Cover
Cover - shares | 3 Months Ended | |
Feb. 28, 2021 | Mar. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-19417 | |
Entity Registrant Name | PROGRESS SOFTWARE CORP /MA | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2746201 | |
Entity Address, Address Line One | 14 Oak Park | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01730 | |
City Area Code | 781 | |
Local Phone Number | 280-4000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | PRGS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 44,003,055 | |
Entity Central Index Key | 0000876167 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --11-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 107,698 | $ 97,990 |
Short-term investments | 6,673 | 8,005 |
Total cash, cash equivalents and short-term investments | 114,371 | 105,995 |
Accounts receivable (less allowances of $732 and $1,315, respectively) | 77,573 | 84,040 |
Unbilled receivables and contract assets | 24,099 | 24,917 |
Other current assets | 23,266 | 23,983 |
Total current assets | 239,309 | 238,935 |
Long-term unbilled receivables and contract assets | 14,334 | 17,133 |
Property and equipment, net | 29,838 | 29,817 |
Intangible assets, net | 202,347 | 212,747 |
Goodwill | 491,701 | 491,726 |
Deferred tax assets | 13,613 | 14,490 |
Right-of-use lease assets | 31,265 | 30,635 |
Other assets | 4,650 | 6,299 |
Total assets | 1,027,057 | 1,041,782 |
Current liabilities: | ||
Current portion of long-term debt, net | 20,124 | 18,242 |
Accounts payable | 10,105 | 9,978 |
Accrued compensation and related taxes | 21,213 | 36,816 |
Dividends payable to shareholders | 7,901 | 7,904 |
Short-term operating lease liabilities | 7,154 | 7,015 |
Income taxes payable | 870 | 1,899 |
Other accrued liabilities | 14,930 | 14,302 |
Short-term deferred revenue | 183,443 | 166,387 |
Total current liabilities | 265,740 | 262,543 |
Long-term debt, net | 343,758 | 364,260 |
Long-term operating lease liabilities | 27,342 | 26,966 |
Long-term deferred revenue | 25,535 | 26,908 |
Other noncurrent liabilities | 12,129 | 15,092 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value; authorized, 10,000,000 shares; issued, none | 0 | 0 |
Common stock, $0.01 par value, and additional paid-in capital; authorized, 200,000,000 shares; issued and outstanding, 43,999,982 shares in 2021 and 44,240,635 shares in 2020 | 312,137 | 306,244 |
Retained earnings | 71,118 | 72,547 |
Accumulated other comprehensive loss | (30,702) | (32,778) |
Total shareholders’ equity | 352,553 | 346,013 |
Total liabilities and shareholders’ equity | $ 1,027,057 | $ 1,041,782 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Assets | ||
Allowance for accounts receivable | $ 732 | $ 1,315 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 43,999,982 | 44,240,635 |
Common stock, shares outstanding (in shares) | 43,999,982 | 44,240,635 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Revenue: | ||
Total revenue | $ 121,280 | $ 109,683 |
Costs of revenue: | ||
Total costs of revenue | 17,991 | 14,886 |
Amortization of acquired intangibles | 3,521 | 1,646 |
Gross profit | 103,289 | 94,797 |
Operating expenses: | ||
Sales and marketing | 29,469 | 24,198 |
Product development | 24,548 | 21,654 |
General and administrative | 13,424 | 12,748 |
Amortization of acquired intangibles | 6,879 | 4,131 |
Restructuring expenses | 1,157 | 1,040 |
Acquisition-related expenses | 396 | 314 |
Total operating expenses | 75,873 | 64,085 |
Income from operations | 27,416 | 30,712 |
Other (expense) income: | ||
Interest expense | (2,514) | (2,792) |
Interest income and other, net | 119 | 211 |
Foreign currency loss, net | (257) | (816) |
Total other expense, net | (2,652) | (3,397) |
Income before income taxes | 24,764 | 27,315 |
Provision for income taxes | 5,803 | 6,199 |
Net income | $ 18,961 | $ 21,116 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.43 | $ 0.47 |
Diluted (in dollars per share) | $ 0.42 | $ 0.46 |
Weighted average shares outstanding: | ||
Basic (in shares) | 44,108 | 44,897 |
Diluted (in shares) | 44,652 | 45,515 |
Cash dividends declared per common share (in dollars per share) | $ 0.175 | $ 0.165 |
Software licenses | ||
Revenue: | ||
Total revenue | $ 33,317 | $ 30,629 |
Cost of Goods and Services Sold | 1,151 | 1,389 |
Maintenance and services | ||
Revenue: | ||
Total revenue | 87,963 | 79,054 |
Cost of Goods and Services Sold | $ 13,319 | $ 11,851 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 18,961 | $ 21,116 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 1,225 | (1,208) |
Unrealized gain (loss) on hedging activity, net of tax provision of $271 and tax benefit of $708 for the first quarter of 2021 and 2020, respectively | 837 | (2,106) |
Unrealized gain on investments, net of tax benefit of $42 and tax provision of $4 for the first quarter of 2021 and 2020, respectively | 14 | 71 |
Total other comprehensive income (loss), net of tax | 2,076 | (3,243) |
Comprehensive income | $ 21,037 | $ 17,873 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Tax provision (benefit) on unrealized loss on hedging activity | $ 271 | $ (708) |
Tax provision (benefit) on accumulated unrealized gain on investments | $ (42) | $ 4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Nov. 30, 2019 | 45,037,000 | ||||
Beginning balance at Nov. 30, 2019 | $ 330,282 | $ 450 | $ 295,503 | $ 64,303 | $ (29,974) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock under employee stock purchase plan (in shares) | 39,000 | ||||
Issuance of stock under employee stock purchase plan | 1,194 | 1,194 | |||
Exercise of stock options (in shares) | 62,000 | ||||
Exercise of stock options | 1,941 | $ 1 | 1,940 | ||
Vesting of restricted stock units and release of deferred stock units (in shares) | 57,000 | ||||
Vesting of restricted stock units and release of deferred stock units | 0 | $ 1 | (1) | ||
Withholding tax payments related to net issuance of restricted stock units | (1,949) | (1,949) | |||
Stock-based compensation | 6,051 | 6,051 | |||
Dividends declared | $ (7,435) | (7,435) | |||
Treasury stock repurchases and retirements (in shares) | (400,000) | (426,000) | |||
Treasury stock repurchases and retirements | $ (20,000) | $ (4) | (6,487) | (13,509) | |
Net income | 21,116 | 21,116 | |||
Other comprehensive income (loss) | (3,243) | (3,243) | |||
Ending balance (in shares) at Feb. 29, 2020 | 44,769,000 | ||||
Ending balance at Feb. 29, 2020 | $ 327,957 | $ 448 | 296,251 | 64,475 | (33,217) |
Beginning balance (in shares) at Nov. 30, 2020 | 44,240,635 | 44,241,000 | |||
Beginning balance at Nov. 30, 2020 | $ 346,013 | $ 442 | 305,802 | 72,547 | (32,778) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock under employee stock purchase plan (in shares) | 56,000 | ||||
Issuance of stock under employee stock purchase plan | 1,545 | $ 1 | 1,544 | ||
Exercise of stock options (in shares) | 28,000 | ||||
Exercise of stock options | 917 | 917 | |||
Vesting of restricted stock units and release of deferred stock units (in shares) | 28,000 | ||||
Vesting of restricted stock units and release of deferred stock units | 0 | ||||
Withholding tax payments related to net issuance of restricted stock units | (892) | (892) | |||
Stock-based compensation | 6,784 | 6,784 | |||
Dividends declared | $ (7,851) | (7,851) | |||
Treasury stock repurchases and retirements (in shares) | (400,000) | (353,000) | |||
Treasury stock repurchases and retirements | $ (15,000) | $ (3) | (2,458) | (12,539) | |
Net income | 18,961 | 18,961 | |||
Other comprehensive income (loss) | $ 2,076 | 2,076 | |||
Ending balance (in shares) at Feb. 28, 2021 | 43,999,982 | 44,000,000 | |||
Ending balance at Feb. 28, 2021 | $ 352,553 | $ 440 | $ 311,697 | $ 71,118 | $ (30,702) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 18,961 | $ 21,116 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and equipment | 1,315 | 1,717 |
Amortization of acquired intangibles and other | 10,547 | 5,952 |
Stock-based compensation | 6,784 | 6,051 |
Non-cash lease expense | 2,138 | 3,087 |
Loss on disposal of property and equipment | 3 | 57 |
Deferred income taxes | 656 | 1,967 |
Allowances for bad debt and sales credits | (382) | 236 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,841 | 9,810 |
Other assets | 215 | 2,010 |
Accounts payable and accrued liabilities | (17,762) | (20,893) |
Lease liabilities | (2,258) | (2,356) |
Income taxes payable | (1,469) | 373 |
Deferred revenue | 15,099 | 3,889 |
Net cash flows from operating activities | 44,688 | 33,016 |
Cash flows from (used in) investing activities: | ||
Purchases of investments | 0 | (4,259) |
Sales and maturities of investments | 1,300 | 7,767 |
Purchases of property and equipment | (1,166) | (1,148) |
Decrease in escrow receivable | 2,130 | 0 |
Net cash flows from investing activities | 2,264 | 2,360 |
Cash flows from (used in) financing activities: | ||
Proceeds from stock-based compensation plans | 3,485 | 4,245 |
Payments for taxes related to net share settlements of equity awards | (892) | (1,949) |
Repurchases of common stock | (15,000) | (20,000) |
Dividend payments to shareholders | (7,854) | (7,468) |
Payment of principal on long-term debt | (18,763) | (1,882) |
Net cash flows used in financing activities | (39,024) | (27,054) |
Effect of exchange rate changes on cash | 1,780 | (1,487) |
Net increase in cash and cash equivalents | 9,708 | 6,835 |
Cash and cash equivalents, beginning of period | 97,990 | 154,259 |
Cash and cash equivalents, end of period | 107,698 | 161,094 |
Supplemental disclosure: | ||
Cash paid for income taxes, net of refunds of $434 in 2021 and $196 in 2020 | 3,703 | 3,364 |
Cash paid for interest | 2,283 | 2,588 |
Non-cash investing and financing activities: | ||
Total fair value of restricted stock awards, restricted stock units and deferred stock units on date vested | 2,088 | 4,652 |
Dividends declared | $ 7,901 | $ 7,465 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Statement of Cash Flows [Abstract] | ||
Proceeds from income tax refunds | $ 434 | $ 196 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Feb. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Company Overview - Progress Software Corporation ("Progress," the "Company," "we," "us," or "our") provides the best products to develop, deploy and manage high-impact business applications. Our comprehensive product stack is designed to make technology teams more productive and we have a deep commitment to the developer community, both open source and commercial alike. With Progress, organizations can accelerate the creation and delivery of strategic business applications, automate the process by which apps are configured, deployed and scaled, and make critical data and content more accessible and secure—leading to competitive differentiation and business success. Over 1,700 independent software vendors ("ISVs"), 100,000 enterprise customers, and 3 million developers rely on Progress to power their applications. Our products are generally sold as perpetual licenses, but certain products also use term licensing models and our cloud-based offerings use a subscription-based model. More than half of our worldwide license revenue is realized through relationships with indirect channel partners, principally ISVs, original equipment manufacturers ("OEMs"), distributors and value-added resellers. ISVs develop and market applications using our technology and resell our products in conjunction with sales of their own products that incorporate our technology. OEMs are companies that embed our products into their own software products or devices. Value-added resellers are companies that add features or services to our product, then resell it as an integrated product or complete "turn-key" solution. We operate in North America and Latin America (the "Americas"); Europe, the Middle East and Africa ("EMEA"); and the Asia Pacific region, through local subsidiaries as well as independent distributors. Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2020, as amended by Form 10-K/A filed on March 30, 2021 ("2020 10-K"). We made no material changes in the application of our significant accounting policies that were disclosed in our 2020 10-K. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our 2020 10-K, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an on-going basis, management evaluates its estimates and records changes in estimates in the period in which they become known. These estimates are based on historical data and experience, as well as various other assumptions that management believes to be reasonable under the circumstances. The most significant estimates relate to: the timing and amount of revenue recognition, including the determination of the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and the transaction price allocated to performance obligations; the realization of tax assets and estimates of tax liabilities; fair values of investments in marketable securities; intangible assets and goodwill valuations; the recognition and disclosure of contingent liabilities; the collectability of accounts receivable; and assumptions used to determine the fair value of stock-based compensation. Actual results could differ from those estimates. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which requires measurement and recognition of expected credit losses for financial assets measured at amortized cost, including accounts receivable, upon initial recognition of that financial asset using a forward-looking expected loss model, rather than an incurred loss model. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses when the fair value is below the amortized cost of the asset, removing the concept of "other-than-temporary" impairments. The Company adopted this standard effective December 1, 2020. The adoption of this standard did not have a material effect on the Company’s condensed consolidated financial statements. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 3 Months Ended |
Feb. 28, 2021 | |
Investments and Cash [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments A summary of our cash, cash equivalents and available-for-sale investments at February 28, 2021 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 87,403 $ — $ — $ 87,403 Money market funds 20,295 — — 20,295 U.S. treasury bonds 4,493 42 — 4,535 Corporate bonds 2,109 29 — 2,138 Total $ 114,300 $ 71 $ — $ 114,371 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2020 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 79,026 $ — $ — $ 79,026 Money market funds 18,964 — — 18,964 U.S. treasury bonds 4,993 58 — 5,051 Corporate bonds 2,913 41 — 2,954 Total $ 105,896 $ 99 $ — $ 105,995 Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands): February 28, 2021 November 30, 2020 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 87,403 $ — $ 79,026 $ — Money market funds 20,295 — 18,964 — U.S. treasury bonds — 4,535 — 5,051 Corporate bonds — 2,138 — 2,954 Total $ 107,698 $ 6,673 $ 97,990 $ 8,005 The fair value of debt securities by contractual maturity is as follows (in thousands): February 28, 2021 November 30, 2020 Due in one year or less $ 4,676 $ 5,998 Due after one year (1) 1,997 2,007 Total $ 6,673 $ 8,005 (1) Includes U.S. treasury bonds and corporate bonds, which are securities representing investments available for current operations and are classified as current on the condensed consolidated balance sheets. We did not hold any investments with continuous unrealized losses as of February 28, 2021 or November 30, 2020. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Cash Flow Hedge On July 9, 2019, we entered into an interest rate swap contract with an initial notional amount of $150.0 million to manage the variability of cash flows associated with approximately one-half of our variable rate debt. The contract matures on April 30, 2024 and requires periodic interest rate settlements. Under this interest rate swap contract, we receive a floating rate based on the greater of 1-month LIBOR or 0.00%, and pay a fixed rate of 1.855% on the outstanding notional amount. We have designated the interes t rate swap as a cash flow hedge and assess the hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative. To the extent that the interest rate swap is highly effective in offsetting the variability of the hedged cash flows, changes in the fair value of the derivative are included as a component of other comprehensive loss on our condensed consolidated balance sheets. Although we have determined at the onset of the hedge that the interest rate swap will be a highly effective hedge throughout the term of the contract, any portion of the fair value swap subsequently determined to be ineffective will be recognized in earnings. As of February 28, 2021 , the fair value of the hedge was a loss of $5.7 million, which was included in other noncurrent liabilities on our condensed consolidated balance sheets. The following table presents our interest rate swap contract where the notional amount reflects the quarterly amortization of the interest rate swap, which is equal to approximately one-half of the corresponding reduction in the balance of our term loan as we make scheduled principal payments. The fair value of the derivative represents the discounted value of the expected future discounted cash flows for the interest rate swap, based on the amortization schedule and the current forward curve for the remaining term of the contract, as of the date of each reporting period (in thousands): February 28, 2021 November 30, 2020 Notional Value Fair Value Notional Value Fair Value Interest rate swap contracts designated as cash flow hedges $ 140,625 $ (5,747) $ 142,500 $ (6,855) Forward Contracts We generally use forward contracts that are not designated as hedging instruments to hedge economically the impact of the variability in exchange rates on intercompany accounts receivable and loans receivable denominated in certain foreign currencies. We generally do not hedge the net assets of our international subsidiaries. All forward contracts are recorded at fair value on the consolidated balance sheets at the end of each reporting period and expire between 30 days and two years from the date the contract was entered. At February 28, 2021, $2.3 million was recorded in other current assets on our condensed consolidated balance sheets. At November 30, 2020, $1.4 million was recorded in other assets on our condensed consolidated balance sheets. In the three months ended February 28, 2021 and February 29, 2020, realized and unrealized gains of $1.7 million and losses of $0.6 million, respectively, from our forward contracts were recognized in foreign currency loss, net, on our condensed consolidated statements of operations. These gains and losses were substantially offset by realized and unrealized losses and gains on the offsetting positions. The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): February 28, 2021 November 30, 2020 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 64,543 $ 2,350 $ 69,031 $ 1,445 Forward contracts to purchase U.S. dollars — — 440 (3) Total $ 64,543 $ 2,350 $ 69,471 $ 1,442 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at February 28, 2021 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 20,295 $ 20,295 $ — $ — U.S. treasury bonds 4,535 — 4,535 — Corporate bonds 2,138 — 2,138 — Foreign exchange derivatives 2,350 — 2,350 — Liabilities Interest rate swap $ (5,747) $ — $ (5,747) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2020 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 18,964 $ 18,964 $ — $ — U.S. treasury bonds 5,051 — 5,051 — Corporate bonds 2,954 — 2,954 — Foreign exchange derivatives 1,442 — 1,442 — Liabilities Interest rate swap $ (6,855) $ — $ (6,855) $ — When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. We did not have any nonrecurring fair value measurements as of February 28, 2021. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Feb. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets are comprised of the following significant classes (in thousands): February 28, 2021 November 30, 2020 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 173,486 $ (117,384) $ 56,102 $ 173,486 $ (113,863) $ 59,623 Customer-related 231,342 (97,256) 134,086 231,342 (91,326) 140,016 Trademarks and trade names 30,440 (19,059) 11,381 30,440 (18,275) 12,165 Non-compete agreement 2,000 (1,222) 778 2,000 (1,057) 943 Total $ 437,268 $ (234,921) $ 202,347 $ 437,268 $ (224,521) $ 212,747 In the first quarter of fiscal years 2021 and 2020, amortization expense related to intangible assets was $10.4 million and $5.8 million, respectively. Future amortization expense for intangible assets as of February 28, 2021, is as follows (in thousands): Remainder of 2021 $ 34,491 2022 44,836 2023 44,560 2024 31,743 2025 21,233 Thereafter 25,484 Total $ 202,347 Goodwill Changes in the carrying amount of goodwill in the three months ended February 28, 2021 are as follows (in thousands): Balance, November 30, 2020 $ 491,726 Translation adjustments (25) Balance, February 28, 2021 $ 491,701 Changes in the goodwill balances by reportable segment in the three months ended February 28, 2021 are as follows (in thousands): November 30, 2020 Translation adjustments February 28, 2021 OpenEdge $ 365,863 $ (25) $ 365,838 Data Connectivity and Integration 19,040 — 19,040 Application Development and Deployment 106,823 — 106,823 Total goodwill $ 491,726 $ (25) $ 491,701 During the quarter ending February 28, 2021, no triggering events occurred that would indicate that it is more likely than not that the carrying values of any of our reporting units exceeded their fair values. |
Business Combinations
Business Combinations | 3 Months Ended |
Feb. 28, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Chef Acquisition On October 5, 2020, we completed the acquisition of Chef Software Inc. (“Chef”) pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated as of September 4, 2020. The acquisition was completed for a base purchase price of $220.0 million, subject to certain customary adjustments as further described in the Merger Agreement (the “Aggregate Consideration”), which was paid in cash. Pursuant to the Merger Agreement, $12.0 million of the Aggregate Consideration was deposited into an escrow account to secure certain indemnification and other potential obligations of the former Chef equity holders. Chef is a global leader in DevOps and DevSecOps, providing complete infrastructure automation to build, deploy, manage and secure applications in modern multi-cloud and hybrid environments, as well as on-premises. Chef has enhanced our position as a trusted provider of the best products to develop, deploy and manage high-impact business applications by providing industry-leading compliance and application automation products for multi-cloud and on-prem infrastructure. The acquisition bolstered our core offerings, enabling customers to respond faster to business demands and improve efficiency. We funded the acquisition through a combination of existing cash resources and by drawing down $98.5 million from our existing revolving credit facility (Note 7). The Aggregate Consideration has been allocated to Chef’s tangible assets, identifiable intangible assets, and assumed liabilities based on their estimated fair values. The preliminary fair value estimates of the net assets acquired are based upon preliminary calculations and valuations, and those estimates and assumptions are subject to change as we obtain additional information for those estimates during the measurement period (up to one year from the acquisition date). The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities was recorded as goodwill. The allocation of the purchase price is as follows (in thousands): Total Life Net working capital $ 52,330 Property, plant and equipment 498 Purchased technology 38,300 5 years Trade name 5,700 5 years Customer relationships 97,300 7 years Other assets 122 Other noncurrent liabilities (841) Lease liabilities, net (1,810) Deferred taxes (7,817) Deferred revenue (12,525) Goodwill 59,858 Net assets acquired $ 231,115 The fair value of the intangible assets was estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to value the acquisition, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted average cost of capital. The valuation assumptions take into consideration our estimates of customer attrition, technology obsolescence, and revenue growth projections. Tangible assets acquired and assumed liabilities were recorded at fair value. The valuation of the assumed deferred revenue was based on our contractual commitment to provide post-contract customer support to Chef customers and future contractual performance obligations under existing hosting arrangements. The fair value of this assumed liability was based on the estimated cost plus a reasonable margin to fulfill these service obligations. A significant portion of the deferred revenue is expected to be recognized in the 12 months following the acquisition. We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $59.9 million of goodwill, which is not deductible for tax purposes. Acquisition-related transaction costs (e.g., legal, due diligence, valuation, and other professional fees) and certain acquisition restructuring and related charges are not included as a component of consideration transferred but are required to be expensed as incurred. During the three months ended February 28, 2021, we incurred approximately $0.4 million of acquisition-related costs, which are included in acquisition-related expenses on our consolidated statement of operations. The operations of Chef are included in our operating results as part of the Application Development and Deployment business segment from the date of acquisition. The amount of revenue of Chef included in our consolidated statement of operations during the three months ended February 28, 2021 was approximately $12.0 million. We determined that disclosing the amount of Chef related earnings included in the consolidated statements of operations is impracticable, as certain operations of Chef were integrated into the operations of the Company from the date of acquisition. Pro Forma Information The following pro forma financial information presents the combined results of operations of Progress and Chef as if the acquisition had occurred on December 1, 2018, after giving effect to certain pro forma adjustments. The pro forma adjustments reflected herein include only those adjustments that are directly attributable to the Chef acquisition and factually supportable. These pro forma adjustments include (i) a decrease in revenue from Chef due to the beginning balance of deferred revenue being adjusted to reflect the fair value of the acquired balance, (ii) a net increase in amortization expense to record amortization expense for the $141.3 million of acquired identifiable intangible assets, (iii) an increase in interest expense to record interest for the period presented as a result of drawing down our revolving credit facility in connection with the acquisition, and (iv) the income tax effect of the adjustments made at the statutory tax rate of the U.S. (approximately 24.5%). The pro forma financial information does not reflect any adjustments for anticipated expense savings resulting from the acquisition and is not necessarily indicative of the operating results that would have actually occurred had the transaction been consummated on December 1, 2018. These results are prepared in accordance with ASC 606. (In thousands, except per share data) Pro Forma Revenue $ 123,690 Net income $ 12,933 Net income per basic share $ 0.29 Net income per diluted share $ 0.28 |
Term Loan and Line of Credit
Term Loan and Line of Credit | 3 Months Ended |
Feb. 28, 2021 | |
Line of Credit Facility [Abstract] | |
Term Loan and Line of Credit | Term Loan and Line of Credit On April 30, 2019, we entered into an amended and restated credit agreement (the "Credit Agreement"), which provides for a $301.0 million secured term loan and a $100.0 million secured revolving line of credit. The revolving line of credit may be made available in U.S. Dollars and certain other currencies and may be increased by up to an additional $125.0 million if the existing or additional lenders are willing to make such increased commitments. The revolving line of credit has sublimits for swing line loans up to $25.0 million and for the issuance of standby letters of credit in a face amount up to $25.0 million. The Credit Agreement modified our prior credit facility by extending the maturity date to April 30, 2024 and extending the principal repayments of the term loan. We borrowed an additional $185.0 million under the term loan as part of this modified credit facility. The new term loan was used to partially fund our acquisition of Ipswitch in April 2019. During October 2020, we partially funded our acquisition of Chef by drawing down $98.5 million under the revolving line of credit (Note 6). Interest rates for the term loan and revolving line of credit are based upon our leverage ratio and determined based on an index selected at our option. The rates range from 1.50% to 2.00% above the Eurocurrency rate for Eurocurrency-based borrowings or from 0.50% to 1.00% above the defined base rate for base rate borrowings. Additionally, we may borrow certain foreign currencies at rates set in the same respective range above the London interbank offered interest rates for those currencies. A quarterly commitment fee on the undrawn portion of the revolving line of credit is required and ranges from 0.25% to 0.35% per annum based on our leverage ratio. The interest rate as of February 28, 2021 was 1.75%. The credit facility matures on April 30, 2024, when all amounts outstanding will be due and payable in full. The revolving line of credit does not require amortization of principal. The outstanding balance of the term loan as of February 28, 2021 was $282.2 million, with $20.7 million due in the next 12 months. The term loan requires repayment of principal at the end of each fiscal quarter, beginning with the fiscal quarter ended August 31, 2019. The principal repayment amounts are in accordance with the following schedule: (i) four payments of $1.9 million each, (ii) four payments of $3.8 million each, (iii) four payments of $5.6 million each, (iv) four payments of $7.5 million each, (v) three payments of $9.4 million each, and (vi) the last payment is of the remaining principal amount. Any amounts outstanding under the term loan thereafter would be due on the maturity date. The term loan may be prepaid before maturity in whole or in part at our option without penalty or premium. As of February 28, 2021, the carrying value of the term loan approximates the fair value, based on Level 2 inputs (observable market prices in less than active markets), as the interest rate is variable over the selected interest period and is similar to current rates at which we can borrow funds. Costs incurred to obtain our long-term debt of $1.6 million, along with $1.2 million of unamortized debt issuance costs related to the previous credit agreement, are recorded as debt issuance costs as a direct deduction from the carrying value of the debt liability on our condensed consolidated balance sheets as of February 28, 2021. These costs are being amortized over the term of the debt agreement using the effective interest rate method. Amortization expense related to the debt issuance costs was $0.1 million for each of the three months ended February 28, 2021 and February 29, 2020 is recorded in interest expense on our condensed consolidated statements of operations. Revolving loans may be borrowed, repaid, and reborrowed until April 30, 2024, at which time all amounts outstanding must be repaid. Accrued interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of each interest rate period (or at each three-month interval in the case of loans with interest periods greater than three months) with respect to Eurocurrency rate loans. We may prepay the loans or terminate or reduce the commitments in whole or in part at any time, without premium or penalty, subject to certain conditions and reimbursement of certain costs in the case of Eurocurrency rate loans. During October 2020, we partially funded our acquisition of Chef by drawing down $98.5 million under the revolving line of credit (Note 6). During the first fiscal quarter of 2021, we paid down $15.0 million on the revolving line of credit. As of February 28, 2021, there was $83.5 million outstanding under the revolving line of credit and $2.1 million of letters of credit outstanding. We are the sole borrower under the credit facility. Our obligations under the Credit Agreement are secured by substantially all of our assets and each of our material domestic subsidiaries, as well as 100% of the capital stock of our domestic subsidiaries and 65% of the capital stock of our first-tier foreign subsidiaries, in each case, subject to certain exceptions as described in the Credit Agreement. Future material domestic subsidiaries will be required to guaranty our obligations under the Credit Agreement, and to grant security interests in substantially all of their assets to secure such obligations. The Credit Agreement generally prohibits, with certain exceptions, any other liens on our assets, subject to certain exceptions as described in the Credit Agreement. The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our ability to, among other things, grant liens, make investments, make acquisitions, incur indebtedness, merge or consolidate, dispose of assets, pay dividends or make distributions, repurchase stock, change the nature of the business, enter into certain transactions with affiliates and enter into burdensome agreements, in each case subject to customary exceptions for a credit facility of this size and type. We are also required to maintain compliance with a consolidated fixed charge coverage ratio, a consolidated total leverage ratio and a consolidated senior secured leverage ratio. As of February 28, 2021, aggregate future maturities of long-term debt were as follows (in thousands): Remainder of 2021 $ 15,050 2022 26,338 2023 33,863 2024 290,437 Total $ 365,688 |
Leases
Leases | 3 Months Ended |
Feb. 28, 2021 | |
Leases [Abstract] | |
Leases | Leases In February 2016, the FASB issued ASC 842 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company adopted ASC 842 on December 1, 2019 using the modified retrospective method and as a result did not adjust comparative periods or modify disclosures in those comparative periods. The new guidance provides a number of optional practical expedients in transition. The Company elected the package of practical expedients, which does not require the reassessment of prior conclusions about lease identification, lease classification and initial direct costs. Further, the Company elected the practical expedients to combine lease and non-lease components. Contracts may be comprised of lease components, non-lease components, and elements that are not components. Each lease component represents a lessee’s right to use an underlying asset in the contract if the lessee can benefit from the right-of-use of the asset either on its own or together with other readily available resources and if the right-of-use is neither highly dependent or highly interrelated with other rights-of-use. Non-lease components include items such as common area maintenance and utilities provided by the lessor. We also elected the practical expedient to not recognize right-of-use assets and lease liabilities for short-term leases. Leases with an initial term of 12 months or less are classified as short-term leases. Consideration in the contract is comprised of any fixed payments and variable payments that depend on an index or rate. Payments in the Company's operating lease arrangements primarily consist of base office rent. In accordance with ASC 842, variable payments in an agreement that are not dependent on an index or rate are excluded from the calculation of ROU assets and lease liabilities. The Company makes variable payments on certain of its leases related to taxes, insurance, common area maintenance, and utilities, among other things. The adoption of ASC 842 on December 1, 2019 resulted in the recognition of operating lease ROU assets of approximately $28.9 million and operating lease liabilities of approximately $29.9 million. The difference between the value of the ROU assets and lease liabilities is due to the reclassification of existing deferred rent, prepaid rent, and unamortized lease incentives as of December 1, 2019. Operating leases are included in ROU assets and lease liabilities on the Company’s balance sheets. ROU assets and lease liabilities are to be presented separately for operating and finance leases; however, the Company currently has no material finance leases. The adoption of ASC 842 did not have a material impact on the Company’s condensed consolidated statement of operations, consolidated statement of stockholders' equity, consolidated statement of comprehensive income (loss) or consolidated statement of cash flows. The adoption of ASC 842 had no impact on liquidity or the Company’s debt-covenant compliance under its current debt agreements. The Company has operating leases for administrative, product development, and sales and marketing facilities, vehicles, and equipment under various non-cancelable lease agreements. The Company’s leases have remaining lease terms ranging from 1 year to 10 years. The Company’s lease terms may include options to extend or terminate the lease where it is reasonably certain that the Company will exercise those options. The Company considers several economic factors when making the determination as to whether the Company will exercise options to extend or terminate the lease, including but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, or specific characteristics unique to a particular lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of operating lease cost for the three months ended February 28, 2021 and February 29, 2020 were as follows (in thousands): Three Months Ended Three Months Ended February 28, 2021 February 29, 2020 Lease costs under long-term operating leases $ 2,135 $ 1,958 Lease costs under short-term operating leases 15 45 Variable lease cost under short-term and long-term operating leases (1) 115 106 Operating lease right-of-use asset impairment — 923 Total operating lease cost $ 2,265 $ 3,032 (1) Lease costs that are not fixed at lease commencement. The table below presents supplemental cash flow information related to leases during the three months ended February 28, 2021 and February 29, 2020 (in thousands): Three Months Ended Three Months Ended February 28, 2021 February 29, 2020 Cash paid for leases $ 2,258 $ 2,356 Right-of-use assets recognized for new leases and amendments (non-cash) $ 2,338 $ — Weighted average remaining lease term in years and weighted average discount rate are as follows: February 28, 2021 November 30, 2020 Weighted average remaining lease term in years 4.87 5.02 Weighted average discount rate 2.7 % 2.3 % Future payments under non-cancellable leases are as follows (in thousands): February 28, 2021 Remainder of 2021 $ 6,069 2022 7,658 2023 7,550 2024 7,509 2025 5,027 Thereafter 2,932 Total lease payments 36,745 Less imputed interest (1) (2,249) Present value of lease liabilities $ 34,496 (1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated as a result of a lease reassessment event. |
Common Stock Repurchases
Common Stock Repurchases | 3 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
Common Stock Repurchases | Common Stock RepurchasesIn January 2020, our Board of Directors increased the total share repurchase authorization from $75 million to $250 million. In the three months ended February 28, 2021 and February 29, 2020, we repurchased and retired 0.4 million shares for $15.0 million and 0.4 million shares for $20.0 million, respectively. The shares were repurchased in both periods as part of our Board of Directors authorized share repurchase program. As of February 28, 2021, there was $175.0 million remaining under the current authorization. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Nov. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards, less the present value of expected dividends when applicable, measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using the current market price of the stock, the Black-Scholes option valuation model, or the Monte Carlo Simulation valuation model. In 2019, 2020 and 2021, we granted performance-based restricted stock units that include two performance metrics under our Long-Term Incentive Plan ("LTIP") where the performance measurement period is three years. Vesting of the LTIP awards on the 2019 and 2020 plan is based on the following: (i) 50% is based on our level of attainment of specified total stockholder return ("TSR") targets relative to the percentage appreciation of a specified index of companies for the respective three-year periods, and (ii) 50% is based on achievement of a three-year cumulative performance condition (operating income). For the 2021 plan, the vesting terms were changed to the following: (i) 25% is based on our level of attainment of specified total stockholder return ("TSR") targets relative to the percentage appreciation of a specified index of companies for the respective three-year periods, and (ii) 75% is based on achievement of a three-year cumulative performance condition (operating income). In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model for the market condition portion of the award, and used the closing price of our common stock on the date of grant for the portion related to the performance condition. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense related to options and restricted stock units on a straight-line basis over the service period of the award, which is generally 4 years for options and 3 years for restricted stock units. We recognize stock-based compensation expense related to our employee stock purchase plan using an accelerated attribution method. The following table provides the classification of stock-based compensation as reflected on our condensed consolidated statements of operations (in thousands): Three Months Ended February 28, 2021 February 29, 2020 Cost of maintenance and services $ 392 $ 319 Sales and marketing 1,503 1,050 Product development 1,919 1,926 General and administrative 2,970 2,756 Total stock-based compensation $ 6,784 $ 6,051 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balances of other comprehensive loss during the three months ended February 28, 2021 (in thousands): Foreign Currency Translation Adjustment Unrealized Gains on Investments Unrealized Losses on Hedging Activity Accumulated Other Comprehensive Loss Balance, December 1, 2020 $ (27,616) $ 14 $ (5,176) $ (32,778) Other comprehensive income before reclassifications, net of tax 1,225 14 837 2,076 Balance, February 28, 2021 $ (26,391) $ 28 $ (4,339) $ (30,702) The tax effect on accumulated unrealized losses on hedging activity and unrealized gains on investments was $1.4 million and $1.6 million as of February 28, 2021 and November 30, 2020, respectively. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Feb. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Balances Unbilled Receivables and Contract Assets The timing of revenue recognition may differ from the timing of customer invoicing. When revenue is recognized prior to invoicing and the right to the amount due from customers is conditioned only on the passage of time, we record an unbilled receivable on our condensed consolidated balance sheets. Our multi-year term license arrangements, which are typically billed annually, result in revenue recognition in advance of invoicing and the recognition of unbilled receivables. As of February 28, 2021, invoicing of our long-term unbilled receivables is expected to occur as follows (in thousands): 2022 $ 6,335 2023 3,913 2024 1,177 Total $ 11,425 Contract assets, which arise when revenue is recognized prior to invoicing and the right to the amount due from customers is conditioned on something other than the passage of time, such as the completion of a related performance obligation, were $7.9 million as of February 28, 2021 and $11.3 million as of November 30, 2020. These amounts are included in unbilled receivables or long-term unbilled receivables on our condensed consolidated balance sheets. Deferred Revenue Deferred revenue is recorded when revenue is recognized subsequent to customer invoicing. Our deferred revenue balance is primarily made up of deferred maintenance from our OpenEdge and Application Development and Deployment segments. As of February 28, 2021, the changes in deferred revenue were as follows (in thousands): Balance, December 1, 2020 $ 193,295 Billings and other 136,963 Revenue recognized (121,280) Balance, February 28, 2021 $ 208,978 Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of February 28, 2021, transaction price allocated to remaining performance obligations was $223.3 million. We expect to recognize approximately 85% of the revenue within the next year and the remainder thereafter. Deferred Contract Costs Deferred contract costs, which include certain sales incentive programs, are incremental and recoverable costs of obtaining a contract with a customer. Incremental costs of obtaining a contract with a customer are recognized as an asset if the expected benefit of those costs is longer than one year. We have applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include a large majority of our sales incentive programs as we have determined that annual compensation is commensurate with annual sales activities. Certain of our sales incentive programs meet the requirements to be capitalized. Depending upon the sales incentive program and the related revenue arrangement, such capitalized costs are amortized over the longer of (i) the product life, which is generally three three |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Feb. 28, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges The following table provides a summary of activity for our restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2020 $ 421 $ 3,552 $ 3,973 Costs incurred 261 896 1,157 Cash disbursements (478) (2,515) (2,993) Translation adjustments and other 1 11 12 Balance, February 28, 2021 $ 205 $ 1,944 $ 2,149 During the fourth quarter of fiscal year 2020, we restructured our operations in connection with the acquisition of Chef (Note 6). This restructuring resulted in a reduction in redundant positions, primarily within administrative functions of Chef. For the three months ended February 28, 2021, we incurred expenses of $0.9 million related to this restructuring. The expenses are recorded as restructuring expenses in the consolidated statements of operations. A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2020 $ — $ 3,523 $ 3,523 Costs incurred 51 897 948 Cash disbursements (51) (2,487) (2,538) Translation adjustments and other — 11 11 Balance, February 28, 2021 $ — $ 1,944 $ 1,944 Cash disbursements for expenses incurred to date under this restructuring are expected to be made through fiscal year 2021. Accordingly, the balance of the restructuring reserve of $1.9 million is included in other accrued liabilities on the consolidated balance sheet at February 28, 2021. We expect to incur additional expenses as part of this action related to employee costs and facility closures as we consolidate offices in various locations during fiscal year 2021, but we do not expect these costs to be material. |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision for the first quarter of fiscal years 2021 and 2020 reflects our estimate of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events, which are recorded in the period in which they occur. The estimates are reevaluated each quarter based on our estimated tax expense for the full fiscal year. Our effective tax rate was 23% in both the first fiscal quarter of 2021 and in the first fiscal quarter of 2020. There were no significant discrete tax items in either the first fiscal quarter of 2021 or the first fiscal quarter of 2020. Our federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2017. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2016. Tax authorities for certain non-U.S. jurisdictions are also examining returns. With some exceptions, we are generally not subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2014. |
Earnings per share
Earnings per share | 3 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data): Three Months Ended February 28, 2021 February 29, 2020 Net income $ 18,961 $ 21,116 Weighted average shares outstanding 44,108 44,897 Dilutive impact from common stock equivalents 544 618 Diluted weighted average shares outstanding 44,652 45,515 Basic earnings per share $ 0.43 $ 0.47 Diluted earnings per share $ 0.42 $ 0.46 We excluded stock awards representing approximately 1,078,000 and 661,000 shares of common stock from the calculation of diluted earnings per share in the three months ended February 28, 2021 and February 29, 2020, respectively, as these awards were anti-dilutive. |
Business Segments and Internati
Business Segments and International Operations | 3 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
Business Segments and International Operations | Business Segments and International Operations Operating segments are components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. We operate as three distinct business segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. We do not manage our assets or capital expenditures by segment or assign other income (expense) and income taxes to segments. We manage and report such items on a consolidated company basis. The following table provides revenue and contribution margin from our reportable segments and reconciles to our consolidated income from continuing operations before income taxes: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Segment revenue: OpenEdge $ 84,603 $ 77,079 Data Connectivity and Integration 5,528 13,685 Application Development and Deployment 31,149 18,919 Total revenue 121,280 109,683 Segment costs of revenue and operating expenses: OpenEdge 18,916 19,750 Data Connectivity and Integration 1,170 2,680 Application Development and Deployment 15,410 7,288 Total costs of revenue and operating expenses 35,496 29,718 Segment contribution margin: OpenEdge 65,687 57,329 Data Connectivity and Integration 4,358 11,005 Application Development and Deployment 15,739 11,631 Total contribution margin 85,784 79,965 Other unallocated expenses (1) 58,368 49,253 Income from operations 27,416 30,712 Other expense, net (2,652) (3,397) Income before income taxes $ 24,764 $ 27,315 (1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: certain product development and corporate sales and marketing expenses, customer support, administration, amortization of acquired intangibles, stock-based compensation, restructuring, and acquisition-related expenses. Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands): Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Performance obligations transferred at a point in time: Software licenses $ 33,317 $ 30,629 Performance obligations transferred over time: Maintenance 76,977 70,056 Services 10,986 8,998 Total revenue $ 121,280 $ 109,683 In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from EMEA, Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Three Months Ended (In thousands) February 28, 2021 February 29, 2020 North America $ 71,505 $ 65,413 EMEA 40,240 34,988 Latin America 3,493 4,000 Asia Pacific 6,042 5,282 Total revenue $ 121,280 $ 109,683 No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our total revenue for the three months ended February 28, 2021 and February 29, 2020. As of February 28, 2021 and November 30, 2020, no individual customer accounted for 10% or more of our net accounts receivable balance. As of February 28, 2021 and November 30, 2020, no individual foreign country accounted for 10% or more of total consolidated assets. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Feb. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies - We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements and these unaudited financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2020, as amended by Form 10-K/A filed on March 30, 2021 ("2020 10-K"). We made no material changes in the application of our significant accounting policies that were disclosed in our 2020 10-K. We have prepared the accompanying unaudited condensed consolidated financial statements on the same basis as the audited financial statements included in our 2020 10-K, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full fiscal year. |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an on-going basis, management evaluates its estimates and records changes in estimates in the period in which they become known. These estimates are based on historical data and experience, as well as various other assumptions that management believes to be reasonable under the circumstances. The most significant estimates relate to: the timing and amount of revenue recognition, including the determination of the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and the transaction price allocated to performance obligations; the realization of tax assets and estimates of tax liabilities; fair values of investments in marketable securities; intangible assets and goodwill valuations; the recognition and disclosure of contingent liabilities; the collectability of accounts receivable; and assumptions used to determine the fair value of stock-based compensation. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which requires measurement and recognition of expected credit losses for financial assets measured at amortized cost, including accounts receivable, upon initial recognition of that financial asset using a forward-looking expected loss model, rather than an incurred loss model. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses when the fair value is below the amortized cost of the asset, removing the concept of "other-than-temporary" impairments. The Company adopted this standard effective December 1, 2020. The adoption of this standard did not have a material effect on the Company’s condensed consolidated financial statements. |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Investments and Cash [Abstract] | |
Summary of Cash, Cash Equivalents and Available-for-sale Investments | A summary of our cash, cash equivalents and available-for-sale investments at February 28, 2021 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 87,403 $ — $ — $ 87,403 Money market funds 20,295 — — 20,295 U.S. treasury bonds 4,493 42 — 4,535 Corporate bonds 2,109 29 — 2,138 Total $ 114,300 $ 71 $ — $ 114,371 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2020 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 79,026 $ — $ — $ 79,026 Money market funds 18,964 — — 18,964 U.S. treasury bonds 4,993 58 — 5,051 Corporate bonds 2,913 41 — 2,954 Total $ 105,896 $ 99 $ — $ 105,995 |
Summary of Cash, Cash Equivalents and Available-for-sale Investments by Balance Sheet Classification | Such amounts are classified on our condensed consolidated balance sheets as follows (in thousands): February 28, 2021 November 30, 2020 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 87,403 $ — $ 79,026 $ — Money market funds 20,295 — 18,964 — U.S. treasury bonds — 4,535 — 5,051 Corporate bonds — 2,138 — 2,954 Total $ 107,698 $ 6,673 $ 97,990 $ 8,005 |
Fair Value of Debt Securities by Contractual Maturity | The fair value of debt securities by contractual maturity is as follows (in thousands): February 28, 2021 November 30, 2020 Due in one year or less $ 4,676 $ 5,998 Due after one year (1) 1,997 2,007 Total $ 6,673 $ 8,005 (1) Includes U.S. treasury bonds and corporate bonds, which are securities representing investments available for current operations and are classified as current on the condensed consolidated balance sheets. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | The following table presents our interest rate swap contract where the notional amount reflects the quarterly amortization of the interest rate swap, which is equal to approximately one-half of the corresponding reduction in the balance of our term loan as we make scheduled principal payments. The fair value of the derivative represents the discounted value of the expected future discounted cash flows for the interest rate swap, based on the amortization schedule and the current forward curve for the remaining term of the contract, as of the date of each reporting period (in thousands): February 28, 2021 November 30, 2020 Notional Value Fair Value Notional Value Fair Value Interest rate swap contracts designated as cash flow hedges $ 140,625 $ (5,747) $ 142,500 $ (6,855) The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): February 28, 2021 November 30, 2020 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 64,543 $ 2,350 $ 69,031 $ 1,445 Forward contracts to purchase U.S. dollars — — 440 (3) Total $ 64,543 $ 2,350 $ 69,471 $ 1,442 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets | The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at February 28, 2021 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 20,295 $ 20,295 $ — $ — U.S. treasury bonds 4,535 — 4,535 — Corporate bonds 2,138 — 2,138 — Foreign exchange derivatives 2,350 — 2,350 — Liabilities Interest rate swap $ (5,747) $ — $ (5,747) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2020 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 18,964 $ 18,964 $ — $ — U.S. treasury bonds 5,051 — 5,051 — Corporate bonds 2,954 — 2,954 — Foreign exchange derivatives 1,442 — 1,442 — Liabilities Interest rate swap $ (6,855) $ — $ (6,855) $ — |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are comprised of the following significant classes (in thousands): February 28, 2021 November 30, 2020 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 173,486 $ (117,384) $ 56,102 $ 173,486 $ (113,863) $ 59,623 Customer-related 231,342 (97,256) 134,086 231,342 (91,326) 140,016 Trademarks and trade names 30,440 (19,059) 11,381 30,440 (18,275) 12,165 Non-compete agreement 2,000 (1,222) 778 2,000 (1,057) 943 Total $ 437,268 $ (234,921) $ 202,347 $ 437,268 $ (224,521) $ 212,747 |
Schedule of Future Amortization Expense from Intangible Assets Held | Future amortization expense for intangible assets as of February 28, 2021, is as follows (in thousands): Remainder of 2021 $ 34,491 2022 44,836 2023 44,560 2024 31,743 2025 21,233 Thereafter 25,484 Total $ 202,347 |
Schedule of Goodwill | Changes in the carrying amount of goodwill in the three months ended February 28, 2021 are as follows (in thousands): Balance, November 30, 2020 $ 491,726 Translation adjustments (25) Balance, February 28, 2021 $ 491,701 Changes in the goodwill balances by reportable segment in the three months ended February 28, 2021 are as follows (in thousands): November 30, 2020 Translation adjustments February 28, 2021 OpenEdge $ 365,863 $ (25) $ 365,838 Data Connectivity and Integration 19,040 — 19,040 Application Development and Deployment 106,823 — 106,823 Total goodwill $ 491,726 $ (25) $ 491,701 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase price is as follows (in thousands): Total Life Net working capital $ 52,330 Property, plant and equipment 498 Purchased technology 38,300 5 years Trade name 5,700 5 years Customer relationships 97,300 7 years Other assets 122 Other noncurrent liabilities (841) Lease liabilities, net (1,810) Deferred taxes (7,817) Deferred revenue (12,525) Goodwill 59,858 Net assets acquired $ 231,115 |
Business Acquisition, Pro Forma Information | (In thousands, except per share data) Pro Forma Revenue $ 123,690 Net income $ 12,933 Net income per basic share $ 0.29 Net income per diluted share $ 0.28 |
Term Loan and Line of Credit (T
Term Loan and Line of Credit (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Line of Credit Facility [Abstract] | |
Schedule of Maturities of Long-term Debt | As of February 28, 2021, aggregate future maturities of long-term debt were as follows (in thousands): Remainder of 2021 $ 15,050 2022 26,338 2023 33,863 2024 290,437 Total $ 365,688 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of operating lease cost for the three months ended February 28, 2021 and February 29, 2020 were as follows (in thousands): Three Months Ended Three Months Ended February 28, 2021 February 29, 2020 Lease costs under long-term operating leases $ 2,135 $ 1,958 Lease costs under short-term operating leases 15 45 Variable lease cost under short-term and long-term operating leases (1) 115 106 Operating lease right-of-use asset impairment — 923 Total operating lease cost $ 2,265 $ 3,032 (1) Lease costs that are not fixed at lease commencement. The table below presents supplemental cash flow information related to leases during the three months ended February 28, 2021 and February 29, 2020 (in thousands): Three Months Ended Three Months Ended February 28, 2021 February 29, 2020 Cash paid for leases $ 2,258 $ 2,356 Right-of-use assets recognized for new leases and amendments (non-cash) $ 2,338 $ — Weighted average remaining lease term in years and weighted average discount rate are as follows: February 28, 2021 November 30, 2020 Weighted average remaining lease term in years 4.87 5.02 Weighted average discount rate 2.7 % 2.3 % |
Lessee, Operating Lease, Liability, Maturity | Future payments under non-cancellable leases are as follows (in thousands): February 28, 2021 Remainder of 2021 $ 6,069 2022 7,658 2023 7,550 2024 7,509 2025 5,027 Thereafter 2,932 Total lease payments 36,745 Less imputed interest (1) (2,249) Present value of lease liabilities $ 34,496 (1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated as a result of a lease reassessment event. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Classification of Stock-Based Compensation | The following table provides the classification of stock-based compensation as reflected on our condensed consolidated statements of operations (in thousands): Three Months Ended February 28, 2021 February 29, 2020 Cost of maintenance and services $ 392 $ 319 Sales and marketing 1,503 1,050 Product development 1,919 1,926 General and administrative 2,970 2,756 Total stock-based compensation $ 6,784 $ 6,051 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated balances of other comprehensive loss during the three months ended February 28, 2021 (in thousands): Foreign Currency Translation Adjustment Unrealized Gains on Investments Unrealized Losses on Hedging Activity Accumulated Other Comprehensive Loss Balance, December 1, 2020 $ (27,616) $ 14 $ (5,176) $ (32,778) Other comprehensive income before reclassifications, net of tax 1,225 14 837 2,076 Balance, February 28, 2021 $ (26,391) $ 28 $ (4,339) $ (30,702) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | As of February 28, 2021, invoicing of our long-term unbilled receivables is expected to occur as follows (in thousands): 2022 $ 6,335 2023 3,913 2024 1,177 Total $ 11,425 As of February 28, 2021, the changes in deferred revenue were as follows (in thousands): Balance, December 1, 2020 $ 193,295 Billings and other 136,963 Revenue recognized (121,280) Balance, February 28, 2021 $ 208,978 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Restructuring Charges [Abstract] | |
Summary of Restructuring Activity | The following table provides a summary of activity for our restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2020 $ 421 $ 3,552 $ 3,973 Costs incurred 261 896 1,157 Cash disbursements (478) (2,515) (2,993) Translation adjustments and other 1 11 12 Balance, February 28, 2021 $ 205 $ 1,944 $ 2,149 A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2020 $ — $ 3,523 $ 3,523 Costs incurred 51 897 948 Cash disbursements (51) (2,487) (2,538) Translation adjustments and other — 11 11 Balance, February 28, 2021 $ — $ 1,944 $ 1,944 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share on an interim basis (in thousands, except per share data): Three Months Ended February 28, 2021 February 29, 2020 Net income $ 18,961 $ 21,116 Weighted average shares outstanding 44,108 44,897 Dilutive impact from common stock equivalents 544 618 Diluted weighted average shares outstanding 44,652 45,515 Basic earnings per share $ 0.43 $ 0.47 Diluted earnings per share $ 0.42 $ 0.46 |
Business Segments and Interna_2
Business Segments and International Operations (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table provides revenue and contribution margin from our reportable segments and reconciles to our consolidated income from continuing operations before income taxes: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Segment revenue: OpenEdge $ 84,603 $ 77,079 Data Connectivity and Integration 5,528 13,685 Application Development and Deployment 31,149 18,919 Total revenue 121,280 109,683 Segment costs of revenue and operating expenses: OpenEdge 18,916 19,750 Data Connectivity and Integration 1,170 2,680 Application Development and Deployment 15,410 7,288 Total costs of revenue and operating expenses 35,496 29,718 Segment contribution margin: OpenEdge 65,687 57,329 Data Connectivity and Integration 4,358 11,005 Application Development and Deployment 15,739 11,631 Total contribution margin 85,784 79,965 Other unallocated expenses (1) 58,368 49,253 Income from operations 27,416 30,712 Other expense, net (2,652) (3,397) Income before income taxes $ 24,764 $ 27,315 (1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: certain product development and corporate sales and marketing expenses, customer support, administration, amortization of acquired intangibles, stock-based compensation, restructuring, and acquisition-related expenses. |
Revenue from External Customers by Products and Services | Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands): Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Performance obligations transferred at a point in time: Software licenses $ 33,317 $ 30,629 Performance obligations transferred over time: Maintenance 76,977 70,056 Services 10,986 8,998 Total revenue $ 121,280 $ 109,683 |
Revenue from External Customers from Different Geographical Areas | In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from EMEA, Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Three Months Ended (In thousands) February 28, 2021 February 29, 2020 North America $ 71,505 $ 65,413 EMEA 40,240 34,988 Latin America 3,493 4,000 Asia Pacific 6,042 5,282 Total revenue $ 121,280 $ 109,683 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) enterprise_customer in Thousands, developer in Millions | 3 Months Ended |
Feb. 28, 2021software_vendordeveloperenterprise_customer | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of independent software vendors (more than) | software_vendor | 1,700 |
Number of enterprise customers | enterprise_customer | 100 |
Number of developers | developer | 3 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Summary Of Cash, Cash Equivalents And Available-For-Sale Investments (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | $ 107,698 | $ 97,990 |
Unrealized Gains | 71 | 99 |
Unrealized Losses | 0 | 0 |
Total Amortized Cost Basis | 114,300 | 105,896 |
Total Fair Value | 114,371 | 105,995 |
U.S. treasury bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 4,493 | 4,993 |
Unrealized Gains | 42 | 58 |
Unrealized Losses | 0 | 0 |
Fair Value | 4,535 | 5,051 |
Corporate bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Amortized Cost Basis | 2,109 | 2,913 |
Unrealized Gains | 29 | 41 |
Unrealized Losses | 0 | 0 |
Fair Value | 2,138 | 2,954 |
Cash | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | 87,403 | 79,026 |
Money market funds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and cash equivalents | $ 20,295 | $ 18,964 |
Cash, Cash Equivalents and In_4
Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Available-for-sale Investments by Balance Sheet Classification (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and Equivalents | $ 107,698 | $ 97,990 |
Short-Term Investments | 6,673 | 8,005 |
U.S. treasury bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Short-Term Investments | 4,535 | 5,051 |
Corporate bonds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Short-Term Investments | 2,138 | 2,954 |
Cash | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and Equivalents | 87,403 | 79,026 |
Money market funds | ||
Cash, Cash Equivalents and Investments [Line Items] | ||
Cash and Equivalents | $ 20,295 | $ 18,964 |
Cash, Cash Equivalents and In_5
Cash, Cash Equivalents and Investments - Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Investments and Cash [Abstract] | ||
Due in one year or less | $ 4,676 | $ 5,998 |
Due after one year | 1,997 | 2,007 |
Total | $ 6,673 | $ 8,005 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 3 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Nov. 30, 2020 | Jul. 09, 2019 | |
Other Noncurrent Liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities | $ 5,700,000 | |||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Notional amount | $ 150,000,000 | |||
Fixed interest rate | 1.855% | |||
Interest Rate Swap | London Interbank Offered Rate (LIBOR) | ||||
Derivative [Line Items] | ||||
Basis spread on variable rate | 0.00% | |||
Forward Contracts | ||||
Derivative [Line Items] | ||||
Minimum maturity period, foreign currency derivative | 30 days | |||
Maximum maturity period, foreign currency derivative | 2 years | |||
Derivative, gain (loss) on derivative, net | $ 1,700,000 | $ (600,000) | ||
Forward Contracts | Other Current Assets | ||||
Derivative [Line Items] | ||||
Derivative liabilities | $ 2,300,000 | |||
Forward Contracts | Other Assets | ||||
Derivative [Line Items] | ||||
Derivative liabilities | $ 1,400,000 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Derivative [Line Items] | ||
Notional Value | $ 64,543 | $ 69,471 |
Fair Value | 2,350 | 1,442 |
Interest rate swap contracts designated as cash flow hedges | ||
Derivative [Line Items] | ||
Notional Value | 140,625 | 142,500 |
Fair Value | (5,747) | (6,855) |
Forward contracts to sell U.S. dollars | ||
Derivative [Line Items] | ||
Notional Value | 64,543 | 69,031 |
Fair Value | 2,350 | 1,445 |
Forward contracts to purchase U.S. dollars | ||
Derivative [Line Items] | ||
Notional Value | 0 | 440 |
Fair Value | $ 0 | $ (3) |
Fair Value Measurements - Hiera
Fair Value Measurements - Hierarchy of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | $ 20,295 | $ 18,964 |
Money market funds | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 20,295 | 18,964 |
Money market funds | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
U.S. treasury bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 4,535 | 5,051 |
U.S. treasury bonds | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
U.S. treasury bonds | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 4,535 | 5,051 |
U.S. treasury bonds | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 2,138 | 2,954 |
Corporate bonds | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Corporate bonds | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 2,138 | 2,954 |
Corporate bonds | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Foreign exchange derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 2,350 | 1,442 |
Foreign exchange derivatives | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Foreign exchange derivatives | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 2,350 | 1,442 |
Foreign exchange derivatives | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | 0 |
Interest rate swap | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | (5,747) | (6,855) |
Interest rate swap | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | 0 | 0 |
Interest rate swap | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | (5,747) | (6,855) |
Interest rate swap | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities | $ 0 | $ 0 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule Of Intangible Assets (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 437,268 | $ 437,268 |
Accumulated Amortization | (234,921) | (224,521) |
Net Book Value | 202,347 | 212,747 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 173,486 | 173,486 |
Accumulated Amortization | (117,384) | (113,863) |
Net Book Value | 56,102 | 59,623 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 231,342 | 231,342 |
Accumulated Amortization | (97,256) | (91,326) |
Net Book Value | 134,086 | 140,016 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 30,440 | 30,440 |
Accumulated Amortization | (19,059) | (18,275) |
Net Book Value | 11,381 | 12,165 |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,000 | 2,000 |
Accumulated Amortization | (1,222) | (1,057) |
Net Book Value | $ 778 | $ 943 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, amortization expense | $ 10.4 | $ 5.8 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule Of Future Amortization Expense (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 34,491 | |
2022 | 44,836 | |
2023 | 44,560 | |
2024 | 31,743 | |
2025 | 21,233 | |
Thereafter | 25,484 | |
Net Book Value | $ 202,347 | $ 212,747 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Feb. 28, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance, November 30, 2020 | $ 491,726 |
Translation adjustments | (25) |
Balance, February 28, 2021 | 491,701 |
OpenEdge | |
Goodwill [Roll Forward] | |
Balance, November 30, 2020 | 365,863 |
Translation adjustments | (25) |
Balance, February 28, 2021 | 365,838 |
Data Connectivity and Integration | |
Goodwill [Roll Forward] | |
Balance, November 30, 2020 | 19,040 |
Translation adjustments | 0 |
Balance, February 28, 2021 | 19,040 |
Application Development and Deployment | |
Goodwill [Roll Forward] | |
Balance, November 30, 2020 | 106,823 |
Translation adjustments | 0 |
Balance, February 28, 2021 | $ 106,823 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Oct. 05, 2020 | Oct. 31, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Nov. 30, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 491,701 | $ 491,726 | |||
Acquisition-related expenses | $ 396 | $ 314 | |||
Federal statutory income tax rate, percent | 24.50% | ||||
Revolving Line of Credit | |||||
Business Acquisition [Line Items] | |||||
Proceeds from lines of credit | $ 98,500 | ||||
Credit Agreement | Revolving Line of Credit | |||||
Business Acquisition [Line Items] | |||||
Proceeds from lines of credit | $ 98,500 | ||||
Chef Acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash payments in business acquisition | 220,000 | ||||
Escrow deposit | 12,000 | ||||
Goodwill | $ 59,858 | ||||
Acquisition-related expenses | $ 400 | ||||
Revenue of acquisition | 12,000 | ||||
Intangible assets | $ 141,300 |
Business Combinations - Schedul
Business Combinations - Schedule of Net Assets Acquired (Details) - USD ($) $ in Thousands | Oct. 05, 2020 | Feb. 28, 2021 | Nov. 30, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 491,701 | $ 491,726 | |
Chef acquisition | |||
Business Acquisition [Line Items] | |||
Net working capital | $ 52,330 | ||
Property, plant and equipment | 498 | ||
Intangible assets | $ 141,300 | ||
Other assets | 122 | ||
Other noncurrent liabilities | (841) | ||
Lease liabilities, net | (1,810) | ||
Deferred taxes | (7,817) | ||
Deferred revenue | (12,525) | ||
Goodwill | 59,858 | ||
Net assets acquired | 231,115 | ||
Chef acquisition | Purchased technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 38,300 | ||
Finite-lived intangible assets, useful life | 5 years | ||
Chef acquisition | Trade name | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 5,700 | ||
Finite-lived intangible assets, useful life | 5 years | ||
Chef acquisition | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 97,300 | ||
Finite-lived intangible assets, useful life | 7 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Chef Acquisition $ / shares in Units, $ in Thousands | 3 Months Ended |
Feb. 29, 2020USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ | $ 123,690 |
Net income | $ | $ 12,933 |
Net income per basic share (in dollars per share) | $ / shares | $ 0.29 |
Net income per diluted share (in dollars per share) | $ / shares | $ 0.28 |
Term Loan and Line of Credit -
Term Loan and Line of Credit - Narrative (Details) - USD ($) | Oct. 05, 2020 | Oct. 31, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Apr. 30, 2019 |
Line of Credit Facility [Line Items] | |||||
2022 | $ 26,338,000 | ||||
Revolving Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Proceeds from lines of credit | $ 98,500,000 | ||||
Repayments of lines of credit | $ 15,000,000 | ||||
Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Additional borrowing capacity available | $ 185,000,000 | ||||
Interest rate of credit facilities | 1.75% | ||||
Principal repayments, option one | $ 1,900,000 | ||||
Principal repayments, option two | 3,800,000 | ||||
Principal repayments, option three | 5,600,000 | ||||
Principal repayments, option four | 7,500,000 | ||||
Principal repayments, three payment schedules | 9,400,000 | ||||
Debt issuance cost | 1,600,000 | ||||
Unamortized debt issuance costs | 1,200,000 | ||||
Amortization of debt issuance costs | $ 100,000 | $ 100,000 | |||
Percentage of capital stock of domestic subsidiaries | 100.00% | ||||
Percentage of capital stock of first-tier foreign subsidiaries | 65.00% | ||||
Credit Agreement | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Credit Agreement | Minimum | Eurodollar | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 1.50% | ||||
Credit Agreement | Minimum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 0.50% | ||||
Credit Agreement | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.35% | ||||
Credit Agreement | Maximum | Eurodollar | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 2.00% | ||||
Credit Agreement | Maximum | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate of credit facilities | 1.00% | ||||
Credit Agreement | Revolving Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Term loan | 301,000,000 | ||||
Unsecured credit facility | 100,000,000 | ||||
Additional borrowing capacity available | 125,000,000 | ||||
Proceeds from lines of credit | $ 98,500,000 | ||||
Fair value of term loan | $ 282,200,000 | ||||
2022 | 20,700,000 | ||||
Line of credit facility outstanding amount | 83,500,000 | ||||
Credit Agreement | Swing Line Loans | |||||
Line of Credit Facility [Line Items] | |||||
Term loan | 25,000,000 | ||||
Credit Agreement | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Term loan | $ 25,000,000 | ||||
Letters of credit outstanding | $ 2,100,000 |
Term Loan and Line of Credit _2
Term Loan and Line of Credit - Future Maturities (Details) $ in Thousands | Feb. 28, 2021USD ($) |
Line of Credit Facility [Abstract] | |
Remainder of 2021 | $ 15,050 |
2022 | 26,338 |
2023 | 33,863 |
2024 | 290,437 |
Total | $ 365,688 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 | Dec. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 31,265 | $ 30,635 | |
Operating lease, liability | $ 34,496 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract (in years) | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract (in years) | 10 years | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease assets | $ 28,900 | ||
Operating lease, liability | $ 29,900 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Nov. 30, 2020 | |
Leases [Abstract] | |||
Lease costs under long-term operating leases | $ 2,135 | $ 1,958 | |
Lease costs under short-term operating leases | 15 | 45 | |
Variable lease cost under short-term and long-term operating leases | 115 | 106 | |
Operating lease right-of-use asset impairment | 0 | 923 | |
Total operating lease cost | 2,265 | 3,032 | |
Cash paid for leases | 2,258 | 2,356 | |
Right-of-use assets recognized for new leases and amendments (non-cash) | $ 2,338 | $ 0 | |
Weighted average remaining lease term in years | 4 years 10 months 13 days | 5 years 7 days | |
Weighted average discount rate | 2.70% | 2.30% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments After the Adoption of ASC 842 (Details) $ in Thousands | Feb. 28, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 6,069 |
2022 | 7,658 |
2023 | 7,550 |
2024 | 7,509 |
2025 | 5,027 |
Thereafter | 2,932 |
Total lease payments | 36,745 |
Less imputed interest | (2,249) |
Present value of lease liabilities | $ 34,496 |
Common Stock Repurchases (Detai
Common Stock Repurchases (Details) - USD ($) shares in Millions | 3 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Jan. 31, 2020 | Nov. 30, 2019 | |
Equity [Abstract] | ||||
Stock repurchase authorization | $ 250,000,000 | $ 75,000,000 | ||
Common stock repurchased and retired (in shares) | 0.4 | 0.4 | ||
Common stock repurchased and retired | $ 15,000,000 | $ 20,000,000 | ||
Remaining authorized repurchase amount | $ 175,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - metric | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Long-Term Incentive Plan (LTIP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance metrics | 2 | 2 | 2 |
Stock-based compensation award service period (in years) | 3 years | 3 years | 3 years |
Long-Term Incentive Plan (LTIP) | 2019 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares based on market condition of total shareholder return | 50.00% | ||
Percentage of shares based on cumulative performance condition | 50.00% | ||
Cumulative performance condition | 3 years | ||
Long-Term Incentive Plan (LTIP) | 2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares based on market condition of total shareholder return | 50.00% | ||
Percentage of shares based on cumulative performance condition | 50.00% | ||
Cumulative performance condition | 3 years | ||
Long-Term Incentive Plan (LTIP) | 2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares based on market condition of total shareholder return | 25.00% | ||
Percentage of shares based on cumulative performance condition | 75.00% | ||
Cumulative performance condition | 3 years | ||
Market condition period | 3 years | ||
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award service period (in years) | 4 years | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation award service period (in years) | 3 years |
Stock-Based Compensation - Clas
Stock-Based Compensation - Classification of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 6,784 | $ 6,051 |
Cost of maintenance and services | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 392 | 319 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,503 | 1,050 |
Product development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,919 | 1,926 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 2,970 | $ 2,756 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Feb. 28, 2021 | Nov. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 346,013 | $ 330,282 |
Other comprehensive income before reclassifications, net of tax | 2,076 | |
Ending balance | 352,553 | 346,013 |
Other comprehensive income (loss), tax | 1,400 | 1,600 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (32,778) | (29,974) |
Ending balance | (30,702) | (32,778) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (27,616) | |
Other comprehensive income before reclassifications, net of tax | 1,225 | |
Ending balance | (26,391) | (27,616) |
Unrealized Gains on Investments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 14 | |
Other comprehensive income before reclassifications, net of tax | 14 | |
Ending balance | 28 | 14 |
Unrealized Losses on Hedging Activity | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (5,176) | |
Other comprehensive income before reclassifications, net of tax | 837 | |
Ending balance | $ (4,339) | $ (5,176) |
Revenue Recognition - Unbilled
Revenue Recognition - Unbilled Receivables and Contract Assets (Details) $ in Thousands | Feb. 28, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
2022 | $ 6,335 |
2023 | 3,913 |
2024 | 1,177 |
Total | $ 11,425 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | Feb. 28, 2021 | Nov. 30, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contract asset | $ 7.9 | $ 11.3 |
Deferred contract costs | $ 3.3 | $ 2.5 |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization period | 3 years | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization period | 5 years |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue (Details) $ in Thousands | 3 Months Ended |
Feb. 28, 2021USD ($) | |
Contract With Customer, Liability [Roll Forward] | |
Beginning balance | $ 193,295 |
Billings and other | 136,963 |
Revenue recognized | (121,280) |
Ending balance | $ 208,978 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Feb. 28, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 223.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Remaining performance obligation, percentage | 85.00% |
Restructuring Charges - Summary
Restructuring Charges - Summary of Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 3,973 | |
Costs incurred | 1,157 | $ 1,040 |
Cash disbursements | (2,993) | |
Translation adjustments and other | 12 | |
Ending Balance | 2,149 | |
Chef Restructuring Activities | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 3,523 | |
Costs incurred | 948 | |
Cash disbursements | (2,538) | |
Translation adjustments and other | 11 | |
Ending Balance | 1,944 | |
Excess Facilities and Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 421 | |
Costs incurred | 261 | |
Cash disbursements | (478) | |
Translation adjustments and other | 1 | |
Ending Balance | 205 | |
Excess Facilities and Other Costs | Chef Restructuring Activities | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0 | |
Costs incurred | 51 | |
Cash disbursements | (51) | |
Translation adjustments and other | 0 | |
Ending Balance | 0 | |
Employee Severance and Related Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 3,552 | |
Costs incurred | 896 | |
Cash disbursements | (2,515) | |
Translation adjustments and other | 11 | |
Ending Balance | 1,944 | |
Employee Severance and Related Benefits | Chef Restructuring Activities | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 3,523 | |
Costs incurred | 897 | |
Cash disbursements | (2,487) | |
Translation adjustments and other | 11 | |
Ending Balance | $ 1,944 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Nov. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 1,157 | $ 1,040 | |
Restructuring reserve | 2,149 | $ 3,973 | |
Chef Restructuring Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 948 | ||
Restructuring reserve | 1,944 | $ 3,523 | |
Other Accrued Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | $ 1,900 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 23.00% | 23.00% |
Earnings per share - Calculatio
Earnings per share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 18,961 | $ 21,116 |
Weighted average shares outstanding (in shares) | 44,108 | 44,897 |
Dilutive impact from common stock equivalents (in shares) | 544 | 618 |
Diluted weighted average shares outstanding (in shares) | 44,652 | 45,515 |
Basic earnings per share (in dollars per share) | $ 0.43 | $ 0.47 |
Diluted earnings per share (in dollars per share) | $ 0.42 | $ 0.46 |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Earnings Per Share [Abstract] | ||
Number of shares excluded from the calculation of diluted earnings per share (in shares) | 1,078 | 661 |
Business Segments and Interna_3
Business Segments and International Operations - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2021customersegment | Feb. 29, 2020customer | Nov. 30, 2020customer | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Revenue Concentration Risk | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Number of individual customer | 0 | 0 | |
Account Receivable Concentration Risk | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Number of individual customer | 0 | 0 | |
Geographic Concentration Risk | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Number of individual customer | 0 | 0 |
Business Segments and Interna_4
Business Segments and International Operations - Income from Continuing Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | $ 121,280 | $ 109,683 |
Segment costs of revenue and operating expenses | 35,496 | 29,718 |
Segment contribution margin | 85,784 | 79,965 |
Other unallocated expenses | 58,368 | 49,253 |
Income from operations | 27,416 | 30,712 |
Other expense, net | (2,652) | (3,397) |
Income before income taxes | 24,764 | 27,315 |
OpenEdge | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | 84,603 | 77,079 |
Segment costs of revenue and operating expenses | 18,916 | 19,750 |
Segment contribution margin | 65,687 | 57,329 |
Data Connectivity and Integration | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | 5,528 | 13,685 |
Segment costs of revenue and operating expenses | 1,170 | 2,680 |
Segment contribution margin | 4,358 | 11,005 |
Application Development and Deployment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment revenue | 31,149 | 18,919 |
Segment costs of revenue and operating expenses | 15,410 | 7,288 |
Segment contribution margin | $ 15,739 | $ 11,631 |
Business Segments and Interna_5
Business Segments and International Operations - Revenue from External Customers by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 121,280 | $ 109,683 |
Software licenses | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 33,317 | 30,629 |
Performance obligations transferred at a point in time | Software licenses | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 33,317 | 30,629 |
Performance obligations transferred over time | Maintenance | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 76,977 | 70,056 |
Performance obligations transferred over time | Services | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 10,986 | $ 8,998 |
Business Segments and Interna_6
Business Segments and International Operations - Revenue from External Customers from Different Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Revenue from External Customer [Line Items] | ||
Segment revenue | $ 121,280 | $ 109,683 |
North America | ||
Revenue from External Customer [Line Items] | ||
Segment revenue | 71,505 | 65,413 |
EMEA | ||
Revenue from External Customer [Line Items] | ||
Segment revenue | 40,240 | 34,988 |
Latin America | ||
Revenue from External Customer [Line Items] | ||
Segment revenue | 3,493 | 4,000 |
Asia Pacific | ||
Revenue from External Customer [Line Items] | ||
Segment revenue | $ 6,042 | $ 5,282 |