Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document Document And Entity Information [Abstract] | |||
Entity Registrant Name | REALPAGE INC | ||
Entity Central Index Key | 1,286,225 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RP | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 93,590,150 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4,177,183,676 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 228,159 | $ 69,343 |
Restricted cash | 154,599 | 96,002 |
Accounts receivable, less allowances of $8,850 and $3,951 at December 31, 2018 and 2017, respectively | 123,596 | 124,505 |
Prepaid expenses | 19,214 | 12,107 |
Other current assets | 15,185 | 6,622 |
Total current assets | 540,753 | 308,579 |
Property, equipment, and software, net | 153,528 | 148,428 |
Goodwill | 1,053,119 | 751,052 |
Intangible assets, net | 287,378 | 252,337 |
Deferred tax assets, net | 42,602 | 44,887 |
Other assets | 20,393 | 11,010 |
Total assets | 2,097,773 | 1,516,293 |
Current liabilities: | ||
Accounts payable | 25,312 | 26,733 |
Accrued expenses and other current liabilities | 95,482 | 79,379 |
Current portion of deferred revenue | 120,704 | 116,622 |
Current portion of term loans | 16,133 | 14,116 |
Customer deposits held in restricted accounts | 154,601 | 96,057 |
Total current liabilities | 412,232 | 332,907 |
Deferred revenue | 4,902 | 5,538 |
Revolving facility | 0 | 50,000 |
Term loans, net | 287,582 | 303,261 |
Convertible notes, net | 292,843 | 281,199 |
Other long-term liabilities | 37,190 | 41,513 |
Total liabilities | 1,034,749 | 1,014,418 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value: 10,000,000 shares authorized and zero shares issued and outstanding at December 31, 2018 and 2017, respectively | 0 | 0 |
Common stock, $0.001 par value: 250,000,000 and 125,000,000 shares authorized, 95,991,162 and 87,153,085 shares issued and 93,650,127 and 83,180,401 shares outstanding at December 31, 2018 and 2017, respectively | 96 | 87 |
Additional paid-in capital | 1,187,683 | 637,851 |
Treasury stock, at cost: 2,341,035 and 3,972,684 shares at December 31, 2018 and 2017, respectively | (65,470) | (61,260) |
Accumulated deficit | (58,793) | (75,046) |
Accumulated other comprehensive (loss) income | (492) | 243 |
Total stockholders’ equity | 1,063,024 | 501,875 |
Total liabilities and stockholders’ equity | $ 2,097,773 | $ 1,516,293 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 8,850 | $ 3,951 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued, (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 250,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 95,991,162 | 87,153,085 |
Common stock, shares outstanding (in shares) | 93,650,127 | 83,180,401 |
Treasury stock (in shares) | 2,341,035 | 3,972,684 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total revenue | $ 869,480 | $ 670,963 | $ 568,128 |
Cost of revenue | 328,382 | 258,135 | 225,539 |
Amortization of product technologies | 35,797 | 22,163 | 17,669 |
Gross profit | 505,301 | 390,665 | 324,920 |
Operating expenses: | |||
Product development | 118,525 | 89,452 | 73,607 |
Sales and marketing | 166,607 | 140,473 | 122,457 |
General and administrative | 118,208 | 112,975 | 85,013 |
Amortization of intangible assets | 35,911 | 17,755 | 12,599 |
Total operating expenses | 439,251 | 360,655 | 293,676 |
Operating income | 66,050 | 30,010 | 31,244 |
Interest expense and other, net | (31,750) | (14,769) | (3,758) |
Income before income taxes | 34,300 | 15,241 | 27,486 |
Income tax (benefit) expense | (425) | 14,864 | 10,836 |
Net income | $ 34,725 | $ 377 | $ 16,650 |
Net income per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ 0.40 | $ 0 | $ 0.22 |
Diluted (in dollars per share) | $ 0.38 | $ 0 | $ 0.21 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 87,290 | 79,433 | 76,854 |
Diluted (in shares) | 91,531 | 82,398 | 77,843 |
On demand | |||
Total revenue | $ 833,709 | $ 642,622 | $ 542,531 |
Professional and other | |||
Total revenue | 35,771 | 28,341 | 25,597 |
Service | |||
Total revenue | $ 869,480 | $ 670,963 | $ 568,128 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 34,725 | $ 377 | $ 16,650 |
Unrealized gain on derivative instruments, net of tax | 61 | 318 | 400 |
Reclassification adjustment for (gains) losses included in earnings on derivative instruments, net of tax | (613) | (77) | 136 |
Foreign currency translation adjustment | (183) | 55 | (43) |
Other comprehensive (loss) income, net of tax | (735) | 296 | 493 |
Comprehensive income | $ 33,990 | $ 673 | $ 17,143 |
Consolidated Statements of Sto
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Treasury Stock |
Beginning Balance (in shares) at Dec. 31, 2015 | 82,919,000 | 4,125,000 | ||||
Beginning Balance at Dec. 31, 2015 | $ 326,452 | $ 83 | $ 471,668 | $ (546) | $ (120,415) | $ (24,338) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock option exercises (in shares) | 1,568,699 | 1,569,000 | ||||
Stock option exercises | $ 28,489 | $ 2 | 28,487 | |||
Issuance of restricted stock (in shares) | 2,587,000 | 0 | ||||
Issuance of restricted stock | 1 | $ 2 | (1) | $ 0 | ||
Treasury stock purchased, at cost (in shares) | 1,863,000 | |||||
Treasury stock purchased, at cost | (27,264) | $ (27,264) | ||||
Retirement of treasury stock (in shares) | (1,013,000) | (1,013,000) | ||||
Retirement of treasury stock | 0 | $ (1) | (5,748) | (15,495) | $ 21,244 | |
Stock-based compensation | 36,688 | 36,688 | ||||
Net tax benefit from stock-based compensation | 3,254 | 3,254 | ||||
Other comprehensive income - derivative instruments | 536 | 536 | ||||
Foreign currency translation | (43) | (43) | ||||
Net income | 16,650 | 16,650 | ||||
Ending Balance (in shares) at Dec. 31, 2016 | 86,062,000 | 4,975,000 | ||||
Ending Balance at Dec. 31, 2016 | $ 384,763 | $ 86 | 534,348 | (53) | (119,260) | $ (30,358) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock option exercises (in shares) | 1,344,569 | 991,000 | 354,000 | |||
Stock option exercises | $ 27,014 | $ 1 | 27,013 | |||
Issuance of restricted stock (in shares) | 100,000 | 1,795,000 | ||||
Issuance of restricted stock | 0 | (2) | $ 2 | |||
Treasury stock purchased, at cost (in shares) | 1,147,000 | |||||
Treasury stock purchased, at cost | (30,904) | $ (30,904) | ||||
Stock-based compensation | 46,146 | 46,146 | ||||
Other comprehensive income - derivative instruments | 241 | 241 | ||||
Foreign currency translation | 55 | 55 | ||||
Equity component of convertible notes, net of issuance costs and deferred tax | 61,390 | 61,390 | ||||
Purchases of convertible note hedges | (62,549) | (62,549) | ||||
Issuance of warrants | 31,499 | 31,499 | ||||
Net income | 377 | 377 | ||||
Ending Balance (in shares) at Dec. 31, 2017 | 87,153,000 | 3,973,000 | ||||
Ending Balance at Dec. 31, 2017 | 501,875 | $ 87 | 637,851 | 243 | (75,046) | $ (61,260) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Public offering of common stock, net of $16,949 of offering costs (in shares) | 8,050,000 | |||||
Public offering of common stock, net of $16,949 of offering costs | 441,901 | $ 8 | 441,893 | |||
Issuance of common stock in connection with our acquisitions (in shares) | 1,361,000 | |||||
Issuance of common stock in connection with our acquisitions | $ 75,150 | $ 2 | 75,148 | |||
Stock option exercises (in shares) | 658,564 | 27,000 | 632,000 | |||
Stock option exercises | $ 13,163 | 2,468 | $ 10,695 | |||
Issuance of restricted stock (in shares) | 0 | 1,807,000 | ||||
Issuance of restricted stock | 0 | $ 0 | (14,598) | $ 14,598 | ||
Treasury stock purchased, at cost (in shares) | 1,407,000 | |||||
Treasury stock purchased, at cost | (57,112) | 473 | $ (57,585) | |||
Retirement of treasury stock (in shares) | (600,000) | (600,000) | ||||
Retirement of treasury stock | $ (1) | (7,388) | (20,693) | $ 28,082 | ||
Stock-based compensation | 51,836 | 51,836 | ||||
Other comprehensive income - derivative instruments | (552) | (552) | ||||
Foreign currency translation | (183) | (183) | ||||
Net income | 34,725 | 34,725 | ||||
Ending Balance (in shares) at Dec. 31, 2018 | 95,991,000 | 2,341,000 | ||||
Ending Balance at Dec. 31, 2018 | $ 1,063,024 | $ 96 | $ 1,187,683 | $ (492) | $ (58,793) | $ (65,470) |
Consolidated Statements of S_2
Consolidated Statements of Stockholders' Equity Consolidated Statements of Stockholders' Equity Parenthetical (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Offering costs | $ 16,949 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 34,725 | $ 377 | $ 16,650 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 100,186 | 67,146 | 54,834 |
Amortization of debt discount and issuance costs | 12,464 | 7,296 | 443 |
Deferred taxes | (2,179) | 13,791 | 8,386 |
Stock-based expense | 50,641 | 45,835 | 36,852 |
Excess tax benefit from stock-based compensation | 0 | 0 | (5,998) |
Loss on disposal and impairment of long-lived assets | 6,733 | 524 | 1,247 |
Acquisition-related consideration | 284 | 684 | (877) |
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations: | |||
Accounts receivable | (717) | (18,821) | (12,239) |
Prepaid expenses and other current assets | (11,894) | 945 | 21,040 |
Other assets | (4,543) | (717) | (187) |
Accounts payable | 1,266 | 268 | 652 |
Accrued compensation, taxes, and benefits | 3,288 | 3,438 | 5,220 |
Deferred revenue | 3,478 | 17,114 | 4,452 |
Customer deposits | 57,230 | 3,055 | (6,834) |
Other current and long-term liabilities | (6,155) | (672) | 5,808 |
Net cash provided by operating activities | 244,807 | 140,263 | 129,449 |
Cash flows from investing activities: | |||
Purchases of property, equipment, and software | (50,933) | (49,752) | (75,241) |
Proceeds from disposal of property, equipment, and software | 0 | 0 | 4,500 |
Acquisition of businesses, net of cash and restricted cash acquired | (278,563) | (649,910) | (66,440) |
Purchase of other investments | (1,800) | (200) | (3,000) |
Net cash used in investing activities | (331,296) | (699,862) | (140,181) |
Cash flows from financing activities: | |||
Proceeds from term loans | 0 | 199,400 | 124,688 |
Payments on term loans | (14,116) | (3,551) | (2,345) |
Proceeds from revolving credit facility | 140,000 | 50,000 | 0 |
Payments on revolving credit facility | (190,000) | 0 | (40,000) |
Proceeds from borrowings on convertible notes | 0 | 345,000 | 0 |
Purchase of convertible senior note hedges | 0 | (62,549) | 0 |
Proceeds from issuance of warrants | 0 | 31,499 | 0 |
Payments of deferred financing costs | (1,136) | (10,734) | (392) |
Payments on capital lease obligations | (227) | (335) | (548) |
Payments of acquisition-related consideration | (28,388) | (8,491) | (5,684) |
Proceeds from public offering, net of underwriters’ discount and offering costs | 441,901 | 0 | 0 |
Proceeds from exercise of stock options | 13,163 | 27,014 | 28,490 |
Excess tax benefit from stock-based compensation | 0 | 0 | 5,998 |
Purchase of treasury stock related to stock-based compensation | (29,030) | (30,904) | (6,020) |
Purchase of treasury stock under share repurchase program | (28,082) | 0 | (21,244) |
Net cash provided by financing activities | 304,085 | 536,349 | 82,943 |
Net increase (decrease) in cash and cash equivalents | 217,596 | (23,250) | 72,211 |
Effect of exchange rate on cash | (183) | 55 | (43) |
Cash, cash equivalents and restricted cash: | |||
Beginning of period | 165,345 | 188,540 | 116,372 |
End of period | 382,758 | 165,345 | 188,540 |
Supplemental cash flow information: | |||
Cash paid for interest | 18,204 | 6,754 | 2,833 |
Cash paid for income taxes, net of refunds | 3,121 | 1,855 | 693 |
Non-cash investing and financing activities: | |||
Fair value of stock consideration in connection with our acquisitions | 53,334 | 0 | 0 |
Redemption of noncontrolling interest in connection with acquisition of ClickPay | 21,816 | 0 | 0 |
Accrued property, equipment, and software | 1,447 | 5,777 | 3,993 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | |||
Cash and cash equivalents | 228,159 | 69,343 | 104,886 |
Restricted cash | 154,599 | 96,002 | 83,654 |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ 165,345 | $ 188,540 | $ 116,372 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company RealPage, Inc., a Delaware corporation (together with its subsidiaries, the “Company” or “we” or “us”), is a leading global provider of software and data analytics to the real estate industry. Our platform of data analytics and software solutions enables the rental real estate industry to manage property operations (such as marketing, pricing, screening, leasing, and accounting), identify opportunities through market intelligence, and obtain data-driven insight for better operational and financial decision-making. Our integrated, on demand platform provides a single point of access and a massive repository of real-time lease transaction data, including prospect, renter, and property data. By leveraging data as well as integrating and streamlining a wide range of complex processes and interactions among the rental real estate ecosystem (owners, managers, prospects, renters, service providers, and investors), our platform helps our clients improve financial and operational performance and prudently place and harvest capital. During May 2018 and as disclosed in our Form 10-Q for the quarter ended March 31, 2018, we were the subject of a targeted email phishing campaign that led to a business email compromise, pursuant to which an unauthorized party gained access to an external third party system used by a subsidiary that we acquired in 2017. The incident resulted in the diversion of approximately $6.0 million , net of recovered funds, intended for disbursement to three clients. We immediately restored all funds to the client accounts. During the quarter ended June 30, 2018, we remediated the material weakness that gave rise to the incident and implemented additional preventive and detective control procedures. We maintain insurance coverage to limit our losses related to criminal and network security events. During January 2019, we received approximately $1.0 million from our primary insurance carrier as a partial repayment toward our losses from the business email compromise. We are currently involved in discussions with our insurance carrier regarding coverage of the remaining losses, and intend to vigorously pursue repayment of these losses. Due to the ongoing discussions with our insurance carrier and the uncertainty regarding timing and full collectability of the loss, we recorded an allowance of $5.0 million for the remaining amount of the loss, which is included in the line “General and administrative” in the accompanying Consolidated Statements of Operations. For the year ended December 31, 2018, total charges from the phishing incident included in our Consolidated Statements of Operations was $5.4 million for losses and related expenses that are not probable of recovery. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements and footnotes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of RealPage, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Effective with the quarter ended September 30, 2018, we changed the presentation of our Consolidated Statements of Operations to add “Amortization of product technologies” and “Amortization of intangible assets” as separate line items within such statements. Amounts shown as amortization of product technologies were previously included within “Cost of revenue”, and amounts shown as amortization of intangible assets were previously included within the “Sales and marketing” operating expense category. We believe this revised presentation helps readers of our financial statements isolate non-cash amortization expenses that arise from our acquisitions and internally developed software. Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. Correction of an Immaterial Error in Previously Issued Financial Statements In the third quarter of 2018, we identified an error related to the misclassification of amortization expense related to intangible assets on certain acquired technologies, recognized as “Sales and marketing” expense. Such expense should have been recognized as a component of “Cost of revenue”. As a result, our cost of revenue was understated, and our sales and marketing expense was overstated by identical amounts, which also resulted in an overstatement of gross profit and total operating expenses by the same amount for the effected periods. There was no effect on reported revenues, net income, earnings per share, or cash flows. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality , and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , we evaluated the materiality of the error from a qualitative and quantitative perspective and concluded that the effect of the misclassification was not material to our previously issued consolidated financial statements. We have corrected the presentation of the amortization expense for all prior periods presented in this Form 10-K. The immaterial error correction resulted in an increase of cost of revenue and reduction in sales and marketing expense of $6.9 million and $0.9 million for the years ended December 31, 2017 and 2016, respectively. There was no change in our accounting for amortization expense related to client relationship, non-compete agreements and trade name intangible assets. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such significant estimates include, but are not limited to, the determination of the allowances against our accounts receivable; useful lives of intangible assets; impairment assessments on long-lived assets (including goodwill); contingent commissions related to the sale of insurance products; fair value of acquired net assets and contingent consideration in connection with business combinations; the nature and timing of satisfaction of performance obligations and related reserves; fair values of stock-based awards; loss contingencies; and the recognition, measurement and valuation of current and deferred income taxes. Actual results could differ from these estimates. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the result of which forms the basis for making judgments about the carrying value of assets and liabilities. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Our cash accounts are maintained at various high credit, quality financial institutions and may exceed federally insured limits. We have not experienced any losses in such accounts. Substantially all of our accounts receivable are derived from clients in the residential rental housing market. Concentrations of credit risk with respect to accounts receivable and revenue are limited due to a large, diverse customer base. We do not require collateral from clients. We maintain an allowance for doubtful accounts based upon the expected collectability of accounts receivable. No single client accounted for 10% or more of our revenue or accounts receivable for the years ended December 31, 2018 , 2017 , or 2016 . Segment and Geographic Information Our chief operating decision maker is our Chief Executive Officer, who reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we have determined we operate as a single operating segment. Principally, all of our revenue for the years ended December 31, 2018 , 2017 , and 2016 was earned in the United States. Net property, equipment, and software located in the United States amounted to $144.3 million and $140.0 million at December 31, 2018 and 2017 , respectively. Net property, equipment, and software located in our international subsidiaries amounted to $9.2 million and $8.4 million at December 31, 2018 and 2017 , respectively. Substantially all of the net property, equipment, and software held in our international subsidiaries was located in the Philippines, Spain, and India at both December 31, 2018 and 2017 . Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an initial maturity of three months or less at the date of purchase to be cash equivalents. The fair value of our cash and cash equivalents approximates carrying value. Restricted cash consists of cash collected from tenants that will be remitted primarily to our clients. Accounts Receivable Accounts receivable primarily represent trade receivables from clients recorded at the invoiced amount, net of allowances, which are based on our historical experience, the aging of our trade receivables, and management judgment. Trade receivable are written off against the allowance when management determines a balance is uncollectible. During the years ended December 31, 2018 , 2017 , and 2016 , we incurred bad debt expense of $3.7 million , $3.2 million , and $2.4 million , respectively. Property, Equipment, and Software Property, equipment, and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives: Data processing and communications equipment 3 - 5 years Furniture, fixtures, and other equipment 3 - 5 years Software 3 - 5 years Leasehold improvements Shorter of lease term or estimated useful life Software includes both purchased and internally developed software. Gains and losses from asset disposals are included in the line “General and administrative” in the Consolidated Statements of Operations. Internally Developed Software We capitalize certain development costs incurred in connection with software development for our solutions to be marketed to external users. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the technological feasibility stage, internal and external costs including costs of materials, services, and payroll and payroll-related costs for employees, are capitalized, if direct and incremental, until the software is available for general release to customers. Minor upgrades and enhancements are also expensed as incurred. Costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality are capitalized. Costs incurred to develop software intended solely for our internal use, such as internal administration and finance and accounting systems, are capitalized during the application development stage. Interest on funds used to finance internally developed software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under development. Capitalized interest was not significant for any period presented. Amortization of internally developed software is included in “Amortization of product technologies” in the accompanying Consolidated Statements of Operations. Impairment of Long-Lived Assets Tangible long-lived assets held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors we consider important that could trigger an impairment review include, but are not limited to, significant under-performance relative to current and historical or projected future operating results, significant changes in the manner of our use of the asset, or significant changes in our overall business and/or product strategies. If circumstances require that a long-lived asset group be tested for possible impairment, determination of recoverability is based on an estimate of the undiscounted cash flows expected to be generated by that long-lived asset or asset group. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, we would recognize an impairment charge equal to the excess of the carrying value over its fair value. Business Combinations We allocate the fair value of the purchase consideration of our acquisitions to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Purchase consideration includes assets transferred, liabilities assumed, and/or equity interests issued by us, all of which are measured at their fair value as of the date of acquisition. Our business combination transactions may be structured to include a combination of up-front, deferred and contingent payments to be made at specified dates subsequent to the date of acquisition. These payments may include a combination of cash and equity. Deferred and contingent payments are included in the purchase consideration based on their fair value as of the acquisition date. Deferred obligations are generally subject to adjustments specified in the underlying purchase agreement related to the seller’s indemnification obligations. Contingent consideration is an obligation to make future payments to the seller contingent upon the achievement of future operational or financial targets. The fair value of these payments is estimated using a probability weighted discount model based on the achievement of the specified targets. The valuation of the net assets acquired as well as certain elements of purchase consideration require management to make significant estimates and assumptions, especially with respect to future expected cash flows, useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the measurement period, we may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. Changes to the fair value of contingent payments is reflected in “General and administrative” costs in the accompanying Consolidated Statements of Operations. Acquisition costs are expensed as incurred and are included in “General and administrative” in the accompanying Consolidated Statements of Operations. We include the results of operations from acquired businesses in our consolidated financial statements from the effective date of the acquisition. Goodwill and Indefinite-Lived Intangible Assets We test goodwill and indefinite-lived intangible assets for impairment separately on an annual basis in the fourth quarter of each year, or more frequently if circumstances indicate that the assets may not be recoverable. We evaluate impairment of goodwill either by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or by performing a quantitative assessment. If we choose to perform a qualitative assessment and after considering the totality of events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would perform a quantitative fair value test. To calculate any potential impairment, we compare the fair value of a reporting unit with its carrying amount, including goodwill. Any excess of the carrying amount of the reporting unit’s goodwill over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down. For purposes of goodwill impairment testing, we have one reporting unit. We quantitatively evaluate indefinite-lived intangible assets by estimating the fair value of those assets based on estimated future earnings derived from the assets using the income approach. Assets with indefinite lives that have been determined to be inseparable due to their interchangeable use are grouped into single units of accounting for purposes of testing for impairment. If the carrying amount of an identified intangible asset with an indefinite life exceeds its fair value, we would recognize an impairment loss equal to the excess of carrying value over fair value. Intangible Assets Intangible assets with determinable economic lives are carried at cost, less accumulated amortization. Our intangible assets are largely acquired in business combinations and include developed technologies, client relationships, vendor relationships, non-competition agreements and trade names. Intangible assets are amortized over the shorter of the contractual life or the estimated useful life. Intangible assets are amortized on a straight-line basis, except for client relationships which are amortized proportionately to the expected discounted cash flows derived from the asset. Estimated useful lives for intangible assets consist of the following: Developed technologies 3 - 7 years Client relationships 3 - 10 years Vendor relationships 7 years Trade names 1 - 7 years Non-competition agreements 5 - 10 years Amortization of acquired developed technologies is included in “Amortization of product technologies”, and amortization of acquired client relationships, vendor relationships, non-competition agreements and trade names is included in “Amortization of intangible assets” in the accompanying Consolidated Statements of Operations. Other Current and Long-Term Liabilities Accrued expenses and other current liabilities consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Accrued compensation, payroll taxes, and benefits $ 29,405 $ 25,677 Sales tax obligations 3,673 4,930 Current portion of liabilities related to acquisitions 47,173 34,430 Lease-related liabilities 2,640 2,288 Other current liabilities 12,591 12,054 Total accrued expenses and other current liabilities $ 95,482 $ 79,379 Other long-term liabilities consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Accrued lease liability $ 25,207 $ 27,760 Liabilities related to acquisitions 10,969 13,000 Other long-term liabilities 1,014 753 Total other long-term liabilities $ 37,190 $ 41,513 Deferred Revenue For several of our solutions, we invoice our clients in annual, monthly, or quarterly installments in advance of the commencement of the service period. Deferred revenue is recognized when billings are due or payments are received in advance of revenue recognition from our subscription and other services. Accordingly, the deferred revenue balance does not represent the total contract value of annual subscription agreements. Revenue Recognition Revenues are derived from on demand software solutions, professional services and other goods and services. We recognize revenue as we satisfy one or more service obligations under the terms of a contract, generally as control of goods and services are transferred to our clients. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We include estimates of variable consideration in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur. We estimate and accrue a reserve for credits and other adjustments as a reduction to revenue based on several factors, including past history. On Demand Revenue Our on demand revenue consists of license and subscription fees, transaction fees related to certain of our software-enabled value-added services, and commissions derived from our selling certain risk mitigation services. We generally recognize revenue from subscription fees on a straight-line basis over the access period beginning on the date that we make our service available to the client. Our subscription agreements generally are non-cancellable, have an initial term of one year or longer and are billed either monthly, quarterly or annually in advance. Non-refundable upfront fees billed at the initial order date that are not associated with an upfront service obligation are recognized as revenue on a straight-line basis over the period in which the client is expected to benefit, which we consider to be three years. We recognize revenue from transaction fees in the month the related services are performed based on the amount we have the right to invoice. We offer risk mitigation services to our clients by acting as an insurance agent and derive commission revenue from the sale of insurance products to our clients’ residents. The commissions are based upon a percentage of the premium that the insurance company charges to the policyholder and are subject to forfeiture in instances where a policyholder cancels prior to the end of the policy. Our contract with our underwriting partner provides for contingent commissions to be paid to us in accordance with the agreement. Our estimate of contingent commission revenue considers the variable factors identified in the terms of the applicable agreement. We recognize commissions related to these services as earned ratably over the policy term and insurance commission receivable in “Accounts receivable, less allowances”. Professional and Other Revenue Professional services and other revenues generally consist of the fees we receive for providing implementation and consulting services, submeter equipment and ongoing maintenance of our existing on premise licenses. Professional services are billed either on a time and materials basis or on a fixed price basis, and revenue is recognized over time as we perform the obligation. Professional services are typically sold bundled in a contract with other on demand solutions but may be sold separately. Professional service contracts sold separately generally have terms of one year or less. For bundled arrangements, where we account for individual services as a separate performance obligation, the transaction price is allocated between separate services in the bundle based on their relative standalone selling prices. Other revenues consist primarily of submeter equipment sales that include related installation services. Such sales are considered bundled, and revenue from these bundled sales is recognized in proportion to the number of installed units completed to date as compared to the total contracted number of unites to be provided and installed. For all other equipment sales, we generally recognize revenue when control of the hardware has transferred to our client. Revenue recognized for on premise software sales generally consists of annual maintenance renewals on existing term or perpetual license, which is recognized ratably over the service period. Contract with Multiple Performance Obligations The majority of the contracts we enter into with clients, including multiple contracts entered into at or near the same time with the same client, require us to provide one or more on demand software solutions, professional services and may include equipment. For these contracts, we account for individual performance obligations separately: i) if they are distinct or ii) if the promised obligation represents a series of distinct services that are substantially the same and have the same pattern of transfer to the client. Once we determine the performance obligations, we determine the transaction price, which includes estimating the amount of variable consideration, if any, to be included in the transaction price. For contracts with multiple performance obligations, we allocate the transaction price to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices of our service are estimated using a market assessment approach based on our overall pricing objectives taking into consideration market conditions and other factors including the number of solutions sold, client demographics and the number and types of users within our contracts. Sales, value add, and other taxes we collect from clients and remit to governmental authorities are excluded from revenues. Cost of Revenue Cost of revenue consists primarily of salaries and related personnel expenses of our operations and support personnel, including training and implementation services; expenses related to the operation of our data centers; fees paid to third-party providers; allocations of facilities overhead costs; and depreciation Sales and Marketing Expenses and Deferred Commissions Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included are marketing and promotional events, our annual user conference, and other online and product marketing costs. We amortize sales commissions that are directly attributable to a contract over an estimated customer benefit period of three years . Advertising costs are expensed as incurred and totaled $26.4 million , $22.8 million , and $19.4 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Stock-Based Expense We recognize compensation expense related to stock options and shares of restricted stock based on the estimated fair value of the awards on the date of grant. We generally grant time-based stock options and restricted stock awards, which vest over a specified period of time, and market-based awards, which become eligible to vest only after the achievement of a condition based upon the trading price of our common stock and vest over a specified period of time thereafter. The fair value of employee stock options is estimated on the date of grant using a binomial option pricing model, the Black-Scholes model. The fair value of our market-based restricted stock awards is estimated using a discrete model based on multiple stock price-paths developed through the use of Monte Carlo simulation. For time-based stock options and restricted stock awards, expense is recognized on a straight-line basis over the requisite service period. Expense associated with market-based awards is recognized over the requisite service period using the graded-vesting attribution method. Share-based compensation is reduced for forfeitures once they occur. Income Taxes Income taxes are recorded based on the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the effect of tax rate changes on current and accumulated deferred income taxes in the period in which the rate change was enacted. Valuation allowances are provided when it is more likely than not that all or a portion of the deferred tax asset will not be realized. The factors used to assess the need for a valuation allowance include historical earnings, our latest forecast of taxable income, and available tax planning strategies that could be implemented to realize the net deferred tax assets. We may recognize a tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. Fair Value Measurements We measure our derivative financial instruments and acquisition-related contingent consideration obligations at fair value at each reporting period using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3 - Inputs are derived from valuation techniques in which one or more of the significant inputs or value drivers are unobservable. The categorization of an asset or liability is based on the inputs described above and does not necessarily correspond to our perceived risk of that asset or liability. Moreover, the methods used by us may produce a fair value calculation that is not indicative of the net realizable value or reflective of future fair values. Furthermore, although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments and non-financial assets and liabilities could result in a different fair value measurement at the reporting date. Certain financial instruments, which may include cash, cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses are recorded at their carrying amounts, which approximates their fair values due to their short-term nature. Recently Adopted Accounting Standards Accounting Standards Update 2014-09 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09, as amended by certain supplementary ASU’s released in 2016, replaces all current GAAP guidance on this topic and eliminates all industry-specific guidance. The new revenue recognition standard requires the recognition of revenue when promised goods or services are transferred to clients in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers , which requires the deferral of incremental costs of obtaining a contract with a client. Collectively, we refer to Topic 606 and Subtopic 340-40 as the “new revenue standard” or “ASC 606.” We adopted the requirements of the new revenue standard on January 1, 2018 using the modified retrospective method and applied the guidance to contracts not substantially completed as of the date of initial application, or open contracts. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of 2018. Comparative information from prior year periods has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effects of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows: Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at (in thousands) Assets Accounts receivable, less allowances $ 124,505 $ (7,925 ) $ 116,580 Other current assets $ 6,622 $ 2,771 $ 9,393 Deferred tax assets, net $ 44,887 $ (780 ) $ 44,107 Other assets $ 11,010 $ 4,459 $ 15,469 Liabilities Current portion of deferred revenue $ 116,622 $ (3,696 ) $ 112,926 Stockholders’ Equity Accumulated deficit $ (75,046 ) $ 2,221 $ (72,825 ) Adoption of the new revenue standard resulted in changes to our accounting policies for revenue recognition, certain variable considerations, and commissions expense. The adoption of the new revenue standard did not have a significant effect on our revenue; however, it did have an impact on the timing of when we expense commission costs incurred to obtain a contract and the reserves we establish for variable consideration from credits or other pricing accommodations we provide our clients. We expect the effect of the new revenue standard to be immaterial to our revenue on an ongoing basis. The primary effect to our net income on an ongoing basis relates to the reserve for credit accommodations and deferral of incremental commission costs incurred to obtain new contracts. Under the new revenue standard, we accrue for credit accommodations in our reserve during the month of billing, and credits reduce this reserve when issued. Further, we now initially defer commission costs and amortize these costs to expense over a period of benefit that we have determined to be three years . Deferred commissions were capitalized for open contracts at the date of initial application and are capitalized for new contracts in 2018. See Note 4 for additional required disclosures related to the impact of adopting the new revenue standard and our accounting for costs to obtain a contract. Accounting Standards Update 2016-18 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. This ASU must be adopted retrospectively. We adopted ASU 2016-18 effective January 1, 2018. As a result of our adoption, changes in customer deposits held in restricted accounts will result in an increase or reduction in our cash flows from operating activities. Under previous rules, such changes were largely offset by the corresponding change in restricted cash and had a minimal impact on our statement of cash flows. The prior period financial statements included in this filing have been adjusted to reflect the adoption of ASU 2016-18. The effects of those adjustments to the Consolidated Statements of Cash Flows have been summarized in the table below: Originally Reported Effect of Change As Adjusted (in thousands) Statement of Cash Flows for the year ended December 31, 2017 Net cash provided by operating activities $ 137,327 $ 2,936 $ 140,263 Net cash used in investing activities $ (709,274 ) $ 9,412 $ (699,862 ) Cash, cash equivalents and restricted cash at end of period $ 69,343 $ 96,002 $ 165,345 Statement of Cash Flows for the year ended December 31, 2016 Net cash provided by operating activities $ 136,216 $ (6,767 ) $ 129,449 Net cash used in investing activities $ (145,141 ) $ 4,960 $ (140,181 ) Cash, cash equivalents and restricted cash at end of period $ 104,886 $ 83,654 $ 188,540 Accounting Standards Update 2016-01 In January 2016, the FASB issued ASU 2016-01, Financial Inst |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal Year 2018 Rentlytics In October 2018 , we entered into an agreement and plan of merger whereby we acquired 100% of the capital stock of Rentlytics, Inc. (“Rentlytics”), a provider of business intelligence and data analytics software and services to the multi-family housing industry. Aggregate purchase consideration was $55.4 million , including deferred cash obligations of up to $8.0 million that will be released on the first and second anniversary dates of the closing date, subject to any indemnification claims. The acquisition was financed using cash on hand. The acquired identified intangible assets consisted of client relationships, developed technology and trade names and were assigned estimated useful lives of ten , seven and ten years, respectively. Preliminary goodwill recognized of $42.4 million is primarily comprised of anticipated synergies from the expansion of our business intelligence and data analytics platform. Goodwill and acquired intangible assets are not deductible for tax purposes. Accounts receivable acquired have a gross value of $2.0 million , of which $0.4 million is estimated to be uncollectible. Acquisition costs associated with this transaction totaled $1.2 million , which also include certain change of control payments and related severance costs paid to former Rentlytics employees. LeaseLabs In September 2018 , we acquired substantially all of the assets of LeaseLabs, Inc. (“LeaseLabs”), a full-stack marketing solutions provider to the multifamily housing industry. LeaseLabs provides online, social media and website marketing services to property management companies. Aggregate purchase consideration was $112.9 million , including deferred cash obligations of up to $11.8 million , subject to any indemnification claims, to be released on the first and second anniversary dates of the closing date, and contingent consideration of up to $9.9 million based on the collection of acquisition date accounts receivable balances during the six -month period after the acquisition date. The fair value of the contingent consideration was $7.0 million on the date of acquisition. We also issued 86,745 shares of our common stock at closing, which had a fair value of $5.3 million on the date of acquisition. We will issue shares of our common stock with a fair value of $5.0 million on the first anniversary date of the acquisition. A liability of $4.8 million has been recorded for the obligation to issue these shares. The acquisition was financed using cash on hand. The acquired identified intangible assets consisted of client relationships, developed technology and trade names and were assigned estimated useful lives of ten , seven and ten years, respectively. Preliminary goodwill recognized of $84.7 million is primarily comprised of anticipated synergies from the expansion of our marketing platform with LeaseLabs’ marketing solutions and the combination of our marketing content, websites and lead management with LeaseLabs’ marketing solutions. Goodwill and acquired intangible assets are deductible for tax purposes. Accounts receivable acquired have a gross value of $3.5 million , of which $0.6 million is estimated to be uncollectible. Acquisition costs associated with this transaction totaled $0.4 million . BluTrend In July 2018 , we acquired substantially all of the assets of Blu Trend, LLC (“BluTrend”), a provider of utility management services for the multifamily housing industry. The acquired assets will be integrated with our existing resident utility management platform. Aggregate purchase consideration was $8.5 million , including deferred cash obligations of up to $1.0 million , and deferred stock obligations of up to $1.0 million . The $2.0 million of deferred obligations are subject to indemnification claims as well as continued employment of certain BluTrend employees and will be released on the first and second anniversary dates of the closing date. The deferred obligations will be recognized as compensation expense over the two -year period after the acquisition date. The acquisition was financed using cash on hand. The acquired identifiable intangible assets consisted of client relationships, developed technology and trade names and were assigned estimated useful lives of ten , five and two years, respectively. Preliminary goodwill recognized of $3.9 million is primarily comprised of anticipated synergies from integrating the BluTrend business into our utility management platform. Goodwill and the acquired identified intangible assets are deductible for tax purposes. Acquisition costs associated with this transaction totaled $0.1 million . ClickPay In April 2018, we acquired substantially all of the outstanding membership units of NovelPay, LLC (“NovelPay”), other than those owned by ClickPay Services, Inc. On the same day, we acquired all of the outstanding stock of ClickPay Services, Inc. (collectively with NovelPay, “ClickPay”). ClickPay provides an electronic payment platform servicing resident units across multiple segments of real estate, which offers integrated payment services to increase operational efficiencies for property owners and managers. The acquisition of ClickPay broadens our presence in the real estate industry, and solidifies the integration of our leasing platform with third-party property management systems. We acquired ClickPay for purchase consideration of $221.1 million . The purchase consideration consisted of $139.0 million of cash, net of cash acquired of $7.5 million , the issuance of 870,168 shares of our common stock valued at $48.0 million , a deferred obligation of up to $10.2 million , and a liability of $24.7 million related to put and call option agreements, which had a fair value of $24.4 million on the date of acquisition. Approximately 187,480 shares of common stock issued at closing are subject to a holdback and subject to any indemnification claims made, will be released on the first anniversary date of the closing date. The deferred obligation requires us to issue shares of our common stock with a fair value of $9.8 million on the second anniversary date of the closing date. The acquisition of ClickPay was financed using funds available under our Credit Facility, as defined in Note 8 , and cash on hand. Pursuant to the acquisition agreement, certain holders initially retained units representing approximately 12% of the membership units of NovelPay, subject to put rights that could be exercised by the holders on or after September 1, 2018, and call rights that could be exercised by us on or after October 1, 2018. The exercise price of the put and call rights was the same as the per unit price of the membership units purchased at the closing. We evaluated the put and call options and determined the put and call options were embedded within the noncontrolling interests, and the economic substance represented a financing arrangement of the noncontrolling interests because of the substantially fixed exercise price and stated exercise dates. In June 2018, we and one of the remaining NovelPay noncontrolling interest holders agreed to waive the put and call exercise date, and we completed the purchase of such holder’s membership units for 395,206 shares of common stock valued at $21.8 million . In September 2018, the remaining NovelPay noncontrolling interest holders exercised their put rights, and we completed the purchase of the noncontrolling interest holders’ membership units for $2.9 million in cash. As of December 31, 2018 , all outstanding membership units of NovelPay have been acquired. No earnings were attributed to the noncontrolling interests in the accompanying Consolidated Statements of Operations. The acquired identified intangible assets consisted of developed technology, client relationships, and trade names. These intangible assets were assigned estimated useful lives of seven , ten and ten years, respectively. Preliminary goodwill recognized of $173.3 million is primarily comprised of anticipated synergies from leveraging ClickPay’s electronic payment platform, which is compatible with multiple third-party property management systems. Goodwill of $102.4 million arising from the acquisition of NovelPay is deductible for tax purposes; goodwill arising from the acquisition of ClickPay Services, Inc. is not. Accounts receivable acquired had a gross contractual value of $2.7 million at acquisition, of which $0.5 million was estimated to be uncollectible. Acquisition costs associated with this transaction totaled $1.6 million . Purchase Consideration and Purchase Price Allocations The estimated fair values of assets acquired and liabilities assumed are provisional and are based primarily on the information available as of each respective acquisition date. We believe this information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but we are awaiting additional information necessary to finalize those values. Therefore, the provisional measurements of fair value are subject to change, and such changes could be significant. We expect to finalize the valuation of these assets and liabilities as soon as practicable, but no later than one year from each respective acquisition date. The components of the purchase consideration and the preliminary allocation of each purchase price, including the effects of measurement period adjustments recorded as of December 31, 2018 , are as follows: ClickPay BluTrend LeaseLabs Rentlytics (in thousands) Fair value of purchase consideration: Cash, net of cash acquired $ 138,983 $ 8,500 $ 84,498 $ 47,895 Common stock issued at closing 48,034 — 5,300 — Deferred obligations, net 9,677 — 16,094 7,517 Noncontrolling interest financing 24,369 — — — Contingent consideration — — 7,000 — Total fair value of purchase consideration $ 221,063 $ 8,500 $ 112,892 $ 55,412 Fair value of net assets acquired: Restricted cash $ 1,313 $ — $ — $ — Accounts receivable 2,226 226 2,853 1,585 Property, equipment, and software 89 — 865 — Deferred tax asset, net — — — 988 Intangible assets: Developed product technologies 29,100 730 8,300 3,300 Client relationships 20,700 3,510 17,800 8,500 Trade names 2,900 30 1,100 400 Goodwill 173,250 3,887 84,674 42,351 Other assets 362 122 321 401 Accounts payable and accrued liabilities (2,698 ) (5 ) (696 ) (763 ) Client deposits held in restricted accounts (1,313 ) — — — Deferred revenue — — (2,325 ) (1,350 ) Deferred tax liability, net (4,866 ) — — — Total fair value of net assets acquired $ 221,063 $ 8,500 $ 112,892 $ 55,412 Acquisitions Prior to 2018 We completed eight acquisitions during fiscal years 2017 and 2016 . A summary of each acquisition can be found in the table below: Date of Acquisition Aggregate Purchase Price Closing Cash Payment, Net of Cash Acquired Net Tangible Assets Acquired (Liabilities Assumed) Identified Intangible Assets Goodwill Recognized (in thousands) NWP Services Corporation March 2016 $ 68,183 $ 62,190 $ 18,314 $ 16,349 $ 33,520 AssetEye, Inc. May 2016 $ 4,911 $ 3,749 $ (928 ) $ 2,685 $ 3,154 eSupply Systems, LLC June 2016 $ 7,046 $ 5,461 $ 267 $ 3,585 $ 3,194 Axiometrics LLC January 2017 $ 73,757 $ 66,050 $ (5,963 ) $ 25,530 $ 54,190 American Utility Management June 2017 $ 69,412 $ 64,775 $ 1,107 $ 22,398 $ 45,907 On-Site Manager, Inc. September 2017 $ 251,109 $ 225,300 $ 3,197 $ 65,320 $ 182,592 PEX Software Limited October 2017 $ 6,031 $ 5,103 $ (369 ) $ 3,100 $ 3,300 Lease Rent Options December 2017 $ 299,923 $ 298,040 $ 5,263 $ 91,666 $ 202,994 Purchase consideration for Axiometrics included contingent consideration of up to $5.0 million payable if certain revenue targets were achieved during the twelve -month period ending December 31, 2018 . Based on information that was available at December 31, 2018 , management has determined the fair value of the contingent consideration to be zero . Refer to Note 13 for additional information regarding our contingent consideration liabilities. Deferred Obligations and Contingent Consideration Activity The following table presents changes in our deferred cash and stock obligations and contingent consideration for the fiscal years ended December 31, 2018 and 2017 : Deferred Cash and Stock Obligations Contingent Consideration Total (in thousands) Balance at January 1, 2017 $ 14,150 $ 541 $ 14,691 Additions, net of fair value discount 42,104 812 42,916 Cash payments (8,215 ) (700 ) (8,915 ) Accretion expense 1,049 — 1,049 Change in fair value — (239 ) (239 ) Indemnification claims and other adjustments (2,072 ) — (2,072 ) Balance at December 31, 2017 47,016 414 47,430 Additions, net of fair value discount 36,313 7,000 43,313 Cash payments (29,600 ) (247 ) (29,847 ) Accretion expense 1,970 — 1,970 Change in fair value — (1,167 ) (1,167 ) Indemnification claims and other adjustments (3,557 ) — (3,557 ) Balance at December 31, 2018 $ 52,142 $ 6,000 $ 58,142 Pro Forma Results of Acquisitions The following table presents unaudited pro forma results of operations for the years ended December 31, 2018 and 2017 , as if the aforementioned 2018 and 2017 acquisitions had occurred as of January 1, 2017 and January 1, 2016 , respectively. The pro forma information includes the business combination accounting effects resulting from these acquisitions, including interest expense, tax expense or benefit, issuance of our common shares, and additional amortization resulting from the valuation of amortizable intangible assets. We prepared the pro forma financial information for the combined entities for comparative purposes only, and it is not indicative of what actual results would have been if the acquisitions had occurred at the beginning of the periods presented, or of future results. Year Ended December 31, 2018 2017 (unaudited) (in thousands, except per share amounts) Total revenue $ 899,966 $ 809,987 Net income (loss) $ 27,969 $ (14,210 ) Net income (loss) per share: Basic $ 0.32 $ (0.18 ) Diluted $ 0.30 $ (0.18 ) |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted the new revenue standard using the modified retrospective method for those contracts with remaining service obligations as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We recorded a net increase to opening equity of $2.2 million as of January 1, 2018 as the cumulative effect of adopting the new revenue standard. The effect on revenues of adopting the new revenue standard for the fiscal year ended December 31, 2018 is presented in the “Impact on Consolidated Financial Statements” section below. Disaggregation of Revenue The following table presents our revenues disaggregated by major revenue source. Sales and usage-based taxes are excluded from revenues. Year Ended December 31, 2018 2017 2016 (in thousands) On demand Property management $ 186,975 $ 167,002 $ 152,890 Resident services 350,457 272,176 218,097 Leasing and marketing 166,361 123,804 116,505 Asset optimization 129,916 79,640 55,039 Total on demand revenue 833,709 642,622 542,531 Professional and other 35,771 28,341 25,597 Total revenue $ 869,480 $ 670,963 $ 568,128 On Demand Revenue We generate the majority of our on demand revenue by licensing software-as-a-service (“SaaS”) solutions to our clients on a subscription basis. Our SaaS solutions are provided pursuant to contractual commitments that typically include a promise that we will stand ready, on a monthly basis, to deliver access to our technology platform over defined service delivery periods. These solutions represent a series of distinct services that are substantially the same and have the same pattern of transfer to the client. Revenue from our SaaS solutions is generally recognized ratably over the term of the arrangement. Consideration for our on demand subscription services consist of fixed, variable and usage-based fees. We invoice a portion of our fees at the initial order date and then monthly or annually thereafter. Subscription fees are generally fixed based on the number of sites and the level of services selected by the client. We sell certain usage-based services, primarily within our property management, resident services and leasing and marketing solutions, to clients based on a fixed rate per transaction. Revenues are calculated based on the number of transactions processed monthly and will vary from month to month based on actual usage of these transaction-based services over the contract term, which is typically one year in duration. The fees for usage-based services are not associated with every distinct service promised in the series of distinct services we provide our clients. As a result, we allocate variable usage-based fees only to the related transactions and recognize them in the month that usage occurs. As part of our resident services offerings, we offer risk mitigation services to our clients by acting as an insurance agent and derive commission revenue from the sale of insurance products to our clients’ residents. The commissions are based upon a percentage of the premium that the insurance company underwriting partners charge to the policyholder and are subject to forfeiture in instances where a policyholder cancels prior to the end of the policy. The overall insurance services we provide represent a single performance obligation that qualifies as a separate series in accordance with the new revenue standard. Our contracts with our underwriting partners also provide for contingent commissions to be paid to us in accordance with the agreements. The contingent commissions are not associated with every distinct service promised in the series of distinct insurance services we provide. We generally accrue and recognize contingent commissions monthly based on estimates of the variable factors identified in the terms of the applicable agreements. Professional Services and Other Revenues Professional services and other revenues generally consist of the fees we receive for providing implementation and consulting services, submeter equipment and ongoing maintenance of our existing on premise licenses. Professional services revenues primarily consist of fees for implementation services, consulting services and training. Professional services are billed either on a fixed rate per hour (time) and materials basis or on a fixed price basis. Professional services are typically sold bundled in a contract with other on demand solutions but may be sold separately. For bundled arrangements, we allocate the transaction price to separate services based on their relative standalone selling prices if a service is separately identifiable from other items in the bundled arrangement and if a client can benefit from it on its own or with other resources readily available to the client. Other revenues consist of submeter equipment sales that include related installation services, sales of other equipment and on premise software sales. Submeter hardware and installation services are considered to be part of a single performance obligation due to the significance of the integration and interdependency of the installation services with the meter equipment. Our typical payment terms for submeter installations require a percentage of the overall transaction price to be paid upfront, with the remainder billed as progress payments. We recognize submeter revenue in proportion to the number of fully installed units completed to date as compared to the total contracted number of units to be provided and installed. For all other equipment sales, we generally recognize revenue when control of the hardware has transferred to our client, which occurs at a point in time, typically upon delivery to the client. The majority of on premise revenue consists of maintenance renewals from clients who renew for an additional one-year term. Maintenance renewal revenue is recognized ratably over the service period based upon the standalone selling price of that service obligation. Contract Balances Contract assets generally consist of amounts recognized as revenue before they can be invoiced to clients or amounts invoiced to clients prior to the period in which the service is provided where the right to payment is subject to conditions other than just the passage of time. These contract assets are included in “Accounts receivable” in the accompanying Consolidated Financial Statements and related disclosures. Contract liabilities are comprised of billings or payments received from our clients in advance of performance under the contract. We refer to these contract liabilities as “Deferred revenue” in the accompanying Consolidated Financial Statements and related disclosures. We recognized $113.7 million of on demand revenue during the year ended December 31, 2018 , which was included in the line “Deferred revenue” in the accompanying Consolidated Balance Sheets as of the beginning of the period. Contract Acquisition Costs We capitalize certain commissions as incremental costs of obtaining a contract with a client if we expect to recover those costs. The commissions are capitalized and amortized over a period of benefit determined to be three years . As of December 31, 2018 , the current and noncurrent balances of capitalized commissions costs recorded in the lines “Other current assets” and “Other assets” in the accompanying Consolidated Balance Sheets were $6.7 million and $7.8 million , respectively. During the year ended December 31, 2018 , we amortized commission costs totaling $5.4 million . No impairment loss was recognized in relation to these capitalized costs. Remaining Performance Obligations Certain clients commit to purchase our solutions for terms ranging from two to seven years. We expect to recognize approximately $414.7 million of revenue in the future related to performance obligations for on demand contracts with an original duration greater than one year that were unsatisfied or partially unsatisfied as of December 31, 2018 . Our estimate does not include amounts related to: • professional and usage-based services that are billed and recognized based on services performed in a certain period; • amounts attributable to unexercised contract renewals that represent a material right; or • amounts attributable to unexercised client options to purchase services that do not represent a material right. We expect to recognize revenue on approximately 68.8% of the remaining performance obligations over the next 24 months , with the remainder recognized thereafter. Revenue from remaining performance obligations for professional service contracts as of December 31, 2018 was immaterial. Impact on Consolidated Financial Statements The following tables summarize the effects of the adoption of ASU 2014-09 on selected line items within our Consolidated Statements of Operations and Balance Sheets: Year Ended December 31, 2018 As reported Balances without adoption of ASU 2014-09 Effect of Change (in thousands) Revenue On demand $ 833,709 $ 835,465 $ (1,756 ) Professional and other 35,771 32,886 2,885 Total revenue $ 869,480 $ 868,351 $ 1,129 Operating expenses Sales and marketing $ 166,607 $ 174,578 $ 7,971 Net income before income taxes $ 34,300 $ 25,200 $ 9,100 Income tax expense (benefit) (425 ) (2,608 ) (2,183 ) Net income $ 34,725 $ 27,808 $ 6,917 Balances at December 31, 2018 - as reported Balances at December 31, 2018 without adoption of ASU 2014-09 Effect of Change (in thousands) Assets Accounts receivable, less allowances $ 123,596 $ 130,742 $ (7,146 ) Other current assets $ 15,185 $ 8,198 $ 6,987 Other assets $ 20,393 $ 12,114 $ 8,279 Liabilities Current portion of deferred revenue $ 120,704 $ 125,078 $ (4,374 ) Deferred revenue $ 4,902 $ 4,902 $ — The adoption of ASU 2014-09 had no net effect on the Consolidated Statements of Cash Flows for the year ended December 31, 2018. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Trade receivables from clients $ 120,767 $ 115,354 Insurance commissions receivable 11,679 13,102 Accounts receivable, gross 132,446 128,456 Less: Allowances (8,850 ) (3,951 ) Accounts receivable, net $ 123,596 $ 124,505 Trade receivables include amounts billed to our clients, primarily under our on demand subscription solutions. Trade receivables also includes amounts invoiced to clients prior to the period in which the service is provided and amounts for which we have met the requirements to recognize revenue in advance of invoicing the client. Insurance commissions receivable consists of commissions derived from the sale of insurance products to individuals and contingent commissions related to those policies. Contingent commissions are determined based on a calculation that considers earned agent commissions, a percent of premium retained by our underwriting partner, incurred losses, and profit retained by our underwriting partner during the time period. Contingent commissions receivables are recorded at their estimated net realizable value, based on estimates and considerations which include, but are not limited to, the historical and projected loss rates incurred by the underlying policies. |
Property, Equipment and Softwar
Property, Equipment and Software | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | Property, Equipment, and Software Property, equipment, and software consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Leasehold improvements $ 63,391 $ 59,179 Data processing and communications equipment 68,015 83,922 Furniture, fixtures, and other equipment 33,840 28,752 Software 131,437 107,924 Property, equipment, and software, gross 296,683 279,777 Less: Accumulated depreciation and amortization (143,155 ) (131,349 ) Property, equipment, and software, net $ 153,528 $ 148,428 Depreciation and amortization expense for property, equipment, and purchased software was $28.5 million , $27.2 million , and $24.5 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. The unamortized amount of capitalized software development costs was $54.9 million and $45.5 million at December 31, 2018 and 2017 , respectively. Amortization expense related to capitalized software development costs totaled $11.9 million , $8.0 million , and $5.8 million during the years ended December 31, 2018 , 2017 , and 2016 , respectively. |
Goodwill and Identified Intangi
Goodwill and Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identified Intangible Assets | Goodwill and Identified Intangible Assets Changes in the carrying amount of goodwill during the years ended December 31, 2018 and 2017 , were as follows, in thousands: Balance at January 1, 2017 $ 259,938 Goodwill acquired 491,079 Measurement period and other adjustments 35 Balance at December 31, 2017 751,052 Goodwill acquired 304,162 Measurement period and other adjustments (2,095 ) Balance at December 31, 2018 $ 1,053,119 We completed our annual goodwill impairment test during the fourth quarter of the fiscal year ended December 31, 2018 . Based on the results of the quantitative analysis, we concluded that there was no impairment of goodwill. In 2017 or 2016 , we performed qualitative assessments which did not result in the impairment of goodwill. Intangible assets consisted of the following at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (in thousands) Finite-lived intangible assets: Developed technologies $ 207,310 $ (100,445 ) $ 106,865 $ 164,640 $ (76,577 ) $ 88,063 Client relationships 264,228 (107,155 ) 157,073 213,728 (78,390 ) 135,338 Vendor relationships 5,650 (5,650 ) — 5,650 (5,650 ) — Trade names 22,956 (10,682 ) 12,274 17,556 (4,325 ) 13,231 Non-compete agreements 4,173 (1,395 ) 2,778 4,173 (605 ) 3,568 Total finite-lived intangible assets 504,317 (225,327 ) 278,990 405,747 (165,547 ) 240,200 Indefinite-lived intangible assets: Trade names 8,388 — 8,388 12,137 — 12,137 Total intangible assets $ 512,705 $ (225,327 ) $ 287,378 $ 417,884 $ (165,547 ) $ 252,337 Amortization expense for finite-lived intangible assets totaled $59.8 million , $31.9 million , and $24.5 million during the years ended December 31, 2018 , 2017 , and 2016 , respectively. The following table sets forth the estimated amortization of intangible assets for the years ending December 31, in thousands: 2019 $ 61,916 2020 52,679 2021 45,446 2022 35,686 2023 28,553 In the fourth quarter of 2018, we recorded an impairment charge of $2.7 million related to the indefinite-lived trade name of our 2010 acquisition of Level One, based on the excess of the carrying value over its estimated fair value. Fair value was estimated using standard valuation methodologies (principally the income and market approach) incorporating market participant considerations and management’s assumptions on revenue growth rates, royalty rates and discount rates. The key factor contributing to the impairment was a change in our long-term marketing strategy for this product offering, which included a shift away from the use of a separate Level One branding and towards a RealPage Contact Center branding. The remaining balance of $1.0 million was reclassified to finite-lived intangible assets as of December 31, 2018 and will be amortized over its estimated remaining useful life of five years . The method utilized to estimate the fair value incorporated significant unobservable inputs, and we concluded that the measurement should be classified within Level 3 of the fair value hierarchy. In 2016, we sold certain assets associated with our senior living referral services and recorded an impairment of the associated trade name of $0.8 million in connection with the disposition. These impairment charges are included in “Sales and marketing” in the accompanying Consolidated Statements of Operations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt On September 30, 2014 , we entered into an agreement for a secured credit facility. The credit facility agreement was subsequently amended during 2016 and 2017, and was further amended in March 2018 (inclusive of these amendments, the “Credit Facility”). We incurred debt issuance costs in the amount of $1.1 million related to the execution of the March 2018 amendment. The Credit Facility matures on February 27, 2022 , and includes the following: Revolving Facility : The Credit Facility provides $350.0 million in aggregate commitments for revolving loans, with sublimits of $10.0 million for the issuance of letters of credit and $20.0 million for swingline loans (“Revolving Facility”). Term Loan : In February 2016, we originated a term loan in the original principal amount of $125.0 million under the Credit Facility (“Term Loan”). We made quarterly principal payments of $0.8 million through March 31, 2018, that increased to $1.5 million beginning on June 30, 2018 , and that will increase again to $3.1 million beginning on June 30, 2020 . Delayed Draw Term Loan : In December 2017, we drew funds of $200.0 million available under the delayed draw term loan (“Delayed Draw Term Loan”). We made quarterly principal payments of $1.3 million through March 31, 2018, that increased to $2.5 million beginning on June 30, 2018 , and that will increase again to $5.0 million beginning on June 30, 2020 . Revolving loans under the Credit Facility may be voluntarily prepaid and re-borrowed. Principal payments on the Term Loan and Delayed Draw Term Loan (collectively, the “Term Loans”) are due in quarterly installments, as described above, and may not be re-borrowed. All outstanding principal and accrued but unpaid interest is due on the maturity date. The Term Loans are subject to mandatory repayment requirements in the event of certain asset sales or if certain insurance or condemnation events occur, subject to customary reinvestment provisions. We may prepay the Term Loans in whole or in part at any time, without premium or penalty. Accordion Feature : The Credit Facility also allows us, subject to certain conditions, to request additional term loans or revolving commitments up to an aggregate principal amount of $150.0 million , plus an amount that would not cause our Senior Leverage Ratio, as defined below, to exceed 3.50 to 1.00 (the “Accordion Feature”). At our option, amounts outstanding under the Credit Facility accrue interest at a per annum rate equal to either LIBOR, plus a margin ranging from 1.25% to 2.25% , or the Base Rate, plus a margin ranging from 0.25% to 1.25% (“Applicable Margin”). The base LIBOR is, at our discretion, equal to either one, two, three, or six month LIBOR. The Base Rate is defined as the greater of Wells Fargo’s prime rate, the Federal Funds Rate plus 0.50% , or one month LIBOR plus 1.00% . In each case, the Applicable Margin is determined based upon our Net Leverage Ratio, as defined below. Accrued interest on amounts outstanding under the Credit Facility is due and payable quarterly, in arrears, for loans bearing interest as the Base Rate and at the end of the applicable interest period in the case of loans bearing interest at the adjusted LIBOR. Certain of our existing and future material domestic subsidiaries are required to guarantee our obligations under the Credit Facility, and the obligations under the Credit Facility are secured by substantially all of our assets and the assets of the subsidiary guarantors. The Credit Facility contains customary covenants, subject in each case to customary exceptions and qualifications, which limit our and certain of our subsidiaries’ ability to, among other things, incur additional indebtedness or guarantee indebtedness of others; grant liens on our assets; enter into mergers or consolidations; dispose of assets; prepay certain indebtedness; make changes to our governing documents and certain of our agreements; pay dividends and make other distributions on our capital stock and redeem and repurchase our capital stock; make investments, including acquisitions; and enter into transactions with affiliates. Our covenants also include requirements that we comply with the following financial covenants: Consolidated Net Leverage Ratio : The Consolidated Net Leverage Ratio (“Net Leverage Ratio”), defined as a ratio of consolidated funded indebtedness, as defined in the Credit Facility, on the last day of each fiscal quarter to the sum of the four previous consecutive fiscal quarters’ consolidated EBITDA, as defined in the Credit Facility, of 5.00 to 1.00 . Consolidated Interest Coverage Ratio : The Consolidated Interest Coverage Ratio (“Interest Coverage Ratio”), defined as a ratio of the four previous fiscal quarters’ consolidated EBITDA to our interest expense for the same period, excluding non-cash interest attributable to the Convertible Notes, as defined below, of 3.00 to 1.00 . Consolidated Senior Secured Net Leverage Ratio : The Consolidated Senior Secured Net Leverage Ratio (“Senior Leverage Ratio”), defined as a ratio of consolidated senior secured indebtedness, as defined in the Credit Facility, on the last day of each fiscal quarter to the four previous consecutive fiscal quarters’ consolidated EBITDA, of 3.75 to 1.00 . As of December 31, 2018 , we were in compliance with the covenants under our Credit Facility. The Credit Facility contains customary events of default, subject to customary cure periods for certain defaults. In the event of a default, the obligations under the Credit Facility could be accelerated, the applicable interest rate could be increased, the loan commitments could be terminated, our subsidiary guarantors could be required to pay the obligations in full and our lenders would be permitted to exercise remedies with respect to all of the collateral that is securing the Credit Facility. Any such default that is not cured or waived could have a material adverse effect on our liquidity and financial condition. As of December 31, 2018 , we had $350.0 million of available credit under our Revolving Facility and there were no outstanding borrowings. Principal outstanding for the Revolving Facility was $50.0 million at December 31, 2017 . We incur commitment fees on the unused portion of the Revolving Facility. The carrying value of the Revolving Facility approximates its fair value. Unamortized debt issuance costs for the Revolving Facility were $1.3 million and $0.6 million at December 31, 2018 and 2017 , respectively, and are included in the line “Other assets” in the Consolidated Balance Sheets. Principal outstanding, and unamortized debt issuance costs for the Term Loans, were as follows at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Term Loan Delayed Draw Term Loan Term Loan Delayed Draw Term Loan (in thousands) Principal outstanding $ 114,990 $ 190,000 $ 120,356 $ 198,750 Unamortized issuance costs (171 ) (606 ) (233 ) (821 ) Unamortized discount (137 ) (361 ) (185 ) (490 ) Carrying value $ 114,682 $ 189,033 $ 119,938 $ 197,439 The fair value of the Term Loans on December 31, 2018 and 2017 was $298.9 million and $303.8 million , respectively. The fair value was estimated by discounting future cash flows using prevailing market interest rates on debt with similar creditworthiness, terms, and maturities. We concluded that this fair value measurement should be categorized within Level 2. Future maturities of principal under the Term Loans are as follows for the years ending December 31, in thousands: Term Loans 2019 $ 16,133 2020 28,232 2021 32,266 2022 228,359 $ 304,990 Convertible Notes In May 2017 , we issued convertible senior notes with aggregate principal of $345.0 million (including the underwriters’ exercise in full of their over-allotment option of $45.0 million ) which mature on November 15, 2022 (“Convertible Notes”). The Convertible Notes were issued under an indenture dated May 23, 2017 (“Indenture”), by and between us and Wells Fargo Bank, N.A., as Trustee. We received net proceeds from the offering of approximately $304.2 million after adjusting for debt issuance costs, including the underwriting discount, the net cash used to purchase the Note Hedges and the proceeds from the issuance of the Warrants which are discussed below. The Convertible Notes accrue interest at a rate of 1.50% , payable semi-annually on May 15 and November 15 of each year. On or after May 15, 2022 , and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Convertible Notes at their option. The Convertible Notes are convertible at an initial rate of 23.84 shares per $1,000 of principal (equivalent to an initial conversion price of approximately $41.95 per share of our common stock). The conversion rate is subject to customary adjustments for certain events as described in the Indenture. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle conversions of the Convertible Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. Based on our closing stock price of $48.19 on December 31, 2018 , the if-converted value exceeded the aggregate principal amount of the Convertible Notes by $51.3 million . Holders may convert their Convertible Notes, at their option, prior to May 15, 2022 only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on June 30, 2017 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sales price of our common stock and the conversion rate on each such trading day; or • upon the occurrence of specified corporate events, as defined in the Indenture. We may not redeem the Convertible Notes prior to their maturity date, and no sinking fund is provided for them. If we undergo a fundamental change, as described in the Indenture, subject to certain conditions, holders may require us to repurchase for cash all or any portion of their Convertible Notes. The fundamental change repurchase price is equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest up to, but excluding, the fundamental change repurchase date. If holders elect to convert their Convertible Notes in connection with a make-whole fundamental change, as described in the Indenture, we will, to the extent provided in the Indenture, increase the conversion rate applicable to the Convertible Notes. The Convertible Notes are senior unsecured obligations and rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Convertible Notes and equal in right of payment to any of our existing and future unsecured indebtedness that is not subordinated. The Convertible Notes are effectively junior in right of payment to any of our secured indebtedness (to the extent of the value of assets securing such indebtedness) and structurally junior to all existing and future indebtedness and other liabilities, including trade payables, of our subsidiaries. The Indenture does not limit the amount of debt that we or our subsidiaries may incur. The Convertible Notes are not guaranteed by any of our subsidiaries. The Indenture does not contain any financial or operating covenants or restrictions on the payment of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The Indenture contains customary events of default with respect to the Convertible Notes and provides that upon certain events of default occurring and continuing, the Trustee may, and the Trustee at the request of holders of at least 25% in principal amount of the Convertible Notes shall, declare all principal and accrued and unpaid interest, if any, of the Convertible Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization, involving us or a significant subsidiary, all of the principal of and accrued and unpaid interest on the Convertible Notes will automatically become due and payable. In accounting for the issuance of the Convertible Notes, we separated the Convertible Notes into liability and equity components. We allocated $282.5 million of the Convertible Notes to the liability component, and $62.5 million to the equity component. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the term of the Convertible Notes using the effective interest method. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification. We incurred issuance costs of $9.8 million related to the Convertible Notes. Issuance costs were allocated to the liability and equity components based on their relative values. Issuance costs attributable to the liability component are being amortized to interest expense over the term of the Convertible Notes, and issuance costs attributable to the equity component are included along with the equity component in stockholders' equity. The net carrying amount of the Convertible Notes at December 31, 2018 and 2017 , was as follows: December 31, 2018 2017 (in thousands) Liability component: Principal amount $ 345,000 $ 345,000 Unamortized discount (46,235 ) (56,557 ) Unamortized debt issuance costs (5,922 ) (7,244 ) $ 292,843 $ 281,199 Equity component, net of issuance costs and deferred tax: $ 61,390 $ 61,390 The estimated fair value of the Convertible Notes at December 31, 2018 and 2017 was $441.4 million and $430.3 million , respectively. The estimated fair value is based on quoted market prices as of the last trading day of the year; however, the Convertible Notes have only a limited trading volume and as such this fair value estimate is not necessarily the value at which the Convertible Notes could be retired or transferred. We concluded this measurement should be classified within Level 2. The following table sets forth total interest expense related to the Convertible Notes for the year ended December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Contractual interest expense $ 5,175 $ 3,119 Amortization of debt discount 10,322 5,991 Amortization of debt issuance costs 1,322 766 $ 16,819 $ 9,876 The effective interest rate of the liability component for the year ended December 31, 2018 and 2017 was 5.87% . Convertible Note Hedges and Warrants On May 23, 2017 , we entered into privately negotiated transactions to purchase hedge instruments (“Note Hedges”), covering approximately 8.2 million shares of our common stock at a cost of $62.5 million . The Note Hedges are subject to anti-dilution provisions substantially similar to those of the Convertible Notes, have a strike price of approximately $41.95 per share, are exercisable by us upon any conversion under the Convertible Notes, and expire on November 15, 2022 . The Note Hedges are generally expected to reduce the potential dilution to our common stock (or, in the event the conversion is settled in cash, to reduce our cash payment obligation) in the event that at the time of conversion our stock price exceeds the conversion price under the Convertible Notes. The cost of the Note Hedges is expected to be tax deductible as an original issue discount over the life of the Convertible Notes, as the Convertible Notes and the Note Hedges represent an integrated debt instrument for tax purposes. The cost of the Note Hedges was recorded as a reduction of our additional paid-in capital in the accompanying Consolidated Financial Statements. On May 23, 2017 , we also sold warrants for the purchase of up to 8.2 million shares of our common stock for aggregate proceeds of $31.5 million (“Warrants”). The Warrants have a strike price of $57.58 per share and are subject to customary anti-dilution provisions. The Warrants will expire in ratable portions on a series of expiration dates commencing on February 15, 2023 . The proceeds from the issuance of the Warrants were recorded as an increase to our additional paid-in capital in the accompanying Consolidated Financial Statements. The Note Hedges are transactions that are separate from the terms of the Convertible Notes and the Warrants, and holders of the Convertible Notes and the Warrants have no rights with respect to the Note Hedges. The Warrants are similarly separate in both terms and rights from the Note Hedges and the Convertible Notes. |
Stock-based Expense and Employe
Stock-based Expense and Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Expense and Employee Benefits | Stock-based Expense and Employee Benefits Stock-based Expense Our Amended and Restated 1998 Stock Incentive Plan (“Stock Incentive Plan”) provided for awards which could be granted in the form of incentive stock options, non-qualified stock options, restricted stock, stock appreciation rights, and performance restricted stock. In August 2010, we discontinued issuance of new awards under the Stock Incentive Plan and concurrently adopted the 2010 Equity Incentive Plan (“Equity Incentive Plan”). The Equity Incentive Plan, as amended, provides for awards which may be granted in the form of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, and performance shares under substantially the same terms as the Stock Incentive Plan. We also grant awards to our directors under the Equity Incentive Plan. Prior to 2010, these awards were generally in the form of stock options. Beginning in 2010, the awards granted to our directors are generally in the form of restricted stock. The awards granted to directors generally vest ratably over a period of four quarters; however, should a director leave the board, we have the right to repurchase shares as if the awards vested on a pro rata basis. Our board of directors periodically approves increases to the number of shares of common stock reserved for issuance under the Equity Incentive Plan. At both December 31, 2018 and 2017 , there were 27,634,259 shares of our common stock reserved for awards under the Equity Incentive Plan. The Plan permits the exercise of stock options and grants of restricted stock to be fulfilled through the issuance of previously authorized but unissued common stock shares, or the reissuance of shares held in treasury. Beginning in March 2017, we began to primarily utilize treasury shares when stock options are exercised or restricted stock is granted. Prior to that point, we generally utilized unissued common stock shares to satisfy these items. The following table represents a consolidated summary of our stock-based plan activity: Year Ended December 31, 2018 2017 2016 (in thousands) Total compensation expense recognized $ 50,641 $ 45,835 $ 36,852 Cash proceeds related to stock-based expense transactions $ 13,163 $ 27,014 $ 28,490 Aggregate grant-date fair value of shares and stock options that vested during the year $ 49,711 $ 48,662 $ 28,624 Total unrecognized compensation expense related to our stock-based expense plans was $73.8 million at December 31, 2018 , and is expected to be recognized over a weighted average period of 1.9 years. Stock Option Awards Stock options granted prior to February 2014 generally vested over a period of sixteen quarters, with 75% vesting ratably over fifteen quarters and the remaining 25% vesting in the sixteenth quarter. Beginning in February 2014, stock options granted generally vested ratably over a period of twelve quarters. Expense is recognized over the requisite service period in a manner that reflects the vesting of the related awards. Awards under the plan generally expire ten years from the date of the grant. All outstanding options were granted at exercise prices equal to or exceeding our estimate of the fair market value of our common stock at the date of grant. The following table summarizes stock option transactions under our Stock Incentive Plan and Equity Incentive Plan: Number of Shares Range of Exercise Prices Weighted Average Exercise Price Balance as of January 1, 2016 5,801,873 $ 0.91 – $ 29.50 $ 19.43 Exercised (1,568,699 ) 1.68 – 27.18 18.16 Forfeited/cancelled (625,431 ) 4.28 – 29.50 21.77 Expired (654 ) 0.91 – 0.91 0.91 Balance at December 31, 2016 3,607,089 2.55 – 29.50 19.58 Exercised (1,344,569 ) 5.04 – 29.50 20.09 Forfeited/cancelled (61,892 ) 15.19 – 25.70 19.66 Expired (163 ) 2.55 – 2.82 2.73 Balance at December 31, 2017 2,200,465 4.28 – 29.50 19.26 Exercised (658,564 ) 4.92 – 29.50 20.00 Forfeited/cancelled (11,329 ) 15.19 – 25.70 18.85 Expired (2,250 ) 7.00 – 7.00 7.00 Balance at December 31, 2018 1,528,322 4.28 – 29.50 18.96 The below table provides information regarding outstanding stock options which were fully vested and expected to vest and exercisable options at December 31: 2018 2017 Options Fully Vested Options Exercisable Options Fully Vested and Expected to Vest Options Exercisable Number of options 1,528,322 1,528,322 2,200,465 1,999,278 Weighted-average remaining contractual term (in years) 4.1 4.1 5.5 5.3 Weighted-average exercise price $ 18.96 $ 18.96 $ 19.26 $ 19.16 Aggregate intrinsic value, in thousands $ 44,674 $ 44,674 $ 55,106 $ 50,257 The aggregate intrinsic value of options exercised during the years ended December 31, 2018 , 2017 , and 2016 , was $23.0 million , $25.1 million , and $11.3 million , respectively. There were no stock options awarded during the years ended December 31, 2018 , 2017 , and 2016 . Restricted Stock Awards Restricted stock awards entitle the holder to receive shares of our common stock as the award vests. Grants of restricted stock are classified as time-based, market-based, or performance-based depending on the vesting criteria of the award. Time-based restricted stock awards: Time-based restricted stock awards granted prior to February 2014, generally vest ratably over sixteen quarters following the date of grant. Awards granted during 2014 and 2015, generally vest ratably over a period of twelve quarters beginning on the first day of the quarter immediately following the grant date. Beginning in 2016, awards granted generally vest ratably over a period of twelve quarters beginning on the first day of the second calendar quarter immediately following the grant date. The fair value of time-based restricted stock awards is based on the closing price of our common stock on the date of grant. Compensation expense for time-based restricted stock awards is recognized over the vesting period on a straight-line basis. A summary of time-based restricted stock award activity is presented in the table below. Number of Shares Weighted Average Grant-Date Fair Value Non-vested shares at January 1, 2016 1,068,706 $ 20.05 Granted 1,793,257 20.79 Vested (841,983 ) 20.14 Forfeited/cancelled (386,479 ) 20.21 Non-vested shares at December 31, 2016 1,633,501 20.78 Granted 1,359,578 36.25 Vested (953,749 ) 23.73 Forfeited/cancelled (283,342 ) 28.01 Non-vested shares at December 31, 2017 1,755,988 30.05 Granted 1,289,866 53.26 Vested (1,017,367 ) 31.92 Forfeited/cancelled (242,675 ) 40.70 Non-vested shares at December 31, 2018 1,785,812 44.34 Market-based restricted stock awards: Market-based restricted stock awards become eligible for vesting upon the achievement of specific market-based conditions based on the per share price of our common stock. Shares that become eligible to vest, if any, become Eligible Shares. Eligible Shares generally vest ratably over a period of four quarters, beginning on the first day of the quarter immediately after they become Eligible Shares. Vesting is conditional upon the recipient remaining a service provider to us, as defined in the plan document, through each applicable vesting date. A summary of market-based restricted stock award activity is presented in the table below. Number of Shares Weighted Average Grant-Date Fair Value Balance as of January 1, 2016 1,015,095 $ 11.85 Granted 794,025 13.58 Vested (51,250 ) 12.52 Forfeited/cancelled (193,710 ) 11.61 Balance at December 31, 2016 1,564,160 12.73 Granted 535,441 28.18 Vested (1,407,133 ) 13.69 Forfeited/cancelled (2,303 ) 13.34 Balance at December 31, 2017 690,165 22.76 Granted 517,364 35.66 Vested (677,857 ) 23.02 Balance at December 31, 2018 529,672 35.03 We estimate the fair value of market-based restricted stock awards using a discrete model to analyze the fair value of the subject shares. The discrete model utilizes multiple stock price-paths, through the use of Monte Carlo simulation, which are then analyzed to determine the fair value of the subject shares. The weighted average of assumptions used to value awards granted during 2018 , 2017 , and 2016 were as follows: 2018 2017 2016 Risk-free interest rate 2.5 % 1.8 % 1.1 % Expected volatility 31.2 % 31.6 % 41.5 % Risk-free interest rate. We estimated the risk-free rate from the three year U.S. Treasury strip note yield curve as of the valuation date. Expected volatility. We estimate expected volatility based on our historic and implied volatility rate. Expense related to the market-based restricted stock awards is recognized over the requisite service period using the graded-vesting attribution method. The requisite service period is a measure of the expected time to achieve the specified market condition plus the time-based vesting period. The expected time to achieve the market condition is estimated utilizing a Monte Carlo simulation, considering only those stock price-paths in which the market condition is achieved. The estimated requisite service period for market-based restricted stock shares issued in 2018 ranged from six to ten quarters. Market-based restricted stock awards granted in 2017 had requisite service periods ranging from five to seven quarters. Employee Benefit Plans In 1998, our board of directors approved a defined contribution plan that provides retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code. Our 401(k) Plan (“Plan”) covers substantially all employees who meet a minimum service requirement. Contributions of $4.2 million , $2.9 million , and $2.4 million were made by us under the Plan for the years ended December 31, 2018 , 2017 , and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments We lease office facilities and equipment for various terms under long-term, non-cancellable operating lease agreements. The leases expire at various dates through 2028 and provide for renewal options. The agreements generally require us to pay for executory costs such as real estate taxes, insurance, and repairs. In May 2015, we entered into a lease agreement for office space located in Richardson, Texas to serve as our new corporate headquarters and data center. The lease is for a term of twelve years , beginning in 2016, and includes optional extension periods. The lease agreement contains provisions for rent escalations over the term of the lease and leasehold improvement incentives. We completed the move of our corporate headquarters and data center to this new facility in the third quarter of 2016. Our lease for our previous corporate headquarters expired in December 2016. Rent expense was $15.8 million , $13.8 million , and $14.7 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Minimum annual rental commitments under non-cancellable operating leases, net of sublease income amounts, were as follows at December 31, 2018 : Minimum Lease Commitments (in thousands) 2019 $ 16,996 2020 12,650 2021 11,485 2022 10,433 2023 10,229 Thereafter 38,416 $ 100,209 Guarantor Arrangements We have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The term of the indemnification period is for the officer or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have a director and officer insurance policy that limits our exposure and enables us to recover a portion of any future amounts paid. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal. Accordingly, we had no liabilities recorded for these agreements as of December 31, 2018 or 2017 . In the ordinary course of our business, we include standard indemnification provisions in our agreements with our clients. Pursuant to these provisions, we indemnify our clients for losses suffered or incurred in connection with third-party claims that our products infringed upon any U.S. patent, copyright, trademark, or other intellectual property right. Where applicable, we generally limit such infringement indemnities to those claims directed solely to our products and not in combination with other software or products. With respect to our products, we also generally reserve the right to resolve such claims by designing a non-infringing alternative, by obtaining a license on reasonable terms, or by terminating our relationship with the client and refunding the client’s fees. The potential amount of future payments to defend lawsuits or settle indemnified claims under these indemnification provisions is unlimited in certain agreements; however, we believe the estimated fair value of these indemnification provisions is minimal, and, accordingly, we had no liabilities recorded for these agreements as of December 31, 2018 or 2017 . Litigation From time to time, in the normal course of our business, we are a party to litigation matters and claims. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and our view of these matters may change in the future as the litigation and events related thereto unfold. We expense legal fees as incurred. Insurance recoveries associated with legal costs incurred are recorded when they are deemed probable of recovery. As previously disclosed, in March 2015, we were named in a purported class action lawsuit in the United States District Court for the Eastern District of Pennsylvania, styled Stokes v. RealPage, Inc. , Case No. 2:15-cv-01520. The claims in this purported class action relate to alleged violations of the Fair Credit Reporting Act (“FCRA”) in connection with background screens of prospective tenants of our clients. As previously disclosed, in November 2014, we were named in a purported class action lawsuit in the United States District Court for the Eastern District of Virginia, styled Jenkins v. RealPage, Inc. , Case No. 3:14cv758. The claims in this purported class action relate to alleged violations of the FCRA in connection with background screens of prospective tenants of our clients. Following various procedural motions, on June 19, 2017, the court in both the Stokes case and Jenkins case consolidated the cases, for purposes of settlement. On June 30, 2017, the parties signed a Settlement Agreement and Release covering both cases, and the plaintiffs in the consolidated cases filed an uncontested motion for preliminary approval of the class action settlement and the notice to the class. On August 3, 2017, the court issued a written order preliminarily approving the proposed class settlement. Following the final approval hearing on February 6, 2018, the court entered an order granting final approval of the settlement. On February 23, 2015, we received from the Federal Trade Commission (“FTC”) a Civil Investigative Demand consisting of interrogatories and a request to produce documents relating to our compliance with the FCRA. We responded to the request and requests for additional information by the FTC. On November 2, 2017, the FTC staff informed us of its belief that there was a basis for claims that could include monetary and injunctive relief against us for failing to follow reasonable procedures to assure maximum possible accuracy of our tenant screening reports. We believe that our business practices did not, and do not, violate the FCRA or any other laws. In October 2018, we reached a settlement with the FTC resolving all issues raised by the FTC related to this matter. Under the settlement, we paid $3.0 million to the FTC and agreed to continue to comply with the FCRA. The settlement does not require any changes to our current business practices. At December 31, 2018 and 2017 , we had accrued amounts for estimated settlement losses related to legal matters. We do not believe there is a reasonable possibility that a material loss exceeding amounts already recognized may have been incurred as of the date of the balance sheets presented herein. We are involved in other legal proceedings and claims, including purported class action lawsuits, not described above that are not likely to be material either individually or in the aggregate based on information available at this time. Our view of these matters may change as the litigation and events related thereto unfold. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income per Share Basic net income per share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by using the weighted average number of common shares outstanding, after giving effect to all potential dilutive common shares outstanding during the period. Included within net income per share is the dilutive effect of outstanding stock options and restricted stock using the treasury stock method. Weighted average shares from common share equivalents in the amount of 286,449 , 193,274 , and 220,473 were excluded from the dilutive shares outstanding because their effect was anti-dilutive for the years ended December 31, 2018 , 2017 , and 2016 , respectively. For purposes of considering the Convertible Notes in determining diluted net income per share, it is our current intent to settle conversions of the Convertible Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount (the “conversion premium”) in shares of our common stock. Therefore, only the impact of the conversion premium is included in total dilutive weighted average shares outstanding using the treasury stock method. The dilutive effect of the conversion premium is shown in the table below. The Warrants sold in connection with the issuance of the Convertible Notes are considered to be dilutive when the average price of our common stock during the period exceeds the Warrants’ strike price of $57.58 per share. The effect of the additional shares that may be issued upon exercise of the Warrants is included in total dilutive weighted average shares outstanding using the treasury stock method and is shown in the table below. The Note Hedges purchased in connection with the issuance of the Convertible Notes are considered to be anti-dilutive and therefore do not impact our calculation of diluted net income per share. Refer to Note 8 for further discussion regarding the Convertible Notes. We exclude common shares subject to a holdback pursuant to business combinations from the calculation of basic weighted average shares outstanding where the release of such shares is contingent upon an event not solely subject to the passage of time. As of December 31, 2018 , there were approximately 196,000 contingently returnable shares related to our acquisitions of ClickPay and BluTrend, which were excluded from the computation of basic net income per share as these shares are subject to sellers’ indemnification obligations and are subject to a holdback. There were no contingently returnable shares as of December 31, 2017 , and 2016 . Dilutive common shares outstanding include the weighted average contingently issuable shares discussed above that are subject to a holdback, as well as the weighted average contingently issuable shares to be issued subject to a holdback on the first anniversary dates of the ClickPay and BluTrend acquisitions. These shares are subject to release to the sellers on the first and second anniversary dates of the acquisitions but are contingent on the sellers’ indemnification obligations. Refer to Note 3 for further discussion regarding the ClickPay and BluTrend acquisitions. The following table presents the calculation of basic and diluted net income per share attributable to common stockholders: Year Ended December 31, 2018 2017 2016 (in thousands, except per share amounts) Numerator: Net income $ 34,725 $ 377 $ 16,650 Denominator: Basic: Weighted average shares used in computing basic net income per share: 87,290 79,433 76,854 Diluted: Add weighted average effect of dilutive securities: Stock options and restricted stock 2,032 2,884 989 Convertible Notes and Warrants 1,948 81 — Contingently issuable shares in connection with our acquisitions 261 — — Weighted average shares used in computing diluted net income per share: 91,531 82,398 77,843 Net income per share: Basic $ 0.40 $ 0.00 $ 0.22 Diluted $ 0.38 $ 0.00 $ 0.21 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2018 2017 2016 (in thousands) Domestic $ 32,190 $ 12,424 $ 23,817 Foreign 2,110 2,817 3,669 Total $ 34,300 $ 15,241 $ 27,486 Our income tax expense consisted of the following components: Year Ended December 31, 2018 2017 2016 (in thousands) Current: Federal $ 666 $ 36 $ 401 State 295 578 756 Foreign 738 313 449 Total current income tax expense 1,699 927 1,606 Deferred: Federal (1,543 ) 14,620 9,055 State (255 ) (900 ) 235 Foreign (326 ) 217 (60 ) Total deferred income tax (benefit) expense (2,124 ) 13,937 9,230 Total income tax expense $ (425 ) $ 14,864 $ 10,836 The reconciliation of our income tax expense computed at the U.S. federal statutory tax rate to the actual income tax expense is as follows: Year Ended December 31, 2018 2017 2016 (in thousands) Expense derived by applying the Federal income tax rate to income before income taxes $ 7,203 $ 5,335 $ 9,620 State income tax, net of federal benefit (204 ) 135 735 Foreign income tax 26 (631 ) (922 ) Change in valuation allowance 734 — — Nondeductible expenses 2,187 1,606 545 Fair value adjustment on stock acquisition 33 (17 ) 150 Stock-based expense (11,788 ) (19,080 ) 285 Reduction in available Federal NOL — — 255 Federal income tax rate reduction — 25,070 — Deemed repatriation of foreign earnings — 2,211 — Base erosion and anti-abuse tax 1,117 — — Other 267 235 168 Total income tax expense $ (425 ) $ 14,864 $ 10,836 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Reserves, deferred revenue and accrued liabilities $ 17,120 $ 16,443 Stock-based expense 8,408 8,912 Net operating loss carryforwards and tax credits 56,210 42,119 Deferred tax assets before valuation allowance 81,738 67,474 Valuation allowance (1,251 ) (517 ) Total deferred tax assets, net of valuation allowance 80,487 66,957 Deferred tax liabilities: Property, equipment, and software (16,810 ) (15,378 ) Intangible assets (13,580 ) (3,940 ) Other (7,495 ) (2,752 ) Total deferred tax liabilities (37,885 ) (22,070 ) Net deferred tax assets $ 42,602 $ 44,887 In connection with our adoption of ASU 2014-09, as amended, in January 2018, we recognized additional net deferred tax liabilities of $0.8 million . The acquisition of the stock of ClickPay Services, Inc. in April 2018 resulted in an additional net deferred tax liability of approximately $4.9 million comprising additional deferred tax assets from federal NOLs of $0.9 million and deferred tax liabilities from intangible assets of $5.8 million . The acquisition of the stock of Rentlytics, Inc. in October 2018 resulted in an additional net deferred tax asset of approximately $1.0 million comprising additional deferred tax assets from federal NOLs of $3.7 million and deferred tax liabilities from intangible assets of $2.7 million . The acquisition of the stock of PEX Software Ltd and its subsidiary PEX Australia Ltd in October 2017 resulted in an additional net deferred tax liability of approximately $0.1 million . The acquisition of the stock of an On-Site subsidiary, in connection with the acquisition of certain discrete assets of On-Site Manager, Inc. in September 2017, resulted in additional deferred tax liabilities of $1.2 million , primarily related to intangible assets. On December 22, 2017, the Tax Reform Act was signed into law making significant changes to the Internal Revenue Code. Changes included, but were not limited to, a federal corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. As a result of the Tax Reform Act, we recorded $25.1 million of additional income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted, to reduce the carrying value of our net deferred tax assets to reflect the lower U.S. federal corporate tax rate. We also recognized tax expense of $2.2 million as a result of the deemed repatriation of foreign earnings. Also on December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of US GAAP in situations where a registrant did not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, we determined in 2017 that the $25.1 million of deferred tax expense recorded in connection with the remeasurement of our net deferred tax assets and the $2.2 million of tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings were provisional amounts and were reasonable estimates at December 31, 2017. In 2018, we completed our assessment of the effects of the adoption of the Tax Reform Act. There were no material changes to our original estimates. Because of the deemed repatriation discussed above, all of our estimated foreign earnings have been subjected to U.S. federal income tax. Foreign earnings generated after December 31, 2017, that are distributed to RealPage, Inc. as a dividend will receive a 100% dividends received deduction for federal income tax purposes, subject to certain limitations under Subpart F income and new global intangible low-taxed income (“GILTI”) regulations. We provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. We received no dividends from our foreign subsidiaries during 2018. We periodically evaluate the realizability of our deferred tax assets. If we determine that it is more likely than not that all or a portion of such assets are not realizable, we provide a valuation allowance against the assets. The determination of the level of valuation allowance, if any, required at any time is based on a forecast of future taxable income that includes many judgments and assumptions. Accordingly, it is at least reasonably possible that future changes in one or more assumptions may lead to a change in judgment regarding the level of valuation allowance required in future periods. In 2017, we recognized a $0.3 million valuation allowance against our state NOLs in connection with the adoption of ASU 2016-09, as discussed above, and recorded an additional valuation allowance of $0.2 million against the NOLs of one of our foreign subsidiaries. In 2018, we recorded an additional valuation allowance of $0.8 million against certain deferred tax assets associated with a portion of our stock compensation expense. We believe the realization of such assets in the future may be constrained by Internal Revenue Code Section 162(m) limitations on the deductibility of executive compensation when the underlying restricted shares vest. As of December 31, 2018 , our tax-effected federal, state, and international NOL carryforwards of $49.9 million , $5.0 million , and $0.1 million , respectively, and our combined federal, state and international tax credits of $1.2 million comprise a major component of our deferred tax assets. If not used, the underlying gross federal NOLs totaling $237.6 million will begin to expire in 2024 and the underlying state NOLs totaling $81.2 million will begin to expire in 2019 , with approximately $2.1 million expiring in the next five years . Approximately $0.1 million of our credits expire in 2026 , and the balance has no expiration date. Approximately $0.7 million of our tax credits will be fully realizable by 2021. Net operating losses that we have generated are not currently subject to the Section 382 limitation; however, $52.7 million of net operating losses generated by our subsidiaries prior to our acquisition of them are subject to the Section 382 limitation. The limitation on these pre-acquisition net operating loss carryforwards will fully expire in 2037. A cumulative change in ownership among material shareholders, as defined in Section 382 of the Internal Revenue Code, during a three year period also may limit utilization of the federal net operating loss carryforwards. As a result of our adoption of ASU 2016-09, we began to account for all excess tax benefits and deficits arising from current period stock transactions as part of our income tax provision effective January 1, 2017. During the years ended December 31, 2018 and 2017 , our tax provision was reduced by approximately $11.8 million and $19.1 million , respectively, as a result of excess stock compensation deductions from the vesting of restricted stock and the exercise of stock options during the year. Prior to the adoption of ASU 2016-09, we used the “with-and-without” method, as described in ASC 740, for purposes of determining when excess tax benefits had been realized. In 2016, we recognized excess stock compensation benefits from NOLs of $3.1 million , and these benefits were recognized as additions to paid-in capital and, thus, did not benefit our tax provision for those years. Our subsidiary in Hyderabad, India benefited from a tax holiday granted under the Software Technology Parks of India program that began upon commencement of business operations in 2008 and continued through March 31, 2011 . During this holiday period, we were required to pay a minimum alternative tax which was available to reduce our post-holiday tax liability. Effective July 8, 2013 , this subsidiary began to benefit from a tax holiday under the Special Economic Zone program. This benefit was initially granted for a five years period and applies to a portion of our operations in this location. The benefit was reduced from a 100% tax holiday to a 50% tax holiday in April 2018. As a result of this tax holiday, the Company realized tax savings of $0.1 million , $0.4 million , and $0.2 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Our subsidiary in Manila, Philippines has benefited from Philippines income tax holiday incentives pursuant to registration with the Philippine Economic Zone Authority (“PEZA”). At various times, we have had up to four PEZA projects that qualified for tax holiday status. As of September 30, 2018, the tax holidays on all but one project have expired. Tax savings realized under the Philippine tax holiday incentives were $0.3 million , $0.2 million , and $0.4 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Uncertain Tax Positions At December 31, 2018 and 2017 , we had no unrecognized tax benefits. Our policy is to include interest and penalties related to unrecognized income tax benefits in income tax expense, and as of December 31, 2018 and 2017 , there were no accrued interest and penalties. We file consolidated and separate tax returns in the U.S. federal jurisdiction and six foreign jurisdictions. We are no longer subject to U.S. federal income tax examinations for years before 2015 and are no longer subject to state and local income tax examinations by tax authorities for years before 2014 ; however, net operating losses from all years continue to be subject to examinations and adjustments for at least three years following the year in which the attributes are used. Our subsidiary, RealPage India Private Limited (“RealPage India”), is currently undergoing an income tax examination for the fiscal years beginning April 1, 2011, April 1, 2012, and April 1, 2013. The India income tax authorities have assessed RealPage India additional tax and interest of $0.9 million as a result of these examinations. We believe the assessments are incorrect and have appealed the decisions to the India Commissioner of Income Tax. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis: Interest rate swap agreements: The fair value of our interest rate derivatives are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy. We have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of our interest rate swaps. As a result, we determined that our interest rate swap valuation in its entirety is classified in Level 2 of the fair value hierarchy. Contingent consideration obligations: The fair value of the contingent consideration obligations include inputs not observable in the market and thus represent a Level 3 measurement. Contingent consideration obligations consist of potential obligations related to our acquisition activity. The amount to be paid under these obligations is contingent upon the achievement of stipulated operational or financial targets by the business subsequent to acquisition. The fair value for certain of our contingent consideration obligations is estimated using a probability weighted discount model which considers the achievement of the conditions upon which the respective contingent obligation is dependent. The probability of achieving the specified conditions is generally assessed by applying a Monte Carlo weighted-average model. Inputs into the valuation model include a discount rate specific to the acquired entity, a measure of the estimated volatility, and the risk free rate of return, which for the period ended December 31, 2017 was 16.3% , 24.0% and 1.6% , respectively. We also estimate the fair value of our contingent obligations based on management’s assessment of the probability of achievement of operational or financial targets. The fair value estimates consider the projected future operating or financial results for the factor upon which the respective contingent obligation is dependent. The fair value estimates are generally sensitive to changes in these projections. We develop the projected future operating results based on an analysis of historical results, market conditions, and the expected impact of anticipated changes in our overall business and/or product strategies. The following tables disclose the assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 , by the fair value hierarchy levels as described above: Fair Value at December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Assets: Interest rate swap agreements $ 923 $ — $ 923 $ — Liabilities: Interest rate swap agreements 413 — 413 — Contingent consideration related to the acquisition of: LeaseLabs 6,000 — — 6,000 Total liabilities measured at fair value $ 6,413 $ — $ 413 $ 6,000 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Assets: Interest rate swap agreements $ 1,329 $ — $ 1,329 $ — Liabilities: Contingent consideration related to the acquisition of: AssetEye 247 — — 247 Axiometrics 167 — — 167 Total liabilities measured at fair value $ 414 $ — $ — $ 414 There were no transfers between Level 1 and Level 2, or between Level 2 and Level 3 measurements during the years ended December 31, 2018 and 2017 . Changes in the fair value of Level 3 measurements for the reporting periods were as follows during the years ended December 31, 2018 and 2017 , in thousands: Balance at January 1, 2017 $ 541 Initial contingent consideration 812 Net gain on change in fair value (939 ) Balance at December 31, 2017 414 Initial contingent consideration 7,000 Settlements through cash payments (247 ) Net gain on change in fair value (1,167 ) Balance at December 31, 2018 $ 6,000 Gains and losses resulting from changes in the fair value of the above liabilities are included in “General and administrative” expense in the accompanying Consolidated Statements of Operations. Assets and liabilities measured at fair value on a non-recurring basis: Refer to Note 7 for further information about assets measured at fair value on a non-recurring basis at December 31, 2018 . There were no assets measured at fair value on non-recurring basis at December 31, 2017 . There were no liabilities measured at fair value on a non-recurring basis at December 31, 2018 and 2017 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Shelf Registration and Public Offering On May 21, 2018 , we filed a shelf registration statement on Form S-3 (File No. 333-225074) with the Securities and Exchange Commission (the “SEC”), which became effective upon filing. The shelf registration allows us to sell, from time to time, an unspecified number of shares of common stock; shares of preferred stock; debt securities; warrants to purchase shares of common stock, preferred stock, or other securities; purchase contracts; and units representing two or more of the foregoing securities. On May 29, 2018 , we consummated an underwritten public offering of 8.05 million shares of our common stock, which included 1.05 million shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. The offering was priced at $57.00 per share for total gross proceeds of $458.9 million . The aggregate net proceeds to us were $441.9 million , after deducting underwriting discounts and offering expenses in the aggregate amount of $16.9 million . Increase in Authorized Shares On June 5, 2018, our stockholders approved an amendment to our Certificate of Incorporation to increase the authorized number of shares of our Common Stock from 125,000,000 to 250,000,000 shares. Our board of directors had previously approved the amendment in 2018. Stock Repurchase Program In May 2014, our board of directors approved a share repurchase program authorizing the repurchase of up to $50.0 million of our outstanding common stock for a period of up to one year after the approval date. Shares repurchased under the plan are retired. Our board of directors approved a one year extension of this program in 2015, 2016, and 2017. This program expired in May 2018. In October 2018 , our board of directors approved a new share repurchase program authorizing the repurchase of up to $100.0 million of our outstanding common stock. The share repurchase program is effective through October 25, 2019 . Shares repurchased under the plan are retired. The excess of the purchase price over the common stock’s par value is allocated between additional paid in capital and retained earnings. The amount allocated to additional paid in capital is calculated as the current value of additional paid in capital per share of outstanding common stock and is applied to the number of shares repurchased. Any remaining amount is allocated to retained earnings. Repurchase activity during the years ended December 31, 2018 , 2017 and 2016 was as follows: Year Ended December 31, 2018 2017 2016 Number of shares repurchased 599,664 — 1,012,823 Weighted-average cost per share $ 46.83 $ — $ 20.98 Total cost of shares repurchased, in thousands $ 28,082 $ — $ 21,244 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments On March 31, 2016 , we entered into two interest rate swap agreements (collectively the “2016 Swap Agreements”), which are designed to mitigate our exposure to interest rate risk associated with a portion of our variable rate debt. The 2016 Swap Agreements cover an aggregate notional amount of $75.0 million from March 2016 to September 2019 by replacing the obligation’s variable rate with a blended fixed rate of 0.89% . On December 24, 2018 , we entered into two interest rate swap agreements (collectively the “2018 Swap Agreements”), which also are designed to mitigate our exposure to interest rate risk associated with a portion of our variable rate debt. The 2018 Swap Agreements cover an aggregate notional amount of $100.0 million from December 2018 to February 2022 by replacing the obligation’s variable rate with a blended fixed rate of 2.57% . We designated both the 2016 and 2018 Swap Agreements (collectively the “Swap Agreements”) as cash flow hedges of interest rate risk. The effective portion of changes in the fair value of the Swap Agreements is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in the fair value of the Swap Agreements is recognized directly in earnings. Amounts reported in accumulated other comprehensive income related to the Swap Agreements will be reclassified to interest expense as interest payments are made on our variable rate debt. We estimate that during the next twelve months, an additional $0.9 million will be reclassified to earnings as a decrease to interest expense. As of December 31, 2018 , the Swap Agreements were still outstanding. The table below presents the notional and fair values of the Swap Agreements as well as their classification on the Consolidated Balance Sheets as of December 31, 2018 and 2017 : Balance Sheet Location Notional Fair Value (in thousands) Derivatives designated as cash flow hedging instruments: Swap agreements as of December 31, 2018 Other assets $ 75,000 $ 923 Swap agreements as of December 31, 2018 Other long-term liabilities $ 100,000 $ 413 Swap agreements as of December 31, 2017 Other assets $ 75,000 $ 1,329 As of December 31, 2018 , we have not posted any collateral related to the Swap Agreements. If we had breached any of the Swap Agreement’s default provisions at December 31, 2018 , we could have been required to settle our obligations under the Swap Agreements at their termination value of $0.5 million . The table below presents the amount of gains and/or losses related to the effective and ineffective portions of the Swap Agreements and their location on the Consolidated Statements of Operations for the fiscal years ended December 31, 2018, 2017 and 2016 : Effective Portion Ineffective Portion Derivatives Designated as Cash Flow Hedges Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (in thousands) Year ended December 31, 2018: Swap agreements, net of tax $ 61 Interest expense and other $ 613 Interest expense and other $ (73 ) Year ended December 31, 2017: Swap agreements, net of tax $ 318 Interest expense and other $ 77 Interest expense and other $ (54 ) Year ended December 31, 2016: Swap agreements, net of tax $ 400 Interest expense and other $ (136 ) Interest expense and other $ 152 |
Customer Deposits Held in Restr
Customer Deposits Held in Restricted Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Funds Held for Others [Abstract] | |
Customer Deposits Held in Restricted Accounts | Customer Deposits Held in Restricted Accounts In connection with our payment processing services, we collect tenant funds and subsequently remit these tenant funds to our clients after varying holding periods. These funds are settled through our Originating Depository Financial Institution (“ODFI”) custodial accounts at major banks. The ODFI custodial account balance was $132.2 million and $74.8 million , and the related client deposit liability was $132.2 million and $74.9 million at December 31, 2018 and 2017 , respectively. The ODFI custodial account balances are included in our Consolidated Balance Sheets as restricted cash. The corresponding liability for these custodial balances is reflected as client deposits. In connection with the timing of our payment processing services, we are exposed to credit risk in the event of nonperformance by other parties, such as returned checks. We utilize credit analysis and other controls to manage the credit risk exposure. We have not experienced any material credit losses to date. Any expected losses are included in our allowance for doubtful accounts. The ODFI custodial accounts are in the name of RealPage wholly-owned subsidiaries. The obligations under the ODFI custodial account agreements are guaranteed by us. We offer invoice processing services to our clients as part of our overall utility management solution. This service includes the collection of invoice payments from our clients and the remittance of payments to the utility company. We had $15.1 million and $14.6 million in restricted cash and $15.1 million and $14.6 million in client deposits related to these services at December 31, 2018 and 2017 , respectively. In connection with our renter insurance products, we collect premiums from policy holders and subsequently remit the premium, net of our commission, to the underwriter. We maintain separate accounts for these transactions. We had $7.3 million and $6.6 million in restricted cash related to these renter insurance products at December 31, 2018 and 2017 , respectively. Related to these renter insurance products, we had $7.3 million and $6.6 million in client deposits at December 31, 2018 and 2017 , respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments Compstak In August 2016, we acquired a minority interest in Compstak, Inc. (“Compstak”), which is an unrelated company that specializes in the aggregation of commercial lease data. The shares we acquired represent an ownership interest of less than 20% . We evaluated our relationship with Compstak and determined we do not have significant influence over its operations nor is it economically dependent upon us. The carrying value of this investment at both December 31, 2018 and 2017 , was $3.0 million and is included in “Other assets” in the accompanying Consolidated Balance Sheets. WayBlazer In January 2018, we paid $2.0 million in cash in return for a convertible promissory note (“Note”) from WayBlazer, Inc. (“WayBlazer”), which was an unrelated company that specialized in an artificial intelligence platform for the travel industry. The Note bears interest at 8% per annum and matures in December 2020. On July 31, 2018, WayBlazer voluntarily filed Chapter 7 bankruptcy and ceased all operations. We have begun foreclosure proceedings and will attempt to recover the value of our investment through our first priority security interest in WayBlazer’s intellectual property. During the third quarter of 2018, we were unable to determine the fair value of a recovery, if any, and therefore determined our investment in WayBlazer to be fully impaired, resulting in a non-operating loss of $2.0 million recognized in “Interest expense and other, net” in the accompanying Consolidated Statements of Operations. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data (unaudited) The following is unaudited quarterly financial information for the years ended December 31, 2018 and 2017 (in thousands, except per share amounts). Three Months Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, Revenue: On demand $ 218,051 $ 215,413 $ 206,945 $ 193,300 $ 180,104 $ 161,578 $ 154,727 $ 146,213 Professional and other 8,923 9,540 9,307 8,001 7,576 7,480 6,579 6,706 Total revenue 226,974 224,953 216,252 201,301 187,680 169,058 161,306 152,919 Gross profit 129,482 130,467 125,183 120,169 111,132 97,767 92,700 89,066 Net income (loss) 6,272 9,073 8,479 10,901 (20,865 ) 6,834 6,213 8,195 Net income (loss) per share attributable to common stockholders: Basic $ 0.07 $ 0.10 $ 0.10 $ 0.13 $ (0.26 ) $ 0.09 $ 0.08 $ 0.10 Diluted 0.07 0.09 0.09 0.13 (0.26 ) 0.08 0.08 0.10 The above quarterly financial information should be read in conjunction with the Consolidated Financial Statements and notes thereto included herein. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS REALPAGE, INC. December 31, 2018 (in thousands) Accounts receivable allowances Balance at Beginning of Year Adoption of ASC 606 Additions Charged to Income (2) Deductions (3) Balance at End of Year Year ended December 31: 2016 $ 2,318 $ — $ 4,786 $ (4,636 ) $ 2,468 2017 2,468 — 4,458 (2,975 ) 3,951 2018 (1) 3,951 4,702 17,180 (16,983 ) 8,850 Accounts receivable allowances represent a reserve for credits and an estimate for uncollectible accounts. (1) In 2018, we adopted ASU 2014-09, under the modified retrospective method. Under the new standard, we accrue for credit accommodations in our reserve during the month of billing, and credits reduce this reserve when issued. Comparative information from prior year periods has not been restated and continues to be reported under the accounting standards in effect for those periods. (2) Allowance for doubtful accounts are charged to expense. Credit accommodations are charged to revenue. (3) Applied credits and uncollectible accounts written off, net of recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and footnotes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of RealPage, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Effective with the quarter ended September 30, 2018, we changed the presentation of our Consolidated Statements of Operations to add “Amortization of product technologies” and “Amortization of intangible assets” as separate line items within such statements. Amounts shown as amortization of product technologies were previously included within “Cost of revenue”, and amounts shown as amortization of intangible assets were previously included within the “Sales and marketing” operating expense category. We believe this revised presentation helps readers of our financial statements isolate non-cash amortization expenses that arise from our acquisitions and internally developed software. Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such significant estimates include, but are not limited to, the determination of the allowances against our accounts receivable; useful lives of intangible assets; impairment assessments on long-lived assets (including goodwill); contingent commissions related to the sale of insurance products; fair value of acquired net assets and contingent consideration in connection with business combinations; the nature and timing of satisfaction of performance obligations and related reserves; fair values of stock-based awards; loss contingencies; and the recognition, measurement and valuation of current and deferred income taxes. Actual results could differ from these estimates. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the result of which forms the basis for making judgments about the carrying value of assets and liabilities |
Concentrations of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Our cash accounts are maintained at various high credit, quality financial institutions and may exceed federally insured limits. We have not experienced any losses in such accounts. Substantially all of our accounts receivable are derived from clients in the residential rental housing market. Concentrations of credit risk with respect to accounts receivable and revenue are limited due to a large, diverse customer base. We do not require collateral from clients. We maintain an allowance for doubtful accounts based upon the expected collectability of accounts receivable. |
Segment and Geographic Information | Segment and Geographic Information Our chief operating decision maker is our Chief Executive Officer, who reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we have determined we operate as a single operating segment. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an initial maturity of three months or less at the date of purchase to be cash equivalents. The fair value of our cash and cash equivalents approximates carrying value. |
Restricted Cash and Customer Deposits Held in Restricted Accounts | Restricted cash consists of cash collected from tenants that will be remitted primarily to our clients. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily represent trade receivables from clients recorded at the invoiced amount, net of allowances, which are based on our historical experience, the aging of our trade receivables, and management judgment. Trade receivable are written off against the allowance when management determines a balance is uncollectible. |
Property, Equipment and Software | Property, Equipment, and Software Property, equipment, and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives: Data processing and communications equipment 3 - 5 years Furniture, fixtures, and other equipment 3 - 5 years Software 3 - 5 years Leasehold improvements Shorter of lease term or estimated useful life Software includes both purchased and internally developed software. Gains and losses from asset disposals are included in the line “General and administrative” in the Consolidated Statements of Operations. |
Internally Developed Software | Internally Developed Software We capitalize certain development costs incurred in connection with software development for our solutions to be marketed to external users. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the technological feasibility stage, internal and external costs including costs of materials, services, and payroll and payroll-related costs for employees, are capitalized, if direct and incremental, until the software is available for general release to customers. Minor upgrades and enhancements are also expensed as incurred. Costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality are capitalized. Costs incurred to develop software intended solely for our internal use, such as internal administration and finance and accounting systems, are capitalized during the application development stage. Interest on funds used to finance internally developed software up to the date the asset is ready for its intended use, is capitalized and included in the cost of the asset if the asset is actively under development. Capitalized interest was not significant for any period presented. Amortization of internally developed software is included in “Amortization of product technologies” in the accompanying Consolidated Statements of Operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Tangible long-lived assets held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors we consider important that could trigger an impairment review include, but are not limited to, significant under-performance relative to current and historical or projected future operating results, significant changes in the manner of our use of the asset, or significant changes in our overall business and/or product strategies. If circumstances require that a long-lived asset group be tested for possible impairment, determination of recoverability is based on an estimate of the undiscounted cash flows expected to be generated by that long-lived asset or asset group. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, we would recognize an impairment charge equal to the excess of the carrying value over its fair value. |
Business Combinations | Business Combinations We allocate the fair value of the purchase consideration of our acquisitions to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Purchase consideration includes assets transferred, liabilities assumed, and/or equity interests issued by us, all of which are measured at their fair value as of the date of acquisition. Our business combination transactions may be structured to include a combination of up-front, deferred and contingent payments to be made at specified dates subsequent to the date of acquisition. These payments may include a combination of cash and equity. Deferred and contingent payments are included in the purchase consideration based on their fair value as of the acquisition date. Deferred obligations are generally subject to adjustments specified in the underlying purchase agreement related to the seller’s indemnification obligations. Contingent consideration is an obligation to make future payments to the seller contingent upon the achievement of future operational or financial targets. The fair value of these payments is estimated using a probability weighted discount model based on the achievement of the specified targets. The valuation of the net assets acquired as well as certain elements of purchase consideration require management to make significant estimates and assumptions, especially with respect to future expected cash flows, useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the measurement period, we may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. Changes to the fair value of contingent payments is reflected in “General and administrative” costs in the accompanying Consolidated Statements of Operations. Acquisition costs are expensed as incurred and are included in “General and administrative” in the accompanying Consolidated Statements of Operations. We include the results of operations from acquired businesses in our consolidated financial statements from the effective date of the acquisition. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets We test goodwill and indefinite-lived intangible assets for impairment separately on an annual basis in the fourth quarter of each year, or more frequently if circumstances indicate that the assets may not be recoverable. We evaluate impairment of goodwill either by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or by performing a quantitative assessment. If we choose to perform a qualitative assessment and after considering the totality of events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would perform a quantitative fair value test. To calculate any potential impairment, we compare the fair value of a reporting unit with its carrying amount, including goodwill. Any excess of the carrying amount of the reporting unit’s goodwill over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down. For purposes of goodwill impairment testing, we have one reporting unit. We quantitatively evaluate indefinite-lived intangible assets by estimating the fair value of those assets based on estimated future earnings derived from the assets using the income approach. Assets with indefinite lives that have been determined to be inseparable due to their interchangeable use are grouped into single units of accounting for purposes of testing for impairment. If the carrying amount of an identified intangible asset with an indefinite life exceeds its fair value, we would recognize an impairment loss equal to the excess of carrying value over fair value. |
Intangible Assets | Intangible Assets Intangible assets with determinable economic lives are carried at cost, less accumulated amortization. Our intangible assets are largely acquired in business combinations and include developed technologies, client relationships, vendor relationships, non-competition agreements and trade names. Intangible assets are amortized over the shorter of the contractual life or the estimated useful life. Intangible assets are amortized on a straight-line basis, except for client relationships which are amortized proportionately to the expected discounted cash flows derived from the asset. Estimated useful lives for intangible assets consist of the following: Developed technologies 3 - 7 years Client relationships 3 - 10 years Vendor relationships 7 years Trade names 1 - 7 years Non-competition agreements 5 - 10 years Amortization of acquired developed technologies is included in “Amortization of product technologies”, and amortization of acquired client relationships, vendor relationships, non-competition agreements and trade names is included in “Amortization of intangible assets” in the accompanying Consolidated Statements of Operations. |
Revenue Recognition | Deferred Revenue For several of our solutions, we invoice our clients in annual, monthly, or quarterly installments in advance of the commencement of the service period. Deferred revenue is recognized when billings are due or payments are received in advance of revenue recognition from our subscription and other services. Accordingly, the deferred revenue balance does not represent the total contract value of annual subscription agreements. Revenue Recognition Revenues are derived from on demand software solutions, professional services and other goods and services. We recognize revenue as we satisfy one or more service obligations under the terms of a contract, generally as control of goods and services are transferred to our clients. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We include estimates of variable consideration in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur. We estimate and accrue a reserve for credits and other adjustments as a reduction to revenue based on several factors, including past history. On Demand Revenue Our on demand revenue consists of license and subscription fees, transaction fees related to certain of our software-enabled value-added services, and commissions derived from our selling certain risk mitigation services. We generally recognize revenue from subscription fees on a straight-line basis over the access period beginning on the date that we make our service available to the client. Our subscription agreements generally are non-cancellable, have an initial term of one year or longer and are billed either monthly, quarterly or annually in advance. Non-refundable upfront fees billed at the initial order date that are not associated with an upfront service obligation are recognized as revenue on a straight-line basis over the period in which the client is expected to benefit, which we consider to be three years. We recognize revenue from transaction fees in the month the related services are performed based on the amount we have the right to invoice. We offer risk mitigation services to our clients by acting as an insurance agent and derive commission revenue from the sale of insurance products to our clients’ residents. The commissions are based upon a percentage of the premium that the insurance company charges to the policyholder and are subject to forfeiture in instances where a policyholder cancels prior to the end of the policy. Our contract with our underwriting partner provides for contingent commissions to be paid to us in accordance with the agreement. Our estimate of contingent commission revenue considers the variable factors identified in the terms of the applicable agreement. We recognize commissions related to these services as earned ratably over the policy term and insurance commission receivable in “Accounts receivable, less allowances”. Professional and Other Revenue Professional services and other revenues generally consist of the fees we receive for providing implementation and consulting services, submeter equipment and ongoing maintenance of our existing on premise licenses. Professional services are billed either on a time and materials basis or on a fixed price basis, and revenue is recognized over time as we perform the obligation. Professional services are typically sold bundled in a contract with other on demand solutions but may be sold separately. Professional service contracts sold separately generally have terms of one year or less. For bundled arrangements, where we account for individual services as a separate performance obligation, the transaction price is allocated between separate services in the bundle based on their relative standalone selling prices. Other revenues consist primarily of submeter equipment sales that include related installation services. Such sales are considered bundled, and revenue from these bundled sales is recognized in proportion to the number of installed units completed to date as compared to the total contracted number of unites to be provided and installed. For all other equipment sales, we generally recognize revenue when control of the hardware has transferred to our client. Revenue recognized for on premise software sales generally consists of annual maintenance renewals on existing term or perpetual license, which is recognized ratably over the service period. Contract with Multiple Performance Obligations The majority of the contracts we enter into with clients, including multiple contracts entered into at or near the same time with the same client, require us to provide one or more on demand software solutions, professional services and may include equipment. For these contracts, we account for individual performance obligations separately: i) if they are distinct or ii) if the promised obligation represents a series of distinct services that are substantially the same and have the same pattern of transfer to the client. Once we determine the performance obligations, we determine the transaction price, which includes estimating the amount of variable consideration, if any, to be included in the transaction price. For contracts with multiple performance obligations, we allocate the transaction price to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices of our service are estimated using a market assessment approach based on our overall pricing objectives taking into consideration market conditions and other factors including the number of solutions sold, client demographics and the number and types of users within our contracts. Sales, value add, and other taxes we collect from clients and remit to governmental authorities are excluded from revenues. Cost of Revenue Cost of revenue consists primarily of salaries and related personnel expenses of our operations and support personnel, including training and implementation services; expenses related to the operation of our data centers; fees paid to third-party providers; allocations of facilities overhead costs; and depreciation Revenue Recognition On January 1, 2018, we adopted the new revenue standard using the modified retrospective method for those contracts with remaining service obligations as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. We recorded a net increase to opening equity of $2.2 million as of January 1, 2018 as the cumulative effect of adopting the new revenue standard. The effect on revenues of adopting the new revenue standard for the fiscal year ended December 31, 2018 is presented in the “Impact on Consolidated Financial Statements” section below. Disaggregation of Revenue The following table presents our revenues disaggregated by major revenue source. Sales and usage-based taxes are excluded from revenues. Year Ended December 31, 2018 2017 2016 (in thousands) On demand Property management $ 186,975 $ 167,002 $ 152,890 Resident services 350,457 272,176 218,097 Leasing and marketing 166,361 123,804 116,505 Asset optimization 129,916 79,640 55,039 Total on demand revenue 833,709 642,622 542,531 Professional and other 35,771 28,341 25,597 Total revenue $ 869,480 $ 670,963 $ 568,128 On Demand Revenue We generate the majority of our on demand revenue by licensing software-as-a-service (“SaaS”) solutions to our clients on a subscription basis. Our SaaS solutions are provided pursuant to contractual commitments that typically include a promise that we will stand ready, on a monthly basis, to deliver access to our technology platform over defined service delivery periods. These solutions represent a series of distinct services that are substantially the same and have the same pattern of transfer to the client. Revenue from our SaaS solutions is generally recognized ratably over the term of the arrangement. Consideration for our on demand subscription services consist of fixed, variable and usage-based fees. We invoice a portion of our fees at the initial order date and then monthly or annually thereafter. Subscription fees are generally fixed based on the number of sites and the level of services selected by the client. We sell certain usage-based services, primarily within our property management, resident services and leasing and marketing solutions, to clients based on a fixed rate per transaction. Revenues are calculated based on the number of transactions processed monthly and will vary from month to month based on actual usage of these transaction-based services over the contract term, which is typically one year in duration. The fees for usage-based services are not associated with every distinct service promised in the series of distinct services we provide our clients. As a result, we allocate variable usage-based fees only to the related transactions and recognize them in the month that usage occurs. As part of our resident services offerings, we offer risk mitigation services to our clients by acting as an insurance agent and derive commission revenue from the sale of insurance products to our clients’ residents. The commissions are based upon a percentage of the premium that the insurance company underwriting partners charge to the policyholder and are subject to forfeiture in instances where a policyholder cancels prior to the end of the policy. The overall insurance services we provide represent a single performance obligation that qualifies as a separate series in accordance with the new revenue standard. Our contracts with our underwriting partners also provide for contingent commissions to be paid to us in accordance with the agreements. The contingent commissions are not associated with every distinct service promised in the series of distinct insurance services we provide. We generally accrue and recognize contingent commissions monthly based on estimates of the variable factors identified in the terms of the applicable agreements. Professional Services and Other Revenues Professional services and other revenues generally consist of the fees we receive for providing implementation and consulting services, submeter equipment and ongoing maintenance of our existing on premise licenses. Professional services revenues primarily consist of fees for implementation services, consulting services and training. Professional services are billed either on a fixed rate per hour (time) and materials basis or on a fixed price basis. Professional services are typically sold bundled in a contract with other on demand solutions but may be sold separately. For bundled arrangements, we allocate the transaction price to separate services based on their relative standalone selling prices if a service is separately identifiable from other items in the bundled arrangement and if a client can benefit from it on its own or with other resources readily available to the client. Other revenues consist of submeter equipment sales that include related installation services, sales of other equipment and on premise software sales. Submeter hardware and installation services are considered to be part of a single performance obligation due to the significance of the integration and interdependency of the installation services with the meter equipment. Our typical payment terms for submeter installations require a percentage of the overall transaction price to be paid upfront, with the remainder billed as progress payments. We recognize submeter revenue in proportion to the number of fully installed units completed to date as compared to the total contracted number of units to be provided and installed. For all other equipment sales, we generally recognize revenue when control of the hardware has transferred to our client, which occurs at a point in time, typically upon delivery to the client. The majority of on premise revenue consists of maintenance renewals from clients who renew for an additional one-year term. Maintenance renewal revenue is recognized ratably over the service period based upon the standalone selling price of that service obligation. Contract Balances Contract assets generally consist of amounts recognized as revenue before they can be invoiced to clients or amounts invoiced to clients prior to the period in which the service is provided where the right to payment is subject to conditions other than just the passage of time. These contract assets are included in “Accounts receivable” in the accompanying Consolidated Financial Statements and related disclosures. Contract liabilities are comprised of billings or payments received from our clients in advance of performance under the contract. We refer to these contract liabilities as “Deferred revenue” in the accompanying Consolidated Financial Statements and related disclosures. We recognized $113.7 million of on demand revenue during the year ended December 31, 2018 , which was included in the line “Deferred revenue” in the accompanying Consolidated Balance Sheets as of the beginning of the period. Contract Acquisition Costs We capitalize certain commissions as incremental costs of obtaining a contract with a client if we expect to recover those costs. The commissions are capitalized and amortized over a period of benefit determined to be three years . As of December 31, 2018 , the current and noncurrent balances of capitalized commissions costs recorded in the lines “Other current assets” and “Other assets” in the accompanying Consolidated Balance Sheets were $6.7 million and $7.8 million , respectively. During the year ended December 31, 2018 , we amortized commission costs totaling $5.4 million . No impairment loss was recognized in relation to these capitalized costs. Remaining Performance Obligations Certain clients commit to purchase our solutions for terms ranging from two to seven years. We expect to recognize approximately $414.7 million of revenue in the future related to performance obligations for on demand contracts with an original duration greater than one year that were unsatisfied or partially unsatisfied as of December 31, 2018 . Our estimate does not include amounts related to: • professional and usage-based services that are billed and recognized based on services performed in a certain period; • amounts attributable to unexercised contract renewals that represent a material right; or • amounts attributable to unexercised client options to purchase services that do not represent a material right. We expect to recognize revenue on approximately 68.8% of the remaining performance obligations over the next 24 months , with the remainder recognized thereafter. Revenue from remaining performance obligations for professional service contracts as of December 31, 2018 was immaterial. Impact on Consolidated Financial Statements The following tables summarize the effects of the adoption of ASU 2014-09 on selected line items within our Consolidated Statements of Operations and Balance Sheets: Year Ended December 31, 2018 As reported Balances without adoption of ASU 2014-09 Effect of Change (in thousands) Revenue On demand $ 833,709 $ 835,465 $ (1,756 ) Professional and other 35,771 32,886 2,885 Total revenue $ 869,480 $ 868,351 $ 1,129 Operating expenses Sales and marketing $ 166,607 $ 174,578 $ 7,971 Net income before income taxes $ 34,300 $ 25,200 $ 9,100 Income tax expense (benefit) (425 ) (2,608 ) (2,183 ) Net income $ 34,725 $ 27,808 $ 6,917 Balances at December 31, 2018 - as reported Balances at December 31, 2018 without adoption of ASU 2014-09 Effect of Change (in thousands) Assets Accounts receivable, less allowances $ 123,596 $ 130,742 $ (7,146 ) Other current assets $ 15,185 $ 8,198 $ 6,987 Other assets $ 20,393 $ 12,114 $ 8,279 Liabilities Current portion of deferred revenue $ 120,704 $ 125,078 $ (4,374 ) Deferred revenue $ 4,902 $ 4,902 $ — The adoption of ASU 2014-09 had no net effect on the Consolidated Statements of Cash Flows for the year ended December 31, 2018. |
Advertising Expenses | Sales and Marketing Expenses and Deferred Commissions Sales and marketing expenses consist primarily of personnel and related costs, including salaries, benefits, bonuses, commissions, travel, and stock-based compensation. Other costs included are marketing and promotional events, our annual user conference, and other online and product marketing costs. We amortize sales commissions that are directly attributable to a contract over an estimated customer benefit period of three years . |
Stock-Based Expense | Stock-Based Expense We recognize compensation expense related to stock options and shares of restricted stock based on the estimated fair value of the awards on the date of grant. We generally grant time-based stock options and restricted stock awards, which vest over a specified period of time, and market-based awards, which become eligible to vest only after the achievement of a condition based upon the trading price of our common stock and vest over a specified period of time thereafter. The fair value of employee stock options is estimated on the date of grant using a binomial option pricing model, the Black-Scholes model. The fair value of our market-based restricted stock awards is estimated using a discrete model based on multiple stock price-paths developed through the use of Monte Carlo simulation. For time-based stock options and restricted stock awards, expense is recognized on a straight-line basis over the requisite service period. Expense associated with market-based awards is recognized over the requisite service period using the graded-vesting attribution method. Share-based compensation is reduced for forfeitures once they occur. |
Income Taxes | Income Taxes Income taxes are recorded based on the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the effect of tax rate changes on current and accumulated deferred income taxes in the period in which the rate change was enacted. Valuation allowances are provided when it is more likely than not that all or a portion of the deferred tax asset will not be realized. The factors used to assess the need for a valuation allowance include historical earnings, our latest forecast of taxable income, and available tax planning strategies that could be implemented to realize the net deferred tax assets. We may recognize a tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. |
Fair Value Measurements | Fair Value Measurements We measure our derivative financial instruments and acquisition-related contingent consideration obligations at fair value at each reporting period using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3 - Inputs are derived from valuation techniques in which one or more of the significant inputs or value drivers are unobservable. The categorization of an asset or liability is based on the inputs described above and does not necessarily correspond to our perceived risk of that asset or liability. Moreover, the methods used by us may produce a fair value calculation that is not indicative of the net realizable value or reflective of future fair values. Furthermore, although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments and non-financial assets and liabilities could result in a different fair value measurement at the reporting date. Certain financial instruments, which may include cash, cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses are recorded at their carrying amounts, which approximates their fair values due to their short-term nature. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards Accounting Standards Update 2014-09 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09, as amended by certain supplementary ASU’s released in 2016, replaces all current GAAP guidance on this topic and eliminates all industry-specific guidance. The new revenue recognition standard requires the recognition of revenue when promised goods or services are transferred to clients in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers , which requires the deferral of incremental costs of obtaining a contract with a client. Collectively, we refer to Topic 606 and Subtopic 340-40 as the “new revenue standard” or “ASC 606.” We adopted the requirements of the new revenue standard on January 1, 2018 using the modified retrospective method and applied the guidance to contracts not substantially completed as of the date of initial application, or open contracts. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of 2018. Comparative information from prior year periods has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effects of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows: Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at (in thousands) Assets Accounts receivable, less allowances $ 124,505 $ (7,925 ) $ 116,580 Other current assets $ 6,622 $ 2,771 $ 9,393 Deferred tax assets, net $ 44,887 $ (780 ) $ 44,107 Other assets $ 11,010 $ 4,459 $ 15,469 Liabilities Current portion of deferred revenue $ 116,622 $ (3,696 ) $ 112,926 Stockholders’ Equity Accumulated deficit $ (75,046 ) $ 2,221 $ (72,825 ) Adoption of the new revenue standard resulted in changes to our accounting policies for revenue recognition, certain variable considerations, and commissions expense. The adoption of the new revenue standard did not have a significant effect on our revenue; however, it did have an impact on the timing of when we expense commission costs incurred to obtain a contract and the reserves we establish for variable consideration from credits or other pricing accommodations we provide our clients. We expect the effect of the new revenue standard to be immaterial to our revenue on an ongoing basis. The primary effect to our net income on an ongoing basis relates to the reserve for credit accommodations and deferral of incremental commission costs incurred to obtain new contracts. Under the new revenue standard, we accrue for credit accommodations in our reserve during the month of billing, and credits reduce this reserve when issued. Further, we now initially defer commission costs and amortize these costs to expense over a period of benefit that we have determined to be three years . Deferred commissions were capitalized for open contracts at the date of initial application and are capitalized for new contracts in 2018. See Note 4 for additional required disclosures related to the impact of adopting the new revenue standard and our accounting for costs to obtain a contract. Accounting Standards Update 2016-18 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash , which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. This ASU must be adopted retrospectively. We adopted ASU 2016-18 effective January 1, 2018. As a result of our adoption, changes in customer deposits held in restricted accounts will result in an increase or reduction in our cash flows from operating activities. Under previous rules, such changes were largely offset by the corresponding change in restricted cash and had a minimal impact on our statement of cash flows. The prior period financial statements included in this filing have been adjusted to reflect the adoption of ASU 2016-18. The effects of those adjustments to the Consolidated Statements of Cash Flows have been summarized in the table below: Originally Reported Effect of Change As Adjusted (in thousands) Statement of Cash Flows for the year ended December 31, 2017 Net cash provided by operating activities $ 137,327 $ 2,936 $ 140,263 Net cash used in investing activities $ (709,274 ) $ 9,412 $ (699,862 ) Cash, cash equivalents and restricted cash at end of period $ 69,343 $ 96,002 $ 165,345 Statement of Cash Flows for the year ended December 31, 2016 Net cash provided by operating activities $ 136,216 $ (6,767 ) $ 129,449 Net cash used in investing activities $ (145,141 ) $ 4,960 $ (140,181 ) Cash, cash equivalents and restricted cash at end of period $ 104,886 $ 83,654 $ 188,540 Accounting Standards Update 2016-01 In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10) in February 2018, which provides clarification on certain guidance issued under ASU 2016-01. Among other things, ASU 2016-01 eliminates the cost method of accounting and requires that investments in equity securities that were previously accounted for under the cost method must now be measured at fair value, with changes in fair value recognized in net income. Equity instruments that do not have readily determinable fair values may be measured at cost less impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. This ASU became effective on January 1, 2018. We hold an investment which was accounted for under the cost method of accounting prior to January 1, 2018, which does not have a readily determinable fair value and which has had no observable price change. Therefore, we continue to measure this investment at cost, less any impairment. The adoption of this standard did not have a material impact on our consolidated financial statements. Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The amendments in this update will be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently evaluating the impact of this ASU on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which expands an entity’s ability to apply hedge accounting for nonfinancial and financial risk components and allows for a simplified approach for fair value hedging of interest rate risk. Certain of the amendments in this ASU as they relate to cash flow hedges, eliminate the requirement to separately record hedge ineffectiveness currently in earnings. Instead, the entire change in the fair value of the hedging instrument is recorded in Other Comprehensive Income (“OCI”), and amounts deferred in OCI will be reclassified to earnings in the same income statement line item in which the earnings effect of the hedged item is reported. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. We will adopt this standard effective January 1, 2019 on a modified retrospective basis and will record a cumulative effect adjustment in the opening balance of retained earnings with an offsetting adjustment to other comprehensive income. Further, after adoption, the entire change in the fair value of our interest rate swaps will be recorded in other comprehensive income and reclassified into interest expense as interest payments are made on our variable rate debt. The changes in the ASU will not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018. The amendments in this ASU are to be applied through a cumulative-effect adjustment to retained earnings as of the first reporting period in which the ASU is effective. We have not yet selected a transition date and are currently evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new guidance requires lessees to recognize assets and liabilities arising from all leases with a lease term of more than 12 months, including those classified as operating leases under previous accounting guidance. It also requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, which provides for an optional transition method to allow companies to initially account for the impact of the adoption with a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. This eliminates the requirement to restate amounts presented prior to January 1, 2019. We will adopt the standard effective January 1, 2019 under the optional transition method, or modified retrospective approach. We have elected the package of practical expedient available under the transition provisions including: (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. We also plan to elect the practical expedient which will allow aggregation of non-lease components with the related lease components when evaluating accounting treatment. We have made an accounting policy election to exempt leases with an initial term of twelve months or less from balance sheet recognition. Instead, short-term leases will be expensed over the lease term. The adoption of this standard will materially impact our balance sheet by recognizing a right of use asset and lease liability between approximately $75.0 million and $100.0 million . The value of lease assets and lease liabilities recognized under ASU 2016-02 will change with the passage of time and from changes in specific facts and circumstances effecting the nature and timing of our contractual lease arrangements from period to period. As a result, the lease assets and lease liabilities that are recognized as of January 1, 2019 may not be indicative of amounts to be recognized in future periods. Adoption of this ASU will modify our ongoing analysis and disclosures of lease agreements. We have implemented a new lease software solution and continue to modify our business processes and internal controls as part of the adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Equipment and Software | Property, equipment, and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives: Data processing and communications equipment 3 - 5 years Furniture, fixtures, and other equipment 3 - 5 years Software 3 - 5 years Leasehold improvements Shorter of lease term or estimated useful life Property, equipment, and software consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Leasehold improvements $ 63,391 $ 59,179 Data processing and communications equipment 68,015 83,922 Furniture, fixtures, and other equipment 33,840 28,752 Software 131,437 107,924 Property, equipment, and software, gross 296,683 279,777 Less: Accumulated depreciation and amortization (143,155 ) (131,349 ) Property, equipment, and software, net $ 153,528 $ 148,428 |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Accrued compensation, payroll taxes, and benefits $ 29,405 $ 25,677 Sales tax obligations 3,673 4,930 Current portion of liabilities related to acquisitions 47,173 34,430 Lease-related liabilities 2,640 2,288 Other current liabilities 12,591 12,054 Total accrued expenses and other current liabilities $ 95,482 $ 79,379 |
Other Long-Term Liabilities | December 31, 2018 2017 (in thousands) Accrued compensation, payroll taxes, and benefits $ 29,405 $ 25,677 Sales tax obligations 3,673 4,930 Current portion of liabilities related to acquisitions 47,173 34,430 Lease-related liabilities 2,640 2,288 Other current liabilities 12,591 12,054 Total accrued expenses and other current liabilities $ 95,482 $ 79,379 Other long-term liabilities consisted of the following at December 31, 2018 and 2017 : |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effects of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows: Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at (in thousands) Assets Accounts receivable, less allowances $ 124,505 $ (7,925 ) $ 116,580 Other current assets $ 6,622 $ 2,771 $ 9,393 Deferred tax assets, net $ 44,887 $ (780 ) $ 44,107 Other assets $ 11,010 $ 4,459 $ 15,469 Liabilities Current portion of deferred revenue $ 116,622 $ (3,696 ) $ 112,926 Stockholders’ Equity Accumulated deficit $ (75,046 ) $ 2,221 $ (72,825 ) The effects of those adjustments to the Consolidated Statements of Cash Flows have been summarized in the table below: Originally Reported Effect of Change As Adjusted (in thousands) Statement of Cash Flows for the year ended December 31, 2017 Net cash provided by operating activities $ 137,327 $ 2,936 $ 140,263 Net cash used in investing activities $ (709,274 ) $ 9,412 $ (699,862 ) Cash, cash equivalents and restricted cash at end of period $ 69,343 $ 96,002 $ 165,345 Statement of Cash Flows for the year ended December 31, 2016 Net cash provided by operating activities $ 136,216 $ (6,767 ) $ 129,449 Net cash used in investing activities $ (145,141 ) $ 4,960 $ (140,181 ) Cash, cash equivalents and restricted cash at end of period $ 104,886 $ 83,654 $ 188,540 The following tables summarize the effects of the adoption of ASU 2014-09 on selected line items within our Consolidated Statements of Operations and Balance Sheets: Year Ended December 31, 2018 As reported Balances without adoption of ASU 2014-09 Effect of Change (in thousands) Revenue On demand $ 833,709 $ 835,465 $ (1,756 ) Professional and other 35,771 32,886 2,885 Total revenue $ 869,480 $ 868,351 $ 1,129 Operating expenses Sales and marketing $ 166,607 $ 174,578 $ 7,971 Net income before income taxes $ 34,300 $ 25,200 $ 9,100 Income tax expense (benefit) (425 ) (2,608 ) (2,183 ) Net income $ 34,725 $ 27,808 $ 6,917 Balances at December 31, 2018 - as reported Balances at December 31, 2018 without adoption of ASU 2014-09 Effect of Change (in thousands) Assets Accounts receivable, less allowances $ 123,596 $ 130,742 $ (7,146 ) Other current assets $ 15,185 $ 8,198 $ 6,987 Other assets $ 20,393 $ 12,114 $ 8,279 Liabilities Current portion of deferred revenue $ 120,704 $ 125,078 $ (4,374 ) Deferred revenue $ 4,902 $ 4,902 $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Allocated Purchase Price | We completed eight acquisitions during fiscal years 2017 and 2016 . A summary of each acquisition can be found in the table below: Date of Acquisition Aggregate Purchase Price Closing Cash Payment, Net of Cash Acquired Net Tangible Assets Acquired (Liabilities Assumed) Identified Intangible Assets Goodwill Recognized (in thousands) NWP Services Corporation March 2016 $ 68,183 $ 62,190 $ 18,314 $ 16,349 $ 33,520 AssetEye, Inc. May 2016 $ 4,911 $ 3,749 $ (928 ) $ 2,685 $ 3,154 eSupply Systems, LLC June 2016 $ 7,046 $ 5,461 $ 267 $ 3,585 $ 3,194 Axiometrics LLC January 2017 $ 73,757 $ 66,050 $ (5,963 ) $ 25,530 $ 54,190 American Utility Management June 2017 $ 69,412 $ 64,775 $ 1,107 $ 22,398 $ 45,907 On-Site Manager, Inc. September 2017 $ 251,109 $ 225,300 $ 3,197 $ 65,320 $ 182,592 PEX Software Limited October 2017 $ 6,031 $ 5,103 $ (369 ) $ 3,100 $ 3,300 Lease Rent Options December 2017 $ 299,923 $ 298,040 $ 5,263 $ 91,666 $ 202,994 The components of the purchase consideration and the preliminary allocation of each purchase price, including the effects of measurement period adjustments recorded as of December 31, 2018 , are as follows: ClickPay BluTrend LeaseLabs Rentlytics (in thousands) Fair value of purchase consideration: Cash, net of cash acquired $ 138,983 $ 8,500 $ 84,498 $ 47,895 Common stock issued at closing 48,034 — 5,300 — Deferred obligations, net 9,677 — 16,094 7,517 Noncontrolling interest financing 24,369 — — — Contingent consideration — — 7,000 — Total fair value of purchase consideration $ 221,063 $ 8,500 $ 112,892 $ 55,412 Fair value of net assets acquired: Restricted cash $ 1,313 $ — $ — $ — Accounts receivable 2,226 226 2,853 1,585 Property, equipment, and software 89 — 865 — Deferred tax asset, net — — — 988 Intangible assets: Developed product technologies 29,100 730 8,300 3,300 Client relationships 20,700 3,510 17,800 8,500 Trade names 2,900 30 1,100 400 Goodwill 173,250 3,887 84,674 42,351 Other assets 362 122 321 401 Accounts payable and accrued liabilities (2,698 ) (5 ) (696 ) (763 ) Client deposits held in restricted accounts (1,313 ) — — — Deferred revenue — — (2,325 ) (1,350 ) Deferred tax liability, net (4,866 ) — — — Total fair value of net assets acquired $ 221,063 $ 8,500 $ 112,892 $ 55,412 |
Schedule of Business Acquisitions Contingent Consideration | The following table presents changes in our deferred cash and stock obligations and contingent consideration for the fiscal years ended December 31, 2018 and 2017 : Deferred Cash and Stock Obligations Contingent Consideration Total (in thousands) Balance at January 1, 2017 $ 14,150 $ 541 $ 14,691 Additions, net of fair value discount 42,104 812 42,916 Cash payments (8,215 ) (700 ) (8,915 ) Accretion expense 1,049 — 1,049 Change in fair value — (239 ) (239 ) Indemnification claims and other adjustments (2,072 ) — (2,072 ) Balance at December 31, 2017 47,016 414 47,430 Additions, net of fair value discount 36,313 7,000 43,313 Cash payments (29,600 ) (247 ) (29,847 ) Accretion expense 1,970 — 1,970 Change in fair value — (1,167 ) (1,167 ) Indemnification claims and other adjustments (3,557 ) — (3,557 ) Balance at December 31, 2018 $ 52,142 $ 6,000 $ 58,142 |
Pro Forma Financial Information | Year Ended December 31, 2018 2017 (unaudited) (in thousands, except per share amounts) Total revenue $ 899,966 $ 809,987 Net income (loss) $ 27,969 $ (14,210 ) Net income (loss) per share: Basic $ 0.32 $ (0.18 ) Diluted $ 0.30 $ (0.18 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues disaggregated by major revenue source. Sales and usage-based taxes are excluded from revenues. Year Ended December 31, 2018 2017 2016 (in thousands) On demand Property management $ 186,975 $ 167,002 $ 152,890 Resident services 350,457 272,176 218,097 Leasing and marketing 166,361 123,804 116,505 Asset optimization 129,916 79,640 55,039 Total on demand revenue 833,709 642,622 542,531 Professional and other 35,771 28,341 25,597 Total revenue $ 869,480 $ 670,963 $ 568,128 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effects of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows: Balance at December 31, 2017 Adjustments due to ASU 2014-09 Balance at (in thousands) Assets Accounts receivable, less allowances $ 124,505 $ (7,925 ) $ 116,580 Other current assets $ 6,622 $ 2,771 $ 9,393 Deferred tax assets, net $ 44,887 $ (780 ) $ 44,107 Other assets $ 11,010 $ 4,459 $ 15,469 Liabilities Current portion of deferred revenue $ 116,622 $ (3,696 ) $ 112,926 Stockholders’ Equity Accumulated deficit $ (75,046 ) $ 2,221 $ (72,825 ) The effects of those adjustments to the Consolidated Statements of Cash Flows have been summarized in the table below: Originally Reported Effect of Change As Adjusted (in thousands) Statement of Cash Flows for the year ended December 31, 2017 Net cash provided by operating activities $ 137,327 $ 2,936 $ 140,263 Net cash used in investing activities $ (709,274 ) $ 9,412 $ (699,862 ) Cash, cash equivalents and restricted cash at end of period $ 69,343 $ 96,002 $ 165,345 Statement of Cash Flows for the year ended December 31, 2016 Net cash provided by operating activities $ 136,216 $ (6,767 ) $ 129,449 Net cash used in investing activities $ (145,141 ) $ 4,960 $ (140,181 ) Cash, cash equivalents and restricted cash at end of period $ 104,886 $ 83,654 $ 188,540 The following tables summarize the effects of the adoption of ASU 2014-09 on selected line items within our Consolidated Statements of Operations and Balance Sheets: Year Ended December 31, 2018 As reported Balances without adoption of ASU 2014-09 Effect of Change (in thousands) Revenue On demand $ 833,709 $ 835,465 $ (1,756 ) Professional and other 35,771 32,886 2,885 Total revenue $ 869,480 $ 868,351 $ 1,129 Operating expenses Sales and marketing $ 166,607 $ 174,578 $ 7,971 Net income before income taxes $ 34,300 $ 25,200 $ 9,100 Income tax expense (benefit) (425 ) (2,608 ) (2,183 ) Net income $ 34,725 $ 27,808 $ 6,917 Balances at December 31, 2018 - as reported Balances at December 31, 2018 without adoption of ASU 2014-09 Effect of Change (in thousands) Assets Accounts receivable, less allowances $ 123,596 $ 130,742 $ (7,146 ) Other current assets $ 15,185 $ 8,198 $ 6,987 Other assets $ 20,393 $ 12,114 $ 8,279 Liabilities Current portion of deferred revenue $ 120,704 $ 125,078 $ (4,374 ) Deferred revenue $ 4,902 $ 4,902 $ — |
Accounts Receivable and Other C
Accounts Receivable and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Trade receivables from clients $ 120,767 $ 115,354 Insurance commissions receivable 11,679 13,102 Accounts receivable, gross 132,446 128,456 Less: Allowances (8,850 ) (3,951 ) Accounts receivable, net $ 123,596 $ 124,505 |
Property, Equipment and Softw_2
Property, Equipment and Software (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Equipment and Software | Property, equipment, and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives: Data processing and communications equipment 3 - 5 years Furniture, fixtures, and other equipment 3 - 5 years Software 3 - 5 years Leasehold improvements Shorter of lease term or estimated useful life Property, equipment, and software consisted of the following at December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Leasehold improvements $ 63,391 $ 59,179 Data processing and communications equipment 68,015 83,922 Furniture, fixtures, and other equipment 33,840 28,752 Software 131,437 107,924 Property, equipment, and software, gross 296,683 279,777 Less: Accumulated depreciation and amortization (143,155 ) (131,349 ) Property, equipment, and software, net $ 153,528 $ 148,428 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill during the years ended December 31, 2018 and 2017 , were as follows, in thousands: Balance at January 1, 2017 $ 259,938 Goodwill acquired 491,079 Measurement period and other adjustments 35 Balance at December 31, 2017 751,052 Goodwill acquired 304,162 Measurement period and other adjustments (2,095 ) Balance at December 31, 2018 $ 1,053,119 |
Other Intangible Assets | Intangible assets consisted of the following at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization Net (in thousands) Finite-lived intangible assets: Developed technologies $ 207,310 $ (100,445 ) $ 106,865 $ 164,640 $ (76,577 ) $ 88,063 Client relationships 264,228 (107,155 ) 157,073 213,728 (78,390 ) 135,338 Vendor relationships 5,650 (5,650 ) — 5,650 (5,650 ) — Trade names 22,956 (10,682 ) 12,274 17,556 (4,325 ) 13,231 Non-compete agreements 4,173 (1,395 ) 2,778 4,173 (605 ) 3,568 Total finite-lived intangible assets 504,317 (225,327 ) 278,990 405,747 (165,547 ) 240,200 Indefinite-lived intangible assets: Trade names 8,388 — 8,388 12,137 — 12,137 Total intangible assets $ 512,705 $ (225,327 ) $ 287,378 $ 417,884 $ (165,547 ) $ 252,337 |
Estimated Amortization of Intangible Assets | The following table sets forth the estimated amortization of intangible assets for the years ending December 31, in thousands: 2019 $ 61,916 2020 52,679 2021 45,446 2022 35,686 2023 28,553 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Principal outstanding, and unamortized debt issuance costs for the Term Loans, were as follows at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Term Loan Delayed Draw Term Loan Term Loan Delayed Draw Term Loan (in thousands) Principal outstanding $ 114,990 $ 190,000 $ 120,356 $ 198,750 Unamortized issuance costs (171 ) (606 ) (233 ) (821 ) Unamortized discount (137 ) (361 ) (185 ) (490 ) Carrying value $ 114,682 $ 189,033 $ 119,938 $ 197,439 |
Schedule of Maturities of Long-term Debt | Future maturities of principal under the Term Loans are as follows for the years ending December 31, in thousands: Term Loans 2019 $ 16,133 2020 28,232 2021 32,266 2022 228,359 $ 304,990 |
Schedule of Convertible Debt | The following table sets forth total interest expense related to the Convertible Notes for the year ended December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Contractual interest expense $ 5,175 $ 3,119 Amortization of debt discount 10,322 5,991 Amortization of debt issuance costs 1,322 766 $ 16,819 $ 9,876 The net carrying amount of the Convertible Notes at December 31, 2018 and 2017 , was as follows: December 31, 2018 2017 (in thousands) Liability component: Principal amount $ 345,000 $ 345,000 Unamortized discount (46,235 ) (56,557 ) Unamortized debt issuance costs (5,922 ) (7,244 ) $ 292,843 $ 281,199 Equity component, net of issuance costs and deferred tax: $ 61,390 $ 61,390 |
Stock-based Expense (Tables)
Stock-based Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table represents a consolidated summary of our stock-based plan activity: Year Ended December 31, 2018 2017 2016 (in thousands) Total compensation expense recognized $ 50,641 $ 45,835 $ 36,852 Cash proceeds related to stock-based expense transactions $ 13,163 $ 27,014 $ 28,490 Aggregate grant-date fair value of shares and stock options that vested during the year $ 49,711 $ 48,662 $ 28,624 |
Summary of Stock Option Transactions Under Equity Plan, Stock Incentive Plan, Multifamily Technology Solutions Plan and Board Plan | The following table summarizes stock option transactions under our Stock Incentive Plan and Equity Incentive Plan: Number of Shares Range of Exercise Prices Weighted Average Exercise Price Balance as of January 1, 2016 5,801,873 $ 0.91 – $ 29.50 $ 19.43 Exercised (1,568,699 ) 1.68 – 27.18 18.16 Forfeited/cancelled (625,431 ) 4.28 – 29.50 21.77 Expired (654 ) 0.91 – 0.91 0.91 Balance at December 31, 2016 3,607,089 2.55 – 29.50 19.58 Exercised (1,344,569 ) 5.04 – 29.50 20.09 Forfeited/cancelled (61,892 ) 15.19 – 25.70 19.66 Expired (163 ) 2.55 – 2.82 2.73 Balance at December 31, 2017 2,200,465 4.28 – 29.50 19.26 Exercised (658,564 ) 4.92 – 29.50 20.00 Forfeited/cancelled (11,329 ) 15.19 – 25.70 18.85 Expired (2,250 ) 7.00 – 7.00 7.00 Balance at December 31, 2018 1,528,322 4.28 – 29.50 18.96 |
Outstanding Stock Options, Vested and Expected to Vest, Non-Vested and Stock Options Currently Exercisable | The below table provides information regarding outstanding stock options which were fully vested and expected to vest and exercisable options at December 31: 2018 2017 Options Fully Vested Options Exercisable Options Fully Vested and Expected to Vest Options Exercisable Number of options 1,528,322 1,528,322 2,200,465 1,999,278 Weighted-average remaining contractual term (in years) 4.1 4.1 5.5 5.3 Weighted-average exercise price $ 18.96 $ 18.96 $ 19.26 $ 19.16 Aggregate intrinsic value, in thousands $ 44,674 $ 44,674 $ 55,106 $ 50,257 |
Summary of Time-Based Restricted Share Awards' Activity | A summary of time-based restricted stock award activity is presented in the table below. Number of Shares Weighted Average Grant-Date Fair Value Non-vested shares at January 1, 2016 1,068,706 $ 20.05 Granted 1,793,257 20.79 Vested (841,983 ) 20.14 Forfeited/cancelled (386,479 ) 20.21 Non-vested shares at December 31, 2016 1,633,501 20.78 Granted 1,359,578 36.25 Vested (953,749 ) 23.73 Forfeited/cancelled (283,342 ) 28.01 Non-vested shares at December 31, 2017 1,755,988 30.05 Granted 1,289,866 53.26 Vested (1,017,367 ) 31.92 Forfeited/cancelled (242,675 ) 40.70 Non-vested shares at December 31, 2018 1,785,812 44.34 |
Market Based Restricted Stock Units Activity | A summary of market-based restricted stock award activity is presented in the table below. Number of Shares Weighted Average Grant-Date Fair Value Balance as of January 1, 2016 1,015,095 $ 11.85 Granted 794,025 13.58 Vested (51,250 ) 12.52 Forfeited/cancelled (193,710 ) 11.61 Balance at December 31, 2016 1,564,160 12.73 Granted 535,441 28.18 Vested (1,407,133 ) 13.69 Forfeited/cancelled (2,303 ) 13.34 Balance at December 31, 2017 690,165 22.76 Granted 517,364 35.66 Vested (677,857 ) 23.02 Balance at December 31, 2018 529,672 35.03 |
Restricted Stock Unit Valuation Assumptions | The weighted average of assumptions used to value awards granted during 2018 , 2017 , and 2016 were as follows: 2018 2017 2016 Risk-free interest rate 2.5 % 1.8 % 1.1 % Expected volatility 31.2 % 31.6 % 41.5 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments for Operating Leases | Minimum annual rental commitments under non-cancellable operating leases, net of sublease income amounts, were as follows at December 31, 2018 : Minimum Lease Commitments (in thousands) 2019 $ 16,996 2020 12,650 2021 11,485 2022 10,433 2023 10,229 Thereafter 38,416 $ 100,209 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net income per share attributable to common stockholders: Year Ended December 31, 2018 2017 2016 (in thousands, except per share amounts) Numerator: Net income $ 34,725 $ 377 $ 16,650 Denominator: Basic: Weighted average shares used in computing basic net income per share: 87,290 79,433 76,854 Diluted: Add weighted average effect of dilutive securities: Stock options and restricted stock 2,032 2,884 989 Convertible Notes and Warrants 1,948 81 — Contingently issuable shares in connection with our acquisitions 261 — — Weighted average shares used in computing diluted net income per share: 91,531 82,398 77,843 Net income per share: Basic $ 0.40 $ 0.00 $ 0.22 Diluted $ 0.38 $ 0.00 $ 0.21 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Income (Loss) before Provision for Income Taxes | The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2018 2017 2016 (in thousands) Domestic $ 32,190 $ 12,424 $ 23,817 Foreign 2,110 2,817 3,669 Total $ 34,300 $ 15,241 $ 27,486 |
(Benefit) Provision for Income Taxes | Our income tax expense consisted of the following components: Year Ended December 31, 2018 2017 2016 (in thousands) Current: Federal $ 666 $ 36 $ 401 State 295 578 756 Foreign 738 313 449 Total current income tax expense 1,699 927 1,606 Deferred: Federal (1,543 ) 14,620 9,055 State (255 ) (900 ) 235 Foreign (326 ) 217 (60 ) Total deferred income tax (benefit) expense (2,124 ) 13,937 9,230 Total income tax expense $ (425 ) $ 14,864 $ 10,836 |
Reconciliation of Income Tax (Benefit) Expense Computed at Federal Statutory Tax Rate to Actual Income Tax (Benefit) Expense | The reconciliation of our income tax expense computed at the U.S. federal statutory tax rate to the actual income tax expense is as follows: Year Ended December 31, 2018 2017 2016 (in thousands) Expense derived by applying the Federal income tax rate to income before income taxes $ 7,203 $ 5,335 $ 9,620 State income tax, net of federal benefit (204 ) 135 735 Foreign income tax 26 (631 ) (922 ) Change in valuation allowance 734 — — Nondeductible expenses 2,187 1,606 545 Fair value adjustment on stock acquisition 33 (17 ) 150 Stock-based expense (11,788 ) (19,080 ) 285 Reduction in available Federal NOL — — 255 Federal income tax rate reduction — 25,070 — Deemed repatriation of foreign earnings — 2,211 — Base erosion and anti-abuse tax 1,117 — — Other 267 235 168 Total income tax expense $ (425 ) $ 14,864 $ 10,836 |
Components of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Reserves, deferred revenue and accrued liabilities $ 17,120 $ 16,443 Stock-based expense 8,408 8,912 Net operating loss carryforwards and tax credits 56,210 42,119 Deferred tax assets before valuation allowance 81,738 67,474 Valuation allowance (1,251 ) (517 ) Total deferred tax assets, net of valuation allowance 80,487 66,957 Deferred tax liabilities: Property, equipment, and software (16,810 ) (15,378 ) Intangible assets (13,580 ) (3,940 ) Other (7,495 ) (2,752 ) Total deferred tax liabilities (37,885 ) (22,070 ) Net deferred tax assets $ 42,602 $ 44,887 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | The following tables disclose the assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 , by the fair value hierarchy levels as described above: Fair Value at December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Assets: Interest rate swap agreements $ 923 $ — $ 923 $ — Liabilities: Interest rate swap agreements 413 — 413 — Contingent consideration related to the acquisition of: LeaseLabs 6,000 — — 6,000 Total liabilities measured at fair value $ 6,413 $ — $ 413 $ 6,000 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Assets: Interest rate swap agreements $ 1,329 $ — $ 1,329 $ — Liabilities: Contingent consideration related to the acquisition of: AssetEye 247 — — 247 Axiometrics 167 — — 167 Total liabilities measured at fair value $ 414 $ — $ — $ 414 |
Schedule of liabilities measured on recurring basis | The following tables disclose the assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 , by the fair value hierarchy levels as described above: Fair Value at December 31, 2018 Total Level 1 Level 2 Level 3 (in thousands) Assets: Interest rate swap agreements $ 923 $ — $ 923 $ — Liabilities: Interest rate swap agreements 413 — 413 — Contingent consideration related to the acquisition of: LeaseLabs 6,000 — — 6,000 Total liabilities measured at fair value $ 6,413 $ — $ 413 $ 6,000 Fair Value at December 31, 2017 Total Level 1 Level 2 Level 3 (in thousands) Assets: Interest rate swap agreements $ 1,329 $ — $ 1,329 $ — Liabilities: Contingent consideration related to the acquisition of: AssetEye 247 — — 247 Axiometrics 167 — — 167 Total liabilities measured at fair value $ 414 $ — $ — $ 414 |
Changes in Level 3 fair value measurements | Changes in the fair value of Level 3 measurements for the reporting periods were as follows during the years ended December 31, 2018 and 2017 , in thousands: Balance at January 1, 2017 $ 541 Initial contingent consideration 812 Net gain on change in fair value (939 ) Balance at December 31, 2017 414 Initial contingent consideration 7,000 Settlements through cash payments (247 ) Net gain on change in fair value (1,167 ) Balance at December 31, 2018 $ 6,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Repurchase Agreements | Repurchase activity during the years ended December 31, 2018 , 2017 and 2016 was as follows: Year Ended December 31, 2018 2017 2016 Number of shares repurchased 599,664 — 1,012,823 Weighted-average cost per share $ 46.83 $ — $ 20.98 Total cost of shares repurchased, in thousands $ 28,082 $ — $ 21,244 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The table below presents the notional and fair values of the Swap Agreements as well as their classification on the Consolidated Balance Sheets as of December 31, 2018 and 2017 : Balance Sheet Location Notional Fair Value (in thousands) Derivatives designated as cash flow hedging instruments: Swap agreements as of December 31, 2018 Other assets $ 75,000 $ 923 Swap agreements as of December 31, 2018 Other long-term liabilities $ 100,000 $ 413 Swap agreements as of December 31, 2017 Other assets $ 75,000 $ 1,329 |
Derivative Instruments, Gain (Loss) | The table below presents the amount of gains and/or losses related to the effective and ineffective portions of the Swap Agreements and their location on the Consolidated Statements of Operations for the fiscal years ended December 31, 2018, 2017 and 2016 : Effective Portion Ineffective Portion Derivatives Designated as Cash Flow Hedges Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (in thousands) Year ended December 31, 2018: Swap agreements, net of tax $ 61 Interest expense and other $ 613 Interest expense and other $ (73 ) Year ended December 31, 2017: Swap agreements, net of tax $ 318 Interest expense and other $ 77 Interest expense and other $ (54 ) Year ended December 31, 2016: Swap agreements, net of tax $ 400 Interest expense and other $ (136 ) Interest expense and other $ 152 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | The following is unaudited quarterly financial information for the years ended December 31, 2018 and 2017 (in thousands, except per share amounts). Three Months Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, Revenue: On demand $ 218,051 $ 215,413 $ 206,945 $ 193,300 $ 180,104 $ 161,578 $ 154,727 $ 146,213 Professional and other 8,923 9,540 9,307 8,001 7,576 7,480 6,579 6,706 Total revenue 226,974 224,953 216,252 201,301 187,680 169,058 161,306 152,919 Gross profit 129,482 130,467 125,183 120,169 111,132 97,767 92,700 89,066 Net income (loss) 6,272 9,073 8,479 10,901 (20,865 ) 6,834 6,213 8,195 Net income (loss) per share attributable to common stockholders: Basic $ 0.07 $ 0.10 $ 0.10 $ 0.13 $ (0.26 ) $ 0.09 $ 0.08 $ 0.10 Diluted 0.07 0.09 0.09 0.13 (0.26 ) 0.08 0.08 0.10 |
The Company - Narrative (Detail
The Company - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2019USD ($) | May 31, 2018USD ($)customer | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |||
Client funds diverted | $ 6 | ||
Number of clients impacted | customer | 3 | ||
Receivable valuation allowance | $ 5 | ||
Loss in period | $ 5.4 | ||
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Proceeds from insurance settlement | $ 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)reporting_unit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | ||||
Cost of revenue | $ 328,382 | $ 258,135 | $ 225,539 | |
Selling and marketing | (166,607) | (140,473) | (122,457) | |
Bed debt expense | $ 3,700 | 3,200 | 2,400 | |
Number of reporting units | reporting_unit | 1 | |||
Revenue recognition access period (in years) | 3 years | |||
Advertising costs | $ 26,400 | 22,800 | 19,400 | |
Deferred commissions period of benefit | 3 years | |||
Lease-related liabilities | $ 2,640 | 2,288 | ||
North America | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Net long-lived assets | 144,300 | 140,000 | ||
International Subsidiaries | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Net long-lived assets | $ 9,200 | 8,400 | ||
Correction of Amortization of Intangibles | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Cost of revenue | 6,900 | 900 | ||
Selling and marketing | $ 6,900 | $ 900 | ||
Subsequent Event | Scenario, Forecast | Minimum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Right-of-use asset | $ 75,000 | |||
Lease-related liabilities | 75,000 | |||
Subsequent Event | Scenario, Forecast | Maximum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Right-of-use asset | 100,000 | |||
Lease-related liabilities | $ 100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Equipment and Software (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Data processing and communications equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life (in years) | 3 years |
Data processing and communications equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life (in years) | 5 years |
Furniture, fixtures and other equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life (in years) | 3 years |
Furniture, fixtures and other equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life (in years) | 5 years |
Software | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life (in years) | 3 years |
Software | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life (in years) | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives of Finite Lived Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Developed technologies | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 3 years |
Developed technologies | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 7 years |
Client relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 3 years |
Client relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 10 years |
Vendor relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 7 years |
Trade names | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 1 year |
Trade names | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 7 years |
Non-competition agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 5 years |
Non-competition agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Accrued compensation, payroll taxes, and benefits | $ 29,405 | $ 25,677 |
Sales tax obligations | 3,673 | 4,930 |
Current portion of liabilities related to acquisitions | 47,173 | 34,430 |
Lease-related liabilities | 2,640 | 2,288 |
Other current liabilities | 12,591 | 12,054 |
Total accrued expenses and other current liabilities | $ 95,482 | $ 79,379 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Accrued lease liability | $ 25,207 | $ 27,760 |
Liabilities related to acquisitions | 10,969 | 13,000 |
Other long-term liabilities | 1,014 | 753 |
Total other long-term liabilities | $ 37,190 | $ 41,513 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Effects of ASC 606 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Accounts receivable, less allowances | $ 123,596 | $ 116,580 | $ 124,505 |
Other current assets | 15,185 | 9,393 | 6,622 |
Deferred tax assets, net | 42,602 | 44,107 | 44,887 |
Other assets | 20,393 | 15,469 | 11,010 |
Liabilities | |||
Current portion of deferred revenue | 120,704 | 112,926 | 116,622 |
Stockholders’ equity: | |||
Accumulated deficit | (58,793) | (72,825) | (75,046) |
Balances without adoption of ASU 2014-09 | |||
Assets | |||
Accounts receivable, less allowances | 124,505 | ||
Other current assets | 6,622 | ||
Deferred tax assets, net | 44,887 | ||
Other assets | 11,010 | ||
Liabilities | |||
Current portion of deferred revenue | 116,622 | ||
Stockholders’ equity: | |||
Accumulated deficit | $ (75,046) | ||
Adjustments due to ASU 2014-09 | Balances without adoption of ASU 2014-09 | |||
Assets | |||
Accounts receivable, less allowances | 130,742 | ||
Other current assets | 8,198 | ||
Other assets | 12,114 | ||
Liabilities | |||
Current portion of deferred revenue | 125,078 | ||
Adjustments due to ASU 2014-09 | Effect of Change on Net Income Higher/(Lower) | |||
Assets | |||
Accounts receivable, less allowances | (7,146) | (7,925) | |
Other current assets | 6,987 | 2,771 | |
Deferred tax assets, net | (780) | ||
Other assets | 8,279 | 4,459 | |
Liabilities | |||
Current portion of deferred revenue | $ (4,374) | (3,696) | |
Stockholders’ equity: | |||
Accumulated deficit | $ 2,221 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Effects of Adoption of ASU 2016-18 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by operating activities | $ 244,807 | $ 140,263 | $ 129,449 |
Net cash used in investing activities | (331,296) | (699,862) | (140,181) |
End of period | $ 382,758 | 165,345 | 188,540 |
Originally Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by operating activities | 137,327 | 136,216 | |
Net cash used in investing activities | (709,274) | (145,141) | |
End of period | 69,343 | 104,886 | |
Accounting Standards Update 2016-18 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by operating activities | 2,936 | (6,767) | |
Net cash used in investing activities | 9,412 | 4,960 | |
End of period | $ 96,002 | $ 83,654 |
Acquisitions - 2018 Acquisition
Acquisitions - 2018 Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2018 | Sep. 30, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||
Contingent cash obligation/payment | $ 6,000 | $ 414 | $ 541 | |||||
Goodwill | 1,053,119 | 751,052 | 259,938 | |||||
Acquisition of businesses, net of cash and restricted cash acquired | 278,563 | 649,910 | 66,440 | |||||
Redemption of noncontrolling interest in connection with acquisition of ClickPay | 21,816 | $ 0 | $ 0 | |||||
Rentlytics | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate purchase consideration | $ 55,400 | 55,412 | ||||||
Contingent consideration | 0 | |||||||
Common stock issued at closing | 0 | |||||||
Deferred obligation related to acquisition | 8,000 | |||||||
Goodwill | 42,400 | 42,351 | ||||||
Gross contractual amount of acquired receivables | 2,000 | |||||||
Estimated uncollectable amount of acquired receivables | 400 | |||||||
Acquisition costs | $ 1,200 | |||||||
Deferred obligations, net | 7,517 | |||||||
Noncontrolling interest financing | 0 | |||||||
LeaseLabs | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate purchase consideration | $ 112,900 | 112,892 | ||||||
Length of time for acquisition contingent cash payment to be made | 6 months | |||||||
Contingent consideration | $ 7,000 | 7,000 | ||||||
Issuance of common stock in connection with our acquisitions (in shares) | 86,745 | |||||||
Common stock issued at closing | 5,300 | |||||||
Goodwill | $ 84,700 | 84,674 | ||||||
Gross contractual amount of acquired receivables | 3,500 | |||||||
Estimated uncollectable amount of acquired receivables | 600 | |||||||
Acquisition costs | 400 | |||||||
Total deferred cash obligation | 11,800 | |||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 9,900 | |||||||
Deferred obligations, net | 16,094 | |||||||
Noncontrolling interest financing | 0 | |||||||
BluTrend | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate purchase consideration | $ 8,500 | 8,500 | ||||||
Contingent consideration | 0 | |||||||
Common stock issued at closing | 0 | |||||||
Deferred obligation related to acquisition | 2,000 | |||||||
Goodwill | 3,900 | 3,887 | ||||||
Acquisition costs | $ 100 | |||||||
Deferred obligation recognition period | 2 years | |||||||
Deferred obligations, net | 0 | |||||||
Noncontrolling interest financing | 0 | |||||||
ClickPay | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate purchase consideration | $ 221,100 | 221,063 | ||||||
Contingent consideration | 0 | |||||||
Issuance of common stock in connection with our acquisitions (in shares) | 870,168 | |||||||
Common stock issued at closing | 48,034 | |||||||
Deferred obligation related to acquisition | $ 10,200 | |||||||
Stock issued for acquisition | 24,700 | |||||||
Goodwill | 173,300 | 173,250 | ||||||
Gross contractual amount of acquired receivables | 2,700 | |||||||
Estimated uncollectable amount of acquired receivables | 500 | |||||||
Acquisition costs | 1,600 | |||||||
Acquisition of businesses, net of cash and restricted cash acquired | 139,000 | |||||||
Cash acquired | 7,500 | |||||||
Deferred obligations, net | 9,800 | 9,677 | ||||||
Noncontrolling interest financing | $ 24,400 | $ 24,369 | ||||||
Stock issued and held in escrow (in shares) | 187,480 | |||||||
NovelPay | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 102,400 | |||||||
Percentage of holders retaining membership rights | 12.00% | |||||||
Shares issued to NovelPay membership holder (in shares) | 395,206 | |||||||
Redemption of noncontrolling interest in connection with acquisition of ClickPay | $ 21,800 | |||||||
Payments for repurchase of NovelPay membership units | 2,900 | |||||||
Common Stock | LeaseLabs | ||||||||
Business Acquisition [Line Items] | ||||||||
Common stock issued at closing | 5,300 | |||||||
Deferred obligation related to acquisition | 5,000 | |||||||
Stock issued for acquisition | $ 4,800 | |||||||
Common Stock | ClickPay | ||||||||
Business Acquisition [Line Items] | ||||||||
Common stock issued at closing | $ 48,000 | |||||||
Developed product technologies | Rentlytics | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 7 years | |||||||
Developed product technologies | LeaseLabs | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 7 years | |||||||
Developed product technologies | BluTrend | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 5 years | |||||||
Developed product technologies | ClickPay | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 7 years | |||||||
Client relationships | Rentlytics | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 10 years | |||||||
Client relationships | LeaseLabs | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 10 years | |||||||
Client relationships | BluTrend | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 10 years | |||||||
Client relationships | ClickPay | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 10 years | |||||||
Trade names | Rentlytics | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 10 years | |||||||
Trade names | LeaseLabs | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 10 years | |||||||
Trade names | BluTrend | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 2 years | |||||||
Trade names | ClickPay | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortized useful life of acquired intangible assets | 10 years | |||||||
Maximum | BluTrend | ||||||||
Business Acquisition [Line Items] | ||||||||
Total deferred cash obligation | $ 1,000 | |||||||
Deferred stock obligation | $ 1,000 |
Acquisitions - Allocated Purcha
Acquisitions - Allocated Purchase Price (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2018 | Sep. 30, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value of net assets acquired: | |||||||
Goodwill | $ 1,053,119 | $ 751,052 | $ 259,938 | ||||
ClickPay | |||||||
Fair value of purchase consideration: | |||||||
Cash, net of cash acquired | 138,983 | ||||||
Common stock issued at closing | 48,034 | ||||||
Deferred obligations, net | $ 9,800 | 9,677 | |||||
Noncontrolling interest financing | 24,400 | 24,369 | |||||
Contingent consideration | 0 | ||||||
Total fair value of purchase consideration | 221,100 | 221,063 | |||||
Fair value of net assets acquired: | |||||||
Restricted cash | 1,313 | ||||||
Accounts receivable | 2,226 | ||||||
Property, equipment, and software | 89 | ||||||
Deferred tax asset, net | 0 | ||||||
Goodwill | $ 173,300 | 173,250 | |||||
Other assets | 362 | ||||||
Accounts payable and accrued liabilities | (2,698) | ||||||
Client deposits held in restricted accounts | (1,313) | ||||||
Deferred revenue | 0 | ||||||
Deferred tax liability, net | $ (4,900) | (4,866) | |||||
Total fair value of net assets acquired | 221,063 | ||||||
ClickPay | Developed product technologies | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 29,100 | ||||||
ClickPay | Client relationships | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 20,700 | ||||||
ClickPay | Trade names | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 2,900 | ||||||
BluTrend | |||||||
Fair value of purchase consideration: | |||||||
Cash, net of cash acquired | 8,500 | ||||||
Common stock issued at closing | 0 | ||||||
Deferred obligations, net | 0 | ||||||
Noncontrolling interest financing | 0 | ||||||
Contingent consideration | 0 | ||||||
Total fair value of purchase consideration | $ 8,500 | 8,500 | |||||
Fair value of net assets acquired: | |||||||
Restricted cash | 0 | ||||||
Accounts receivable | 226 | ||||||
Property, equipment, and software | 0 | ||||||
Deferred tax asset, net | 0 | ||||||
Goodwill | $ 3,900 | 3,887 | |||||
Other assets | 122 | ||||||
Accounts payable and accrued liabilities | (5) | ||||||
Client deposits held in restricted accounts | 0 | ||||||
Deferred revenue | 0 | ||||||
Deferred tax liability, net | 0 | ||||||
Total fair value of net assets acquired | 8,500 | ||||||
BluTrend | Developed product technologies | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 730 | ||||||
BluTrend | Client relationships | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 3,510 | ||||||
BluTrend | Trade names | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 30 | ||||||
LeaseLabs | |||||||
Fair value of purchase consideration: | |||||||
Cash, net of cash acquired | 84,498 | ||||||
Common stock issued at closing | 5,300 | ||||||
Deferred obligations, net | 16,094 | ||||||
Noncontrolling interest financing | 0 | ||||||
Contingent consideration | 7,000 | 7,000 | |||||
Total fair value of purchase consideration | 112,900 | 112,892 | |||||
Fair value of net assets acquired: | |||||||
Restricted cash | 0 | ||||||
Accounts receivable | 2,853 | ||||||
Property, equipment, and software | 865 | ||||||
Deferred tax asset, net | 0 | ||||||
Goodwill | $ 84,700 | 84,674 | |||||
Other assets | 321 | ||||||
Accounts payable and accrued liabilities | (696) | ||||||
Client deposits held in restricted accounts | 0 | ||||||
Deferred revenue | (2,325) | ||||||
Deferred tax liability, net | 0 | ||||||
Total fair value of net assets acquired | 112,892 | ||||||
LeaseLabs | Developed product technologies | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 8,300 | ||||||
LeaseLabs | Client relationships | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 17,800 | ||||||
LeaseLabs | Trade names | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 1,100 | ||||||
Rentlytics | |||||||
Fair value of purchase consideration: | |||||||
Cash, net of cash acquired | 47,895 | ||||||
Common stock issued at closing | 0 | ||||||
Deferred obligations, net | 7,517 | ||||||
Noncontrolling interest financing | 0 | ||||||
Contingent consideration | 0 | ||||||
Total fair value of purchase consideration | $ 55,400 | 55,412 | |||||
Fair value of net assets acquired: | |||||||
Restricted cash | 0 | ||||||
Accounts receivable | 1,585 | ||||||
Property, equipment, and software | 0 | ||||||
Deferred tax asset, net | 1,000 | 988 | |||||
Goodwill | $ 42,400 | 42,351 | |||||
Other assets | 401 | ||||||
Accounts payable and accrued liabilities | (763) | ||||||
Client deposits held in restricted accounts | 0 | ||||||
Deferred revenue | (1,350) | ||||||
Deferred tax liability, net | 0 | ||||||
Total fair value of net assets acquired | 55,412 | ||||||
Rentlytics | Developed product technologies | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 3,300 | ||||||
Rentlytics | Client relationships | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | 8,500 | ||||||
Rentlytics | Trade names | |||||||
Fair value of net assets acquired: | |||||||
Identified Intangible Assets | $ 400 |
Acquisitions - Acquisitions Pr
Acquisitions - Acquisitions Prior to 2018 (Details) $ in Thousands | 1 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Oct. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Jun. 30, 2016USD ($) | May 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)acquisition | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Number of acquisitions | acquisition | 8 | ||||||||||
Goodwill | $ 751,052 | $ 751,052 | $ 1,053,119 | $ 259,938 | |||||||
NWP Services Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | $ 68,183 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 62,190 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | 18,314 | ||||||||||
Identified Intangible Assets | 16,349 | ||||||||||
Goodwill | $ 33,520 | ||||||||||
AssetEye | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | $ 4,911 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 3,749 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | (928) | ||||||||||
Identified Intangible Assets | 2,685 | ||||||||||
Goodwill | $ 3,154 | ||||||||||
eSupply Systems, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | $ 7,046 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 5,461 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | 267 | ||||||||||
Identified Intangible Assets | 3,585 | ||||||||||
Goodwill | $ 3,194 | ||||||||||
Axiometrics | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | $ 73,757 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 66,050 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | (5,963) | ||||||||||
Identified Intangible Assets | 25,530 | ||||||||||
Goodwill | 54,190 | ||||||||||
Contingent cash obligation/payment | $ 5,000 | ||||||||||
American Utility Management | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | $ 69,412 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 64,775 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | 1,107 | ||||||||||
Identified Intangible Assets | 22,398 | ||||||||||
Goodwill | $ 45,907 | ||||||||||
On-Site Manager, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | $ 251,109 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 225,300 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | 3,197 | ||||||||||
Identified Intangible Assets | 65,320 | ||||||||||
Goodwill | $ 182,592 | ||||||||||
PEX Software Limited | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | $ 6,031 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 5,103 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | (369) | ||||||||||
Identified Intangible Assets | 3,100 | ||||||||||
Goodwill | $ 3,300 | ||||||||||
Lease Rent Options | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate Purchase Price | 299,923 | ||||||||||
Closing Cash Payment, Net of Cash Acquired | 298,040 | ||||||||||
Net Tangible Assets Acquired (Liabilities Assumed) | 5,263 | 5,263 | |||||||||
Identified Intangible Assets | 91,666 | 91,666 | |||||||||
Goodwill | 202,994 | 202,994 | |||||||||
Recurring | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Liability measured at fair value | 414 | 414 | 6,413 | ||||||||
Contingent Consideration | Recurring | AssetEye | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Liability measured at fair value | 247 | 247 | |||||||||
Contingent Consideration | Recurring | Axiometrics | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Liability measured at fair value | $ 167 | $ 167 | $ 0 |
Acquisitions - Schedule of Cont
Acquisitions - Schedule of Contingent Consideration Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Cash and Stock Obligations | ||
Deferred Cash and Stock Obligations Beginning Balance | $ 47,016 | $ 14,150 |
Additions, net of fair value discount | 36,313 | 42,104 |
Cash payments | (29,600) | (8,215) |
Accretion expense | 1,970 | 1,049 |
Change in fair value | 0 | 0 |
Indemnification claims and other adjustments | (3,557) | (2,072) |
Deferred Cash and Stock Obligations Ending Balance | 52,142 | 47,016 |
Contingent Consideration | ||
Contingent Consideration Beginning Balance | 414 | 541 |
Additions, net of fair value discount | 7,000 | 812 |
Cash payments | (247) | (700) |
Accretion expense | 0 | 0 |
Change in fair value | (1,167) | (239) |
Indemnification claims and other adjustments | 0 | 0 |
Contingent Consideration Ending Balance | 6,000 | 414 |
Total | ||
Total Beginning Balance | 47,430 | 14,691 |
Additions, net of fair value discount | 43,313 | 42,916 |
Cash payments | (29,847) | (8,915) |
Accretion expense | 1,970 | 1,049 |
Change in fair value | (1,167) | (239) |
Indemnification claims and other adjustments | (3,557) | (2,072) |
Total Ending Liability | $ 58,142 | $ 47,430 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Total revenue | $ 899,966 | $ 809,987 |
Net income (loss) | $ 27,969 | $ (14,210) |
Net income per share attributable to common stockholders: | ||
Basic net income per share (in dollars per share) | $ 0.32 | $ (0.18) |
Diluted net income per share (in dollars per share) | $ 0.30 | $ (0.18) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of ASUs | $ 2,221,000 | $ 43,843,000 | |
Contract term | Revenues are calculated based on the number of transactions processed monthly and will vary from month to month based on actual usage of these transaction-based services over the contract term, which is typically one year in duration. | ||
On demand revenue | $ 113,700,000 | ||
Deferred commissions period of benefit | 3 years | ||
Current capitalized commissions cost | $ 6,700,000 | ||
Noncurrent capitalized commissions cost | 7,800,000 | ||
Amortized commission costs | 5,400,000 | ||
Capitalized commissions impairment loss | $ 0 | ||
Remaining performance obligation percentage | 68.80% | ||
Period for satisfying 75% of remaining obligation | 24 months | ||
Accumulated Deficit | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of ASUs | 2,221,000 | $ 43,837,000 | |
Accumulated Deficit | Adjustments due to ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of ASUs | $ 2,200,000 | ||
On demand | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract term | Certain clients commit to purchase our solutions for terms ranging from two to seven years. | ||
Remaining performance obligation | $ 414,700,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 869,480 | $ 670,963 | $ 568,128 | ||||||||
Property management | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 186,975 | 167,002 | 152,890 | ||||||||
Resident services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 350,457 | 272,176 | 218,097 | ||||||||
Leasing and marketing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 166,361 | 123,804 | 116,505 | ||||||||
Asset optimization | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 129,916 | 79,640 | 55,039 | ||||||||
On demand | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 218,051 | $ 215,413 | $ 206,945 | $ 193,300 | $ 180,104 | $ 161,578 | $ 154,727 | $ 146,213 | 833,709 | 642,622 | 542,531 |
Professional and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 8,923 | $ 9,540 | $ 9,307 | $ 8,001 | $ 7,576 | $ 7,480 | $ 6,579 | $ 6,706 | $ 35,771 | $ 28,341 | $ 25,597 |
Revenue Recognition - Effect of
Revenue Recognition - Effect of Adoption of 2014-09 on Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Revenue | ||||||||||||
Total revenue | $ 869,480 | $ 670,963 | $ 568,128 | |||||||||
Operating expenses: | ||||||||||||
Sales and marketing | 166,607 | 140,473 | 122,457 | |||||||||
Net income before income taxes | 34,300 | 15,241 | 27,486 | |||||||||
Income tax (benefit) expense | (425) | 14,864 | 10,836 | |||||||||
Net income | $ 6,272 | $ 9,073 | $ 8,479 | $ 10,901 | $ (20,865) | $ 6,834 | $ 6,213 | $ 8,195 | 34,725 | 377 | 16,650 | |
Assets | ||||||||||||
Accounts receivable, less allowances | 123,596 | 124,505 | 123,596 | 124,505 | $ 116,580 | |||||||
Other current assets | 15,185 | 6,622 | 15,185 | 6,622 | 9,393 | |||||||
Other assets | 20,393 | 11,010 | 20,393 | 11,010 | 15,469 | |||||||
Liabilities | ||||||||||||
Current portion of deferred revenue | 120,704 | 116,622 | 120,704 | 116,622 | 112,926 | |||||||
Deferred revenue | 4,902 | 5,538 | 4,902 | 5,538 | ||||||||
Balances without adoption of ASU 2014-09 | ||||||||||||
Assets | ||||||||||||
Accounts receivable, less allowances | 124,505 | 124,505 | ||||||||||
Other current assets | 6,622 | 6,622 | ||||||||||
Other assets | 11,010 | 11,010 | ||||||||||
Liabilities | ||||||||||||
Current portion of deferred revenue | 116,622 | 116,622 | ||||||||||
Balances without adoption of ASU 2014-09 | Adjustments due to ASU 2014-09 | ||||||||||||
Operating expenses: | ||||||||||||
Sales and marketing | 174,578 | |||||||||||
Net income before income taxes | 25,200 | |||||||||||
Income tax (benefit) expense | (2,608) | |||||||||||
Net income | 27,808 | |||||||||||
Assets | ||||||||||||
Accounts receivable, less allowances | 130,742 | 130,742 | ||||||||||
Other current assets | 8,198 | 8,198 | ||||||||||
Other assets | 12,114 | 12,114 | ||||||||||
Liabilities | ||||||||||||
Current portion of deferred revenue | 125,078 | 125,078 | ||||||||||
Deferred revenue | 4,902 | 4,902 | ||||||||||
Effect of Change on Net Income Higher/(Lower) | Adjustments due to ASU 2014-09 | ||||||||||||
Operating expenses: | ||||||||||||
Sales and marketing | 7,971 | |||||||||||
Net income before income taxes | 9,100 | |||||||||||
Income tax (benefit) expense | 2,183 | |||||||||||
Net income | 6,917 | |||||||||||
Assets | ||||||||||||
Accounts receivable, less allowances | (7,146) | (7,146) | (7,925) | |||||||||
Other current assets | 6,987 | 6,987 | 2,771 | |||||||||
Other assets | 8,279 | 8,279 | 4,459 | |||||||||
Liabilities | ||||||||||||
Current portion of deferred revenue | (4,374) | (4,374) | $ (3,696) | |||||||||
Deferred revenue | 0 | 0 | ||||||||||
On demand | ||||||||||||
Revenue | ||||||||||||
Total revenue | 218,051 | 215,413 | 206,945 | 193,300 | 180,104 | 161,578 | 154,727 | 146,213 | 833,709 | 642,622 | 542,531 | |
On demand | Balances without adoption of ASU 2014-09 | Adjustments due to ASU 2014-09 | ||||||||||||
Revenue | ||||||||||||
Total revenue | 835,465 | |||||||||||
On demand | Effect of Change on Net Income Higher/(Lower) | Adjustments due to ASU 2014-09 | ||||||||||||
Revenue | ||||||||||||
Total revenue | (1,756) | |||||||||||
Professional and other | ||||||||||||
Revenue | ||||||||||||
Total revenue | 8,923 | 9,540 | 9,307 | 8,001 | 7,576 | 7,480 | 6,579 | 6,706 | 35,771 | 28,341 | 25,597 | |
Professional and other | Balances without adoption of ASU 2014-09 | Adjustments due to ASU 2014-09 | ||||||||||||
Revenue | ||||||||||||
Total revenue | 32,886 | |||||||||||
Professional and other | Effect of Change on Net Income Higher/(Lower) | Adjustments due to ASU 2014-09 | ||||||||||||
Revenue | ||||||||||||
Total revenue | 2,885 | |||||||||||
Service | ||||||||||||
Revenue | ||||||||||||
Total revenue | $ 226,974 | $ 224,953 | $ 216,252 | $ 201,301 | $ 187,680 | $ 169,058 | $ 161,306 | $ 152,919 | 869,480 | $ 670,963 | $ 568,128 | |
Service | Balances without adoption of ASU 2014-09 | Adjustments due to ASU 2014-09 | ||||||||||||
Revenue | ||||||||||||
Total revenue | 868,351 | |||||||||||
Service | Effect of Change on Net Income Higher/(Lower) | Adjustments due to ASU 2014-09 | ||||||||||||
Revenue | ||||||||||||
Total revenue | $ 1,129 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, gross | $ 132,446 | $ 128,456 | |
Less: Allowances | (8,850) | (3,951) | |
Accounts receivable, net | 123,596 | $ 116,580 | 124,505 |
Trade receivables from clients | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, gross | 120,767 | 115,354 | |
Insurance commissions receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, gross | $ 11,679 | $ 13,102 |
Property, Equipment and Softw_3
Property, Equipment and Software - Components of Property, Equipment and Software (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, gross | $ 296,683 | $ 279,777 |
Less: Accumulated depreciation and amortization | (143,155) | (131,349) |
Property, equipment, and software, net | 153,528 | 148,428 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, gross | 63,391 | 59,179 |
Data processing and communications equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, gross | 68,015 | 83,922 |
Furniture, fixtures, and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, gross | 33,840 | 28,752 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, gross | $ 131,437 | $ 107,924 |
Property, Equipment and Softw_4
Property, Equipment and Software - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense for property, equipment and software | $ 28.5 | $ 27.2 | $ 24.5 |
Carrying amount of capitalized development costs | 54.9 | 45.5 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense for property, equipment and software | $ 11.9 | $ 8 | $ 5.8 |
Goodwill and Identified Intan_2
Goodwill and Identified Intangible Assets - Change in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 751,052 | $ 259,938 |
Goodwill acquired | 304,162 | 491,079 |
Measurement period and other adjustments | (2,095) | 35 |
Ending balance | $ 1,053,119 | $ 751,052 |
Goodwill and Identified Intan_3
Goodwill and Identified Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, impairment loss | $ 0 | $ 0 | ||
Remaining balance after impairment loss | $ 504,317,000 | 504,317,000 | $ 405,747,000 | |
Finite-Lived Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | 59,800,000 | 31,900,000 | 24,500,000 | |
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining balance after impairment loss | 22,956,000 | 22,956,000 | $ 17,556,000 | |
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 800,000 | |||
Level One | Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining balance after impairment loss | $ 1,000,000 | $ 1,000,000 | ||
Estimated useful life of finite-lived intangible asset | 5 years | |||
Level One | Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 2,700,000 |
Goodwill and Identified Intan_4
Goodwill and Identified Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-lived intangible assets: | ||
Carrying Amount | $ 504,317 | $ 405,747 |
Accumulated Amortization | (225,327) | (165,547) |
Net | 278,990 | 240,200 |
Indefinite-lived intangible assets: | ||
Carrying Amount | 512,705 | 417,884 |
Net | 287,378 | 252,337 |
Developed technologies | ||
Finite-lived intangible assets: | ||
Carrying Amount | 207,310 | 164,640 |
Accumulated Amortization | (100,445) | (76,577) |
Net | 106,865 | 88,063 |
Client relationships | ||
Finite-lived intangible assets: | ||
Carrying Amount | 264,228 | 213,728 |
Accumulated Amortization | (107,155) | (78,390) |
Net | 157,073 | 135,338 |
Vendor relationships | ||
Finite-lived intangible assets: | ||
Carrying Amount | 5,650 | 5,650 |
Accumulated Amortization | (5,650) | (5,650) |
Net | 0 | 0 |
Trade names | ||
Finite-lived intangible assets: | ||
Carrying Amount | 22,956 | 17,556 |
Accumulated Amortization | (10,682) | (4,325) |
Net | 12,274 | 13,231 |
Non-competition agreements | ||
Finite-lived intangible assets: | ||
Carrying Amount | 4,173 | 4,173 |
Accumulated Amortization | (1,395) | (605) |
Net | 2,778 | 3,568 |
Trade names | ||
Indefinite-lived intangible assets: | ||
Net | $ 8,388 | $ 12,137 |
Goodwill and Identified Intan_5
Goodwill and Identified Intangible Assets - Estimated Amortization of Intangible Assets (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 61,916 |
2,020 | 52,679 |
2,021 | 45,446 |
2,022 | 35,686 |
2,023 | $ 28,553 |
Debt - Line of Credit Narrativ
Debt - Line of Credit Narrative (Details) | Jun. 30, 2020USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 29, 2016USD ($) | Sep. 30, 2014USD ($) |
Line of Credit Facility [Line Items] | |||||||
Consolidated net coverage ratio following permitted acquisition | 3.75 | ||||||
Interest coverage ratio | 3 | ||||||
Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Additional borrowing capacity | $ 150,000,000 | ||||||
Outstanding borrowings | $ 0 | $ 50,000,000 | |||||
Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount | 350,000,000 | ||||||
Sub limit for issuance of letters of credit | 10,000,000 | ||||||
Swingline Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Sub limit for issuance of letters of credit | $ 20,000,000 | ||||||
Revolving Facility | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Available credit | 350,000,000 | ||||||
Delayed Draw Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Periodic payment | $ 1,500,000 | $ 800,000 | |||||
Additional borrowing capacity | 200,000,000 | ||||||
Delayed Draw Term Loan | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount | $ 125,000,000 | ||||||
Delayed Draw Term Loan | Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Periodic principal payment | $ 2,500,000 | $ 1,300,000 | |||||
Unamortized discount | $ 606,000 | 821,000 | |||||
Maximum | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Consolidated net coverage ratio following permitted acquisition | 3.50 | ||||||
Base Rate | Delayed Draw Term Loan | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Consolidated net coverage ratio following permitted acquisition | 5 | ||||||
Base Rate | Minimum | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Base Rate | Maximum | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Federal Funds Effective Swap Rate | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
LIBOR | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
LIBOR | Minimum | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
LIBOR | Maximum | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.25% | ||||||
Scenario, Forecast | Delayed Draw Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Periodic payment | $ 3,100,000 | ||||||
Scenario, Forecast | Delayed Draw Term Loan | Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Periodic principal payment | $ 5,000,000 | ||||||
Other assets | Revolving Facility | Revolving Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Unamortized discount | $ 1,300,000 | 600,000 | |||||
Level 2 | Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term debt fair value | $ 298,900,000 | $ 303,800,000 |
Debt - Schedule of Long Term D
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Principal outstanding | $ 114,990 | $ 120,356 |
Unamortized discount | (171) | (233) |
Unamortized debt issuance costs | (137) | (185) |
Carrying value | 114,682 | 119,938 |
Delayed Draw Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 190,000 | 198,750 |
Unamortized discount | (606) | (821) |
Unamortized debt issuance costs | (361) | (490) |
Carrying value | $ 189,033 | $ 197,439 |
Debt - Schedule of Maturities
Debt - Schedule of Maturities of Long Term Debt (Details) - Term Loans $ in Thousands | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 16,133 |
2,020 | 28,232 |
2,021 | 32,266 |
2,022 | 228,359 |
Total long-term debt | $ 304,990 |
Debt - Convertible Debt Narrat
Debt - Convertible Debt Narrative (Details) $ in Thousands, shares in Millions | Dec. 31, 2018USD ($)$ / shares | May 23, 2017USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesday | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings on convertible notes | $ 0 | $ 345,000 | $ 0 | |||
Convertible notes, net | $ 292,843 | 292,843 | 281,199 | |||
Number of securities called by warrants (in shares) | shares | 8.2 | |||||
Purchases of convertible note hedges | $ 62,500 | 62,549 | ||||
Proceeds from issuance of warrants | $ 31,500 | 0 | 31,499 | $ 0 | ||
Exercise price of warrants (in dollars per share) | $ / shares | $ 57.58 | |||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Number of securities called by warrants (in shares) | shares | 8.2 | |||||
Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings on convertible notes | $ 304,200 | |||||
Convertible Notes | Convertible Senior Notes Due November 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | 345,000 | $ 345,000 | 345,000 | $ 345,000 | ||
Interest rate stated percentage | 1.50% | |||||
Conversion ratio (in shares) | 0.02384 | |||||
Conversion price (in dollars per share) | $ / shares | $ 41.95 | |||||
If-converted, value in excess of principal | 51,300 | |||||
Threshold trading days | day | 20 | |||||
Threshold consecutive trading days | day | 30 | |||||
Measurement period threshold trading days | day | 5 | |||||
Measurement period threshold consecutive trading days | day | 5 | |||||
Redemption price | 100.00% | |||||
Convertible notes, net | 292,843 | $ 292,843 | 281,199 | 282,500 | ||
Equity component, net of issuance costs and deferred tax: | $ 61,390 | $ 61,390 | 61,390 | 62,500 | ||
Gross debt issuance costs | 9,800 | |||||
Convertible Notes | Convertible Senior Notes Due November 2022 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of stock price trigger | 130.00% | |||||
Ratio of trading price per $1000 principle amount | 98.00% | |||||
Percentage of debt held by individual owner | 25.00% | |||||
Convertible Notes | Over-Allotment Option | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 45,000 | |||||
Measurement Input, Share Price | Convertible Notes | Convertible Senior Notes Due November 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Closing stock price (in dollars per share) | $ / shares | 48.19 | 48.19 | ||||
Level 2 | Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Convertible debt fair value | $ 441,400 | $ 441,400 | $ 430,300 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2017 |
Debt Instrument [Line Items] | |||
Convertible notes, net | $ 292,843 | $ 281,199 | |
Convertible Notes | Convertible Senior Notes Due November 2022 | |||
Debt Instrument [Line Items] | |||
Principal amount | 345,000 | 345,000 | $ 345,000 |
Unamortized discount | (46,235) | (56,557) | |
Unamortized debt issuance costs | (5,922) | (7,244) | |
Convertible notes, net | 292,843 | 281,199 | 282,500 |
Equity component, net of issuance costs and deferred tax: | $ 61,390 | $ 61,390 | $ 62,500 |
Debt - Schedule of Interest on
Debt - Schedule of Interest on Convertible Notes (Details) - Convertible Notes - Convertible Senior Notes Due November 2022 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 5,175 | $ 3,119 |
Amortization of debt discount | 10,322 | 5,991 |
Amortization of debt issuance costs | 1,322 | 766 |
Total interest expense | $ 16,819 | $ 9,876 |
Effective interest rate of the liability component | 5.87% | 5.87% |
Stock-based Expense and Emplo_2
Stock-based Expense and Employee Benefits - Schedule of Stock-based Compensation Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense recognized | $ 50,641 | $ 45,835 | $ 36,852 |
Cash proceeds related to stock-based expense transactions | 13,163 | 27,014 | 28,490 |
Time Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate grant-date fair value of shares and stock options that vested during the year | $ 49,711 | $ 48,662 | $ 28,624 |
Stock-based Expense and Emplo_3
Stock-based Expense and Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 23 Months Ended | 36 Months Ended | 58 Months Ended | ||
Jan. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 73.8 | $ 73.8 | $ 73.8 | ||||
Unrecognized non-vested stock awards recognition period | 1 year 10 months 24 days | ||||||
Aggregate intrinsic value of stock options | $ 23 | $ 25.1 | $ 11.3 | ||||
Contributions to employee benefit plans | $ 4.2 | $ 2.9 | $ 2.4 | ||||
Options granted in period (in shares) | 0 | 0 | 0 | ||||
Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 4 years | 3 years | |||||
Vesting percentage | 75.00% | ||||||
Percentage of stock options to be vested during remaining period | 25.00% | ||||||
Expiration period from grant date (in years) | 10 years | ||||||
Time Based Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 4 years | 3 years | 3 years | ||||
Market Based Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 1 year | ||||||
Market Based Restricted Stock | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period (in months) | 1 year 6 months | 1 year 3 months | |||||
Market Based Restricted Stock | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period (in months) | 2 years 6 months | 1 year 9 months | |||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options granted (in shares) | 27,634,259 | 27,634,259 | 27,634,259 | 27,634,259 | |||
Board Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 1 year | ||||||
Options granted prior to February 2014 | Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period (in years) | 3 years 9 months |
Stock-based Expense and Emplo_4
Stock-based Expense and Employee Benefits - Summary of Stock Option Transactions Under Equity Plan, Stock Incentive Plan, Multifamily Technology Solutions Plan and Board Plan (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Number of Shares, Beginning Balance | 2,200,465 | 3,607,089 | 5,801,873 |
Number of Shares, Exercised | (658,564) | (1,344,569) | (1,568,699) |
Number of Shares, Forfeited/cancelled | (11,329) | (61,892) | (625,431) |
Number of Shares, Expired | (2,250) | (163) | (654) |
Number of Shares, ending balance | 1,528,322 | 2,200,465 | 3,607,089 |
Range of Exercise Prices | |||
Range of exercise prices beginning balance, lower limit (in dollars per share) | $ 4.28 | $ 2.55 | $ 0.91 |
Range of exercise prices beginning balance, upper limit (in dollars per share) | 29.50 | 29.50 | 29.50 |
Range of exercise prices Exercised, lower limit (in dollars per share) | 4.92 | 5.04 | 1.68 |
Range of exercise prices Exercised, upper limit (in dollars per share) | 29.50 | 29.50 | 27.18 |
Range of exercise prices Forfeited/cancelled, lower limit (in dollars per share) | 15.19 | 15.19 | 4.28 |
Range of exercise prices Forfeited/cancelled, upper limit (in dollars per share) | 25.70 | 25.70 | 29.50 |
Range of exercise prices Expired, lower limit (in dollars per share) | 7 | 2.55 | 0.91 |
Range of exercise prices Expired, upper limit (in dollars per share) | 7 | 2.82 | 0.91 |
Range of exercise prices Ending Balance, lower limit (in dollars per share) | 4.28 | 4.28 | 2.55 |
Range of exercise prices Ending Balance, upper limit (in dollars per share) | 29.50 | 29.50 | 29.50 |
Weighted-Average Exercise Price | |||
Weighted average exercise price, Beginning Balance (in dollars per share) | 19.26 | 19.58 | 19.43 |
Weighted average exercise price, Exercised (in dollars per share) | 20 | 20.09 | 18.16 |
Weighted average exercise price, Forfeited/cancelled (in dollars per share) | 18.85 | 19.66 | 21.77 |
Weighted average exercise price, Expired (in dollars per share) | 7 | 2.73 | 0.91 |
Weighted average exercise price, Ending Balance (in dollars per share) | $ 18.96 | $ 19.26 | $ 19.58 |
Stock-based Expense and Emplo_5
Stock-based Expense and Employee Benefits - Outstanding Stock Options, Vested and Expected to Vest, Non-Vested and Stock Options Currently Exercisable (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Options Fully Vested | ||
Number of options, options fully vested and expected to vest | 1,528,322 | 2,200,465 |
Weighted average remaining contractual life (in years), options fully vested and expected to vest | 4 years 1 month 6 days | 5 years 6 months |
Weighted average exercise price, options fully vested and expected to vest (in dollars per share) | $ 18.96 | $ 19.26 |
Aggregate intrinsic value, options fully vested and expected to vest | $ 44,674 | $ 55,106 |
Options Exercisable | ||
Number of shares options, options exercisable | 1,528,322 | 1,999,278 |
Weighted average remaining contractual life (in years), options exercisable | 4 years 1 month 6 days | 5 years 3 months 18 days |
Weighted average exercise price, options exercisable (in dollars per share) | $ 18.96 | $ 19.16 |
Aggregate intrinsic value, options exercisable | $ 44,674 | $ 50,257 |
Stock-based Expense and Emplo_6
Stock-based Expense and Employee Benefits - Summary of Time-Based Restricted Share Awards' Activity (Detail) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Beginning Balance (in shares) | 1,755,988 | 1,633,501 | 1,068,706 |
Granted (in shares) | 1,289,866 | 1,359,578 | 1,793,257 |
Vested (in shares) | (1,017,367) | (953,749) | (841,983) |
Forfeited/cancelled (in shares) | (242,675) | (283,342) | (386,479) |
Ending Balance (in shares) | 1,785,812 | 1,755,988 | 1,633,501 |
Weighted-Average price | |||
Beginning of Period (in dollars per share) | $ 30.05 | $ 20.78 | $ 20.05 |
Granted (in dollars per share) | 53.26 | 36.25 | 20.79 |
Vested (in dollars per share) | 31.92 | 23.73 | 20.14 |
Forfeited/cancelled (in dollars per share) | 40.70 | 28.01 | 20.21 |
Ending of Period (in dollars per share) | $ 44.34 | $ 30.05 | $ 20.78 |
Stock-based Expense and Emplo_7
Stock-based Expense and Employee Benefits - Performance-Based Restricted Share Awards Activity (Detail) - Market Based Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Beginning Balance (in shares) | 690,165 | 1,564,160 | 1,015,095 |
Granted (in shares) | 517,364 | 535,441 | 794,025 |
Vested (in shares) | (677,857) | (1,407,133) | (51,250) |
Forfeited/cancelled (in shares) | (2,303) | (193,710) | |
Ending Balance (in shares) | 529,672 | 690,165 | 1,564,160 |
Weighted-Average price | |||
Beginning of Period (in dollars per share) | $ 22.76 | $ 12.73 | $ 11.85 |
Granted (in dollars per share) | 35.66 | 28.18 | 13.58 |
Vested (in dollars per share) | 23.02 | 13.69 | 12.52 |
Forfeited/cancelled (in dollars per share) | 13.34 | 11.61 | |
Ending of Period (in dollars per share) | $ 35.03 | $ 22.76 | $ 12.73 |
Stock-based Expense and Emplo_8
Stock-based Expense and Employee Benefits - Awards Granted Assumptions (Detail) - Market Based Restricted Stock | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.50% | 1.80% | 1.10% |
Expected volatility | 31.20% | 31.60% | 41.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||||
Lease term | 12 years | |||
Rent expense | $ 15,800,000 | $ 13,800,000 | $ 14,700,000 | |
Indemnification Agreement | ||||
Loss Contingencies [Line Items] | ||||
Guarantor obligations, current carrying value | $ 0 | |||
Federal Trade Commission Civil Investigative Demand | ||||
Loss Contingencies [Line Items] | ||||
Payment for litigation settlement | $ 3,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Lease Minimum Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Minimum Lease Commitments | |
2,019 | $ 16,996 |
2,020 | 12,650 |
2,021 | 11,485 |
2,022 | 10,433 |
2,023 | 10,229 |
Thereafter | 38,416 |
Total Minimum Lease Payments | $ 100,209 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 23, 2017 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from dilutive shares outstanding because their effect was anti-dilutive | 286,449 | 193,274 | 220,473 | |
Exercise price of warrants (in dollars per share) | $ 57.58 | |||
ClickPay and BluTrend | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of shares contingently issuable (in shares) | 196,000 | 0 | 0 |
Net Income Per Share - Calculat
Net Income Per Share - Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 6,272 | $ 9,073 | $ 8,479 | $ 10,901 | $ (20,865) | $ 6,834 | $ 6,213 | $ 8,195 | $ 34,725 | $ 377 | $ 16,650 |
Basic: | |||||||||||
Weighted average shares used in computing basic net income per share: | 87,290 | 79,433 | 76,854 | ||||||||
Diluted: | |||||||||||
Weighted average shares used in computing basic net income per share: | 87,290 | 79,433 | 76,854 | ||||||||
Add weighted average effect of dilutive securities: | |||||||||||
Stock options and restricted stock (in shares) | 2,032 | 2,884 | 989 | ||||||||
Convertible notes and warrants (in shares) | 1,948 | 81 | 0 | ||||||||
Contingently issuable shares in connection with our acquisitions (in shares) | 261 | 0 | 0 | ||||||||
Weighted average shares used in computing diluted net income (loss) per share (in shares) | 91,531 | 82,398 | 77,843 | ||||||||
Net income per share: | |||||||||||
Basic (in dollars per share) | $ 0.07 | $ 0.10 | $ 0.10 | $ 0.13 | $ (0.26) | $ 0.09 | $ 0.08 | $ 0.10 | $ 0.40 | $ 0 | $ 0.22 |
Diluted (in dollars per share) | $ 0.07 | $ 0.09 | $ 0.09 | $ 0.13 | $ (0.26) | $ 0.08 | $ 0.08 | $ 0.10 | $ 0.38 | $ 0 | $ 0.21 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of (Loss) Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 32,190 | $ 12,424 | $ 23,817 |
Foreign | 2,110 | 2,817 | 3,669 |
Income before income taxes | $ 34,300 | $ 15,241 | $ 27,486 |
Income Taxes - Benefit for Inco
Income Taxes - Benefit for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 666 | $ 36 | $ 401 |
State | 295 | 578 | 756 |
Foreign | 738 | 313 | 449 |
Total current income tax expense | 1,699 | 927 | 1,606 |
Deferred: | |||
Federal | (1,543) | 14,620 | 9,055 |
State | (255) | (900) | 235 |
Foreign | (326) | 217 | (60) |
Total deferred income tax (benefit) expense | (2,124) | 13,937 | 9,230 |
Total income tax expense | $ (425) | $ 14,864 | $ 10,836 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Benefit Computed at Federal Statutory Tax Rate to Actual Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Expense derived by applying the Federal income tax rate to income before income taxes | $ 7,203 | $ 5,335 | $ 9,620 | |
State income tax, net of federal benefit | (204) | 135 | 735 | |
Foreign income tax | 26 | (631) | (922) | |
Change in valuation allowance | 734 | 0 | $ 0 | |
Nondeductible expenses | 2,187 | 1,606 | 545 | |
Fair value adjustment on stock acquisition | 33 | (17) | 150 | |
Stock-based expense | (11,788) | (19,080) | 285 | |
Reduction in available Federal NOL | 0 | 0 | 255 | |
Federal income tax rate reduction | 0 | 25,070 | 0 | |
Deemed repatriation of foreign earnings | 0 | 2,211 | 0 | |
Base erosion and anti-abuse tax | 1,117 | 0 | 0 | |
Other | 267 | 235 | 168 | |
Total income tax expense | $ (425) | $ 14,864 | $ 10,836 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Reserves, deferred revenue and accrued liabilities | $ 17,120 | $ 16,443 |
Stock-based expense | 8,408 | 8,912 |
Net operating loss carryforwards and tax credits | 56,210 | 42,119 |
Deferred tax assets before valuation allowance | 81,738 | 67,474 |
Valuation allowance | (1,251) | (517) |
Total deferred tax assets, net of valuation allowance | 80,487 | 66,957 |
Deferred tax liabilities: | ||
Property, equipment, and software | (16,810) | (15,378) |
Intangible assets | (13,580) | (3,940) |
Other | (7,495) | (2,752) |
Total deferred tax liabilities | (37,885) | (22,070) |
Net deferred tax assets | $ 42,602 | $ 44,887 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | Jul. 08, 2013 | Apr. 30, 2018USD ($) | Dec. 31, 2018USD ($)jurisdictionproject | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Oct. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Schedule Of Income Taxes [Line Items] | |||||||||
Valuation allowance | $ (1,251,000) | $ (517,000) | |||||||
Deferred tax liabilities | 37,885,000 | 22,070,000 | |||||||
Deferred tax liability related to intangibles not amortizable for tax purposes | 13,580,000 | 3,940,000 | |||||||
Deferred tax assets, net | 42,602,000 | 44,887,000 | |||||||
Deferred tax assets operating loss carryforwards, federal | 49,900,000 | ||||||||
Deferred tax assets operating loss carryforwards, state | 5,000,000 | ||||||||
Deferred tax asset related to net operating loss carryforwards | 56,210,000 | 42,119,000 | |||||||
Provisional income tax due to change in tax rate | 25,100,000 | ||||||||
Transition tax for accumulated foreign earnings | 2,200,000 | ||||||||
Income tax (benefit) expense | (425,000) | 14,864,000 | $ 10,836,000 | ||||||
Deferred tax assets operating loss carryforwards foreign | 100,000 | ||||||||
NOL carryforwards subject to expiration | $ 2,100,000 | ||||||||
Net operating loss expiration period | 5 years | ||||||||
Tax credits subject to expiration in 2026 | $ 100,000 | ||||||||
Tax credit carryforwards fully realizable by 2021 | 700,000 | ||||||||
Net operating income (loss) | 66,050,000 | 30,010,000 | 31,244,000 | ||||||
Stock-based expense | (11,788,000) | (19,080,000) | 285,000 | ||||||
Excess stock compensation benefits | 3,100,000 | ||||||||
Unrecognized tax benefits | 0 | 0 | |||||||
Penalties and interest accrued | $ 0 | 0 | |||||||
Foreign tax jurisdictions | jurisdiction | 6 | ||||||||
Income tax examinations and adjustments minimum year | 3 years | ||||||||
ClickPay | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Deferred tax liability, net | $ (4,900,000) | $ (4,866,000) | |||||||
Deferred tax liability related to intangibles not amortizable for tax purposes | 5,800,000 | ||||||||
Deferred tax asset, net | 0 | ||||||||
Rentlytics | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Deferred tax liability, net | 0 | ||||||||
Deferred tax liability related to intangibles not amortizable for tax purposes | $ 2,700,000 | ||||||||
Deferred tax asset, net | 988,000 | 1,000,000 | |||||||
PEX Software Limited | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Deferred tax liabilities | $ 100,000 | ||||||||
On-Site Manager, Inc. | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Deferred tax liability related to intangibles not amortizable for tax purposes | $ 1,200,000 | ||||||||
Federal and State | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Tax credits | 1,200,000 | ||||||||
Federal | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
NOL carryforwards subject to expiration | $ 237,600,000 | ||||||||
Net operating loss carryforwards, expiration year | 2,024 | ||||||||
Income tax year no longer subject to examinations | 2,015 | ||||||||
Federal | ClickPay | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Deferred tax assets operating loss carryforwards, state | $ 900,000 | ||||||||
Federal | Rentlytics | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Deferred tax liability related to intangibles not amortizable for tax purposes | $ 3,700,000 | ||||||||
State | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
NOL carryforwards subject to expiration | $ 81,200,000 | ||||||||
Income tax year no longer subject to examinations | 2,014 | ||||||||
INDIA | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Tax holiday expiration date | March 31, 2011 | ||||||||
Tax holiday period | 5 years | ||||||||
Tax holiday percent | 100.00% | 50.00% | |||||||
Holiday tax savings | $ 100,000 | 400,000 | 200,000 | ||||||
Tax adjustments, settlements, and unusual provisions | $ 900,000 | ||||||||
Philippine Economic Zone Authority | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Number of PEZA projects | project | 4 | ||||||||
PHILIPPINES | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Holiday tax savings | $ 300,000 | 200,000 | $ 400,000 | ||||||
Subsidiaries before acquisition | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Net operating income (loss) | (52,700,000) | ||||||||
Valuation Allowance, Operating Loss Carryforwards | State | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Income tax (benefit) expense | 300,000 | ||||||||
Valuation Allowance, Operating Loss Carryforwards | Foreign | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Income tax (benefit) expense | $ 200,000 | ||||||||
Valuation Allowance Deferred Tax Asset | Foreign | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Income tax (benefit) expense | $ 800,000 | ||||||||
Adjustments due to ASU 2014-09 | |||||||||
Schedule Of Income Taxes [Line Items] | |||||||||
Deferred tax assets, net | $ 800,000 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Inputs (Details) - Contingent Consideration - Recurring | Dec. 31, 2017 |
Discount rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration liability measurement input | 0.163 |
Volatility rates | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration liability measurement input | 0.240 |
Risk Free Interest Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration liability measurement input | 0.016 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Recurring | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | $ 6,413 | $ 414 | |
Recurring | Level 1 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 0 | |
Recurring | Level 2 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 413 | 0 | |
Recurring | Level 3 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 6,000 | 414 | |
Contingent Consideration | Level 3 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 6,000 | 414 | $ 541 |
Contingent Consideration | Recurring | LeaseLabs | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 6,000 | ||
Contingent Consideration | Recurring | AssetEye | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 247 | ||
Contingent Consideration | Recurring | Axiometrics | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 167 | |
Contingent Consideration | Recurring | Level 1 | LeaseLabs | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Contingent Consideration | Recurring | Level 1 | AssetEye | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Contingent Consideration | Recurring | Level 1 | Axiometrics | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Contingent Consideration | Recurring | Level 2 | LeaseLabs | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Contingent Consideration | Recurring | Level 2 | AssetEye | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Contingent Consideration | Recurring | Level 2 | Axiometrics | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Contingent Consideration | Recurring | Level 3 | LeaseLabs | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 6,000 | ||
Contingent Consideration | Recurring | Level 3 | AssetEye | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 247 | ||
Contingent Consideration | Recurring | Level 3 | Axiometrics | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 167 | ||
Interest rate swap agreements | Recurring | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Assets measured at fair value | 923 | 1,329 | |
Liability measured at fair value | 413 | ||
Interest rate swap agreements | Recurring | Level 1 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Liability measured at fair value | 0 | ||
Interest rate swap agreements | Recurring | Level 2 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Assets measured at fair value | 923 | 1,329 | |
Liability measured at fair value | 413 | ||
Interest rate swap agreements | Recurring | Level 3 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Assets measured at fair value | 0 | $ 0 | |
Liability measured at fair value | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Fair Values (Details) - Level 3 - Contingent Consideration - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 414 | $ 541 |
Initial contingent consideration | 7,000 | 812 |
Settlements through cash payments | (247) | |
Net gain on change in fair value | (1,167) | (939) |
Ending balance | $ 6,000 | $ 414 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | May 29, 2018 | May 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 05, 2018 | Jun. 04, 2018 | Apr. 28, 2017 |
Class of Stock [Line Items] | |||||||||
Gross proceeds | $ 441,901,000 | $ 0 | $ 0 | ||||||
Stock issuance costs | $ 16,900,000 | ||||||||
Common stock, shares authorized (in shares) | 250,000,000 | 125,000,000 | 250,000,000 | 125,000,000 | |||||
Stock repurchase program, extension of period in force | 1 year | 1 year | |||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Amount authorized to be repurchased | $ 50,000,000 | $ 100,000,000 | |||||||
Number of shares repurchased (in shares) | 599,664 | 0 | 1,012,823 | ||||||
Weighted average cost per share (in dollars per share) | $ 46.83 | $ 0 | $ 20.98 | ||||||
Stock repurchased during period | $ 28,082,000 | $ 0 | $ 21,244,000 | ||||||
Public Stock Offering | |||||||||
Class of Stock [Line Items] | |||||||||
Public offering (in shares) | 8,050,000 | ||||||||
Gross proceeds | $ 458,900,000 | ||||||||
Net proceeds received | $ 441,900,000 | ||||||||
Over-Allotment Option | |||||||||
Class of Stock [Line Items] | |||||||||
Public offering (in shares) | 1,050,000 | ||||||||
Offering price (in dollars per share) | $ 57 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 24, 2018USD ($)derivative_instrument | Dec. 31, 2017USD ($) | Mar. 31, 2016USD ($)derivative_instrument | |
Interest rate swap agreements | ||||
Derivative [Line Items] | ||||
Number of instruments held | derivative_instrument | 2 | 2 | ||
Fixed interest rate | 2.57% | 0.89% | ||
Derivatives, contract termination value | $ 500 | |||
Other assets | Interest rate swap agreements | ||||
Derivative [Line Items] | ||||
Notional | 75,000 | $ 75,000 | $ 75,000 | |
Fair Value | 923 | $ 1,329 | ||
Other long-term liabilities | Interest rate swap agreements | ||||
Derivative [Line Items] | ||||
Notional | 100,000 | $ 100,000 | ||
Fair Value | 413 | |||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative [Line Items] | ||||
Cash flow hedge gain (loss) to be reclassified within 12 months | $ (900) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Gain (loss) from cash flow hedges, effect net of tax | $ 200 | $ (100) | $ (400) |
Interest rate swap agreements | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | 61 | 318 | 400 |
Interest rate swap agreements | Interest expense and other | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Income | 613 | 77 | (136) |
Gain (Loss) Recognized in Income | $ (73) | $ (54) | $ 152 |
Customer Deposits Held in Res_2
Customer Deposits Held in Restricted Accounts - Additional information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Tenant funds deposited in custodial account | $ 132,200 | $ 74,800 | |
Customer deposits held in restricted accounts | 154,601 | 96,057 | |
Restricted cash | 154,599 | 96,002 | $ 83,654 |
Payment Processing Services | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Customer deposits held in restricted accounts | 132,200 | 74,900 | |
Non-Insurance Services | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Customer deposits held in restricted accounts | 15,100 | 14,600 | |
Restricted cash | 15,100 | 14,600 | |
Insurance Products | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Customer deposits held in restricted accounts | 7,300 | 6,600 | |
Restricted cash | $ 7,300 | $ 6,600 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Aug. 31, 2016 | |
Convertible Debt Securities | WayBlazer Note | ||||
Schedule of Investments [Line Items] | ||||
Payments to acquire notes receivable | $ 2 | |||
Note receivable interest rate | 8.00% | |||
Other assets | Series A-1 | Convertible Preferred Stock | Compstak | ||||
Schedule of Investments [Line Items] | ||||
Carrying value of investment | $ 3 | |||
Maximum | Series A-1 | Convertible Preferred Stock | Compstak | ||||
Schedule of Investments [Line Items] | ||||
Investment ownership percentage (less than) | 20.00% | |||
Interest expense and other | WayBlazer Note | ||||
Schedule of Investments [Line Items] | ||||
Other nonoperating expense | $ 2 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 869,480 | $ 670,963 | $ 568,128 | ||||||||
Gross profit | $ 129,482 | $ 130,467 | $ 125,183 | $ 120,169 | $ 111,132 | $ 97,767 | $ 92,700 | $ 89,066 | 505,301 | 390,665 | 324,920 |
Net income | $ 6,272 | $ 9,073 | $ 8,479 | $ 10,901 | $ (20,865) | $ 6,834 | $ 6,213 | $ 8,195 | $ 34,725 | $ 377 | $ 16,650 |
Net income (loss) per share attributable to common stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.07 | $ 0.10 | $ 0.10 | $ 0.13 | $ (0.26) | $ 0.09 | $ 0.08 | $ 0.10 | $ 0.40 | $ 0 | $ 0.22 |
Diluted (in dollars per share) | $ 0.07 | $ 0.09 | $ 0.09 | $ 0.13 | $ (0.26) | $ 0.08 | $ 0.08 | $ 0.10 | $ 0.38 | $ 0 | $ 0.21 |
On demand | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 218,051 | $ 215,413 | $ 206,945 | $ 193,300 | $ 180,104 | $ 161,578 | $ 154,727 | $ 146,213 | $ 833,709 | $ 642,622 | $ 542,531 |
Professional and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 8,923 | 9,540 | 9,307 | 8,001 | 7,576 | 7,480 | 6,579 | 6,706 | 35,771 | 28,341 | 25,597 |
Service | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 226,974 | $ 224,953 | $ 216,252 | $ 201,301 | $ 187,680 | $ 169,058 | $ 161,306 | $ 152,919 | $ 869,480 | $ 670,963 | $ 568,128 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Changes In Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Balance at Beginning of Year | $ 3,951 | $ 2,468 | $ 2,318 |
Additions Charged to Income (2) | 17,180 | 4,458 | 4,786 |
Deductions | (16,983) | (2,975) | (4,636) |
Balance at End of Year | $ 8,850 | $ 3,951 | $ 2,468 |
Uncategorized Items - rp-201812
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |