,897 were vested and 1,854,998 were unvested. The conversion was treated as a grant of a new award in exchange for cancellation of an old award, and therefore was accounted for as a modification. Accordingly, the Company compared the fair value of the Class D Units immediately prior to the conversion to the fair value of the Class D Restricted Common Stock granted. However, based on the conversion ratio in effect, no additional share-based compensation expense was recorded as the fair values were identical upon conversion. As a result of the Participating D-1 Phantom Units becoming eligible for cash settlement, the Company recorded share-based compensation expense and an accrued liability of $6.6 million during the fiscal year ended August 31, 2020 based on the fair value of the awards on the date of IPO. Non-participating D-2 and D-3 Phantom Units were converted to 126,289 phantom stock awards (“Class D Phantom Stock Awards”). The grant date fair value of Class D Phantom Stock Awards is being recorded as share-based compensation expense over the requisite service period of the awards. The Company has concluded that Class D Phantom Stock Awards should be treated as liability classified share-based compensation awards because they will be settled in cash. Accordingly, the accrued liability balance associated with Class D Phantom Stock Awards is adjusted to fair value at each reporting period through earnings. During the fiscal year ended August 31, 2020, the Company recorded share-based compensation expense and an accrued liability of $1.2 million for Class D Phantom Stock Awards. Leverage Restoration Options and SARs In substitution for part of the economic benefit of the Class D Units that was not reflected in the conversion to Class D Restricted Common Stock, 1,802,216 stock options (“Leverage Restoration Options”) were granted to holders of Class D Units. The fair value of the Leverage Restoration Options is being recorded as share-based compensation expense over the requisite service period of the awards. During the fiscal year ended August 31, 2020, the Company recorded share-based compensation expense of $10.5 million for the Leverage Restoration Options. Additionally, in substitution for part of the economic benefit of the Phantom Units that was not reflected in the conversion to Class D Phantom Stock Awards, 91,762 stock appreciation rights (“Leverage Restoration SARs”) were granted to holders of Phantom Units. The fair value of the Leverage Restoration SARs is being recorded as share-based compensation expense over the requisite period of the awards. The Company has concluded that the Leverage Restoration SARs should be treated as liability classified share-based compensation awards because they will be settled in cash. Accordingly, the accrued liability balance associated with Leverage Restoration SARs is adjusted to fair value at each reporting period through earnings. During the quarter ended August 31, 2020, the Company recorded share-based compensation expense and an accrued liability of $0.9 million for Leverage Restoration SARs. Class D Restricted Common Stock The Class D Restricted Common Stock awards retain the vesting attributes (including original service period vesting start date) of the Class D Units. Unless the applicable award agreement provides otherwise, participants with restricted stock will generally have all the rights of a stockholder during the restricted period. The following is a summary of the Company’s Class D Restricted Common Stock: Number of Class D Restricted Stock Nonvested, August 31, 2020 1,832,873 Granted — Vested (870,240 ) Forfeited (198,660 ) Nonvested, August 31, 2021 763,973 Unrecognized share-based compensation expense of $0.7 million related to Class D Restricted Common Stock as of August 31, 2021 is expected to be recognized over a period of 2.0 years. Since the fair value of the Class D Units and the fair value of the Class D Restricted Common Stock were identical upon conversion, the $0.7 million of future share-based compensation relates to the aggregate grant date fair value of the Class D Units determined in prior periods. As such, the disclosure of the weighted average fair value of the Class D Restricted Common Stock is not meaningful. Leverage Leverage Restoration Options were granted on the IPO date, with an exercise price of $27.00, a ten-year Expected life 4 years Risk-free rate 0.24% Volatility 35% Dividend yield 0.00% The following is a summary of the Company’s Leverage Restoration Options: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance as of August 31, 2020 1,802,216 $ 27.00 10 21,609 Granted — — Exercised (150,559 ) $ 27.00 3,025 Forfeited (48,605 ) $ 27.00 Balance as of August 31, 2021 1,603,052 $ 27.00 9 31,468 Vested and expected to vest as of August 31, 2021 1,603,052 $ 27.00 9 31,468 Exercisable as of August 31, 2021 1,374,332 $ 27.00 9 26,978 Aggregate intrinsic value represents of the Leverage Restoration Options was determined using the Company’s closing stock price of $46.63 and $38.99 less the applicable weighted-average exercise price on August 31, 2021 and August 31, 2020, respectively . As of August 31, 2021, unrecognized share-based compensation expense of $1.3 million related to these stock options is expected to be recognized over a weighted average period of 2.0 years. Class D Phantom Stock Awards The Class D Phantom Stock Awards retain the vesting attributes (including original service period vesting start date) of the Phantom Units. These awards will be settled in cash equal to the fair market value of a share of the Company’s common stock, determined on the day that such award becomes fully vested. The following is a summary of the Company’s Class D Phantom Stock Awards: Number of Class D Phantom Stock Awards Nonvested, August 31, 2020 98,400 Granted — Vested (41,335 ) Forfeited (11,019 ) Nonvested, August 31, 2021 46,046 Leverage Restoration Stock Appreciation Rights Leverage Restoration Stock Appreciation Rights (“SARs”) were granted on August 14, 2020 with an exercise price of $27.00, a ten-year The per share fair value of each SAR was estimated on the grant date under the Black-Scholes option valuation model and re-valued as of August 31, 2020 using the following assumptions: Expected life 4 years Risk-free rate 0.24% Volatility 35% Dividend yield 0.00% The following is a summary of the Company’s outstanding balance of SAR’s as of the fiscal year ended August 31, 2021: Number of Stock Appreciation Rights Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance as of August 31, 2020 91,762 $ 27.00 10 1,100 Granted — $ 0.00 Exercised (1,260 ) $ 27.00 1,740 Forfeited (1,879 ) $ 27.00 Balance as of August 31, 2021 88,623 $ 27.00 9 1,740 Vested and expected to vest as of August 31, 2021 88,623 $ 27.00 9 1,740 Exercisable as of August 31, 2021 64,607 $ 27.00 9 1,268 Aggregate intrinsic value of the Leverage Restoration SARs was determined using the Company’s closing stock price of $46.63 and $38.99 less the applicable weighted-average exercise price on August 31, 2021 and August 31, 2020, respectively . During the fiscal year ended August 31, 2021 and 2020, the Company recorded share-based compensation expense and an accrued liability of $0.7 million and $0.9 million, respectively, for Leverage Restoration SARs. As of August 31, 2021, the accrued liability associated with Leverage Restoration SARs was $1.6 million. New Restricted Stock Awards and Restricted Stock Units Subsequent to the IPO, the Company has granted Restricted Stock Awards (“RSAs”) to select US employees and outside directors and Restricted Stock Units (“RSUs”) to select international employees. While substantively the same from an economic standpoint, the RSUs represent the right to receive shares of the Company’s common stock as they vest; however, the holder of an RSU has no rights as a stockholder. The following is a summary of the Company’s RSAs and RSUs: Restricted Stock Awards Restricted Stock Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Nonvested, August 31, 2020 903,377 55,749 $ 27.00 37,397 Granted 38,422 1,158 $ 43.96 Vested (231,982 ) (13,297 ) $ 27.00 — Forfeited (90,434 ) (7,433 ) $ 27.00 Nonvested, August 31, 2021 619,383 36,177 $ 28.02 30,569 These awards generally vest annually over a 4-year requisite service period and are settled in shares of the Company’s common stock. The Company has concluded that the RSAs and RSUs should be treated as equity classified share-based compensation awards. During the years ended August 31, 2021 and 2020, the Company recorded aggregate share-based compensation expense of $6.8 million and $0.3 million, respectively, related to these RSAs and RSUs. Share-based compensation expense has been recorded in the accompanying consolidated statements of operations as follows for the years ended August 31, 2020, 2019 and 2018: Twelve Months Ended August 31, 2021 2020 2019 Cost of subscription revenue $ 429 $ 415 $ 21 Cost of maintenance and support revenue 29 28 9 Cost of services revenue 2,708 4,683 122 Research and development 1,992 4,128 398 Sales and marketing 3,209 5,581 417 General and administrative 4,510 6,273 1,103 Total share-based compensation expense $ 12,877 $ 21,108 $ 2,070 Upon closing of the underwritten public offering of the Company’s common stock on February 2, 2021, a market condition was achieved relating to Class D Restricted Common Stock, Leverage Restoration Options, Class D Phantom Stock and Leverage Restoration SARs. Accordingly, all remaining unrecognized share-based compensation expense associated with these awards totaling $1.2 million was immediately recognized on that date. During the three months ended February 28, 2021, the Company modified the vesting conditions for a subset of its share-based awards. The modification resulted in incremental share-based compensation expense of $0.6 million that will be recognized over the remaining requisite service period of the awards. |
Segment Information and Informa
Segment Information and Information about Geographic Areas | 12 Months Ended |
Aug. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information and Information about Geographic Areas | ( 1 8 ) The Company considers operating segments to be components of the Company for which separate financial information is available and evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the chief executive officer. The chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by product and geographic region, for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single Revenues by geographic area presented based upon the location of the customer are included in Note 2(g). Property and equipment, net by geographic area are as follows: August 31, 2021 2020 United States $ 12,814 $ 15,715 All other 1,491 2,398 Total property and equipment, net $ 14,305 $ 18,113 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Aug. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | ( 1 9 ) Defined Contribution Plan The Company has a 401(k) plan covering all U.S.-based employees who meet certain eligibility requirements. Under the terms of the 401(k) plan, the employees can elect to make tax-deferred contributions to the 401(k) plan and the Company can make discretionary contributions. Under this plan, discretionary contributions of $ million , $ million , and $ 5.0 million were made by the Company for the years ended August 31, 20 2 1 , 20 20 , and 2019 respectively. Other Long-Term Obligations The Company accrues for long-term termination obligations earned by employees of its subsidiary in India. The termination obligation would be payable to the employee in the event of termination without cause and is based upon the employee’s wage and years of service, and the applicable payment formula as dictated by statute. The liability is based on an actuarial estimate. The accrued obligation was $1.8 million and $1.5 million |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | ( 20 ) Services Provided on Behalf of and by Accenture As of August 31, 2021 and 2020, Accenture held 16.0% and 22.1% of the outstanding shares of common stock The Company provides certain professional services and software maintenance services to end customers as a subcontractor to Accenture as part of its typical revenue generating arrangements. Revenue Contracts with Investors The Company recognizes revenues from customers that invested in the Company’s Class E Preferred Units during the year ended 2020 whose shares converted to common stock in the IPO. The Company recognized aggregate revenues of $31.2 million and $18.7 million from these customers and deferred revenue of $4.1 million and $6.4 million during the years ended August 31, 2021 and 2020, respectively. As of August 31, 2021 and 2020, the Company had outstanding accounts receivables due from these customers of $5.0 million and $7.9 million, respectively. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Aug. 31, 2021 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Results of Operations (Unaudited) | ( 21 ) Quarterly Results of Operations (Unaudited) Fiscal quarters ended August 31, 2021 May 31, 2021 February 28, 2021 November 30, 2020 Total revenue $ 70,854 $ 67,938 $ 62,652 $ 58,906 Total cost of revenue 29,764 27,750 27,542 25,030 Total gross profit 41,090 40,188 35,110 33,876 Loss from operations (4,128 ) (544 ) (6,448 ) (4,246 ) Net loss (5,559 ) $ (357 ) $ (6,364 ) $ (4,651 ) Loss per share - basic and diluted $ (0.04 ) $ — $ (0.05 ) $ (0.04 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) set by the Financial Accounting Standards Board (FASB). References to GAAP issued by the FASB in these notes are to the FASB Accounting Standards Codification (FASB ASC). The Company has no items of other comprehensive income or loss; therefore, the Company’s net loss is identical to its comprehensive loss. |
Recently Adopted Accounting Pronouncements | (b) Lease Accounting In February 2016, FASB issued ASU 2016-02, Leases , which requires companies to recognize on the balance sheet the assets and liabilities for the rights and obligations created by the leased asset. The standard For comparability purposes, the Company will continue to comply with the previous disclosure requirements in accordance with the existing lease guidance for all periods presented in the year of adoption. The Company elected the package of practical expedients as permitted under the transition guidance, which allowed us: (1) to carry forward the historical lease classification; (2) not to reassess whether expired or existing contracts are or contain leases; and (3) not to reassess the treatment of initial direct costs for existing leases. In addition, the Company elected an accounting policy to not recognize leases with an initial term of one year or less on the balance sheet. Upon the adoption of this standard on September 1, 2019, the Company recognized a total lease liability of $26.7 million, representing the present value of the minimum rental payments remaining as of the adoption date, a reduction of the deferred rent liability of $5.7 million and operating lease assets in the amount of $21.0 million. The Company did not have any finance leases (formerly referred to as capital leases prior to the adoption of ASC 842), therefore there was no change in accounting treatment required). Other Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract |
Principles of Consolidation | (c) The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year | (d) The Company’s fiscal year ends on August 31 of each calendar year. |
Use of Estimates | (e) The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are used when accounting for certain items such as valuation of goodwill and intangible assets, the useful lives of intangible assets, share-based compensation, standalone selling prices in transactions with customers that include multiple performance obligations, assets acquired and liabilities assumed in business combinations, contingent earnout liabilities, and capitalized software development costs. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from management’s estimates if past experience or other assumptions are not substantially accurate. |
Foreign Currency | (f) The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions in local currencies are translated to the U.S. dollar and recorded as gains and losses in other income (expense) in the accompanying consolidated statements of operations. Transaction gains and losses for all periods presented were not material. |
Revenue Recognition | (g) The Company derives its revenues primarily from the following four sources, which represent performance obligations of the Company: • Sales of hosted software services (SaaS) under subscription arrangements • Sales of software licenses • Sales of maintenance and support services • Sales of professional services In accordance with ASC 606, the Company recognizes revenue from the identified performance obligations, as determined in its contracts with customers, as control is transferred to the customer in an amount that reflects the consideration the Company expects to receive. The Company applies the following five steps to achieve the core principle of ASC 606: (1) Identify the contract with the customer The Company considers the terms and conditions of the contracts and its customary business practices in identifying contracts under ASC 606. The Company has determined that a contract with a customer exists when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. (2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. (3) Determine the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that no significant future reversal of cumulative revenue under the contract will occur. The sale of the Company’s software and SaaS products may include variable consideration relating to changes in a customer’s direct written premium (DWP) managed by these solutions. The Company estimates variable consideration based on historical DWP usage to the extent that a significant revenue reversal is not probable to occur. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from customers or to provide customers with financing. (4) Allocate the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (SSP). (5) Recognize revenue when (or as) the Company satisfies a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to a customer. Revenue is recognized when control of the products or services are transferred to the Company’s customers, in an amount that reflects the consideration that it expects to receive in exchange for those products or services. The Company records revenue net of applicable sales taxes collected. Sales taxes collected from customers are recorded as part of accounts payable in the accompanying consolidated balance sheets and are remitted to state and local taxing jurisdictions based on the filing requirements of each jurisdiction. Disaggregation of Revenue The Company provides disaggregation of revenue based on product and service type on the consolidated statements of operations as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following table summarizes revenue by geographic area based on the location of the contracting entity, regardless of where the products or services are used, for the years ended August 31, 2021, 2020 and 2019: Year Ended August 31, 2021 2020 2019 United States $ 238,912 $ 200,373 $ 162,585 All other 21,438 11,299 8,688 Total revenue $ 260,350 $ 211,672 $ 171,273 Subscription Arrangements The transaction price allocated to subscription arrangements is recognized as revenue over time throughout the term of the contract as the services are provided on a continuous basis, beginning after the SaaS environment is provisioned and made available to customers. The Company’s subscription arrangements generally have terms of three to seven years and are generally payable on a monthly basis over the term of the subscription arrangement, which is typically noncancelable. Revenue is recognized ratably using contractual DWP as the measure of progress. Software Licenses The Company has concluded that its software licenses provide the customer with the right to functional intellectual property (IP), and are distinct performance obligations as the customer can benefit from the software licenses on their own. The transaction price allocated to perpetual and term license arrangements is recognized as revenue at a point in time when control is transferred to the customer, which generally occurs at the time of delivery. Perpetual software license fees are generally payable when the contract is executed. Term license fees are generally payable in advance on an annual basis over the term of the license arrangement, which is typically noncancelable. Perpetual and term license arrangements are delivered before related services are provided, including maintenance and support services, and are functional without such services. Maintenance and Support Services Maintenance and support contracts associated with the Company’s software licenses entitle customers to receive technical support and software updates, on a when and if available basis, during the term of the maintenance and support contract. Technical support and software updates are considered distinct from the related software licenses but accounted for as a single performance obligation as they each constitute a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. The transaction price allocated to software maintenance and support is recognized as revenue over time on a straight-line basis over the term of the maintenance and support contract. Maintenance and support fees are generally payable in advance on a monthly, quarterly, or annual basis over the term of the maintenance and support contract. Maintenance and support contracts are priced as a percentage of the associated software license. Professional Services The Company’s professional services revenue is primarily comprised of implementation services provided to customers. The majority of professional services engagements are billed to customers on a time and materials basis. The Company has determined that professional services provided to customers represent distinct performance obligations. These services may be provided on a stand-alone basis or bundled with other performance obligations, including subscription arrangements, software licenses, and maintenance and support services. The transaction price allocated to these performance obligations is recognized as revenue over time as the services are performed. In those limited instances where professional services arrangements are sold on a fixed price basis, revenue is recognized over time using an input measure of time incurred to date relative to total estimated time to be incurred at project completion. Professional services arrangements are generally invoiced monthly in arrears. The Company records reimbursable out-of-pocket expenses associated with professional services contracts in both revenue and cost of revenue. Contracts with Multiple Performance Obligations The Company’s contracts with customers can include multiple performance obligations, where the transaction price is allocated to each identified performance obligation based on their relative SSP. The Company’s contracts may also grant the customer an option to acquire additional products or services, which the Company assesses to determine whether or not any discount on the products or services is in excess of levels normally available to similar customers and, if so, accounts for the optional product or service as an additional performance obligation. The Company typically determines SSP based on the observable prices of the promised goods or services charged when sold separately to customers, which are determined using contractually stated prices. In instances where SSP is not directly observable, the Company determines SSP based on its overall pricing objectives, taking into consideration market conditions and other factors, including customer size and geography. The various products and services comprising contracts with multiple performance obligations are typically capable of being distinct and accounted for as separate performance obligations. The Company allocates revenue to each of the performance obligations included in a contract with multiple performance obligations at the inception of the contract. The SSP for perpetual or term license arrangements sold in contracts with multiple performance obligations is determined using the residual approach. The Company utilizes the residual approach because the selling prices for software licenses is highly variable and a SSP is not discernible from past transactions or other observable evidence. Periodically, the Company evaluates whether the use of the residual approach remains appropriate for performance obligations associated with software licenses when sold as part of contracts with multiple performance obligations. As a result, if the SSP analysis illustrates that the selling prices for software licenses are no longer highly variable, the Company will utilize the relative allocation method for such arrangements. Contract Modifications The Company may enter into amendments to previously executed contracts which constitute a contract modification. The effect of a contract modification on the transaction price when the remaining products or services are not distinct is recognized to revenue on a cumulative catch-up basis. Contract modifications are accounted for prospectively when it results in the promise to deliver additional products and services that are distinct and the increase in the price of the contract corresponds to the SSP of the additional products or services. Contract Balances Contract assets and liabilities are presented net at the contract level for each reporting period. Contract assets consist of unbilled revenue and represent amounts under contracts with customers where revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of deferred revenue and include billings and payments received in advance of revenue recognized. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining balance is recorded as noncurrent. For the fiscal year ended August 31, 2021, 2020 and 2019, $18.0 million, $15.2 million and $11.0 million, respectively, of the Company’s unbilled revenue balance that was included in the corresponding unbilled revenue balance at the beginning of the period presented became an unconditional right to payment and was billed to its customers. The Company also recognized revenue that was included in the corresponding deferred revenue balance at the beginning of the period presented. For the fiscal year ended August 31, 2021, 2020 and 2019, the Company recognized revenue of $28.3 million, $22.8 million and $16.2 million, respectively, that was included in the corresponding deferred revenue balance at the beginning of the period presented Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of August 31, 2021, approximately $499.4 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $156.2 million in fiscal 2022 and approximately $343.2 million thereafter. The estimated revenues do not include unexercised contract renewals. The Company applied the practical expedient in accordance with ASC 606 to exclude amounts related to professional services contracts that are on a time and materials basis. |
Cost of Revenue | (h) Cost of revenue is primarily composed of personnel costs and costs of external resources used in the delivery of professional services to customers, including software configuration, integration services, and training; customer support activities; third-party costs incurred related to hosting the Company’s software for its customers; amortization of acquired technology intangible assets; depreciation expense; and cost of software production and license fees paid to third parties. |
Contract Costs | ( i ) The Company allocates the incremental costs to obtain a contract among the identified performance obligations that are included in the contract, on a relative basis to the allocated transaction price. Incremental costs primarily comprise of commissions paid to the Company’s sales representatives. Any such costs that are allocated to performance obligations that are recognized at a point in time are expensed at that time. Any such costs that are allocated to performance obligations that are recognized over time are capitalized in the period in which they are incurred and amortized on a straight-line basis over the expected period of benefit of the associated contract. The Company determined to use the straight-line basis as the expected benefit will be realized uniformly over the amortization period. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period. As a practical expedient, the Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that it otherwise would have recognized is one year or less. The Company has estimated that the typical period of benefit for its contracts is 8 years, based on both qualitative and quantitative factors, including product lifecycle attributes and historical customer retention data. The Company assesses deferred contract costs for impairment on an annual basis. Amortization expense associated with deferred contract costs are recorded within selling, general, and administrative expenses on the accompanying consolidated statements of operations. Deferred contract costs are included within other assets on the Company’s consolidated balance sheets. The Company does not incur up-front, direct fulfillment-related costs of a nature required to be capitalized and amortized. |
Cash, Cash Equivalents and Restricted Cash | (j) The Company considers all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents. At August 31, 2020 and 2019, the Company did not have any cash equivalents or restricted cash. |
Accounts Receivable and Payment Terms | (k) Accounts receivable are stated at the amount management expects to collect from outstanding balances and are recorded when the right to consideration becomes unconditional. Payment terms and conditions vary by contract and the product and service being provided. Invoices are typically due within 30 days of receipt by a customer. |
Allowance for Credit Losses | (l) The Company maintains an allowance for expected credit losses for its accounts receivable balance. The allowance reflects the expected collectability of the balance and is based on historical losses, customer-specific factors, and current economic conditions. Credit losses are recorded in general and administrative expense while billing and other revenue adjustments are recorded as a reduction to revenue. The allowance for doubtful accounts was $1.4 million and $0.4 million as of August 31, 2021 and 2020, respectively. |
Investments | (m) Investments At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. All of the Company’s investments are classified as available-for-sale. The Company classifies investments as short-term when their |
Unbilled Revenue | ( n ) Revenues recognized in excess of the amounts invoiced to customers are classified as unbilled revenues in the accompanying consolidated balance sheets. The Company expects to invoice all of the unbilled revenue recorded at each reporting period over the term of the contract which ranges from two to six years . |
Concentration of Credit Risk | ( o ) The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. Concentration of credit risk, with respect to cash and cash equivalents, is limited because the Company places its investments in highly rated institutions. The Company is potentially subject to concentration of credit risk primarily through its accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses which, when realized, have been within the range of management’s expectations. The Company generally does not require collateral. Credit risk on accounts receivables is minimized as a result of the large and diverse nature of the Company’s customer base. The Company generates revenues in the capacity of a subcontractor to Accenture, a related party (as described in Note 19). Services provided to Accenture accounted for less than 1%, 1%, and 2% of the Company’s revenue for the years ended August 31, 2021, 2020 and 2019, respectively. For customer concentration purposes, customers are assessed two ways: individual entities (customers) and combining customers that are under common control (consolidated entities). The Company had no single customer that accounted for over 10% As of August 31, 2021, one customer individually accounted for approximately 11% of accounts receivable. As of August 31, 2020, two customers individually accounted for approximately 13% and 12% of accounts receivable, respectively. No other customer individually accounted for more than 10% of the Company’s accounts receivable for these reporting periods. |
Fair Value of Financial Instruments | ( p ) Fair Value of Financial Instruments Financial instruments consist mainly of cash, restricted cash, accounts receivable and borrowings under the Company’s credit facility. The carrying amount of accounts receivable is net of an allowance for doubtful accounts, which is based on historical collections and known credit risks, and approximates the fair value of accounts receivable. |
Property and Equipment | ( q ) Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Computer equipment and purchased software 3 years Furniture and fixtures 5 years Office equipment 3 years Leasehold improvements Lesser of estimated useful life or life of lease Expenditures for maintenance and repairs are expensed as incurred. Expenditures for renewals or betterments are capitalized. |
Software Development Costs | ( r ) The Company has evaluated the establishment of technological feasibility of its perpetual and term license arrangements in accordance with FASB ASC 985-20, Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed. that is subject to rapid technological change, new product development, and changing customer needs. Accordingly, the Company has concluded that technological feasibility for most software products is not established until the development stage of the software product is nearly complete. The Company defines technological feasibility as the completion of a working model. The period of time during which costs could be capitalized, from the point of reaching technological feasibility until the time of general software product release, is very short; consequently, the amounts that are capitalized are not material to the Company’s financial position or results of operations. With respect to the Company’s SaaS products sold to its customers, costs incurred in the preliminary design and development stages of a project are expensed as incurred in accordance with FASB ASC 350-40, Internal-Use Software |
Business Combinations | ( s ) The Company uses its best estimates and assumptions to determine the fair value of tangible and intangible assets acquired and liabilities assumed in a business combination. Goodwill is calculated as the difference between the acquisition-date fair value of the consideration transferred and the fair values assigned to the assets acquired and liabilities assumed. During the measurement period, which may be up to one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets acquired and liabilities assumed, with a corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, subsequent adjustments, if any, are recorded to the Company’s consolidated statements of operations. |
Goodwill | ( t ) The carrying amount of goodwill is not amortized, but rather tested for impairment annually in June of each fiscal year, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. The Company has determined that it is comprised of one reporting unit for purposes of its annual impairment evaluation. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than the carrying amount, or opts not to perform a qualitative assessment, then the two-step goodwill impairment test will be performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step will be performed; otherwise, no the second step is not required. The second step, measuring the impairment loss, compares the implied fair value of the reporting unit’s goodwill with its carrying amount. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. No impairment losses associated with goodwill impairment have been recorded by the Company to date. |
Impairment of Long-Lived Assets | ( u ) Long-lived assets, such as property and equipment, and acquired intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. As discussed in Note 7, the Company recorded an impairment of right of use assets and leasehold improvements during the year ended August 31, 2020. T here were no impairments of long-lived assets, including acquired intangible assets, during the years ended August 31, 20 21 and 201 9 . |
Deferred Financing Fees | ( v ) Deferred financing fees include costs incurred primarily in connection with entering into the Company’s revolving credit facility (see Note 13). These costs are capitalized on the accompanying consolidated balance sheets in other assets and are amortized on a straight-line basis over the term of the revolving credit facility. Amortization expense is included as a component of interest expense on the accompanying consolidated statements of operations. |
Share-Based Compensation | ( w ) Share-Based Compensation The Company accounts for share-based compensation awards in accordance with FASB ASC 718, Compensation: Stock Compensation The determination of the fair value of the Class D incentive units and Phantom Unit awards granted prior to the IPO was estimated by management using an income approach and through the use of an option pricing model, to allocate the estimated value of the Company to each of the classes of partnership units. The fair value of the Company’s restricted common stock awards and phantom stock awards is equal to the market value of the Company’s common stock on the date of grant. T he fair value of the Company’s stock options and stock appreciation rights are estimated at the grant date using the Black-Scholes model. The inputs utilized in this model require judgments and estimates. Changes in these inputs could affect the measurement of the estimated fair value of the related compensation expense of these stock options and stock appreciation rights. |
Income Taxes | ( x ) Income taxes are accounted for using the asset and liability method. Under this method, deferred tax asset and liabilities are recognized for differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards, by using enacted tax rates in effect in the year in which the differences are expected to reverse. All deferred tax assets and liabilities are classified as non-current on the Company’s consolidated balance sheets. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Tax benefits from uncertain tax positions are recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense in its consolidated statements of operations. Prior to the IPO, the Company was a limited partnership for income tax purposes. While the Company was a limited partnership, the subsidiaries were the primary entities from an income tax perspective. The Company based its income tax rate reconciliation and other tax disclosures on the fact that the U.S. is the predominant tax jurisdiction where the Company operates. |
Advertising Expenses | ( y ) Advertising costs are expensed in the period in which the cost was incurred. Total advertising expenses incurred were immaterial for the years ended August 31, 2021, 2020 and 2019. |
Leases | ( z ) Leases Effective September 1, 2019, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-02, Leases liabilities. The Company elected not to recognize on the balance sheet leases with terms of one year or less. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component. Lease liabilities are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not determinable and therefore the Company uses the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate for each lease using its estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease asset also includes any lease prepayments, offset by lease incentives. Certain of the Company’s leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the operating lease asset and lease liability when it is reasonably certain that the option will be exercised. An option to terminate is considered unless it is reasonably certain that the option will not be exercised. For periods prior to the adoption of ASC 842, the Company recorded rent expense on a straight-line basis over the term of the related lease. The difference between the straight-line rent expense and the payments made in accordance with the operating lease agreements were recognized as a deferred rent liability on the accompanying consolidated balance sheets. |
Recent Accounting Pronouncements Not Yet Effective | ( aa ) In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This new guidance provides temporary optional expedients and exceptions to current guidance to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) to alternative reference rates. We may elect to apply the optional expedients and exceptions prospectively through December 31, 2022. The Company does not expect the new standard to have a material impact on its consolidated financial statements. Other recent accounting pronouncements that are or will be applicable to the Company did not, or are not expected to, have a material impact on the Company’s present or future financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Revenue by Geographic Area | The following table summarizes revenue by geographic area based on the location of the contracting entity, regardless of where the products or services are used, for the years ended August 31, 2021, 2020 and 2019: Year Ended August 31, 2021 2020 2019 United States $ 238,912 $ 200,373 $ 162,585 All other 21,438 11,299 8,688 Total revenue $ 260,350 $ 211,672 $ 171,273 |
Summary of Property and Equipment Estimated Useful Lives | Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Computer equipment and purchased software 3 years Furniture and fixtures 5 years Office equipment 3 years Leasehold improvements Lesser of estimated useful life or life of lease |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of Consideration at Fair Value | Consideration at fair value: Cash paid at closing $ 9,814 Fair value of Class C Units 2,025 Estimated fair value of contingent consideration 8,600 $ 20,439 |
Summary of Fair Value of Identifiable Assets Acquired and Liabilities Assumed | Fair value of identifiable assets acquired and liabilities assumed: Accounts receivable $ 824 Unbilled receivables 69 Intangible assets 3,800 Goodwill 16,823 Other assets 299 Total assets acquired 21,815 Accrued liabilities and accounts payable (641 ) Deferred revenue (695 ) Other liabilities (40 ) Total liabilities assumed (1,376 ) Acquisition consideration paid $ 20,439 |
Schedule of Changes in Fair Value of Contingent Earnout Liability | The following table summarizes the changes in fair value of the Company’s contingent earnout liability during the years ended August 31, 2019, 2020, and 2021: Yodil, LLC Outline Systems, LLC CedeRight Products Total Balance at August 31, 2018 2,562 — — 2,562 Acquisition date fair value — 8,600 1,075 9,675 Change in fair value, including accretion (212 ) 840 — 628 Payments to sellers (2,350 ) — — (2,350 ) Balance at August 31, 2019 — 9,440 1,075 10,515 Change in fair value, including accretion — 450 (317 ) 133 Payments to sellers — (2,798 ) (758 ) (3,556 ) Balance at August 31, 2020 — 7,092 — 7,092 Change in fair value, including accretion — 293 — 293 Payments to sellers — (1,923 ) — (1,923 ) Balance at August 31, 2021 $ — $ 5,462 $ — $ 5,462 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Available-for-Sale Investments within Cash Equivalents and Short-term Investments | Available-for-sale investments within cash equivalents and short-term investments consist of the following (in thousands): August 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Government agency securities - presented in short-term investments $ 191,917 $ 64 $ — $ 191,981 Total $ 191,917 $ 64 $ — $ 191,981 |
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following tables present the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories as of August 31, 2021 and 2020: August 31, 2021 Level 1 Level 2 Level 3 Total Assets: U.S. Government agency securities - presented in short term investments $ — $ 191,981 $ — $ 191,981 Total assets $ — $ 191,981 $ — $ 191,981 Liabilities: Liability classified awards $ 1,448 $ — $ 1,588 $ 3,036 Contingent earnout liability — — 5,462 5,462 Total liabilities $ 1,448 $ — $ 7,050 $ 8,498 August 31, 2020 Level 1 Level 2 Level 3 Total Liabilities: Liability classified awards $ 7,821 $ — $ 879 $ 8,700 Contingent earnout liability — — 7,092 7,092 Total liabilities $ 7,821 $ — $ 7,971 $ 15,792 |
Summary of Changes in the Estimated Fair Value of the Company’s Level 3 Categorized Liability Classified Awards | The following table summarizes the changes in the estimated fair value of the Company’s level 3 categorized liability classified awards for the year ended August 31, 2021: Balance as of August 31, 2020 $ 879 Additions due to new awards — Net change in the fair value 709 Cash settlement of awards — Balance as of August 31, 2021 $ 1,588 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of August 31, 2021 and 2020 consisted of the following: August 31, August 31, 2021 2020 Directors and officers insurance $ 5,515 $ 5,355 Computer, software, and licenses 5,861 2,603 Other 3,005 4,228 Total prepaid expenses and other current assets $ 14,381 $ 12,186 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net as of August 31, 2021 and 2020 consisted of the following: August 31, 2021 2020 Leasehold improvements $ 10,572 $ 11,216 Internal-use software 8,230 7,304 Computer equipment 4,849 4,310 Furniture and fixtures 2,304 2,181 Office equipment 496 478 Assets under construction 111 — Total property and equipment $ 26,562 $ 25,489 Less accumulated depreciation and amortization (12,257 ) (7,376 ) Property and equipment, net $ 14,305 $ 18,113 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Leases [Abstract] | |
Summary of Future Operating Lease Payments | Future operating lease payments as of August 31, 2021 were as follows: Fiscal Year Ending August 31, 2022 $ 5,112 2023 5,062 2024 5,083 2025 4,648 Thereafter 8,813 Total future lease payments 28,718 Less imputed interest (3,335 ) Total lease liability balance $ 25,383 |
Summary of Information Related to Leases and Cash and Non-cash Information to Operating Leases | Supplemental information related to leases was as follows: August 31, 2021 August 31, 2020 Operating lease assets $ 17,798 $ 18,171 Current portion of lease liabilities $ 4,110 $ 3,611 Non-current portion of lease liabilities 21,273 21,739 Total lease liabilities $ 25,383 $ 25,350 Weighted average remaining lease term (years) 5.2 7.1 Weighted average discount rate 4.2 % 4.4 % Supplemental cash and non-cash information related to operating leases was as follows: Year Ended August 31, 2021 Year Ended August 31, 2020 Cash payments for operating leases $ 4,056 $ 4,604 Operating lease assets obtained in exchange for lease liabilities $ — $ 1,271 |
Goodwill and Intangible assets
Goodwill and Intangible assets (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets as of August 31, 2021, and 2020 consisted of the following: August 31, 2021 Gross carrying amount Accumulated amortization Net carrying amount Weighted average remaining life Customer relationships $ 103,600 51,815 $ 51,785 5.3 years Acquired technology 32,235 23,509 8,726 1.8 years Trademarks and tradenames 9,400 4,778 4,622 4.8 years Domain name 100 50 50 4.8 years Backlog 6,700 6,524 176 0.8 years $ 152,035 $ 86,676 $ 65,359 August 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Weighted average remaining life Customer relationships $ 103,600 41,535 $ 62,065 6.5 years Acquired technology 32,235 18,785 13,450 3.0 years Trademarks and tradenames 9,400 3,838 5,562 6.0 years Domain name 100 40 60 6.0 years Backlog 6,700 6,150 550 2.0 years $ 152,035 $ 70,348 $ 81,687 |
Summary of Estimated Future Amortization of Purchased Intangible Assets | As of August 31, 2021, the estimated future amortization of purchased intangible assets is as follows: Fiscal year: 2022 $ 15,793 2023 15,225 2024 11,453 2025 11,307 2026 and thereafter 11,581 Total $ 65,359 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerator and Denominator Used to Compute Basic Earnings Per Share of Common Stock | The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings per share of common stock. Year Ended August 31, 2021 Numerator Net loss $ (16,931 ) Denominator Weighted average shares of common stock - basic and diluted 131,114,791 Net loss per share - basic and diluted $ (0.13 ) Year Ended August 31, 2020 Numerator Net loss $ (29,932 ) Net loss attributable to the Operating Partnership before the Reorganization Transactions (5,598 ) Net loss attributable to Duck Creek Technologies, Inc. $ (24,334 ) Denominator Weighted average shares of common stock - basic and diluted 130,702,511 Net loss per share - basic and diluted $ (0.19 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets as of August 31, 2021 and 2020 consisted of the following: August 31, August 31, 2021 2020 Deferred contract costs $ 14,056 $ 12,440 Other noncurrent assets 5,357 3,863 Total other assets $ 19,413 $ 16,303 |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Credit Losses (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Summary of Accounts Receivable, Net | Accounts receivable, net as of August 31, 2021 and August 31, 2020, consisted of the following: August 31, August 31, 2021 2020 Accounts receivable $ 36,054 $ 29,504 Allowance for credit losses (1,425 ) (355 ) Accounts receivable, net $ 34,629 $ 29,149 |
Schedule of Changes to the Allowance for Credit Losses | The following table presents changes to the allowance for credit losses during the year ended August 31, 2021: Allowance, August 31, 2020 $ (355 ) Net changes to credit losses (1,105 ) Write-offs, net 35 Allowance, August 31, 2021 $ (1,425 ) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities as of August 31, 2021 and 2020 consisted of the following: August 31, 2021 2020 Accrued bonuses $ 18,831 $ 18,175 Accrued hosting fees 7,500 11,890 Accrued vacation 5,572 7,560 Accrued commissions 1,429 2,269 Accrued professional service fees 369 1,910 Liability-classified phantom units and SARs 3,036 8,700 Accrued withholding taxes 2,771 731 Other 6,929 6,967 Total accrued liabilities $ 46,437 $ 58,202 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Loss Before Income Taxes | The Company’s loss before income taxes for the years ended August 31, 2021, 2020 and 2019 is as follows: August 31 2021 2020 2019 United States $ (21,193 ) $ (32,593 ) $ (18,196 ) Foreign 6,158 4,223 2,450 Loss before income taxes $ (15,035 ) $ (28,370 ) $ (15,746 ) |
Summary of Provision for Income Taxes | The provision for income taxes consisted of the following: August 31 2021 2020 2019 Current: Federal $ — $ — $ — State 174 97 54 Foreign 1,059 896 908 Total current tax expense 1,233 993 962 Deferred: Federal — — (8 ) State — — (18 ) Foreign 663 569 214 Total deferred tax (benefit) expense 663 569 188 Total provision for income taxes $ 1,896 $ 1,562 $ 1,150 |
Summary of Reconciliation of Differences Between Income Taxes Computed at U.S. Federal Statutory Rate and Provision for Income Taxes | The table below reconciles the differences between income taxes computed at the U.S. federal statutory rate and the provision for income taxes: August 31 2021 2020 2019 Expected income tax% 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit (0.9 )% (0.5 ) 1.2 Permanent differences (0.8 )% 0.8 (1.3 ) Share-based compensation 4.7 % (2.0 ) (2.8 ) Non-deductible officer's compensation (2.4 )% (2.1 ) — Federal research and development credits 9.4 % 2.1 0.6 Foreign rate differential (3.7 )% (2.1 ) (3.9 ) Change in valuation allowance (39.9 )% (22.7 ) (22.1 ) Total income tax expense% (12.6 )% (5.5 )% (7.3 )% |
Summary of Net Deferred Tax Assets (Liabilities) | Net deferred tax assets (liabilities) consist of the following: August 31 2021 2020 Assets: Net operating loss carryforward $ 23,681 $ 18,640 Intangible assets 24,571 25,868 Tax credits 4,496 2,885 Other nondeductible expenses 10,931 9,106 Share-based compensation 2,520 4,731 Interest expense carryforward 132 132 Lease liabilities 4,780 5,701 Other 414 — Gross deferred tax assets $ 71,525 $ 67,063 Less valuation allowance (59,207 ) (52,956 ) Total deferred tax assets $ 12,318 $ 14,107 Liabilities: Deferred revenue — (1,564 ) Intangible assets (1,651 ) (1,809 ) Operating lease assets (3,094 ) (3,916 ) Capitalized items (5,019 ) (4,887 ) Depreciation (858 ) (897 ) Total deferred tax liabilities (10,622 ) (13,073 ) Total net deferred tax assets $ 1,696 $ 1,034 |
Summary of Reconciliation of Unrecognized Income Tax Benefits | A reconciliation of unrecognized income tax benefits is as follows: Amount Balance at August 31, 2019 $ 395 No change - current year and prior year tax positions — Balance at August 31, 2020 $ 395 No change - current year and prior year tax positions — Balance at August 31, 2021 $ 395 |
Redeemable Partners' Interest a
Redeemable Partners' Interest and Partners' Capital and Stockholders' Equity (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Redeemable Partners Interest And Partners Capital And Stockholders Equity [Abstract] | |
Summary of Units of Partnership, Authorized, Issued and Outstanding | As of August 13, 2020, prior to the closing of the Reorganization Transactions and IPO (see Note 1 – Nature of Business), the following units of the partnership were authorized, issued and outstanding in accordance with the Company’s amended and restated Agreement of Exempted Limited Partnership Agreement (Partnership Agreement): Description Authorized Issued and outstanding Unit classes: Class A 5,000,000,000 183,354,104 Class B 5,000,000,000 122,236,021 Class C 5,000,000,000 3,660,106 Class D 59,247,586 47,170,961 Class E 129,828,398 129,828,398 |
Summary of Units of Partnership Converted | The units of the partnership were converted into the following shares of common stock: Units Held Pre-IPO Converted Shares Post-IPO Class A 183,354,104 45,838,526 Class B 122,236,021 28,855,284 Class C 3,660,106 915,027 Class D 19,814,533 7,930,897 Class E 129,828,398 32,457,100 458,893,162 115,996,833 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Class D Units and Phantom Units were Granted Percentage | The Class D Units and Phantom Units were granted in three tranches, as follows: Class D-1 Units 80% of the units granted Class D-2 Units 10% of the units granted Class D-3 Units 10% of the units granted |
Summary of Class D Units Awards | The following is a summary of the Company’s Class D Unit awards as of the date of the IPO: Number of Class D Units Nonvested, August 31, 2019 30,391,861 Granted 3,420,000 Vested (5,579,183 ) Forfeited (876,250 ) Impact of conversion (27,356,428 ) Nonvested, August 31, 2020 — |
Summary of Phantom Unit Awards | The following is a summary of the Company’s Phantom Unit awards as of the date of the IPO: Number of Phantom Units Nonvested, August 31, 2019 1,228,125 Granted 350,000 Vested (197,969 ) Forfeited (143,750 ) Impact of conversion (1,236,406 ) Nonvested, August 31, 2020 — |
Summary of Class D Restricted Common Stock | The following is a summary of the Company’s Class D Restricted Common Stock: Number of Class D Restricted Stock Nonvested, August 31, 2020 1,832,873 Granted — Vested (870,240 ) Forfeited (198,660 ) Nonvested, August 31, 2021 763,973 |
Summary of Leverage Restoration Options | The following is a summary of the Company’s Leverage Restoration Options: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance as of August 31, 2020 1,802,216 $ 27.00 10 21,609 Granted — — Exercised (150,559 ) $ 27.00 3,025 Forfeited (48,605 ) $ 27.00 Balance as of August 31, 2021 1,603,052 $ 27.00 9 31,468 Vested and expected to vest as of August 31, 2021 1,603,052 $ 27.00 9 31,468 Exercisable as of August 31, 2021 1,374,332 $ 27.00 9 26,978 |
Summary of Class D Phantom Stock Awards | The following is a summary of the Company’s Class D Phantom Stock Awards: Number of Class D Phantom Stock Awards Nonvested, August 31, 2020 98,400 Granted — Vested (41,335 ) Forfeited (11,019 ) Nonvested, August 31, 2021 46,046 |
Summary of Outstanding Balance of SAR's | The following is a summary of the Company’s outstanding balance of SAR’s as of the fiscal year ended August 31, 2021: Number of Stock Appreciation Rights Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance as of August 31, 2020 91,762 $ 27.00 10 1,100 Granted — $ 0.00 Exercised (1,260 ) $ 27.00 1,740 Forfeited (1,879 ) $ 27.00 Balance as of August 31, 2021 88,623 $ 27.00 9 1,740 Vested and expected to vest as of August 31, 2021 88,623 $ 27.00 9 1,740 Exercisable as of August 31, 2021 64,607 $ 27.00 9 1,268 |
Summary of RSAs and RSUs | The following is a summary of the Company’s RSAs and RSUs: Restricted Stock Awards Restricted Stock Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Nonvested, August 31, 2020 903,377 55,749 $ 27.00 37,397 Granted 38,422 1,158 $ 43.96 Vested (231,982 ) (13,297 ) $ 27.00 — Forfeited (90,434 ) (7,433 ) $ 27.00 Nonvested, August 31, 2021 619,383 36,177 $ 28.02 30,569 |
Summary of Share-based Compensation Expense Recorded in Accompanying Consolidated Statements of Operations | Share-based compensation expense has been recorded in the accompanying consolidated statements of operations as follows for the years ended August 31, 2020, 2019 and 2018: Twelve Months Ended August 31, 2021 2020 2019 Cost of subscription revenue $ 429 $ 415 $ 21 Cost of maintenance and support revenue 29 28 9 Cost of services revenue 2,708 4,683 122 Research and development 1,992 4,128 398 Sales and marketing 3,209 5,581 417 General and administrative 4,510 6,273 1,103 Total share-based compensation expense $ 12,877 $ 21,108 $ 2,070 |
Leverage Restoration Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Estimated Per Share Fair Value of Each Option Award on Grant Date Under the Black-Scholes Valuation Model | The per share fair value of each option award was estimated on the grant date under the Black-Scholes valuation model that used the following assumptions: Expected life 4 years Risk-free rate 0.24% Volatility 35% Dividend yield 0.00% |
SAR | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Estimated Per Share Fair Value of Each Option Award on Grant Date Under the Black-Scholes Valuation Model | The per share fair value of each SAR was estimated on the grant date under the Black-Scholes option valuation model and re-valued as of August 31, 2020 using the following assumptions: Expected life 4 years Risk-free rate 0.24% Volatility 35% Dividend yield 0.00% |
Segment Information and Infor_2
Segment Information and Information about Geographic Areas (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment, Net by Geographic Area | Property and equipment, net by geographic area are as follows: August 31, 2021 2020 United States $ 12,814 $ 15,715 All other 1,491 2,398 Total property and equipment, net $ 14,305 $ 18,113 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Aug. 31, 2021 | |
Selected Quarterly Financial Information [Abstract] | |
Summary of Quarterly Results of Operations (Unaudited) | Fiscal quarters ended August 31, 2021 May 31, 2021 February 28, 2021 November 30, 2020 Total revenue $ 70,854 $ 67,938 $ 62,652 $ 58,906 Total cost of revenue 29,764 27,750 27,542 25,030 Total gross profit 41,090 40,188 35,110 33,876 Loss from operations (4,128 ) (544 ) (6,448 ) (4,246 ) Net loss (5,559 ) $ (357 ) $ (6,364 ) $ (4,651 ) Loss per share - basic and diluted $ (0.04 ) $ — $ (0.05 ) $ (0.04 ) |
Nature of Business - Additional
Nature of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 14, 2020 | Aug. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Net proceeds | $ 433,657 | |
Initial Public Offering | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Shares of common stock sold | 17,250,000 | |
Public offering price | $ 27 | |
Net proceeds | $ 429,200 | |
Initial Public Offering | Equity Awards of Certain International Employees | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Payments for equity awards | 6,700 | |
Initial Public Offering | Redeem all of Outstanding LP Units of Operating Partnership | Accenture plc (Accenture) and RBW Investment GmbH & Co. (RBW) | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Redemption of outstanding LP Units | 43,100 | |
Initial Public Offering | Repurchase Portion of Shares | Apax | Reorg Merger | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Repurchase of shares | $ 64,700 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Aug. 31, 2021USD ($)customerReportingUnit | Aug. 31, 2020USD ($)customer | Aug. 31, 2019USD ($)customer | Sep. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Total lease liability | $ 25,383,000 | $ 25,350,000 | $ 26,700,000 | |
Deferred rent liability | 5,700,000 | |||
Operating lease assets | 17,798,000 | 18,171,000 | $ 21,000,000 | |
Unbilled revenue balance | 18,000,000 | 15,200,000 | $ 11,000,000 | |
Contract with customer, liability, revenue recognized | 28,300,000 | 22,800,000 | 16,200,000 | |
Revenue remaining performance obligations | $ 499,400,000 | |||
Typical benefit period of contracts | 8 years | |||
Restricted cash and cash equivalents | 0 | 0 | ||
Allowance for doubtful accounts | $ 1,400,000 | $ 400,000 | ||
Number of reporting unit for annual impairment evaluation | ReportingUnit | 1 | |||
Nature of goodwill impairment test | two-step | |||
Goodwill impairment losses | $ 0 | |||
Impairments of long-lived assets | $ 0 | $ 0 | ||
Revenue from Contract with Customer | Concentration of Credit Risk | Customer One | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, number of customer | customer | 0 | 0 | ||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | |
Revenue from Contract with Customer | Concentration of Credit Risk | Customer Two | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, number of customer | customer | 1 | 1 | ||
Concentration risk, percentage | 11.00% | 13.00% | ||
Accounts Receivable | Concentration of Credit Risk | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, number of customer | customer | 0 | 0 | ||
Accounts Receivable | Concentration of Credit Risk | Customer One | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, number of customer | customer | 1 | 2 | ||
Concentration risk, percentage | 11.00% | 13.00% | ||
Accounts Receivable | Concentration of Credit Risk | Customer Two | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, number of customer | customer | 2 | |||
Concentration risk, percentage | 12.00% | |||
Accenture | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Service revenue accounted from related party, percent | 1.00% | 2.00% | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Subscription arrangements term | 3 years | |||
Long term investment maturity | 1 year | |||
Operating lease of term | 1 year | |||
Minimum | Accounts Receivable | Concentration of Credit Risk | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Minimum | Unbilled Revenue | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Unbilled revenue term of contract | 2 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Subscription arrangements term | 7 years | |||
Contract cost, assets amortization period | 1 year | |||
Highly liquid investments maturity period | 90 days | |||
Accounts receivable invoices due period | 30 days | |||
Short term investment maturity | 1 year | |||
Business combinations, measurement period | 1 year | |||
Maximum | Accenture | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Service revenue accounted from related party, percent | 1.00% | |||
Maximum | Unbilled Revenue | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Unbilled revenue term of contract | 6 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | $ 70,854 | $ 67,938 | $ 62,652 | $ 58,906 | $ 260,350 | $ 211,672 | $ 171,273 |
United States | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | 238,912 | 200,373 | 162,585 | ||||
All Other | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Total revenue | $ 21,438 | $ 11,299 | $ 8,688 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information 1 (Details) $ in Millions | Aug. 31, 2021USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |
Revenue remaining performance obligations | $ 499.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-09-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligations | $ 156.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-09-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue remaining performance obligations | $ 343.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Aug. 31, 2021 | |
Computer Equipment and Purchased Software | |
Property Plant And Equipment [Line Items] | |
Property and equipment | 3 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property and equipment | 5 years |
Office Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment | 3 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property and equipment | Lesser of estimated useful life or life of lease |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Oct. 17, 2018 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2020 | Jan. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 272,455 | $ 272,455 | ||||
Payments to sellers | 1,923 | 3,556 | $ 2,350 | |||
Outline Systems LLC | ||||||
Business Acquisition [Line Items] | ||||||
Business combination date | Oct. 17, 2018 | |||||
Total consideration | $ 20,439 | |||||
Cash consideration | 9,814 | |||||
Contingent consideration, fair value | 8,600 | |||||
Acquired intangible assets | 3,800 | |||||
Goodwill | 16,823 | |||||
Payments to sellers | $ 10,300 | $ 1,923 | 2,798 | |||
Achievement of target level of sales value period subsequent to acquisition | 3 years | |||||
Outline Systems LLC | Technology | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | $ 1,000 | |||||
Useful life | 6 years | |||||
Outline Systems LLC | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets | $ 2,800 | |||||
Useful life | 14 years | |||||
Yodil,LLC | ||||||
Business Acquisition [Line Items] | ||||||
Payments to sellers | $ 2,350 | |||||
Cumulative earnout payment to sellers | $ 5,300 | |||||
CedeRight Products | ||||||
Business Acquisition [Line Items] | ||||||
Payments to sellers | $ 758 | |||||
Cumulative earnout payment to sellers | $ 800 | |||||
Class C Units | Outline Systems LLC | ||||||
Business Acquisition [Line Items] | ||||||
Units issued in connection with business combination | $ 2,000 |
Business Combinations - Summary
Business Combinations - Summary of Consideration at Fair Value (Details) - USD ($) $ in Thousands | Oct. 17, 2018 | Aug. 31, 2019 |
Business Acquisition [Line Items] | ||
Estimated fair value of contingent consideration | $ 9,675 | |
Outline Systems LLC | ||
Business Acquisition [Line Items] | ||
Cash paid at closing | $ 9,814 | |
Estimated fair value of contingent consideration | 8,600 | 8,600 |
Consideration at fair value | 20,439 | |
Class C Units | ||
Business Acquisition [Line Items] | ||
Fair value of Class C Units | $ 2,025 | |
Class C Units | Outline Systems LLC | ||
Business Acquisition [Line Items] | ||
Fair value of Class C Units | $ 2,025 |
Business Combinations - Summa_2
Business Combinations - Summary of Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 | Oct. 17, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 272,455 | $ 272,455 | |
Outline Systems LLC | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 824 | ||
Unbilled receivables | 69 | ||
Intangible assets | 3,800 | ||
Goodwill | 16,823 | ||
Other assets | 299 | ||
Total assets acquired | 21,815 | ||
Accrued liabilities and accounts payable | (641) | ||
Deferred revenue | (695) | ||
Other liabilities | (40) | ||
Total liabilities assumed | (1,376) | ||
Acquisition consideration paid | $ 20,439 |
Business Combinations - Schedul
Business Combinations - Schedule of Changes in Fair Value of Contingent Earnout Liability (Details) - USD ($) $ in Thousands | Oct. 17, 2018 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Business Acquisition Contingent Consideration [Line Items] | ||||
Beginning balance | $ 7,092 | $ 10,515 | $ 2,562 | |
Acquisition date fair value | 9,675 | |||
Change in fair value of contingent consideration | 293 | 133 | 628 | |
Payments to sellers | (1,923) | (3,556) | (2,350) | |
Ending balance | 5,462 | 7,092 | 10,515 | |
Yodil,LLC | ||||
Business Acquisition Contingent Consideration [Line Items] | ||||
Beginning balance | 2,562 | |||
Change in fair value of contingent consideration | (212) | |||
Payments to sellers | (2,350) | |||
Outline Systems LLC | ||||
Business Acquisition Contingent Consideration [Line Items] | ||||
Beginning balance | 7,092 | 9,440 | ||
Acquisition date fair value | $ 8,600 | 8,600 | ||
Change in fair value of contingent consideration | 293 | 450 | 840 | |
Payments to sellers | $ (10,300) | (1,923) | (2,798) | |
Ending balance | $ 5,462 | 7,092 | 9,440 | |
CedeRight Products | ||||
Business Acquisition Contingent Consideration [Line Items] | ||||
Beginning balance | 1,075 | |||
Acquisition date fair value | 1,075 | |||
Change in fair value of contingent consideration | (317) | |||
Payments to sellers | $ (758) | |||
Ending balance | $ 1,075 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Available-for-Sale Investments within Cash Equivalents and Short-term Investments (Details) - USD ($) | Aug. 31, 2021 | Aug. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 191,917,000 | |
Unrealized Gains | 64,000 | |
Estimated Fair Value | 191,981,000 | $ 0 |
U S Government Agency Securities | Short Term Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 191,917,000 | |
Unrealized Gains | 64,000 | |
Estimated Fair Value | $ 191,981,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 12 Months Ended | ||
Aug. 31, 2021USD ($)Maturity | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Sales of securities | $ 0 | ||
Maturities of securities | Maturity | 4 | ||
Available-for-sale investment | $ 191,981,000 | $ 0 | |
Fair Value Measurements Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on recurring basis | $ 191,981,000 | $ 0 | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Assets: | |||
Total assets | $ 191,981,000 | $ 0 | $ 0 |
Liabilities: | |||
Total liabilities | 8,498,000 | 15,792,000 | |
Level 1 | |||
Liabilities: | |||
Total liabilities | 1,448,000 | 7,821,000 | |
Level 2 | |||
Assets: | |||
Total assets | 191,981,000 | ||
Level 3 | |||
Liabilities: | |||
Total liabilities | 7,050,000 | 7,971,000 | |
Liability Classified Awards | |||
Liabilities: | |||
Total liabilities | 3,036,000 | 8,700,000 | |
Liability Classified Awards | Level 1 | |||
Liabilities: | |||
Total liabilities | 1,448,000 | 7,821,000 | |
Liability Classified Awards | Level 3 | |||
Liabilities: | |||
Total liabilities | 1,588,000 | 879,000 | |
Contingent Earnout Liability | |||
Liabilities: | |||
Total liabilities | 5,462,000 | 7,092,000 | |
Contingent Earnout Liability | Level 3 | |||
Liabilities: | |||
Total liabilities | 5,462,000 | $ 7,092,000 | |
U S Government Agency Securities | Short Term Investments | |||
Assets: | |||
Total assets | 191,981,000 | ||
U S Government Agency Securities | Level 2 | Short Term Investments | |||
Assets: | |||
Total assets | $ 191,981,000 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in the Estimated Fair Value of the Company's Level 3 Categorized Liability Classified Awards (Details) - Level 3 $ in Thousands | 12 Months Ended |
Aug. 31, 2021USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance as of August 31, 2020 | $ 879 |
Net change in the fair value | 709 |
Balance as of August 31, 2021 | $ 1,588 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Directors and officers insurance | $ 5,515 | $ 5,355 |
Computer, software, and licenses | 5,861 | 2,603 |
Other | 3,005 | 4,228 |
Total prepaid expenses and other current assets | $ 14,381 | $ 12,186 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 26,562 | $ 25,489 |
Less accumulated depreciation and amortization | (12,257) | (7,376) |
Property and equipment, net | 14,305 | 18,113 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 10,572 | 11,216 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 8,230 | 7,304 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 4,849 | 4,310 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 2,304 | 2,181 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 496 | $ 478 |
Assets Under Construction | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 111 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Property Plant And Equipment [Line Items] | |||
Depreciation of property and equipment | $ 3,136 | $ 3,143 | $ 2,398 |
Internal-Use Software | |||
Property Plant And Equipment [Line Items] | |||
Capitalized property and equipment useful life | 3 years | ||
Amortization expense | $ 2,000 | $ 700 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
May 31, 2021 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Leases [Abstract] | ||||
Operating lease, description | The Company’s lease obligations consist of operating leases for domestic and international office facilities with lease periods expiring between fiscal years 2021 and 2029. | |||
Lease option to renew description | Some leases include one or more options to renew. | |||
Operating lease expense | $ 4,500 | $ 4,600 | ||
Short term lease expense | 300 | 300 | ||
Total lease expense | 4,800 | 4,900 | ||
Rent expense | $ 4,400 | |||
Impairment | 2,600 | 2,800 | ||
Right of use assets | 1,900 | 1,700 | ||
Leasehold improvements impairment | $ 702 | $ 1,132 | ||
Gain on derecognition of lease liability from sublease transaction | $ 500 |
Leases - Summary of Future Oper
Leases - Summary of Future Operating Lease Payments (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 | Sep. 01, 2019 |
Leases [Abstract] | |||
2022 | $ 5,112 | ||
2023 | 5,062 | ||
2024 | 5,083 | ||
2025 | 4,648 | ||
Thereafter | 8,813 | ||
Total future lease payments | 28,718 | ||
Less imputed interest | (3,335) | ||
Total lease liability balance | $ 25,383 | $ 25,350 | $ 26,700 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 | Sep. 01, 2019 |
Leases [Abstract] | |||
Operating lease assets | $ 17,798 | $ 18,171 | $ 21,000 |
Current portion of lease liabilities | 4,110 | 3,611 | |
Non-current portion of lease liabilities | 21,273 | 21,739 | |
Total lease liabilities | $ 25,383 | $ 25,350 | $ 26,700 |
Weighted average remaining lease term (years) | 5 years 2 months | 7 years 1 month | |
Weighted average discount rate | 4.20% | 4.40% |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Cash and Non-cash Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Leases [Abstract] | ||
Cash payments for operating leases | $ 4,056 | $ 4,604 |
Operating lease assets obtained in exchange for lease liabilities | $ 1,271 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill, carrying amount | $ 272,455 | $ 272,455 | |
Amortization of intangible assets from acquisition | $ 16,300 | $ 17,100 | $ 17,600 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 152,035 | $ 152,035 |
Accumulated amortization | 86,676 | 70,348 |
Net carrying amount | 65,359 | 81,687 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 103,600 | 103,600 |
Accumulated amortization | 51,815 | 41,535 |
Net carrying amount | $ 51,785 | $ 62,065 |
Weighted average remaining life | 5 years 3 months | 6 years 5 months |
Acquired Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 32,235 | $ 32,235 |
Accumulated amortization | 23,509 | 18,785 |
Net carrying amount | $ 8,726 | $ 13,450 |
Weighted average remaining life | 1 year 8 months | 3 years |
Trademarks and Tradenames | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 9,400 | $ 9,400 |
Accumulated amortization | 4,778 | 3,838 |
Net carrying amount | $ 4,622 | $ 5,562 |
Weighted average remaining life | 4 years 8 months | 6 years |
Domain Name | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 100 | $ 100 |
Accumulated amortization | 50 | 40 |
Net carrying amount | $ 50 | $ 60 |
Weighted average remaining life | 4 years 8 months | 6 years |
Backlog | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 6,700 | $ 6,700 |
Accumulated amortization | 6,524 | 6,150 |
Net carrying amount | $ 176 | $ 550 |
Weighted average remaining life | 8 months | 2 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Estimated Future Amortization of Purchased Intangible Assets (Details) $ in Thousands | Aug. 31, 2021USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2022 | $ 15,793 |
2023 | 15,225 |
2024 | 11,453 |
2025 | 11,307 |
2026 and thereafter | 11,581 |
Total | $ 65,359 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Reconciliation of Numerator and Denominator Used to Compute Basic Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | ||||
Numerator | ||||||||||
Net loss | $ (5,559) | $ (357) | $ (6,364) | $ (4,651) | $ (16,931) | $ (29,932) | $ (16,896) | |||
Net loss attributable to the Operating Partnership before the Reorganization Transactions | (5,598) | |||||||||
Net loss attributable to Duck Creek Technologies, Inc. | $ (24,334) | |||||||||
Denominator | ||||||||||
Weighted average shares of common stock, basic and diluted | [1] | 131,114,791 | 130,702,511 | |||||||
Net loss per share of common stock, basic and diluted | $ (0.04) | $ (0.05) | $ (0.04) | $ (0.13) | [1] | $ (0.19) | [1] | |||
[1] | 1) Net loss per share information for fiscal 2020 represents the net loss per share of common stock outstanding for the period from August 14, 2020 through August 31, 2020, the period following the Reorganization Transactions and Duck Creek Technologies, Inc.'s initial public offering described in Note 1—Nature of Business. See Note 9—Net Loss Per Share for additional details. |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 13, 2020 | |
Earnings Per Share [Abstract] | |||
Common stock, shares outstanding | 132,000,317 | 130,713,745 | 0 |
Number of shares excluded from the computation of diluted weighted-average shares of common stock outstanding | 3,022,585 | 4,594,242 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Other Assets [Abstract] | ||
Deferred contract costs | $ 14,056 | $ 12,440 |
Other noncurrent assets | 5,357 | 3,863 |
Total other assets | $ 19,413 | $ 16,303 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Other Assets [Abstract] | |||
Amortization of deferred contract costs | $ 2,100,000 | $ 1,500,000 | $ 700,000 |
Impairment loss of costs capitalized | $ 0 | $ 0 | $ 0 |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Credit Losses - Summary of Accounts Receivable,Net (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Accounts Receivable Net [Abstract] | ||
Accounts receivable | $ 36,054 | $ 29,504 |
Allowance for credit losses | (1,425) | (355) |
Accounts receivable, net | $ 34,629 | $ 29,149 |
Accounts Receivable and Allow_4
Accounts Receivable and Allowance for Credit Losses - Schedule of Changes to the Allowance for Credit Losses (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2021USD ($) | |
Allowance For Doubtful Accounts Receivable Rollforward | |
Allowance, August 31, 2020 | $ (355) |
Net changes to credit losses | (1,105) |
Write-offs, net | 35 |
Allowance, August 31, 2021 | $ (1,425) |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Accrued bonuses | $ 18,831 | $ 18,175 |
Accrued hosting fees | 7,500 | 11,890 |
Accrued vacation | 5,572 | 7,560 |
Accrued commissions | 1,429 | 2,269 |
Accrued professional service fees | 369 | 1,910 |
Liability-classified phantom units and SARs | 3,036 | 8,700 |
Accrued withholding taxes | 2,771 | 731 |
Other | 6,929 | 6,967 |
Total accrued liabilities | $ 46,437 | $ 58,202 |
Credit Facility - Additional In
Credit Facility - Additional Information (Details) - Revolving Credit Facility - USD ($) | Oct. 22, 2021 | Oct. 02, 2019 | Oct. 01, 2019 | Aug. 31, 2021 | Oct. 21, 2021 | Aug. 31, 2020 |
Line Of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | |||||
Line of credit facility, maturity date | Oct. 2, 2021 | Oct. 4, 2019 | ||||
Unused credit facility fee | 0.50% | |||||
Line of credit facility, interest rate description | Interest accrues on the revolving credit facility at a variable rate based upon the type of borrowing made by the Company. Borrowings can either incur interest at a rate of LIBOR plus an applicable margin, or incur interest at the higher of: (i) the Prime Rate, (2) the Fed Funds Rate plus 0.5%, or (3) LIBOR plus 1.0%, plus an applicable margin. The applicable margin ranges from 2.0% to 3.0% depending on the interest rate basis and type of borrowing elected. | |||||
Line of credit facility, covenant terms | The Company is required to meet certain financial and nonfinancial covenants under the terms of the revolving credit facility. These covenants include limits on the creation of liens, limits on making certain investments, limits on incurring additional indebtedness, maintaining a minimum level of consolidated EBITDA, and maintaining a leverage ratio at or below a maximum level. | |||||
Line of credit facility, covenant compliance | The Company was in compliance with these financial and nonfinancial covenants as of August 31, 2021. | |||||
Line of credit facility, outstanding amount | $ 0 | $ 0 | ||||
Letters of credit outstanding amount | $ 900,000 | $ 1,000,000 | ||||
Subsequent Event | ||||||
Line Of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 45,000,000 | $ 30,000,000 | ||||
Line of credit facility, maturity date | Oct. 22, 2026 | |||||
Fed Funds Rate | ||||||
Line Of Credit Facility [Line Items] | ||||||
Borrowings variable interest rate | 0.50% | |||||
LIBOR | ||||||
Line Of Credit Facility [Line Items] | ||||||
Borrowings variable interest rate | 1.00% | |||||
Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Borrowings variable interest rate | 2.00% | |||||
Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Borrowings variable interest rate | 3.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 22, 2017 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Tax Credit Carryforward [Line Items] | ||||
Federal statutory income tax rate | 35.00% | 21.00% | 21.00% | 21.00% |
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 6,300,000 | $ 5,900,000 | ||
Change in uncertain tax positions | $ 0 | $ 0 | ||
Minimum | ||||
Tax Credit Carryforward [Line Items] | ||||
Period of statute limitation for jurisdiction | 3 years | |||
Maximum | ||||
Tax Credit Carryforward [Line Items] | ||||
Period of statute limitation for jurisdiction | 7 years | |||
U.S. Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | $ 85,300,000 | |||
Operating loss carryforwards with no expiration | 49,500,000 | |||
U.S. Federal | Research and Development Credit | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 3,800,000 | |||
U.S. State | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 56,600,000 | |||
U.S. State | Research and Development Credit | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 700,000 | |||
U.S. State | Investment Tax Credit | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 200,000 | |||
Foreign | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | $ 12,900,000 |
Income Taxes - Summary of Loss
Income Taxes - Summary of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (21,193) | $ (32,593) | $ (18,196) |
Foreign | 6,158 | 4,223 | 2,450 |
Loss before income taxes | $ (15,035) | $ (28,370) | $ (15,746) |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Current: | |||
State | $ 174 | $ 97 | $ 54 |
Foreign | 1,059 | 896 | 908 |
Total current tax expense | 1,233 | 993 | 962 |
Deferred: | |||
Federal | (8) | ||
State | (18) | ||
Foreign | 663 | 569 | 214 |
Total deferred tax (benefit) expense | 663 | 569 | 188 |
Total provision for income taxes | $ 1,896 | $ 1,562 | $ 1,150 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Differences Between Income Taxes Computed at U.S. Federal Statutory Rate and Provision for Income Taxes (Details) | Dec. 22, 2017 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Income Tax Disclosure [Abstract] | ||||
Expected income tax% | 35.00% | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefit | (0.90%) | (0.50%) | 1.20% | |
Permanent differences | (0.80%) | 0.80% | (1.30%) | |
Share-based compensation | 4.70% | (2.00%) | (2.80%) | |
Non-deductible officer's compensation | (2.40%) | (2.10%) | ||
Federal research and development credits | 9.40% | 2.10% | 0.60% | |
Foreign rate differential | (3.70%) | (2.10%) | (3.90%) | |
Change in valuation allowance | (39.90%) | (22.70%) | (22.10%) | |
Total income tax expense% | (12.60%) | (5.50%) | (7.30%) |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Assets: | ||
Net operating loss carryforward | $ 23,681 | $ 18,640 |
Intangible assets | 24,571 | 25,868 |
Tax credits | 4,496 | 2,885 |
Other nondeductible expenses | 10,931 | 9,106 |
Share-based compensation | 2,520 | 4,731 |
Interest expense carryforward | 132 | 132 |
Lease liabilities | 4,780 | 5,701 |
Other | 414 | |
Gross deferred tax assets | 71,525 | 67,063 |
Less valuation allowance | (59,207) | (52,956) |
Total deferred tax assets | 12,318 | 14,107 |
Liabilities: | ||
Deferred revenue | (1,564) | |
Intangible assets | (1,651) | (1,809) |
Operating lease assets | (3,094) | (3,916) |
Capitalized items | (5,019) | (4,887) |
Depreciation | (858) | (897) |
Total deferred tax liabilities | (10,622) | (13,073) |
Total net deferred tax assets | $ 1,696 | $ 1,034 |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation of Unrecognized Income Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 395,000 | $ 395,000 |
No change - current year and prior year tax positions | 0 | 0 |
Ending Balance | $ 395,000 | $ 395,000 |
Redeemable Partners' Interest_2
Redeemable Partners' Interest and Partners' Capital and Stockholders' Equity - Summary of Units of Partnership, Authorized, Issued and Outstanding (Details) - Amended and Restated Agreement of Exempted Limited Partnership Agreement (Partnership Agreement) | Aug. 13, 2020shares |
Class A | |
Capital Unit [Line Items] | |
Authorized | 5,000,000,000 |
Issued and outstanding | 183,354,104 |
Class B | |
Capital Unit [Line Items] | |
Authorized | 5,000,000,000 |
Issued and outstanding | 122,236,021 |
Class C | |
Capital Unit [Line Items] | |
Authorized | 5,000,000,000 |
Issued and outstanding | 3,660,106 |
Class D | |
Capital Unit [Line Items] | |
Authorized | 59,247,586 |
Issued and outstanding | 47,170,961 |
Class E | |
Capital Unit [Line Items] | |
Authorized | 129,828,398 |
Issued and outstanding | 129,828,398 |
Redeemable Partners' Interest_3
Redeemable Partners' Interest and Partners' Capital and Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Feb. 28, 2021 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 13, 2020 | Oct. 31, 2018 | |
Capital Unit [Line Items] | ||||||||
Non-controlling interests | $ 0 | |||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||||
Common stock, shares outstanding | 132,000,317 | 130,713,745 | 0 | |||||
Proceeds from follow-on offering, net of issuance costs, shares | 90,000 | |||||||
Proceeds from follow-on offering, net of issuance costs | $ 3,500 | $ 3,453 | ||||||
2020 Omnibus Incentive Plan | ||||||||
Capital Unit [Line Items] | ||||||||
Shares of common stock reserved for future issuance | 14,187,853 | |||||||
Class D | ||||||||
Capital Unit [Line Items] | ||||||||
Units outstanding | 47,170,961 | |||||||
Units unvested | 27,356,428 | |||||||
Class C | ||||||||
Capital Unit [Line Items] | ||||||||
Units issued | 1,500,000 | |||||||
Aggregate fair value of units | $ 2,000 | |||||||
Class E | ||||||||
Capital Unit [Line Items] | ||||||||
Units issued | 41,412,296 | |||||||
Cash consideration | $ 120,000 | |||||||
Aggregate issuance costs | $ 11,400 | |||||||
Class A | ||||||||
Capital Unit [Line Items] | ||||||||
Units redeemed | 30,362,073 | 18,133,278 | 20,292,029 | |||||
Units held by general partner | 100 | |||||||
Class B | ||||||||
Capital Unit [Line Items] | ||||||||
Units redeemed | 20,241,374 | 12,088,848 | 13,528,013 | |||||
Class A Units and Class B Units | ||||||||
Capital Unit [Line Items] | ||||||||
Cash consideration | $ 199,900 | $ 100 | $ 98,000 | |||||
Class E Preferred Units | ||||||||
Capital Unit [Line Items] | ||||||||
Units issued | 58,193,976 | 30,222,126 | ||||||
Proceeds from issuance of Class E Units, net of issuance costs | $ 230,000 | $ 100 | ||||||
Class A Units, Class B Units, Class C Units, and Class E Units | ||||||||
Capital Unit [Line Items] | ||||||||
Distribution percentage in proportion to unreturned capital amounts | 100.00% |
Redeemable Partners' Interest_4
Redeemable Partners' Interest and Partners' Capital and Stockholders' Equity - Summary of Units of Partnership Converted (Details) | 12 Months Ended |
Aug. 31, 2021shares | |
Capital Unit [Line Items] | |
Units Held Pre-IPO | 458,893,162 |
Converted Shares Post-IPO | 115,996,833 |
Class A | |
Capital Unit [Line Items] | |
Units Held Pre-IPO | 183,354,104 |
Converted Shares Post-IPO | 45,838,526 |
Class B | |
Capital Unit [Line Items] | |
Units Held Pre-IPO | 122,236,021 |
Converted Shares Post-IPO | 28,855,284 |
Class C | |
Capital Unit [Line Items] | |
Units Held Pre-IPO | 3,660,106 |
Converted Shares Post-IPO | 915,027 |
Class D | |
Capital Unit [Line Items] | |
Units Held Pre-IPO | 19,814,533 |
Converted Shares Post-IPO | 7,930,897 |
Class E | |
Capital Unit [Line Items] | |
Units Held Pre-IPO | 129,828,398 |
Converted Shares Post-IPO | 32,457,100 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | Feb. 02, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Aug. 14, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | Feb. 28, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Vesting terms | These vesting terms applied to each of the Class D‑1, Class D‑2 and Class D‑3 tranches described above. Class D‑1 Units would become participating units upon the later of: (i) the date which aggregate distributions by the Company exceeded the minimum threshold equity value (as defined in each Incentive Unit Award Agreement), or (ii) when the total cumulative distributions made to the Class A Unit holders exceeded the aggregate investment made by the Class A Unit holders. Class D‑2 and D‑3 Units would become participating units upon the later of: (i) the date which aggregate distributions by the Company exceeded the minimum threshold equity value (as defined in each Incentive Unit Award Agreement), or (ii) when the total cumulative distributions made to the Class A Unit holders exceeded either three times (Class D‑2 Units) or four times (Class D‑3 Units) the aggregate investment made by the Class A Unit holders. | |||||||
Share-based compensation expense | $ 12,877,000 | $ 21,108,000 | $ 2,070,000 | |||||
Share based compensation expense not yet recognized | $ 600,000 | |||||||
Time Based Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Units vesting percentage | 50.00% | |||||||
Participating Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Units vesting percentage | 50.00% | |||||||
2020 Omnibus Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares of common stock reserved for future issuance | 14,187,853 | |||||||
Share-based compensation arrangement by Share-based payment award common stock issued and outstanding percent | 4.00% | |||||||
Common stock reserved for issuance description | The maximum number of shares of the Company’s common stock reserved for issuance under the Plan is 18,000,000 shares. This reserve will automatically increase on January 1st of each calendar year, prior to the tenth anniversary of the effective date of the Plan, by an amount equal or lesser of (i) 4% of the number of shares of common stock issued and outstanding on December 31st of the preceding year and (ii) an amount determined by the Plan administrator. | |||||||
Share-based compensation arrangement by Share-based payment award common stock issued and outstanding increased percentage | 4.00% | |||||||
Common stock shares reserved for issuance added to reserve | 5,337,790 | |||||||
2020 Omnibus Incentive Plan | Maximum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares of common stock reserved for future issuance | 18,000,000 | |||||||
Phantom Unit | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting terms | The terms of the Phantom Unit awards were similar to the Class D Unit awards; however, they did not represent ownership of any class unit of the Company. The Phantom Units vested and became participating units in similar fashion to the Class D Units as described above. The holder of a vested and participating Phantom Unit was eligible to receive a distribution in the same form and consideration as a Class D Unit holder, however, only upon a change in control event. Upon receiving the distribution, the Phantom Units would cease to be outstanding. | |||||||
Converted shares | 1,894,063 | |||||||
Conversion of stock awards | 1,236,406 | |||||||
Class D Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Converted shares | 47,170,961 | |||||||
Conversion of stock awards | 27,356,428 | |||||||
Class D Restricted Common Stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Converted shares | 9,785,895 | |||||||
Vested | 7,930,897 | |||||||
Unvested | 1,854,998 | |||||||
Share-based compensation expense | $ 0 | |||||||
Phantom Stock Awards | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Converted shares | 373,581 | |||||||
Class D-1 Phantom Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense and accrued liability | $ 6,600,000 | |||||||
Class D Phantom Stock Awards | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 2,800,000 | 1,200,000 | ||||||
Share-based compensation expense and accrued liability | $ 1,200,000 | |||||||
Conversion of stock awards | 126,289 | |||||||
Accrued liability | $ 1,500,000 | $ 1,200,000 | ||||||
Leverage Restoration Options | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 10,500,000 | |||||||
Conversion of stock awards | 1,802,216 | |||||||
Unrecognized share-based compensation expense recognition period | 2 years | |||||||
Contractual term | 4 years | |||||||
Unrecognized share-based compensation expense | $ 1,300,000 | |||||||
Closing stock price | $ 46.63 | $ 38.99 | ||||||
Leverage Restoration Options | Class D Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Exercise price | $ 27 | |||||||
Contractual term | 10 years | |||||||
Leverage Restoration SARs | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 900,000 | |||||||
Conversion of stock awards | 91,762 | |||||||
Class D Restricted Common Stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unrecognized share-based compensation expense | $ 700,000 | |||||||
Unrecognized share-based compensation expense recognition period | 2 years | |||||||
Share based compensation expense not yet recognized | $ 700,000 | |||||||
Leverage Restoration Stock Appreciation Rights (“SARs”) | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Exercise price | $ 27 | |||||||
Share based compensation, Contractual term | 10 years | |||||||
SAR | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense and accrued liability | $ 700,000 | $ 900,000 | ||||||
Contractual term | 4 years | |||||||
Closing stock price | $ 46.63 | $ 38.99 | ||||||
Accrued liability | $ 1,600,000 | |||||||
RSAs and RSUs | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Share-based compensation expense | $ 6,800,000 | $ 300,000 | ||||||
MOIC | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 1,200,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Class D Units and Phantom Units were Granted Percentage (Details) - Class D Units and Phantom Units | 12 Months Ended |
Aug. 31, 2021 | |
Class D-1 Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of units granted | 80.00% |
Class D-2 Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of units granted | 10.00% |
Class D-3 Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of units granted | 10.00% |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Class D Units Awards (Details) - Class D Units | 12 Months Ended |
Aug. 31, 2020shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance | 30,391,861 |
Granted | 3,420,000 |
Vested | (5,579,183) |
Forfeited | (876,250) |
Impact of conversion | (27,356,428) |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Phantom Unit Awards (Details) - Phantom Unit | 12 Months Ended |
Aug. 31, 2020shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance | 1,228,125 |
Granted | 350,000 |
Vested | (197,969) |
Forfeited | (143,750) |
Impact of conversion | (1,236,406) |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Class D Restricted Common Stock (Details) - Class D Restricted Common Stock | 12 Months Ended |
Aug. 31, 2021shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance | 1,832,873 |
Vested | (870,240) |
Forfeited | (198,660) |
Ending Balance | 763,973 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of Estimated Per Share Fair Value of Each Option Award on Grant Date Under the Black-Scholes Valuation Model (Details) | 12 Months Ended | |
Aug. 31, 2021 | Aug. 31, 2020 | |
Leverage Restoration Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life | 4 years | |
Risk-free rate | 0.24% | |
Volatility | 35.00% | |
Dividend yield | 0.00% | |
SAR | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life | 4 years | |
Risk-free rate | 0.24% | |
Volatility | 35.00% | |
Dividend yield | 0.00% |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary of Leverage Restoration Options (Details) - Leverage Restoration Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Aug. 31, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Balance | shares | 1,802,216 |
Exercised | shares | (150,559) |
Forfeited | shares | (48,605) |
Outstanding, Balance | shares | 1,603,052 |
Vested and expected to vest | shares | 1,603,052 |
Exercisable | shares | 1,374,332 |
Weighted Average Exercise Price, Balance | $ / shares | $ 27 |
Weighted Average Exercise Price, Exercised | $ / shares | 27 |
Weighted Average Exercise Price, Forfeited | $ / shares | 27 |
Weighted Average Exercise Price, Balance | $ / shares | 27 |
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | 27 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 27 |
Weighted Average Remaining Contractual Life, Outstanding | 9 years |
Weighted Average Remaining Contractual Life, Granted | 10 years |
Weighted Average Remaining Contractual Life, Vested and excepted to vest | 9 years |
Weighted Average Remaining Contractual Life, Exercisable | 9 years |
Outstanding, Aggregate Intrinsic Value | $ | $ 21,609 |
Aggregate Intrinsic Value, Exercised | $ | 3,025 |
Outstanding, Aggregate Intrinsic Value | $ | 31,468 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 31,468 |
Exercisable, Aggregate Intrinsic Value | $ | $ 26,978 |
Share-Based Compensation - Su_7
Share-Based Compensation - Summary of Class D Phantom Stock Awards (Details) - Class D Phantom Stock Awards | 12 Months Ended |
Aug. 31, 2021shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance | 98,400 |
Vested | (41,335) |
Forfeited | (11,019) |
Ending Balance | 46,046 |
Share-Based Compensation - Su_8
Share-Based Compensation - Summary of Outstanding Balance of SAR's (Details) - SAR $ / shares in Units, $ in Thousands | 12 Months Ended |
Aug. 31, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Balance | shares | 91,762 |
Exercised | shares | (1,260) |
Forfeited | shares | (1,879) |
Outstanding, Balance | shares | 88,623 |
Vested and expected to vest | shares | 88,623 |
Exercisable | shares | 64,607 |
Weighted Average Exercise Price, Balance | $ 27 |
Weighted Average Exercise Price, Granted | 0 |
Weighted Average Exercise Price, Exercised | 27 |
Weighted Average Exercise Price, Forfeited | 27 |
Weighted Average Exercise Price, Balance | 27 |
Weighted Average Exercise Price, Vested and expected to vest | 27 |
Weighted Average Exercise Price, Exercisable | $ 27 |
Weighted Average Remaining Contractual Life, Outstanding | 9 years |
Weighted Average Remaining Contractual Life, Granted | 10 years |
Weighted Average Remaining Contractual Life, Vested and excepted to vest | 9 years |
Weighted Average Remaining Contractual Life, Exercisable | 9 years |
Outstanding, Aggregate Intrinsic Value | $ | $ 1,100 |
Aggregate Intrinsic Value, Exercised | $ | 1,740 |
Outstanding, Aggregate Intrinsic Value | $ | 1,740 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 1,740 |
Exercisable, Aggregate Intrinsic Value | $ | $ 1,268 |
Share-Based Compensation - Su_9
Share-Based Compensation - Summary of RSAs and RSUs (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Aug. 31, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value, Balance | $ / shares | $ 27 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 43.96 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 27 |
Forfeited, Weighted Average Grant Date Fair value | $ / shares | 27 |
Weighted Average Grant Date Fair Value, Balance | $ / shares | $ 28.02 |
Aggregate Intrinsic Value, Balance | $ | $ 37,397 |
Aggregate Intrinsic Value, Balance | $ | $ 30,569 |
Restricted Stock Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance | 903,377 |
Granted | 38,422 |
Vested | (231,982) |
Forfeited | (90,434) |
Ending Balance | 619,383 |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance | 55,749 |
Granted | 1,158 |
Vested | (13,297) |
Forfeited | (7,433) |
Ending Balance | 36,177 |
Share-Based Compensation - S_10
Share-Based Compensation - Summary of Share-based Compensation Expense Recorded in Accompanying Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | $ 12,877 | $ 21,108 | $ 2,070 |
Subscription | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 429 | 415 | 21 |
Cost of Maintenance and Support Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 29 | 28 | 9 |
Cost of Services Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 2,708 | 4,683 | 122 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 1,992 | 4,128 | 398 |
Sales and Marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | 3,209 | 5,581 | 417 |
General and Administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense | $ 4,510 | $ 6,273 | $ 1,103 |
Segment Information and Infor_3
Segment Information and Information about Geographic Areas - Additional Information (Details) | 12 Months Ended |
Aug. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information and Infor_4
Segment Information and Information about Geographic Areas - Schedule of Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands | Aug. 31, 2021 | Aug. 31, 2020 |
Geographic Areas, Long-Lived Assets [Abstract] | ||
Total property and equipment, net | $ 14,305 | $ 18,113 |
United States | ||
Geographic Areas, Long-Lived Assets [Abstract] | ||
Total property and equipment, net | 12,814 | 15,715 |
All Other | ||
Geographic Areas, Long-Lived Assets [Abstract] | ||
Total property and equipment, net | $ 1,491 | $ 2,398 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Other Long-Term Liabilities | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Accrued obligation | $ 1.8 | $ 1.5 | |
401 (k) Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Discretionary contribution | $ 6.6 | $ 5.3 | $ 5 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Related Party Transaction [Line Items] | |||||||
Total revenue | $ 70,854 | $ 67,938 | $ 62,652 | $ 58,906 | $ 260,350 | $ 211,672 | $ 171,273 |
Revenue Contracts with Investors | |||||||
Related Party Transaction [Line Items] | |||||||
Total revenue | 31,200 | 18,700 | |||||
Deferred revenue | 4,100 | 4,100 | 6,400 | ||||
Accounts receivables due from related party | $ 5,000 | $ 5,000 | $ 7,900 | ||||
Accenture | Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Equity interest ownership percentage | 16.00% | 16.00% | 22.10% |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |||
Selected Quarterly Financial Information [Abstract] | |||||||||
Total revenue | $ 70,854 | $ 67,938 | $ 62,652 | $ 58,906 | $ 260,350 | $ 211,672 | $ 171,273 | ||
Total cost of revenue | 29,764 | 27,750 | 27,542 | 25,030 | 110,086 | 97,175 | 72,178 | ||
Total gross profit | 41,090 | 40,188 | 35,110 | 33,876 | 150,264 | 114,497 | 99,095 | ||
Loss from operations | (4,128) | (544) | (6,448) | (4,246) | (15,366) | (28,655) | (14,151) | ||
Net loss | $ (5,559) | $ (357) | $ (6,364) | $ (4,651) | $ (16,931) | $ (29,932) | $ (16,896) | ||
Net loss per share of common stock, basic and diluted | $ (0.04) | $ (0.05) | $ (0.04) | $ (0.13) | [1] | $ (0.19) | [1] | ||
[1] | 1) Net loss per share information for fiscal 2020 represents the net loss per share of common stock outstanding for the period from August 14, 2020 through August 31, 2020, the period following the Reorganization Transactions and Duck Creek Technologies, Inc.'s initial public offering described in Note 1—Nature of Business. See Note 9—Net Loss Per Share for additional details. |