Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 29, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | ALTR | |
Entity Registrant Name | ALTAIR ENGINEERING INC. | |
Entity Central Index Key | 1,701,732 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 636.5 | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 26,725,484 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 36,507,676 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 39,213 | $ 16,874 |
Accounts receivable, net | 86,635 | 70,498 |
Inventory, net | 1,980 | 1,227 |
Income tax receivable | 6,054 | 9,069 |
Prepaid expenses and other current assets | 10,006 | 7,435 |
Total current assets | 143,888 | 105,103 |
Property and equipment, net | 31,446 | 29,708 |
Goodwill | 62,706 | 36,625 |
Other intangible assets, net | 24,461 | 11,168 |
Deferred tax assets | 8,351 | 62,896 |
Other long-term assets | 17,019 | 5,276 |
TOTAL ASSETS | 287,871 | 250,776 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 232 | 10,435 |
Accounts payable | 4,880 | 5,009 |
Accrued compensation and benefits | 26,560 | 22,955 |
Obligations for acquisition of businesses | 13,925 | 2,649 |
Other accrued expenses and current liabilities | 21,744 | 16,296 |
Deferred revenue | 130,122 | 100,661 |
Total current liabilities | 197,463 | 158,005 |
Long-term debt, net of current portion | 178 | 74,806 |
Deferred revenue, non-current | 9,640 | 13,268 |
Stock-based compensation awards | 22,236 | |
Other long-term liabilities | 17,647 | 17,114 |
TOTAL LIABILITIES | 224,928 | 285,429 |
Commitments and contingencies | ||
MEZZANINE EQUITY | 2,352 | |
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding as of December 31, 2017; none authorized, issued or outstanding as of December 31, 2016 | ||
Additional paid-incapital | 232,156 | 39,688 |
Accumulated deficit | (166,499) | (67,092) |
Accumulated other comprehensive loss | (5,072) | (7,264) |
Total Altair Engineering Inc. stockholders' equity (deficit) | 60,591 | (34,663) |
Noncontrolling interest | 10 | |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 60,591 | (34,653) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) | 287,871 | 250,776 |
Class A Common Stock [Member] | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Common stock | 2 | 1 |
Class B Common Stock [Member] | ||
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Common stock | $ 4 | $ 4 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.0001 | $ 0 |
Preferred stock, shares authorized | 45,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 513,797,000 | 76,000,000 |
Common stock, shares issued | 26,725,000 | 8,900,000 |
Common stock, shares outstanding | 26,725,000 | 8,900,000 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 41,203,000 | 44,000,000 |
Common stock, shares issued | 36,508,000 | 41,204,000 |
Common stock, shares outstanding | 36,508,000 | 41,204,000 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Software | $ 244,817 | $ 223,818 | $ 205,567 |
Software related services | 35,397 | 35,770 | 37,294 |
Total software | 280,214 | 259,588 | 242,861 |
Client engineering services | 46,510 | 47,702 | 45,075 |
Other | 6,609 | 5,950 | 6,193 |
Total revenue | 333,333 | 313,240 | 294,129 |
Cost of revenue: | |||
Software | 36,360 | 31,962 | 27,406 |
Software related services | 26,888 | 27,653 | 30,079 |
Total software | 63,248 | 59,615 | 57,485 |
Client engineering services | 38,131 | 38,106 | 36,081 |
Other | 5,212 | 4,879 | 5,642 |
Total cost of revenue | 106,591 | 102,600 | 99,208 |
Gross profit | 226,742 | 210,640 | 194,921 |
Operating expenses: | |||
Research and development | 93,234 | 71,325 | 62,777 |
Sales and marketing | 79,958 | 66,086 | 63,080 |
General and administrative | 87,979 | 57,202 | 54,069 |
Amortization of intangible assets | 5,448 | 3,322 | 2,624 |
Other operating income | (6,620) | (2,742) | (2,576) |
Total operating expenses | 259,999 | 195,193 | 179,974 |
Operating (loss) income | (33,257) | 15,447 | 14,947 |
Interest expense | 2,160 | 2,265 | 2,416 |
Other expense (income), net | 994 | (520) | 782 |
(Loss) income before income taxes | (36,411) | 13,702 | 11,749 |
Income tax expense | 62,996 | 3,539 | 818 |
Net (loss) income | $ (99,407) | $ 10,163 | $ 10,931 |
(Loss) income per share: | |||
Net (loss) income per share attributable to common stockholders, basic | $ (1.89) | $ 0.21 | $ 0.23 |
Net (loss) income per share attributable to common stockholders, diluted | $ (1.89) | $ 0.18 | $ 0.19 |
Weighted average shares outstanding: | |||
Weighted average number of shares used in computing net (loss) income per share, basic | 52,466 | 48,852 | 46,609 |
Weighted average number of shares used in computing net (loss) income per share, diluted | 52,466 | 57,856 | 58,709 |
Consolidated statements of comp
Consolidated statements of comprehensive (loss) income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (99,407) | $ 10,163 | $ 10,931 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation (net of tax effect of $0, $(60) and $953, respectively) | 2,351 | 20 | (2,115) |
Retirement related benefit plans (net of tax effect of $0, $195 and $(36), respectively) | (159) | (576) | (253) |
Other comprehensive income (loss) | 2,192 | (556) | (2,368) |
Comprehensive (loss) income | (97,215) | 9,607 | 8,563 |
Less: comprehensive loss attributable to noncontrolling interest | (1) | ||
Comprehensive (loss) income attributable to Altair Engineering Inc. | $ (97,215) | $ 9,607 | $ 8,564 |
Consolidated statements of com6
Consolidated statements of comprehensive (loss) income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, tax effect | $ 0 | $ (60) | $ 953 |
Retirement related benefit plans, tax effect | $ 0 | $ 195 | $ (36) |
Consolidated statements of chan
Consolidated statements of changes in stockholders' equity (deficit) - USD ($) $ in Thousands | Total | IPO [Member] | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member]IPO [Member] | Common Stock [Member]Class B Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member]IPO [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]IPO [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total Altair Engineering' Inc. Stockholders' Equity (Deficit) [Member] | Total Altair Engineering' Inc. Stockholders' Equity (Deficit) [Member]IPO [Member] | Non-controlling Interest [Member] | ||||
Balance at Dec. 31, 2014 | $ (50,261) | $ 1 | [1] | $ 4 | [1] | $ 41,525 | $ (87,461) | $ (4,341) | $ (50,272) | $ 11 | |||||||
Balance (in shares) at Dec. 31, 2014 | [1] | 4,284 | 41,564 | ||||||||||||||
Net income (loss) | 10,931 | 10,931 | 10,931 | ||||||||||||||
Issuance of common stock | 1,036 | 1,036 | 1,036 | ||||||||||||||
Issuance of common stock (in shares) | [1] | 1,728 | 200 | ||||||||||||||
Stock redemptions | (1,221) | (1,221) | (1,221) | ||||||||||||||
Stock redemptions, (in shares) | [1] | (264) | (84) | ||||||||||||||
Return of capital | (725) | (725) | (725) | ||||||||||||||
Stock-based compensation | 569 | 569 | 569 | ||||||||||||||
Foreign currency translation, net of tax | (2,115) | (2,114) | (2,114) | (1) | |||||||||||||
Retirement related benefit plans, net of tax | (253) | (253) | (253) | ||||||||||||||
Balance at Dec. 31, 2015 | (42,039) | $ 1 | [1] | $ 4 | [1] | 41,909 | (77,255) | (6,708) | (42,049) | 10 | |||||||
Balance (in shares) at Dec. 31, 2015 | [1] | 5,748 | 41,680 | ||||||||||||||
Net income (loss) | 10,163 | 10,163 | 10,163 | ||||||||||||||
Issuance of common stock | 456 | 456 | 456 | ||||||||||||||
Issuance of common stock (in shares) | [1] | 3,484 | |||||||||||||||
Stock redemptions | (3,291) | (3,291) | (3,291) | ||||||||||||||
Stock redemptions, (in shares) | [1] | (322) | (476) | ||||||||||||||
Stock-based compensation | 614 | 614 | 614 | ||||||||||||||
Foreign currency translation, net of tax | 20 | 20 | 20 | ||||||||||||||
Retirement related benefit plans, net of tax | (576) | (576) | (576) | ||||||||||||||
Balance at Dec. 31, 2016 | (34,653) | $ 1 | [1] | $ 4 | [1] | 39,688 | (67,092) | (7,264) | (34,663) | 10 | |||||||
Balance (in shares) at Dec. 31, 2016 | [1] | 8,900 | 41,204 | ||||||||||||||
Net income (loss) | (99,407) | (99,407) | (99,407) | ||||||||||||||
Issuance of common stock | $ 114,438 | $ 1 | [1] | $ 114,437 | $ 114,438 | ||||||||||||
Shares converted upon Delaware incorporation | 0 | $ 0 | [1] | $ 0 | [1] | 0 | $ 0 | $ 0 | 0 | $ 0 | |||||||
Issuance of common stock (in shares) | [1] | 13,800 | (2,200) | ||||||||||||||
Shares converted upon Delaware incorporation (in shares) | [1] | 2,496 | (2,496) | ||||||||||||||
2001 ISO Plan modification | $ 66,510 | $ 66,510 | $ 66,510 | ||||||||||||||
2001 ISO Plan modification (in shares) | 0 | 0 | [1] | 0 | [1] | 0 | 0 | 0 | 0 | 0 | |||||||
Issuance of common stock for acquisitions | $ 8,712 | $ 8,712 | $ 8,712 | ||||||||||||||
Issuance of common stock for acquisitions (in shares) | [1] | 988 | |||||||||||||||
Exercise of stock options | 1,792 | 1,792 | 1,792 | ||||||||||||||
Exercise of stock options (in shares) | [1] | 541 | |||||||||||||||
Purchase of noncontrolling interests | (29) | (19) | (19) | $ (10) | |||||||||||||
Amortization of mezzanine equity | (8) | (8) | (8) | ||||||||||||||
Stock-based compensation | 1,044 | 1,044 | 1,044 | ||||||||||||||
Foreign currency translation, net of tax | 2,351 | $ 2,351 | 2,351 | ||||||||||||||
Retirement related benefit plans, net of tax | (159) | (159) | (159) | ||||||||||||||
Balance at Dec. 31, 2017 | $ 60,591 | $ 2 | [1] | $ 4 | [1] | $ 232,156 | $ (166,499) | $ (5,072) | $ 60,591 | ||||||||
Balance (in shares) at Dec. 31, 2017 | [1] | 26,725 | 36,508 | ||||||||||||||
[1] | All references to Common stock refer to the Company's currently existing Class A and Class B shares following the Recapitalization as described in Note 10. |
Consolidated statements of cha8
Consolidated statements of changes in stockholders' equity (deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Initial public offering issuance costs | $ 4,830 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES: | |||
Net (loss) income | $ (99,407) | $ 10,163 | $ 10,931 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,747 | 9,980 | 8,378 |
Provision for bad debt | 610 | 291 | 145 |
Write-down of inventory to net realizable value | 270 | 179 | 1,003 |
Stock-based compensation expense | 47,281 | 5,132 | 597 |
Deferred income taxes | 52,571 | (6,076) | (9,131) |
Other, net | 28 | 86 | 124 |
Changes in assets and liabilities: | |||
Accounts receivable | (10,397) | (4,397) | (8,120) |
Prepaid expenses and other current assets | 1,559 | (2,337) | (5,115) |
Other long-term assets | (11,288) | (930) | (1,526) |
Accounts payable | (1,087) | (1,321) | 558 |
Accrued compensation and benefits | 2,060 | 2,366 | 2,006 |
Other accrued expenses and current liabilities | 6,207 | (1,173) | 2,488 |
Deferred revenue | 15,937 | 9,422 | 8,500 |
Net cash provided by operating activities | 16,091 | 21,385 | 10,838 |
INVESTING ACTIVITIES: | |||
Payments for acquisition of businesses | (15,582) | (6,499) | (2,757) |
Capital expenditures | (7,522) | (9,444) | (5,233) |
Payments for acquisition of developed technology | (2,120) | (154) | |
Other investing activities, net | 373 | 64 | (40) |
Net cash used in investing activities | (24,851) | (16,033) | (8,030) |
FINANCING ACTIVITIES: | |||
Payments on revolving commitment | (154,187) | (136,087) | (91,673) |
Borrowings under revolving commitment | 126,832 | 151,928 | 103,186 |
Proceeds from issuance of Class A common stock in initial public offering, net of underwriting commissions | 119,268 | ||
Principal payments on long-term debt | (59,869) | (16,232) | (15,950) |
Payments for IPO offering costs | (4,644) | ||
Proceeds from issuance of common stock | 1,792 | 456 | 291 |
Proceeds from issuance of debt | 1,541 | 2,030 | 1,248 |
Payments for redemption of common stock | (1,045) | (3,049) | (1,744) |
Payment for return of capital | (725) | ||
Other financing activities | (130) | (185) | (55) |
Net cash provided by (used in) financing activities | 29,558 | (1,864) | (4,697) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,641 | (362) | (1,639) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 22,439 | 3,126 | (3,528) |
Cash, cash equivalents and restricted cash at beginning of year | 17,139 | 14,013 | 17,541 |
Cash, cash equivalents and restricted cash at end of period | 39,578 | 17,139 | 14,013 |
Supplemental disclosures of cash flow: | |||
Interest paid | 2,092 | 2,190 | 2,261 |
Income taxes paid | 5,893 | 5,909 | 5,626 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Promissory notes issued and deferred payment obligations for acquisitions | 12,352 | 4,182 | 750 |
Issuance of common stock in connection with acquisitions | 8,712 | 745 | |
Issuance of common stock with put rights | 2,352 | ||
Property and equipment and developed technology in accounts payable, other accrued expenses and current liabilities, and other liabilities | 582 | 1,777 | 178 |
Initial public offering costs in accounts payable | 186 | ||
Capital leases | $ 124 | 129 | 270 |
Notes issued for stock redemptions | $ 807 | 753 | |
Obligations for return of capital in other current liabilities | $ 725 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | 1. Description of business Altair Engineering Inc. (“Altair” or the “Company”) incorporated in the state of Michigan in 1985 and became a Delaware corporation in October 2017. The Company is a provider of enterprise-class engineering software enabling innovation across the entire product lifecycle from concept design to in-service The Company’s simulation-driven approach to innovation is powered by its broad portfolio of high-fidelity and high-performance physics solvers. The Company’s integrated suite of software optimizes design performance across multiple disciplines including structures, motion, fluids, thermal management, electromagnetics, system modeling and embedded systems, while also providing data analytics and true-to-life Altair’s engineering and design platform offers a wide range of multi-disciplinary computer aided engineering (“CAE”) solutions. The Company engages with its customers to provide consulting, training, and support, especially when applying optimization. Altair also provides Client Engineering Services to support its customers with long-term ongoing product design and development expertise. This has the benefit of embedding the Company within customers, deepening its understanding of their processes, and allowing the Company to more quickly perceive trends in the overall market, helping the Company to better tailor its research and development and sales initiatives. The Company hires simulation specialists, industrial designers, design engineers, materials experts, development and test specialists, manufacturing engineers and information technology specialists for placement at a customer site for specific customer-directed assignments. Initial public offering In November 2017, the Company closed its initial public offering (“IPO”), in which the Company issued and sold 9,865,004 shares of Class A common stock inclusive of the underwriters’ option to purchase additional shares that was exercised in full. The price per share to the public was $13.00. The Company received aggregate proceeds of $119.3 million from the IPO, net of underwriters’ discounts and commissions, before deducting offering costs of approximately $4.8 million. The IPO also included the sale of 3,934,996 shares of Class A common stock by certain stockholders, giving effect to the conversion of 2,200,000 shares of the Company’s Class B common stock into an equivalent number of shares of Class A common stock, and 1,734,996 stock options for Class A common stock exercised by the Company’s chief executive officer. The Company did not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies Principles of consolidation The accompanying consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the results of the Company and its controlled subsidiaries. Third-party holdings of equity interests in the Company’s subsidiaries that are less than controlled represent noncontrolling interests. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. Reclassifications Certain prior period amounts included in the 2016 consolidated balance sheet and 2016 consolidated statement of cash flows have been reclassified to conform to the current year presentation. In the accompanying consolidated balance sheet as of December 31, 2016, Obligations for acquisition of businesses has been reclassified out of Other accrued expenses and current liabilities. Note 8 – Other liabilities has been adjusted accordingly. This reclassification had no effect on Total current liabilities. In the accompanying consolidated statement of cash flows for the year ended December 31, 2016, Payments for acquisition of developed technology has been reclassified out of Other investing activities. This reclassification had no effect on Net cash used in investing activities. Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, management evaluates its significant estimates including provision for doubtful accounts, tax valuation allowances, liabilities for uncertain tax provisions, impairment of goodwill and intangible assets, retirement obligations, useful lives of intangible assets, revenue for fixed price contracts, valuation of common stock, and stock-based compensation. Actual results could differ from those estimates. Delaware Conversion On October 5, 2017, the Company became a Delaware corporation and effected a four-for-one four-for-one four-for-one four-for-one In connection with the Company becoming a Delaware corporation, 2,495,752 shares of Class B common stock, held by holders of less than 3% of Class B common stock immediately prior to the conversion, converted into Class A common stock. Pursuant to the Company’s Delaware certificate of incorporation, the Company’s authorized capital consists of 513,796,572 shares of Class A common stock, 41,203,428 shares of Class B common stock and 45,000,000 shares of preferred stock. Foreign currency translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The assets and liabilities of the subsidiaries are translated to U.S. dollars at the exchange rate on the balance sheet date. Equity balances and transactions are translated using historical exchange rates. Revenues and expenses are translated at the average exchange rate during the period. Translation adjustments arising from the use of differing exchange rates from period to period are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. All assets and liabilities denominated in a currency other than the functional currency are remeasured into the functional currency with gains and losses recognized in foreign currency losses, net, in the consolidated statements of operations. The Company has no transactions which hedge purchase commitments and no intercompany balances which are designated as being of a long-term investment in nature. Revenue recognition The Company generates revenue from the following sources: (1) Software; (2) Client engineering services; and (3) Other. Revenue is recognized when persuasive evidence of an agreement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable, and collection of the fee is probable or reasonably assured. Certain transactions require that government imposed taxes be assessed to the customer. The Company presents revenue net of such government imposed taxes. Software revenue Software component Software revenue includes product revenue from software product licensing arrangements, related services consisting of software maintenance and support in the form of post-contract customer support (“PCS”), and professional services such as consulting and training services. Software products are sold to customers primarily under a term-based software licensing model and to a lesser degree, perpetual software licenses. Software revenue also includes consulting services from product design and development projects. Most term-based software license agreements include the Company’s patented units-based subscription model which allows customers to license a pool of units for their organizations, providing individual users flexible access to the Company’s entire portfolio of software applications as well as to its growing portfolio of partner products. The amount of software usage is limited by the number of the units licensed by the customer. Revenue from these arrangements is fixed (based on the units licensed) and is not based on actual customer usage of each software product. Software product license arrangements may include PCS and professional services, such as consulting and training services, which represent multiple-element arrangements. The Company has analyzed the elements included in its multiple element arrangements and has determined that it does not have vendor-specific objective evidence (“VSOE”) of fair value to allocate revenue to its software products license, PCS, and professional services including consulting and training. For arrangements that have two or more elements such as software, PCS or professional services for which the Company has not established VSOE of fair value, the Company uses the combined services approach to recognize revenue for these transactions. Under the combined services approach, revenue from the software product licenses, including perpetual licenses, PCS and professional services, if applicable, are considered to be one accounting unit and, once the software has been delivered and the provision of each undelivered service has commenced, are recognized ratably over the remaining period of the arrangement which consists of the longer of the PCS period, or the period the professional services are expected to be performed. If the professional services are essential to the functionality of the software products, then revenue recognition does not commence until such services are completed. In transactions with resellers, the Company contracts only with the reseller, in which pricing, length of licenses and support services are agreed upon. The reseller negotiates the price charged and length of licenses and support service directly with its customer. The term-based software license arrangements typically have a duration of 12 months and include PCS, including the right to receive unspecified software upgrades, when and if available during the license term. The Company does not charge separately for PCS. Revenues for software licenses sold on a term-based model are recognized ratably over the term of the license arrangement, once all other revenue recognition criteria have been met. The Company also sells perpetual licenses to its customers. The Company does not have VSOE of fair value for PCS, which is sold along with the perpetual licenses. As a result, revenue from these arrangements is recognized ratably over the initial PCS term. Software related services component Consulting services from product design and development projects are provided to customers on a time-and-materials Client engineering services revenue Client engineering services revenue are derived from professional services for staffing primarily representing engineers located at a customer site. These professional services are provided to customers on a T&M basis. The Company recognizes engineering services revenue for T&M contracts based upon hours worked and contractually agreed-upon hourly rates. Other revenue Other revenue includes product revenue from the sale of LED products for the replacement of fluorescent tubes. Revenue from the sale of LED products for the replacement of fluorescent tubes is recognized when all revenue recognition criteria stated above are met, which is generally when the products are delivered to resellers or to end customers. Sales returns, which reduce revenue and cost of revenue, are estimated using historical experience. Cost of revenue Cost of software Cost of software revenue consist of expenses related to software licensing and customer support. Significant expenses include employee related costs for support team members, travel costs, and royalties for third-party software products available to customers through the Company’s products or as part of the Company’s Partner Alliance Program. Cost of client engineering services Cost of engineering services revenue consist primarily of employee compensation costs. Cost of other Cost of other revenue includes the cost of LED lighting products and freight related to products sold to retail and commercial sales channels and third-party royalty expense related to the Company’s WEYV business. Deferred revenue Deferred revenue consists of customer billings or payments received in advance of the recognition of revenue and is recognized as revenue when revenue recognition criteria are met. Cash, cash equivalents and restricted cash The Company considers all highly liquid investments with original or remaining maturities of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Restricted cash is included in other long-term assets on the consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets that sum to the total of the amounts reported in the consolidated statements of cash flows (in thousands): December 31, 2017 2016 Cash and cash equivalents $ 39,213 $ 16,874 Restricted cash included in other long-term assets 365 265 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 39,578 $ 17,139 Restricted cash represents amounts required for a contractual agreement with an insurer for the payment of potential health insurance claims, and term deposits for bank guarantees. Accounts receivable, net An allowance for doubtful accounts is recorded when amounts are determined to be uncollectible based on specific identification of customer circumstances, age of the receivable and other available information. Accounts are written off when it becomes apparent that such amounts will not be collected. Generally, the Company does not require collateral or charge interest on accounts receivable. Accounts receivable were reported net of an allowance for doubtful accounts of $0.8 million and $0.6 million at December 31, 2017 and 2016, respectively. Activity in the allowance for doubtful accounts was as follows (in thousands): For the year ended December 31, 2017 2016 2015 Balance, beginning of year $ (565 ) $ (937 ) $ (1,439 ) Provision charged to expense (610 ) (291 ) (145 ) Write-offs, net of recoveries 414 638 536 Effects of foreign currency translation (37 ) 25 111 Balance, end of year $ (798 ) $ (565 ) $ (937 ) Concentrations of credit risk The Company’s financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and trade receivables. The risk with respect to trade receivables is partially mitigated by the diversity, both by geography and by industry, of the Company’s customer base. The Company’s accounts receivable are derived from sales to a large number of direct customers and resellers around the world. Sales to customers within the automotive industry accounted for 50%, 50% and 51%, respectively, of the Company’s 2017, 2016 and 2015 revenue, with no other industry representing more than 10% of revenue. No individual customer accounted for 10% or more of revenue in the years ended December 31, 2017, 2016 or 2015. Inventory Inventory is stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out Inventory consisted of the following (in thousands): December 31, 2017 2016 Raw materials $ — $ 52 Finished goods 1,980 1,175 Total inventory – net $ 1,980 $ 1,227 Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation and amortization. Equipment held under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements and assets acquired under capital leases are amortized over the lease term or the estimated useful life of the related asset or improvement, whichever is shorter. Expenditures for maintenance and repairs are charged to expense in the period incurred. Major expenditures for betterments are capitalized when they meet the criteria for capitalization. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized. Software development costs Software development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Technological feasibility is established upon the completion of a detailed program design. Capitalization of software development costs begins upon the establishment of technological feasibility and ends when the product is available for general release. Generally, the time between the establishment of technological feasibility and commercial release of software is short. As such, all internal software development costs have been expensed as incurred and included in research and development expense in the accompanying consolidated statements of operations. Impairment of long-lived assets Long-lived assets, such as property and equipment, and definite-lived intangible assets, including developed technology, and customer relationships, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company compares the undiscounted future cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models and third-party independent appraisals. No impairment losses were recognized in 2017, 2016, or 2015. Goodwill and other indefinite-lived intangible assets Goodwill represents the excess of the consideration transferred for an acquired entity over the estimated fair values of the net tangible assets and the identifiable assets acquired. As described in Note 4—Acquisitions, the Company has recorded goodwill in connection with certain acquisitions. Goodwill and other indefinite-lived intangible assets are not amortized, but rather are reviewed for impairment annually or more frequently if facts or circumstances indicate that its carrying value may not be recoverable. The Company has determined that there is one reporting unit with goodwill subject to goodwill impairment testing. An entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount prior to performing the quantitative two-step two-step If the two-step The Company performs its annual impairment review of goodwill in the fourth quarter of each year and when a triggering event occurs between annual impairment dates. For 2017, 2016 and 2015, the Company performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of its reporting unit with goodwill was less than the carrying amounts. Accordingly, the Company determined that its goodwill was not impaired. Receivable for R&D credit The French government provides a research and development (“R&D”) tax credit known as Credit Impôt Recherche, or CIR, in order to encourage Companies to invest in R&D. The tax credit is deductible from the French income tax and any excess is carried forward for three years. After three years, any unused credit may be reimbursed to the Company by the French government. As of December 31, 2017, the Company had approximately $10.2 million receivable from the French government related to CIR, of which $3.3 million is recorded in income tax receivable and the remaining $6.9 million is recorded in other long-term assets. CIR is subject to customary audit by the French tax authorities. Valuation of common stock prior to IPO Due to the absence of an active market for the Company’s common stock prior to the Company’s IPO in the fourth quarter of 2017, the Board of Directors, with the assistance of a third-party valuation specialist, determined the fair value of the Company’s common stock. The valuation methodology included estimates and assumptions including forecasts of future cash flows that required significant judgments. These valuations considered a number of objective and subjective factors, including the Company’s actual operating and financial performance, external market conditions, performance of comparable publicly traded companies, comparable transactions, business developments, likelihood of achieving a liquidity event, such as an initial public offering or sale, and common stock transactions, among other factors. The Company utilized methodologies in accordance with the framework of the American Institute of Certified Public Accountants’ Technical Practice Aid, Valuation of Privately-Held Company Equity Securities issued as Compensation, Derivative financial instruments The Company may use derivative financial instruments, primarily interest rate swap contracts, to hedge its exposure to interest rate risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts during the year are recorded in other expense (income), net in the consolidated statement of operations. Hedge accounting has not been applied. Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent it believes that these assets will more likely than not be realized. These deferred tax assets are subject to periodic assessments as to recoverability and if it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recorded which increase the provision for income taxes. In making such determination, the Company considers all available positive and negative evidence, including historical taxable income, projected future taxable income, the expected timing and reversal of existing temporary differences and tax planning strategies. If based upon the evidence, it is more likely than not that the deferred tax asset will not be realized, a valuation allowance is recorded. A valuation allowance is recognized to reduce deferred tax assets to the amount that management believes is more likely than not to be realized. The Company applies a more-likely-than-not Research and development costs Research and development costs are expensed as incurred. Research and development expenses consist primarily of salaries and benefits of research and development employees and costs incurred related to the development of new software products and significant enhancements and engineering changes to existing software products. Advertising costs Advertising costs are expensed as incurred. Advertising expenses were $3.5 million, $2.5 million and $2.2 million for the years ended December 31, 2017, 2016, and 2015, respectively. Mezzanine equity In 2017, the Company issued 200,000 shares of Class A common stock to a third party as partial consideration for the purchase of developed technology. These shares have a put right that can be exercised by the holder five years from date of purchase at $12.50 per share that requires the shares to be recorded at fair value and classified as mezzanine equity in the consolidated balance sheet. As of December 31, 2017, the Company concluded that it is no longer probable that the put option will be exercised as the put value is substantially below market value and subsequent adjustment is not required. Classification of the of instrument shall remain as mezzanine equity until one of the following three events take place; 1) shares are sold on open market; 2) a redemption feature lapses; or 3) there is a modification of the terms of the instrument. As none of these events have taken place as of December 31, 2017, the classification remains as mezzanine equity. Stock-based compensation Employee stock-based awards, consisting of stock options expected to be settled by issuing shares of Class A common stock, are recorded as equity awards. The fair value of these awards on the date of grant is measured using the Black-Scholes option pricing model. The Company expenses the grant date fair value of its time-vested stock options subject to graded vesting using the straight-line method over the applicable service period. Employee stock-based awards, which consisted of stock options with repurchase features that allowed them to be settled in cash at a purchase price that was less than the current fair value were considered liability-based awards. These awards were initially recorded at fair value and remeasured to fair value at the end of each reporting period until settled. During the quarter ended June 30, 2017, the Company changed its accounting policy to measure the fair value of its liability awards using the Black-Scholes option pricing model as a result of the Company no longer meeting the definition of a non-public Recent accounting guidance Accounting standards adopted The Company adopted Accounting Standards Update, “ASU” No. 2015-11, Inventory: Simplifying the Measurement of Inventory, The Company early adopted ASU No. 2016-09, Employee Share-Based Payment Accounting 2016-09 The Company early adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory 2016-16 The Company early adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, Accounting standards not yet adopted Revenue Recognition No. 2014-09, Revenue from Contracts with Customers 2014-09 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date 2014-09 Under existing GAAP, the Company does not have vendor-specific objective evidence (“VSOE”) of fair value for post-contract customer support (“PCS”) sold along with software products licenses; therefore, revenues for the software products licenses (including perpetual licenses), PCS and professional services, if applicable, are considered to be one accounting unit and, once all services have commenced, are recognized ratably over the remaining period of the arrangement (the longer of the contractual service term or PCS term). Under ASU 2014-09, 2014-09 Financial Instruments No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities 2016-01 2016-01 Leases No. 2016-02, Leases (Topic 842) right-of-use 2016-02 2016-02 2016-02 Cash Classification No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 2016-15 No. 2016-15 Goodwill Impairment No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 2017-04 Retirement Benefits 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. 2017-07 Stock Compensation 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. No. 2017-09 Derivatives and Hedging 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair value measurements The accounting guidance for fair value, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The framework for measuring fair value consists of a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1— Quoted prices in active markets for identical assets and liabilities at the measurement date; Level 2— Observable inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3— Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Items measured at fair value on a recurring basis The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities (in thousands): Liability for Class A redeemable Liability for Balance at December 31, 2015 6,692 11,033 Shares issued upon exercise of stock options 1,841 — Repurchase of shares (79 ) — Exercise of stock options — (2,084 ) Forfeitures of stock options — (110 ) Change in fair value 2,178 2,765 Balance at December 31, 2016 10,632 11,604 Exercise of stock options 432 (411 ) Forfeitures of stock options — (157 ) Change in fair value 19,223 25,191 Modification to stock options as a result of the Company’s IPO (1) (30,287 ) (36,227 ) Balance at December 31, 2017 $ — $ — (1) As a result of the Company’s IPO in the fourth quarter of 2017, the call feature terminated which resulted in the $66.5 million liability valued immediately prior to the IPO associated with the Company’s Class A redeemable common shares and with the stock options outstanding under the 2001 ISO and NQSO Plan to be reclassified to equity in the fourth quarter of 2017 in accordance with ASC 718. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. Interest on the Company’s long-term debt is at a variable rate, and as such the debt obligation outstanding approximates fair value. The carrying value of the Company’s derivative financial instruments are measured at fair value on a recurring basis. The fair value of derivatives is determined based on inputs derived from or corroborated by observable market data pertaining to relevant interest rates and is considered a level 2 fair value measurement. See Note 9—Financial instruments for additional information regarding the use and fair value of derivatives. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions Runtime Design Automation On September 28, 2017, the Company acquired 100% of the shares of Runtime Design Automation (“Runtime”) for a total of $19.4 million in cash, of which $9.4 million is payable one year from the acquisition date, which includes a $0.7 million working capital adjustment, and 708,000 shares of the Company’s Class A common stock. Runtime complements Altair’s PBS Works™ suite of products for comprehensive, secure workload management for HPS and cloud environments and has solutions to manage highly complex workflows. PBS Works targets product design, weather prediction, oil exploration and bio-informatics, The following table summarizes the consideration transferred to acquire Runtime and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 25,691 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 564 Accounts receivable 2,257 Deferred tax assets 1,713 Other assets 257 Trade names 440 Developed technology (4-year 7,870 Customer relationships (7-year 2,490 Accounts payable and other liabilities (1,000 ) Deferred revenue (1,925 ) Deferred tax liabilities (4,454 ) Total net identifiable assets acquired and liabilities assumed 8,212 Goodwill $ 17,479 Goodwill is primarily attributable to synergies expected to arise after the acquisition and is not deductible for tax purposes. Carriots S.L. In May 2017, the Company acquired 100% of the shares of Carriots S.L. (“Carriots”) for $3.6 million cash, $2.7 million notes payable, and 80,000 shares of the Company’s Class A common stock. Carriots is an Internet of Things (“IoT”) Cloud platform that allows easy development of new IoT enabled products. Carriots complements Altair’s other product suites to provide a comprehensive solution for customers to design and implement IoT enabled products. The following table summarizes the consideration transferred to acquire Carriots and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 6,657 Recognized amounts of identifiable assets acquired and liabilities assumed: Deferred tax assets 394 Other assets 472 Trade names 252 Developed technology (4-year 1,317 Customer relationships (7-year 296 Accounts payable and other liabilities (1,015 ) Total net identifiable assets acquired and liabilities assumed 1,716 Goodwill $ 4,941 Goodwill is primarily attributable to synergies expected to arise after the acquisition and is not deductible for tax purposes. CEDRAT S.A. In April 2016, the Company completed the acquisition of all of the common shares of CEDRAT S.A. (“CEDRAT”) for $3.7 million in cash and $1.4 million in a note payable. CEDRAT is in the field of simulating low-frequency The following table summarizes the consideration transferred to acquire CEDRAT and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 5,122 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 363 Accounts receivable 542 Income tax receivable 995 Other assets 206 Trade names 269 Developed technology (4-year 1,085 Customer relationships (7-year 938 Accounts payable and other liabilities (2,742 ) Deferred revenue (290 ) Total net identifiable assets acquired and liabilities assumed 1,366 Goodwill (1) $ 3,756 (1) The goodwill included $3.5 million that was tax deductible. Other business acquisitions During the years ended December 31, 2017, 2016 and 2015, the Company completed other business acquisitions that were individually and in the aggregate insignificant. The Company has accounted for all of its acquisitions using the acquisition method. The operating results of each acquisition have been included in the consolidated financial statements since the respective dates of acquisition. The combined purchase price related to the 2017 acquisitions, excluding Runtime and Carriots, was not material. The combined purchase price related to the 2016 acquisitions, excluding CEDRAT, was $6.0 million, which consisted of cash of $3.1 million and notes payable of $2.9 million. The total consideration transferred was allocated to assets and liabilities of each acquisition based on management’s estimates of the fair values of the assets acquired and liabilities assumed. The allocation included $2.3 million to intangibles, consisting of developed technology, customer relationships, and trade names and $4.1 million to goodwill. There was no taxable goodwill associated with the Company’s other 2016 acquisitions. The combined consideration transferred related to the 2015 acquisitions was $4.4 million, which consisted of cash of $2.9 million, equity of $0.7 million and notes of $0.8 million. The total consideration transferred was allocated to assets and liabilities of each acquisition based on management’s estimates of the fair values of the assets acquired and liabilities assumed. The allocation included $1.9 million to intangibles, consisting of developed technology, customer relationships, and trade names and $2.9 million to goodwill, of which $1.0 million was tax deductible. For each of its acquisitions the Company engaged a third-party valuation firm to assist the Company in valuing certain assets and liabilities acquired. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and equipment, net Property and equipment consists of the following (in thousands): Estimated December 31, 2017 2016 Land Indefinite $ 7,994 $ 7,994 Building and improvements 5-39 years 15,185 14,956 Computer equipment and software 3-5 32,103 27,461 Office furniture and equipment 5-15 6,751 5,306 Leasehold improvements (1) 6,467 5,397 Total property and equipment 68,500 (2) 61,114 (2) Less: accumulated depreciation and amortization 37,054 31,406 Property and equipment, net $ 31,446 $ 29,708 (1) Shorter of lease term or estimated useful life, generally ranging from five to ten years. (2) Equipment under capital lease obligations had an original carrying value of approximately $1.1 million and $1.4 million at December 31, 2017 and 2016, respectively. In November 2016, the Company purchased land adjacent to Altair’s corporate headquarters for future expansion of the Company’s facilities for $4.0 million. Depreciation expense, including amortization of assets under capital lease, was $6.3 million, $6.7 million and $5.8 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and other intangible assets Goodwill The changes in the carrying amount of goodwill, which is attributable to the Software reporting segment, are as follows (in thousands): Balance at December 31, 2014 $ 28,859 Acquisitions 2,897 Effects of foreign currency translation (2,516 ) Balance at December 31, 2015 29,240 Acquisitions 7,855 Effects of foreign currency translation (470 ) Balance at December 31, 2016 36,625 Acquisitions 22,420 Effects of foreign currency translation 3,661 Balance at December 31, 2017 $ 62,706 Other intangible assets A summary of other intangible assets is shown below (in thousands): December 31, 2017 Weighted Gross Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 years $ 25,947 $ 9,909 $ 16,038 Customer relationships 7 years 11,794 6,195 5,599 Noncompete agreements 5 years 824 824 — Other intangibles 10 years 143 57 86 Total definite-lived intangible assets 38,708 16,985 21,723 Indefinite-lived intangible assets: Trade names 2,738 2,738 Total other intangible assets $ 41,446 $ 16,985 $ 24,461 December 31, 2016 Weighted Gross Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 years $ 10,631 $ 5,034 $ 5,597 Customer relationships 7 years 8,646 4,977 3,669 Noncompete agreements 5 years 824 824 — Other intangibles 10 years 117 40 77 Total definite-lived intangible assets 20,218 10,875 9,343 Indefinite-lived intangible assets: Trade names 1,825 1,825 Total other intangible assets $ 22,043 $ 10,875 $ 11,168 Amortization expense related to amortizing intangible assets was $5.4 million, $3.3 million and $2.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. Estimated amortization expense for the next five years as of December 31, 2017 is as follows (in thousands): Year ending December 31, 2018 $ 6,692 December 31, 2019 $ 5,653 December 31, 2020 $ 5,015 December 31, 2021 $ 2,931 December 31, 2022 $ 639 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt The carrying value of debt is as follows (in thousands): December 31, 2017 2016 Prior Credit Agreement: Revolving Credit Facility $ — $ 27,355 Term Loan A — 57,500 Obligations held under capital leases (Note 18) 207 196 Other borrowings 203 330 Total debt 410 85,381 Less: unamortized debt issuance costs — 140 Less: current portion of long-term debt 232 10,435 Long-term debt, net of current portion $ 178 $ 74,806 Credit agreement Revolving credit facility On October 19, 2017, the Company entered into an amended and restated credit agreement with Altair Engineering Inc., as borrower, JPMorgan Chase Bank, N.A., as the lead arranger, sole book runner, the administrative agent, swingline lender and letter of credit issuer, and a syndicate of lenders (“2017 Credit Agreement”). The 2017 Credit Agreement became effective on satisfaction of certain conditions including the closing of the Company’s IPO and provides for an initial aggregate commitment amount of $100.0 million, with a sublimit for the issuance of letters of credit of up to $5.0 million and a sublimit for swingline loans of up to $5.0 million. The 2017 Credit Agreement matures on October 18, 2022. The 2017 Credit Agreement allows the Company to request that the aggregate commitments under the 2017 Credit Agreement be increased by up to $50.0 million for a total of $150.0 million, subject to certain conditions, by obtaining additional commitments from the existing lenders or by causing a person acceptable to the administrative agent to become a lender (in each case subject to the terms and conditions set forth in the 2017 Credit Agreement). As of December 31, 2017, the Company had no outstanding borrowings under the 2017 Credit Agreement and there was $100.0 million available for future borrowing. The 2017 Credit Agreement is available for general corporate purposes, including working capital, capital expenditures, and permitted acquisitions. Borrowings under the 2017 Credit Agreement bear interest at a rate per annum equal to an agreed upon applicable margin plus, at the Company’s option, either the Alternate Base Rate (defined as the greatest of (1) the Prime Rate (as defined in the 2017 Credit Agreement) in effect on such day, (2) the Federal Funds Effective Rate (as defined in the 2017 Credit Agreement) in effect on such day plus 1/2 of 1.00% or (3) the Adjusted LIBO Rate (as defined in the 2017 Credit Agreement) for a one month interest period on such day (or if such day is not a business day, the immediately preceding business day) plus 1.00%) or the Adjusted LIBO Rate. The applicable margin for borrowings under the 2017 Credit Agreement is based on the Company’s most recently tested consolidated total net leverage ratio and will vary from (a) in the case of Eurodollar loans, 1.25% to 2.00%, and (b) in the case of ABR loans or swingline loans, 0.25% to 1.00%. The Company pays a commitment fee ranging from 0.15% to 0.30% on the unused portion of the 2017 Credit Agreement. Collateral and guarantees The 2017 Credit Agreement is secured by collateral including (i) substantially all of the Company’s properties and assets, and the properties and assets of the Company’s domestic subsidiaries but excluding any patents, copyrights, patent applications or copyright applications or any trade secrets or software products and (ii) pledges of the equity interests in all present and future domestic subsidiaries (subject to certain exceptions as provided for under the 2017 Credit Agreement). The Company’s direct and indirect domestic subsidiaries are guarantors of all of the obligations under the 2017 Credit Agreement. Debt covenants The 2017 Credit Agreement requires the Company to maintain the following financial covenants: • Maximum Net Leverage Ratio • Consolidated Interest Coverage Ratio At December 31, 2017, the Company was in compliance with all such financial covenants. Prior credit agreement Prior to entering into the 2017 Credit Agreement, the Company’s credit agreement consisted of a $65.0 million term loan (“Term Loan A”) and a $60.0 million revolving commitment (“2016 Revolving Credit Facility”) including a $5.0 million swingline subfacility, and a letter of credit subfacility (collectively, the “Secured Credit Agreement”.) At December 31, 2016, there was $57.5 million outstanding under Term Loan A at an interest rate of 2.6% based on the LIBO rate and the applicable margin. The Company was required to make quarterly principal payments on Term Loan A of $2.5 million in 2017, 2018 and March 2019. Any outstanding principal balance was to be paid in full on the maturity date of April 18, 2019. At December 31, 2016, the Company had $27.4 million outstanding under the 2016 Revolving Credit Facility and there was $32.6 million available for future borrowing. The 2016 Revolving Credit Facility was available for general corporate purposes, including working capital, capital expenditures, and permitted acquisitions. All borrowings under the 2016 Revolving Credit Facility were due on the termination date in April 2019. The weighted-average interest rate on borrowings under the 2016 Revolving Credit Facility was 2.6% for the year ended December 31, 2016. On November 3, 2017, in connection with the completion of the Company’s IPO, the Company repaid in full all outstanding debt under the Secured Credit Agreement. The Company paid a total of approximately $93.1 million, which included outstanding principal, interest, and other nominal costs. Upon the repayment of the Secured Credit Agreement, all unamortized debt issuance costs were recorded as interest expense. Other The Company has available overdraft and line of credit facilities in several countries in which it operates. These credit facilities are with various domestic and international banks and are at quoted market rates. At both December 31, 2017 and 2016, the Company had $3.5 million of availability under these facilities and there were no outstanding commitments. Scheduled maturities of long-term debt At December 31, 2017, future maturities of long-term debt, excluding capital leases, were as follows (in thousands): Year ending December 31, 2018 $ 126 2019 77 2020 — 2021 — 2022 — Total $ 203 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 8. Other liabilities The following table provides the details of other accrued expenses and current liabilities (in thousands): December 31, 2017 2016 Accrued VAT $ 3,916 $ 3,928 Income taxes payable 3,724 2,156 Accrued professional fees 2,500 1,389 Accrued royalties 2,037 1,583 Non-income 1,343 739 Defined contribution plan liabilities 1,274 1,139 Billings in excess of cost 832 1,021 Related party liabilities 119 1,045 Other current liabilities 5,999 3,296 Total $ 21,744 $ 16,296 The following table provides the details of other long-term liabilities (in thousands): December 31, 2017 2016 Pension and other post retirement liabilities $ 7,670 $ 5,959 Deferred tax liabilities 1,620 1,379 Other liabilities 8,357 9,776 Total $ 17,647 $ 17,114 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 9. Financial instruments The Company is exposed to certain financial market risks related to its ongoing business operations. The primary risks the Company manages through derivative financial instruments and hedging activities are foreign currency exchange rate risk and interest rate risk. Derivative financial instruments and hedging activities can be utilized to protect the Company’s cash flow from adverse movements in foreign currency exchange rates and to manage interest costs. Although the Company is exposed to credit loss in the event of nonperformance by the counterparty to the derivative financial instruments, the Company attempts to limit this exposure by entering into agreements directly with major financial institutions that meet the Company’s credit standards and that are expected to fully satisfy their obligations under the contracts. Interest rate swaps Interest rate exposures are reviewed periodically and the Company may enter into interest rate swap agreements to manage its exposure. The Company’s exposure to interest rate risk arises primarily from changes in the LIBO rate. The Company will hold these derivatives for economic purposes but does not designate these derivatives to obtain hedge accounting treatment. As such, gains or losses on these contracts (including contracts that do not qualify for hedge accounting under ASC 815), are reported in earnings immediately as Other expense (income), net. These contracts limit exposure to changes in interest payments associated with variable rate debt. However, as the change in the fair value of the interest rate swaps is impacted by both realized and unrealized gains and losses on the contracts, the amount recognized in earnings may not offset the changes in the variability of interest expense during a given period. As of December 31, 2017, and 2016, the Company had an interest rate swap outstanding with a $4.5 million notional value. This interest rate swap matures on December 23, 2019. Foreign currency derivatives The Company sells its products (and incurs costs) in countries throughout the world. As a result, it is exposed to fluctuations in foreign currency exchange rates. Foreign currency exposures are reviewed on a periodic basis and any natural offsets are considered prior to entering into a derivative financial instrument. The Company could enter into foreign exchange contracts to hedge portions of its foreign currency denominated forecasted revenues, purchases and the subsequent cash flows after considering natural offsets within the consolidated group. The Company will hold these derivatives for economic purposes but does not designate these derivatives to obtain hedge accounting treatment. As such, gains or losses on these contracts (including contracts that do not qualify for hedge accounting under ASC 815), are reported in earnings immediately and are substantially offset by the effect of the revaluation of the underlying foreign currency denominated transactions. There were no foreign exchange contracts outstanding at December 31, 2017 or 2016. Derivative instruments As of December 31, 2017 and 2016, the fair value of the Company’s derivative instruments included in other long-term liabilities was a liability of $0.2 million and $0.3 million, respectively. Credit-risk-related contingent features The Company has entered into International Swaps and Derivatives Association (“ISDA”) agreements with its significant derivative counterparty. These agreements provide bilateral netting and offsetting of accounts that are in a liability position with those that are in an asset position. These agreements do not require the Company to maintain a minimum credit rating in order to be in compliance and do not contain any margin call provisions or collateral requirements that could be triggered by derivative instruments in a net liability position. As of December 31, 2017, the Company had not and was not required to post any collateral to support its derivatives in a liability position. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ equity Preferred stock As of December 31, 2017, the Company had authorized 45,000,000 shares of preferred stock, par value $0.0001, of which no shares were issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to fix rights, preferences, privileges, and restrictions, including dividends and the number of shares constituting any series or the designation of such series, without any further vote or action by the stockholders. Common stock As of December 31, 2017, the Company had authorized 513,796,572 shares of Class A common stock, par value $0.0001, and 41,203,428 shares of Class B common stock, par value $0.0001. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. The holders of Class A and Class B common stock are entitled to dividends at the sole discretion of the Board of Directors. No common stock dividends were declared or paid in 2017, 2016 or 2015. Recapitalization On April 3, 2017, the Company completed a recapitalization (the “Recapitalization”) of its capital stock by filing a certificate of amendment to its articles of incorporation with the State of Michigan pursuant to which: (i) each share of the Company’s Class A voting common stock, or old Class A shares, automatically converted into one share of new Class B voting common stock entitled to ten votes per share; and (ii) each share of the Company’s Class B non-voting Subsequent to the Recapitalization, the Company’s authorized common stock consists of 76,000,000 shares of no par, Class A common stock and 44,000,000 shares of no par, Class B common stock. Prior to the Recapitalization, the Company’s authorized common stock consisted of 99,279,884 shares of no par, Class A Voting Common Stock and 25,153,872 shares of no par, Class B Nonvoting Common Stock. Each class of common stock had equal and identical rights, preferences and limitations, other than voting. The holders of old Class A common stock were entitled to one vote per share on all matters submitted to the stockholders for a vote and holders of old Class B common stock had no voting rights. Other In October 2015, the Company acquired Altair Bellingham, LLC from significant stockholders of the Company for cash of $0.7 million, which was paid in February 2016. This transaction was reported as a return of capital for the year ended December 31, 2015. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 11. Stock-based compensation 2001 stock-based compensation plans Nonqualified stock option plan In 2001, the Company established the Nonqualified Stock Option Plan (“NSO Plan”) under which 6,441,972 stock options with an exercise price of $.000025 remain outstanding at December 31, 2017. The NSO Plan was terminated in 2003. Stock options under the NSO plan were immediately vested and have a contractual term of 35 years from the date of grant. The outstanding awards will continue to be governed by their existing terms under the NSO Plan. The NSO Plan is accounted for as an equity plan. The following table summarizes the stock option activity under the NSO Plan: Number of options Weighted average per share Weighted average Outstanding at January 1, 2017 6,458,472 $ 0.000025 20 years Granted — — Exercised (16,500 ) $ — Forfeited — $ — Outstanding at December 31, 2017 6,441,972 $ 0.000025 19 years Exercisable at December 31, 2017 6,441,972 $ 0.000025 19 years Incentive and nonqualified stock-based plan Also in 2001, the Company established the Incentive and Nonqualified Stock-based Plan (“ISO Plan”) which was terminated in 2011 and was authorized to issue nonqualified stock options (“NQSO”) and incentive stock options (“ISO”) totaling 11,153,872 shares of Class A common stock. The NQSO grants could be issued at less than the fair market value at date of grant under the terms of the ISO Plan, while ISO grants were issued at a price equal to or greater than the fair market value at date of grant. Options generally vest over a two to three-year period. All options have a contractual term of ten years from the date of grant. At December 31, 2017 and 2016, there were 888,864 and 2,972,744 options outstanding, respectively, under the ISO Plan. Until the effective date of the Company’s IPO, options granted under the ISO Plan were accounted for as liability awards as the terms of the awards could require or allow repurchase of the shares at amounts different than fair value. The Company made the accounting policy election to use the intrinsic value method of accounting to determine stock-based compensation liabilities for these awards. During the quarter ended June 30, 2017, the Company changed its accounting policy to measure the fair value of its liability awards using the Black-Scholes option pricing model as a result of the Company no longer meeting the definition of a non-public The ISO Plan also included stock-based compensation liability for 2,340,596 of Class A shares outstanding at December 31, 2016, resulting from the Company’s call feature with an exercise price that may be set at less than the fair market value at date of grant under the terms of the ISO Plan. The Company utilized the fair value of the outstanding Class A shares to determine the stock-based compensation liabilities for these shares, based on the respective dates. As a result of the Company’s IPO in the fourth quarter 2017, the call feature terminated which resulted in the $66.5 million liability valued immediately prior to the IPO associated with the Company’s Class A redeemable common shares and with the stock options outstanding under the 2001 ISO and NQSO Plan to be reclassified to equity as of December 31, 2017 in accordance with ASC 718. The following table summarizes the stock option activity under the 2001 Stock-based compensation plans for the periods indicated as follows: Number of Weighted Weighted Outstanding at January 1, 2017 2,972,744 $ 0.64 3.4 Granted — — Exercised (1) (2,070,916 ) $ 0.63 Forfeited (12,964 ) $ 0.53 Outstanding at December 31, 2017 888,864 $ 0.67 2.5 Exercisable at December 31, 2017 888,864 $ 0.67 2.5 (1) Includes 1.7 million stock options exercised in connection with the Company’s IPO. The total intrinsic value of the ISO Plan stock options exercised during the years ended December 31, 2017 and 2016 was $25.6 million and $2.7 million, respectively. 2012 stock-based compensation plans During 2012, the Company established the 2012 Incentive and Nonqualified Stock Option Plan (“2012 Plan”) which permits the issuance of 5,200,000 shares of Class A common stock for the grant of nonqualified stock options (“NQSO”) and incentive stock options (“ISO”) for management, other employees, and board members of the Company. The options are issued at a price equal to or greater than fair market value at date of grant. All options have a contractual term of 10 years from date of grant. The 2012 Plan is accounted for as an equity plan. For those options expected to vest, compensation expense is recognized on a straight-line basis over a four-year period, the total requisite service period of the awards. Compensation expense related to the 2012 Plan was $0.7 million, $0.6 million and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. The following table summarizes the stock option activity under the 2012 Plan for the periods indicated as follows: Number of Weighted Weighted Outstanding at January 1, 2017 1,797,252 $ 3.13 7.5 Granted 608,948 $ 5.18 Exercised (189,492 ) $ 2.60 Forfeited (33,581 ) $ 3.89 Outstanding at December 31, 2017 2,183,127 $ 3.74 7.3 Exercisable at December 31, 2017 1,240,692 $ 3.01 6.2 Total compensation cost related to nonvested awards not yet recognized as of December 31, 2017 totaled $1.5 million, and is expected to be recognized over a weighted average period of 2.8 years. The Company measures the fair value of its equity awards on the date of grant using the Black-Scholes option pricing model. This valuation model requires the Company to make certain estimates and assumptions, including assumptions related to the expected price volatility of the Company’s stock, the period under which the options will be outstanding, the rate of return on risk-free investments, and the expected dividend yield for the Company’s stock. The weighted average assumptions used in the Black-Scholes option pricing model used to calculate the fair value of options granted during the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 grants 2016 grants 2015 grants Weighted average grant date fair value per share $ 1.86-$1.94 $ 1.42-$1.65 $ 1.43 Expected volatility 34% 37% 37% Expected term (in years) 5.75-6.25 5.75-6.25 6.25 Risk-free interest rate 2.02% 1.37%-1.79% 1.98% Expected dividend yield 0% 0% 0% Prior to the IPO, the Company’s equity value was estimated utilizing a combination of the Discounted Cash Flow Method under the Income Approach, the Guideline Public Company Method, and the Transaction Method under the Market Approach. The equity value is used to derive the fair value per share which is used as an input in the Black Scholes option pricing model. The estimated volatility was derived using the historical volatility of the returns of comparable publicly traded companies. The risk-free rate was based on U.S. Treasury zero-coupon Other In connection with the acquisition of Runtime Design Automation (“RTDA”), all outstanding stock options of RTDA became fully vested and exercisable prior to the date of consummation which represents an acceleration to full vesting of all unvested stock options as of the date of the business combination. The accounting treatment for the outstanding stock options in the context of the business combination is to allocate the fair market value of RTDA’s options at the date of consummation attributable to pre-combination pre-combination The estimated post combination expense to the Company as a result of the business combination was approximately $2.0 million which was immediately expensed in the post combination financial statements in the third quarter of 2017, as there were no further service conditions. The Company determined that the Black-Scholes model was an appropriate valuation model for the employee share options as all of RTDA’s stock options had only service conditions. The stock-based compensation expense was recorded as follows (in thousands): Year ended December 31, 2017 2016 2015 Cost of revenue-software $ 350 $ 22 $ 44 Research and development 12,540 1,370 149 Sales and marketing 7,693 775 109 General and administrative 26,698 2,965 295 Total stock-based compensation expense $ 47,281 $ 5,132 $ 597 On September 27, 2017, the Company’s board of directors adopted the 2017 Equity Incentive Plan (“2017 Plan”), and the 2017 Plan was approved by the Company’s stockholders. The 2017 Plan became effective on October 30, 2017, which was one business day prior to the effective date of the Company’s IPO. The 2017 Plan provides for the grant of incentive stock options to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, other cash-based awards and other stock-based awards to the Company’s employees, directors and consultants and the Company’s parent, subsidiary, and affiliate corporations’ employees and consultants. The 2017 Plan has 6,207,976 authorized shares of the Company’s Class A common stock reserved for issuance. No issuances have been made under the 2017 Plan as of December 31, 2017. |
Other Expense (Income), Net
Other Expense (Income), Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | 12. Other expense (income), net Other expense (income), net consists of the following (in thousands): Year ended December 31, 2017 2016 2015 Foreign exchange (gain) loss $ 1,254 $ (271 ) $ 973 Other (260 ) (249 ) (191 ) Other expense (income), net $ 994 $ (520 ) $ 782 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income taxes The components of (loss) income before income taxes are as follows (in thousands): Year ended December 31, 2017 2016 2015 U.S. $ (49,761 ) $ (2,225 ) $ (6,861 ) Non-U.S. 13,350 15,927 18,610 $(36,411) $13,702 $11,749 The significant components of the income tax expense are as follows (in thousands): Year ended December 31, 2017 2016 2015 Current U.S. Federal $ — $ — $ — Non-U.S. 10,290 9,413 9,893 U.S. State and Local 135 202 56 Total current 10,425 9,615 9,949 Deferred U.S. Federal 54,130 (5,358 ) (8,445 ) Non-U.S. (1,306 ) (610 ) (587 ) U.S. State and Local (253 ) (108 ) (99 ) Total deferred 52,571 (6,076 ) (9,131 ) Income tax expense $ 62,996 $ 3,539 $ 818 The reconciliation of income taxes calculated at the U.S. Federal statutory income tax rate of 35% to income tax expense is as follows (in thousands): Year ended December 31, 2017 2016 2015 Income taxes at U.S. federal statutory rate $ (12,744 ) $ 4,796 $ 4,117 Foreign income taxes at rates other than the federal statutory rate 373 (584 ) (10 ) U.S. state and local income taxes, net of U.S. federal tax benefit (155 ) 94 (47 ) U.S. Tax Cut and Jobs Act: transition tax, net of foreign tax credits 4,187 — — Change in valuation allowance 47,429 — — Foreign withholding taxes 4,181 4,235 3,790 Foreign dividends — 5,077 4,152 U.S. foreign tax credit (4,154 ) (8,786 ) (9,808 ) Research and development tax credit (2,999 ) (2,696 ) (1,608 ) Domestic production activities deduction — (840 ) (833 ) Non-deductible 10,871 2,064 234 Meals & entertainment 358 235 258 Other (163 ) (91 ) 125 Deferred tax on investment in subsidiary — (264 ) (214 ) Uncertain tax position 446 299 662 Tax law changes 15,366 — — Income tax expense $ 62,996 $ 3,539 $ 818 The effective tax rate for the year ended December 31, 2017, as compared to December 31, 2016, was impacted by increased tax expense of approximately $15.4 million due to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”) in the United States on December 22, 2017, entirely offset by a valuation allowance. The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering corporate income tax rates and imposing a one-time one-time The enactment of the Tax Cuts and Jobs Act (the “Tax Act”) in the United States on December 22, 2017, significantly revises the U.S. corporate income tax by, among other things, lowering corporate income tax rates from 35% to 21% and imposing a one-time The Company remeasured certain U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, the Company is still analyzing certain aspects of the Tax Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of net deferred tax assets and deferred tax liabilities was a net tax charge of $15.4 million, which was fully offset by an adjustment to the valuation allowance. Additionally, the Company recorded a deferred tax benefit of $1.3 million for the reduction of a deferred tax liability related to an indefinite-lived intangible asset. The Tax Act did not change the Company’s judgment regarding the realizability of these net deferred tax assets. The one-time one-time Deferred income tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statements purposes. The approximate tax effect of each type of temporary difference, and operating losses and tax credit carryforwards that give rise to a significant portion of the deferred tax assets and liabilities are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Deferred revenue $ 19,569 $ 16,966 Net operating loss carryforwards 7,601 3,550 Tax credit carryforwards 22,191 17,839 Stock-based compensation 8,922 15,825 Capitalized research and development 8,798 12,492 Accrued expenses 648 1,775 Employee benefits 3,931 3,995 Other 1,905 2,527 Total gross deferred tax assets 73,565 74,969 Less: valuation allowances (54,331 ) (4,153 ) Net deferred tax assets (1) 19,234 70,816 Deferred tax liabilities: Prepaid royalties 6,925 5,821 Property and equipment and intangibles 4,567 2,394 Deferred tax on investment in subsidiary 272 272 Other 739 812 Total deferred tax liabilities 12,503 9,299 Total net deferred tax assets $ 6,731 $ 61,517 (1) Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities. The Company’s accounting for the indefinite reinvestment assertion is incomplete. However, a reasonable estimate of book and tax basis was calculated, and the Company made a provisional assertion. In general, it is the practice and intention of the Company to repatriate previously taxed earnings and to reinvest all other earnings of its non-U.S. non-U.S. one-time non-U.S. The following table summarizes the changes to the valuation allowance balance at December 31, 2017, 2016 and 2015 (in thousands): December 31, 2017 2016 2015 Beginning balance $ 4,153 $ 2,452 $ 2,858 Additions charged to expense 47,429 177 — Deductions — (207 ) (270 ) Other 2,749 1,731 (136 ) Ending balance $ 54,331 $ 4,153 $ 2,452 Additions charged to expense for 2017 of $47.4 million are primarily related to the recording of a valuation allowance against the Company’s U.S. deferred tax assets. In evaluating the need for a valuation allowance, Altair considered the large U.S. federal tax deduction that resulted when non-qualified The following table summarizes the amount and expiration dates of operating loss and tax credit carryforwards at December 31, 2017 (in thousands): Expiration dates Amounts U.S. general business credits and loss carryforwards 2018-2037 $ 24,564 Foreign loss carryforwards indefinite 2,879 U.S. foreign tax credits 2027 2,349 Total operating loss and tax credit carryforwards $ 29,792 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year ended December 31, 2017 2016 2015 Unrecognized tax benefits—January 1 $ 5,604 $ 5,305 $ 4,712 Increase in unrecognized tax benefits as a result of: Additions for tax positions of current period 634 299 826 Reductions for tax positions of prior periods (81 ) — (233 ) Unrecognized tax benefits—December 31 $ 6,157 $ 5,604 $ 5,305 At December 31, 2017, the Company had $6.2 million of gross unrecognized tax benefits that if recognized would affect the effective tax rate and adjustments to other tax accounts, primarily deferred taxes. It is reasonably possible that a change in the Company’s gross unrecognized tax benefits may occur in the next twelve months; however, it is not possible to reasonably estimate the effect this may have upon the gross unrecognized tax benefits. The Company operates globally but considers its more significant tax jurisdictions to include the United States, India, Germany, Japan, and China. India has tax years open for examination from 2005 through 2016. All other significant jurisdictions have open tax years from 2013 through 2016. The Company records interest and penalties with respect to unrecognized tax benefits as a component of the provision for income taxes. For the years ended December 31, 2017 and 2016, accrued interest and penalties related to unrecognized tax benefits were insignificant. For the year ended December 31, 2015, accrued interest and penalties related to unrecognized tax benefits were $0.1 million. |
(Loss) Income Per Share
(Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
(Loss) Income Per Share | 14. (Loss) income per share Basic (loss) income per share attributable to common stockholders is computed using the weighted average number of shares of common stock outstanding for the period, excluding stock options. Diluted (loss) income per share attributable to common stockholders is based upon the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares, including the effect of stock options under the treasury stock method. The following table sets forth the computation of the numerators and denominators used in the basic and diluted (loss) income per share amounts (in thousands, except per share data): Year ended December 31, 2017 2016 2015 Numerator: Net (loss) income $ (99,407 ) $ 10,163 $ 10,931 Denominator: Denominator for basic (loss) income per share—weighted average shares 52,466 48,852 46,609 Effect of dilutive securities, stock options — 9,004 12,100 Denominator for dilutive (loss) income per share 52,466 57,856 58,709 Net (loss) income per share attributable to common stockholders, basic $ (1.89 ) $ 0.21 $ 0.23 Net (loss) income per share attributable to common stockholders, diluted $ (1.89 ) $ 0.18 $ 0.19 The computation of diluted (loss) income per share does not include shares that are anti-dilutive under the treasury stock method because their exercise prices are higher than the average fair value of the Company’s stock during the year. For the year ended December 31, 2017, there were 10.2 million potentially anti-dilutive shares, which were excluded from the computation of (loss) income per share. For the year ended December 31, 2016, there were no anti-dilutive shares excluded from the computation of (loss) income per share. For the year ended December 31, 2015, there were 0.8 million potentially anti-dilutive shares, which were excluded from the computation of (loss) income per share. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | 15. Retirement benefits The Company sponsors a 401(k)-profit sharing plan (the “Plan”) for all eligible U.S. employees. This Plan allows eligible employees to contribute up to 80% of their compensation to the Plan. The Company makes discretionary matching contributions to the Plan provided the employee is employed on the last day of the year. Such discretionary contributions vest ratably over five years of service. The Company’s contributions to the Plan were $1.1 million, $1.1 million and $0.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. The Company also participates in government-mandated retirement and/or termination indemnity plans, benefiting certain non-U.S. December 31, 2017 2016 Accrued compensation and benefits $ 368 $ 332 Other long-term liabilities 7,670 5,959 $ 8,038 $ 6,291 The estimated future benefit payments, which reflect expected future service, that are expected to be paid for each of the next five years are as follows (in thousands): Year ending December 31, 2018 $ 393 December 31, 2019 $ 282 December 31, 2020 $ 342 December 31, 2021 $ 211 December 31, 2022 $ 261 Next five years $ 2,217 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 16. Accumulated other comprehensive loss The components of accumulated other comprehensive loss are as follows (in thousands): Foreign Retirement Total Balance at December 31, 2014 $ (3,631 ) $ (710 ) $ (4,341 ) Other comprehensive loss before reclassification (3,068 ) (217 ) (3,285 ) Tax effects 953 (36 ) 917 Other comprehensive loss (2,115 ) (253 ) (2,368 ) Less: Other comprehensive income (loss) attributable to noncontrolling interest (1 ) — (1 ) Balance at December 31, 2015 (5,745 ) (963 ) (6,708 ) Other comprehensive loss before reclassification 80 (771 ) (691 ) Tax effects (60 ) 195 135 Other comprehensive income (loss) 20 (576 ) (556 ) Balance at December 31, 2016 (5,725 ) (1,539 ) (7,264 ) Other comprehensive income (loss) before reclassification 2,351 (213 ) 2,138 Amounts reclassified from accumulated other comprehensive loss — 54 54 Tax effects — — — Other comprehensive income (loss) 2,351 (159 ) 2,192 Balance at December 31, 2017 $ (3,374 ) $ (1,698 ) $ (5,072 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related party transactions In February 2017, the Company purchased the noncontrolling interest in a consolidated subsidiary from a founder stockholder for an aggregate purchase price of $29 thousand. In January 2016, the Company redeemed 350,400 shares of Class A common stock from founder stockholders for an aggregate purchase price of $1.3 million payable in twelve equal monthly installments. In June 2016, the Company redeemed 137,268 shares of Class A common stock from a related party for an aggregate purchase price of $0.5 million payable in two equal installments. In December 2016, the Company redeemed 59,108 shares of Class A common stock from a related party for an aggregate purchase price of $0.3 million payable in twelve equal monthly installments. In December 2016, the Company redeemed 113,388 shares of Class B common stock from a founder stockholder for an aggregate purchase price of $0.6 million payable in nine equal monthly installments. In October 2015, the Company acquired Altair Bellingham, LLC from significant stockholders of the Company for cash of $0.7 million, which was paid in February 2016. In 2015, the Company redeemed 200,000 shares of Class A common stock for an aggregate purchase price of $0.7 million payable in equal monthly installments of principal and interest over three years. At December 31, 2017 and 2016, respectively, the Company had obligations to related parties for the redemptions summarized above in the amounts of $0.1 million and $1.0 million recorded in other accrued expenses and current liabilities, and nil and $0.1 million recorded in other long-term liabilities. At December 31, 2017 and 2016, respectively, the Company had receivables from an equity investment for $0.5 million and $0.2 million recorded in other long-term assets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and contingencies MSC Litigation In July 2007, MSC Software Corporation filed a lawsuit against the Company alleging misappropriation of trade secrets, breach of confidentiality and other claims. On April 10, 2014, a jury returned a verdict against the Company. The Company challenged the verdict and on November 13, 2014, a judge vacated all but $0.4 million of the judgment and ordered a new trial on damages. On August 21, 2017, the court granted Altair’s motion to strike the testimony of MSC’s damage expert and on October 11, 2017, the court mooted the remaining pre-trial Legal proceedings From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. The Company has received, and may in the future continue to receive, claims from third parties asserting, among other things, infringement of their intellectual property rights. Future litigation may be necessary to defend the Company, its partners and its customers by determining the scope, enforceability and validity of third party proprietary rights, or to establish and enforce the Company’s proprietary rights. The results of any current or future litigation cannot be predicted with certainty and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Royalty agreements The Company has entered into various renewable, nonexclusive license agreements under which the Company has been granted access to the licensor’s technology and the right to sell or use the technology in the Company’s products. Royalties are payable to developers of the software at various rates and amounts, which generally are based upon unit sales or revenue. Royalty fees were $9.3 million, $7.9 million, and $7.1 million for the years ended December 31, 2017, 2016 and 2015, respectively, and are reported in Cost of revenue-software and Cost of revenue—other. Leases The Company leases office space, vehicles, and computer equipment. Such leases, some of which are noncancelable, are set to expire at various dates. Certain of these lease arrangements contain escalation clauses whereby monthly rent increases over time. The future minimum annual lease payments under noncancelable operating leases with an initial term in excess of one year and future minimum capital lease payments at December 31, 2017, are as follows (in thousands): Capital Operating Year Ending December 31, 2018 $ 106 $ 8,946 2019 60 6,919 2020 36 4,797 2021 5 2,892 2022 — 1,933 Thereafter — 2,367 Total minimum lease payments 207 $ 27,854 Less: current installments under capital lease obligations 106 Total long-term portion $ 101 Rent expense for operating leases was $9.9 million, $8.5 million and $7.7 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 19. Segment information The Company defines its operating segments as components of its business where separate financial information is available and used by the chief operating decision maker (“CODM”) in deciding how to allocate resources to its segments and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has identified two reportable segments for financial reporting purposes: Software and Client Engineering Services. The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net (loss) income adjusted for income tax expense (benefit), interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management. Adjusted EBITDA includes an allocation of corporate headquarters costs. The Software reportable segment derives revenue from the sale and lease of licenses for software products focused on the development and application of simulation technology to synthesize and optimize designs, processes and decisions for improved business performance. The Software segment also derives revenue from software support, upgrades, training and consulting services focused on product design and development expertise and analysis support from the component level up to complete product engineering at any stage of the lifecycle. The Client Engineering Services reportable segment provides support to its customers with long-term ongoing product design and development expertise in its market segments of Solvers & Optimization, Modeling & Visualization, Industrial and Concept Design, and high-performance computing. The Company hires simulation specialists, industrial designers, design engineers, materials experts, development and test specialists, manufacturing engineers and information technology specialists for placement at customer sites for specific customer-directed assignments. The “All other” represents innovative services and products, including toggled ® ® Inter-segment sales are not significant for any period presented. The CODM does not review asset information by segment when assessing performance, therefore no asset information is provided for reportable segments. The accounting policies of the segments are the same as those described in Note 2—Summary of significant accounting policies. The following tables are in thousands: Year ended December 31, 2017 Software CES All other Total Revenue $ 280,214 $ 46,510 $ 6,609 $ 333,333 Adjusted EBITDA $ 22,864 $ 4,966 $ (5,313 ) $ 22,517 Year ended December 31, 2016 Software CES All other Total Revenue $ 259,588 $ 47,702 $ 5,950 $ 313,240 Adjusted EBITDA $ 29,411 $ 5,425 $ (4,006 ) $ 30,830 Year ended December 31, 2015 Software CES All other Total Revenue $ 242,861 $ 45,075 $ 6,193 $ 294,129 Adjusted EBITDA $ 23,149 $ 4,776 $ (4,976 ) $ 22,949 Year ended December 31, 2017 2016 2015 Reconciliation of Adjusted EBITDA to GAAP (Loss) income before income taxes: Adjusted EBITDA $ 22,517 $ 30,830 $ 22,949 Stock-based compensation expense (47,281 ) (5,132 ) (597 ) Interest expense (2,160 ) (2,265 ) (2,416 ) Interest income and other (1) 2,260 249 191 Depreciation and amortization (11,747 ) (9,980 ) (8,378 ) (Loss) income before income taxes $ (36,411 ) $ 13,702 $ 11,749 (1) Includes a non-recurring Revenue is attributed to geographic areas based on the country of origin. The following table provides sales to external customers and long-lived assets for each of the geographic areas in which the Company operates (in thousands): Revenue Long-lived assets (1) Year ended December 31, December 31, 2017 2016 2015 2017 2016 United States $ 142,679 $ 139,079 $ 130,791 $ 38,729 $ 25,901 Other countries 6,404 6,032 4,841 116 120 Total Americas 149,083 145,111 135,632 38,845 26,021 Germany 43,751 39,470 37,549 2,802 2,660 France 18,128 15,729 14,057 2,176 2,175 Other countries 40,050 34,909 35,933 4,534 4,317 Total Europe, Middle East and Africa 101,929 90,108 87,539 9,512 9,152 Japan 33,686 33,198 26,795 2,237 879 Other countries 48,635 44,823 44,163 2,574 2,999 Total Asia Pacific 82,321 78,021 70,958 4,811 3,878 Total $ 333,333 $ 313,240 $ 294,129 $ 53,168 $ 39,051 (1) Includes property and equipment, net and definite-lived intangible assets, net. |
Supplemental Quarterly Financia
Supplemental Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Quarterly Financial Information (Unaudited) | 20. Supplemental quarterly financial information (unaudited) The following tables set forth selected unaudited quarterly information. The information for each of these quarters has been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, includes all adjustments, which consist only of normal recurring adjustments, necessary for the fair presentation of the results of operations for these periods in accordance with GAAP. This data should be read in conjunction with the Company’s audited consolidated financial statements and related notes. These quarterly operating results are not necessarily indicative of the Company’s operating results for a full year or any future period. Three months ended (in thousands, except per share data) March 31, June 30, September 30, December 31, Total revenue $ 76,882 $ 81,646 $ 84,938 $ 89,867 Gross profit $ 50,128 $ 54,728 $ 58,636 $ 63,250 Operating loss $ (1,990 ) $ (7,158 ) $ (20,928 ) $ (3,181 ) Net loss $ (2,188 ) $ (7,246 ) $ (29,626 ) $ (60,347 ) Loss per share, basic $ (0.04 ) $ (0.14 ) $ (0.59 ) $ (1.03 ) Loss per share, diluted $ (0.04 ) $ (0.14 ) $ (0.59 ) $ (1.03 ) Three months ended (in thousands, except per share data) March 31, June 30, September 30, December 31, Total revenue $ 74,829 $ 77,511 $ 78,052 $ 82,848 Gross profit $ 49,411 $ 52,171 $ 52,431 $ 56,627 Operating income $ 3,632 $ 3,615 $ 224 $ 7,976 Net income $ 1,481 $ 2,472 $ 314 $ 5,896 Earnings per share, basic $ 0.03 $ 0.05 $ 0.01 $ 0.12 Earnings per share, diluted $ 0.03 $ 0.04 $ 0.01 $ 0.10 In the second, third and fourth quarters of 2017, the Company recognized stock-based compensation expense of $11.2 million, $25.3 million, and $8.0 million, respectively. Income tax expense increased by $56.6 million for the quarter ended December 31, 2017. This increase is primarily due to a $47.0 million increase in tax expense related to the recording of a valuation allowance on the U.S. deferred tax assets, a $15.4 million increase due to the remeasurement of net deferred tax assets and liabilities as part of the Tax Act offset by other tax accounting benefits in the U.S. in the quarter. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of consolidation The accompanying consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the results of the Company and its controlled subsidiaries. Third-party holdings of equity interests in the Company’s subsidiaries that are less than controlled represent noncontrolling interests. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
Reclassifications | Reclassifications Certain prior period amounts included in the 2016 consolidated balance sheet and 2016 consolidated statement of cash flows have been reclassified to conform to the current year presentation. In the accompanying consolidated balance sheet as of December 31, 2016, Obligations for acquisition of businesses has been reclassified out of Other accrued expenses and current liabilities. Note 8 – Other liabilities has been adjusted accordingly. This reclassification had no effect on Total current liabilities. In the accompanying consolidated statement of cash flows for the year ended December 31, 2016, Payments for acquisition of developed technology has been reclassified out of Other investing activities. This reclassification had no effect on Net cash used in investing activities. |
Use of Estimates | Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, management evaluates its significant estimates including provision for doubtful accounts, tax valuation allowances, liabilities for uncertain tax provisions, impairment of goodwill and intangible assets, retirement obligations, useful lives of intangible assets, revenue for fixed price contracts, valuation of common stock, and stock-based compensation. Actual results could differ from those estimates. |
Delaware Conversion | Delaware Conversion On October 5, 2017, the Company became a Delaware corporation and effected a four-for-one four-for-one four-for-one four-for-one In connection with the Company becoming a Delaware corporation, 2,495,752 shares of Class B common stock, held by holders of less than 3% of Class B common stock immediately prior to the conversion, converted into Class A common stock. Pursuant to the Company’s Delaware certificate of incorporation, the Company’s authorized capital consists of 513,796,572 shares of Class A common stock, 41,203,428 shares of Class B common stock and 45,000,000 shares of preferred stock. |
Foreign Currency Translation | Foreign currency translation The functional currency of the Company’s foreign subsidiaries is their respective local currency. The assets and liabilities of the subsidiaries are translated to U.S. dollars at the exchange rate on the balance sheet date. Equity balances and transactions are translated using historical exchange rates. Revenues and expenses are translated at the average exchange rate during the period. Translation adjustments arising from the use of differing exchange rates from period to period are recorded as a component of accumulated other comprehensive loss within stockholders’ equity. All assets and liabilities denominated in a currency other than the functional currency are remeasured into the functional currency with gains and losses recognized in foreign currency losses, net, in the consolidated statements of operations. The Company has no transactions which hedge purchase commitments and no intercompany balances which are designated as being of a long-term investment in nature. |
Revenue Recognition | Revenue recognition The Company generates revenue from the following sources: (1) Software; (2) Client engineering services; and (3) Other. Revenue is recognized when persuasive evidence of an agreement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable, and collection of the fee is probable or reasonably assured. Certain transactions require that government imposed taxes be assessed to the customer. The Company presents revenue net of such government imposed taxes. Software revenue Software component Software revenue includes product revenue from software product licensing arrangements, related services consisting of software maintenance and support in the form of post-contract customer support (“PCS”), and professional services such as consulting and training services. Software products are sold to customers primarily under a term-based software licensing model and to a lesser degree, perpetual software licenses. Software revenue also includes consulting services from product design and development projects. Most term-based software license agreements include the Company’s patented units-based subscription model which allows customers to license a pool of units for their organizations, providing individual users flexible access to the Company’s entire portfolio of software applications as well as to its growing portfolio of partner products. The amount of software usage is limited by the number of the units licensed by the customer. Revenue from these arrangements is fixed (based on the units licensed) and is not based on actual customer usage of each software product. Software product license arrangements may include PCS and professional services, such as consulting and training services, which represent multiple-element arrangements. The Company has analyzed the elements included in its multiple element arrangements and has determined that it does not have vendor-specific objective evidence (“VSOE”) of fair value to allocate revenue to its software products license, PCS, and professional services including consulting and training. For arrangements that have two or more elements such as software, PCS or professional services for which the Company has not established VSOE of fair value, the Company uses the combined services approach to recognize revenue for these transactions. Under the combined services approach, revenue from the software product licenses, including perpetual licenses, PCS and professional services, if applicable, are considered to be one accounting unit and, once the software has been delivered and the provision of each undelivered service has commenced, are recognized ratably over the remaining period of the arrangement which consists of the longer of the PCS period, or the period the professional services are expected to be performed. If the professional services are essential to the functionality of the software products, then revenue recognition does not commence until such services are completed. In transactions with resellers, the Company contracts only with the reseller, in which pricing, length of licenses and support services are agreed upon. The reseller negotiates the price charged and length of licenses and support service directly with its customer. The term-based software license arrangements typically have a duration of 12 months and include PCS, including the right to receive unspecified software upgrades, when and if available during the license term. The Company does not charge separately for PCS. Revenues for software licenses sold on a term-based model are recognized ratably over the term of the license arrangement, once all other revenue recognition criteria have been met. The Company also sells perpetual licenses to its customers. The Company does not have VSOE of fair value for PCS, which is sold along with the perpetual licenses. As a result, revenue from these arrangements is recognized ratably over the initial PCS term. Software related services component Consulting services from product design and development projects are provided to customers on a time-and-materials Client engineering services revenue Client engineering services revenue are derived from professional services for staffing primarily representing engineers located at a customer site. These professional services are provided to customers on a T&M basis. The Company recognizes engineering services revenue for T&M contracts based upon hours worked and contractually agreed-upon hourly rates. Other revenue Other revenue includes product revenue from the sale of LED products for the replacement of fluorescent tubes. Revenue from the sale of LED products for the replacement of fluorescent tubes is recognized when all revenue recognition criteria stated above are met, which is generally when the products are delivered to resellers or to end customers. Sales returns, which reduce revenue and cost of revenue, are estimated using historical experience. |
Cost of Revenue | Cost of revenue Cost of software Cost of software revenue consist of expenses related to software licensing and customer support. Significant expenses include employee related costs for support team members, travel costs, and royalties for third-party software products available to customers through the Company’s products or as part of the Company’s Partner Alliance Program. Cost of client engineering services Cost of engineering services revenue consist primarily of employee compensation costs. Cost of other Cost of other revenue includes the cost of LED lighting products and freight related to products sold to retail and commercial sales channels and third-party royalty expense related to the Company’s WEYV business. |
Deferred Revenue | Deferred revenue Deferred revenue consists of customer billings or payments received in advance of the recognition of revenue and is recognized as revenue when revenue recognition criteria are met. |
Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash The Company considers all highly liquid investments with original or remaining maturities of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Restricted cash is included in other long-term assets on the consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets that sum to the total of the amounts reported in the consolidated statements of cash flows (in thousands): December 31, 2017 2016 Cash and cash equivalents $ 39,213 $ 16,874 Restricted cash included in other long-term assets 365 265 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 39,578 $ 17,139 Restricted cash represents amounts required for a contractual agreement with an insurer for the payment of potential health insurance claims, and term deposits for bank guarantees. |
Accounts Receivable, Net | Accounts receivable, net An allowance for doubtful accounts is recorded when amounts are determined to be uncollectible based on specific identification of customer circumstances, age of the receivable and other available information. Accounts are written off when it becomes apparent that such amounts will not be collected. Generally, the Company does not require collateral or charge interest on accounts receivable. Accounts receivable were reported net of an allowance for doubtful accounts of $0.8 million and $0.6 million at December 31, 2017 and 2016, respectively. Activity in the allowance for doubtful accounts was as follows (in thousands): For the year ended December 31, 2017 2016 2015 Balance, beginning of year $ (565 ) $ (937 ) $ (1,439 ) Provision charged to expense (610 ) (291 ) (145 ) Write-offs, net of recoveries 414 638 536 Effects of foreign currency translation (37 ) 25 111 Balance, end of year $ (798 ) $ (565 ) $ (937 ) |
Concentrations of Credit Risk | Concentrations of credit risk The Company’s financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and trade receivables. The risk with respect to trade receivables is partially mitigated by the diversity, both by geography and by industry, of the Company’s customer base. The Company’s accounts receivable are derived from sales to a large number of direct customers and resellers around the world. Sales to customers within the automotive industry accounted for 50%, 50% and 51%, respectively, of the Company’s 2017, 2016 and 2015 revenue, with no other industry representing more than 10% of revenue. No individual customer accounted for 10% or more of revenue in the years ended December 31, 2017, 2016 or 2015. |
Inventory | Inventory Inventory is stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out Inventory consisted of the following (in thousands): December 31, 2017 2016 Raw materials $ — $ 52 Finished goods 1,980 1,175 Total inventory – net $ 1,980 $ 1,227 |
Property and Equipment, Net | Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation and amortization. Equipment held under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements and assets acquired under capital leases are amortized over the lease term or the estimated useful life of the related asset or improvement, whichever is shorter. Expenditures for maintenance and repairs are charged to expense in the period incurred. Major expenditures for betterments are capitalized when they meet the criteria for capitalization. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized. |
Software Development Costs | Software development costs Software development costs incurred prior to the establishment of technological feasibility are expensed as incurred. Technological feasibility is established upon the completion of a detailed program design. Capitalization of software development costs begins upon the establishment of technological feasibility and ends when the product is available for general release. Generally, the time between the establishment of technological feasibility and commercial release of software is short. As such, all internal software development costs have been expensed as incurred and included in research and development expense in the accompanying consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of long-lived assets Long-lived assets, such as property and equipment, and definite-lived intangible assets, including developed technology, and customer relationships, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company compares the undiscounted future cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment charge is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models and third-party independent appraisals. No impairment losses were recognized in 2017, 2016, or 2015. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and other indefinite-lived intangible assets Goodwill represents the excess of the consideration transferred for an acquired entity over the estimated fair values of the net tangible assets and the identifiable assets acquired. As described in Note 4—Acquisitions, the Company has recorded goodwill in connection with certain acquisitions. Goodwill and other indefinite-lived intangible assets are not amortized, but rather are reviewed for impairment annually or more frequently if facts or circumstances indicate that its carrying value may not be recoverable. The Company has determined that there is one reporting unit with goodwill subject to goodwill impairment testing. An entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount prior to performing the quantitative two-step two-step If the two-step The Company performs its annual impairment review of goodwill in the fourth quarter of each year and when a triggering event occurs between annual impairment dates. For 2017, 2016 and 2015, the Company performed a qualitative assessment of goodwill and determined that it was not more likely than not that the fair value of its reporting unit with goodwill was less than the carrying amounts. Accordingly, the Company determined that its goodwill was not impaired. |
Receivable for R&D Credit | Receivable for R&D credit The French government provides a research and development (“R&D”) tax credit known as Credit Impôt Recherche, or CIR, in order to encourage Companies to invest in R&D. The tax credit is deductible from the French income tax and any excess is carried forward for three years. After three years, any unused credit may be reimbursed to the Company by the French government. As of December 31, 2017, the Company had approximately $10.2 million receivable from the French government related to CIR, of which $3.3 million is recorded in income tax receivable and the remaining $6.9 million is recorded in other long-term assets. CIR is subject to customary audit by the French tax authorities. |
Valuation of Common Stock Prior to IPO | Valuation of common stock prior to IPO Due to the absence of an active market for the Company’s common stock prior to the Company’s IPO in the fourth quarter of 2017, the Board of Directors, with the assistance of a third-party valuation specialist, determined the fair value of the Company’s common stock. The valuation methodology included estimates and assumptions including forecasts of future cash flows that required significant judgments. These valuations considered a number of objective and subjective factors, including the Company’s actual operating and financial performance, external market conditions, performance of comparable publicly traded companies, comparable transactions, business developments, likelihood of achieving a liquidity event, such as an initial public offering or sale, and common stock transactions, among other factors. The Company utilized methodologies in accordance with the framework of the American Institute of Certified Public Accountants’ Technical Practice Aid, Valuation of Privately-Held Company Equity Securities issued as Compensation, |
Derivative Financial Instruments | Derivative financial instruments The Company may use derivative financial instruments, primarily interest rate swap contracts, to hedge its exposure to interest rate risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts during the year are recorded in other expense (income), net in the consolidated statement of operations. Hedge accounting has not been applied. |
Income Taxes | Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent it believes that these assets will more likely than not be realized. These deferred tax assets are subject to periodic assessments as to recoverability and if it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recorded which increase the provision for income taxes. In making such determination, the Company considers all available positive and negative evidence, including historical taxable income, projected future taxable income, the expected timing and reversal of existing temporary differences and tax planning strategies. If based upon the evidence, it is more likely than not that the deferred tax asset will not be realized, a valuation allowance is recorded. A valuation allowance is recognized to reduce deferred tax assets to the amount that management believes is more likely than not to be realized. The Company applies a more-likely-than-not |
Research and Development Costs | Research and development costs Research and development costs are expensed as incurred. Research and development expenses consist primarily of salaries and benefits of research and development employees and costs incurred related to the development of new software products and significant enhancements and engineering changes to existing software products. |
Advertising Costs | Advertising costs Advertising costs are expensed as incurred. Advertising expenses were $3.5 million, $2.5 million and $2.2 million for the years ended December 31, 2017, 2016, and 2015, respectively. |
Mezzanine Equity | Mezzanine equity In 2017, the Company issued 200,000 shares of Class A common stock to a third party as partial consideration for the purchase of developed technology. These shares have a put right that can be exercised by the holder five years from date of purchase at $12.50 per share that requires the shares to be recorded at fair value and classified as mezzanine equity in the consolidated balance sheet. As of December 31, 2017, the Company concluded that it is no longer probable that the put option will be exercised as the put value is substantially below market value and subsequent adjustment is not required. Classification of the of instrument shall remain as mezzanine equity until one of the following three events take place; 1) shares are sold on open market; 2) a redemption feature lapses; or 3) there is a modification of the terms of the instrument. As none of these events have taken place as of December 31, 2017, the classification remains as mezzanine equity. |
Stock-Based Compensation | Stock-based compensation Employee stock-based awards, consisting of stock options expected to be settled by issuing shares of Class A common stock, are recorded as equity awards. The fair value of these awards on the date of grant is measured using the Black-Scholes option pricing model. The Company expenses the grant date fair value of its time-vested stock options subject to graded vesting using the straight-line method over the applicable service period. Employee stock-based awards, which consisted of stock options with repurchase features that allowed them to be settled in cash at a purchase price that was less than the current fair value were considered liability-based awards. These awards were initially recorded at fair value and remeasured to fair value at the end of each reporting period until settled. During the quarter ended June 30, 2017, the Company changed its accounting policy to measure the fair value of its liability awards using the Black-Scholes option pricing model as a result of the Company no longer meeting the definition of a non-public |
Recent Accounting Guidance | Recent accounting guidance Accounting standards adopted The Company adopted Accounting Standards Update, “ASU” No. 2015-11, Inventory: Simplifying the Measurement of Inventory, The Company early adopted ASU No. 2016-09, Employee Share-Based Payment Accounting 2016-09 The Company early adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory 2016-16 The Company early adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, Accounting standards not yet adopted Revenue Recognition No. 2014-09, Revenue from Contracts with Customers 2014-09 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date 2014-09 Under existing GAAP, the Company does not have vendor-specific objective evidence (“VSOE”) of fair value for post-contract customer support (“PCS”) sold along with software products licenses; therefore, revenues for the software products licenses (including perpetual licenses), PCS and professional services, if applicable, are considered to be one accounting unit and, once all services have commenced, are recognized ratably over the remaining period of the arrangement (the longer of the contractual service term or PCS term). Under ASU 2014-09, 2014-09 Financial Instruments No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities 2016-01 2016-01 Leases No. 2016-02, Leases (Topic 842) right-of-use 2016-02 2016-02 2016-02 Cash Classification No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 2016-15 No. 2016-15 Goodwill Impairment No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 2017-04 Retirement Benefits 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. 2017-07 Stock Compensation 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. No. 2017-09 Derivatives and Hedging 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. |
Fair Value Measurements | The accounting guidance for fair value, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The framework for measuring fair value consists of a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1— Quoted prices in active markets for identical assets and liabilities at the measurement date; Level 2— Observable inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3— Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets that sum to the total of the amounts reported in the consolidated statements of cash flows (in thousands): December 31, 2017 2016 Cash and cash equivalents $ 39,213 $ 16,874 Restricted cash included in other long-term assets 365 265 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 39,578 $ 17,139 |
Schedule of Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts was as follows (in thousands): For the year ended December 31, 2017 2016 2015 Balance, beginning of year $ (565 ) $ (937 ) $ (1,439 ) Provision charged to expense (610 ) (291 ) (145 ) Write-offs, net of recoveries 414 638 536 Effects of foreign currency translation (37 ) 25 111 Balance, end of year $ (798 ) $ (565 ) $ (937 ) |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, 2017 2016 Raw materials $ — $ 52 Finished goods 1,980 1,175 Total inventory – net $ 1,980 $ 1,227 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in the Fair Value of Company's Level 3 Financial Liabilities | The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities (in thousands): Liability for Class A redeemable Liability for Balance at December 31, 2015 6,692 11,033 Shares issued upon exercise of stock options 1,841 — Repurchase of shares (79 ) — Exercise of stock options — (2,084 ) Forfeitures of stock options — (110 ) Change in fair value 2,178 2,765 Balance at December 31, 2016 10,632 11,604 Exercise of stock options 432 (411 ) Forfeitures of stock options — (157 ) Change in fair value 19,223 25,191 Modification to stock options as a result of the Company’s IPO (1) (30,287 ) (36,227 ) Balance at December 31, 2017 $ — $ — (1) As a result of the Company’s IPO in the fourth quarter of 2017, the call feature terminated which resulted in the $66.5 million liability valued immediately prior to the IPO associated with the Company’s Class A redeemable common shares and with the stock options outstanding under the 2001 ISO and NQSO Plan to be reclassified to equity in the fourth quarter of 2017 in accordance with ASC 718. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Runtime [Member] | |
Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date | The following table summarizes the consideration transferred to acquire Runtime and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 25,691 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash 564 Accounts receivable 2,257 Deferred tax assets 1,713 Other assets 257 Trade names 440 Developed technology (4-year 7,870 Customer relationships (7-year 2,490 Accounts payable and other liabilities (1,000 ) Deferred revenue (1,925 ) Deferred tax liabilities (4,454 ) Total net identifiable assets acquired and liabilities assumed 8,212 Goodwill $ 17,479 |
Carriots [Member] | |
Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date | The following table summarizes the consideration transferred to acquire Carriots and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 6,657 Recognized amounts of identifiable assets acquired and liabilities assumed: Deferred tax assets 394 Other assets 472 Trade names 252 Developed technology (4-year 1,317 Customer relationships (7-year 296 Accounts payable and other liabilities (1,015 ) Total net identifiable assets acquired and liabilities assumed 1,716 Goodwill $ 4,941 |
CEDRAT [Member] | |
Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date | The following table summarizes the consideration transferred to acquire CEDRAT and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): Fair value of consideration transferred $ 5,122 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash $ 363 Accounts receivable 542 Income tax receivable 995 Other assets 206 Trade names 269 Developed technology (4-year 1,085 Customer relationships (7-year 938 Accounts payable and other liabilities (2,742 ) Deferred revenue (290 ) Total net identifiable assets acquired and liabilities assumed 1,366 Goodwill (1) $ 3,756 (1) The goodwill included $3.5 million that was tax deductible. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following (in thousands): Estimated December 31, 2017 2016 Land Indefinite $ 7,994 $ 7,994 Building and improvements 5-39 years 15,185 14,956 Computer equipment and software 3-5 32,103 27,461 Office furniture and equipment 5-15 6,751 5,306 Leasehold improvements (1) 6,467 5,397 Total property and equipment 68,500 (2) 61,114 (2) Less: accumulated depreciation and amortization 37,054 31,406 Property and equipment, net $ 31,446 $ 29,708 (1) Shorter of lease term or estimated useful life, generally ranging from five to ten years. (2) Equipment under capital lease obligations had an original carrying value of approximately $1.1 million and $1.4 million at December 31, 2017 and 2016, respectively. |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill Attributable to Software Reporting Segment | The changes in the carrying amount of goodwill, which is attributable to the Software reporting segment, are as follows (in thousands): Balance at December 31, 2014 $ 28,859 Acquisitions 2,897 Effects of foreign currency translation (2,516 ) Balance at December 31, 2015 29,240 Acquisitions 7,855 Effects of foreign currency translation (470 ) Balance at December 31, 2016 36,625 Acquisitions 22,420 Effects of foreign currency translation 3,661 Balance at December 31, 2017 $ 62,706 |
Summary of Other Intangible Assets | A summary of other intangible assets is shown below (in thousands): December 31, 2017 Weighted Gross Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 years $ 25,947 $ 9,909 $ 16,038 Customer relationships 7 years 11,794 6,195 5,599 Noncompete agreements 5 years 824 824 — Other intangibles 10 years 143 57 86 Total definite-lived intangible assets 38,708 16,985 21,723 Indefinite-lived intangible assets: Trade names 2,738 2,738 Total other intangible assets $ 41,446 $ 16,985 $ 24,461 December 31, 2016 Weighted Gross Accumulated Net carrying Definite-lived intangible assets: Developed technology 4 years $ 10,631 $ 5,034 $ 5,597 Customer relationships 7 years 8,646 4,977 3,669 Noncompete agreements 5 years 824 824 — Other intangibles 10 years 117 40 77 Total definite-lived intangible assets 20,218 10,875 9,343 Indefinite-lived intangible assets: Trade names 1,825 1,825 Total other intangible assets $ 22,043 $ 10,875 $ 11,168 |
Summary of Estimated Amortization Expense | Estimated amortization expense for the next five years as of December 31, 2017 is as follows (in thousands): Year ending December 31, 2018 $ 6,692 December 31, 2019 $ 5,653 December 31, 2020 $ 5,015 December 31, 2021 $ 2,931 December 31, 2022 $ 639 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Debt | The carrying value of debt is as follows (in thousands): December 31, 2017 2016 Prior Credit Agreement: Revolving Credit Facility $ — $ 27,355 Term Loan A — 57,500 Obligations held under capital leases (Note 18) 207 196 Other borrowings 203 330 Total debt 410 85,381 Less: unamortized debt issuance costs — 140 Less: current portion of long-term debt 232 10,435 Long-term debt, net of current portion $ 178 $ 74,806 |
Scheduled Maturities of Long Term Debt | At December 31, 2017, future maturities of long-term debt, excluding capital leases, were as follows (in thousands): Year ending December 31, 2018 $ 126 2019 77 2020 — 2021 — 2022 — Total $ 203 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Accrued Expenses and Current Liabilities | The following table provides the details of other accrued expenses and current liabilities (in thousands): December 31, 2017 2016 Accrued VAT $ 3,916 $ 3,928 Income taxes payable 3,724 2,156 Accrued professional fees 2,500 1,389 Accrued royalties 2,037 1,583 Non-income 1,343 739 Defined contribution plan liabilities 1,274 1,139 Billings in excess of cost 832 1,021 Related party liabilities 119 1,045 Other current liabilities 5,999 3,296 Total $ 21,744 $ 16,296 |
Summary of Other Long-term Liabilities | The following table provides the details of other long-term liabilities (in thousands): December 31, 2017 2016 Pension and other post retirement liabilities $ 7,670 $ 5,959 Deferred tax liabilities 1,620 1,379 Other liabilities 8,357 9,776 Total $ 17,647 $ 17,114 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Weighted Average Assumptions to Calculate Fair Value of Options Granted | The weighted average assumptions used in the Black-Scholes option pricing model used to calculate the fair value of options granted during the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 grants 2016 grants 2015 grants Weighted average grant date fair value per share $ 1.86-$1.94 $ 1.42-$1.65 $ 1.43 Expected volatility 34% 37% 37% Expected term (in years) 5.75-6.25 5.75-6.25 6.25 Risk-free interest rate 2.02% 1.37%-1.79% 1.98% Expected dividend yield 0% 0% 0% |
Summary of Stock-Based Compensation Expense | The stock-based compensation expense was recorded as follows (in thousands): Year ended December 31, 2017 2016 2015 Cost of revenue-software $ 350 $ 22 $ 44 Research and development 12,540 1,370 149 Sales and marketing 7,693 775 109 General and administrative 26,698 2,965 295 Total stock-based compensation expense $ 47,281 $ 5,132 $ 597 |
NSO Plan [Member] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the NSO Plan: Number of options Weighted average per share Weighted average Outstanding at January 1, 2017 6,458,472 $ 0.000025 20 years Granted — — Exercised (16,500 ) $ — Forfeited — $ — Outstanding at December 31, 2017 6,441,972 $ 0.000025 19 years Exercisable at December 31, 2017 6,441,972 $ 0.000025 19 years |
ISO Plan [Member] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the 2001 Stock-based compensation plans for the periods indicated as follows: Number of Weighted Weighted Outstanding at January 1, 2017 2,972,744 $ 0.64 3.4 Granted — — Exercised (1) (2,070,916 ) $ 0.63 Forfeited (12,964 ) $ 0.53 Outstanding at December 31, 2017 888,864 $ 0.67 2.5 Exercisable at December 31, 2017 888,864 $ 0.67 2.5 (1) Includes 1.7 million stock options exercised in connection with the Company’s IPO. |
2012 Plan [Member] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the 2012 Plan for the periods indicated as follows: Number of Weighted Weighted Outstanding at January 1, 2017 1,797,252 $ 3.13 7.5 Granted 608,948 $ 5.18 Exercised (189,492 ) $ 2.60 Forfeited (33,581 ) $ 3.89 Outstanding at December 31, 2017 2,183,127 $ 3.74 7.3 Exercisable at December 31, 2017 1,240,692 $ 3.01 6.2 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense (Income), Net | Other expense (income), net consists of the following (in thousands): Year ended December 31, 2017 2016 2015 Foreign exchange (gain) loss $ 1,254 $ (271 ) $ 973 Other (260 ) (249 ) (191 ) Other expense (income), net $ 994 $ (520 ) $ 782 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Income Before Income Taxes | The components of (loss) income before income taxes are as follows (in thousands): Year ended December 31, 2017 2016 2015 U.S. $ (49,761 ) $ (2,225 ) $ (6,861 ) Non-U.S. 13,350 15,927 18,610 $(36,411) $13,702 $11,749 |
Schedule of Significant Components of Income Tax Expense | The significant components of the income tax expense are as follows (in thousands): Year ended December 31, 2017 2016 2015 Current U.S. Federal $ — $ — $ — Non-U.S. 10,290 9,413 9,893 U.S. State and Local 135 202 56 Total current 10,425 9,615 9,949 Deferred U.S. Federal 54,130 (5,358 ) (8,445 ) Non-U.S. (1,306 ) (610 ) (587 ) U.S. State and Local (253 ) (108 ) (99 ) Total deferred 52,571 (6,076 ) (9,131 ) Income tax expense $ 62,996 $ 3,539 $ 818 |
Reconciliation of Income Taxes Calculated at U.S. Federal Statutory Income Tax Rate | The reconciliation of income taxes calculated at the U.S. Federal statutory income tax rate of 35% to income tax expense is as follows (in thousands): Year ended December 31, 2017 2016 2015 Income taxes at U.S. federal statutory rate $ (12,744 ) $ 4,796 $ 4,117 Foreign income taxes at rates other than the federal statutory rate 373 (584 ) (10 ) U.S. state and local income taxes, net of U.S. federal tax benefit (155 ) 94 (47 ) U.S. Tax Cut and Jobs Act: transition tax, net of foreign tax credits 4,187 — — Change in valuation allowance 47,429 — — Foreign withholding taxes 4,181 4,235 3,790 Foreign dividends — 5,077 4,152 U.S. foreign tax credit (4,154 ) (8,786 ) (9,808 ) Research and development tax credit (2,999 ) (2,696 ) (1,608 ) Domestic production activities deduction — (840 ) (833 ) Non-deductible 10,871 2,064 234 Meals & entertainment 358 235 258 Other (163 ) (91 ) 125 Deferred tax on investment in subsidiary — (264 ) (214 ) Uncertain tax position 446 299 662 Tax law changes 15,366 — — Income tax expense $ 62,996 $ 3,539 $ 818 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statements purposes. The approximate tax effect of each type of temporary difference, and operating losses and tax credit carryforwards that give rise to a significant portion of the deferred tax assets and liabilities are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Deferred revenue $ 19,569 $ 16,966 Net operating loss carryforwards 7,601 3,550 Tax credit carryforwards 22,191 17,839 Stock-based compensation 8,922 15,825 Capitalized research and development 8,798 12,492 Accrued expenses 648 1,775 Employee benefits 3,931 3,995 Other 1,905 2,527 Total gross deferred tax assets 73,565 74,969 Less: valuation allowances (54,331 ) (4,153 ) Net deferred tax assets (1) 19,234 70,816 Deferred tax liabilities: Prepaid royalties 6,925 5,821 Property and equipment and intangibles 4,567 2,394 Deferred tax on investment in subsidiary 272 272 Other 739 812 Total deferred tax liabilities 12,503 9,299 Total net deferred tax assets $ 6,731 $ 61,517 (1) Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities. |
Summary of Changes to Valuation Allowance Balance | The following table summarizes the changes to the valuation allowance balance at December 31, 2017, 2016 and 2015 (in thousands): December 31, 2017 2016 2015 Beginning balance $ 4,153 $ 2,452 $ 2,858 Additions charged to expense 47,429 177 — Deductions — (207 ) (270 ) Other 2,749 1,731 (136 ) Ending balance $ 54,331 $ 4,153 $ 2,452 |
Summary of Tax Credit Carryforwards | The following table summarizes the amount and expiration dates of operating loss and tax credit carryforwards at December 31, 2017 (in thousands): Expiration dates Amounts U.S. general business credits and loss carryforwards 2018-2037 $ 24,564 Foreign loss carryforwards indefinite 2,879 U.S. foreign tax credits 2027 2,349 Total operating loss and tax credit carryforwards $ 29,792 |
Summary of Operating Loss Carryforwards | The following table summarizes the amount and expiration dates of operating loss and tax credit carryforwards at December 31, 2017 (in thousands): Expiration dates Amounts U.S. general business credits and loss carryforwards 2018-2037 $ 24,564 Foreign loss carryforwards indefinite 2,879 U.S. foreign tax credits 2027 2,349 Total operating loss and tax credit carryforwards $ 29,792 |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year ended December 31, 2017 2016 2015 Unrecognized tax benefits—January 1 $ 5,604 $ 5,305 $ 4,712 Increase in unrecognized tax benefits as a result of: Additions for tax positions of current period 634 299 826 Reductions for tax positions of prior periods (81 ) — (233 ) Unrecognized tax benefits—December 31 $ 6,157 $ 5,604 $ 5,305 |
(Loss) Income Per Share (Tables
(Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Numerators and Denominators Used Basic and Diluted (Loss) Income Per Share Amounts | The following table sets forth the computation of the numerators and denominators used in the basic and diluted (loss) income per share amounts (in thousands, except per share data): Year ended December 31, 2017 2016 2015 Numerator: Net (loss) income $ (99,407 ) $ 10,163 $ 10,931 Denominator: Denominator for basic (loss) income per share—weighted average shares 52,466 48,852 46,609 Effect of dilutive securities, stock options — 9,004 12,100 Denominator for dilutive (loss) income per share 52,466 57,856 58,709 Net (loss) income per share attributable to common stockholders, basic $ (1.89 ) $ 0.21 $ 0.23 Net (loss) income per share attributable to common stockholders, diluted $ (1.89 ) $ 0.18 $ 0.19 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Benefits Obligation Recorded in Consolidated Balance Sheets | A summary of the components of the pension benefits obligation recorded in the consolidated balance sheets are as follows (in thousands): December 31, 2017 2016 Accrued compensation and benefits $ 368 $ 332 Other long-term liabilities 7,670 5,959 $ 8,038 $ 6,291 |
Schedule of Estimated Future Benefit Payments | The estimated future benefit payments, which reflect expected future service, that are expected to be paid for each of the next five years are as follows (in thousands): Year ending December 31, 2018 $ 393 December 31, 2019 $ 282 December 31, 2020 $ 342 December 31, 2021 $ 211 December 31, 2022 $ 261 Next five years $ 2,217 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows (in thousands): Foreign Retirement Total Balance at December 31, 2014 $ (3,631 ) $ (710 ) $ (4,341 ) Other comprehensive loss before reclassification (3,068 ) (217 ) (3,285 ) Tax effects 953 (36 ) 917 Other comprehensive loss (2,115 ) (253 ) (2,368 ) Less: Other comprehensive income (loss) attributable to noncontrolling interest (1 ) — (1 ) Balance at December 31, 2015 (5,745 ) (963 ) (6,708 ) Other comprehensive loss before reclassification 80 (771 ) (691 ) Tax effects (60 ) 195 135 Other comprehensive income (loss) 20 (576 ) (556 ) Balance at December 31, 2016 (5,725 ) (1,539 ) (7,264 ) Other comprehensive income (loss) before reclassification 2,351 (213 ) 2,138 Amounts reclassified from accumulated other comprehensive loss — 54 54 Tax effects — — — Other comprehensive income (loss) 2,351 (159 ) 2,192 Balance at December 31, 2017 $ (3,374 ) $ (1,698 ) $ (5,072 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Noncancelable Operating Leases | The future minimum annual lease payments under noncancelable operating leases with an initial term in excess of one year and future minimum capital lease payments at December 31, 2017, are as follows (in thousands): Capital Operating Year Ending December 31, 2018 $ 106 $ 8,946 2019 60 6,919 2020 36 4,797 2021 5 2,892 2022 — 1,933 Thereafter — 2,367 Total minimum lease payments 207 $ 27,854 Less: current installments under capital lease obligations 106 Total long-term portion $ 101 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables are in thousands: Year ended December 31, 2017 Software CES All other Total Revenue $ 280,214 $ 46,510 $ 6,609 $ 333,333 Adjusted EBITDA $ 22,864 $ 4,966 $ (5,313 ) $ 22,517 Year ended December 31, 2016 Software CES All other Total Revenue $ 259,588 $ 47,702 $ 5,950 $ 313,240 Adjusted EBITDA $ 29,411 $ 5,425 $ (4,006 ) $ 30,830 Year ended December 31, 2015 Software CES All other Total Revenue $ 242,861 $ 45,075 $ 6,193 $ 294,129 Adjusted EBITDA $ 23,149 $ 4,776 $ (4,976 ) $ 22,949 |
Reconciliation of U.S. Gaap (Loss) Income Before Income Taxes to Adjusted EBITDA | Year ended December 31, 2017 2016 2015 Reconciliation of Adjusted EBITDA to GAAP (Loss) income before income taxes: Adjusted EBITDA $ 22,517 $ 30,830 $ 22,949 Stock-based compensation expense (47,281 ) (5,132 ) (597 ) Interest expense (2,160 ) (2,265 ) (2,416 ) Interest income and other (1) 2,260 249 191 Depreciation and amortization (11,747 ) (9,980 ) (8,378 ) (Loss) income before income taxes $ (36,411 ) $ 13,702 $ 11,749 (1) Includes a non-recurring |
Summary of Sales to External Customers and Long-Lived Assets by Geographical Areas | Revenue is attributed to geographic areas based on the country of origin. The following table provides sales to external customers and long-lived assets for each of the geographic areas in which the Company operates (in thousands): Revenue Long-lived assets (1) Year ended December 31, December 31, 2017 2016 2015 2017 2016 United States $ 142,679 $ 139,079 $ 130,791 $ 38,729 $ 25,901 Other countries 6,404 6,032 4,841 116 120 Total Americas 149,083 145,111 135,632 38,845 26,021 Germany 43,751 39,470 37,549 2,802 2,660 France 18,128 15,729 14,057 2,176 2,175 Other countries 40,050 34,909 35,933 4,534 4,317 Total Europe, Middle East and Africa 101,929 90,108 87,539 9,512 9,152 Japan 33,686 33,198 26,795 2,237 879 Other countries 48,635 44,823 44,163 2,574 2,999 Total Asia Pacific 82,321 78,021 70,958 4,811 3,878 Total $ 333,333 $ 313,240 $ 294,129 $ 53,168 $ 39,051 (1) Includes property and equipment, net and definite-lived intangible assets, net. |
Supplemental Quarterly Financ46
Supplemental Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following tables set forth selected unaudited quarterly information. The information for each of these quarters has been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, includes all adjustments, which consist only of normal recurring adjustments, necessary for the fair presentation of the results of operations for these periods in accordance with GAAP. This data should be read in conjunction with the Company’s audited consolidated financial statements and related notes. These quarterly operating results are not necessarily indicative of the Company’s operating results for a full year or any future period. Three months ended (in thousands, except per share data) March 31, June 30, September 30, December 31, Total revenue $ 76,882 $ 81,646 $ 84,938 $ 89,867 Gross profit $ 50,128 $ 54,728 $ 58,636 $ 63,250 Operating loss $ (1,990 ) $ (7,158 ) $ (20,928 ) $ (3,181 ) Net loss $ (2,188 ) $ (7,246 ) $ (29,626 ) $ (60,347 ) Loss per share, basic $ (0.04 ) $ (0.14 ) $ (0.59 ) $ (1.03 ) Loss per share, diluted $ (0.04 ) $ (0.14 ) $ (0.59 ) $ (1.03 ) Three months ended (in thousands, except per share data) March 31, June 30, September 30, December 31, Total revenue $ 74,829 $ 77,511 $ 78,052 $ 82,848 Gross profit $ 49,411 $ 52,171 $ 52,431 $ 56,627 Operating income $ 3,632 $ 3,615 $ 224 $ 7,976 Net income $ 1,481 $ 2,472 $ 314 $ 5,896 Earnings per share, basic $ 0.03 $ 0.05 $ 0.01 $ 0.12 Earnings per share, diluted $ 0.03 $ 0.04 $ 0.01 $ 0.10 |
Description of Business - Addit
Description of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Aggregate proceeds from IPO | $ 119,268 | |
IPO [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Entity incorporation state | Delaware | |
Number of shares issued and sold | 9,865,004 | |
Price per share | $ 13 | |
Aggregate proceeds from IPO | $ 119,300 | |
Stock issuance, offering costs | $ 4,800 | |
Number of shares of common stock sold | 3,934,996 | |
IPO [Member] | Class A Common Stock [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Shares issued upon conversion | 2,200,000 | |
IPO [Member] | Class A Common Stock [Member] | Chief Executive Officer [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of stock options exercised | 1,734,996 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Additional Information (Detail) | Oct. 05, 2017$ / sharesshares | Apr. 03, 2017shares | Jun. 30, 2017$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Accounting Policies [Line Items] | |||||||
Stock split ratio | 4 | ||||||
Common stock, par value | $ / shares | $ 0.0001 | ||||||
Common stock conversion description | On October 5, 2017, the Company became a Delaware corporation and effected a four-for-one stock split of its common stock. On the effective date of the Company becoming a Delaware corporation, (i) each share of outstanding common stock was increased to four shares of common stock, par value $0.0001 per share, (ii) the number of shares of common stock issuable under each outstanding option to purchase common stock was increased on a four-for-one basis, (iii) the exercise price of each outstanding option to purchase common stock was reduced on a four-for-one basis, and (iv) the redemption price of each outstanding put option was reduced on a four-for-one basis. All share and per share information referenced throughout the consolidated financial statements and notes thereto have been retroactively adjusted to reflect this stock split. | ||||||
Software license arrangement term | 12 months | ||||||
Allowance for doubtful accounts | $ | $ 798,000 | $ 565,000 | $ 937,000 | $ 1,439,000 | |||
Number of individual customer accounted for 10% or more of revenue | 0 | 0 | 0 | ||||
Impairment losses | $ | $ 0 | $ 0 | $ 0 | ||||
Advertising expenses | $ | $ 3,500,000 | $ 2,500,000 | $ 2,200,000 | ||||
Ministry of the Economy, Finance and Industry, France [Member] | Research and Development Tax Credit Carryforward [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Tax credit carryforward, period | 3 years | ||||||
Tax credit carryforward | $ | $ 10,200,000 | ||||||
Income tax receivable [Member] | Ministry of the Economy, Finance and Industry, France [Member] | Research and Development Tax Credit Carryforward [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Tax credit carryforward | $ | 3,300,000 | ||||||
Other long-term assets [Member] | Ministry of the Economy, Finance and Industry, France [Member] | Research and Development Tax Credit Carryforward [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Tax credit carryforward | $ | $ 6,900,000 | ||||||
Preferred Stock [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Capital units authorized | shares | 45,000,000 | ||||||
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Automotive Industry [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Concentration of credit risk, percentage | 50.00% | 50.00% | 51.00% | ||||
Class B Common Stock [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Common stock conversion | shares | 2,495,752 | 1 | |||||
Capital units authorized | shares | 41,203,428 | 41,203,428 | |||||
Class B Common Stock [Member] | Maximum [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Percentage of stock held by holders | 3.00% | ||||||
Class A Common Stock [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Common stock conversion | shares | 1 | ||||||
Capital units authorized | shares | 513,796,572 | 513,796,572 | |||||
Put right exercise period from date of purchase | 5 years | ||||||
Class A Common Stock [Member] | Put Option [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Shares issued | shares | 200,000 | ||||||
Put right, exercise price | $ / shares | $ 12.50 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 39,213 | $ 16,874 | ||
Restricted cash included in other long-term assets | 365 | 265 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 39,578 | $ 17,139 | $ 14,013 | $ 17,541 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||
Balance, beginning of year | $ (565) | $ (937) | $ (1,439) |
Provision charged to expense | (610) | (291) | (145) |
Write-offs, net of recoveries | 414 | 638 | 536 |
Effects of foreign currency translation | (37) | 25 | 111 |
Balance, end of year | $ (798) | $ (565) | $ (937) |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 52 | |
Finished goods | $ 1,980 | 1,175 |
Total inventory - net | $ 1,980 | $ 1,227 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in the Fair Value of Company's Level 3 Financial Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Class A Redeemable Common Shares [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 10,632 | $ 6,692 |
Shares issued upon exercise of stock options | 1,841 | |
Repurchase of shares | (79) | |
Exercise of stock options | 432 | |
Change in fair value | 19,223 | 2,178 |
Modification to stock options as a result of the Company's IPO | (30,287) | |
Ending Balance | 10,632 | |
Liability for Stock-Based Compensation Awards [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 11,604 | 11,033 |
Exercise of stock options | (411) | (2,084) |
Forfeitures of stock options | (157) | (110) |
Change in fair value | 25,191 | 2,765 |
Modification to stock options as a result of the Company's IPO | $ (36,227) | |
Ending Balance | $ 11,604 |
Fair Value Measurements - Sum53
Fair Value Measurements - Summary of Changes in the Fair Value of Company's Level 3 Financial Liabilities (Parenthetical) (Detail) - Liability for Class A Redeemable Common Shares [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Financial liabilities | $ 10,632 | $ 6,692 | |
2001 ISO and NQSO Plan [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Financial liabilities | $ 66,500 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Sep. 28, 2017 | May 31, 2017 | Apr. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||
Business acquisition, cash paid | $ 15,582,000 | $ 6,499,000 | $ 2,757,000 | ||||
Goodwill | $ 62,706,000 | 36,625,000 | 29,240,000 | $ 28,859,000 | |||
Runtime [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, percentage of interest acquired | 100.00% | ||||||
Business acquisition, cash paid | $ 19,400,000 | ||||||
Business acquisition, notes payable | 9,400,000 | ||||||
Business acquisition, working capital adjustment | 700,000 | ||||||
Fair value of consideration transferred | 25,691,000 | ||||||
Goodwill | $ 17,479,000 | ||||||
Runtime [Member] | Class A Common Stock [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, shares issued | 708,000 | ||||||
Carriots [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, percentage of interest acquired | 100.00% | ||||||
Business acquisition, cash paid | $ 3,600,000 | ||||||
Business acquisition, notes payable | 2,700,000 | ||||||
Fair value of consideration transferred | 6,657,000 | ||||||
Goodwill | $ 4,941,000 | ||||||
Carriots [Member] | Class A Common Stock [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, shares issued | 80,000 | ||||||
CEDRAT [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, cash paid | $ 3,700,000 | ||||||
Business acquisition, notes payable | 1,400,000 | ||||||
Fair value of consideration transferred | 5,122,000 | ||||||
Goodwill | 3,756,000 | ||||||
Goodwill deductible for tax purposes | $ 3,500,000 | ||||||
2016 Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, cash paid | 3,100,000 | ||||||
Business acquisition, notes payable | 2,900,000 | ||||||
Fair value of consideration transferred | 6,000,000 | ||||||
Intangibles | 2,300,000 | ||||||
Goodwill | 4,100,000 | ||||||
Goodwill deductible for tax purposes | $ 0 | ||||||
2015 Acquisitions [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, cash paid | 2,900,000 | ||||||
Business acquisition, notes payable | 800,000 | ||||||
Fair value of consideration transferred | 4,400,000 | ||||||
Intangibles | 1,900,000 | ||||||
Goodwill | 2,900,000 | ||||||
Goodwill deductible for tax purposes | 1,000,000 | ||||||
Business acquisition, equity payable | $ 700,000 |
Acquisitions - Summary of Amoun
Acquisitions - Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date (Detail) - USD ($) $ in Thousands | Sep. 28, 2017 | May 31, 2017 | Apr. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Goodwill | $ 62,706 | $ 36,625 | $ 29,240 | $ 28,859 | |||
Runtime [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of consideration transferred | $ 25,691 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Cash | 564 | ||||||
Accounts receivable | 2,257 | ||||||
Deferred tax assets | 1,713 | ||||||
Other assets | 257 | ||||||
Accounts payable and other liabilities | (1,000) | ||||||
Deferred revenue | (1,925) | ||||||
Deferred tax liabilities | (4,454) | ||||||
Total net identifiable assets acquired and liabilities assumed | 8,212 | ||||||
Goodwill | 17,479 | ||||||
Runtime [Member] | Trade Names [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Indefinite-lived intangibles | 440 | ||||||
Runtime [Member] | Developed Technology [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Finite-lived intangibles | 7,870 | ||||||
Runtime [Member] | Customer Relationships [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Finite-lived intangibles | $ 2,490 | ||||||
Carriots [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of consideration transferred | $ 6,657 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Deferred tax assets | 394 | ||||||
Other assets | 472 | ||||||
Accounts payable and other liabilities | (1,015) | ||||||
Total net identifiable assets acquired and liabilities assumed | 1,716 | ||||||
Goodwill | 4,941 | ||||||
Carriots [Member] | Trade Names [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Indefinite-lived intangibles | 252 | ||||||
Carriots [Member] | Developed Technology [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Finite-lived intangibles | 1,317 | ||||||
Carriots [Member] | Customer Relationships [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Finite-lived intangibles | $ 296 | ||||||
CEDRAT [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of consideration transferred | $ 5,122 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Cash | 363 | ||||||
Accounts receivable | 542 | ||||||
Income tax receivable | 995 | ||||||
Other assets | 206 | ||||||
Accounts payable and other liabilities | (2,742) | ||||||
Deferred revenue | (290) | ||||||
Total net identifiable assets acquired and liabilities assumed | 1,366 | ||||||
Goodwill | 3,756 | ||||||
CEDRAT [Member] | Trade Names [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Indefinite-lived intangibles | 269 | ||||||
CEDRAT [Member] | Developed Technology [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Finite-lived intangibles | 1,085 | ||||||
CEDRAT [Member] | Customer Relationships [Member] | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Finite-lived intangibles | $ 938 |
Acquisitions - Summary of Amo56
Acquisitions - Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 28, 2017 | May 31, 2017 | Apr. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
CEDRAT [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill deductible for tax purposes | $ 3.5 | ||||
Developed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 4 years | 4 years | |||
Developed Technology [Member] | Runtime [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 4 years | ||||
Developed Technology [Member] | Carriots [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 4 years | ||||
Developed Technology [Member] | CEDRAT [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 4 years | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 7 years | 7 years | |||
Customer Relationships [Member] | Runtime [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 7 years | ||||
Customer Relationships [Member] | Carriots [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 7 years | ||||
Customer Relationships [Member] | CEDRAT [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted-average useful life of acquired finite-lived intangible assets | 7 years |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 68,500 | $ 61,114 |
Less: accumulated depreciation and amortization | 37,054 | 31,406 |
Property and equipment, net | $ 31,446 | 29,708 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | Indefinite | |
Total property and equipment | $ 7,994 | 7,994 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 15,185 | 14,956 |
Building and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Building and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 39 years | |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 32,103 | 27,461 |
Computer Equipment and Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 3 years | |
Computer Equipment and Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 6,751 | 5,306 |
Office Furniture and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Office Furniture and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 15 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 6,467 | $ 5,397 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 10 years |
Property and Equipment, Net -58
Property and Equipment, Net - Summary of Property and Equipment (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful life | 10 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Carrying value of equipment under capital lease obligation | $ 1.1 | $ 1.4 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Purchase of property, plant and equipment | $ 4 | |||
Depreciation expense, including amortization of assets under capital lease | $ 6.3 | $ 6.7 | $ 5.8 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill Attributable to Software Reporting Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Beginning Balance | $ 36,625 | $ 29,240 | $ 28,859 |
Acquisitions | 22,420 | 7,855 | 2,897 |
Effects of foreign currency translation | 3,661 | (470) | (2,516) |
Ending Balance | $ 62,706 | $ 36,625 | $ 29,240 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | $ 41,446 | $ 22,043 |
Accumulated amortization | 16,985 | 10,875 |
Net carrying amount | 24,461 | 11,168 |
Gross carrying amount | 38,708 | 20,218 |
Accumulated amortization | 16,985 | 10,875 |
Net carrying amount | $ 21,723 | $ 9,343 |
Developed Technology [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 4 years | 4 years |
Gross carrying amount | $ 25,947 | $ 10,631 |
Accumulated amortization | 9,909 | 5,034 |
Net carrying amount | $ 16,038 | $ 5,597 |
Customer Relationships [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 7 years | 7 years |
Gross carrying amount | $ 11,794 | $ 8,646 |
Accumulated amortization | 6,195 | 4,977 |
Net carrying amount | $ 5,599 | $ 3,669 |
Noncompete Agreements [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 5 years | 5 years |
Gross carrying amount | $ 824 | $ 824 |
Accumulated amortization | $ 824 | $ 824 |
Other Intangibles [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Weighted-average useful life of acquired finite-lived intangible assets | 10 years | 10 years |
Gross carrying amount | $ 143 | $ 117 |
Accumulated amortization | 57 | 40 |
Net carrying amount | 86 | 77 |
Trade Names [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Net carrying amount | $ 2,738 | $ 1,825 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 5,448 | $ 3,322 | $ 2,624 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
December 31, 2018 | $ 6,692 |
December 31, 2019 | 5,653 |
December 31, 2020 | 5,015 |
December 31, 2021 | 2,931 |
December 31, 2022 | $ 639 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 410 | $ 85,381 |
Less: unamortized debt issuance costs | 140 | |
Less: current portion of long-term debt | 232 | 10,435 |
Long-term debt, net of current portion | 178 | 74,806 |
Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 57,500 | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 207 | 196 |
Other Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 203 | 330 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 27,355 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Nov. 03, 2017 | Oct. 19, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 18, 2017 |
Debt Instrument [Line Items] | ||||||
Payments on long-term debt | $ 59,869,000 | $ 16,232,000 | $ 15,950,000 | |||
Overdraft and Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount available under secured credit agreement | 3,500,000 | 3,500,000 | ||||
Loan outstanding | 0 | 0 | ||||
Secured Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments on long-term debt | $ 93,100,000 | |||||
Secured Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan outstanding | 0 | |||||
Amount available for future borrowing | 100,000,000 | |||||
Secured Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Term Loan A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount available under secured credit agreement | $ 65,000,000 | |||||
Loan outstanding | $ 57,500,000 | |||||
Interest rate | 2.60% | |||||
Quarterly principal payments | $ 2,500,000 | |||||
Maturity date | Apr. 18, 2019 | |||||
Frequency of periodic payment | Quarterly | |||||
Secured Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount available under secured credit agreement | 60,000,000 | |||||
Loan outstanding | $ 27,400,000 | |||||
Amount available for future borrowing | $ 32,600,000 | |||||
Termination date | 2019-04 | |||||
Weighted-average interest rate | 2.60% | |||||
Secured Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Revolving Credit Facility [Member] | Swingline Subfacility and Letter of Credit Subfacility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount available under secured credit agreement | $ 5,000,000 | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate commitment amount under credit facility | $ 100,000,000 | |||||
Maturity date | Oct. 18, 2022 | |||||
Amount available under secured credit agreement | $ 150,000,000 | |||||
Increase in line of credit borrowing capacity | $ 50,000,000 | |||||
Maximum leverage ratio | 3.00% | |||||
Increase in unrestricted domestic cash | $ 20,000,000 | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Swingline Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate commitment amount under credit facility | $ 5,000,000 | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Federal Funds Effective Swap Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees on unused portion of the Revolving Credit Facility | 0.15% | |||||
EBITDA to cash Consolidated Interest Expense ratio | 3.00% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Minimum [Member] | Swingline Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin for borrowings under new credit facility | 0.25% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Minimum [Member] | Eurodollar Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin for borrowings under new credit facility | 1.25% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees on unused portion of the Revolving Credit Facility | 0.30% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Maximum [Member] | Swingline Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin for borrowings under new credit facility | 1.00% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Maximum [Member] | Eurodollar Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin for borrowings under new credit facility | 2.00% | |||||
2017 Credit Agreement [Member] | JPMorgan Chase Bank, N.A. [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate commitment amount under credit facility | $ 5,000,000 |
Debt - Scheduled Maturities of
Debt - Scheduled Maturities of Long Term Debt (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Maturities of Long-term Debt [Abstract] | |
2,018 | $ 126 |
2,019 | 77 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Total | $ 203 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued VAT | $ 3,916 | $ 3,928 |
Income taxes payable | 3,724 | 2,156 |
Accrued professional fees | 2,500 | 1,389 |
Accrued royalties | 2,037 | 1,583 |
Non-income tax liabilities | 1,343 | 739 |
Defined contribution plan liabilities | 1,274 | 1,139 |
Billings in excess of cost | 832 | 1,021 |
Related party liabilities | 119 | 1,045 |
Other current liabilities | 5,999 | 3,296 |
Total | $ 21,744 | $ 16,296 |
Other Liabilities - Summary o68
Other Liabilities - Summary of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Pension and other post retirement liabilities | $ 7,670 | $ 5,959 |
Deferred tax liabilities | 1,620 | 1,379 |
Other liabilities | 8,357 | 9,776 |
Total | $ 17,647 | $ 17,114 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Long-term Liabilities [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative instruments liability | $ 200,000 | $ 300,000 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivatives outstanding notional value | $ 4,500,000 | 4,500,000 |
Derivatives maturity date | Dec. 23, 2019 | |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivatives outstanding notional value | $ 0 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Oct. 05, 2017$ / sharesshares | Apr. 03, 2017Voteshares | Feb. 29, 2016USD ($) | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / shares | Apr. 04, 2017$ / sharesshares |
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 45,000,000 | 0 | |||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0 | |||||
Preferred stock, shares issued | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | |||||
Common stock, par value | $ / shares | $ 0.0001 | ||||||
Common stock dividends | $ / shares | $ 0 | $ 0 | $ 0 | ||||
Business acquisition, cash paid | $ | $ 15,582 | $ 6,499 | $ 2,757 | ||||
Altair Bellingham Llc [Member] | |||||||
Class of Stock [Line Items] | |||||||
Business acquisition, cash paid | $ | $ 700 | ||||||
Class B Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Capital units authorized | 41,203,428 | 41,203,428 | |||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Common stock voting rights description | Each share of the Company's Class A voting common stock, or old Class A shares, automatically converted into one share of new Class B voting common stock entitled to ten votes per share | ||||||
Number of votes entitled per share | 10 | ||||||
Conversion of stock, shares converted | 2,495,752 | 1 | |||||
Number of votes entitled to common stockholders per share | Vote | 10 | ||||||
Common stock, shares authorized | 41,203,000 | 44,000,000 | 44,000,000 | ||||
Common stock, no par value | $ / shares | |||||||
Class B Common Stock [Member] | Prior Recapitalization [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 25,153,872 | ||||||
Common stock, no par value | $ / shares | $ 0 | ||||||
Class A Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Capital units authorized | 513,796,572 | 513,796,572 | |||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Common stock voting rights description | Each share of the Company's Class B non-voting common stock, or old Class B shares, automatically converted into one share of new Class A voting common stock entitled to one vote per share, in each case, without any further action on the part of the holders thereof. | ||||||
Number of votes entitled per share | 1 | ||||||
Conversion of stock, shares converted | 1 | ||||||
Number of votes entitled to common stockholders per share | Vote | 1 | ||||||
Common stock, shares authorized | 513,797,000 | 76,000,000 | 76,000,000 | ||||
Common stock, no par value | $ / shares | |||||||
Class A Common Stock [Member] | Prior Recapitalization [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 99,279,884 | ||||||
Common stock, no par value | $ / shares | $ 0 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 27, 2017 | Dec. 31, 2012 | Dec. 31, 2001 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense yet to be recognized related to nonvested awards | $ 1,500 | $ 1,500 | ||||||
Expense recognition period related to nonvested awards | 2 years 9 months 18 days | |||||||
Business combination, estimated post combination expense | $ 2,000 | |||||||
Liability for Class A Redeemable Common Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Financial liabilities | $ 10,632 | $ 6,692 | ||||||
Class A Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares outstanding | 26,725,000 | 26,725,000 | 8,900,000 | |||||
NSO Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options, outstanding | 6,441,972 | 6,441,972 | 6,458,472 | 6,441,972 | ||||
Exercise price stock options outstanding | $ 0.000025 | $ 0.000025 | $ 0.000025 | |||||
Contractual term | 35 years | |||||||
ISO Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options, outstanding | 888,864 | 888,864 | 2,972,744 | |||||
Exercise price stock options outstanding | $ 0.67 | $ 0.67 | $ 0.64 | |||||
Contractual term | 10 years | |||||||
Shares outstanding | 2,340,596 | |||||||
Total intrinsic value of ISO Plan stock options exercised | $ 25,600 | $ 2,700 | ||||||
ISO Plan [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 2 years | |||||||
ISO Plan [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options vesting period | 3 years | |||||||
ISO Plan [Member] | Class A Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized | 11,153,872 | |||||||
2012 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options, outstanding | 2,183,127 | 2,183,127 | 1,797,252 | |||||
Exercise price stock options outstanding | $ 3.74 | $ 3.74 | $ 3.13 | |||||
Contractual term | 10 years | |||||||
Total requisite service period of awards | 4 years | |||||||
Compensation expense | $ 700 | $ 600 | $ 600 | |||||
2012 Plan [Member] | Old Class B Nonvoting Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized | 5,200,000 | |||||||
2017 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued under the plan | 0 | |||||||
2017 Plan [Member] | Class A Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 6,207,976 | |||||||
2001 ISO and NQSO Plan [Member] | Liability for Class A Redeemable Common Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Financial liabilities | $ 66,500 | $ 66,500 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity under NSO Plan (Detail) - NSO Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 6,458,472 | |
Number of options, Granted | 0 | |
Number of options, Exercised | (16,500) | |
Number of options, Forfeited | 0 | |
Number of options, Outstanding, Ending Balance | 6,441,972 | 6,458,472 |
Number of options, Exercisable | 6,441,972 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price per share, Outstanding, Beginning Balance | $ 0.000025 | |
Weighted average exercise price per share, Granted | 0 | |
Weighted average exercise price per share, Exercised | 0 | |
Weighted average exercise price per share, Forfeited | 0 | |
Weighted average exercise price per share, Outstanding, Ending Balance | 0.000025 | $ 0.000025 |
Weighted average exercise price per share, Exercisable | $ 0.000025 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 19 years | 20 years |
Weighted average remaining contractual term (years), Exercisable | 19 years |
Stock-based Compensation - Su73
Stock-based Compensation - Summary of Stock Option Activity under ISO Plan (Detail) - ISO Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 2,972,744 | |
Number of options, Granted | 0 | |
Number of options, Exercised | (2,070,916) | |
Number of options, Forfeited | (12,964) | |
Number of options, Outstanding, Ending Balance | 888,864 | 2,972,744 |
Number of options, Exercisable | 888,864 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price per share, Outstanding, Beginning Balance | $ 0.64 | |
Weighted average exercise price per share, Granted | 0 | |
Weighted average exercise price per share, Exercised | 0.63 | |
Weighted average exercise price per share, Forfeited | 0.53 | |
Weighted average exercise price per share, Outstanding, Ending Balance | 0.67 | $ 0.64 |
Weighted average exercise price per share, Exercisable | $ 0.67 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 2 years 6 months | 3 years 4 months 24 days |
Weighted average remaining contractual term (years), Exercisable | 2 years 6 months |
Stock-based Compensation - Su74
Stock-based Compensation - Summary of Stock Option Activity under ISO Plan (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options exercised | $ 1,792 |
Stock-based compensation - Su75
Stock-based compensation - Summary of Stock Option Activity under 2012 Plan (Detail) - 2012 Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 1,797,252 | |
Number of options, Granted | 608,948 | |
Number of options, Exercised | (189,492) | |
Number of options, Forfeited | (33,581) | |
Number of options, Outstanding, Ending Balance | 2,183,127 | 1,797,252 |
Number of options, Exercisable | 1,240,692 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price per share, Outstanding, Beginning Balance | $ 3.13 | |
Weighted average exercise price per share, Granted | 5.18 | |
Weighted average exercise price per share, Exercised | 2.60 | |
Weighted average exercise price per share, Forfeited | 3.89 | |
Weighted average exercise price per share, Outstanding, Ending Balance | 3.74 | $ 3.13 |
Weighted average exercise price per share, Exercisable | $ 3.01 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 7 years 3 months 19 days | 7 years 6 months |
Weighted average remaining contractual term (years), Exercisable | 6 years 2 months 12 days |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted Average Assumptions To Calculate Fair Value of Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 1.43 | ||
Expected volatility | 34.00% | 37.00% | 37.00% |
Expected term (in years) | 6 years 2 months 30 days | ||
Risk-free interest rate | 2.02% | 1.98% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 1.86 | $ 1.42 | |
Expected term (in years) | 5 years 9 months | 5 years 9 months | |
Risk-free interest rate | 1.37% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share | $ 1.94 | $ 1.65 | |
Expected term (in years) | 6 years 2 months 30 days | 6 years 2 months 30 days | |
Risk-free interest rate | 1.79% |
Stock-based Compensation - Su77
Stock-based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Total stock-based compensation expense | $ 8,000 | $ 25,300 | $ 11,200 | $ 47,281 | $ 5,132 | $ 597 |
Cost of Revenue - Software [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Total stock-based compensation expense | 350 | 22 | 44 | |||
Research and development [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Total stock-based compensation expense | 12,540 | 1,370 | 149 | |||
Sales and marketing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Total stock-based compensation expense | 7,693 | 775 | 109 | |||
General and administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||
Total stock-based compensation expense | $ 26,698 | $ 2,965 | $ 295 |
Other Expense (Income), Net - S
Other Expense (Income), Net - Schedule of Other Expense (Income), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange (gain) loss | $ 1,254 | $ (271) | $ 973 |
Other | (260) | (249) | (191) |
Other expense (income), net | $ 994 | $ (520) | $ 782 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S | $ (49,761) | $ (2,225) | $ (6,861) |
Non-U.S | 13,350 | 15,927 | 18,610 |
(Loss) income before income taxes | $ (36,411) | $ 13,702 | $ 11,749 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
U.S. Federal | $ 0 | $ 0 | $ 0 |
Non-U.S. | 10,290 | 9,413 | 9,893 |
U.S. State and Local | 135 | 202 | 56 |
Total current | 10,425 | 9,615 | 9,949 |
Deferred | |||
U.S. Federal | 54,130 | (5,358) | (8,445) |
Non-U.S. | (1,306) | (610) | (587) |
U.S. State and Local | (253) | (108) | (99) |
Total deferred | 52,571 | (6,076) | (9,131) |
Income tax expense | $ 62,996 | $ 3,539 | $ 818 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
U.S. Federal statutory income tax rate | 35.00% | ||
Tax cuts and job act, increase tax expense | $ 15,400 | ||
Tax cuts and job act, offset of foreign tax credits | 4,200 | ||
Deferred tax assets, valuation allowance | 47,429 | ||
Tax cuts and job act, deferred tax benefit | (1,300) | ||
Tax cuts and job act, transition tax liability, net of foreign tax credits | 4,187 | ||
Gross unrecognized tax benefits recognized would affect the effective tax rate | 6,200 | ||
Unrecognized tax benefits related to accrued interest and penalties | 100 | ||
Valuation Allowance of Deferred Tax Assets [Member] | |||
Income Tax Disclosure [Line Items] | |||
Additions charged to expense | $ 47,429 | $ 177 | |
Scenario, Plan [Member] | |||
Income Tax Disclosure [Line Items] | |||
U.S. Federal statutory income tax rate | 21.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Calculated at U.S. Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at U.S. federal statutory rate | $ (12,744) | $ 4,796 | $ 4,117 |
Foreign income taxes at rates other than the federal statutory rate | 373 | (584) | (10) |
U.S. state and local income taxes, net of U.S. federal tax benefit | (155) | 94 | (47) |
U.S. Tax Cut and Jobs Act: transition tax, net of foreign tax credits | 4,187 | ||
Change in valuation allowance | 47,429 | ||
Foreign withholding taxes | 4,181 | 4,235 | 3,790 |
Foreign dividends | 5,077 | 4,152 | |
U.S. foreign tax credit | (4,154) | (8,786) | (9,808) |
Research and development tax credit | (2,999) | (2,696) | (1,608) |
Domestic production activities deduction | (840) | (833) | |
Non-deductible stock-based compensation | 10,871 | 2,064 | 234 |
Meals & entertainment | 358 | 235 | 258 |
Other | (163) | (91) | 125 |
Deferred tax on investment in subsidiary | (264) | (214) | |
Uncertain tax position | 446 | 299 | 662 |
Tax law changes | 15,366 | ||
Income tax expense | $ 62,996 | $ 3,539 | $ 818 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Deferred revenue | $ 19,569 | $ 16,966 |
Net operating loss carryforwards | 7,601 | 3,550 |
Tax credit carryforwards | 22,191 | 17,839 |
Stock-based compensation | 8,922 | 15,825 |
Capitalized research and development | 8,798 | 12,492 |
Accrued expenses | 648 | 1,775 |
Employee benefits | 3,931 | 3,995 |
Other | 1,905 | 2,527 |
Total gross deferred tax assets | 73,565 | 74,969 |
Less: valuation allowances | (54,331) | (4,153) |
Net deferred tax assets | 19,234 | 70,816 |
Deferred tax liabilities: | ||
Prepaid royalties | 6,925 | 5,821 |
Property and equipment and intangibles | 4,567 | 2,394 |
Deferred tax on investment in subsidiary | 272 | 272 |
Other | 739 | 812 |
Total deferred tax liabilities | 12,503 | 9,299 |
Total net deferred tax assets | $ 6,731 | $ 61,517 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes to Valuation Allowance Balance (Detail) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation Allowance [Line Items] | |||
Beginning balance | $ 4,153 | $ 2,452 | $ 2,858 |
Additions charged to expense | 47,429 | 177 | |
Deductions | (207) | (270) | |
Other | 2,749 | 1,731 | (136) |
Ending balance | $ 54,331 | $ 4,153 | $ 2,452 |
Income Taxes - Operating Loss a
Income Taxes - Operating Loss and Tax Credit Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Foreign loss carryforwards, expiration year | indefinite |
U.S. foreign tax credits, expiration year | 2,027 |
U.S. foreign tax credits | $ 2,349 |
Total operating loss and tax credit carryforwards | 29,792 |
Foreign Tax Authority [Member] | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
Foreign loss carryforwards | $ 2,879 |
General Business Tax Credit Carryforward [Member] | |
Operating Loss and Tax Credit Carryforward [Line Items] | |
U.S. general business credits and loss carryforwards, expiration year | 2018-2037 |
Foreign loss carryforwards | $ 24,564 |
Income Taxes - Reconciliation86
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits-January 1 | $ 5,604 | $ 5,305 | $ 4,712 |
Additions for tax positions of current period | 634 | 299 | 826 |
Reductions for tax positions of prior periods | (81) | (233) | |
Unrecognized tax benefits-December 31 | $ 6,157 | $ 5,604 | $ 5,305 |
(Loss) Income Per Share - Compu
(Loss) Income Per Share - Computation of Numerators and Denominators Used Basic and Diluted (Loss) Income Per Share Amounts (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net (loss) income | $ (60,347) | $ (29,626) | $ (7,246) | $ (2,188) | $ 5,896 | $ 314 | $ 2,472 | $ 1,481 | $ (99,407) | $ 10,163 | $ 10,931 |
Denominator: | |||||||||||
Denominator for basic (loss) income per share-weighted average shares | 52,466 | 48,852 | 46,609 | ||||||||
Effect of dilutive securities, stock options | 9,004 | 12,100 | |||||||||
Denominator for dilutive (loss) income per share | 52,466 | 57,856 | 58,709 | ||||||||
Net (loss) income per share attributable to common stockholders, basic | $ (1.03) | $ (0.59) | $ (0.14) | $ (0.04) | $ 0.12 | $ 0.01 | $ 0.05 | $ 0.03 | $ (1.89) | $ 0.21 | $ 0.23 |
Net (loss) income per share attributable to common stockholders, diluted | $ (1.03) | $ (0.59) | $ (0.14) | $ (0.04) | $ 0.10 | $ 0.01 | $ 0.04 | $ 0.03 | $ (1.89) | $ 0.18 | $ 0.19 |
(Loss) Income Per Share - Addit
(Loss) Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares excluded from computation of (loss) income per share | 10,200,000 | 0 | 800,000 |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Funded percentage | 80.00% | ||
Defined Benefit Plan, Contributions by Employer | $ 1.1 | $ 1.1 | $ 0.9 |
Net benefit cost | 1.2 | 0.9 | 0.6 |
Benefit obligation benefits paid | 0.2 | 0.2 | $ 0.1 |
Accumulated benefit obligation | 5.5 | 3 | |
Defined benefit plan assets | 0.9 | 0.7 | |
Defined benefit plan funded | $ 8 | $ 6.3 |
Retirement Benefits - Schedule
Retirement Benefits - Schedule of Pension Benefits Obligation (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Accrued compensation and benefits | $ 368 | $ 332 |
Other long-term liabilities | 7,670 | 5,959 |
Components of pension benefits | $ 8,038 | $ 6,291 |
Retirement Benefits - Schedul91
Retirement Benefits - Schedule of Estimated Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
December 31, 2018 | $ 393 |
December 31, 2019 | 282 |
December 31, 2020 | 342 |
December 31, 2021 | 211 |
December 31, 2022 | 261 |
Next five years | $ 2,217 |
Accumulated Other Comprehensi92
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (7,264) | ||
Other comprehensive income (loss) before reclassification | 2,138 | $ (691) | $ (3,285) |
Amounts reclassified from accumulated other comprehensive loss | 54 | ||
Tax effects | 135 | 917 | |
Other comprehensive income (loss) | 2,192 | (556) | (2,368) |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | (1) | ||
Ending balance | (5,072) | (7,264) | |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (5,725) | (5,745) | (3,631) |
Other comprehensive income (loss) before reclassification | 2,351 | 80 | (3,068) |
Tax effects | (60) | 953 | |
Other comprehensive income (loss) | 2,351 | 20 | (2,115) |
Less: Other comprehensive income (loss) attributable to noncontrolling interest | (1) | ||
Ending balance | (3,374) | (5,725) | (5,745) |
Retirement Related Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,539) | (963) | (710) |
Other comprehensive income (loss) before reclassification | (213) | (771) | (217) |
Amounts reclassified from accumulated other comprehensive loss | 54 | ||
Tax effects | 195 | (36) | |
Other comprehensive income (loss) | (159) | (576) | (253) |
Ending balance | (1,698) | (1,539) | (963) |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (7,264) | (6,708) | (4,341) |
Ending balance | $ (5,072) | $ (7,264) | $ (6,708) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($)Installmentshares | Jun. 30, 2016USD ($)Installmentshares | Feb. 28, 2016USD ($) | Jan. 31, 2016USD ($)Installmentshares | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($)Installmentshares | |
Related Party Transaction [Line Items] | |||||||
Purchase of noncontrolling interests | $ 29 | ||||||
Obligations to related parties, current | $ 1,045 | 119 | |||||
Other accrued expenses and current liabilities [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Obligations to related parties, current | 1,000 | 100 | |||||
Other Long-term Liabilities [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
obligations to related parties, non-current | 100 | ||||||
Other long-term assets [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Receivables from equity investment | $ 200 | $ 500 | |||||
Founder Stockholders [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Purchase of noncontrolling interests | $ 29 | ||||||
Founder Stockholders [Member] | Class B Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stock redeemed in shares | shares | 113,388 | ||||||
Stock redeemed aggregate purchase price | $ 600 | ||||||
Number of installments | Installment | 9 | ||||||
Founder Stockholders [Member] | Class A Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stock redeemed in shares | shares | 59,108 | 350,400 | 200,000 | ||||
Stock redeemed aggregate purchase price | $ 300 | $ 1,300 | $ 700 | ||||
Number of installments | Installment | 12 | 12 | 36 | ||||
Related Party [Member] | Class A Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stock redeemed in shares | shares | 137,268 | ||||||
Stock redeemed aggregate purchase price | $ 500 | ||||||
Number of installments | Installment | 2 | ||||||
Altair Bellingham Llc [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payment to acquire business | $ 700 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Nov. 13, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies [Line Items] | ||||
Damages amount on MSC litigation | $ 0.4 | |||
Rent expense for operating leases | $ 9.9 | $ 8.5 | $ 7.7 | |
Minimum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Operating lease term | 1 year | |||
Software Development [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Royalty revenues | $ 9.3 | $ 7.9 | $ 7.1 |
Commitments and Contingencies95
Commitments and Contingencies - Schedule of Future Minimum Capital Lease Payments and under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity | |
Capital leases, 2018 | $ 106 |
Capital leases, 2019 | 60 |
Capital leases, 2020 | 36 |
Capital leases, 2021 | 5 |
Capital leases, 2022 | 0 |
Capital leases, Thereafter | 0 |
Total minimum lease payments | 207 |
Less: current installments under capital lease obligations | 106 |
Total long-term portion | 101 |
Total minimum lease payments | 207 |
Year Ending December 31, | |
Operating leases, 2018 | 8,946 |
Operating leases, 2019 | 6,919 |
Operating leases, 2020 | 4,797 |
Operating leases, 2021 | 2,892 |
Operating leases, 2022 | 1,933 |
Operating leases, Thereafter | 2,367 |
Total minimum lease payments | $ 27,854 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 89,867 | $ 84,938 | $ 81,646 | $ 76,882 | $ 82,848 | $ 78,052 | $ 77,511 | $ 74,829 | $ 333,333 | $ 313,240 | $ 294,129 |
Adjusted EBITDA | 22,517 | 30,830 | 22,949 | ||||||||
Software [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 280,214 | 259,588 | 242,861 | ||||||||
Adjusted EBITDA | 22,864 | 29,411 | 23,149 | ||||||||
Client Engineering Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 46,510 | 47,702 | 45,075 | ||||||||
Adjusted EBITDA | 4,966 | 5,425 | 4,776 | ||||||||
All Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 6,609 | 5,950 | 6,193 | ||||||||
Adjusted EBITDA | $ (5,313) | $ (4,006) | $ (4,976) |
Segment Information - Reconcili
Segment Information - Reconciliation of U.S. Gaap (Loss) Income Before Income Taxes to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | ||||||
Adjusted EBITDA | $ 22,517 | $ 30,830 | $ 22,949 | |||
Stock-based compensation expense | $ (8,000) | $ (25,300) | $ (11,200) | (47,281) | (5,132) | (597) |
Interest expense | (2,160) | (2,265) | (2,416) | |||
Interest income and other | 2,260 | 249 | 191 | |||
Depreciation and amortization | (11,747) | (9,980) | (8,378) | |||
(Loss) income before income taxes | $ (36,411) | $ 13,702 | $ 11,749 |
Segment Information - Reconci99
Segment Information - Reconciliation of U.S. Gaap (Loss) Income Before Income Taxes to Adjusted EBITDA (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |
Income recognized in non-recurring adjustment for change in estimated legal expenses | $ 2 |
Segment Information - Summary o
Segment Information - Summary of Sales to External Customers and Long-Lived Assets by Geographical Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 89,867 | $ 84,938 | $ 81,646 | $ 76,882 | $ 82,848 | $ 78,052 | $ 77,511 | $ 74,829 | $ 333,333 | $ 313,240 | $ 294,129 |
Long-lived assets | 53,168 | 39,051 | 53,168 | 39,051 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 142,679 | 139,079 | 130,791 | ||||||||
Long-lived assets | 38,729 | 25,901 | 38,729 | 25,901 | |||||||
Other American Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 6,404 | 6,032 | 4,841 | ||||||||
Long-lived assets | 116 | 120 | 116 | 120 | |||||||
Americas [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 149,083 | 145,111 | 135,632 | ||||||||
Long-lived assets | 38,845 | 26,021 | 38,845 | 26,021 | |||||||
Germany [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 43,751 | 39,470 | 37,549 | ||||||||
Long-lived assets | 2,802 | 2,660 | 2,802 | 2,660 | |||||||
France [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 18,128 | 15,729 | 14,057 | ||||||||
Long-lived assets | 2,176 | 2,175 | 2,176 | 2,175 | |||||||
Other Europe, Middle East and Africa Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 40,050 | 34,909 | 35,933 | ||||||||
Long-lived assets | 4,534 | 4,317 | 4,534 | 4,317 | |||||||
Europe Middle East And Africa [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 101,929 | 90,108 | 87,539 | ||||||||
Long-lived assets | 9,512 | 9,152 | 9,512 | 9,152 | |||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 33,686 | 33,198 | 26,795 | ||||||||
Long-lived assets | 2,237 | 879 | 2,237 | 879 | |||||||
Other Asia Pacific Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 48,635 | 44,823 | 44,163 | ||||||||
Long-lived assets | 2,574 | 2,999 | 2,574 | 2,999 | |||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 82,321 | 78,021 | $ 70,958 | ||||||||
Long-lived assets | $ 4,811 | $ 3,878 | $ 4,811 | $ 3,878 |
Supplemental Quarterly Finan101
Supplemental Quarterly Financial Information (Unaudited) - Summary of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 89,867 | $ 84,938 | $ 81,646 | $ 76,882 | $ 82,848 | $ 78,052 | $ 77,511 | $ 74,829 | $ 333,333 | $ 313,240 | $ 294,129 |
Gross profit | 63,250 | 58,636 | 54,728 | 50,128 | 56,627 | 52,431 | 52,171 | 49,411 | 226,742 | 210,640 | 194,921 |
Operating income | (3,181) | (20,928) | (7,158) | (1,990) | 7,976 | 224 | 3,615 | 3,632 | (33,257) | 15,447 | 14,947 |
Net(loss)income | $ (60,347) | $ (29,626) | $ (7,246) | $ (2,188) | $ 5,896 | $ 314 | $ 2,472 | $ 1,481 | $ (99,407) | $ 10,163 | $ 10,931 |
Earnings per share, basic | $ (1.03) | $ (0.59) | $ (0.14) | $ (0.04) | $ 0.12 | $ 0.01 | $ 0.05 | $ 0.03 | $ (1.89) | $ 0.21 | $ 0.23 |
Earnings per share, diluted | $ (1.03) | $ (0.59) | $ (0.14) | $ (0.04) | $ 0.10 | $ 0.01 | $ 0.04 | $ 0.03 | $ (1.89) | $ 0.18 | $ 0.19 |
Supplemental Quarterly Finan102
Supplemental Quarterly Financial Information (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||
Stock-based compensation expense | $ 8,000 | $ 25,300 | $ 11,200 | $ 47,281 | $ 5,132 | $ 597 |
Increase in income tax expense | $ 56,600 | |||||
Tax cuts and job act, valuation allowance | 47,429 | |||||
Tax cuts and job act, increase tax expense | $ 15,400 |