Stock-Based Compensation

6 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

On January 22, 2020, our shareholders adopted our 2020 Stock Plan (the "2020 Stock Plan"). The 2020 Stock Plan (i) grants the Company's compensation committee the discretionary authority over the plan; (ii) makes employees, directors, consultants, and advisors of the Company and its subsidiaries eligible to receive awards; (iii) sets the number of shares of common stock that may be issued in satisfaction of awards to be 9,000,000 shares, plus the number of shares available for issuance under the amended and restated 2000 Stock Plan (the "Amended and Restated 2000 Stock Plan"); and (iv) identifies the annual limits on shares granted to each individual and the types of awards permissible.

As of March 31, 2021, we had 11.4 million shares available for future grants under the 2020 Stock Plan and the Amended and Restated 2000 Stock Plan. We recognize stock-based compensation expenses over the requisite service periods. Our share-based awards are classified within equity upon issuance.

The amounts included in the consolidated statements of operations related to stock-based compensation are as follows (dollars in thousands):


	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020
Cost of hosting and professional services	$	6,842	$	5,800	$	13,405	$	10,777
Cost of product and licensing	102		129		177		258
Cost of maintenance and support	419		447		845		840
Research and development	8,732		8,304		17,172		16,744
Sales and marketing	8,558		7,798		17,501		14,823
General and administrative	10,223		9,656		20,682		19,094
Total	$	34,876	$	32,134	$	69,782	$	62,536

Stock Options

The table below summarizes activities related to stock options for the six months ended March 31, 2021:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (a)
Outstanding at September 30, 2020	9,355	$	17.18
Outstanding at March 31, 2021	9,355	$	17.18	1.1 years	$	0.2	million
Exercisable at March 31, 2021	9,355	$	17.18	1.1 years	$	0.2	million
Exercisable at March 31, 2020	9,978	$	17.18	2.1 years	$	—	million

(a)The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of March 31, 2021 ($43.64) over the exercise price of the underlying options.

The aggregate intrinsic values of stock options exercised during the six months ended March 31, 2021 and 2020 were de minimis.

Restricted Units

Restricted units are not included in issued and outstanding common stock until the units are vested and underlying shares are released. The purchase price for vested restricted units is $0.001 per share. The table below summarizes activities relating to restricted units for the six months ended March 31, 2021:


	Number of Shares Underlying Restricted Units — Performance-Based Awards	Number of Shares Underlying Restricted Units — Time-Based Awards
Outstanding at September 30, 2020	2,620,120	7,157,649
Granted	665,977	2,041,041
Earned/released	(301,870)	(3,125,292)
Forfeited	(137,340)	(242,360)
Outstanding at March 31, 2021	2,846,887	5,831,038
Weighted average remaining recognition period of outstanding Restricted Units	1.3 years	1.6 years
Unrecognized stock-based compensation expense of outstanding Restricted Units	$26.5 million	$75.3 million
Aggregate intrinsic value of outstanding Restricted Units (a)	$124.2 million	$254.5 million

(a)The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of March 31, 2021 ($43.64) over the purchase price of the underlying restricted units.

A summary of the weighted-average grant-date fair value of restricted units granted, and the aggregate intrinsic value of restricted units vested during the periods noted is as follows:


	Six Months Ended March 31,
	2021		2020
Weighted-average grant-date fair value per share	$	37.75	$	17.52
Total intrinsic value of shares vested (in millions)	$	133.6	$	106.4

Performance-based restricted units outstanding as of March 31, 2021 include performance goals based on total shareholder return relative to our peers during the performance period. The awards actually earned will be up to two hundred percent of the target number of the performance-based restricted units. Compensation expense is recorded ratably over the performance period of the award based on the grant date fair value as determined using a Monte Carlo simulation model. Below is a summary of key assumptions of the valuation:


	Six Months Ended March 31,
	2021	2020
Dividend yield	0.0%	0.0%
Expected volatility	34.95%	27.73% - 28.24%
Risk-free interest rate	0.21%	1.40% - 1.62%
Expected term (in years)	3.00	2.72 - 3.00