Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 19, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ALTR | |
Entity Registrant Name | ALTAIR ENGINEERING INC. | |
Entity Central Index Key | 1,701,732 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,495,652 | |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 63,196 | $ 39,213 |
Accounts receivable, net | 83,350 | 86,635 |
Inventory, net | 1,051 | 1,980 |
Income tax receivable | 6,898 | 6,054 |
Prepaid expenses and other current assets | 13,148 | 10,006 |
Total current assets | 167,643 | 143,888 |
Property and equipment, net | 30,501 | 31,446 |
Goodwill | 63,771 | 62,706 |
Other intangible assets, net | 22,813 | 24,461 |
Deferred tax assets | 8,824 | 8,351 |
Other long-term assets | 17,270 | 17,019 |
TOTAL ASSETS | 310,822 | 287,871 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 294 | 232 |
Accounts payable | 5,650 | 4,880 |
Accrued compensation and benefits | 25,360 | 26,560 |
Obligations for acquisition of businesses | 13,226 | 13,925 |
Other accrued expenses and current liabilities | 21,486 | 21,744 |
Deferred revenue | 152,663 | 130,122 |
Total current liabilities | 218,679 | 197,463 |
Long-term debt, net of current portion | 526 | 178 |
Deferred revenue, non-current | 9,961 | 9,640 |
Other long-term liabilities | 14,179 | 17,647 |
TOTAL LIABILITIES | 243,345 | 224,928 |
Commitments and contingencies | ||
MEZZANINE EQUITY | 2,352 | 2,352 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding | ||
Additional paid-in capital | 232,576 | 232,156 |
Accumulated deficit | (162,579) | (166,499) |
Accumulated other comprehensive loss | (4,879) | (5,072) |
TOTAL STOCKHOLDERS’ EQUITY | 65,125 | 60,591 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | 310,822 | 287,871 |
Class A Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | 3 | 2 |
Class B Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | $ 4 | $ 4 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 45,000,000 | 45,000,000 |
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 | 513,797,000 |
Common stock, shares issued | 27,357,000 | 26,725,000 |
Common stock, shares outstanding | 27,357,000 | 26,725,000 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 41,203,000 | 41,203,000 |
Common stock, shares issued | 36,508,000 | 36,508,000 |
Common stock, shares outstanding | 36,508,000 | 36,508,000 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | ||
Software | $ 68,143 | $ 54,097 |
Software related services | 9,473 | 8,971 |
Total software | 77,616 | 63,068 |
Client engineering services | 12,080 | 12,229 |
Other | 2,035 | 1,585 |
Total revenue | 91,731 | 76,882 |
Cost of revenue | ||
Software | 10,922 | 8,904 |
Software related services | 6,709 | 6,659 |
Total software | 17,631 | 15,563 |
Client engineering services | 10,200 | 10,141 |
Other | 1,211 | 1,050 |
Total cost of revenue | 29,042 | 26,754 |
Gross profit | 62,689 | 50,128 |
Operating expenses: | ||
Research and development | 22,703 | 18,770 |
Sales and marketing | 18,977 | 16,910 |
General and administrative | 16,990 | 16,089 |
Amortization of intangible assets | 1,940 | 943 |
Other operating income | (2,191) | (594) |
Total operating expenses | 58,419 | 52,118 |
Operating income (loss) | 4,270 | (1,990) |
Interest expense | 16 | 611 |
Other (income) expense, net | (900) | 359 |
Income (loss) before income taxes | 5,154 | (2,960) |
Income tax expense (benefit) | 1,234 | (772) |
Net income (loss) | $ 3,920 | $ (2,188) |
Income (loss) per share: | ||
Net income (loss) per share attributable to common stockholders, basic | $ 0.06 | $ (0.04) |
Net income (loss) per share attributable to common stockholders, diluted | $ 0.05 | $ (0.04) |
Weighted average shares outstanding: | ||
Weighted average number of shares used in computing net income (loss) per share, basic | 63,638 | 50,132 |
Weighted average number of shares used in computing net income (loss) per share, diluted | 72,390 | 50,132 |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 3,920 | $ (2,188) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation (net of tax effect of $0 and $0, respectively) | 205 | 357 |
Retirement related benefit plans (net of tax effect of $10 and $0, respectively) | (12) | (11) |
Total other comprehensive income (loss) | 193 | 346 |
Comprehensive income (loss) | $ 4,113 | $ (1,842) |
Consolidated statements of com6
Consolidated statements of comprehensive income (loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation, tax effect | $ 0 | $ 0 |
Retirement related benefit plans, tax effect | $ 10 | $ 0 |
Consolidated statement of chang
Consolidated statement of changes in stockholders' equity - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2017 | $ 60,591 | $ 2 | $ 4 | $ 232,156 | $ (166,499) | $ (5,072) |
Beginning balance (in shares) at Dec. 31, 2017 | 26,725 | 36,508 | ||||
Net income | 3,920 | 3,920 | ||||
Adjustment for acquisitions | (96) | (96) | ||||
Exercise of stock options | 301 | $ 1 | 300 | |||
Exercise of stock options (in shares) | 632 | |||||
Stock-based compensation | 216 | 216 | ||||
Foreign currency translation, net of tax | 205 | 205 | ||||
Retirement related benefit plans, net of tax | (12) | (12) | ||||
Ending balance at Mar. 31, 2018 | $ 65,125 | $ 3 | $ 4 | $ 232,576 | $ (162,579) | $ (4,879) |
Ending balance (in shares) at Mar. 31, 2018 | 27,357 | 36,508 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 3,920 | $ (2,188) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 3,543 | 2,461 |
Provision for bad debt | 65 | 91 |
Stock-based compensation expense | 216 | 2,869 |
Deferred income taxes | (432) | 182 |
Other, net | (7) | 18 |
Changes in assets and liabilities: | ||
Accounts receivable | 4,492 | 8,153 |
Prepaid expenses and other current assets | (715) | (4,058) |
Other long-term assets | 119 | (1,523) |
Accounts payable | 510 | (186) |
Accrued compensation and benefits | (1,560) | (2,478) |
Other accrued expenses and current liabilities | (3,967) | (632) |
Deferred revenue | 20,505 | 16,493 |
Net cash provided by operating activities | 26,689 | 19,202 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (1,684) | (969) |
Payments for acquisition of businesses | (1,199) | (1,099) |
Payments for acquisition of developed technology | (353) | (120) |
Other investing activities, net | 23 | (44) |
Net cash used in investing activities | (3,213) | (2,232) |
FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 302 | 115 |
Payments of initial public offering costs | (186) | (81) |
Payments for redemption of common stock | (60) | (305) |
Principal payments on long-term debt | (51) | (2,688) |
Payments on revolving commitment | (32,061) | |
Borrowings under revolving commitment | 17,271 | |
Other financing activities | (16) | |
Net cash provided by (used in) financing activities | 5 | (17,765) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 495 | 490 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 23,976 | (305) |
Cash, cash equivalents and restricted cash at beginning of year | 39,578 | 17,139 |
Cash, cash equivalents and restricted cash at end of period | 63,554 | 16,834 |
Supplemental disclosure of cash flow: | ||
Interest paid | 10 | 634 |
Income taxes paid | 2,143 | 1,641 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Initial public offering costs in other long-term assets | 1,625 | |
Property and equipment in accounts payable and other accrued expenses and current liabilities | 736 | $ 64 |
Capital leases | $ 565 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and description of business Altair Engineering Inc. (“Altair” or the “Company”) is incorporated in the state of Delaware. The Company is a provider of enterprise-class engineering software enabling innovation across the entire product lifecycle from concept design to in-service operation. Altair transforms design and decision making by applying simulation, machine learning, and optimization throughout product lifecycles. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | 2. Accounting policies Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Accordingly, the accompanying statements do not include all the information and notes required by GAAP for complete financial statements. The accompanying consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the year ended December 31, 2017, included in the most recent Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. The preparation of the 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. Considerable judgment is often involved in making these determinations; use of different assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results may differ from those estimates. In addition, the results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for any future period. There have been no material changes to Altair’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The Company has concluded that all material transactions that have occurred that require disclosure or adjustments to the consolidated financial statements have been reported herein. See Note 16 – Subsequent events for additional information. 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 sheet that sum to the total of the amounts reported in the consolidated statement of cash flows (in thousands): March 31, 2018 December 31, 2017 Cash and cash equivalents $ 63,196 $ 39,213 Restricted cash included in other long-term assets 358 365 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 63,554 $ 39,578 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. 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 activities. The tax credit is deductible from French income tax and any excess is carried forward three years. After three years, any unused credit may be reimbursed to the Company by the French government. As of March 31, 2018, the Company had approximately $10.2 million receivable from the French government related to CIR, of which $2.4 million is recorded in income tax receivable and the remaining $7.8 million is recorded in other long-term assets. CIR is subject to customary audit by French tax authorities. Assets held for sale Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. Depreciation expense is not recognized on assets held for sale. On March 30, 2018, the Company signed a letter of intent to sell the building that is used as the headquarters for the Company’s toggled subsidiary. A purchase agreement is presently under negotiation. As of March 31, 2018, the building and related assets of $2.1 million were recorded in prepaid expenses and other current assets. 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. The put right option is terminated if the shareholders sell their shares. Classification of the of instrument shall remain as mezzanine equity until one of the following three events take place: (1) shares are sold on the open market; (2) a redemption feature lapses; or (3) there is a modification of the terms of the instrument. Income (loss) per share Basic income (loss) 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 income (loss) 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 income (loss) per share amounts (in thousands, except per share data): Three months ended March 31, 2018 2017 Numerator: Net income (loss) $ 3,920 $ (2,188 ) Denominator: Denominator for basic income (loss) per share—weighted average shares 63,638 50,132 Effect of dilutive securities, stock options 8,752 — Denominator for dilutive income (loss) per share 72,390 50,132 Net income (loss) per share attributable to common stockholders, basic $ 0.06 $ (0.04 ) Net income (loss) per share attributable to common stockholders, diluted $ 0.05 $ (0.04 ) The computation of diluted income (loss) 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 period or due to a net loss in the period. For the three months ended March 31, 2018, there were no anti-dilutive shares excluded from the computation of income (loss) per share. For the three months ended March 31, 2017, there were 9.4 million anti-dilutive shares excluded from the computation of income (loss) per share. |
Recent Accounting Guidance
Recent Accounting Guidance | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Guidance | 3. Accounting standards adopted The Company adopted Accounting Standards Update, “ASU” 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting Accounting standards not yet adopted Revenue Recognition —In May 2014, the Financial Accounting Standards Board, or “FASB”, issued ASU 2014-09, . This standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most existing revenue recognition guidance under GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced disclosures about the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. In August 2015, the FASB issued ASU 2015-14, that defers the effective date of ASU 2014-09 for all entities by one year for public business entities. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. For all other entities, including emerging growth companies, this ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. 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, the concept of assessing VSOE has been eliminated and the Company must estimate a fair value associated with each performance obligation within an arrangement. As a result, the Company expects the timing of revenue recognition to be accelerated because it anticipates that license revenue will be recognized at a point in time, rather than over time, which is its current practice. Generally, the license revenue component of an arrangement represents a significant portion of the overall fair value of a software arrangement. As a result, the Company expects the adoption of ASU 2014-09 to have a significant impact on the consolidated financial statements. The Company has elected to adopt this standard effective on January 1, 2019 using the modified retrospective approach. Financial Instruments —In January 2016, the FASB issued ASU 2016-01, . This standard affects the accounting for equity instruments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 is effective in the first quarter of 2019. The Company is currently evaluating the impact of the adoption of ASU 2016-01 on its consolidated financial statements and related disclosures. Leases —In February 2016, the FASB issued ASU 2016-02, . This standard amends various aspects of existing accounting guidance for leases, including the recognition of a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This standard also introduces new disclosure requirements for leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. For all other entities, including emerging growth companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The new standard must be adopted using a modified retrospective approach, and provides for certain practical expedients. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures. Cash Classification —In August 2016, the FASB issued ASU 2016-15, , to improve financial reporting in regard to how certain transactions are classified in the statement of cash flows. ASU 2016-15 provides guidance for targeted changes with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, for public business entities. For all other entities, including emerging growth companies, ASU 2016-15 is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-15 on its consolidated financial statements and related disclosures. Goodwill Impairment —In January 2017, the FASB issued ASU 2017-04, , which simplifies accounting for goodwill impairments by eliminating step two from the goodwill impairment test. This guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, for public business entities that are Securities and Exchange Commission (SEC) filers, and December 15, 2020, for public business entities that are not SEC filers. For all other entities, including emerging growth companies, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2021. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The new standard must be applied on a prospective basis. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. Retirement Benefits – In March 2017, the FASB issued ASU 2017-07, This ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component. The new guidance is effective for public business entities for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2017. For all other entities, including emerging growth companies, ASU 2017-07 is effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted as of the beginning of an annual period. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. Derivatives and Hedging – In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU amends the guidance with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. In addition, this ASU amends the current guidance to simplify the application of the hedge accounting guidance. For public business entities, the amendments are effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2018. For all other entities, including emerging growth companies, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. Comprehensive Income – In January 2018, the FASB issued ASU 2018-02, , which gives entities the option to reclassify to retained earnings the tax effects resulting from the Tax Cuts and Jobs Act, or the Tax Act, related to items in AOCI that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Tax Act is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including the period the Tax Act was enacted. The guidance, when adopted, will require new disclosures regarding a company’s accounting policy for releasing the tax effects in AOCI and permit the company the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in AOCI. The Company is currently evaluating how to apply the new guidance and has not determined whether it will elect to reclassify stranded amounts. The adoption of ASU 2018-02 is not expected to have a material effect on the Company’s consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. 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 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. 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. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | 5 . Inventory Inventory is stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. The valuation of inventory requires management to estimate excess inventory as well as inventory that is not of saleable quality. The determination of obsolete or excess inventory requires management to estimate market conditions and future demand for the Company’s products. Inventory consisted of the following (in thousands): March 31, December 31, 2018 2017 Raw materials $ — $ — Finished goods 1,051 1,980 Total inventory – net $ 1,051 $ 1,980 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 6 . Property and equipment, net Property and equipment consists of the following (in thousands): March 31, December 31, 2018 2017 Land $ 7,994 $ 7,994 Building and improvements 12,825 15,185 Computer equipment and software 33,645 32,103 Office furniture and equipment 7,850 6,751 Leasehold improvements 6,300 6,467 Total property and equipment 68,614 68,500 Less: accumulated depreciation and amortization 38,113 37,054 Property and equipment, net $ 30,501 $ 31,446 Depreciation expense was $1.6 million and $1.5 million for the three months ended March 31, 2018 and 2017, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 7 . 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, 2017 $ 62,706 Purchase price adjustment 114 Effects of foreign currency translation 951 Balance at March 31, 2018 $ 63,771 Other intangible assets A summary of other intangible assets is shown below (in thousands): March 31, 2018 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 years $ 26,357 $ 11,849 $ 14,508 Customer relationships 7 years 11,930 6,532 5,398 Other intangibles 10 years 149 61 88 Total definite-lived intangible assets 38,436 18,442 19,994 Indefinite-lived intangible assets: Trade names 2,819 2,819 Total other intangible assets $ 41,255 $ 18,442 $ 22,813 December 31, 2017 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 years $ 25,947 $ 9,909 $ 16,038 Customer relationships 7 years 11,794 6,195 5,599 Other intangibles 10 years 143 57 86 Total definite-lived intangible assets 37,884 16,161 21,723 Indefinite-lived intangible assets: Trade names 2,738 2,738 Total other intangible assets $ 40,622 $ 16,161 $ 24,461 Amortization expense related to intangible assets was $1.9 million and $0.9 million for the three months ended March 31, 2018 and 2017, respectively. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 8 . Other liabilities The following table provides the details of other accrued expenses and current liabilities (in thousands): March 31, December 31, 2018 2017 Accrued VAT 4,709 3,916 Income taxes payable 3,976 3,724 Accrued professional fees 2,434 2,500 Accrued royalties 2,798 2,037 Government grants 879 712 Defined contribution plan liabilities 814 1,274 Self-insurance and other insurance reserves 803 601 Billings in excess of cost 758 832 Related party liabilities 60 119 Other current liabilities 4,255 6,029 $ 21,486 $ 21,744 The following table provides details of other long-term liabilities (in thousands): March 31, December 31, 2018 2017 Pension and other post retirement liabilities $ 7,953 $ 7,670 Deferred tax liabilities 1,623 1,620 Other liabilities 4,603 8,357 $ 14,179 $ 17,647 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9 . 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 6,072,464 stock options with an exercise price of $0.000025 remain outstanding at March 31, 2018. 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 exercise price per share Weighted average remaining contractual term (years) Outstanding at January 1, 2018 6,441,972 $ 0.000025 19 Exercised (369,508 ) $ 0.000025 Forfeited — $ 0.000025 Outstanding at March 31, 2018 6,072,464 $ 0.000025 19 Exercisable at March 31, 2018 6,072,464 $ 0.000025 19 The total intrinsic value of the NSO Plan stock options exercised during the three months ended March 31, 2018 was $9.9 million. 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 vested over a two to three-year period. All options have a contractual term of ten years from the date of grant. The following table summarizes the stock option activity under the 2001 stock-based compensation plans for the periods indicated as follows: Number of Options Weighted average exercise price per share Weighted average remaining contractual term (years) Outstanding at January 1, 2018 888,864 $ 0.67 2.5 Exercised (204,084 ) $ 0.64 Forfeited — — Outstanding at March 31, 2018 684,780 $ 0.68 2.1 Exercisable at March 31, 2018 684,780 $ 0.68 2.1 The total intrinsic value of the ISO Plan stock options exercised during the three months ended March 31, 2018 was $5.1 million. 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. Total compensation cost related to nonvested awards not yet recognized as of March 31, 2018, totaled $1.3 million, and is expected to be recognized over a weighted average period of 2.5 years. The following table summarizes the stock option activity under the 2012 Plan for the periods indicated as follows: Number of options Weighted average exercise price per share Weighted average remaining contractual term (years) Outstanding at January 1, 2018 2,183,127 $ 3.74 7.3 Granted — — Exercised (57,935 ) $ 2.90 Forfeited (5,400 ) $ 5.13 Outstanding at March 31, 2018 2,119,792 $ 3.76 7.1 Exercisable at March 31, 2018 1,183,484 $ 3.02 6.0 The total intrinsic value of the 2012 Plan stock options exercised during the three months ended March 31, 2018 was $1.3 million. 2017 stock-based compensation plan In 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 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 8,104,971 authorized shares of the Company’s Class A common stock reserved for issuance. The following table summarizes the restricted stock units, or RSUs, awarded under the 2017 Plan for the period: Number of RSUs Weighted average remaining contractual term (years) Outstanding at January 1, 2018 — Granted 58,295 Vested — Forfeited — Outstanding at March 31, 2018 58,295 9.9 The weighted average grant date fair value of the RSUs was $26.84 and the RSUs vest in four equal annual installments. Stock-based compensation expense The stock-based compensation expense was recorded as follows (in thousands): Three months ended March 31, 2018 2017 Cost of revenue – software $ 8 $ 5 Research and development 47 775 Sales and marketing 41 431 General and administrative 120 1,658 Total stock-based compensation expense $ 216 $ 2,869 |
Other (income) expense, net
Other (income) expense, net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other (income) expense, net | 1 0 . Other (income) expense, net Other (income) expense, net consists of the following (in thousands): Three months ended March 31, 2018 2017 Foreign exchange (gain) loss $ (797 ) $ 444 Other (103 ) (85 ) Other (income) expense, net $ (900 ) $ 359 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 1 . Income taxes At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date income (loss) before income taxes. The income tax provision or benefit related to unusual or infrequent items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or income tax contingencies is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected income (loss) before income taxes for the year, projections of the proportion of income (and/or loss) earned and taxed in respective jurisdictions, including applicable foreign taxes withheld at the source, permanent and temporary differences, and the likelihood of the realizability of deferred tax assets generated in the current year. Jurisdictions with a projected loss for the year or a year-to-date loss for which no tax benefit can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the composition and timing of actual earnings compared to annual projections. The estimates used to compute the provision or benefit for income taxes may change as new events occur, additional information is obtained or the Company’s tax environment changes. To the extent that the expected annual effective income tax rate changes, the effect of the change on prior interim periods is included in the income tax provision in the period in which the change in estimate occurs. The Company’s income tax expense (benefit) and effective tax rate for the three months ended March 31, 2018 and 2017 were as follows (in thousands, except percentages): Three months ended March 31, 2018 2017 Income tax expense (benefit) $ 1,234 $ (772 ) Effective tax rate 24 % 26 % The tax rate is affected by the Company being a U.S. resident taxpayer, the tax rates in the U.S. and other jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction and the relative amount of losses or income for which no benefit or expense is recognized. The effective tax rate was impacted by the geographic income mix in 2018 as compared to 2017, primarily related to United States pre-tax income of $1.1 million and $1.8 million of tax credits not benefited due to a valuation allowance for the three months ended March 31, 2018, compared to a United States pre-tax loss of $5.6 million and non-deductible stock-based compensation expense of $1.9 million for the three months ended March 31, 2017. The Tax Cuts and Jobs Act, or the Tax Act, was enacted on December 22, 2017. The Tax Act reduces the US federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The Company is applying the guidance in Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act when accounting for the enactment-date effects of the Tax Act. At March 31, 2018, the Company has not completed its accounting for all of the tax effects of the Tax Act; however it has made reasonable estimates of the tax effects. In addition, the Company’s estimates may also be affected as it gains a more thorough understanding of the tax law and certain aspects of the Tax Act are clarified by the taxing authorities. The Tax Act subjects a US shareholder to tax on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Given the complexity of the GILTI provisions, the Company is still evaluating the effects of the GILTI provisions and has not yet determined its accounting policy. At March 31, 2018, because the Company is still evaluating the GILTI provisions and its analysis of future taxable income that is subject to GILTI, the Company has included GILTI related to current-year operations only in its estimated annual effective tax rate and has not provided additional GILTI on deferred items. The Company will continue to refine its calculations, which may result in changes to this expected impact. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 1 2 . Accumulated other comprehensive loss The components of accumulated other comprehensive loss were as follows (in thousands): Foreign currency translation Retirement related benefit plans Total Balance at December 31, 2017 $ (3,374 ) $ (1,698 ) $ (5,072 ) Other comprehensive income (loss) before reclassification 205 (29 ) 176 Amounts reclassified from accumulated other comprehensive loss — 7 7 Tax effects — 10 10 Other comprehensive income (loss) 205 (12 ) 193 Balance at March 31, 2018 $ (3,169 ) $ (1,710 ) $ (4,879 ) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 3 . Related party transactions At March 31, 2018 and December 31, 2017, the Company had obligations to related parties for $0.1 million recorded in other accrued expenses and current liabilities. At March 31, 2018 and December 31, 2017, the Company had receivables from an equity investment for $0.5 million recorded in other long-term assets. See Note 16 – Subsequent events, Purchase of FluiDyna GmbH |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 4 . 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 motions and allowed the Company to file a motion for summary judgment on the issue of whether MSC can prove damages. On December 13, 2017, the court granted Altair’s motion for summary judgment and dismissed MSC’s claim of trade secret misappropriation. 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. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 1 5 . 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 income (loss) 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 subscription 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 following tables are in thousands: Three months ended March 31, 2018 Software CES All other Total Revenue $ 77,616 $ 12,080 $ 2,035 $ 91,731 Adjusted EBITDA $ 7,152 $ 1,056 $ (534 ) $ 7,674 Three months ended March 31, 2017 Software CES All other Total Revenue $ 63,068 $ 12,229 $ 1,585 $ 76,882 Adjusted EBITDA $ 2,933 $ 1,029 $ (1,053 ) $ 2,909 Three months ended March 31, 2018 2017 Reconciliation of Adjusted EBITDA to U.S. GAAP Income (loss) before income taxes: Adjusted EBITDA $ 7,674 $ 2,909 Stock-based compensation expense (216 ) (2,869 ) Interest expense (16 ) (611 ) Interest income and other (1) 1,255 85 Depreciation and amortization (3,543 ) (2,474 ) Income (loss) before income taxes $ 5,154 $ (2,960 ) (1) Includes a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income and a non-recurring adjustment for royalty contracts resulting in $0.9 million of expense for the three months ended March 31, 2018. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16 . Subsequent events Asset purchase of CANDI Controls, Inc. In April 2018, the Company entered into an asset purchase agreement with California-based CANDI Controls, Inc. (“CANDI”) to acquire all of the intellectual property assets of CANDI for $2.4 million. The sale was approved by the bankruptcy court on April 25, 2018, and the asset purchase was completed on April 26, 2018. CANDI developed a modern platform which supports multiple data protocols for edge gateway computers to communicate with a constellation of Internet of Things (“IoT”) devices. CANDI’s software is designed to easily connect systems and equipment with cloud-based monitoring and control services to help organizations improve performance, conserve resources, and cut operational costs. Sensor data can be analyzed, visualized, and processed with machine learning and predictive analytics tools to forecast performance and prescribe actions consistent with business objectives. Purchase of FluiDyna GmbH In May 2018, the Company purchased the remaining equity interests in FluiDyna GmbH (“FluiDyna”) for aggregate consideration of EUR 2.4 million. At the time of the acquisition, FluiDyna owed the Company EUR 0.4 million in loans and accrued interest that will be settled as part of the transaction. Prior to the purchase of the remaining equity interests, the Company owned 24% of FluiDyna. FluiDyna developed NVIDIA CUDA and GPU-based Computational Fluid Dynamics (CFD) and numerical simulation technologies. The Company made an initial investment in FluiDyna in 2015. FluiDyna’s simulation software products ultraFluidx and nanoFluidx have been available to the Company’s customers through the Altair Partner Alliance and also offered as standalone licenses. ultraFluidX solves large scale internal and external aerodynamics problems for a broad class of problems including ultra-fast prediction and evaluation of vehicle, building, and environmental aerodynamics. nanoFluidX is a fluid dynamics simulation tool based on the smoothed particle hydrodynamics method to predict the flow in complex geometries with complex motion. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Accordingly, the accompanying statements do not include all the information and notes required by GAAP for complete financial statements. The accompanying consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the year ended December 31, 2017, included in the most recent Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. The preparation of the 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. Considerable judgment is often involved in making these determinations; use of different assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results may differ from those estimates. In addition, the results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for any future period. There have been no material changes to Altair’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The Company has concluded that all material transactions that have occurred that require disclosure or adjustments to the consolidated financial statements have been reported herein. See Note 16 – Subsequent events for additional information. |
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 sheet that sum to the total of the amounts reported in the consolidated statement of cash flows (in thousands): March 31, 2018 December 31, 2017 Cash and cash equivalents $ 63,196 $ 39,213 Restricted cash included in other long-term assets 358 365 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 63,554 $ 39,578 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. |
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 activities. The tax credit is deductible from French income tax and any excess is carried forward three years. After three years, any unused credit may be reimbursed to the Company by the French government. As of March 31, 2018, the Company had approximately $10.2 million receivable from the French government related to CIR, of which $2.4 million is recorded in income tax receivable and the remaining $7.8 million is recorded in other long-term assets. CIR is subject to customary audit by French tax authorities. |
Assets Held for Sale | Assets held for sale Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. Depreciation expense is not recognized on assets held for sale. On March 30, 2018, the Company signed a letter of intent to sell the building that is used as the headquarters for the Company’s toggled subsidiary. A purchase agreement is presently under negotiation. As of March 31, 2018, the building and related assets of $2.1 million were recorded in prepaid expenses and other current assets. |
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. The put right option is terminated if the shareholders sell their shares. Classification of the of instrument shall remain as mezzanine equity until one of the following three events take place: (1) shares are sold on the open market; (2) a redemption feature lapses; or (3) there is a modification of the terms of the instrument. |
Income (Loss) Per Share | Income (loss) per share Basic income (loss) 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 income (loss) 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 income (loss) per share amounts (in thousands, except per share data): Three months ended March 31, 2018 2017 Numerator: Net income (loss) $ 3,920 $ (2,188 ) Denominator: Denominator for basic income (loss) per share—weighted average shares 63,638 50,132 Effect of dilutive securities, stock options 8,752 — Denominator for dilutive income (loss) per share 72,390 50,132 Net income (loss) per share attributable to common stockholders, basic $ 0.06 $ (0.04 ) Net income (loss) per share attributable to common stockholders, diluted $ 0.05 $ (0.04 ) The computation of diluted income (loss) 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 period or due to a net loss in the period. For the three months ended March 31, 2018, there were no anti-dilutive shares excluded from the computation of income (loss) per share. For the three months ended March 31, 2017, there were 9.4 million anti-dilutive shares excluded from the computation of income (loss) per share. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 sheet that sum to the total of the amounts reported in the consolidated statement of cash flows (in thousands): March 31, 2018 December 31, 2017 Cash and cash equivalents $ 63,196 $ 39,213 Restricted cash included in other long-term assets 358 365 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 63,554 $ 39,578 |
Computation of Numerators and Denominators Used in Basic and Diluted Income (Loss) per Share Amounts | The following table sets forth the computation of the numerators and denominators used in the basic and diluted income (loss) per share amounts (in thousands, except per share data): Three months ended March 31, 2018 2017 Numerator: Net income (loss) $ 3,920 $ (2,188 ) Denominator: Denominator for basic income (loss) per share—weighted average shares 63,638 50,132 Effect of dilutive securities, stock options 8,752 — Denominator for dilutive income (loss) per share 72,390 50,132 Net income (loss) per share attributable to common stockholders, basic $ 0.06 $ (0.04 ) Net income (loss) per share attributable to common stockholders, diluted $ 0.05 $ (0.04 ) |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, 2018 2017 Raw materials $ — $ — Finished goods 1,051 1,980 Total inventory – net $ 1,051 $ 1,980 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following (in thousands): March 31, December 31, 2018 2017 Land $ 7,994 $ 7,994 Building and improvements 12,825 15,185 Computer equipment and software 33,645 32,103 Office furniture and equipment 7,850 6,751 Leasehold improvements 6,300 6,467 Total property and equipment 68,614 68,500 Less: accumulated depreciation and amortization 38,113 37,054 Property and equipment, net $ 30,501 $ 31,446 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 $ 62,706 Purchase price adjustment 114 Effects of foreign currency translation 951 Balance at March 31, 2018 $ 63,771 |
Summary of Other Intangible Assets | A summary of other intangible assets is shown below (in thousands): March 31, 2018 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 years $ 26,357 $ 11,849 $ 14,508 Customer relationships 7 years 11,930 6,532 5,398 Other intangibles 10 years 149 61 88 Total definite-lived intangible assets 38,436 18,442 19,994 Indefinite-lived intangible assets: Trade names 2,819 2,819 Total other intangible assets $ 41,255 $ 18,442 $ 22,813 December 31, 2017 Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets: Developed technology 4 years $ 25,947 $ 9,909 $ 16,038 Customer relationships 7 years 11,794 6,195 5,599 Other intangibles 10 years 143 57 86 Total definite-lived intangible assets 37,884 16,161 21,723 Indefinite-lived intangible assets: Trade names 2,738 2,738 Total other intangible assets $ 40,622 $ 16,161 $ 24,461 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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): March 31, December 31, 2018 2017 Accrued VAT 4,709 3,916 Income taxes payable 3,976 3,724 Accrued professional fees 2,434 2,500 Accrued royalties 2,798 2,037 Government grants 879 712 Defined contribution plan liabilities 814 1,274 Self-insurance and other insurance reserves 803 601 Billings in excess of cost 758 832 Related party liabilities 60 119 Other current liabilities 4,255 6,029 $ 21,486 $ 21,744 |
Summary of Other Long-term Liabilities | The following table provides details of other long-term liabilities (in thousands): March 31, December 31, 2018 2017 Pension and other post retirement liabilities $ 7,953 $ 7,670 Deferred tax liabilities 1,623 1,620 Other liabilities 4,603 8,357 $ 14,179 $ 17,647 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Restricted Stock Units Awarded | The following table summarizes the restricted stock units, or RSUs, awarded under the 2017 Plan for the period: Number of RSUs Weighted average remaining contractual term (years) Outstanding at January 1, 2018 — Granted 58,295 Vested — Forfeited — Outstanding at March 31, 2018 58,295 9.9 |
Summary of Stock-Based Compensation | The stock-based compensation expense was recorded as follows (in thousands): Three months ended March 31, 2018 2017 Cost of revenue – software $ 8 $ 5 Research and development 47 775 Sales and marketing 41 431 General and administrative 120 1,658 Total stock-based compensation expense $ 216 $ 2,869 |
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 exercise price per share Weighted average remaining contractual term (years) Outstanding at January 1, 2018 6,441,972 $ 0.000025 19 Exercised (369,508 ) $ 0.000025 Forfeited — $ 0.000025 Outstanding at March 31, 2018 6,072,464 $ 0.000025 19 Exercisable at March 31, 2018 6,072,464 $ 0.000025 19 |
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 Options Weighted average exercise price per share Weighted average remaining contractual term (years) Outstanding at January 1, 2018 888,864 $ 0.67 2.5 Exercised (204,084 ) $ 0.64 Forfeited — — Outstanding at March 31, 2018 684,780 $ 0.68 2.1 Exercisable at March 31, 2018 684,780 $ 0.68 2.1 |
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 options Weighted average exercise price per share Weighted average remaining contractual term (years) Outstanding at January 1, 2018 2,183,127 $ 3.74 7.3 Granted — — Exercised (57,935 ) $ 2.90 Forfeited (5,400 ) $ 5.13 Outstanding at March 31, 2018 2,119,792 $ 3.76 7.1 Exercisable at March 31, 2018 1,183,484 $ 3.02 6.0 |
Other (income) expense, net (Ta
Other (income) expense, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of Other (income) expense, net | Other (income) expense, net consists of the following (in thousands): Three months ended March 31, 2018 2017 Foreign exchange (gain) loss $ (797 ) $ 444 Other (103 ) (85 ) Other (income) expense, net $ (900 ) $ 359 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) and Effective Tax Rate | The Company’s income tax expense (benefit) and effective tax rate for the three months ended March 31, 2018 and 2017 were as follows (in thousands, except percentages): Three months ended March 31, 2018 2017 Income tax expense (benefit) $ 1,234 $ (772 ) Effective tax rate 24 % 26 % |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss were as follows (in thousands): Foreign currency translation Retirement related benefit plans Total Balance at December 31, 2017 $ (3,374 ) $ (1,698 ) $ (5,072 ) Other comprehensive income (loss) before reclassification 205 (29 ) 176 Amounts reclassified from accumulated other comprehensive loss — 7 7 Tax effects — 10 10 Other comprehensive income (loss) 205 (12 ) 193 Balance at March 31, 2018 $ (3,169 ) $ (1,710 ) $ (4,879 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables are in thousands: Three months ended March 31, 2018 Software CES All other Total Revenue $ 77,616 $ 12,080 $ 2,035 $ 91,731 Adjusted EBITDA $ 7,152 $ 1,056 $ (534 ) $ 7,674 Three months ended March 31, 2017 Software CES All other Total Revenue $ 63,068 $ 12,229 $ 1,585 $ 76,882 Adjusted EBITDA $ 2,933 $ 1,029 $ (1,053 ) $ 2,909 |
Reconciliation of U.S. Gaap Income (Loss) Before Income Taxes to Adjusted EBITDA | Three months ended March 31, 2018 2017 Reconciliation of Adjusted EBITDA to U.S. GAAP Income (loss) before income taxes: Adjusted EBITDA $ 7,674 $ 2,909 Stock-based compensation expense (216 ) (2,869 ) Interest expense (16 ) (611 ) Interest income and other (1) 1,255 85 Depreciation and amortization (3,543 ) (2,474 ) Income (loss) before income taxes $ 5,154 $ (2,960 ) (1) Includes a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income and a non-recurring adjustment for royalty contracts resulting in $0.9 million of expense for the three months ended March 31, 2018. |
Accounting Policies - Reconcili
Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 63,196 | $ 39,213 | ||
Restricted cash included in other long-term assets | 358 | 365 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 63,554 | $ 39,578 | $ 16,834 | $ 17,139 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounting Policies [Line Items] | |||
Anti-dilutive shares excluded from computation of income (loss) per share | 0 | 9,400,000 | |
Class A Common Stock [Member] | Put Option [Member] | |||
Accounting Policies [Line Items] | |||
Shares issued | 200,000 | ||
Put right, exercise price | $ 12.50 | ||
Put right exercise period from date of purchase | 5 years | ||
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 | $ 10.2 | ||
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 | 2.4 | ||
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 | 7.8 | ||
Prepaid Expenses and Other Current Assets [Member] | |||
Accounting Policies [Line Items] | |||
Asset held for sale of building and related assets | $ 2.1 |
Accounting Policies - Computati
Accounting Policies - Computation of Numerators and Denominators Used in Basic and Diluted Income (Loss) per Share Amounts (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income (loss) | $ 3,920 | $ (2,188) |
Weighted average shares outstanding: | ||
Denominator for basic income (loss) per share—weighted average shares | 63,638 | 50,132 |
Effect of dilutive securities, stock options | 8,752 | |
Denominator for dilutive income (loss) per share | 72,390 | 50,132 |
Net income (loss) per share attributable to common stockholders, basic | $ 0.06 | $ (0.04) |
Net income (loss) per share attributable to common stockholders, diluted | $ 0.05 | $ (0.04) |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,051 | $ 1,980 |
Total inventory – net | $ 1,051 | $ 1,980 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 68,614 | $ 68,500 |
Less: accumulated depreciation and amortization | 38,113 | 37,054 |
Property and equipment, net | 30,501 | 31,446 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,994 | 7,994 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,825 | 15,185 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 33,645 | 32,103 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,850 | 6,751 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 6,300 | $ 6,467 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 1.6 | $ 1.5 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill Attributable to Software Reporting Segment (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance at December 31, 2017 | $ 62,706 |
Purchase price adjustment | 114 |
Effects of foreign currency translation | 951 |
Balance at March 31, 2018 | $ 63,771 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Summary Of Other Intangible Assets [Line Items] | ||
Gross carrying amount | $ 38,436 | $ 37,884 |
Accumulated amortization | 18,442 | 16,161 |
Net carrying amount | 19,994 | 21,723 |
Gross carrying amount | 41,255 | 40,622 |
Accumulated amortization | 18,442 | 16,161 |
Net carrying amount | $ 22,813 | $ 24,461 |
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 | $ 26,357 | $ 25,947 |
Accumulated amortization | 11,849 | 9,909 |
Net carrying amount | $ 14,508 | $ 16,038 |
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 | $ 11,930 | $ 11,794 |
Accumulated amortization | 6,532 | 6,195 |
Net carrying amount | $ 5,398 | $ 5,599 |
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 | $ 149 | $ 143 |
Accumulated amortization | 61 | 57 |
Net carrying amount | 88 | 86 |
Trade Names [Member] | ||
Summary Of Other Intangible Assets [Line Items] | ||
Net carrying amount | $ 2,819 | $ 2,738 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 1,940 | $ 943 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Accrued VAT | $ 4,709 | $ 3,916 |
Income taxes payable | 3,976 | 3,724 |
Accrued professional fees | 2,434 | 2,500 |
Accrued royalties | 2,798 | 2,037 |
Government grants | 879 | 712 |
Defined contribution plan liabilities | 814 | 1,274 |
Self-insurance and other insurance reserves | 803 | 601 |
Billings in excess of cost | 758 | 832 |
Related party liabilities | 60 | 119 |
Other current liabilities | 4,255 | 6,029 |
Other accrued expenses and current liabilities | $ 21,486 | $ 21,744 |
Other Liabilities - Summary o46
Other Liabilities - Summary of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Pension and other post retirement liabilities | $ 7,953 | $ 7,670 |
Deferred tax liabilities | 1,623 | 1,620 |
Other liabilities | 4,603 | 8,357 |
Other long-term liabilities | $ 14,179 | $ 17,647 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) | 3 Months Ended | ||||
Mar. 31, 2018USD ($)Installment$ / sharesshares | Dec. 31, 2017$ / sharesshares | Sep. 27, 2017shares | Dec. 31, 2012shares | Dec. 31, 2001shares | |
NSO Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options, outstanding | 6,072,464 | 6,441,972 | |||
Exercise price stock options outstanding | $ / shares | $ 0.000025 | $ 0.000025 | |||
Contractual term | 35 years | ||||
Intrinsic value of options exercised | $ | $ 9,900 | ||||
ISO Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options, outstanding | 684,780 | 888,864 | |||
Exercise price stock options outstanding | $ / shares | $ 0.68 | $ 0.67 | |||
Contractual term | 10 years | ||||
Intrinsic value of options exercised | $ | $ 5,100,000 | ||||
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 | 2,119,792 | 2,183,127 | |||
Exercise price stock options outstanding | $ / shares | $ 3.76 | $ 3.74 | |||
Contractual term | 10 years | ||||
Intrinsic value of options exercised | $ | $ 1,300,000 | ||||
Total requisite service period of awards | 4 years | ||||
Compensation cost related to nonvested awards not yet recognized | $ | $ 1,300,000 | ||||
Weighted average period of recognition | 2 years 6 months | ||||
2012 Plan [Member] | Class A Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized | 5,200,000 | ||||
2017 Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of RSUs | $ / shares | $ 26.84 | ||||
Number of vesting equal annual installments | Installment | 4 | ||||
2017 Plan [Member] | Class A Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for issuance | 8,104,971 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity under NSO Plan (Detail) - NSO Plan [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 6,441,972 | |
Number of options, Exercised | (369,508) | |
Number of options, Forfeited | 0 | |
Number of options, Outstanding, Ending Balance | 6,072,464 | 6,441,972 |
Number of options, Exercisable | 6,072,464 | |
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, Exercised | 0.000025 | |
Weighted average exercise price per share, Forfeited | 0.000025 | |
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 | 19 years |
Weighted average remaining contractual term (years), Exercisable | 19 years |
Stock-based Compensation - Su49
Stock-based Compensation - Summary of Stock Option Activity under ISO Plan (Detail) - ISO Plan [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 888,864 | |
Number of options, Exercised | (204,084) | |
Number of options, Forfeited | 0 | |
Number of options, Outstanding, Ending Balance | 684,780 | 888,864 |
Number of options, Exercisable | 684,780 | |
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 | $ 0.67 | |
Weighted average exercise price per share, Exercised | 0.64 | |
Weighted average exercise price per share, Forfeited | 0 | |
Weighted average exercise price per share, Outstanding, Ending Balance | 0.68 | $ 0.67 |
Weighted average exercise price per share, Exercisable | $ 0.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 2 years 1 month 6 days | 2 years 6 months |
Weighted average remaining contractual term (years), Exercisable | 2 years 1 month 6 days |
Stock-based Compensation - Su50
Stock-based Compensation - Summary of Stock Option Activity under 2012 Plan (Detail) - 2012 Plan [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, Outstanding, Beginning Balance | 2,183,127 | |
Granted | 0 | |
Number of options, Exercised | (57,935) | |
Number of options, Forfeited | (5,400) | |
Number of options, Outstanding, Ending Balance | 2,119,792 | 2,183,127 |
Number of options, Exercisable | 1,183,484 | |
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 | $ 3.74 | |
Weighted average exercise price per share, Granted | 0 | |
Weighted average exercise price per share, Exercised | 2.90 | |
Weighted average exercise price per share, Forfeited | 5.13 | |
Weighted average exercise price per share, Outstanding, Ending Balance | 3.76 | $ 3.74 |
Weighted average exercise price per share, Exercisable | $ 3.02 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Outstanding | 7 years 1 month 6 days | 7 years 3 months 18 days |
Weighted average remaining contractual term (years), Exercisable | 6 years |
Stock-based Compensation - Su51
Stock-based Compensation - Summary of Restricted Stock Units Awarded (Detail) - 2017 Plan [Member] - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of RSUs, Granted | 58,295 |
Number of RSUs, Outstanding Ending Balance | 58,295 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Weighted average remaining contractual term (years), Outstanding | 9 years 10 months 24 days |
Stock-based Compensation - Su52
Stock-based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 216 | $ 2,869 |
Cost of Revenue – Software [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 8 | 5 |
Research and development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 47 | 775 |
Sales and marketing [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 41 | 431 |
General and administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 120 | $ 1,658 |
Other (income) expense, net - S
Other (income) expense, net - Schedule of Other (income) expense, net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Foreign exchange (gain) loss | $ (797) | $ 444 |
Other | (103) | (85) |
Other (income) expense, net | $ (900) | $ 359 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 1,234 | $ (772) |
Effective tax rate | 24.00% | 26.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States pre-tax income (loss) | $ 1.1 | $ (5.6) | |
Tax credits not benefited due to valluation allowance | $ 1.8 | ||
Non-deductible stock-based compensation expense | $ 1.9 | ||
U.S. Federal statutory income tax rate | 21.00% | 35.00% |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 60,591 | |
Other comprehensive income (loss) before reclassification | 176 | |
Amounts reclassified from accumulated other comprehensive loss | 7 | |
Tax effects | 10 | |
Total other comprehensive income (loss) | 193 | $ 346 |
Ending balance | 65,125 | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (3,374) | |
Other comprehensive income (loss) before reclassification | 205 | |
Total other comprehensive income (loss) | 205 | |
Ending balance | (3,169) | |
Retirement Related Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (1,698) | |
Other comprehensive income (loss) before reclassification | (29) | |
Amounts reclassified from accumulated other comprehensive loss | 7 | |
Tax effects | 10 | |
Total other comprehensive income (loss) | (12) | |
Ending balance | (1,710) | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (5,072) | |
Ending balance | $ (4,879) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Obligations to related parties, current | $ 60 | $ 119 |
Other accrued expenses and current liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Obligations to related parties, current | 100 | 100 |
Other long-term assets [Member] | ||
Related Party Transaction [Line Items] | ||
Receivables from equity investment | $ 500 | $ 500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Nov. 13, 2014USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Damages amount on MSC litigation | $ 0.4 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 91,731 | $ 76,882 |
Adjusted EBITDA | 7,674 | 2,909 |
Software [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 77,616 | 63,068 |
Adjusted EBITDA | 7,152 | 2,933 |
CES [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 12,080 | 12,229 |
Adjusted EBITDA | 1,056 | 1,029 |
All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,035 | 1,585 |
Adjusted EBITDA | $ (534) | $ (1,053) |
Segment Information - Reconcili
Segment Information - Reconciliation of U.S. Gaap Income (Loss) Before Income Taxes to Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting [Abstract] | ||
Adjusted EBITDA | $ 7,674 | $ 2,909 |
Stock-based compensation expense | (216) | (2,869) |
Interest expense | (16) | (611) |
Interest income and other | 1,255 | 85 |
Depreciation and amortization | (3,543) | (2,474) |
Income (loss) before income taxes | $ 5,154 | $ (2,960) |
Segment Information - Reconci62
Segment Information - Reconciliation of U.S. Gaap Income (Loss) Before Income Taxes to Adjusted EBITDA (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |
Income recognized in non-recurring adjustment for change in estimated legal expenses | $ 2 |
Expense recognized in non-recurring adjustment for royalty contracts | $ 0.9 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] € in Millions, $ in Millions | May 04, 2018EUR (€) | Apr. 26, 2018USD ($) |
FluiDyna GmbH [Member] | ||
Subsequent Event [Line Items] | ||
Assets acquired | € 2.4 | |
Receivables from equity investment | € 0.4 | |
Business combination, prior equity interests | 24.00% | |
Intellectual Property [Member] | Asset Purchase Agreement [Member] | CANDI Controls, Inc [Member] | ||
Subsequent Event [Line Items] | ||
Assets acquired | $ | $ 2.4 |