Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Upland Software, Inc. | |
Entity Central Index Key | 1,505,155 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 20,775,731 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 52,976 | $ 28,758 |
Accounts receivable (net of allowance of $1,194 and $658 at September 30, 2017 and December 31, 2016, respectively) | 19,129 | 15,254 |
Prepaid and other | 2,970 | 3,287 |
Total current assets | 75,075 | 47,299 |
Canadian tax credits receivable | 1,715 | 978 |
Property and equipment, net | 3,462 | 4,356 |
Intangible assets, net | 47,512 | 28,512 |
Goodwill | 122,904 | 69,097 |
Other assets | 179 | 346 |
Total assets | 250,847 | 150,588 |
Current liabilities: | ||
Accounts payable | 3,976 | 1,268 |
Accrued compensation | 3,869 | 2,541 |
Accrued expenses and other | 8,897 | 5,505 |
Deferred revenue | 31,842 | 23,552 |
Due to sellers | 8,305 | 4,642 |
Current maturities of notes payable (includes unamortized discount of $674 and $329 at September 30, 2017 and December 31, 2016, respectively) | 1,701 | 2,190 |
Total current liabilities | 58,590 | 39,698 |
Canadian tax credit liability to sellers | 0 | 361 |
Notes payable, less current maturities (includes unamortized discount of $2,025 and $1,113 at September 30, 2017 and December 31, 2016, respectively) | 90,006 | 45,739 |
Deferred revenue | 1,299 | 247 |
Noncurrent deferred tax liability, net | 4,239 | 3,404 |
Other long-term liabilities | 1,366 | 2,126 |
Total liabilities | 155,500 | 91,575 |
Stockholders’ equity: | ||
Common stock, $0.0001 par value; 50,000,000 shares authorized: 20,761,399 and 17,785,288 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 2 | 2 |
Additional paid-in capital | 174,990 | 124,566 |
Accumulated other comprehensive loss | (2,311) | (3,152) |
Accumulated deficit | (77,334) | (62,403) |
Total stockholders’ equity | 95,347 | 59,013 |
Total liabilities and stockholders’ equity | $ 250,847 | $ 150,588 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,194 | $ 658 |
Unamortized discount, current | 674 | 329 |
Unamortized discount, noncurrent | $ 2,025 | $ 1,113 |
Par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Shares authorized (in shares) | 50,000,000 | 50,000,000 |
Shares issued (in shares) | 20,761,399 | 17,785,288 |
Shares outstanding (in shares) | 20,761,399 | 17,785,288 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue: | ||||
Subscription and support | $ 23,169 | $ 17,029 | $ 60,711 | $ 48,490 |
Perpetual license | 856 | 332 | 3,296 | 1,108 |
Total product revenue | 24,025 | 17,361 | 64,007 | 49,598 |
Professional services | 2,047 | 1,880 | 6,098 | 5,795 |
Total revenue | 26,072 | 19,241 | 70,105 | 55,393 |
Cost of revenue: | ||||
Subscription and support | 7,737 | 5,747 | 20,306 | 16,607 |
Professional services | 1,376 | 1,045 | 3,838 | 3,775 |
Total cost of revenue | 9,113 | 6,792 | 24,144 | 20,382 |
Gross profit | 16,959 | 12,449 | 45,961 | 35,011 |
Operating expenses: | ||||
Sales and marketing | 4,258 | 3,097 | 11,516 | 9,119 |
Research and development | 4,092 | 3,737 | 11,572 | 11,701 |
Refundable Canadian tax credits | (195) | (115) | (424) | (340) |
General and administrative | 5,084 | 4,670 | 17,564 | 13,340 |
Depreciation and amortization | 1,648 | 1,322 | 4,111 | 4,270 |
Acquisition-related expenses | 4,399 | 1,047 | 10,368 | 4,855 |
Total operating expenses | 19,286 | 13,758 | 54,707 | 42,945 |
Loss from operations | (2,327) | (1,309) | (8,746) | (7,934) |
Other expense: | ||||
Interest expense, net | (2,277) | (709) | (4,372) | (1,932) |
Loss on debt extinguishment | 1,634 | 0 | 0 | 0 |
Other expense, net | (130) | (64) | (260) | (1,105) |
Total other expense | (773) | (773) | (4,632) | (3,037) |
Loss before provision for income taxes | (3,100) | (2,082) | (13,378) | (10,971) |
Provision for income taxes | (406) | (308) | (1,553) | (569) |
Net loss | $ (3,506) | $ (2,390) | $ (14,931) | $ (11,540) |
Net loss per common share: | ||||
Net loss per common share, basic and diluted (in USD per share) | $ (0.18) | $ (0.14) | $ (0.83) | $ (0.71) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 19,380,519 | 16,702,062 | 18,043,365 | 16,339,983 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (3,506) | $ (2,390) | $ (14,931) | $ (11,540) |
Foreign currency translation adjustment | 508 | (67) | 841 | 414 |
Comprehensive loss | $ (2,998) | $ (2,457) | $ (14,090) | $ (11,126) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net loss | $ (14,931) | $ (11,540) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 8,112 | 7,499 |
Deferred income taxes | 698 | 251 |
Foreign currency re-measurement (gain) loss | (422) | (222) |
Non-cash interest and other expense | 416 | 196 |
Non-cash stock compensation expense | 7,804 | 2,664 |
Loss on disposal of business | 0 | 686 |
Non-cash loss on retirement of fixed assets | (18) | 0 |
Changes in operating assets and liabilities, net of purchase business combinations: | ||
Accounts receivable | 753 | 310 |
Prepaids and other | 1,664 | 820 |
Accounts payable | 1,736 | (126) |
Accrued expenses and other liabilities | 789 | (828) |
Deferred revenue | (793) | 1,425 |
Net cash provided by operating activities | 5,808 | 1,135 |
Investing activities | ||
Purchase of property and equipment | (443) | (886) |
Purchase of customer relationships | (55) | (408) |
Purchase business combinations, net of cash acquired | (61,108) | (11,846) |
Net cash used in investing activities | (61,606) | (13,140) |
Financing activities | ||
Payments on capital leases | (1,098) | (1,320) |
Proceeds from notes payable, net of issuance costs | 54,683 | 14,925 |
Payments on notes payable | (11,319) | (1,560) |
Issuance of common stock, net of issuance costs | 42,629 | 197 |
Additional consideration paid to sellers of businesses | (5,361) | (1,484) |
Net cash provided by financing activities | 79,534 | 10,758 |
Effect of exchange rate fluctuations on cash | 482 | 254 |
Change in cash and cash equivalents | 24,218 | (993) |
Cash and cash equivalents, beginning of period | 28,758 | 18,473 |
Cash and cash equivalents, end of period | 52,976 | 17,480 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 3,966 | 1,707 |
Cash paid for taxes | 1,463 | 518 |
Noncash investing and financing activities: | ||
Equipment acquired pursuant to capital lease obligations | 121 | 802 |
Issuance of common stock in business combination | $ 0 | $ 8,100 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. In the opinion of management of the Company, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments necessary for a fair presentation. The results of operations for the three months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any other period. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K filed with the SEC on March 30, 2017 . During the third quarter of 2017, we identified and corrected an immaterial charge in the reported non-cash loss on debt extinguishment and interest expense recorded in the second quarter 2017 in our Condensed Consolidated Statements of Operations. The Fourth Amendment to the Company’s Credit Agreement should have been accounted for as a modification rather than an extinguishment in accordance with the accounting literature under ASC 470, Debt. The unaudited Consolidated Statements of Operations for the three months ended September 30, 2017, reflect a reversal of the immaterial non-cash net $1.4 million charge to loss on debt extinguishment and interest expense. This matter had no effect on the reported revenue, gross profit, or the Condensed Consolidated Statement of Cash Flows and had no material effect on the Condensed Consolidated Balance Sheet, or Condensed Consolidated Statements of Comprehensive Loss. See Note 6 - Debt for more information related to the Company’s Credit Agreement. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses. Significant items subject to such estimates include allowance for doubtful accounts, stock-based compensation, contingent consideration, acquired intangible assets, the useful lives of intangible assets and property and equipment, and income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from those estimates. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalents are placed with high-quality financial institutions, which, at times, may exceed federally insured limits. The Company has not experienced any losses in these accounts, and the Company does not believe it is exposed to any significant credit risk related to cash and cash equivalents. The Company provides credit, in the normal course of business, to a number of its customers. The Company performs periodic credit evaluations of its customers and generally does not require collateral. No individual customer represented more than 10% of total revenues in the three months ended September 30, 2017 or for the year ended December 31, 2016 , or more than 10% of accounts receivable as of September 30, 2017 or December 31, 2016 . Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, and accounts payable, and long–term debt. The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value, primarily due to short maturities. The carrying values of the Company’s debt instruments approximated their fair value based on rates currently available to the Company. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 (Topic 606), Revenue from Contracts with Customers. ASU 2014-09 amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company will adopt ASU 2014-09 on January 1, 2018, and we expect to use the modified retrospective application method. The Company has made significant progress in the assessment phase of this project but has not yet fully determined the impact of the new revenue recognition standard on its systems, processes and consolidated financial statements; however, we expect the new standard may have the most significant impact on the manner in which we account for certain costs to acquire new contracts (i.e., selling and commission costs). Generally, as it relates to these types of costs, the provisions of the new standard will result in the deferral of these costs on the consolidated balance sheets and subsequently amortizing these costs to the consolidated statements of income over the expected life of our customer relationships, which we have preliminarily estimated to be approximately 6 years. In February 2016, the FASB issued ASU 2016-02, Leases. The core change with ASU 2016-2 is the requirement for the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect that the adoption of ASU 2016-02 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the effect that the adoption of ASU 2016-13 will have on its financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 is intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. The guidance in ASU 2016-15 is required for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this guidance will have a material impact on its financial statements. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which revises the definition of a business and assists in the evaluation of when a set of transferred assets and activities is a business. ASU 2017-01 is effective for interim and annual reporting periods beginning after December 15, 2017, and should be applied prospectively. Early adoption is permitted under certain circumstances. The Company does not expect the adoption of this guidance will have a material impact on its financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. We currently anticipate that the adoption of ASU 2017-04 will not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment awarded require an entity to apply modification accounting. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in ASU 2017-09 are to be applied prospectively to an award modified on or after the adoption date; consequently, the impact will be dependent on whether we modify any share-based payment awards and the nature of such modifications. The adoption of this standard is not expected to have a material impact on our financial statements. Recently adopted accounting pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2014-15 during the first quarter of 2017. No additional disclosure was deemed necessary upon the adoption of ASU 2014-15. This standard would not result in an amount being recorded. In March 2016, the FASB issued ASU 2016-09, Stock Compensation. The core change with ASU 2016-09 is the simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2016-09 during the first quarter of 2017. No impact on the financial statements was recorded as a result of the adoption of ASU 2016-09. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions 2017 Acquisitions On January 10, 2017, the Company completed its purchase of Omtool, Ltd ("Omtool"), a document capture, fax and workflow solution company. The purchase price consideration paid was approximately $19.3 million in cash payable at closing (net of $3.0 million of cash acquired). Revenues recorded since the acquisition date through September 30, 2017 were approximately $8.0 million . On April 21, 2017, the Company acquired RightAnswers, Inc. ("RightAnswers"), a cloud-based knowledge management system. The purchase price was $17.4 million , in cash at closing (net of $0.1 million cash acquired) and a $2.5 million cash holdback payable in one year (subject to indemnification claims) and excludes potential future earn-out payments tied to additional performance-based goals. Revenues recorded since the acquisition date through September 30, 2017 were approximately $3.4 million . On July 13, 2017, the Company acquired Waterfall International Inc. (“Waterfall”), a cloud-based mobile messaging platform. The purchase price consideration paid was approximately $24.4 million in cash at closing (net of $0.4 million of cash acquired) and a $1.5 million cash holdback payable in 18 months (subject to indemnification claims). The foregoing excludes additional potential $3.0 million in earnout payments tied to performance-based conditions. Revenues recorded since the acquisition date through September 30, 2017 were approximately $2.6 million . 2016 Acquisitions On January 7, 2016, the Company completed its purchase of LeadLander, Inc. ("LeadLander"), a website analytics provider. The purchase price consideration paid was approximately $8.0 million in cash payable at closing (net of $0.4 million of cash acquired) and a $1.2 million cash holdback payable in 12 months (subject to indemnification claims), which was fully paid after December 31, 2016. In addition, the Asset Purchase Agreement included a contingent share consideration component pursuant to which the Company issued an aggregate of $2.4 million in common stock on July 25, 2016. On March 14, 2016, the Company completed its purchase of HipCricket, Inc. ("HipCricket"), a cloud-based mobile messaging software provider. The consideration paid to the seller consisted of the issuance of one million shares of the Company's common stock and the transfer of the Company's EPM Live product business. The value of the shares on the closing date of the transaction was approximately $5.7 million , and the fair value of the EPM Live product business was approximately $5.9 million . At the time of the acquisition, the Company recognized a loss on the transfer in conjunction with the EPM Live net asset value of approximately $0.7 million in other expenses, net. Prior to the transaction, HipCricket was owned by an affiliate of ESW Capital, LLC, which is a shareholder of the Company. Raymond James & Co. provided a fairness opinion to the Company in connection with the transaction. On April 27, 2016, the Company acquired Advanced Processing & Imaging, Inc. ("API"), a content management platform driving workflow in governments and schools. The purchase price consideration consisted of $4.1 million in cash payable at closing (net of $0.1 million of cash acquired), and a $0.8 million cash holdback payable in 12 months (subject to indemnification claims). The following condensed table presents the preliminary and finalized acquisition-date fair value of the assets acquired and liabilities assumed for the acquisitions in 2016 and through the nine months ended September 30, 2017 , as well as assets and liabilities (in thousands): Preliminary Finalized Waterfall RightAnswers Omtool API HipCricket LeadLander Year Acquired 2017 2017 2017 2016 2016 2016 Cash $ 435 $ 139 $ 2,957 $ 125 $ — $ 365 Accounts receivable 1,442 2,164 784 821 1,226 199 Other current assets 1,031 125 607 54 273 55 Property and equipment 74 158 63 68 — 5 Customer relationships 5,700 5,700 4,400 1,420 1,000 970 Trade name 110 200 170 40 70 70 Technology 2,800 2,600 3,180 810 900 1,410 Goodwill 18,747 20,100 13,933 3,420 8,531 13,104 Other assets — — 33 89 — 6 Total assets acquired 30,339 31,186 26,127 6,847 12,000 16,184 Accounts payable (605 ) (139 ) (219 ) (11 ) (44 ) — Accrued expense and other (1,382 ) (1,321 ) (915 ) (137 ) — (254 ) Deferred revenue (1,220 ) (5,428 ) (2,779 ) (1,699 ) (356 ) (910 ) Total liabilities assumed (3,207 ) (6,888 ) (3,913 ) (1,847 ) (400 ) (1,164 ) Total consideration $ 27,132 $ 24,298 $ 22,214 $ 5,000 $ 11,600 $ 15,020 Tangible assets were valued at their respective carrying amounts, which approximates their estimated fair value. The valuation of identifiable intangible assets reflects management’s estimates based on, among other factors, use of established valuation methods. Customer relationships were valued using an income approach, which estimates fair value based on the earnings and cash flow capacity of the subject asset. The value of the marketing-related intangibles was determined using a relief-from-royalty method, which estimates fair value based on the value the owner of the asset receives from not having to pay a royalty to use the asset. Developed technology was valued using a cost-to-recreate approach. The Company recorded the purchase of the acquisitions described above using the acquisition method of accounting and, accordingly, recognized the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The purchase price allocations for the 2017 acquisitions of Omtool, RightAnswers, and Waterfall are preliminary as the Company has not obtained and evaluated all of the detailed information necessary to finalize the opening balance sheet amounts in all respects. The purchase price allocations for the 2016 acquisitions of Leadlander, HipCricket, and API are final. Management has recorded the purchase price allocations based upon acquired company information that is currently available. Management expects to close its purchase price allocations for Omtool and RightAnswers during the last quarter of 2017 and during the first half of 2018 for Waterfall. The goodwill of $77.8 million for the above acquisitions is primarily attributable to the synergies expected to arise after the acquisition. Goodwill ded uctible for tax purposes is $11.6 million for the LeadLander acquisition, $8.2 million for HipCricket, and $3.7 million for Waterfall. There was no goodwill deductible for tax purposes for the API, Omtool, and RightAnswers acquisitions. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP sets forth a three–tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three tiers are Level 1, defined as observable inputs, such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, which therefore requires an entity to develop its own assumptions. Changes to the fair value of earnout liabilities are recorded to other expense, net. Lia bilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2016 Level 1 Level 2 Level 3 Total Earnout consideration liability $ — $ — $ 2,500 $ 2,500 Fair Value Measurements at September 30, 2017 (unaudited) Level 1 Level 2 Level 3 Total Earnout consideration liability $ — $ — $ 4,193 $ 4,193 The Level 3 earnout consideration liability consists of amounts associated with the acquisitions of LeadLander in January 2016, RightAnswers in April 2017, and Waterfall in July 2017. The December 31, 2016 Level 3 earnout consideration liability opening balance for LeadLander of $2.5 million was settled in March 2017, a Level 3 earnout consideration liability associated with RightAnswers added $4.0 million in April 2017, of which $1.0 million was settled during September 2017, leaving a remaining balance of $3.0 million as of September 30, 2017 . In addition, a Level 3 earnout consideration liability associated with Waterfall added $1.2 million in July 2017. The following table presents additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value (in thousands): Ending balance at December 31, 2016 $ 2,500 Additions - cash earnouts 5,226 Settlements - cash earnouts (3,533 ) Ending balance at September 30, 2017 $ 4,193 The fair value of the cash earnout consideration was determined using the Binary Option model based on the present value of the probability-weighted earnout consideration. Debt The Company believes the carrying value of its long-term debt at September 30, 2017 approximates its fair value based on the variable interest rate feature or based upon interest rates currently available to the Company. The estimated fair value and carrying value of the Company's debt at September 30, 2017 and December 31, 2016 is $94.4 million and $49.4 million , respectively, based on valuation methodologies using interest rates currently available to the Company which are Level 2 inputs. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 4. Goodwill and Other Intangible Assets Changes in the Company’s goodwill balance for the nine months ended September 30, 2017 are summarized in the table below (in thousands): Balance at December 31, 2016 $ 69,097 Acquired in business combinations 52,782 Adjustment due to prior year business combinations 17 Foreign currency translation adjustment 1,008 Balance at September 30, 2017 $ 122,904 Net intangible assets include the estimated acquisition-date fair values of customer relationships, marketing-related assets, and developed technology that the Company recorded as part of its business acquisitions. The following is a summary of the Company’s intangible assets, net (in thousands): Estimated Useful Gross Accumulated Net Carrying September 30, 2017: Customer relationships 1-10 $ 49,159 $ 16,131 $ 33,028 Trade name 1.5-3 3,134 2,799 335 Developed technology 4-7 24,007 9,858 14,149 Total intangible assets $ 76,300 $ 28,788 $ 47,512 Estimated Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount December 31, 2016: Customer relationships 1-10 $ 32,703 $ 12,418 $ 20,285 Trade name 1.5-3 2,636 2,462 174 Developed technology 4-7 15,228 7,175 8,053 Total intangible assets $ 50,567 $ 22,055 $ 28,512 The following table summarizes the Company's weighted-average amortization period, in total and by major finite-lived intangible asset class (in years): September 30, 2017 December 31, 2016 Customer relationships 8.9 9.3 Trade name 0.6 2.8 Developed technology 6.3 6.3 Total weighted-average amortization period 7.7 8.0 The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in either a diminished fair value or revised useful life. There have been no indicators of impairment or change in the useful life during the three and nine months ended September 30, 2017 and September 30, 2016 , respectively. Total amortization expense during the nine months ended September 30, 2017 and September 30, 2016 was $6.3 million and $5.6 million , respectively. Estimated annual amortization expense for the next five years and thereafter is as follows (in thousands): Amortization Year ending December 31: Remainder of 2017 $ 2,445 2018 9,520 2019 8,452 2020 7,477 2021 7,082 2022 and thereafter 12,536 Total $ 47,512 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s income tax provision for the three and nine months ended September 30, 2017 and September 30, 2016 reflects its estimate of the effective tax rates expected to be applicable for the full years, adjusted for any discrete events that are recorded in the period in which they occur. The estimates are re-evaluated each quarter based on the estimated tax expense for the full year. The tax provision for the three and nine months ended September 30, 2017 and September 30, 2016 is primarily related to foreign income taxes associated with our Canadian operations, changes in deferred tax liabilities associated with amortization of United States tax deductible goodwill and state taxes in certain states in which the Company does not file on a consolidated basis or have net operating loss carryforwards. The Company has historically incurred operating losses in the United States and, given its cumulative losses and limited history of profits, has recorded a valuation allowance against its United States net deferred tax assets, exclusive of tax deductible goodwill, at September 30, 2017 and September 30, 2016 , respectively. The Company has reflected any uncertain tax positions within its current taxes payable, but none in deferred taxes. Federal, state, and foreign income tax returns have been filed in jurisdictions with varying statutes of limitations. Varying among the separate companies, tax years 1998 through 2016 remain subject to examination by federal and most state tax authorities due to our net operating loss carryforwards. In foreign jurisdictions, tax years 2008 through 2016 remain subject to examination. The Company increased both its net operating loss deferred tax asset and its valuation allowance by $152,000 upon adoption of ASU 2016-09 relating to certain tax deductions associated with stock option transactions greater than the stock-related compensation expense for financial statement purposes. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 6. Deb t Long-term debt consisted of the following at September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Senior secured loans (includes unamortized discount of $2,699 and $1,442 based on an imputed interest rate of 7.5% and 6.6%, at September 30, 2017 and December 31, 2016, respectively) $ 91,707 $ 47,929 Less current maturities (1,701 ) (2,190 ) Total long-term debt $ 90,006 $ 45,739 Loan and Security Agreements Fifth Amendment to Credit Facility On August 2, 2017, the Company amended and expanded its Credit Agreement (the “Credit Facility”). The Company entered into the Credit Facility with Wells Fargo Capital Finance and CIT Bank, N.A. as joint lead arrangers, and including Goldman Sachs Bank USA, Regions Bank, and Citizens Bank, N.A. (collectively, the "Lenders"), with a Fifth Amendment to Credit Agreement (the “Fifth Amendment”) that amends that certain Credit Facility dated as of May 14, 2015 among inter alia the Company, certain of its subsidiaries, and each of the Lenders named in the Credit Facility. Loans The Fifth Amendment to the Credit Facility provides for a $200.0 million credit facility, including (i) a fully drawn $95.0 million term loan, (ii) a fully available $40.0 million delayed draw term loan commitment (the "DDTL"), (iii) a fully available $10.0 million revolving loan commitment, and (iv) a $55.0 million uncommitted accordion. Specifically, the Credit Facility provides for $95.0 million of term debt comprised of (i) a fully drawn U.S. term loan facility in an aggregate principal amount of $89.6 million (the “U.S. Term Loan”), (ii) a fully drawn Canadian term loan facility in an aggregate principal amount of $5.4 million (the “Canadian Term Loan” together with the U.S. and Canadian Term Loans, the “Term Loans”). The Credit Facility also provides for the expansion of the Company’s delayed draw term facility from $10.0 million to $40.0 million and for an increase in the Company’s uncommitted accordion amount from $20.0 million to $55.0 million . In addition, the Credit Facility also provides for revolvers of $10.0 million , comprised of (i) a U.S. revolving credit facility in an aggregate principal amount of up to $9.0 million (the “U.S. Revolver”), (ii) a Canadian revolving credit facility in an aggregate principal amount of up to $1.0 million (the “Canadian Revolver” and, together with the U.S. Revolver, the “Revolver”). As of September 30, 2017 , there were no amounts drawn on its U.S. Revolver or Canadian Revolver loans outstanding under the Credit Facility, and there was $94.4 million outstanding on the Term Loans comprised of (i) $89.0 million in the U.S. Term Loans outstanding under the Credit Facility; and (ii) $5.4 million in the Canadian Term Loans outstanding under the Credit Facility. Terms of Term Loans Under the terms of the Fifth Amendment, the Term Loans are repayable, on a quarterly basis by an amount equal to 2.5% per annum on or before June 30, 2019, after which the existing 5.0% per annum is due thereafter until the facility’s maturity date of August 2, 2022. In addition, the leverage ratio was adjusted to exclude from the definition of Funded Indebtedness up to $15.0 million of qualified cash in excess of $2.5 million of qualified cash. Also, the maximum amount of purchase consideration payable in respect of an individual permitted acquisition increased from $20.0 million to $25.0 million and in respect of all permitted acquisitions from $75.0 million to $175.0 million . In addition, the amount of permitted indebtedness to sellers of businesses increased from $16.7 million to $20.0 million . Terms of Delay Draw Term Loan Pursuant to the terms of the Credit Facility, the $40.0 million DDTL is to be used to finance acquisitions. The DDTL, if all or a portion is drawn, is repayable, on a quarterly basis, by an amount equal to 2.5% per annum on or before June 30, 2019, after which the existing 5.0% per annum is due thereafter until the facility’s maturity date of August 2, 2022. Terms of Revolver Loans under the Revolver are available up to the lesser of (i) $10.0 million (the “Maximum Revolver Amount”) or (ii) the maximum facility amount of $145.0 million , less the sum of any amount of Revolver usage plus the outstanding balance of the Term Loans and other uses of the capacity made under the Credit Facility (such amount, the “Credit Amount”). The Revolver provides a subfacility whereby the Company may request letters of credit (the “Letters of Credit”) in an aggregate amount not to exceed, at any one time outstanding, $0.5 million and $0.25 million , from the U.S and Canadian facilities, respectively. The aggregate amount of outstanding Letters of Credit is reserved against the credit availability under the Maximum Revolver Amount and the Credit Amount. Loans under the Revolver may be borrowed, repaid and reborrowed until August 2, 2022 (the “Maturity Date”), at which time all amounts borrowed under the Credit Facility must be repaid. Other Terms of Credit Facility At the option of the Company, U.S. loans accrue interest at a per annum rate based on (i) the U.S. base rate plus a margin ranging from 3.75% to 4.50% depending on the leverage ratio or (ii) the U.S. LIBOR rate determined in accordance with the Credit Facility (based on 1, 2, 3 or 6-month interest periods) plus a margin ranging from 4.75% to 5.50% depending on the leverage ratio. The U.S. base rate is a rate equal to the highest of (i) the federal funds rate plus a margin equal to 0.5% , the U.S. LIBOR rate for a 1-month interest period plus 1.0% , and (ii) Wells Fargo Capital Finance’s prime rate. At the option of the Company, the Canadian loans accrue interest at a per annum rate based on (i) the Canadian prime rate or the U.S. base rate plus a margin ranging from 3.75% to 4.50% depending on the leverage ratio or (ii) the U.S. LIBOR rate determined in accordance with the Credit Facility (based on 1, 2, 3 or 6-month interest periods) (or the Canadian Bankers' Acceptance ("Canadian BA") rate determined in accordance with the Credit Facility for obligations in Canadian dollars) plus a margin ranging from 4.75% to 5.50% depending on the leverage ratio. Accrued interest on the loans will be paid monthly, or, with respect to loans that are accruing interest based on the U.S. LIBOR rate or Canadian BA rate, at the end of the applicable U.S. LIBOR or Canadian BA interest rate period. Lenders are entitled to a premium (the “Prepayment Premium”) in the event of certain prepayments of the loans in an amount equal to (i) August 2, 2017 to August 1, 2018, 2.0% times the sum of (a) the Maximum Revolver Amount plus (b) the outstanding principal amount of the Term Loans and DDTL on the date immediately prior to the date of the prepayment (such sum, the “Prepayment Amount”) (ii) from August 2, 2018 to August 1, 2019, 1.0% times the Prepayment Amount and (iii) from August 2, 2019 to the Maturity Date, 0.0% times the Prepayment Amount. The Company may also be subject to prepayment fees in the case of commitment reductions of the Revolver and also may be obligated to prepay loans upon the occurrence of certain events. The Company is also obligated to pay other customary servicing fees, letter of credit fees and unused credit facility fees. The Credit Facility contains customary affirmative and negative covenants. The negative covenants limit the ability of the Company and its subsidiaries to, among other things (in each case subject to customary exceptions for a credit facility of this size and type): • Incur additional indebtedness or guarantee indebtedness of others; • Create liens on their assets; • Make investments, including certain acquisitions; • Enter into mergers or consolidations; • Dispose of assets; • Pay dividends and make other distributions on the Company’s capital stock, and redeem and repurchase the Company’s capital stock; • Enter into transactions with affiliates; and • Prepay indebtedness or make changes to certain agreements. There are certain financial covenants that became more restrictive starting March 31, 2018. If an event of default occurs, at the election of the Lenders, a default interest rate shall apply on all obligations during an event of default, at a rate per annum equal to 2.00% above the applicable interest rate. The Credit Facility permits the Company's to buyback up to $10.0 million of its capital stock, subject to restrictions including a minimum liquidity requirement of $25.0 million before and after any such buyback. Interest Rate and Debt Discount Cash interest costs averaged 6.6% and 5.7% under the Credit Facility for the three months ended September 30, 2017 and for the year ended December 31, 2016 , respectively. In addition, the Company has $2.7 million of unamortized debt discount associated with the Credit Facility as of September 30, 2017 . These debt discount costs will be amortized to non-cash interest expense over the term of the Credit Facility. Debt Maturities Under the terms of the Fifth Amendment, f uture debt maturities of long-term debt (excluding financing costs) at September 30, 2017 are as follows (in thousands): Year ending December 31: Remaining 2017 $ 594 2018 2,375 2019 3,563 2020 4,750 2021 4,750 Thereafter 78,374 $ 94,406 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 7. Net Loss Per Share The following table sets forth the computations of loss per share (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net Loss $ (3,506 ) $ (2,390 ) $ (14,931 ) $ (11,540 ) Denominator: Weighted–average common shares outstanding, basic and diluted 19,380,519 16,702,062 18,043,365 16,339,983 Net loss per common share, basic and diluted $ (0.18 ) $ (0.14 ) $ (0.83 ) $ (0.71 ) Due to the net losses for the three and nine months ended September 30, 2017 and September 30, 2016 , respectively, basic and diluted loss per share were the same, as the effect of all potentially dilutive securities would have been anti–dilutive. The following table sets forth the anti–dilutive common share equivalents as of September 30, 2017 and September 30, 2016 : September 30, 2017 2016 Stock options 626,023 780,645 Restricted stock 1,349,279 1,055,738 Total anti–dilutive common share equivalents 1,975,302 1,836,383 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Purchase Commitments During the nine months ended September 30, 2017 and September 30, 2016 , the Company purchased software development services pursuant to a technology services agreement with DevFactory FZ-LLC, in the amount of $1.8 million and 1.7 million , respectively . See Note 11 — Related Party Transactions for more information regarding our purchase commitment to this related party. On March 28, 2017, the Company entered into an amendment to the Amended and Restated Technology Services Agreement with DevFactory FZ-LLC to extend the initial term end date from December 31, 2017 to December 31, 2021. Additionally, the Company amended the option for either party to renew annually for one additional year. The effective date of the amendment was January 1, 2017. Litigation In the normal course of business, the Company may become involved in various lawsuits and legal proceedings. At this time, the Company is not involved in any current or pending legal proceedings and does not anticipate any legal proceedings that may have a material adverse affect on the consolidated financial position or results of operations of the Company. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders' Equity On May 12, 2017, the Company filed a registration statement on Form S-3 (File No. 333-217977) (the "S-3"), to register Upland securities in an aggregate amount of up to $75.0 million for offerings from time to time. The S-3 was amended on May 22, 2017 and declared effective on May 26, 2017. On June 6, 2017, the Company completed a registered underwritten public offering pursuant to the S-3. The net proceeds of the offering were approximately $42.7 million , net of issuance costs, in exchange for 2,139,534 shares of common stock. See Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources for more information related to the public underwritten offering. As of September 30, 2017 , the Company may issue up to approximately $29.0 million of securities under the remaining capacity of its S-3 shelf registration. Restricted Stock Awards Restricted share activity during the nine months ended September 30, 2017 was as follows: Number of Weighted-Average Grant Date Fair Value Unvested balances at December 31, 2016 839,477 $ 7.55 Awards granted 804,415 Awards vested (249,501 ) Awards forfeited (45,112 ) Unvested balances at September 30, 2017 1,349,279 $ 12.38 Stock Option Activity Stock option activity during the nine months ended September 30, 2017 was as follows: Number of Weighted– Outstanding at December 31, 2016 759,719 $ 6.06 Options granted 26,100 $ 23.60 Options exercised (131,843 ) $ 4.96 Options forfeited (27,788 ) $ 10.57 Options expired (165 ) $ 4.33 Outstanding at September 30, 2017 626,023 $ 6.83 Share-based Compensation The Company recognized share-based compensation expense from all awards in the following expense categories (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 147 $ 13 $ 277 $ 28 Research and development 219 38 560 80 Sales and marketing 73 21 149 66 General and administrative 1,445 1,028 6,818 2,490 Total $ 1,884 $ 1,100 $ 7,804 $ 2,664 |
Domestic and Foreign Operations
Domestic and Foreign Operations | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Domestic and Foreign Operations | 10. Domestic and Foreign Operations Revenue by geography is based on the ship-to address of the customer, which is intended to approximate where the customer’s users are located. The ship-to country is generally the same as the billing country. The Company has operations in the U.S., Canada and Europe. Information about these operations is presented below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues: U.S. $ 21,455 $ 16,240 $ 57,080 $ 46,403 Canada 1,186 1,058 3,265 3,071 Other International 3,418 1,943 9,747 5,919 Total Revenues $ 26,059 $ 19,241 $ 70,092 $ 55,393 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions During the nine months ended September 30, 2017 and September 30, 2016 , the Company purchased software development services pursuant to a technology services agreement with DevFactory FZ-LLC, in the amount of $1.8 million and $1.7 million , respectively. On March 28, 2017, the Company entered into an amendment to the Amended and Restated Technology Services Agreement to extend the initial term end date from December 31, 2017 to December 31, 2021. Additionally, the Company amended the option for either party to renew annually for one additional year. The effective date of the amendment is January 1, 2017. The Company has an outstanding purchase commitment in 2017 for software development services pursuant to a technology services agreement in the amount of $2.5 million . For years after 2017 , the purchase commitment amount for software development services will be equal to the prior year purchase commitment increased (decreased) by the percentage change in total revenue for the prior year as compared to the preceding year. For example, if 2017 total revenues increase by 10% as compared to 2016 total revenues, then the 2018 purchase commitment will increase by approximately $250,000 from the 2017 purchase commitment amount to approximately $2.8 million . The Company purchased approximately $2.2 million and $1.1 million in services from Crossover, Inc. during the nine months ended September 30, 2017 and September 30, 2016 , respectively. While there are no purchase commitments with Crossover, Inc., the Company continues to use its services in 2017. The Company has an arrangement with a former subsidiary to provide management, human resource, payroll and administrative services. The Company received fees from this arrangement during the nine months ended September 30, 2017 and September 30, 2016 totaling $270,000 in each period, respectively. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. In the opinion of management of the Company, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments necessary for a fair presentation. The results of operations for the three months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any other period. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K filed with the SEC on March 30, 2017 . |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses. Significant items subject to such estimates include allowance for doubtful accounts, stock-based compensation, contingent consideration, acquired intangible assets, the useful lives of intangible assets and property and equipment, and income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from those estimates. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents and accounts receivable. The Company’s cash and cash equivalents are placed with high-quality financial institutions, which, at times, may exceed federally insured limits. The Company has not experienced any losses in these accounts, and the Company does not believe it is exposed to any significant credit risk related to cash and cash equivalents. The Company provides credit, in the normal course of business, to a number of its customers. The Company performs periodic credit evaluations of its customers and generally does not require collateral. No individual customer represented more than 10% of total revenues in the three months ended September 30, 2017 or for the year ended December 31, 2016 , or more than 10% of accounts receivable as of September 30, 2017 or December 31, 2016 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, and accounts payable, and long–term debt. The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value, primarily due to short maturities. The carrying values of the Company’s debt instruments approximated their fair value based on rates currently available to the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 (Topic 606), Revenue from Contracts with Customers. ASU 2014-09 amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company will adopt ASU 2014-09 on January 1, 2018, and we expect to use the modified retrospective application method. The Company has made significant progress in the assessment phase of this project but has not yet fully determined the impact of the new revenue recognition standard on its systems, processes and consolidated financial statements; however, we expect the new standard may have the most significant impact on the manner in which we account for certain costs to acquire new contracts (i.e., selling and commission costs). Generally, as it relates to these types of costs, the provisions of the new standard will result in the deferral of these costs on the consolidated balance sheets and subsequently amortizing these costs to the consolidated statements of income over the expected life of our customer relationships, which we have preliminarily estimated to be approximately 6 years. In February 2016, the FASB issued ASU 2016-02, Leases. The core change with ASU 2016-2 is the requirement for the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect that the adoption of ASU 2016-02 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the effect that the adoption of ASU 2016-13 will have on its financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 is intended to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows and to eliminate the diversity in practice related to such classifications. The guidance in ASU 2016-15 is required for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of this guidance will have a material impact on its financial statements. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which revises the definition of a business and assists in the evaluation of when a set of transferred assets and activities is a business. ASU 2017-01 is effective for interim and annual reporting periods beginning after December 15, 2017, and should be applied prospectively. Early adoption is permitted under certain circumstances. The Company does not expect the adoption of this guidance will have a material impact on its financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. We currently anticipate that the adoption of ASU 2017-04 will not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment awarded require an entity to apply modification accounting. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in ASU 2017-09 are to be applied prospectively to an award modified on or after the adoption date; consequently, the impact will be dependent on whether we modify any share-based payment awards and the nature of such modifications. The adoption of this standard is not expected to have a material impact on our financial statements. Recently adopted accounting pronouncements In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2014-15 during the first quarter of 2017. No additional disclosure was deemed necessary upon the adoption of ASU 2014-15. This standard would not result in an amount being recorded. In March 2016, the FASB issued ASU 2016-09, Stock Compensation. The core change with ASU 2016-09 is the simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2016-09 during the first quarter of 2017. No impact on the financial statements was recorded as a result of the adoption of ASU 2016-09. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Assets and Liabilities Assumed Through Acquisition | The following condensed table presents the preliminary and finalized acquisition-date fair value of the assets acquired and liabilities assumed for the acquisitions in 2016 and through the nine months ended September 30, 2017 , as well as assets and liabilities (in thousands): Preliminary Finalized Waterfall RightAnswers Omtool API HipCricket LeadLander Year Acquired 2017 2017 2017 2016 2016 2016 Cash $ 435 $ 139 $ 2,957 $ 125 $ — $ 365 Accounts receivable 1,442 2,164 784 821 1,226 199 Other current assets 1,031 125 607 54 273 55 Property and equipment 74 158 63 68 — 5 Customer relationships 5,700 5,700 4,400 1,420 1,000 970 Trade name 110 200 170 40 70 70 Technology 2,800 2,600 3,180 810 900 1,410 Goodwill 18,747 20,100 13,933 3,420 8,531 13,104 Other assets — — 33 89 — 6 Total assets acquired 30,339 31,186 26,127 6,847 12,000 16,184 Accounts payable (605 ) (139 ) (219 ) (11 ) (44 ) — Accrued expense and other (1,382 ) (1,321 ) (915 ) (137 ) — (254 ) Deferred revenue (1,220 ) (5,428 ) (2,779 ) (1,699 ) (356 ) (910 ) Total liabilities assumed (3,207 ) (6,888 ) (3,913 ) (1,847 ) (400 ) (1,164 ) Total consideration $ 27,132 $ 24,298 $ 22,214 $ 5,000 $ 11,600 $ 15,020 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Liabilities Measured at Fair Value on a Recurring Basis | Lia bilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2016 Level 1 Level 2 Level 3 Total Earnout consideration liability $ — $ — $ 2,500 $ 2,500 Fair Value Measurements at September 30, 2017 (unaudited) Level 1 Level 2 Level 3 Total Earnout consideration liability $ — $ — $ 4,193 $ 4,193 |
Schedule of Liabilities Measured at Fair Value on a Recurring Basis which Unobservable Inputs are Utilized | The following table presents additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value (in thousands): Ending balance at December 31, 2016 $ 2,500 Additions - cash earnouts 5,226 Settlements - cash earnouts (3,533 ) Ending balance at September 30, 2017 $ 4,193 |
Goodwill and Other Intangible21
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the Company’s goodwill balance for the nine months ended September 30, 2017 are summarized in the table below (in thousands): Balance at December 31, 2016 $ 69,097 Acquired in business combinations 52,782 Adjustment due to prior year business combinations 17 Foreign currency translation adjustment 1,008 Balance at September 30, 2017 $ 122,904 |
Summary of intangible assets, net | The following is a summary of the Company’s intangible assets, net (in thousands): Estimated Useful Gross Accumulated Net Carrying September 30, 2017: Customer relationships 1-10 $ 49,159 $ 16,131 $ 33,028 Trade name 1.5-3 3,134 2,799 335 Developed technology 4-7 24,007 9,858 14,149 Total intangible assets $ 76,300 $ 28,788 $ 47,512 Estimated Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount December 31, 2016: Customer relationships 1-10 $ 32,703 $ 12,418 $ 20,285 Trade name 1.5-3 2,636 2,462 174 Developed technology 4-7 15,228 7,175 8,053 Total intangible assets $ 50,567 $ 22,055 $ 28,512 |
Schedule of weighted-average amortization period | The following table summarizes the Company's weighted-average amortization period, in total and by major finite-lived intangible asset class (in years): September 30, 2017 December 31, 2016 Customer relationships 8.9 9.3 Trade name 0.6 2.8 Developed technology 6.3 6.3 Total weighted-average amortization period 7.7 8.0 |
Estimated annual amortization expense | Estimated annual amortization expense for the next five years and thereafter is as follows (in thousands): Amortization Year ending December 31: Remainder of 2017 $ 2,445 2018 9,520 2019 8,452 2020 7,477 2021 7,082 2022 and thereafter 12,536 Total $ 47,512 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following at September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Senior secured loans (includes unamortized discount of $2,699 and $1,442 based on an imputed interest rate of 7.5% and 6.6%, at September 30, 2017 and December 31, 2016, respectively) $ 91,707 $ 47,929 Less current maturities (1,701 ) (2,190 ) Total long-term debt $ 90,006 $ 45,739 |
Schedule of future debt maturities of long-term debt (excluding financing costs) | Under the terms of the Fifth Amendment, f uture debt maturities of long-term debt (excluding financing costs) at September 30, 2017 are as follows (in thousands): Year ending December 31: Remaining 2017 $ 594 2018 2,375 2019 3,563 2020 4,750 2021 4,750 Thereafter 78,374 $ 94,406 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computations of loss per share | The following table sets forth the computations of loss per share (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net Loss $ (3,506 ) $ (2,390 ) $ (14,931 ) $ (11,540 ) Denominator: Weighted–average common shares outstanding, basic and diluted 19,380,519 16,702,062 18,043,365 16,339,983 Net loss per common share, basic and diluted $ (0.18 ) $ (0.14 ) $ (0.83 ) $ (0.71 ) |
Schedule of anti–dilutive common share equivalents | The following table sets forth the anti–dilutive common share equivalents as of September 30, 2017 and September 30, 2016 : September 30, 2017 2016 Stock options 626,023 780,645 Restricted stock 1,349,279 1,055,738 Total anti–dilutive common share equivalents 1,975,302 1,836,383 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of restricted stock activity | Restricted share activity during the nine months ended September 30, 2017 was as follows: Number of Weighted-Average Grant Date Fair Value Unvested balances at December 31, 2016 839,477 $ 7.55 Awards granted 804,415 Awards vested (249,501 ) Awards forfeited (45,112 ) Unvested balances at September 30, 2017 1,349,279 $ 12.38 |
Schedule of stock option activity | Stock option activity during the nine months ended September 30, 2017 was as follows: Number of Weighted– Outstanding at December 31, 2016 759,719 $ 6.06 Options granted 26,100 $ 23.60 Options exercised (131,843 ) $ 4.96 Options forfeited (27,788 ) $ 10.57 Options expired (165 ) $ 4.33 Outstanding at September 30, 2017 626,023 $ 6.83 |
Schedule of allocated share-based compensation expense | The Company recognized share-based compensation expense from all awards in the following expense categories (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 147 $ 13 $ 277 $ 28 Research and development 219 38 560 80 Sales and marketing 73 21 149 66 General and administrative 1,445 1,028 6,818 2,490 Total $ 1,884 $ 1,100 $ 7,804 $ 2,664 |
Domestic and Foreign Operatio25
Domestic and Foreign Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographical area | The Company has operations in the U.S., Canada and Europe. Information about these operations is presented below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues: U.S. $ 21,455 $ 16,240 $ 57,080 $ 46,403 Canada 1,186 1,058 3,265 3,071 Other International 3,418 1,943 9,747 5,919 Total Revenues $ 26,059 $ 19,241 $ 70,092 $ 55,393 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Loss on extinguishment of debt | $ (1,634) | $ 0 | $ 0 | $ 0 |
Reclassify Gain on Debt Modification | Restatement Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Loss on extinguishment of debt | $ 1,400 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) shares in Millions | Jul. 13, 2017 | Apr. 21, 2017 | Jan. 10, 2017 | Apr. 27, 2016 | Mar. 14, 2016 | Jan. 07, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jul. 25, 2016 |
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire business, net of cash acquired | $ 61,108,000 | $ 11,846,000 | ||||||||||
Revenues since acquisition date | $ 26,059,000 | $ 19,241,000 | 70,092,000 | 55,393,000 | ||||||||
Loss on disposal of business | 0 | $ 686,000 | ||||||||||
Goodwill | 122,904,000 | 122,904,000 | $ 69,097,000 | |||||||||
Omtool, Ltd [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire business, net of cash acquired | $ 19,300,000 | |||||||||||
Cash acquired | 3,000,000 | |||||||||||
Revenue since acquisition date | 8,000,000 | |||||||||||
Goodwill | $ 13,933,000 | |||||||||||
RightAnswers, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire business, net of cash acquired | $ 17,400,000 | |||||||||||
Cash holdback payable | 2,500,000 | |||||||||||
Cash acquired | $ 100,000 | |||||||||||
Revenue since acquisition date | 3,400,000 | |||||||||||
Cash holdback payable, payment period | 1 year | |||||||||||
Goodwill | $ 20,100,000 | |||||||||||
Waterfall International Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire business, net of cash acquired | $ 24,400,000 | |||||||||||
Cash holdback payable | 1,500,000 | |||||||||||
Cash acquired | $ 400,000 | |||||||||||
Revenue since acquisition date | 2,600,000 | |||||||||||
Cash holdback payable, payment period | 18 months | |||||||||||
Earnout consideration liability | $ 3,000,000 | |||||||||||
Goodwill | $ 18,747,000 | |||||||||||
Goodwill expected to be tax deductible | 3,700,000 | 3,700,000 | ||||||||||
LeadLander, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire business, net of cash acquired | $ 8,000,000 | |||||||||||
Cash holdback payable | 1,200,000 | |||||||||||
Cash acquired | $ 400,000 | |||||||||||
Cash holdback payable, payment period | 12 months | |||||||||||
Value of shares issued in acquisition | $ 2,400,000 | |||||||||||
Goodwill | $ 13,104,000 | |||||||||||
Goodwill expected to be tax deductible | 11,600,000 | 11,600,000 | ||||||||||
Hipcricket [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Numbers of shares issued in acquisition | 1 | |||||||||||
Value of equity shares issued | $ 5,700,000 | |||||||||||
Goodwill | 8,531,000 | |||||||||||
Goodwill expected to be tax deductible | 8,200,000 | 8,200,000 | ||||||||||
Hipcricket [Member] | EPM Live Product Business [Member] | Disposed of by Exchange [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair value of business transferred | 5,900,000 | |||||||||||
Loss on disposal of business | $ 700,000 | |||||||||||
API [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire business, net of cash acquired | $ 4,100,000 | |||||||||||
Cash holdback payable | 800,000 | |||||||||||
Cash acquired | $ 100,000 | |||||||||||
Cash holdback payable, payment period | 12 months | |||||||||||
Goodwill | $ 3,420,000 | |||||||||||
LeadLander, HipCricket, Omtool and RightAnswers [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 77,800,000 | 77,800,000 | ||||||||||
Advanced Processing and Imaging, Inc., Omtool Ltd. and RightAnswers Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill expected to be tax deductible | $ 0 | $ 0 |
Acquisitions (Assets Acquired a
Acquisitions (Assets Acquired and Liabilities Assumed and Divested) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 13, 2017 | Apr. 21, 2017 | Jan. 10, 2017 | Dec. 31, 2016 | Apr. 27, 2016 | Mar. 14, 2016 | Jan. 07, 2016 |
Assets Acquired | ||||||||
Goodwill | $ 122,904 | $ 69,097 | ||||||
Waterfall International Inc. [Member] | ||||||||
Assets Acquired | ||||||||
Cash | $ 435 | |||||||
Accounts receivable | 1,442 | |||||||
Other current assets | 1,031 | |||||||
Property and equipment | 74 | |||||||
Goodwill | 18,747 | |||||||
Other assets | 0 | |||||||
Total assets acquired | 30,339 | |||||||
Liabilities Assumed | ||||||||
Accounts payable | (605) | |||||||
Accrued expense and other | (1,382) | |||||||
Deferred revenue | (1,220) | |||||||
Total liabilities assumed | (3,207) | |||||||
Total consideration | 27,132 | |||||||
Waterfall International Inc. [Member] | Customer Relationships [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 5,700 | |||||||
Waterfall International Inc. [Member] | Trade Name [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 110 | |||||||
Waterfall International Inc. [Member] | Technology [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | $ 2,800 | |||||||
RightAnswers, Inc. [Member] | ||||||||
Assets Acquired | ||||||||
Cash | $ 139 | |||||||
Accounts receivable | 2,164 | |||||||
Other current assets | 125 | |||||||
Property and equipment | 158 | |||||||
Goodwill | 20,100 | |||||||
Other assets | 0 | |||||||
Total assets acquired | 31,186 | |||||||
Liabilities Assumed | ||||||||
Accounts payable | (139) | |||||||
Accrued expense and other | (1,321) | |||||||
Deferred revenue | (5,428) | |||||||
Total liabilities assumed | (6,888) | |||||||
Total consideration | 24,298 | |||||||
RightAnswers, Inc. [Member] | Customer Relationships [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 5,700 | |||||||
RightAnswers, Inc. [Member] | Trade Name [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 200 | |||||||
RightAnswers, Inc. [Member] | Technology [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | $ 2,600 | |||||||
Omtool, Ltd [Member] | ||||||||
Assets Acquired | ||||||||
Cash | $ 2,957 | |||||||
Accounts receivable | 784 | |||||||
Other current assets | 607 | |||||||
Property and equipment | 63 | |||||||
Goodwill | 13,933 | |||||||
Other assets | 33 | |||||||
Total assets acquired | 26,127 | |||||||
Liabilities Assumed | ||||||||
Accounts payable | (219) | |||||||
Accrued expense and other | (915) | |||||||
Deferred revenue | (2,779) | |||||||
Total liabilities assumed | (3,913) | |||||||
Total consideration | 22,214 | |||||||
Omtool, Ltd [Member] | Customer Relationships [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 4,400 | |||||||
Omtool, Ltd [Member] | Trade Name [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 170 | |||||||
Omtool, Ltd [Member] | Technology [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | $ 3,180 | |||||||
API [Member] | ||||||||
Assets Acquired | ||||||||
Cash | $ 125 | |||||||
Accounts receivable | 821 | |||||||
Other current assets | 54 | |||||||
Property and equipment | 68 | |||||||
Goodwill | 3,420 | |||||||
Other assets | 89 | |||||||
Total assets acquired | 6,847 | |||||||
Liabilities Assumed | ||||||||
Accounts payable | (11) | |||||||
Accrued expense and other | (137) | |||||||
Deferred revenue | (1,699) | |||||||
Total liabilities assumed | (1,847) | |||||||
Total consideration | 5,000 | |||||||
API [Member] | Customer Relationships [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 1,420 | |||||||
API [Member] | Trade Name [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 40 | |||||||
API [Member] | Technology [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | $ 810 | |||||||
Hipcricket [Member] | ||||||||
Assets Acquired | ||||||||
Cash | $ 0 | |||||||
Accounts receivable | 1,226 | |||||||
Other current assets | 273 | |||||||
Property and equipment | 0 | |||||||
Goodwill | 8,531 | |||||||
Other assets | 0 | |||||||
Total assets acquired | 12,000 | |||||||
Liabilities Assumed | ||||||||
Accounts payable | (44) | |||||||
Accrued expense and other | 0 | |||||||
Deferred revenue | (356) | |||||||
Total liabilities assumed | (400) | |||||||
Total consideration | 11,600 | |||||||
Hipcricket [Member] | Customer Relationships [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 1,000 | |||||||
Hipcricket [Member] | Trade Name [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 70 | |||||||
Hipcricket [Member] | Technology [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | $ 900 | |||||||
LeadLander, Inc. [Member] | ||||||||
Assets Acquired | ||||||||
Cash | $ 365 | |||||||
Accounts receivable | 199 | |||||||
Other current assets | 55 | |||||||
Property and equipment | 5 | |||||||
Goodwill | 13,104 | |||||||
Other assets | 6 | |||||||
Total assets acquired | 16,184 | |||||||
Liabilities Assumed | ||||||||
Accounts payable | 0 | |||||||
Accrued expense and other | (254) | |||||||
Deferred revenue | (910) | |||||||
Total liabilities assumed | (1,164) | |||||||
Total consideration | 15,020 | |||||||
LeadLander, Inc. [Member] | Customer Relationships [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 970 | |||||||
LeadLander, Inc. [Member] | Trade Name [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | 70 | |||||||
LeadLander, Inc. [Member] | Technology [Member] | ||||||||
Assets Acquired | ||||||||
Intangible assets | $ 1,410 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2017 | Jul. 31, 2017 | Jul. 13, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Level 2 [Member] | |||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Fair value of debt | $ 94,400 | $ 94,400 | $ 49,400 | ||||
Waterfall International Inc. [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Earnout consideration liability | $ 3,000 | ||||||
Recurring Measurement Basis [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Earnout consideration liability | 4,193 | 4,193 | 2,500 | ||||
Recurring Measurement Basis [Member] | Level 1 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Earnout consideration liability | 0 | 0 | 0 | ||||
Recurring Measurement Basis [Member] | Level 2 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Earnout consideration liability | 0 | 0 | 0 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Earnout consideration liability | 4,193 | 4,193 | $ 2,500 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Ending balance at December 31, 2016 | 2,500 | ||||||
Ending balance at September 30, 2017 | 4,193 | 4,193 | |||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Earnout Consideration [Member] | |||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Additions - cash earnouts | 5,226 | ||||||
Settlements - cash earnouts | (3,533) | ||||||
Recurring Measurement Basis [Member] | LeadLander [Member] | Level 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration, fair value | $ 2,500 | ||||||
Recurring Measurement Basis [Member] | RightAnswers, Inc. [Member] | Level 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration, fair value | $ 4,000 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Settlements - cash earnouts | 1,000 | ||||||
Ending balance at September 30, 2017 | $ 3,000 | $ 3,000 | |||||
Recurring Measurement Basis [Member] | Waterfall International Inc. [Member] | Level 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration, fair value | $ 1,200 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2016 | $ 69,097 |
Acquired in business combinations | 52,782 |
Adjustment due to prior year business combinations | 17 |
Foreign currency translation adjustment | 1,008 |
Balance at September 30, 2017 | $ 122,904 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 76,300 | $ 50,567 | |
Accumulated Amortization | 28,788 | 22,055 | |
Net Carrying Amount | 47,512 | 28,512 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 49,159 | 32,703 | |
Accumulated Amortization | 16,131 | 12,418 | |
Net Carrying Amount | $ 33,028 | 20,285 | |
Customer Relationships [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 1 year | 1 year | |
Customer Relationships [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 10 years | 10 years | |
Trade Name [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,134 | 2,636 | |
Accumulated Amortization | 2,799 | 2,462 | |
Net Carrying Amount | $ 335 | 174 | |
Trade Name [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 1 year 6 months | 1 year 6 months | |
Trade Name [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | 3 years | |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 24,007 | 15,228 | |
Accumulated Amortization | 9,858 | 7,175 | |
Net Carrying Amount | $ 14,149 | $ 8,053 | |
Developed Technology [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 4 years | 4 years | |
Developed Technology [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 7 years | 7 years |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Weighted-Average Amortization Period) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 7 years 270 days | 8 years |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 8 years 330 days | 9 years 3 months 18 days |
Trade Name [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 210 days | 2 years 9 months 18 days |
Developed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 6 years 100 days | 6 years 3 months 18 days |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Estimated Annual Amortization Expense) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization charge of intangible assets | $ 6,300 | $ 5,600 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Remainder of 2017 | 2,445 | ||
2,018 | 9,520 | ||
2,019 | 8,452 | ||
2,020 | 7,477 | ||
2,021 | 7,082 | ||
2022 and thereafter | 12,536 | ||
Net Carrying Amount | $ 47,512 | $ 28,512 |
Income Taxes (Details)
Income Taxes (Details) - Accounting Standards Update 2016-09 [Member] $ in Thousands | Sep. 30, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase in net operating loss deferred tax asset | $ 152 |
Increase in valuation allowance | $ 152 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Less current maturities | $ (1,701) | $ (2,190) |
Total long-term debt | 90,006 | 45,739 |
Unamortized debt discount | 2,700 | |
Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 91,707 | 47,929 |
Unamortized debt discount | $ 2,699 | $ 1,442 |
Implied interest rate | 7.50% | 6.60% |
Debt (Loans) (Details)
Debt (Loans) (Details) - USD ($) | Sep. 30, 2017 | Aug. 02, 2017 | May 14, 2015 |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 145,000,000 | ||
Revolving Credit Facility [Member] | U.S. [Member] | |||
Line of Credit Facility [Line Items] | |||
Amounts drawn on loans | 0 | ||
Revolving Credit Facility [Member] | Canadian [Member] | |||
Line of Credit Facility [Line Items] | |||
Amounts drawn on loans | 0 | ||
Credit Facility [Member] | Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 200,000,000 | ||
Credit Facility [Member] | Medium-term Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 95,000,000 | 95,000,000 | |
Amounts drawn on loans | 94,400,000 | ||
Credit Facility [Member] | Medium-term Notes [Member] | U.S. [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 89,600,000 | ||
Amounts drawn on loans | 89,000,000 | ||
Credit Facility [Member] | Medium-term Notes [Member] | Canadian [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 5,400,000 | ||
Amounts drawn on loans | 5,400,000 | ||
Credit Facility [Member] | Letter of Credit [Member] | U.S. [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 500,000 | ||
Credit Facility [Member] | Letter of Credit [Member] | Canadian [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 250,000 | ||
Credit Facility [Member] | Delayed Draw Term Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 40,000,000 | $ 10,000,000 | |
Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 10,000,000 | 10,000,000 | |
Credit Facility [Member] | Revolving Credit Facility [Member] | U.S. [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 9,000,000 | ||
Credit Facility [Member] | Revolving Credit Facility [Member] | Canadian [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000 | ||
Credit Facility [Member] | Uncommitted Accordion Debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 55,000,000 | $ 20,000,000 |
Debt (Terms of Term Loans) (Det
Debt (Terms of Term Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Sep. 30, 2017 | Aug. 02, 2017 | May 14, 2015 |
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Covenant, Leverage Ratio Calculation, Exclusion of Funded Indebtedness | $ 15 | |||
Line of Credit [Member] | Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||
Debt Instrument, Covenant, Leverage Ratio Calculation, Exclusion of Excess of Qualified Cash | $ 2.5 | |||
Debt Instrument, Covenant, Business Acquisition Consideration Payable Per Acquisition, Maximum | $ 25 | $ 20 | ||
Debt Instrument, Covenant, Business Acquisition Consideration Payable, Maximum | 175 | 75 | ||
Maximum Allowed Indebtedness to Sellers of Businesses | $ 20 | $ 16.7 | ||
Scenario, Forecast [Member] | Line of Credit [Member] | Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Debt (Terms of Delay Draw Term
Debt (Terms of Delay Draw Term Loan) (Details) - Delayed Draw Term Loan [Member] - Credit Facility [Member] - USD ($) | Jun. 30, 2019 | Aug. 02, 2017 | May 14, 2015 |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | $ 10,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||
Scenario, Forecast [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Debt (Terms of Revolver) (Detai
Debt (Terms of Revolver) (Details) - USD ($) | Sep. 30, 2017 | Aug. 02, 2017 |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 145,000,000 | |
Line of Credit [Member] | Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | |
Line of Credit [Member] | Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | |
Letter of Credit [Member] | Credit Facility [Member] | Domestic Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000 | |
Letter of Credit [Member] | Credit Facility [Member] | Foreign Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 |
Debt (Other Terms of Credit Fac
Debt (Other Terms of Credit Facility) (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Covenant Compliance, Capital Stock Buyback Maximum | $ 10,000,000 |
Line of Credit [Member] | Loan Facility [Member] | |
Line of Credit Facility [Line Items] | |
Increase in interest rate upon default | 2.00% |
Covenant, minimum liquidity to buyback stock | $ 25,000,000 |
Line of Credit [Member] | Loan Facility [Member] | From November 15, 2016 to November 15, 2017 [Member] | |
Line of Credit Facility [Line Items] | |
Prepayment premium, percent | 2.00% |
Line of Credit [Member] | Loan Facility [Member] | From November 15, 2017 to November 15, 2018 [Member] | |
Line of Credit Facility [Line Items] | |
Prepayment premium, percent | 1.00% |
Line of Credit [Member] | Loan Facility [Member] | After November 15, 2018 to the Maturity Date [Member] | |
Line of Credit Facility [Line Items] | |
Prepayment premium, percent | 0.00% |
Line of Credit [Member] | U.S. [Member] | Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Variable rate, spread over reference rate | 0.50% |
Line of Credit [Member] | U.S. [Member] | Prime Rate [Member] | |
Line of Credit Facility [Line Items] | |
Variable rate, spread over reference rate | 1.00% |
Line of Credit [Member] | U.S. [Member] | Minimum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 3.75% |
Line of Credit [Member] | U.S. [Member] | Minimum [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 4.75% |
Line of Credit [Member] | U.S. [Member] | Maximum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 4.50% |
Line of Credit [Member] | U.S. [Member] | Maximum [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 5.50% |
Debt (Interest Rate and Debt Di
Debt (Interest Rate and Debt Discount) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 2.7 | |
Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Charges, Percentage | 6.60% | 5.70% |
Debt (Future Debt Maturities of
Debt (Future Debt Maturities of Long-term Debt) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Remaining 2,017 | $ 594 |
2,018 | 2,375 |
2,019 | 3,563 |
2,020 | 4,750 |
2,021 | 4,750 |
Thereafter | 78,374 |
Long-term debt | $ 94,406 |
Net Loss Per Share (Computation
Net Loss Per Share (Computation of Loss Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net loss | $ (3,506) | $ (2,390) | $ (14,931) | $ (11,540) |
Denominator: | ||||
Weighted-average common shares outstanding, basic and diluted (in shares) | 19,380,519 | 16,702,062 | 18,043,365 | 16,339,983 |
Net loss per common share, basic and diluted (in USD per share) | $ (0.18) | $ (0.14) | $ (0.83) | $ (0.71) |
Net Loss Per Share (Anti_Diluti
Net Loss Per Share (Anti–Dilutive Common Share Equivalents) (Details) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti–dilutive common share equivalents (in shares) | 1,975,302 | 1,836,383 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti–dilutive common share equivalents (in shares) | 626,023 | 780,645 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti–dilutive common share equivalents (in shares) | 1,349,279 | 1,055,738 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Investor [Member] - USD ($) $ in Millions | Mar. 28, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Long-term Purchase Commitment [Line Items] | |||
Amount of related party transaction | $ 1.8 | $ 1.7 | |
Option to renew purchase commitment, term (in years) | 1 year |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Jun. 06, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | May 12, 2017 |
Class of Stock [Line Items] | ||||
Net proceeds of public offering | $ 42,700,000 | $ 42,629,000 | $ 197,000 | |
Public Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Additional registration of shares of aggregate amount (up to) | $ 29,000,000 | $ 75,000,000 | ||
Shares issued for public offering | 2,139,534 |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Number of Restricted Shares Outstanding | ||
Unvested balances at beginning of period (in shares) | 839,477 | |
Awards granted (in shares) | 804,415 | |
Awards vested (in shares) | (249,501) | |
Awards forfeited (in shares) | (45,112) | |
Unvested balances at end of period (in shares) | 1,349,279 | |
Weighted-Average Grant Date Fair Value | ||
Weighted-average grant date fair value (in USD per share) | $ 12.38 | $ 7.55 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Options Outstanding | |
Outstanding at beginning of period (in shares) | shares | 759,719 |
Options granted (in shares) | shares | 26,100 |
Options exercised (in shares) | shares | (131,843) |
Options forfeited (in shares) | shares | (27,788) |
Options expired (in shares) | shares | (165) |
Outstanding at end of period (in shares) | shares | 626,023 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in USD per share) | $ / shares | $ 6.06 |
Options granted (in USD per share) | $ / shares | 23.60 |
Options exercised (in USD per share) | $ / shares | 4.96 |
Options forfeited (in USD per share) | $ / shares | 10.57 |
Options expired (in USD per share) | $ / shares | 4.33 |
Outstanding at end of period (in USD per share) | $ / shares | $ 6.83 |
Stockholders' Equity (Shared Ba
Stockholders' Equity (Shared Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 1,884 | $ 1,100 | $ 7,804 | $ 2,664 |
Cost of revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 147 | 13 | 277 | 28 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 219 | 38 | 560 | 80 |
Sales and marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 73 | 21 | 149 | 66 |
General and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 1,445 | $ 1,028 | $ 6,818 | $ 2,490 |
Domestic and Foreign Operatio50
Domestic and Foreign Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 26,059 | $ 19,241 | $ 70,092 | $ 55,393 |
U.S. [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 21,455 | 16,240 | 57,080 | 46,403 |
Canada [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 1,186 | 1,058 | 3,265 | 3,071 |
Other International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 3,418 | $ 1,943 | $ 9,747 | $ 5,919 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Mar. 28, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2018 |
Investor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | $ 1,800 | $ 1,700 | ||
Option to renew purchase commitment, term (in years) | 1 year | |||
Investor [Member] | Software Development Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Option to renew purchase commitment, term (in years) | 1 year | |||
Purchase obligation outstanding | 2,500 | |||
Purchase obligation increase in amount, if a 10% increase in revenue | 250 | |||
Investor [Member] | Software Development Services [Member] | Scenario, Forecast [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase commitment, amount | $ 2,800 | |||
Investor [Member] | Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transaction | 2,200 | 1,100 | ||
Former Subsidiary [Member] | Management, HR/Payroll and Administrative Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | $ 270 | $ 270 |