(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
ý | Accelerated filer o | ||||
Non-accelerated filer o | Smaller reporting company | ||||
Emerging growth company |
Page | ||
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands, Except per Share Data) | |||||||
Revenue: | |||||||
License | $ | $ | |||||
Maintenance | |||||||
Services and other | |||||||
Total revenue | |||||||
Cost of revenue: | |||||||
License | |||||||
Maintenance | |||||||
Services and other | |||||||
Total cost of revenue | |||||||
Gross profit | |||||||
Operating expenses: | |||||||
Selling and marketing | |||||||
Research and development | |||||||
General and administrative | |||||||
Total operating expenses | |||||||
Income from operations | |||||||
Interest income | |||||||
Interest (expense) | ( | ) | ( | ) | |||
Other income, net | |||||||
Income before income taxes | |||||||
Provision for income taxes | |||||||
Net income | $ | $ | |||||
Net income per common share: | |||||||
Basic | $ | $ | |||||
Diluted | $ | $ | |||||
Weighted average shares outstanding: | |||||||
Basic | |||||||
Diluted |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands) | |||||||
Net income | $ | $ | |||||
Other comprehensive (loss): | |||||||
Foreign currency translation adjustments | ( | ) | ( | ) | |||
Total other comprehensive (loss) | ( | ) | ( | ) | |||
Comprehensive income | $ | $ |
September 30, 2019 | June 30, 2019 | ||||||
(Dollars in Thousands, Except Share Data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Accounts receivable, net | |||||||
Current contract assets | |||||||
Prepaid expenses and other current assets | |||||||
Prepaid income taxes | |||||||
Total current assets | |||||||
Property, equipment and leasehold improvements, net | |||||||
Computer software development costs, net | |||||||
Goodwill | |||||||
Intangible assets, net | |||||||
Non-current contract assets | |||||||
Contract costs | |||||||
Operating lease right-of-use assets | |||||||
Deferred tax assets | |||||||
Other non-current assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | $ | |||||
Accrued expenses and other current liabilities | |||||||
Current operating lease liabilities | |||||||
Income taxes payable | |||||||
Borrowings under credit agreement | |||||||
Current deferred revenue | |||||||
Total current liabilities | |||||||
Non-current deferred revenue | |||||||
Deferred income taxes | |||||||
Non-current operating lease liabilities | |||||||
Other non-current liabilities | |||||||
Commitments and contingencies (Note 17) | |||||||
Series D redeemable convertible preferred stock, $0.10 par value— Authorized— 3,636 shares as of September 30, 2019 and June 30, 2019 Issued and outstanding— none as of September 30, 2019 and June 30, 2019 | |||||||
Stockholders’ equity: | |||||||
Common stock, $0.10 par value— Authorized—210,000,000 shares Issued— 103,717,526 shares at September 30, 2019 and 103,642,292 shares at June 30, 2019 Outstanding— 68,317,521 shares at September 30, 2019 and 68,624,566 shares at June 30, 2019 | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive (loss) income | ( | ) | |||||
Treasury stock, at cost—35,400,005 shares of common stock at September 30, 2019 and 35,017,726 shares at June 30, 2019 | ( | ) | ( | ) | |||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders' Equity | ||||||||||||||||||||||||
Number of Shares | $0.10 Par Value | Number of Shares | Cost | ||||||||||||||||||||||||||
(Dollars in Thousands, Except Share Data) | |||||||||||||||||||||||||||||
June 30, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive (loss) | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||||
Issuance of shares of common stock | — | — | — | ||||||||||||||||||||||||||
Issuance of restricted stock units and net share settlement related to withholding taxes | ( | ) | — | — | — | — | ( | ) | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
September 30, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total Stockholders' Equity | ||||||||||||||||||||||||
Number of Shares | $0.10 Par Value | Number of Shares | Cost | ||||||||||||||||||||||||||
(Dollars in Thousands, Except Share Data) | |||||||||||||||||||||||||||||
June 30, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive (loss) | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||||
Issuance of shares of common stock | — | — | — | ||||||||||||||||||||||||||
Issuance of restricted stock units and net share settlement related to withholding taxes | ( | ) | — | — | — | — | ( | ) | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||
September 30, 2018 | $ | $ | $ | $ | $ | ( | ) | $ |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Right-of-use asset amortization | |||||||
Net foreign currency losses (gains) | ( | ) | |||||
Stock-based compensation | |||||||
Deferred income taxes | ( | ) | ( | ) | |||
Provision for bad debts | |||||||
Other non-cash operating activities | |||||||
Changes in assets and liabilities: | |||||||
Accounts receivable | ( | ) | ( | ) | |||
Contract assets | ( | ) | ( | ) | |||
Contract costs | ( | ) | ( | ) | |||
Lease liabilities | ( | ) | |||||
Prepaid expenses, prepaid income taxes, and other assets | ( | ) | ( | ) | |||
Accounts payable, accrued expenses, income taxes payable and other liabilities | ( | ) | |||||
Deferred revenue | ( | ) | |||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Purchases of property, equipment and leasehold improvements | ( | ) | ( | ) | |||
Payments for business acquisitions, net of cash acquired | ( | ) | |||||
Payments for capitalized computer software costs | ( | ) | ( | ) | |||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Exercises of stock options | |||||||
Repurchases of common stock | ( | ) | ( | ) | |||
Payments of tax withholding obligations related to restricted stock | ( | ) | ( | ) | |||
Proceeds from credit agreement | |||||||
Net cash provided by (used in) financing activities | ( | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | |||
Decrease in cash, cash equivalents, and restricted cash | ( | ) | ( | ) | |||
Cash and cash equivalents, beginning of period | |||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ | |||||
Supplemental disclosure of cash flow information: | |||||||
Income taxes paid, net | $ | $ | |||||
Interest paid | |||||||
Supplemental disclosure of non-cash activities: | |||||||
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses | $ | $ | ( | ) | |||
Change in repurchases of common stock included in accounts payable and accrued expenses | ( | ) | |||||
Lease liabilities arising from obtaining right-of-use assets | |||||||
September 30, 2019 | June 30, 2019 | ||||||
Reconciliation to amounts within the unaudited consolidated balance sheets: | (Dollars in Thousands) |
Cash and cash equivalents | $ | $ | |||||
Restricted cash included in other non-current assets | |||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands) | |||||||
Revenue by region: | |||||||
United States | $ | $ | |||||
Europe | |||||||
Other (1) | |||||||
$ | $ | ||||||
Revenue by type of performance obligation: | |||||||
Term licenses | $ | $ | |||||
Maintenance | |||||||
Professional services and other | |||||||
$ | $ | ||||||
Revenue by segment: | |||||||
Subscription and software | $ | $ | |||||
Services and other | |||||||
$ | $ |
(1) | Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East. |
September 30, 2019 | June 30, 2019 | ||||||
(Dollars in Thousands) | |||||||
Contract assets | $ | $ | |||||
Deferred revenue | ( | ) | ( | ) | |||
$ | $ |
Year Ended June 30, | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | ||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
License | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Maintenance | |||||||||||||||||||||||
Services and other |
Three Months Ended September 30, 2019 | |||
(Dollars in Thousands) | |||
Operating lease costs (1) | $ | ||
Variable lease costs | |||
Total lease costs | $ |
September 30, 2019 | ||
Weighted average remaining lease term | ||
Weighted average discount rate | % |
September 30, 2019 | June 30, 2019 (1) | ||||||
(Dollars in Thousands) | |||||||
Year Ending June 30, | |||||||
2020 | $ | $ | |||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
2024 | |||||||
Thereafter | |||||||
Total lease payments | |||||||
Less: imputed interest | ( | ) | |||||
$ | $ |
September 30, 2019 | June 30, 2019 | ||||||
(Dollars in Thousands) | |||||||
Accounts receivable, gross | $ | $ | |||||
Allowance for doubtful accounts | ( | ) | ( | ) | |||
Accounts receivable, net | $ | $ |
September 30, 2019 | June 30, 2019 | ||||||
(Dollars in Thousands) | |||||||
Property, equipment and leasehold improvements, at cost: | |||||||
Computer equipment | $ | $ | |||||
Purchased software | |||||||
Furniture & fixtures | |||||||
Leasehold improvements | |||||||
Property, equipment and leasehold improvements, at cost | |||||||
Accumulated depreciation | ( | ) | ( | ) | |||
Property, equipment and leasehold improvements, net | $ | $ |
Amount | |||
(Dollars in Thousands) | |||
Tangible assets acquired, net | $ | ||
Identifiable intangible assets: | |||
Technology-related | |||
Customer relationships | |||
Goodwill | |||
Deferred tax liabilities | ( | ) | |
Total assets acquired, net | $ |
Amount | |||
(Dollars in Thousands) | |||
Tangible assets acquired, net | $ | ||
Identifiable intangible assets: | |||
Technology-related | |||
Customer relationships | |||
Goodwill | |||
Deferred tax liabilities | ( | ) | |
Total assets acquired, net | $ |
Gross Carrying Amount | Accumulated Amortization | Effect of Currency Translation | Net Carrying Amount | ||||||||||||
(Dollars in Thousands) | |||||||||||||||
September 30, 2019: | |||||||||||||||
Technology | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
Customer relationships | ( | ) | ( | ) | |||||||||||
Non-compete agreements | ( | ) | |||||||||||||
Total | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
June 30, 2019: | |||||||||||||||
Technology | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
Customer relationships | ( | ) | ( | ) | |||||||||||
Non-compete agreements | ( | ) | |||||||||||||
Total | $ | $ | ( | ) | $ | ( | ) | $ |
Year Ended June 30, | Amortization Expense | ||
(Dollars in Thousands) | |||
2020 | $ | ||
2021 | |||
2022 | |||
2023 | |||
2024 | |||
Thereafter | |||
Total | $ |
Gross Carrying Amount | Accumulated Impairment Losses | Effect of Currency Translation | Net Carrying Amount | ||||||||||||
(Dollars in Thousands) | |||||||||||||||
June 30, 2019: | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
Goodwill from acquisitions | — | — | |||||||||||||
Foreign currency translation | — | — | ( | ) | ( | ) | |||||||||
September 30, 2019: | $ | $ | ( | ) | $ | ( | ) | $ |
September 30, 2019 | June 30, 2019 | ||||||
(Dollars in Thousands) | |||||||
Compensation-related | $ | $ | |||||
Deferred acquisition payments | |||||||
Uncertain tax positions | |||||||
Royalties and outside commissions | |||||||
Share repurchases | |||||||
Professional fees | |||||||
Deferred rent | |||||||
Other | |||||||
Total accrued expenses and other current liabilities | $ | $ |
September 30, 2019 | June 30, 2019 | ||||||
(Dollars in Thousands) | |||||||
Deferred rent | $ | $ | |||||
Uncertain tax positions | |||||||
Deferred acquisition payments | |||||||
Asset retirement obligations | |||||||
Other | |||||||
Total other non-current liabilities | $ | $ |
Three Months Ended September 30, | |||||
2019 | 2018 | ||||
Risk-free interest rate | % | % | |||
Expected dividend yield | % | % | |||
Expected life (in years) | |||||
Expected volatility factor | % | % |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands) | |||||||
Recorded as expenses: | |||||||
Cost of maintenance | $ | $ | |||||
Cost of services and other | |||||||
Selling and marketing | |||||||
Research and development | |||||||
General and administrative | |||||||
Total stock-based compensation | $ | $ |
Stock Options | Restricted Stock Units | ||||||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in 000’s) | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||
Outstanding at June 30, 2019 | $ | $ | $ | ||||||||||||||||
Granted | |||||||||||||||||||
Settled (RSUs) | — | ( | ) | ||||||||||||||||
Exercised | ( | ) | — | ||||||||||||||||
Cancelled / Forfeited | ( | ) | ( | ) | |||||||||||||||
Outstanding at September 30, 2019 | $ | $ | $ | ||||||||||||||||
Vested and exercisable at September 30, 2019 | $ | $ | — | ||||||||||||||||
Vested and expected to vest as of September 30, 2019 | $ | $ | $ |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars and Shares in Thousands, Except per Share Data) | |||||||
Net income | $ | $ | |||||
Weighted average shares outstanding | |||||||
Dilutive impact from: | |||||||
Employee equity awards | |||||||
Dilutive weighted average shares outstanding | |||||||
Income per share | |||||||
Basic | $ | $ | |||||
Dilutive | $ | $ |
Three Months Ended September 30, | |||||
2019 | 2018 | ||||
(Shares in Thousands) | |||||
Employee equity awards |
Subscription and Software | Services and Other | Total | |||||||||
(Dollars in Thousands) | |||||||||||
Three Months Ended September 30, 2019 | |||||||||||
Segment revenue | $ | $ | $ | ||||||||
Segment expenses (1) | ( | ) | ( | ) | ( | ) | |||||
Segment profit | $ | $ | $ | ||||||||
Three Months Ended September 30, 2018 | |||||||||||
Segment revenue | $ | $ | $ | ||||||||
Segment expenses (1) | ( | ) | ( | ) | ( | ) | |||||
Segment profit (loss) | $ | $ | ( | ) | $ |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands) | |||||||
Total segment profit for reportable segments | $ | $ | |||||
General and administrative expense | ( | ) | ( | ) | |||
Interest income, net | |||||||
Other income, net | |||||||
Income before income taxes | $ | $ |
• | Annual spend |
• | Total contract value |
• | Bookings |
• | Free cash flow |
• | Non-GAAP operating income |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands) | |||||||
Net cash provided by operating activities | $ | 15,260 | $ | 5,570 | |||
Purchases of property, equipment, and leasehold improvements | (600 | ) | (96 | ) | |||
Capitalized computer software development costs | (9 | ) | (90 | ) | |||
Acquisition related (receipts) payments, net | (353 | ) | 12 | ||||
Free cash flows (non-GAAP) | $ | 14,298 | $ | 5,396 |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
GAAP income from operations | $ | 47,304 | $ | 36,990 | $ | 10,314 | 27.9 | % | ||||||
Plus: | ||||||||||||||
Stock-based compensation | 9,275 | 8,865 | 410 | 4.6 | % | |||||||||
Amortization of intangibles | 1,195 | 1,067 | 128 | 12.0 | % | |||||||||
Acquisition related fees | 118 | (7 | ) | 125 | 1,785.7 | % | ||||||||
Non-GAAP income from operations | $ | 57,892 | $ | 46,915 | $ | 10,977 | 23.4 | % |
• | Revenue recognition |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||
2019 | 2018 | % | ||||||||
(Dollars in Thousands) | ||||||||||
Revenue: | ||||||||||
License | $ | 81,171 | $ | 63,755 | 27.3 | % | ||||
Maintenance | 43,574 | 43,039 | 1.2 | % | ||||||
Services and other | 9,346 | 7,375 | 26.7 | % | ||||||
Total revenue | 134,091 | 114,169 | 17.4 | % | ||||||
Cost of revenue: | ||||||||||
License | 1,660 | 1,665 | (0.3 | )% | ||||||
Maintenance | 4,977 | 3,993 | 24.6 | % | ||||||
Services and other | 8,581 | 7,569 | 13.4 | % | ||||||
Total cost of revenue | 15,218 | 13,227 | 15.1 | % | ||||||
Gross profit | 118,873 | 100,942 | 17.8 | % | ||||||
Operating expenses: | ||||||||||
Selling and marketing | 29,192 | 26,812 | 8.9 | % | ||||||
Research and development | 22,493 | 21,056 | 6.8 | % | ||||||
General and administrative | 19,884 | 16,084 | 23.6 | % | ||||||
Total operating expenses | 71,569 | 63,952 | 11.9 | % | ||||||
Income from operations | 47,304 | 36,990 | 27.9 | % | ||||||
Interest income | 7,976 | 7,069 | 12.8 | % | ||||||
Interest (expense) | (3,000 | ) | (1,814 | ) | 65.4 | % | ||||
Other income, net | 1,132 | 128 | 784.4 | % | ||||||
Income before income taxes | 53,412 | 42,373 | 26.1 | % | ||||||
Provision for income taxes | 7,128 | 4,307 | 65.5 | % | ||||||
Net income | $ | 46,284 | $ | 38,066 | 21.6 | % |
Three Months Ended September 30, | |||||
2019 | 2018 | ||||
(% of Revenue) | |||||
Revenue: | |||||
License | 60.5 | % | 55.8 | % | |
Maintenance | 32.5 | 37.7 | |||
Services and other | 7.0 | 6.5 | |||
Total revenue | 100.0 | 100.0 | |||
Cost of revenue: | |||||
License | 1.2 | 1.5 | |||
Maintenance | 3.7 | 3.5 | |||
Services and other | 6.4 | 6.6 | |||
Total cost of revenue | 11.3 | 11.6 | |||
Gross profit | 88.7 | 88.4 | |||
Operating expenses: | |||||
Selling and marketing | 21.8 | 23.5 | |||
Research and development | 16.8 | 18.4 | |||
General and administrative | 14.8 | 14.1 | |||
Total operating expenses | 53.4 | 56.0 | |||
Income from operations | 35.3 | 32.4 | |||
Interest income | 5.9 | 6.2 | |||
Interest (expense) | (2.2 | ) | (1.6 | ) | |
Other income, net | 0.8 | 0.1 | |||
Income before income taxes | 39.8 | 37.1 | |||
Provision for income taxes | 5.3 | 3.8 | |||
Net income | 34.5 | % | 33.3 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
License revenue | $ | 81,171 | $ | 63,755 | $ | 17,416 | 27.3 | % | ||||||
As a percent of total revenue | 60.5 | % | 55.8 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Maintenance revenue | $ | 43,574 | $ | 43,039 | $ | 535 | 1.2 | % | ||||||
As a percent of total revenue | 32.5 | % | 37.7 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Services and other revenue | $ | 9,346 | $ | 7,375 | $ | 1,971 | 26.7 | % | ||||||
As a percent of total revenue | 7.0 | % | 6.5 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Cost of license revenue | $ | 1,660 | $ | 1,665 | $ | (5 | ) | (0.3 | )% | |||||
As a percent of license revenue | 2.0 | % | 2.6 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Cost of maintenance revenue | $ | 4,977 | $ | 3,993 | $ | 984 | 24.6 | % | ||||||
As a percent of maintenance revenue | 11.4 | % | 9.3 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Cost of services and other revenue | $ | 8,581 | $ | 7,569 | $ | 1,012 | 13.4 | % | ||||||
As a percent of services and other revenue | 91.8 | % | 102.6 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Gross profit | $ | 118,873 | $ | 100,942 | $ | 17,931 | 17.8 | % | ||||||
As a percent of revenue | 88.7 | % | 88.4 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Selling and marketing expense | $ | 29,192 | $ | 26,812 | $ | 2,380 | 8.9 | % | ||||||
As a percent of total revenue | 21.8 | % | 23.5 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Research and development expense | $ | 22,493 | $ | 21,056 | $ | 1,437 | 6.8 | % | ||||||
As a percent of total revenue | 16.8 | % | 18.4 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
General and administrative expense | $ | 19,884 | $ | 16,084 | $ | 3,800 | 23.6 | % | ||||||
As a percent of total revenue | 14.8 | % | 14.1 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Interest income | $ | 7,976 | $ | 7,069 | $ | 907 | 12.8 | % | ||||||
As a percent of total revenue | 5.9 | % | 6.2 | % |
Three Months Ended September 30, | (Increase) / Decrease Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Interest (expense) | $ | (3,000 | ) | $ | (1,814 | ) | $ | (1,186 | ) | 65.4 | % | |||
As a percent of total revenue | (2.2 | )% | (1.6 | )% |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Other income, net | $ | 1,132 | $ | 128 | $ | 1,004 | 784.4 | % | ||||||
As a percent of total revenue | 0.8 | % | 0.1 | % |
Three Months Ended September 30, | Increase / (Decrease) Change | |||||||||||||
2019 | 2018 | $ | % | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Provision for income taxes | $ | 7,128 | $ | 4,307 | $ | 2,821 | 65.5 | % | ||||||
Effective tax rate | 13.3 | % | 10.2 | % |
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in Thousands) | |||||||
Cash flow provided by (used in): | |||||||
Operating activities | $ | 15,260 | $ | 5,570 | |||
Investing activities | (74,828 | ) | (186 | ) | |||
Financing activities | 47,004 | (49,102 | ) | ||||
Effect of exchange rates on cash balances | (729 | ) | (399 | ) | |||
Decrease in cash, cash equivalents, and restricted cash | $ | (13,293 | ) | $ | (44,117 | ) |
Period | Total Number of Shares Purchased (2) | Average Price Paid per Share (3) | Total Number of Shares Purchased as Part of Publicly Announced Program (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (4) | ||||||||||
July 1 to 31, 2019 | 129,452 | $ | 132.47 | 129,452 | ||||||||||
August 1 to 31, 2019 | 128,737 | $ | 133.34 | 128,737 | ||||||||||
September 1 to 30, 2019 | 124,090 | $ | 126.40 | 124,090 | ||||||||||
Total | 382,279 | $ | 130.79 | 382,279 | $ | 296,293,362 |
Incorporated by Reference | ||||||||||
Exhibit Number | Description | Filed with this Form 10-Q | Form | Filing Date with SEC | Exhibit Number | |||||
31.1 | X | |||||||||
31.2 | X | |||||||||
32.1 | X | |||||||||
10.1 | Letter agreement dated August 2, 2019 between Aspen Technology, Inc. and Gary M. Weiss | 8-K | August 8, 2019 | 10.1 | ||||||
10.2 | Aspen Technology, Inc. FY20 Executive Bonus Plan | 8-K | July 26, 2019 | 10.1 | ||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
Aspen Technology, Inc. | ||
Date: October 30, 2019 | By: | /s/ ANTONIO J. PIETRI |
Antonio J. Pietri | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
Date: October 30, 2019 | By: | /s/ KARL E. JOHNSEN |
Karl E. Johnsen | ||
Senior Vice President and Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
Date: October 30, 2019 | /s/ ANTONIO. J. PIETRI |
Antonio J. Pietri | |
President and Chief Executive Officer | |
(Principal Executive Officer) |
Date: October 30, 2019 | /s/ KARL E. JOHNSEN |
Karl E. Johnsen | |
Senior Vice President and Chief Financial Officer | |
(Principal Financial Officer) |
Date: October 30, 2019 | /s/ ANTONIO J. PIETRI |
Antonio J. Pietri | |
President and Chief Executive Officer |
Date: October 30, 2019 | /s/ KARL E. JOHNSEN |
Karl E. Johnsen | |
Senior Vice President and Chief Financial Officer |
Accounts Receivable (Details) |
3 Months Ended |
---|---|
Sep. 30, 2019 | |
Concentration Risk [Line Items] | |
Concentration Risk, Customer | no |
Accounts Receivable | Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Percentage of net accounts receivable | 10.00% |
Leases Operating Lease Remaining Lease Term (Details) |
Sep. 30, 2019 |
---|---|
Weighted average remaining lease term | 5 years 8 months 12 days |
Weighted average discount rate | 4.40% |
Net Income Per Share - Stock Options Excluded from the Computation of Dilutive Weighted Average Shares Outstanding (Details) |
3 Months Ended |
---|---|
Sep. 30, 2019
$ / shares
shares
| |
Stock Options | |
Employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive | |
Options to purchase shares of common stock (in shares) | shares | 292,503 |
Stock Options | |
Employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive | |
Exercise price range, low end of range (in dollars per share) | $ 132.63 |
Exercise price range, high end of range (in dollars per share) | $ 137.99 |
Stock-Based Compensation - RSU Activity (Details) - Restricted Stock Units - $ / shares |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Restricted stock units activity | ||
Outstanding, beginning of period (in shares) | 793,718 | |
Granted (in shares) | 247,823 | |
Settled (in shares) | (85,033) | |
Cancelled / Forfeited (in shares) | (63,619) | |
Outstanding, end of period (in shares) | 892,889 | |
Vested and expected to vest (in shares) | 842,490 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning of period (in dollars per share) | $ 98.38 | |
Granted (in dollars per share) | 133.15 | $ 115.17 |
Settled (RSUs) (in dollars per share) | 90.72 | |
Cancelled / Forfeited (in dollars per share) | 91.58 | |
Outstanding, end of period (in dollars per share) | $ 108.12 | |
Vested and expected to vest, end of period (in dollars per share) | 108.31 |
Segment Information - Reconciliation of Total Segment Profit to Income before Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Reconciliation to Income before Income Taxes | ||
Total segment profit for reportable segments | $ 47,304 | $ 36,990 |
General and administrative | (19,884) | (16,084) |
Interest income, net | 1,132 | 128 |
Income before income taxes | 53,412 | 42,373 |
Operating segments | ||
Reconciliation to Income before Income Taxes | ||
Total segment profit for reportable segments | 67,188 | 53,074 |
Segment Reconciling Items | ||
Reconciliation to Income before Income Taxes | ||
General and administrative | (19,884) | (16,084) |
Interest income, net | 4,976 | 5,255 |
Other income, net | $ 1,132 | $ 128 |
Fair Value |
3 Months Ended |
---|---|
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value We determine fair value by utilizing a fair value hierarchy that ranks the quality and reliability of the information used in its determination. Fair values determined using “Level 1 inputs” utilize unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Fair values determined using “Level 2 inputs” utilize data points that are observable, such as quoted prices, interest rates and yield curves for similar assets and liabilities. Cash equivalents of $1.0 million as of September 30, 2019 and June 30, 2019, respectively, were reported at fair value utilizing quoted market prices in identical markets, or “Level 1 inputs.” Our cash equivalents consist of short-term money market instruments. Financial instruments not measured or recorded at fair value in the accompanying unaudited consolidated financial statements consist of accounts receivable, accounts payable and accrued liabilities. The estimated fair value of these financial instruments approximates their carrying value. The estimated fair value of the borrowings under the Credit Agreement (described below in Note 12, Credit Agreement) approximates its carrying value due to the floating interest rate.
|
Intangible Assets |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets We include in our amortizable intangible assets those intangible assets acquired in our business and asset acquisitions. We amortize acquired intangible assets with finite lives over their estimated economic lives, generally using the straight-line method. Each period, we evaluate the estimated remaining useful lives of acquired intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Acquired intangibles are removed from the accounts when fully amortized and no longer in use. Intangible assets consisted of the following as of September 30, 2019 and June 30, 2019:
Total amortization expense related to intangible assets is included in cost of license revenue and operating expenses and amounted to approximately $1.2 million and $1.1 million for the three months ended September 30, 2019 and 2018, respectively. Future amortization expense as of September 30, 2019 is expected to be as follows:
|
Property and Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property, equipment and leasehold improvements | Property, equipment and leasehold improvements consisted of the following as of September 30, 2019 and June 30, 2019:
|
Revenue from Contracts with Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | We disaggregate our revenue by region, type of performance obligation, timing of revenue recognition, and segment as follows:
____________________________________________ (1) Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability [Table Text Block] | Our contract assets and deferred revenue were as follows as of September 30, 2019 and June 30, 2019:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Transaction Price Allocated to Remaining Performance Obligations The following table includes the aggregate amount of the transaction price allocated as of September 30, 2019 to the performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:
|
Accrued Expenses and Other Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following as of September 30, 2019 and June 30, 2019:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other non-current liabilities | Other non-current liabilities consisted of the following as of September 30, 2019 and June 30, 2019:
|
Leases Policies (Policies) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Leases [Policy Text Block] | Leases We have operating leases primarily for corporate offices, and other operating leases for data centers and certain equipment. We determine whether an arrangement is or contains a lease based on facts and circumstances present at the inception of the arrangement. We recognize lease expense on a straight-line basis over the lease term. Our leases have remaining lease terms of less than one year to approximately eight years, some of which may include options to extend the leases for up to five years, and some of the leases include the option to terminate the leases upon advanced notice of 90 days. If we are reasonably certain we will exercise an option to extend or terminate the lease, the time period covered by the extension or termination option is included in the lease term. Operating leases liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in the lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as incentives received. We have lease agreements with lease and non-lease components, which are accounted for separately. The components of lease expenses for the three months ended September 30, 2019 were as follows:
________ (1) Operating lease costs include rent and fixed fees The following table represents the weighted-average remaining lease term and discount rate information related to our operating leases:
The following table represents the maturities of our operating lease liabilities as of September 30, 2019 and June 30, 2019:
________ (1) As previously disclosed in our 2019 Annual Report on Form 10-K under the previous lease accounting standard, Topic 840, Leases.
|
Stock-Based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Stock Compensation Accounting The weighted average estimated fair value of option awards granted was $33.15 and $31.70 during the three months ended September 30, 2019 and 2018, respectively. We utilized the Black-Scholes option valuation model with the following weighted average assumptions:
The stock-based compensation expense under all equity plans and its classification in the unaudited consolidated statements of operations for the three months ended September 30, 2019 and 2018 are as follows:
A summary of stock option and restricted stock unit ("RSU") activity under all equity plans for the three months ended September 30, 2019 is as follows:
The weighted average grant-date fair value of RSUs granted was $133.15 and $115.17 during the three months ended September 30, 2019 and 2018, respectively. The total fair value of shares vested from RSU grants was $10.5 million and $9.9 million during the three months ended September 30, 2019 and 2018, respectively. At September 30, 2019, the total future unrecognized compensation cost related to stock options was $16.1 million and is expected to be recorded over a weighted average period of 3.1 years. At September 30, 2019, the total future unrecognized compensation cost related to RSUs was $53.3 million and is expected to be recorded over a weighted average period of 3.1 years. The total intrinsic value of options exercised was $1.3 million and $6.1 million during the three months ended September 30, 2019 and 2018, respectively. We received cash proceeds from option exercises of $1.0 million and $4.1 million during the three months ended September 30, 2019 and 2018, respectively. We withheld withholding taxes on vested RSUs of $3.4 million and $3.3 million during the three months ended September 30, 2019 and 2018, respectively. At September 30, 2019, common stock reserved for future issuance or settlement under equity compensation plans was 9.6 million shares. Performance Awards Beginning in fiscal 2019, we granted performance-based long-term incentive awards (“performance awards”) to certain of our executives, including our named executive officers. The performance period for each performance award is either of the following two-year periods: (i) fiscal year 2019 - fiscal year 2020, or (ii) fiscal year 2020 - fiscal year 2021. Participants receive RSUs on the grant date associated with achievement of all performance targets. The performance targets for the performance awards are based on meeting double digit growth in annual spend, defined as an estimate of the annualized value of our portfolio of term license arrangements, as of a specific date, and the performance goals set out in the executive bonus plan for each fiscal year, such as free cash flow. If the performance targets are met during one of the two performance periods and the participant remains actively employed by us, the RSUs convert to time-based vesting wherein fifty percent of the awards immediately vest, and the remaining fifty percent are subject to additional service vesting over a three-year period. In general, if the performance targets are not met, or if the participant is no longer actively employed by us prior to the performance targets being met, the participant forfeits all of the RSUs. We record compensation expense for the performance awards based on the fair value of the awards, in an amount proportionate to the service time rendered by the participant, when it is probable that the achievement of the goals will be met. The total fair value of the performance awards was estimated using the closing price on the date of grant as well as the estimated probable achievement levels of the performance metrics. If the performance-based conditions are not met, no compensation cost is recognized and any recognized compensation cost is reversed. As of September 30, 2019, we have granted 403,770 RSUs in connection with the performance awards. As of September 30, 2019, all of the RSUs issued in connection with the performance awards are unvested and outstanding. No compensation expense was recognized during the three months ended September 30, 2019 and 2018. On August 2, 2019, 60,680 RSUs in connection with the performance awards were forfeited associated with the departure of an executive. Employee Stock Purchase Plan On July 26, 2018, our Board of Directors approved the Aspen Technology, Inc. 2018 Employee Stock Purchase Plan (the "ESPP"), which provides for the issuance of up to 250,000 shares of common stock to participating employees. The ESPP is intended to be a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, or the IRC. The ESPP was approved at our Annual Meeting of Stockholders on December 7, 2018. The ESPP currently provides for a purchase price equal to 85% of the lower of (a) the fair market value of the common stock on the first trading day of each ESPP offering period and (b) the fair market value of the common stock on the last day of the offering period. Our initial offering period was January 1, 2019 through June 30, 2019, and our current offering period is July 1, 2019 through December 31, 2019. During the three months ended September 30, 2019, we recorded stock-based compensation expense of approximately $0.1 million associated with the ESPP. As of September 30, 2019, there were 236,961 shares of common stock available for issuance under the ESPP.
|
Commitments and Contingencies |
3 Months Ended |
---|---|
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Standby letters of credit for $2.2 million and $3.9 million secured our performance on professional services contracts, certain facility leases and potential liabilities as of September 30, 2019 and June 30, 2019, respectively. The letters of credit expire at various dates through fiscal 2025.
|
Significant Accounting Policies Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jul. 01, 2019 |
Jun. 30, 2019 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 29,842 | $ 0 | |
Current operating lease liabilities | 6,462 | 0 | |
Non-current operating lease liabilities | $ 28,765 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 28,500 | ||
Deferred Rent Credit | 6,500 | ||
Current operating lease liabilities | 7,400 | ||
Non-current operating lease liabilities | $ 26,500 |
Significant Accounting Policies |
3 Months Ended |
---|---|
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Aspen Technology, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (b) Significant Accounting Policies Our significant accounting policies are described in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019. We adopted Accounting Standards Update (ASU) No. 2016-02, Leases ("Topic 842") effective July 1, 2019. Refer to Note 2 (g), “New Accounting Pronouncements Adopted in Fiscal 2020,” for further information regarding the adoption of Topic 842. There were no other material changes to our significant accounting policies during the three months ended September 30, 2019. (c) Loss Contingencies We accrue estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim, assessment or damages can be reasonably estimated. We believe that we have sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. (d) Foreign Currency Transactions Foreign currency exchange gains and losses generated from the settlement and remeasurement of transactions denominated in currencies other than the functional currency of our subsidiaries are recognized in our results of operations as incurred as a component of other income, net. Net foreign currency exchange gains were $1.1 million and $0.1 million during the three months ended September 30, 2019 and 2018, respectively. (e) Research and Development Expense We charge research and development expenditures to expense as the costs are incurred. Research and development expenses consist primarily of personnel expenses related to the creation of new products, enhancements and engineering changes to existing products and costs of acquired technology prior to establishing technological feasibility. (f) Restricted Cash As of September 30, 2019, our restricted cash balance of $0.7 million related to funds subject to contractual restrictions. We did not have a restricted cash balance as of June 30, 2019. (g) New Accounting Pronouncements Adopted in Fiscal 2020 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the amendment, lessees are required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. We adopted Topic 842 effective July 1, 2019 using the effective date method with a modified retrospective transition approach. Results for reporting periods beginning on or after July 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840 “Leases.” We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the carry forward of historical assessments of whether a contract contains a lease, lease classification and initial direct costs. The most significant impact of the adoption of Topic 842 was the recognition of operating lease right-of-use assets of $28.5 million and current and non-current operating lease liabilities of $7.4 million and $26.5 million, respectively, and the reversal of deferred rent of $6.5 million as of July 1, 2019. The adoption of Topic 842 did not have a material impact on our operating results or cash flows, and there was no impact on our debt covenants. See Note 4, "Leases," to our Unaudited Consolidated Financial Statements for more information on the impact of adopting Topic 842. (h) Recently Issued Accounting Pronouncements None.
|
Net Income Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding | The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the three months ended September 30, 2019 and 2018 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of employee equity awards excluded from the calculation of dilutive weighted average shares outstanding | The following employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive as of September 30, 2019 and 2018:
|
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Series D redeemable convertible preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Series D redeemable convertible preferred stock, authorized | 3,636 | 3,636 |
Series D redeemable convertible preferred stock, issued | 0 | 0 |
Series D redeemable convertible preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized | 210,000,000 | 210,000,000 |
Common stock, issued | 103,717,526 | 103,642,292 |
Common stock, outstanding | 68,317,521 | 68,624,566 |
Treasury stock, shares | 35,400,005 | 35,017,726 |
Revenue from Contracts with Customers Contract Costs (Details) |
Sep. 30, 2019 |
---|---|
Minimum | |
Capitalized Contract Cost, Amortization Period | 4 years |
Maximum | |
Capitalized Contract Cost, Amortization Period | 8 years |
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Jun. 30, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 73,090 | $ 44,224 |
Accumulated Amortization | (11,592) | (10,399) |
Effect of Currency Translation | (543) | (218) |
Net Carrying Amount | 60,955 | 33,607 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 56,797 | 37,168 |
Accumulated Amortization | (9,844) | (8,868) |
Effect of Currency Translation | (291) | (118) |
Net Carrying Amount | 46,662 | 28,182 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,740 | 6,503 |
Accumulated Amortization | (1,210) | (1,039) |
Effect of Currency Translation | (252) | (100) |
Net Carrying Amount | 14,278 | 5,364 |
Non-compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 553 | 553 |
Accumulated Amortization | (538) | (492) |
Effect of Currency Translation | 0 | 0 |
Net Carrying Amount | $ 15 | $ 61 |
Accrued Expenses and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Accrued expenses and other current liabilities | ||
Compensation-related | $ 18,477 | $ 27,147 |
Deferred acquisition payments | 4,600 | 4,600 |
Uncertain tax positions | 1,064 | 3,751 |
Royalties and outside commissions | 3,734 | 3,665 |
Share repurchases | 1,584 | 2,432 |
Professional fees | 2,375 | 3,053 |
Deferred rent | 0 | 1,331 |
Other | 9,342 | 8,615 |
Total accrued expenses and other current liabilities | $ 41,176 | $ 54,594 |
Stockholders' Deficit |
3 Months Ended |
---|---|
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders’ Equity Stock Repurchases On January 22, 2015, our Board of Directors approved a share repurchase program (the "Share Repurchase Program") for up to $450.0 million worth of our common stock. The Share Repurchase Program was announced on January 28, 2015, and expires at the end of each fiscal year unless extended. On April 26, 2016, June 8, 2017, April 18, 2018, December 6, 2018, and April 17, 2019, the Board of Directors approved a $400.0 million, $200.0 million, $200.0 million, $100.0 million, and $200.0 million increase in the Share Repurchase Program, respectively. The timing and amount of any shares repurchased are based on market conditions and other factors. All shares of our common stock repurchased have been recorded as treasury stock under the cost method. During the three months ended September 30, 2019, we repurchased 382,279 shares of our common stock in the open market for $50.0 million. As of September 30, 2019, the total remaining value under the Share Repurchase Program was approximately $296.3 million. Accumulated Other Comprehensive Income As of September 30, 2019 and June 30, 2019, accumulated other comprehensive income was comprised of foreign currency translation adjustments of $1.8 million and $(0.3) million, respectively.
|
Segment Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Operating segments are defined as 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 to assess performance. Our chief operating decision maker is our President and Chief Executive Officer. The subscription and software segment is engaged in the licensing of process optimization and asset performance management software solutions and associated support services, and includes our license and maintenance revenue. The services and other segment includes professional services and training, and includes our services and other revenue. We do not track assets or capital expenditures by operating segments. Consequently, it is not practical to present assets, capital expenditures, depreciation or amortization by operating segments. The following table presents a summary of our reportable segments’ profits:
(1) Our reportable segments’ operating expenses include expenses directly attributable to the segments. Segment expenses include selling and marketing and research and development expenses. Segment expenses do not include allocations of general and administrative expense; interest income, net; and other (expense), net. Reconciliation to Income before Income Taxes The following table presents a reconciliation of total segment profit to income before income taxes for the three months ended September 30, 2019 and 2018:
|
Intangible Assets (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets We include in our amortizable intangible assets those intangible assets acquired in our business and asset acquisitions. We amortize acquired intangible assets with finite lives over their estimated economic lives, generally using the straight-line method. Each period, we evaluate the estimated remaining useful lives of acquired intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Acquired intangibles are removed from the accounts when fully amortized and no longer in use. Intangible assets consisted of the following as of September 30, 2019 and June 30, 2019:
Total amortization expense related to intangible assets is included in cost of license revenue and operating expenses and amounted to approximately $1.2 million and $1.1 million for the three months ended September 30, 2019 and 2018, respectively. Future amortization expense as of September 30, 2019 is expected to be as follows:
|
Revenue from Contracts with Customers Contract Balances (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Jun. 30, 2019 |
|
Contract with Customer, Liability, Revenue Recognized | $ 10,700 | |
Deferred Revenue | (43,048) | $ (44,891) |
Net contract assets (liabilities) | 602,300 | 574,812 |
Contract assets | $ 645,348 | $ 619,703 |
Significant Accounting Policies - Foreign Currency Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Other income (expense), net | ||
Foreign Currency Transactions | ||
Net foreign currency exchange gains (losses) | $ 1.1 | $ 0.1 |
Interim Unaudited Consolidated Financial Statements |
3 Months Ended |
---|---|
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Unaudited Consolidated Financial Statements | Interim Unaudited Consolidated Financial Statements The accompanying interim unaudited consolidated financial statements of Aspen Technology, Inc. and its subsidiaries have been prepared on the same basis as our annual consolidated financial statements. We have omitted certain information and footnote disclosures normally included in our annual consolidated financial statements. Such interim unaudited consolidated financial statements have been prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP), as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 270, Interim Reporting, for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited consolidated financial statements for the year ended June 30, 2019, which are contained in our Annual Report on Form 10-K, as previously filed with the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all adjustments, consisting of normal and recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations, and cash flows at the dates and for the periods presented have been included and all intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended September 30, 2019 are not necessarily indicative of the results to be expected for the subsequent quarter or for the full fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Unless the context requires otherwise, references to we, our and us refer to Aspen Technology, Inc. and its subsidiaries.
|
Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted average assumptions | We utilized the Black-Scholes option valuation model with the following weighted average assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation expense | The stock-based compensation expense under all equity plans and its classification in the unaudited consolidated statements of operations for the three months ended September 30, 2019 and 2018 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock option and RSU activity | A summary of stock option and restricted stock unit ("RSU") activity under all equity plans for the three months ended September 30, 2019 is as follows:
|
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible asset amortization expense | $ 1,200 | $ 1,100 |
Amortization expense - 2020 | 6,863 | |
Amortization expense - 2021 | 9,237 | |
Amortization expense - 2022 | 9,176 | |
Amortization expense - 2023 | 9,092 | |
Amortization expense - 2024 | 8,399 | |
Amortization expense - Thereafter | 18,188 | |
Finite Lived Intangible Assets Future Amortization Expense | $ 60,955 |
Accrued Expenses and Other Liabilities - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Other non-current liabilities | ||
Deferred rent | $ 0 | $ 5,187 |
Uncertain tax positions | 2,267 | 2,274 |
Deferred acquisition payments | 1,475 | 1,524 |
Asset retirement obligations | 907 | 914 |
Other | 55 | 482 |
Total other non-current liabilities | $ 4,704 | $ 10,381 |
Leases Operating Lease Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
2020 | $ 6,849 | $ 8,399 |
2021 | 7,725 | 7,820 |
2022 | 6,258 | 6,514 |
2023 | 6,059 | 5,862 |
2024 | 6,173 | 4,932 |
Thereafter | 8,147 | 3,307 |
Total lease payments | 41,211 | 36,834 |
Less: imputed interest | (5,984) | 0 |
Operating lease liabilities | $ 35,227 | $ 36,834 |
Property and Equipment - Property, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands |
Sep. 30, 2019 |
Jun. 30, 2019 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | $ 49,056 | $ 48,461 |
Accumulated depreciation | (41,797) | (41,227) |
Property, equipment and leasehold improvements, net | 7,259 | 7,234 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 6,796 | 6,642 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 22,827 | 22,793 |
Furniture & fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 7,023 | 6,794 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | $ 12,410 | $ 12,232 |
Net Income Per Share - Calculations of Basic and Diluted Net Income per Share and Basic and Dilutive Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Net income | $ 46,284 | $ 38,066 |
Weighted average shares outstanding (in shares) | 68,441 | 70,988 |
Dilutive impact from: | ||
Share-based payment awards (in shares) | 876 | 1,027 |
Dilutive weighted average shares outstanding (in shares) | 69,317 | 72,015 |
Income per share | ||
Basic (in dollars per share) | $ 0.68 | $ 0.54 |
Dilutive (in dollars per share) | $ 0.67 | $ 0.53 |
Segment Information - Summary of Reportable Segments' Profits (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Summary of reportable segments' profits | ||
Income from operations | $ 47,304 | $ 36,990 |
Operating segments | ||
Summary of reportable segments' profits | ||
Segment revenue | 134,091 | 114,169 |
Segment expenses | (66,903) | (61,095) |
Income from operations | 67,188 | 53,074 |
Subscription and software | Operating segments | ||
Summary of reportable segments' profits | ||
Segment revenue | 124,745 | 106,794 |
Segment expenses | (58,322) | (53,526) |
Income from operations | 66,423 | 53,268 |
Services and other | Operating segments | ||
Summary of reportable segments' profits | ||
Segment revenue | 9,346 | 7,375 |
Segment expenses | (8,581) | (7,569) |
Income from operations | $ 765 | $ (194) |
Accounts Receivable |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable, Net Our accounts receivable, net of the related allowance for doubtful accounts, were as follows as of September 30, 2019 and June 30, 2019:
As of September 30, 2019 and June 30, 2019, we had no customer receivable balances that individually represented 10% or more of our net accounts receivable.
|
Goodwill |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The changes in the carrying amount of goodwill for our subscription and software reporting segment during the three months ended September 30, 2019 were as follows:
No triggering events indicating goodwill impairment occurred during the three months ended September 30, 2019.
|
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
[=DN#
M,?XP4._O__'_ 5!+ P04 " "@@%Y/MN0^IR*B #*&P@ %0 &%Z<&XM
M,C Q.3 Y,S!?9&5F+GAM;.R]V9+C.+(F?#]/47_-=75A7XZ=GC&L?=(LJS(M
M,^OT_% 3D&
MT4[R;3Z7V3\V88EW7ZH\E_.%68^T2!B43@B$MAFB"D/H"3[(%USIB.'S::W,
M_0(W(C'.GO4ZVB;A1@'!E;"&>BV)==2K6D9A,9[FJMV;YLXSH1-./R8G)K6L
M3X\*DZ# V8R>%Y]/) TKHB+0<;S'
\)I(K93WD1EI:_
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M$'Y[JOWP4?);^G_SXI !
M_O($"<>-,H1J2A@CWB..:M2M$Q,L)C[Y::H7I"?.[_JMC6$L
M+,@ 0XF-=T#3>GRX2Z6V$5, &F-^,@7@,F1BIP P#04A5E*)H;(46B-KQE)C
MW03SR ?26S=@XN4#5^4$/J[3]=::?%OIX[Q1=Z)58H1R1"M*!?-$((&,V)>L
MX0PK$_.FE&D:=OV!-S))SB[6)]LE$EA$F:;.8!$@\T!*6\MJN9QX7F
:]E
M>"V=/;R4!K )YL%'9TM_\(TTQ;ARO0@(9>^NWH<_5 51J@>:SS(OMT\
,LWIU._E&$B+3:[-:P? ,_6BO3T^=,G?/NVT+I ,KL:C[^^3)Q+*@I32
M.&MQ&+(0GKHZ>(P(\!.]-: E]D\UUPF#UZ/#29E2<5473V6_!?AN-[ (7=)%PJCTG@E%"*"4,6,=JX!AS
M.FHAM&8>XQ J>QHO'P:]6//*8:G7WP\__M F)Z O1)_2X:WMTJ#LY0+);U VG!C#:]QABX5BM+UAQA5K *ZQH[;$*.G=Z&=)^. 6KR,ZEUMP#%
M'(^&&I?<8B^]4\@=%EJTKSI4$A]*6!+SLT@ 39,06 A*CJ
MR6"DB^:GD)K5!R9ST?#,[PZF7X[VC5 R%U8YC^^\JQP=D]6_RBJS86^%GUW6
MYX86-!!).8F:/@8$@ 70&D,N-&XO$X/=.0RSRGL&*F$I^3)^ZUNWB.S
M\\WJ2U8.>0;CPB](*#<6(X$09#1 *!6D]?$%3<@44_R&/X,Q+(;1\AO2[]M]
MAD^YFOUCLR@R]25=+"N#P.?%QW29?
^TAMTY #>JZ&HYP/,%,V1YCKI'1B\6W
MEP5XGQ6+?/XTT_P$MR[I)A&$"N1$>.49YQ2$_Y$#$DZP">YZ]\BC 9$:ES,J
MS,9%\3V0_K_3Y
TFA#< 125C*^,'FD,7<:)H]<
MAL1 R2.YQ9:2N)]()7'5:($A!)3)1U 8I'0R]7*WU)C)#6-++\/G;<0+0C20
MK ^450H,U<)');BFV3*K\KY]ZLS)BP,'V^'UUY"5+.^L\A.17*/+K&="<15-
M8(R0UTQ90O=G,.+1SLG/$]TC+QI'EUV&TG4'HP@C(8#@$ASR0AKL0ZAI98ZW
M#T89*1FEK<+0)TIYAR6@@( IR;&PR!"F+0==TP(:99J:VC.?3L8GM$/HNKF>
MY<&> [.O)1B%QXE[RP2N+KC >T#"UW1(FW\P2F,^7!R,O.XZ,*&@$3@0NC$+$N:@(4$MK^@S8I$U+FEF;O7)M
M.01*R;P?R]O-OW^%Q0N#G_I=G78J7ORUB$Z+F
MX+VEVA.KL%&8[K%!<5WETQNQ5T:_]$0.#EQ*=^7E^0BCM%0$S)V(A[PF'A25
MA%EF:@ E0R%;A^>0PM*I[^)EB*;2FOIHKA]'>?-N\:[" [GATX89S8D0=ZG[R$3+E&:]83PYWV
M^:-Y
U
MU NB)$9!X#M^ CT?)IAT)9/XQ+HM?1I>S8QA,7MY)%Y=PD9P*:A=T] H*5HU
M@T_SL#F/R