0001564590-21-004629 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2020	Jan. 26, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39030
Entity Registrant Name	CERENCE INC.
Entity Central Index Key	0001768267
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	83-4177087
Entity Address Address Line1	15 Wayside Road
Entity Address City Or Town	Burlington
Entity Address State Or Province	MA
Entity Address Postal Zip Code	01803
City Area Code	857
Local Phone Number	362-7300
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CRNC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,712,708

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Total revenues	$ 94,964	$ 77,459
Cost of revenues:
Amortization of intangible assets	1,879	2,087
Total cost of revenues	26,881	25,934
Gross profit	68,083	51,525
Operating expenses:
Research and development	24,091	23,511
Sales and marketing	8,898	7,943
General and administrative	11,617	11,483
Amortization of intangible assets	3,158	3,131
Restructuring and other costs, net	47	7,554
Total operating expenses	47,811	53,622
Income (loss) from operations	20,272	(2,097)
Interest income	18	281
Interest expense	(3,799)	(6,798)
Other income (expense), net	(2,237)	(146)
Income (loss) before income taxes	14,254	(8,760)
(Benefit from) provision for income taxes	(7,384)	3,002
Net income (loss)	$ 21,638	$ (11,762)
Net income (loss) per share:
Basic	$ 0.58	$ (0.33)
Diluted	$ 0.54	$ (0.33)
Weighted-average common share outstanding:
Basic	37,180	35,995
Diluted	43,363	35,995
License
Revenues:
Total revenues	$ 46,414	$ 40,767
Cost of revenues:
Total cost of revenues	674	681
Connected Services
Revenues:
Total revenues	27,251	23,021
Cost of revenues:
Total cost of revenues	7,013	8,675
Professional Services
Revenues:
Total revenues	21,299	13,671
Cost of revenues:
Total cost of revenues	$ 17,315	$ 14,491

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 21,638	$ (11,762)
Other comprehensive income:
Foreign currency translation adjustments	14,170	4,904
Pension adjustments, net	(30)	926
Total other comprehensive income	14,140	5,830
Comprehensive income (loss)	$ 35,778	$ (5,932)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 110,360	$ 136,067
Marketable securities	17,088	11,662
Accounts receivable, net of allowances of $579 and $1,394	60,426	49,943
Deferred costs	7,748	7,256
Prepaid expenses and other current assets	43,703	44,220
Total current assets	239,325	249,148
Property and equipment, net	29,708	29,529
Deferred costs	36,913	38,161
Operating lease right of use assets	20,630	20,096
Goodwill	1,136,356	1,128,198
Intangible assets, net	41,070	45,616
Deferred tax assets	180,166	161,759
Other assets	16,580	14,938
Total assets	1,700,748	1,687,445
Current liabilities:
Accounts payable	4,806	8,447
Deferred revenue	104,577	112,520
Short-term operating lease liabilities	6,259	5,700
Short-term debt	6,250	6,250
Accrued expenses and other current liabilities	52,200	67,857
Total current liabilities	174,092	200,774
Long-term debt	266,019	266,872
Deferred revenue, net of current portion	215,692	212,573
Long-term operating lease liabilities	16,823	17,821
Other liabilities	34,994	31,649
Total liabilities	707,620	729,689
Commitments and contingencies (Note 13)
Stockholders' Equity:
Common stock, $0.01 par value, 560,000 shares authorized; 37,685 shares issued and outstanding as of December 31, 2020; 36,842 shares issued and outstanding as of September 30, 2020.	378	369
Accumulated other comprehensive income	17,851	3,711
Additional paid-in capital	973,892	974,307
Retained earnings (accumulated deficit)	1,007	(20,631)
Total stockholders' equity	993,128	957,756
Total liabilities and stockholders' equity	$ 1,700,748	$ 1,687,445

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Statement Of Financial Position [Abstract]
Accounts receivable allowances	$ 579	$ 1,394
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	560,000,000	560,000,000
Common stock, shares issued	37,685,000	36,842,000
Common stock, shares outstanding	37,685,000	36,842,000

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in-Capital	(Accumulated Deficit) Retained Earnings	Net Parent Investment	Accumulated Other Comprehensive Income (Loss)
Balance at Sep. 30, 2019	$ 1,068,128				$ 1,097,127	$ (28,999)
Net income (loss)	(11,762)			$ (11,762)
Other comprehensive income	5,830					5,830
Distribution to Parent	(152,978)				(152,978)
Net (decrease) increase in net parent investment	11,453				(4,275)	15,728
Reclassification of net parent investment in Cerence			$ 939,874		$ (939,874)
Issuance of common stock		$ 364	(364)
Issuance of common stock, (in shares)		36,391
Stock issued pursuant to employee stock plans, (in shares)		21
Stock withheld to cover tax withholdings requirements upon stock vesting	(141)	$ 0	(141)
Stock withheld to cover tax withholdings requirements upon restricted stock vesting, (in shares)		(9)
Stock-based compensation	5,685		5,685
Balance at Dec. 31, 2019	926,215	$ 364	945,054	(11,762)		(7,441)
Balance (in shares) at Dec. 31, 2019		36,403
Balance at Sep. 30, 2020	957,756	$ 369	974,307	(20,631)		3,711
Balance (in shares) at Sep. 30, 2020		36,842
Net income (loss)	21,638			21,638
Other comprehensive income	14,140					14,140
Issuance of common stock	3,663	$ 13	3,650
Issuance of common stock, (in shares)		1,276
Stock withheld to cover tax withholdings requirements upon stock vesting	(30,258)	$ (4)	(30,254)
Stock withheld to cover tax withholdings requirements upon restricted stock vesting, (in shares)		(433)
Stock-based compensation	26,189		26,189
Balance at Dec. 31, 2020	$ 993,128	$ 378	$ 973,892	$ 1,007		$ 17,851
Balance (in shares) at Dec. 31, 2020		37,685

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ 21,638	$ (11,762)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	7,624	7,359
Benefit from credit loss reserve	(410)
Stock-based compensation	12,351	8,969
Non-cash interest expense	1,230	1,332
Deferred tax benefit	(14,106)	(4,928)
Changes in operating assets and liabilities:
Accounts receivable	(8,112)	1,691
Prepaid expenses and other assets	1,025	(18,193)
Deferred costs	2,051	(192)
Accounts payable	(3,655)	905
Accrued expenses and other liabilities	(1,960)	22,210
Deferred revenue	(6,867)	2,065
Net cash provided by operating activities	10,809	9,456
Cash flows from investing activities:
Capital expenditures	(2,369)	(3,612)
Purchases of marketable securities	(6,358)
Net cash used in investing activities	(8,727)	(3,612)
Cash flows from financing activities:
Net transaction with Parent		11,384
Distribution to Parent		(152,978)
Proceeds from long-term debt, net of discount		249,705
Payments for long-term debt issuance costs	(520)	(515)
Principal payments of long-term debt	(1,563)
Common stock repurchases for tax withholdings for net settlement of equity awards	(30,258)	(141)
Principal payment of lease liabilities arising from a finance lease	(101)	(55)
Proceeds from the issuance of common stock	3,663
Net cash (used in) provided by financing activities	(28,779)	107,400
Effects of exchange rate changes on cash and cash equivalents	990	152
Net change in cash and cash equivalents	(25,707)	113,396
Cash and cash equivalents at beginning of period	136,067
Cash and cash equivalents at end of period	110,360	113,396
Supplemental information:
Cash paid for income taxes	563	1,472
Cash paid for interest	$ 3,805	$ 3,676

Business Overview

3 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Business Overview

Note 1. Business Overview

History

On October 1, 2019 (the “Distribution Date”), Nuance Communications, Inc. (“Nuance”), a leading provider of speech and language solutions for businesses and consumers around the world, completed the complete legal and structural separation and distribution to its stockholders of all of the outstanding shares of our common stock, and its consolidated subsidiaries, in a tax free spin-off (which we refer to as the “Spin-Off”). The distribution was made in the amount of one share of our common stock for every eight shares of Nuance common stock (which we refer to as the “Distribution”) owned by Nuance’s stockholders as of 5:00 p.m. Eastern Time on September 17, 2019, the record date of the Distribution.

In connection with the Distribution, on September 30, 2019, we filed an Amended and Restated Certificate of Incorporation (the “Charter”) with the Secretary of State of the State of Delaware, which became effective on October 1, 2019. Our Amended and Restated By-laws also became effective on October 1, 2019. On October 2, 2019, our common stock began regular-way trading on the Nasdaq Global Select Market under the ticker symbol CRNC.

Business

Cerence Inc. (referred to in this Quarterly Report on Form 10-Q as “we,” “our,” “us,” “ourselves,” the “Company” or “Cerence”) is a global, premier provider of AI-powered assistants and innovations for connected and autonomous vehicles. Our customers include all major automobile original equipment manufacturers (“OEMs”), or their tier 1 suppliers worldwide. We deliver our solutions on a white-label basis, enabling our customers to deliver customized virtual assistants with unique, branded personalities and ultimately strengthening the bond between automobile brands and end users. We generate revenue primarily by selling software licenses and cloud-connected services. In addition, we generate professional services revenue from our work with OEMs and suppliers during the design, development and deployment phases of the vehicle model lifecycle and through maintenance and enhancement projects.

COVID-19 Update

In December 2019, a novel strain of coronavirus, now known as COVID-19 (“COVID-19”), was reported in Wuhan, China and has since extensively impacted the global health and economic environment. In January 2020, the World Health Organization (“WHO”) declared it a Public Health Emergency of International Concern. On February 28, 2020, the WHO raised its assessment of the COVID-19 threat from high to very high at a global level due to the continued increase in the number of cases and affected countries, and on March 11, 2020, the WHO characterized COVID-19 as a pandemic. In an effort to contain COVID-19 or slow its spread, governments around the world have enacted various measures, some of which have been subsequently rescinded, modified or reinstated, including orders to close all businesses not deemed “essential,” isolate residents to their homes or places of residence, and practice social distancing.

We have taken numerous steps in our approach to addressing the COVID-19 pandemic, as fully described in our Annual Report on Form 10-K. While certain of these measures, including temporary reductions in salaries for our current named executive officers and other senior executives, are no longer in effect as of the date of this report, we continue to closely monitor ongoing developments in connection with the COVID-19 pandemic and its impact on our business.

The full extent to which the ongoing COVID-19 pandemic adversely affects our financial performance will depend on future developments, many of which are outside of our control, are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the pandemic, its severity, the effectiveness of actions to contain the virus or treat its impact and how quickly and to what extent normal economic and operating conditions can resume. The COVID-19 pandemic could also result in additional governmental restrictions and regulations, which could adversely affect our business and financial results. In addition, a recession, depression or other sustained adverse market impact resulting from COVID-19 could materially and adversely affect our business, our access to needed capital and liquidity, and the value of our common stock. Even after the COVID-19 pandemic has lessened or subsided, we may continue to experience adverse impacts on our business and financial performance as a result of its global economic impact.

Significant Accounting Policies

3 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

Note 2. Significant Accounting Policies

Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, as well as those of our wholly owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements.

The condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three months ended December 31, 2020 are not necessarily indicative of the results to be expected for any other interim period or for the year ending September 30, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated and combined financial statements and notes contained in our Annual Report on Form 10-K for the year ended September 30, 2020.

Use of Estimates

The financial statements are prepared in accordance with GAAP, which requires management to make estimates and assumptions. These estimates, judgments and assumptions can affect the reported amounts in the financial statements and the footnotes thereto. Actual results could differ materially from these estimates.

On an ongoing basis, we evaluate our estimates, assumptions and judgments. Significant estimates inherent to the preparation of financial statements include: revenue recognition; allowance for credit losses; accounting for deferred costs; accounting for internally developed software; the valuation of goodwill and intangible assets; accounting for business combinations; accounting for stock-based compensation; accounting for income taxes; accounting for leases; accounting for convertible debt; and loss contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual amounts could differ significantly from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand, including money-market funds with original maturities of 90 days or less. As of December 31, 2020, the estimated fair value of our money-market funds was $82.9 million. We estimated the fair value of our money-market funds from quoted prices for identical assets in active markets on the last trading day of the reporting period (Level 1).

Concentration of Risk

Financial instruments that potentially subject us to significant concentrations of credit risk primarily consist of trade accounts receivable. We perform ongoing credit evaluations of our customers’ financial condition and limit the amount of credit extended when deemed appropriate. Two customers accounted for 15.1% and 12.9% of our accounts receivable, net balance at December 31, 2020. Two customers accounted for 15.0% and 11.1% of our accounts receivable, net balance at September 30, 2020.

Derivative Financial Instruments

We use derivative instruments, including forward contracts, to help manage foreign currency exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. Derivatives that qualify for hedge accounting can be designated as either cash flow hedges, net investment hedges, or fair value hedges. We may enter into derivative contracts that economically hedge certain risks, even when hedge accounting does not apply, or we elect not to apply hedge accounting.

Derivatives are recognized in the Condensed Consolidated Balance Sheet at fair value on a gross basis as either assets or liabilities and classified as current or noncurrent based upon whether the maturity of the instrument is less than or greater than 12 months.

Changes in the fair value of derivatives not designated as hedges are reported in earnings primarily in other income (expense), net. The cash flows associated with derivatives not designated as hedges are reported in cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows.

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. This standard is effective for interim and annual reporting periods beginning after December 15, 2019. This standard is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to Accumulated deficit as of the beginning of the first reporting period in which the guidance of this standard is effective.

We adopted ASU 2016-13 using the modified retrospective approach as of October 1, 2020. The effects of applying ASU 2016-13 as a cumulative-effect adjustment to Retained earnings was immaterial.

Recently Issued Accounting Pronouncements to be Adopted

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for debt with conversion options, revises the criteria for applying the derivatives scope exception for contracts in an entity’s own equity, and improves the consistency for the calculation of earnings per share. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2021, our fiscal year 2023. Early adoption is permitted for annual periods and interim periods within those annual periods beginning after December 15, 2020, our fiscal year 2022. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements.

Revenue Recognition

3 Months Ended

Dec. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

Note 3. Revenue Recognition

We primarily derive revenue from the following sources: (1) royalty-based software license arrangements, (2) connected services, and (3) professional services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transaction including mandatory government charges that are passed through to our customers. We account for a contract when both parties have approved and committed to the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

Our arrangements with customers may contain multiple products and services. We account for individual products and services separately if they are distinct—that is, if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer.

We currently recognize revenue after applying the following five steps:

•

identification of the contract, or contracts, with a customer;

•

identification of the performance obligations in the contract, including whether they are distinct within the context of the contract;

•

determination of the transaction price, including the constraint on variable consideration;

•

allocation of the transaction price to the performance obligations in the contract;

•

recognition of revenue when, or as, performance obligations are satisfied.

We allocate the transaction price of the arrangement based on the relative estimated standalone selling price (“SSP”) of each distinct performance obligation. In determining SSP, we maximize observable inputs and consider a number of data points, including:

•

the pricing of standalone sales (in the instances where available);

•

the pricing established by management when setting prices for deliverables that are intended to be sold on a standalone basis;

•

contractually stated prices for deliverables that are intended to be sold on a standalone basis; and

•

other pricing factors, such as the geographical region in which the products are sold and expected discounts based on the customer size and type.

We only include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We reduce transaction prices for estimated returns and other allowances that represent variable consideration under Accounting Standards Codification (“ASC”) 606, which we estimate based on historical return experience and other relevant factors, and record a corresponding refund liability as a component of accrued expenses and other current liabilities. Other forms of contingent revenue or variable consideration are infrequent.

Revenue is recognized when control of these products or services are transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services.

We assess the timing of the transfer of products or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. In accordance with the practical expedient in ASC 606-10-32-18, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set-up fees nor other upfront fees paid by our customers to represent a financing component.

Reimbursements for out-of-pocket costs generally include, but are not limited to, costs related to transportation, lodging and meals. Revenue from reimbursed out-of-pocket costs is accounted for as variable consideration.

(a) Performance Obligations

Licenses

Software and technology licenses sold with non-distinct professional services to customize and/or integrate the underlying software and technology are accounted for as a combined performance obligation. Revenue from the combined performance obligation is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours. For income statement presentation purposes, we separate license revenue from professional services revenue based on their relative SSPs.

Revenue from distinct software and technology licenses, which do not require professional services to customize and/or integrate the software license, is recognized at the point in time when the software and technology is made available to the customer and control is transferred.

Revenue from software and technology licenses sold on a royalty basis, where the license of non-exclusive intellectual property is the predominant item to which the royalty relates, is recognized in the period the usage occurs in accordance with ASC 606-10-55-65(A).

Connected Services

Connected services, which allow our customers to use the hosted software over the contract period without taking possession of the software, are provided on a usage basis as consumed or on a fixed fee subscription basis. Subscription basis revenue represents a single promise to stand-ready to provide access to our connected services. Our connected services contract terms generally range from one to five years.

As each day of providing services is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, we have determined that our connected services arrangements are a single performance obligation comprised of a series of distinct services. These services include variable consideration, typically a function of usage. We recognize revenue as each distinct service period is performed (i.e., recognized as incurred).

Our connected service arrangements generally include services to develop, customize, and stand-up applications for each customer. In determining whether these services are distinct, we consider dependence of the Cloud service on the up-front development and stand-up, as well as availability of the services from other vendors. We have concluded that the up-front development, stand-up and customization services are not distinct performance obligations, and as such, revenue for these activities is

recognized over the period during which the cloud-connected services are provided, and is included within connected services revenue.

Professional Services

Revenue from distinct professional services, including training, is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours.

(b) Significant Judgments

Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Our license contracts often include professional services to customize and/or integrate the licenses into the customer’s environment. Judgment is required to determine whether the license is considered distinct and accounted for separately, or not distinct and accounted for together with professional services. Furthermore, hybrid contracts that contain both embedded and connected license and professional services are analyzed to determine if the services are distinct or have stand-alone functionality to determine the revenue treatment.

Judgments are required to determine the SSP for each distinct performance obligation. When the SSP is directly observable, we estimate the SSP based upon the historical transaction prices, adjusted for geographic considerations, customer classes, and customer relationship profiles. In instances where the SSP is not directly observable, we determine the SSP using information that may include market conditions and other observable inputs. We may have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. Determining the SSP for performance obligations which we never sell separately also requires significant judgment. In estimating the SSP, we consider the likely price that would have resulted from established pricing practices had the deliverable been offered separately and the prices a customer would likely be willing to pay. For hybrid deals that contain future royalties, the allocation of SSP is determined using any fixed payments as well as the forecasted volume usage.

Revenues, classified by the major geographic region in which our customers are located, for the three months ended December 31, 2020 and 2019 (dollars in thousands):

	Three Months Ended December 31,
	2020		2019
Revenues:
United States	$	33,051	$	35,041
Other Americas		43		8
Germany		32,044		20,217
Other Europe, Middle East and Africa		3,469		4,597
Japan		12,673		11,411
Other Asia-Pacific		13,684		6,185
Total net revenues	$	94,964	$	77,459

Revenues within the United States, Germany, and Japan accounted for more than 10% of revenue, respectively, for all periods presented.

Revenues relating to one customer accounted for $17.9 million, or 18.9% of revenues for the three months ended December 31, 2020. One customer accounted for $18.0 million, or 23.2%, of revenues for the three months ended December 31, 2019.

(d) Contract Acquisition Costs

In conjunction with the adoption of ASC 606, we are required to capitalize certain contract acquisition costs. The capitalized costs primarily relate to paid commissions. In accordance with the practical expedient in ASC 606-10-10-4, we apply a portfolio approach to estimate contract acquisition costs for groups of customer contracts. We elect to apply the practical expedient in ASC 340-40-25-4 and will expense contract acquisition costs as incurred where the expected period of benefit is one year or less. Contract acquisition costs are deferred and amortized on a straight-line basis over the period of benefit, which we have estimated to be, on average, between one and eight years. The period of benefit was determined based on an average customer contract term, expected

contract renewals, changes in technology and our ability to retain customers, including canceled contracts. We assess the amortization term for all major transactions based on specific facts and circumstances. Contract acquisition costs are classified as current or noncurrent assets based on when the expense will be recognized. The current and noncurrent portions of contract acquisition costs are included in prepaid expenses and other current assets, and in other assets, respectively. As of December 31, 2020, we had $5.9 million of contract acquisition costs. We had amortization expense of $0.4 million and $0.2 million related to these costs during the three months ended December 31, 2020 and 2019, respectively. There was no impairment related to contract acquisition costs.

(e) Capitalized Contract Costs

We capitalize incremental costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (iii) are expected to be recovered through revenue generated under the contract. Our capitalized costs consist primarily of setup costs, such as costs to standup, customize and develop applications for each customer, which are incurred to satisfy our stand-ready obligation to provide access to our connected offerings. These contract costs are expensed to cost of revenue as we satisfy our stand-ready obligation over the contract term which we estimate to be between one and eight years, on average. The contract term was determined based on an average customer contract term, expected contract renewals, changes in technology, and our ability to retain customers, including canceled contracts. We classify these costs as current or noncurrent based on the timing of when we expect to recognize the expense. The current and noncurrent portions of capitalized contract fulfillment costs are presented as deferred costs. As of December 31, 2020, we had $44.7 million of capitalized contract costs.

We had amortization expense of $4.3 million and $2.7 million related to these costs during the three months ended December 31, 2020 and 2019, respectively. There was no impairment related to contract costs capitalized.

(f) Trade Accounts Receivable and Contract Balances

We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). We present such receivables in accounts receivable, net at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.

Contract assets include unbilled amounts from long-term contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not solely subject to the passage of time. Contract assets are included in prepaid expenses and other current assets. The table below shows significant changes in contract assets (dollars in thousands):

	Contract assets
Balance as of October 1, 2020	$	30,277
Revenues recognized but not billed		17,535
Amounts reclassified to accounts receivable, net		(12,997	)
Balance as of December 31, 2020	$	34,815
Less: allowance for credit losses		(387	)
Balance as of December 31, 2020, net	$	34,428

Our contract liabilities, which we present as deferred revenue, consist of advance payments and billings in excess of revenues recognized. We classify deferred revenue as current or noncurrent based on when we expect to recognize the revenues. The table below shows significant changes in deferred revenue (dollars in thousands):

	Deferred revenue
Balance as of October 1, 2020	$	325,093
Amounts billed but not recognized		28,877
Revenue recognized		(33,701	)
Balance as of December 31, 2020	$	320,269

(g) Remaining Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at December 31, 2020 (dollars in thousands):

Within One

Year

Two to Five

Years

Greater

than

Five Years

Total

Total revenue

156,563

189,291

31,243

377,097

The table above includes fixed backlogs and does not include variable backlogs derived from contingent usage-based activities, such as royalties and usage-based connected services.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Earnings Per Share

3 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Note 4. Earnings Per Share

Basic earnings per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of restricted stock units are reflected in diluted net income per share by applying the treasury stock method.

The dilutive effect of the Notes (as defined in Note 15) is reflected in net income per share by application of the “if-converted” method. The “if-converted” method is only assumed in periods where such application would be dilutive. In applying the “if-converted” method for diluted net income per share, we would assume conversion of the Notes at a ratio of 26.7271 shares of our common stock per $1,000 principal amount of the Notes. Assumed converted shares of our common stock are weighted for the period the Notes were outstanding. The shares of common stock underlying the conversion option of our Notes were included in the calculation of diluted income per share for the three months ended December 31, 2020.

The following table presents the reconciliation of the numerator and denominator for calculating net income (loss) per share:

	Three Months Ended December 31,
in thousands, except per share data	2020		2019
Numerator:
Net income (loss) - basic	$	21,638	$	(11,762	)
Interest on Convertible Senior Notes, net of tax		1,831		-
Net income (loss) - diluted	$	23,469	$	(11,762	)

Denominator:
Weighted average common shares outstanding - basic		37,180		35,995
Dilutive effect of restricted stock awards		1,506		-
Dilutive effect of the Notes		4,677		-
Weighted average common shares outstanding - diluted		43,363		35,995

Net income (loss) per common share:
Basic	$	0.58	$	(0.33	)
Diluted	$	0.54	$	(0.33	)

We exclude weighted-average potential shares from the calculations of diluted net (loss) income per share during the applicable periods because their inclusion would have been anti-dilutive. The following table set forth potential shares that were considered anti-dilutive during the three months ended December 31, 2020 and at December 31, 2019:

	December 31,		December 31,
in thousands	2020		2019
Restricted stock unit awards		-		1,923

Fair Value Measurements

3 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 5. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques must maximize the use of observable inputs and minimize

the use of unobservable inputs. When determining fair value measurements for assets and liabilities recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use in pricing the asset or liability.

The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement as of the measurement date as follows:

•

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

•

Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the assets or liabilities.

•

Level 3 - Unobservable inputs that are supported by little or no market activity.

The following table presents information about our financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (dollars in thousands) as of:

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market funds	$	82,891	$	-	$	-	$	82,891
Marketable securities:
Commercial paper, $14,384 at cost	$	-	$	14,384	$	-	$	14,384
Corporate bonds, $3,637 at cost		-		3,637		-		3,637
Total assets	$	82,891	$	18,021	$	-	$	100,912

	September 30, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market funds	$	101,437	$	-	$	-	$	101,437
Marketable securities:
Commercial paper, $9,883 at cost	$	-	$	9,883	$	-	$	9,883
Corporate bonds, $1,780 at cost		-		1,779		-		1,779
Total assets	$	101,437	$	11,662	$	-	$	113,099

During the three months ended December 31, 2020, we recorded an immaterial amount of unrealized losses related to our marketable securities within Accumulated other comprehensive loss. During the three months ended December 31, 2019, we did not possess any marketable securities.

The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above.

Long-term debt

The estimated fair value of our Long-term debt is determined by Level 2 inputs and is based on observable market data including prices for similar instruments. As of December 31, 2020 and September 30, 2020, the estimated fair value of our Notes was $501.8 million and $271.0 million, respectively. The Notes are recorded at face value less unamortized debt discount and transaction costs on our condensed consolidated balance sheets. The carrying amount of the Senior Credit Facilities (as defined in Note 15) approximates fair value given the underlying interest rate applied to such amounts outstanding which is currently set to the prevailing market rate.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

3 Months Ended

Dec. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 6. Derivative Financial Instruments

We operate internationally and, in the normal course of business, are exposed to fluctuations in foreign currency exchange rates related to third-party vendor and intercompany payments for goods and services within our non-U.S. subsidiaries. We use foreign exchange forward contracts that are not designated as hedges to manage currency risk. The contracts can have maturities up to

three years. At December 31, 2020, the total notional amount of forward contracts not designated as cash flow hedges of forecasted cost transactions was $55.3 million. At December 31, 2020, the weighted-average remaining maturity of these instruments was approximately 11.7 months.

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments as of December 31, 2020 and 2019 (dollars in thousands):

		Fair Value
Derivatives not designated as hedges	Classification	December 31, 2020		September 30, 2020
Foreign currency forward contracts	Prepaid expenses and other current assets	$	496	$	-
Foreign currency forward contracts	Other assets		296		-
Foreign currency forward contracts	Accrued expenses and other current liabilities		279		-
Foreign currency forward contracts	Other liabilities	$	182	$	-

The following tables display a summary of the income (loss) related to foreign currency forward contracts for the three months ended December 31, 2020 and 2019 (dollars in thousand):

		Gain recognized in earnings
		Three Months Ended
Derivatives not designated as hedges	Classification	December 31, 2020		December 31, 2019
Foreign currency forward contracts	Other income (expense), net	$	386	$	-

Credit Losses

3 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Credit Losses

Note 7. Credit Losses

We are exposed to credit losses primarily through our sales of software licenses and services to customers. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. A credit limit for each customer is established and in certain cases we may require collateral or prepayment to mitigate credit risk. Our expected loss methodology is developed using historical collection experience, current customer credit information, current and future economic and market conditions and a review of the current status of the customer's account balances. We monitor our ongoing credit exposure through reviews of customer balances against contract terms and due dates, current economic conditions, and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible.

The change in the allowance for credit losses for the three months ended December 31, 2020 is as follows (dollars in thousands):

	Allowance for Credit Losses
Balance as of September 30, 2020	$	(1,394	)
Current period recovery for expected credit losses		483
Write-offs charged against the allowance for expected credit losses		(73	)
Foreign exchange impact on ending balance		18
Balance as of December 31, 2020	$	(966	)

Goodwill and Other Intangible Assets

3 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 8. Goodwill and Other Intangible Assets

(a) Goodwill

We believe our Chief Executive Officer (“CEO”) is our chief operating decision maker (“CODM”). Our CEO approves all major decisions, including reorganizations and new business initiatives. Our CODM reviews routine consolidated operating information and makes decisions on the allocation of resources at this level, as such, we have concluded that we have one operating segment.

All goodwill is assigned to one or more reporting units. A reporting unit represents an operating segment or a component within an operating segment for which discrete financial information is available and is regularly reviewed by segment management for performance assessment and resource allocation. Upon consideration of our components, we have concluded that our goodwill is associated with one reporting unit.

On December 31, 2020, we concluded that no goodwill impairment indicators were present. We will continue to monitor the impacts of the COVID-19 pandemic on our reporting unit fair value. The full extent to which the ongoing COVID-19 pandemic could adversely affect our financial performance will depend on future developments, many of which are outside of our control.

The changes in the carrying amount of goodwill for the three months ended December 31, 2020 are as follows (dollars in thousands):

	Total
Balance as of October 1, 2020	$	1,128,198
Effect of foreign currency translation		8,158
Balance as of December 31, 2020	$	1,136,356

(b) Intangible Assets, Net

As of December 31, 2020, there were no indicators of impairment present related to our long-lived asset group.

The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands):

	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	112,430	$	(80,499	)	$	31,931		2.8
Technology and patents		91,408		(82,269	)		9,139		1.4
Total	$	203,838	$	(162,768	)	$	41,070

	September 30, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	110,512	$	(75,915	)	$	34,597		3.0
Technology and patents		90,658		(79,639	)		11,019		1.6
Total	$	201,170	$	(155,554	)	$	45,616

Amortization expense related to intangible assets in the aggregate was $5.0 million and $5.2 million for the three months ended December 31, 2020 and 2019, respectively. We expect amortization of intangible assets to be approximately $15.2 million for the remainder of fiscal year 2021.

Leases

3 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Note 9. Leases

We have entered into a number of facility leases to support our research and development activities, sales operations, and other corporate and administrative functions in North America, Europe, and Asia, which qualify as operating leases under GAAP. We also have a limited number of equipment leases that also qualify as operating leases. We determine if contracts with vendors represent a lease or have a lease component under GAAP at contract inception. As part of our acquisition of Voicebox Technologies Corporation (“Voicebox”), we assumed certain leases for various equipment, which we have accounted for as finance leases. Our leases have remaining terms ranging from less than one year to seven years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment.

The following table presents certain information related to lease term and incremental borrowing rates for leases as of December 31, 2020 and September 30, 2020:

	December 31, 2020			September 30, 2020
Weighted-average remaining lease term (in months):
Operating leases		51.8			55.9
Finance leases		52.7			55.8
Weighted-average discount rate:
Operating leases		7.2	%		7.4	%
Finance leases		4.4	%		4.4	%

Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. For operating leases, costs are included within cost of revenues, research and development, marketing and selling, and general and administrative lines on the condensed consolidated statements of operations. For financing leases, amortization of the finance right-of-use assets is included within research and development, marketing and selling, and general and administrative lines on the condensed consolidated statements of operations, and interest expense is included within the other income (expense), net.

The following table presents lease expense for the three months ended December 31, 2020 and 2019 (dollars in thousands):

	Three months ended December 31, 2020			Three months ended December 31, 2019
Finance lease costs:
Amortization of right of use asset	$	141		$	36
Interest on lease liability		15			-
Operating lease cost		2,229			1,890
Variable lease cost		20			309
Sublease income		(53	)		(55	)
Total lease cost	$	2,352		$	2,180

For operating leases, the related cash payments are included in the operating cash flows on the condensed consolidated statements of cash flows. For the three months ended December 31, 2020 and 2019, cash payments related to operating leases were $2.3 million and $1.7 million, respectively. For financing leases, the related cash payments for the principal portion of the lease liability are included in the financing cash flows on the condensed consolidated statement of cash flows and the related cash payments for the interest portion of the lease liability are included within the operating section of the condensed consolidated statement of cash flows. For the three months ended December 31, 2020 and 2019, cash payments related to financing leases were $0.1 million and $0.1 million, of which an immaterial amount related to the interest portion of the lease liability.

The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the condensed consolidated balance sheet as of December 31, 2020 (dollars in thousands):

Year Ending September 30,	Operating Leases			Financing Leases			Total
2021 (excluding three months ended December 31, 2020)	$	5,850		$	339		$	6,189
2022		6,811			416			7,227
2023		4,746			416			5,162
2024		4,218			365			4,583
2025		2,319			310			2,629
Thereafter		2,999			15			3,014
Total future minimum lease payments	$	26,943		$	1,861		$	28,804
Less effects of discounting		(3,861	)		(163	)		(4,024	)
Total lease liabilities	$	23,082		$	1,698		$	24,780
Reported as of December 31, 2020
Short-term lease liabilities	$	6,259		$	370		$	6,629
Long-term lease liabilities		16,823			1,328			18,151
Total lease liabilities	$	23,082		$	1,698		$	24,780

Accrued Expenses and Other Liabilities

3 Months Ended

Dec. 31, 2020

Accrued Liabilities And Other Liabilities [Abstract]

Accrued Expenses and Other Liabilities

Note 10. Accrued Expenses and Other Liabilities

Accrued expenses and other current liabilities consisted of the following (dollars in thousands):

	December 31, 2020		September 30, 2020
Compensation	$	22,065	$	37,960
Cost of revenue related liabilities		4,011		3,683
Sales and other taxes payable		18,031		14,688
Professional fees		3,223		2,458
Interest Payable		1,444		2,703
Other		3,426		6,365
Total	$	52,200	$	67,857

Restructuring and Other Costs, Net

3 Months Ended

Dec. 31, 2020

Restructuring And Related Activities [Abstract]

Restructuring and Other Costs, Net

Note 11. Restructuring and Other Costs, Net

Restructuring and other costs, net includes restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of our business. The following table sets forth accrual activity relating to restructuring reserves for the three months ended December 31, 2020 (dollars in thousands):

	Personnel			Facilities			Restructuring Subtotal			Other		Total
Balance at October 1, 2020	$	764		$	1,745		$	2,509		$	1,928	$	4,437
Restructuring and other costs, net		336			(315	)		21			26		47
Non-cash adjustments		—			1,074			1,074			—		1,074
Cash (payments) receipts		(264	)		(128	)		(392	)		567		175
Foreign exchange impact on ending balance		6			1			7			—		7
Balance at December 31, 2020	$	842		$	2,377		$	3,219		$	2,521	$	5,740

The following table sets forth restructuring and other costs, net recognized for the three months ended December 31, 2020 and 2019 (dollars in thousands):

	Three Months Ended December 31,
	2020			2019
Personnel	$	336		$	360
Facilities		(315	)		—
Restructuring subtotal		21			360
Other		26			7,194
Restructuring and other costs, net	$	47		$	7,554

Fiscal Year 2021

For the three months ended December 31, 2020, we recorded restructuring charges of $47 thousand, which included a $0.3 million severance charge related to the elimination of personnel and a $0.3 million recovery resulting from the restructuring of facilities that will no longer be utilized, including adjustments to assumptions associated with these facilities.

Fiscal Year 2020

For the three months ended December 31, 2019, we recorded restructuring charges of $7.6 million, which included a $0.4 million severance charge related to the elimination of personnel, and $7.2 million related to costs incurred to establish the Cerence business as a standalone public company.

Stockholder's Equity

3 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholder's Equity

Note 12. Stockholder’s Equity

Per the Amended and Restated Certificate of Incorporation, which was adopted on October 1, 2019, 600,000,000 shares of capital stock have been authorized, consisting of 40,000,000 shares of Preferred Stock, par value $0.01 per share, or Preferred Stock, and 560,000,000 shares of Common Stock, par value $0.01 per share (“Common Stock”).

On October 2, 2019, we registered the issuance of 6,350,000 shares of Common Stock, consisting of 5,300,000 shares of Common Stock reserved for issuance upon the exercise of options granted, or in respect of awards granted, under the Cerence 2019 Equity Incentive Plan, (“Equity Incentive Plan”), and 1,050,000 shares of Common Stock that are reserved for issuance under the Cerence 2019 Employee Stock Purchase Plan.

The Equity Incentive Plan provides for the grant of incentive stock options, stock awards, stock units, stock appreciation rights, and certain other stock-based awards. Awards issued under the Plan may not have a term greater than ten years from the date of grant.

Restricted Units

Information with respect to our non-vested restricted stock units for the three months ended December 31, 2020 was as follows:

	Non-Vested Restricted Stock Units
	Time-Based Shares			Performance- Based Shares			Total Shares			Weighted- Average Grant-Date Fair Value		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Non-vested at October 1, 2020		2,042,918			771,387			2,814,305		$	18.63
Granted		635,810			289,380			925,190		$	56.97
Vested		(872,310	)		(403,502	)		(1,275,812	)	$	39.16
Forfeited		(6,754	)		(1,596	)		(8,350	)	$	35.94
Non-vested at December 31, 2020		1,799,664			655,669			2,455,333		$	36.79		1.40	$	246,896
Expected to vest								2,455,333		$	36.79		1.40	$	246,896

Stock-based Compensation

Stock-based compensation was included in the following captions in our Condensed Consolidated Statements of Operations for the three months ended December 31, 2020 and 2019 (in thousands):

	Three Months Ended December 31,
	2020		2019
Cost of connected services	$	291	$	352
Cost of professional services		1,294		871
Research and development		4,098		2,975
Sales and marketing		2,529		1,590
General and administrative		4,139		3,181
	$	12,351	$	8,969

Commitments and Contingencies

3 Months Ended

Dec. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13. Commitments and Contingencies

Litigation and Other Claims

Similar to many companies in the software industry, we are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including at times actions with respect to contracts, intellectual property, employment, benefits and securities matters. At each balance sheet date, we evaluate contingent liabilities associated with these matters in accordance with ASC 450 “Contingencies.” If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss. Significant judgments are required for the determination of probability and the range of the outcomes, and estimates are based only on the best information available at the time. Due to the inherent uncertainties involved in claims and legal proceedings and in estimating losses that may arise, actual outcomes may differ from our estimates. Contingencies deemed not probable or for which losses were not estimable in one period may become probable, or losses may become estimable in later periods, which may have a material impact on our results of operations and financial position. As of December 31, 2020, accrued losses were not material to our condensed consolidated financial statements, and we do not expect any pending matter to have a material impact on our condensed consolidated financial statements.

Guarantees and Other

We include indemnification provisions in the contracts we enter with customers and business partners. Generally, these provisions require us to defend claims arising out of our products’ infringement of third-party intellectual property rights, breach of contractual obligations and/or unlawful or otherwise culpable conduct. The indemnity obligations generally cover damages, costs and attorneys’ fees arising out of such claims. In most, but not all cases, our total liability under such provisions is limited to either the value of the contract or a specified, agreed-upon amount. In some cases, our total liability under such provisions is unlimited. In many, but not all cases, the term of the indemnity provision is perpetual. While the maximum potential amount of future payments we could be required to make under all the indemnification provisions is unlimited, we believe the estimated fair value of these provisions is minimal due to the low frequency with which these provisions have been triggered.

We indemnify our directors and officers to the fullest extent permitted by Delaware law, which provides among other things, indemnification to directors and officers for expenses, judgments, fines, penalties and settlement amounts incurred by such persons in their capacity as a director or officer of the Company, regardless of whether the individual is serving in any such capacity at the time the liability or expense is incurred. Additionally, in connection with certain acquisitions, we agreed to indemnify the former officers and members of the boards of directors of those companies, on similar terms as described above, for a period of six years from the acquisition date. In certain cases, we purchase director and officer insurance policies related to these obligations, which fully cover the six-year period. To the extent that we do not purchase a director and officer insurance policy for the full period of any contractual indemnification, and such directors and officers do not have coverage under separate insurance policies, we would be required to pay for costs incurred, if any, as described above.

As of December 31, 2020, we have a $1.7 million letter of credit that is used as a security deposit in connection with our leased Bellevue, Washington office space. In the event of default on the underlying lease, the landlord would be eligible to draw against the letter of credit. The letter of credit is subject to aggregate reductions, provided that we are not in default under the underlying lease. We also have letters of credit in connection with security deposits for other facility leases totaling $0.7 million in the aggregate. These letters of credit have various terms and expire during fiscal year 2021 and beyond, while some of the letters of credit may automatically renew based on the terms of the underlying agreements.

Income Taxes

3 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Note 14. Income Taxes

The components of income (loss) before income taxes are as follows (dollars in thousands):

	Three Months Ended December 31,
	2020		2019
Domestic	$	5,245	$	(7,128	)
Foreign		9,009		(1,632	)
Income (loss) before income taxes	$	14,254	$	(8,760	)

The components of (benefit from) provision for income taxes are as follows (dollars in thousands):

	Three Months Ended December 31,
	2020			2019
Domestic	$	1,020		$	(3,218	)
Foreign		(8,404	)		6,220
(Benefit from) provision for income taxes	$	(7,384	)	$	3,002
Effective income tax rate		(51.8	)%		(34.3	)%

The effective tax rates for the periods presented are based on the statutory tax rates enacted in the jurisdictions in which we operate. For both periods presented, the effective tax rate differs from the 21.0% statutory U.S. tax rate due to the impact of the nondeductible stock-based compensation, U.S. inclusions of global intangible low-taxed income (GILTI), and our mix of jurisdictional earnings and related differences in foreign statutory tax rates.

Our effective tax rate for the three months ended December 31, 2020 was negative 51.8% compared to negative 34.3% for the three months ended December 31, 2019. Consequently, our benefit from income taxes for the three months ended December 31, 2020 was $7.4 million, a net change of $10.4 million for a provision for income taxes of $3.0 million for the three months ended December 31, 2019. This difference was attributable to a $15.8 million tax benefit recorded as a result of an increase to the enacted Netherlands tax rate in the first quarter of fiscal 2021 and the realization of a $2.6 million tax benefit related to stock-based compensation in the period. This compares to a $5.0 million tax benefit realized during the three months ended December 31, 2019, which was the result of a previous change to the Netherlands enacted tax rate.

Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Long-Term Debt

3 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt

Note 15. Long-Term Debt

Long-term debt consisted of the following (in thousands):

	December 31, 2020			September 30, 2020
3.00% Convertible Senior Notes due 2025, net of unamortized discount of $17,678 and deferred issuance costs of $4,445 at December 31, 2020. Effective interest rate 6.29%.	$	152,877		$	151,791
Senior Credit Facilities, net of unamortized discount of $2,216 and deferred issuance costs of $268 at December 31, 2020. Effective interest rate 3.39%.		119,392			121,331
Total debt	$	272,269		$	273,122
Less: current portion		(6,250	)		(6,250	)
Total long-term debt	$	266,019		$	266,872

The following table summarizes the maturities of our borrowing obligations as of December 31, 2020 (in thousands):

Fiscal Year	Convertible Senior Notes			Senior Facilities			Total
2021	$	—		$	4,688		$	4,688
2022		—			6,250			6,250
2023		—			10,938			10,938
2024		—			12,500			12,500
2025		175,000			87,500			262,500
Thereafter		—			—			—
Total before unamortized discount and issuance costs and current portion	$	175,000		$	121,876		$	296,876
Less: unamortized discount and issuance costs		(22,123	)		(2,484	)		(24,607	)
Less: current portion of long-term debt		—			(6,250	)		(6,250	)
Total long-term debt	$	152,877		$	113,142		$	266,019

3.00% Senior Convertible Notes due 2025

On June 2, 2020, in an effort to refinance our debt structure, we issued $175.0 million in aggregate principal amount of 3.00% Convertible Senior Notes due 2025 (the “Notes”), including the initial purchasers’ exercise in full of their option to purchase an additional $25.0 million principal amount of the Notes, between the Company and U.S. Bank National Association, as trustee (the “Trustee”), in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The net proceeds from the issuance of the Notes were $169.8 million after deducting transaction costs. We used net proceeds from the issuance of the Notes to repay a portion of our indebtedness under the Credit Agreement, dated October 1, 2019, by and among the Company, the lenders and issuing banks party thereto and Barclays Bank PLC, as administrative agent (the “Existing Facility”).

The Notes are senior, unsecured obligations and will accrue interest payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020, at a rate of 3.00% per year. The Notes will mature on June 1, 2025, unless earlier converted, redeemed, or repurchased. The Notes are convertible into cash, shares of the Company’s Common Stock or a combination of cash and shares of the Company’s Common Stock, at the Company’s election.

The conversion rate will initially be 26.7271 shares of our Common Stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $37.42 per share of our Common Stock).

As of December 31, 2020, the carrying amount of the equity component, net of taxes and transaction costs was $14.4 million.

The interest expense recognized related to the Notes for the three months ended December 31, 2020 was as follows (dollars in thousands):

	Three Months Ended December 31, 2020
Contractual interest expense	$	1,322
Amortization of debt discount		868
Amortization of issuance costs		218
Total interest expense related to the Notes	$	2,408

The conditional conversion feature of the Notes was triggered in the three months ended December 31, 2020, and the Notes are therefore convertible during the fiscal quarter ending on March 31, 2021. Whether any of the Notes will be convertible in future quarters will depend on the satisfaction of one or more of the conversion conditions in the future. If one or more holders elect to convert their Notes at a time when any such Notes are convertible, unless we elect to satisfy our conversion obligation by delivering solely shares of our common stock (other than paying cash in lieu of delivering any fractional share), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity.

Senior Credit Facilities

On June 12, 2020 (the “Financing Closing Date”), in connection with our effort to refinance our existing indebtedness, we entered into a Credit Agreement, by and among the Borrower, the lenders and issuing banks party thereto and Wells Fargo Bank, N.A., as administrative agent (the “Credit Agreement”), consisting of a four-year senior secured term loan facility in the aggregate principal amount of $125.0 million (the “Term Loan Facility”). The net proceeds from the issuance of the Term Loan Facility were $123.0 million, which together with proceeds from the Convertible Senior Notes was intended to pay in full all indebtedness under the Existing Facility, and paid fees and expenses in connection with the Senior Credit Facilities. We also entered into a senior secured first-lien revolving credit facility in an aggregate principal amount of $50.0 million (the “Revolving Facility” and, together with the Term Loan Facility, the “Senior Credit Facilities”), which shall be drawn on in the event that our working capital and other cash needs are not supported by our operating cash flow. As of December 31, 2020, there were no amounts outstanding under the Revolving Facility.

On December 17, 2020 (the “Amendment No. 1 Effective Date”), we entered into Amendment No. 1 to the Credit Agreement (the “Amendment”). The Amendment extended the scheduled maturity date of the revolving credit and term facilities from June 12, 2024 to April 1, 2025. The Amendment was accounted for as a debt modification, and therefore, $0.5 million of the refinancing fees paid directly to lender were recorded as deferred debt issuance costs, and $0.1 million of the refinancing fees paid to third parties were expensed in the period.

The Amendment, among other things, revised certain interest rates in the Credit Agreement. Following delivery of a compliance certificate for the first full fiscal quarter after the Amendment No. 1 Effective Date, the applicable margins for the revolving credit and term facilities is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the applicable margin is LIBOR plus 3.00% or ABR plus 2.00%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the applicable margin is LIBOR plus 2.75% or ABR plus 1.75%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the applicable margin is LIBOR plus 2.50% or ABR plus 1.50%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the applicable margin is LIBOR plus 2.25% or ABR plus 1.25%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the applicable margin is LIBOR plus 2.20% or ABR plus 1.00%. As a result of the Amendment, the applicable LIBOR floor was reduced from 0.50% to 0.00%. From the Amendment No. 1 Effective Date until the date on which the financial statements are delivered for the fiscal quarter ended December 31, 2020, the interest rate will be LIBOR plus 2.50% or ABR plus 1.50%. Total interest expense relating to the Senior Credit Facilities for the fiscal quarter ended December 31, 2020 was $1.4 million, reflecting the coupon and accretion of the discount.

In addition, the quarterly commitment fee required to be paid based on the unused portion of the revolving facility is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the unused line fee is 0.500%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the unused line fee is 0.450%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the unused line fee is 0.400%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the unused line fee is 0.350%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the unused line fee is 0.300%.

The Amendment also revised the amount by which we are obligated to make quarterly principal payments. Through the fiscal quarter ending December 31, 2022, we are obligated to make quarterly principal payments in an aggregate amount equal to 1.25% of the original principal amount of the Term Loan Facility. From the fiscal quarter ending March 31, 2023 and for each fiscal quarter thereafter, we are obligated to make quarterly principal payments in an aggregate amount equal to 2.50% of the original principal amount of the Term Loan Facility, with the balance payable at the maturity date thereof.

The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit our and our subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to designate subsidiaries as unrestricted, to make certain investments, to prepay certain indebtedness and to pay dividends, or to make other distributions or redemptions/repurchases, in respect of our and our subsidiaries’ equity interests. In addition, the Credit Agreement contains financial covenants, each tested quarterly, (1) a net secured leveraged ratio of not greater than 3.25 to 1.00; (2) a net total leverage ratio of not greater than 4.25 to 1.00; and (3) minimum liquidity of at least $75 million. The Credit Agreement also contains events of default customary for financings of this type, including certain customary change of control events. As of December 31, 2020, we were in compliance with all Credit Agreement covenants.

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Dec. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, as well as those of our wholly owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. The condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three months ended December 31, 2020 are not necessarily indicative of the results to be expected for any other interim period or for the year ending September 30, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated and combined financial statements and notes contained in our Annual Report on Form 10-K for the year ended September 30, 2020.
Use of Estimates	Use of Estimates The financial statements are prepared in accordance with GAAP, which requires management to make estimates and assumptions. These estimates, judgments and assumptions can affect the reported amounts in the financial statements and the footnotes thereto. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, assumptions and judgments. Significant estimates inherent to the preparation of financial statements include: revenue recognition; allowance for credit losses; accounting for deferred costs; accounting for internally developed software; the valuation of goodwill and intangible assets; accounting for business combinations; accounting for stock-based compensation; accounting for income taxes; accounting for leases; accounting for convertible debt; and loss contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual amounts could differ significantly from these estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, including money-market funds with original maturities of 90 days or less. As of December 31, 2020, the estimated fair value of our money-market funds was $82.9 million. We estimated the fair value of our money-market funds from quoted prices for identical assets in active markets on the last trading day of the reporting period (Level 1).
Concentration of Risk	Concentration of Risk Financial instruments that potentially subject us to significant concentrations of credit risk primarily consist of trade accounts receivable. We perform ongoing credit evaluations of our customers’ financial condition and limit the amount of credit extended when deemed appropriate. Two customers accounted for 15.1% and 12.9% of our accounts receivable, net balance at December 31, 2020. Two customers accounted for 15.0% and 11.1% of our accounts receivable, net balance at September 30, 2020.
Derivative Financial Instruments	Derivative Financial Instruments We use derivative instruments, including forward contracts, to help manage foreign currency exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. Derivatives that qualify for hedge accounting can be designated as either cash flow hedges, net investment hedges, or fair value hedges. We may enter into derivative contracts that economically hedge certain risks, even when hedge accounting does not apply, or we elect not to apply hedge accounting. Derivatives are recognized in the Condensed Consolidated Balance Sheet at fair value on a gross basis as either assets or liabilities and classified as current or noncurrent based upon whether the maturity of the instrument is less than or greater than 12 months. Changes in the fair value of derivatives not designated as hedges are reported in earnings primarily in other income (expense), net. The cash flows associated with derivatives not designated as hedges are reported in cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. This standard is effective for interim and annual reporting periods beginning after December 15, 2019. This standard is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to Accumulated deficit as of the beginning of the first reporting period in which the guidance of this standard is effective. We adopted ASU 2016-13 using the modified retrospective approach as of October 1, 2020. The effects of applying ASU 2016-13 as a cumulative-effect adjustment to Retained earnings was immaterial.
Recently Issued Accounting Pronouncements to be Adopted	Recently Issued Accounting Pronouncements to be Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for debt with conversion options, revises the criteria for applying the derivatives scope exception for contracts in an entity’s own equity, and improves the consistency for the calculation of earnings per share. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2021, our fiscal year 2023. Early adoption is permitted for annual periods and interim periods within those annual periods beginning after December 15, 2020, our fiscal year 2022. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements.

Revenue Recognition (Tables)

3 Months Ended

Dec. 31, 2020

Revenue From Contract With Customer [Abstract]

Summary of Revenues Classified by Major Geographic Region

Revenues, classified by the major geographic region in which our customers are located, for the three months ended December 31, 2020 and 2019 (dollars in thousands):

	Three Months Ended December 31,
	2020		2019
Revenues:
United States	$	33,051	$	35,041
Other Americas		43		8
Germany		32,044		20,217
Other Europe, Middle East and Africa		3,469		4,597
Japan		12,673		11,411
Other Asia-Pacific		13,684		6,185
Total net revenues	$	94,964	$	77,459

Summary of Significant Changes in Contract Assets and Deferred Revenue

The table below shows significant changes in contract assets (dollars in thousands):

	Contract assets
Balance as of October 1, 2020	$	30,277
Revenues recognized but not billed		17,535
Amounts reclassified to accounts receivable, net		(12,997	)
Balance as of December 31, 2020	$	34,815
Less: allowance for credit losses		(387	)
Balance as of December 31, 2020, net	$	34,428

The table below shows significant changes in deferred revenue (dollars in thousands):

	Deferred revenue
Balance as of October 1, 2020	$	325,093
Amounts billed but not recognized		28,877
Revenue recognized		(33,701	)
Balance as of December 31, 2020	$	320,269

Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied

Within One

Year

Two to Five

Years

Greater

than

Five Years

Total

Total revenue

156,563

189,291

31,243

377,097

Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic Shares to Diluted Shares

The following table presents the reconciliation of the numerator and denominator for calculating net income (loss) per share:

	Three Months Ended December 31,
in thousands, except per share data	2020		2019
Numerator:
Net income (loss) - basic	$	21,638	$	(11,762	)
Interest on Convertible Senior Notes, net of tax		1,831		-
Net income (loss) - diluted	$	23,469	$	(11,762	)

Denominator:
Weighted average common shares outstanding - basic		37,180		35,995
Dilutive effect of restricted stock awards		1,506		-
Dilutive effect of the Notes		4,677		-
Weighted average common shares outstanding - diluted		43,363		35,995

Net income (loss) per common share:
Basic	$	0.58	$	(0.33	)
Diluted	$	0.54	$	(0.33	)

Schedule of Potential Shares Considered Antidilutive

The following table set forth potential shares that were considered anti-dilutive during the three months ended December 31, 2020 and at December 31, 2019:

	December 31,		December 31,
in thousands	2020		2019
Restricted stock unit awards		-		1,923

Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs

The following table presents information about our financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (dollars in thousands) as of:

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market funds	$	82,891	$	-	$	-	$	82,891
Marketable securities:
Commercial paper, $14,384 at cost	$	-	$	14,384	$	-	$	14,384
Corporate bonds, $3,637 at cost		-		3,637		-		3,637
Total assets	$	82,891	$	18,021	$	-	$	100,912

	September 30, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market funds	$	101,437	$	-	$	-	$	101,437
Marketable securities:
Commercial paper, $9,883 at cost	$	-	$	9,883	$	-	$	9,883
Corporate bonds, $1,780 at cost		-		1,779		-		1,779
Total assets	$	101,437	$	11,662	$	-	$	113,099

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Derivative Financial Instruments (Tables)

3 Months Ended

Dec. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Fair Value and Presentation in Condensed Consolidated Balance Sheet for Derivative Instruments

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments as of December 31, 2020 and 2019 (dollars in thousands):

		Fair Value
Derivatives not designated as hedges	Classification	December 31, 2020		September 30, 2020
Foreign currency forward contracts	Prepaid expenses and other current assets	$	496	$	-
Foreign currency forward contracts	Other assets		296		-
Foreign currency forward contracts	Accrued expenses and other current liabilities		279		-
Foreign currency forward contracts	Other liabilities	$	182	$	-

Summary of Income (Loss) Related to Foreign Currency Forward Contracts

The following tables display a summary of the income (loss) related to foreign currency forward contracts for the three months ended December 31, 2020 and 2019 (dollars in thousand):

		Gain recognized in earnings
		Three Months Ended
Derivatives not designated as hedges	Classification	December 31, 2020		December 31, 2019
Foreign currency forward contracts	Other income (expense), net	$	386	$	-

Credit Losses (Tables)

3 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Summary of Change in Allowance for Credit Losses

The change in the allowance for credit losses for the three months ended December 31, 2020 is as follows (dollars in thousands):

	Allowance for Credit Losses
Balance as of September 30, 2020	$	(1,394	)
Current period recovery for expected credit losses		483
Write-offs charged against the allowance for expected credit losses		(73	)
Foreign exchange impact on ending balance		18
Balance as of December 31, 2020	$	(966	)

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the three months ended December 31, 2020 are as follows (dollars in thousands):

	Total
Balance as of October 1, 2020	$	1,128,198
Effect of foreign currency translation		8,158
Balance as of December 31, 2020	$	1,136,356

Summary of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets by Major Class

The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands):

	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	112,430	$	(80,499	)	$	31,931		2.8
Technology and patents		91,408		(82,269	)		9,139		1.4
Total	$	203,838	$	(162,768	)	$	41,070

	September 30, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	110,512	$	(75,915	)	$	34,597		3.0
Technology and patents		90,658		(79,639	)		11,019		1.6
Total	$	201,170	$	(155,554	)	$	45,616

Leases (Tables)

3 Months Ended

Dec. 31, 2020

Leases [Abstract]

Summary of Lease Term and Incremental Borrowing Rates for Leases

The following table presents certain information related to lease term and incremental borrowing rates for leases as of December 31, 2020 and September 30, 2020:

	December 31, 2020			September 30, 2020
Weighted-average remaining lease term (in months):
Operating leases		51.8			55.9
Finance leases		52.7			55.8
Weighted-average discount rate:
Operating leases		7.2	%		7.4	%
Finance leases		4.4	%		4.4	%

Summary of Lease Expense

The following table presents lease expense for the three months ended December 31, 2020 and 2019 (dollars in thousands):

	Three months ended December 31, 2020			Three months ended December 31, 2019
Finance lease costs:
Amortization of right of use asset	$	141		$	36
Interest on lease liability		15			-
Operating lease cost		2,229			1,890
Variable lease cost		20			309
Sublease income		(53	)		(55	)
Total lease cost	$	2,352		$	2,180

Summary of Undiscounted Future Minimum Lease Payments Under Non-cancelable Leases

Year Ending September 30,	Operating Leases			Financing Leases			Total
2021 (excluding three months ended December 31, 2020)	$	5,850		$	339		$	6,189
2022		6,811			416			7,227
2023		4,746			416			5,162
2024		4,218			365			4,583
2025		2,319			310			2,629
Thereafter		2,999			15			3,014
Total future minimum lease payments	$	26,943		$	1,861		$	28,804
Less effects of discounting		(3,861	)		(163	)		(4,024	)
Total lease liabilities	$	23,082		$	1,698		$	24,780
Reported as of December 31, 2020
Short-term lease liabilities	$	6,259		$	370		$	6,629
Long-term lease liabilities		16,823			1,328			18,151
Total lease liabilities	$	23,082		$	1,698		$	24,780

Accrued Expenses and Other Liabilities (Tables)

3 Months Ended

Dec. 31, 2020

Accrued Liabilities And Other Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (dollars in thousands):

	December 31, 2020		September 30, 2020
Compensation	$	22,065	$	37,960
Cost of revenue related liabilities		4,011		3,683
Sales and other taxes payable		18,031		14,688
Professional fees		3,223		2,458
Interest Payable		1,444		2,703
Other		3,426		6,365
Total	$	52,200	$	67,857

Restructuring and Other Costs, Net (Tables)

3 Months Ended

Dec. 31, 2020

Restructuring And Related Activities [Abstract]

Schedule of Accrual Activity Relating to Restructuring Reserves

The following table sets forth accrual activity relating to restructuring reserves for the three months ended December 31, 2020 (dollars in thousands):

	Personnel			Facilities			Restructuring Subtotal			Other		Total
Balance at October 1, 2020	$	764		$	1,745		$	2,509		$	1,928	$	4,437
Restructuring and other costs, net		336			(315	)		21			26		47
Non-cash adjustments		—			1,074			1,074			—		1,074
Cash (payments) receipts		(264	)		(128	)		(392	)		567		175
Foreign exchange impact on ending balance		6			1			7			—		7
Balance at December 31, 2020	$	842		$	2,377		$	3,219		$	2,521	$	5,740

Schedule of Restructuring and Other Costs, Net

The following table sets forth restructuring and other costs, net recognized for the three months ended December 31, 2020 and 2019 (dollars in thousands):

	Three Months Ended December 31,
	2020			2019
Personnel	$	336		$	360
Facilities		(315	)		—
Restructuring subtotal		21			360
Other		26			7,194
Restructuring and other costs, net	$	47		$	7,554

Stockholder's Equity (Tables)

3 Months Ended

Dec. 31, 2020

Equity [Abstract]

Schedule of Non-vested Restricted Stock Units

Information with respect to our non-vested restricted stock units for the three months ended December 31, 2020 was as follows:

	Non-Vested Restricted Stock Units
	Time-Based Shares			Performance- Based Shares			Total Shares			Weighted- Average Grant-Date Fair Value		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Non-vested at October 1, 2020		2,042,918			771,387			2,814,305		$	18.63
Granted		635,810			289,380			925,190		$	56.97
Vested		(872,310	)		(403,502	)		(1,275,812	)	$	39.16
Forfeited		(6,754	)		(1,596	)		(8,350	)	$	35.94
Non-vested at December 31, 2020		1,799,664			655,669			2,455,333		$	36.79		1.40	$	246,896
Expected to vest								2,455,333		$	36.79		1.40	$	246,896

Schedule of Stock-based Compensation

Stock-based compensation was included in the following captions in our Condensed Consolidated Statements of Operations for the three months ended December 31, 2020 and 2019 (in thousands):

	Three Months Ended December 31,
	2020		2019
Cost of connected services	$	291	$	352
Cost of professional services		1,294		871
Research and development		4,098		2,975
Sales and marketing		2,529		1,590
General and administrative		4,139		3,181
	$	12,351	$	8,969

Income Taxes (Tables)

3 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are as follows (dollars in thousands):

	Three Months Ended December 31,
	2020		2019
Domestic	$	5,245	$	(7,128	)
Foreign		9,009		(1,632	)
Income (loss) before income taxes	$	14,254	$	(8,760	)

Components of (Benefit from) Provision for Income Taxes

The components of (benefit from) provision for income taxes are as follows (dollars in thousands):

	Three Months Ended December 31,
	2020			2019
Domestic	$	1,020		$	(3,218	)
Foreign		(8,404	)		6,220
(Benefit from) provision for income taxes	$	(7,384	)	$	3,002
Effective income tax rate		(51.8	)%		(34.3	)%

Long-Term Debt (Tables)

3 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt consisted of the following (in thousands):

	December 31, 2020			September 30, 2020
3.00% Convertible Senior Notes due 2025, net of unamortized discount of $17,678 and deferred issuance costs of $4,445 at December 31, 2020. Effective interest rate 6.29%.	$	152,877		$	151,791
Senior Credit Facilities, net of unamortized discount of $2,216 and deferred issuance costs of $268 at December 31, 2020. Effective interest rate 3.39%.		119,392			121,331
Total debt	$	272,269		$	273,122
Less: current portion		(6,250	)		(6,250	)
Total long-term debt	$	266,019		$	266,872

Summary of Maturities of Borrowing Obligations

The following table summarizes the maturities of our borrowing obligations as of December 31, 2020 (in thousands):

Fiscal Year	Convertible Senior Notes			Senior Facilities			Total
2021	$	—		$	4,688		$	4,688
2022		—			6,250			6,250
2023		—			10,938			10,938
2024		—			12,500			12,500
2025		175,000			87,500			262,500
Thereafter		—			—			—
Total before unamortized discount and issuance costs and current portion	$	175,000		$	121,876		$	296,876
Less: unamortized discount and issuance costs		(22,123	)		(2,484	)		(24,607	)
Less: current portion of long-term debt		—			(6,250	)		(6,250	)
Total long-term debt	$	152,877		$	113,142		$	266,019

Schedule of Interest Expense Related to Notes

The interest expense recognized related to the Notes for the three months ended December 31, 2020 was as follows (dollars in thousands):

	Three Months Ended December 31, 2020
Contractual interest expense	$	1,322
Amortization of debt discount		868
Amortization of issuance costs		218
Total interest expense related to the Notes	$	2,408

Business Overview - Additional Information (Details)		3 Months Ended
Business Overview - Additional Information (Details)	Oct. 01, 2019	Dec. 31, 2020
Business Overview [Line Items]
Entity incorporation state country code		DE
Entity incorporation, date of incorporation		Oct. 01, 2019
Nuance Communications \| Spin-Off
Business Overview [Line Items]
Distribution date	Oct. 01, 2019
Conversion ratio, description		The distribution was made in the amount of one share of our common stock for every eight shares of Nuance common stock (which we refer to as the “Distribution”) owned by Nuance’s stockholders as of 5:00 p.m. Eastern Time on September 17, 2019, the record date of the Distribution.
Conversion ratio	0.125

Significant Accounting Policies - Additional Information (Details) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2020 USD ($) Customer	Sep. 30, 2020 Customer
ASU 2016-13
Significant Accounting Policies [Line Items]
Change In Accounting Principle Accounting Standards Update Adopted	true
Change In Accounting Principle Accounting Standards Update Adoption Date	Oct. 01, 2020
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect	true
Concentration of Credit Risk \| Accounts Receivable, Net
Significant Accounting Policies [Line Items]
Number of major customers \| Customer	2	2
Concentration of Credit Risk \| Accounts Receivable, Net \| Customer One
Significant Accounting Policies [Line Items]
Concentration risk, percentage	15.10%	15.00%
Concentration of Credit Risk \| Accounts Receivable, Net \| Customer Two
Significant Accounting Policies [Line Items]
Concentration risk, percentage	12.90%	11.10%
Money-Market Funds \| Level 1
Significant Accounting Policies [Line Items]
Estimated fair value of cash and cash equivalents \| $	$ 82.9

Revenue Recognition - Additional Information (Details)	3 Months Ended
Revenue Recognition - Additional Information (Details)	Dec. 31, 2020 USD ($) Customer	Dec. 31, 2019 USD ($) Customer
Disaggregation Of Revenue [Line Items]
Revenues	$ 94,964,000	$ 77,459,000
Contract acquisition costs	5,900,000
Contract acquisition cost, amortization	400,000	200,000
Contract acquisition cost, impairment	0
Capitalized contract cost, net	44,700,000
Capitalized contract cost, amortization	4,300,000	2,700,000
Capitalized contract cost, impairment	0
Customer One
Disaggregation Of Revenue [Line Items]
Revenues	17,900,000	18,000,000.0
United States
Disaggregation Of Revenue [Line Items]
Revenues	33,051,000	35,041,000
Germany
Disaggregation Of Revenue [Line Items]
Revenues	32,044,000	20,217,000
Japan
Disaggregation Of Revenue [Line Items]
Revenues	$ 12,673,000	$ 11,411,000
Revenues \| Customer Concentration Risk
Disaggregation Of Revenue [Line Items]
Number of customers accounted for revenues \| Customer	1	1
Revenues \| Customer Concentration Risk \| Customer One
Disaggregation Of Revenue [Line Items]
Percentage of revenue	18.90%	23.20%
Minimum
Disaggregation Of Revenue [Line Items]
Connected services contract term	1 year
Contract acquisition cost, deferred and amortized over benefit period	1 year
Contract term	1 year
Minimum \| Revenues \| United States \| Geographic Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of revenue	10.00%	10.00%
Minimum \| Revenues \| Germany \| Geographic Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of revenue	10.00%	10.00%
Minimum \| Revenues \| Japan \| Geographic Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of revenue	10.00%	10.00%
Maximum
Disaggregation Of Revenue [Line Items]
Connected services contract term	5 years
Contract acquisition costs, expected benefit period	1 year
Contract acquisition cost, deferred and amortized over benefit period	8 years
Contract term	8 years

Revenue Recognition - Summary of Revenues Classified by Major Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Total net revenues	$ 94,964	$ 77,459
United States
Revenues:
Total net revenues	33,051	35,041
Other Americas
Revenues:
Total net revenues	43	8
Germany
Revenues:
Total net revenues	32,044	20,217
Other Europe, Middle East and Africa
Revenues:
Total net revenues	3,469	4,597
Japan
Revenues:
Total net revenues	12,673	11,411
Other Asia-Pacific
Revenues:
Total net revenues	$ 13,684	$ 6,185

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Publisher FASB
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-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Revenue Recognition - Summary of Significant Changes in Contract Assets (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020 USD ($)
Revenue From Contract With Customer [Abstract]
Balance	$ 30,277
Revenues recognized but not billed	17,535
Amounts reclassified to accounts receivable, net	(12,997)
Balance	34,815
Less: allowance for credit losses	(387)
Balance	$ 34,428

Revenue Recognition - Summary of Significant Changes in Deferred Revenue (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020 USD ($)
Revenue From Contract With Customer [Abstract]
Balance	$ 325,093
Amounts billed but not recognized	28,877
Revenue recognized	(33,701)
Balance	$ 320,269

Revenue Recognition - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Remaining Performance Obligations
Total revenue	$ 377,097
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Remaining Performance Obligations
Total revenue	$ 156,563
Remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Remaining Performance Obligations
Total revenue	$ 189,291
Remaining performance obligation, expected timing of satisfaction, period	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01
Remaining Performance Obligations
Total revenue	$ 31,243
Remaining performance obligation, expected timing of satisfaction, period

Revenue Recognition - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details 1) $ in Thousands	Dec. 31, 2020 USD ($)
Revenue Performance Obligation [Abstract]
Total revenue	$ 377,097

Earnings Per Share - Additional Information (Details) - 3.00% Convertible Senior Notes Due 2025	3 Months Ended
	Dec. 31, 2020 USD ($)
Earnings Per Share [Line Items]
Debt instrument conversion ratio	26.7271
Conversion of notes to common stock per principal amount	$ 1,000

Earnings Per Share - Schedule of Reconciliation of Basic Shares to Diluted Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income (loss) - basic	$ 21,638	$ (11,762)
Interest on Convertible Senior Notes, net of tax	1,831
Net income (loss) - diluted	$ 23,469	$ (11,762)
Weighted average common shares outstanding - basic	37,180	35,995
Dilutive effect of restricted stock awards	1,506
Dilutive effect of the Notes	4,677
Weighted average common shares outstanding - diluted	43,363	35,995
Net income (loss) per common share:
Basic	$ 0.58	$ (0.33)
Diluted	$ 0.54	$ (0.33)

Earnings Per Share - Schedule of Potential Shares Considered Antidilutive (Details) shares in Thousands	3 Months Ended
	Dec. 31, 2019 shares
Restricted Stock Unit Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares	1,923

Fair Value Measurements - Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs (Details) - USD ($)	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Assets:
Marketable securities			$ 0
Total assets	$ 100,912,000	$ 113,099,000
Level 1
Assets:
Total assets	82,891,000	101,437,000
Level 2
Assets:
Total assets	18,021,000	11,662,000
Money Market Funds
Assets:
Cash and cash equivalents	82,891,000	101,437,000
Money Market Funds \| Level 1
Assets:
Cash and cash equivalents	82,891,000	101,437,000
Commercial Paper
Assets:
Marketable securities	14,384,000	9,883,000
Commercial Paper \| Level 2
Assets:
Marketable securities	14,384,000	9,883,000
Corporate Bonds
Assets:
Marketable securities	3,637,000	1,779,000
Corporate Bonds \| Level 2
Assets:
Marketable securities	$ 3,637,000	$ 1,779,000

Fair Value Measurements - Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs (Parenthetical) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	$ 14,384	$ 9,883
Corporate Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	$ 3,637	$ 1,780

Fair Value Measurements - Additional Information (Details) - USD ($)	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities			$ 0
Estimated Fair Value \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of notes	$ 501,800,000	$ 271,000,000.0

Derivative Financial Instruments - Additional Information (Details) - Foreign Exchange Forward Contracts - Not Designated $ in Millions	3 Months Ended
	Dec. 31, 2020 USD ($)
Derivative [Line Items]
Derivative, notional amount	$ 55.3
Derivative, weighted-average remaining maturity	11 months 21 days
Maximum
Derivative [Line Items]
Derivative, contract maturity	3 years

Derivative Financial Instruments - Summary of Fair Value and Presentation in Condensed Consolidated Balance Sheet for Derivative Instruments (Details) - Foreign Currency Forward Contracts - Not Designated $ in Thousands	Dec. 31, 2020 USD ($)
Prepaid Expenses and Other Current Assets
Derivatives Fair Value [Line Items]
Derivative instrument assets at fair value	$ 496
Other Assets
Derivatives Fair Value [Line Items]
Derivative instrument assets at fair value	296
Accrued Expenses and Other Current Liabilities
Derivatives Fair Value [Line Items]
Derivative instrument liabilities at fair value	279
Other Liabilities
Derivatives Fair Value [Line Items]
Derivative instrument liabilities at fair value	$ 182

Derivative Financial Instruments - Summary of Income (Loss) Related to Foreign Forward Currency Contracts (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020 USD ($)
Foreign Exchange Forward Contracts \| Not Designated
Derivative Instruments Gain Loss [Line Items]
Gain recognized in earnings	$ 386

Credit Losses - Summary of Change in Allowance for Credit Losses (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020 USD ($)
Receivables [Abstract]
Beginning balance	$ (1,394)
Current period recovery for expected credit losses	483
Write-offs charged against the allowance for expected credit losses	(73)
Foreign exchange impact on ending balance	18
Ending balance	$ (966)

Goodwill and Other Intangible Assets - Goodwill - Additional Information (Details)	3 Months Ended
	Dec. 31, 2020 USD ($) Segment
Goodwill And Intangible Assets Disclosure [Abstract]
Number of reportable segments	1
Number of Operating Segment	1
Goodwill impairment \| $	$ 0

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Balance as of October 1, 2020	$ 1,128,198
Effect of foreign currency translation	8,158
Balance as of December 31, 2020	$ 1,136,356

Goodwill and Other Intangible Assets - Intangible Assets, Net - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment of long-lived asset	$ 0
Amortization expense related to intangible assets	5,000,000.0	$ 5,200,000
Expected amortization of intangible assets for remainder of 2021	$ 15,200,000

Goodwill and Other Intangible Assets - Summary of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets by Major Class (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 203,838	$ 201,170
Accumulated Amortization	(162,768)	(155,554)
Net Carrying Amount	41,070	45,616
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	112,430	110,512
Accumulated Amortization	(80,499)	(75,915)
Net Carrying Amount	$ 31,931	$ 34,597
Weighted Average Remaining Life (Years)	2 years 9 months 18 days	3 years
Technology and Patents
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 91,408	$ 90,658
Accumulated Amortization	(82,269)	(79,639)
Net Carrying Amount	$ 9,139	$ 11,019
Weighted Average Remaining Life (Years)	1 year 4 months 24 days	1 year 7 months 6 days

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend	true
Operating lease, option to extend	Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Operating lease, existence of option to terminate	true
Operating lease, option to terminate	Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Cash payments related to operating leases	$ 2,300	$ 1,700
Cash payments related to financing leases	$ 101	$ 55
Minimum
Lessee Lease Description [Line Items]
Operating lease remaining term	1 year
Maximum
Lessee Lease Description [Line Items]
Operating lease remaining term	7 years

Leases - Summary of Lease Term and Incremental Borrowing Rates for Leases (Details)	Dec. 31, 2020	Sep. 30, 2020
Weighted-average remaining lease term (in months):
Operating leases	51 months 24 days	55 months 27 days
Finance leases	52 months 21 days	55 months 24 days
Weighted-average discount rate:
Operating leases	7.20%	7.40%
Finance leases	4.40%	4.40%

Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Finance lease costs:
Amortization of right of use asset	$ 141	$ 36
Interest on lease liability	15
Operating lease cost	2,229	1,890
Variable lease cost	20	309
Sublease income	(53)	(55)
Total lease cost	$ 2,352	$ 2,180

Leases - Summary of Undiscounted Future Minimum Lease Payments Under Non-cancelable Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Operating Leases
2021 (excluding three months ended December 31, 2020)	$ 5,850
2022	6,811
2023	4,746
2024	4,218
2025	2,319
Thereafter	2,999
Total future minimum lease payments	26,943
Less effects of discounting	(3,861)
Total lease liabilities	23,082
Short-term lease liabilities	6,259	$ 5,700
Long-term lease liabilities	16,823	$ 17,821
Financing Leases
2021 (excluding three months ended December 31, 2020)	339
2022	416
2023	416
2024	365
2025	310
Thereafter	15
Total future minimum lease payments	1,861
Less effects of discounting	(163)
Total lease liabilities	1,698
Short-term lease liabilities	370
Long-term lease liabilities	1,328
Total
2021 (excluding three months ended December 31, 2020)	6,189
2022	7,227
2023	5,162
2024	4,583
2025	2,629
Thereafter	3,014
Total future minimum lease payments	28,804
Less effects of discounting	(4,024)
Total lease liabilities	24,780
Short-term lease liabilities	6,629
Long-term lease liabilities	$ 18,151

Accrued Expenses and Other Liabilities -Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Accrued Liabilities And Other Liabilities [Abstract]
Compensation	$ 22,065	$ 37,960
Cost of revenue related liabilities	4,011	3,683
Sales and other taxes payable	18,031	14,688
Professional fees	3,223	2,458
Interest Payable	1,444	2,703
Other	3,426	6,365
Total	$ 52,200	$ 67,857

Restructuring and Other Costs, Net - Schedule of Accrual Activity Relating to Restructuring Reserves (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restructuring Cost And Reserve [Line Items]
Balance at October 1, 2020	$ 4,437
Restructuring and other costs, net	47	$ 7,554
Non-cash adjustments	1,074
Cash (payments) receipts	175
Foreign exchange impact on ending balance	7
Balance at December 31, 2020	5,740
Personnel
Restructuring Cost And Reserve [Line Items]
Balance at October 1, 2020	764
Restructuring and other costs, net	336	360
Cash (payments) receipts	(264)
Foreign exchange impact on ending balance	6
Balance at December 31, 2020	842
Facilities
Restructuring Cost And Reserve [Line Items]
Balance at October 1, 2020	1,745
Restructuring and other costs, net	(315)
Non-cash adjustments	1,074
Cash (payments) receipts	(128)
Foreign exchange impact on ending balance	1
Balance at December 31, 2020	2,377
Restructuring Subtotal
Restructuring Cost And Reserve [Line Items]
Balance at October 1, 2020	2,509
Restructuring and other costs, net	21	360
Non-cash adjustments	1,074
Cash (payments) receipts	(392)
Foreign exchange impact on ending balance	7
Balance at December 31, 2020	3,219
Other
Restructuring Cost And Reserve [Line Items]
Balance at October 1, 2020	1,928
Restructuring and other costs, net	26	$ 7,194
Cash (payments) receipts	567
Balance at December 31, 2020	$ 2,521

Restructuring and Other Costs, Net - Schedule of Restructuring and Other Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 47	$ 7,554
Personnel
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	336	360
Facilities
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	(315)
Restructuring Subtotal
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	21	360
Other
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 26	$ 7,194

Restructuring and Other Costs, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restructuring Cost And Reserve [Line Items]
Restructuring charges (reversal)	$ 47	$ 7,554
Severance Charge
Restructuring Cost And Reserve [Line Items]
Restructuring charges (reversal)	336	360
Facilities Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring charges (reversal)	$ (315)
Professional Services Fees
Restructuring Cost And Reserve [Line Items]
Restructuring charges (reversal)		$ 7,200

Stockholder's Equity - Additional Information (Details) - $ / shares	3 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Oct. 02, 2019	Oct. 01, 2019
Class Of Stock [Line Items]
Capital stock, shares authorized				600,000,000
Preferred stock, shares authorized				40,000,000
Preferred stock, par value per share				$ 0.01
Common stock, shares authorized	560,000,000	560,000,000		560,000,000
Common stock, par value per share	$ 0.01	$ 0.01		$ 0.01
Common stock reserved for issuance			6,350,000
2019 Equity Incentive Plan
Class Of Stock [Line Items]
Common stock reserved for issuance			5,300,000
Share-based compensation arrangement by share-based payment award, terms of award	Awards issued under the Plan may not have a term greater than ten years from the date of grant.
2019 Equity Incentive Plan \| Maximum
Class Of Stock [Line Items]
Share-based compensation arrangement by share-based payment award, expected term	10 years
2019 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock reserved for issuance			1,050,000

Stockholder's Equity - Schedule of Non-vested Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Time-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	2,042,918
Non-vested, Shares, Granted	635,810
Non-vested, Shares, Vested	(872,310)
Non-vested, Shares, Forfeited	(6,754)
Non-vested, Shares, Ending balance	1,799,664
Performance-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	771,387
Non-vested, Shares, Granted	289,380
Non-vested, Shares, Vested	(403,502)
Non-vested, Shares, Forfeited	(1,596)
Non-vested, Shares, Ending balance	655,669
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	2,814,305
Non-vested, Shares, Granted	925,190
Non-vested, Shares, Vested	(1,275,812)
Non-vested, Shares, Forfeited	(8,350)
Non-vested, Shares, Ending balance	2,455,333
Non-vested, Shares, Expected to vest	2,455,333
Non-vested, Weighted-Average Grant-Date Fair Value, Beginning balance \| $ / shares	$ 18.63
Non-vested, Weighted-Average Grant-Date Fair Value, Granted \| $ / shares	56.97
Non-vested, Weighted-Average Grant-Date Fair Value, Vested \| $ / shares	39.16
Non-vested, Weighted-Average Grant-Date Fair Value, Forfeited \| $ / shares	35.94
Non-vested, Weighted-Average Grant-Date Fair Value, Ending balance \| $ / shares	36.79
Non-vested, Weighted-Average Grant-Date Fair Value, Expected to vest \| $ / shares	$ 36.79
Non-vested, Weighted-Average Remaining Contractual Term (years), Balance	1 year 4 months 24 days
Non-vested, Weighted-Average Remaining Contractual Term (years), Expected to vest	1 year 4 months 24 days
Non-vested, Aggregate Intrinsic Value, Balance \| $	$ 246,896
Non-vested, Aggregate Intrinsic Value, Expected to vest \| $	$ 246,896

Stockholder's Equity - Schedule of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 12,351	$ 8,969
Cost of Connected Services
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	291	352
Cost of Professional Services
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	1,294	871
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	4,098	2,975
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	2,529	1,590
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 4,139	$ 3,181

Commitments and Contingencies - Additional Information (Details) $ in Millions	3 Months Ended
	Dec. 31, 2020 USD ($)
Loss Contingencies [Line Items]
Indemnification period for former officers and members of the boards of directors	6 years
Bellevue, Washington Office Space
Loss Contingencies [Line Items]
Letter of credit as security deposit	$ 1.7
Other Facility
Loss Contingencies [Line Items]
Letter of credit as security deposit	$ 0.7

Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic	$ 5,245	$ (7,128)
Foreign	9,009	(1,632)
Income (loss) before income taxes	$ 14,254	$ (8,760)

Income Taxes - Components of (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic	$ 1,020	$ (3,218)
Foreign	(8,404)	6,220
(Benefit from) provision for income taxes	$ (7,384)	$ 3,002
Effective income tax rate	(51.80%)	(34.30%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Line Items]
U.S. federal statutory rates	21.00%	21.00%
Effective income tax rate	(51.80%)	(34.30%)
Income tax expense (benefit)	$ (7,384)	$ 3,002
Change in income tax expense (benefit)	10,400
Tax benefit related to stock-based compensation	2,600
Netherlands
Income Tax Disclosure [Line Items]
Income tax expense (benefit)	$ (15,800)	$ (5,000)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Debt Instrument [Line Items]
Total debt	$ 272,269	$ 273,122
Less: current portion	(6,250)	(6,250)
Total long-term debt	266,019	266,872
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Total debt	152,877	151,791
Total long-term debt	152,877
Senior Credit Facilities
Debt Instrument [Line Items]
Total debt	119,392	$ 121,331
Less: current portion	(6,250)
Total long-term debt	$ 113,142

Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2020	Jun. 02, 2020
Senior Credit Facilities
Debt Instrument [Line Items]
Debt Instrument, unamortized discount	$ 2,216
Debt instrument, deferred issuance costs	$ 268
Debt instrument, effective interest rate	3.39%
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Debt instrument, interest rate	3.00%	3.00%
Debt instrument, maturity year	2025
Debt Instrument, unamortized discount	$ 17,678
Debt instrument, deferred issuance costs	$ 4,445
Debt instrument, effective interest rate	6.29%

Long-Term Debt - Summary of Maturities of Borrowing Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020
Debt Instrument [Line Items]
2021	$ 4,688
2022	6,250
2023	10,938
2024	12,500
2025	262,500
Total before unamortized discount and issuance costs and current portion	296,876
Less: unamortized discount and issuance costs	(24,607)
Less: current portion of long-term debt	(6,250)	$ (6,250)
Total long-term debt	266,019	$ 266,872
Senior Facilities
Debt Instrument [Line Items]
2021	4,688
2022	6,250
2023	10,938
2024	12,500
2025	87,500
Total before unamortized discount and issuance costs and current portion	121,876
Less: unamortized discount and issuance costs	(2,484)
Less: current portion of long-term debt	(6,250)
Total long-term debt	113,142
Convertible Senior Notes
Debt Instrument [Line Items]
2025	175,000
Total before unamortized discount and issuance costs and current portion	175,000
Less: unamortized discount and issuance costs	(22,123)
Total long-term debt	$ 152,877

Long-Term Debt - Additional Information (Details)				3 Months Ended
Long-Term Debt - Additional Information (Details)	Dec. 17, 2020 USD ($)	Jun. 12, 2020 USD ($)	Jun. 02, 2020 USD ($) $ / shares shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of notes					$ 249,705,000
Senior Credit Facilities
Debt Instrument [Line Items]
Deferred debt issuance costs				$ 268,000
Minimum liquidity				$ 75,000,000
Debt instrument, covenant description				The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit our and our subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to designate subsidiaries as unrestricted, to make certain investments, to prepay certain indebtedness and to pay dividends, or to make other distributions or redemptions/repurchases, in respect of our and our subsidiaries’ equity interests. In addition, the Credit Agreement contains financial covenants, each tested quarterly, (1) a net secured leveraged ratio of not greater than 3.25 to 1.00; (2) a net total leverage ratio of not greater than 4.25 to 1.00; and (3) minimum liquidity of at least $75 million. The Credit Agreement also contains events of default customary for financings of this type, including certain customary change of control events. As of December 31, 2020, we were in compliance with all Credit Agreement covenants.
Senior Credit Facilities \| Maximum
Debt Instrument [Line Items]
Net leverage ratio				4.25
Net secured leverage ratio				3.25%
Amended Senior Credit Facilities
Debt Instrument [Line Items]
Deferred debt issuance costs	$ 500,000
Refinancing fee paid to third parties	$ 100,000
Debt Instrument, interest rate description				The Amendment, among other things, revised certain interest rates in the Credit Agreement. Following delivery of a compliance certificate for the first full fiscal quarter after the Amendment No. 1 Effective Date, the applicable margins for the revolving credit and term facilities is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the applicable margin is LIBOR plus 3.00% or ABR plus 2.00%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the applicable margin is LIBOR plus 2.75% or ABR plus 1.75%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the applicable margin is LIBOR plus 2.50% or ABR plus 1.50%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the applicable margin is LIBOR plus 2.25% or ABR plus 1.25%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the applicable margin is LIBOR plus 2.20% or ABR plus 1.00%. As a result of the Amendment, the applicable LIBOR floor was reduced from 0.50% to 0.00%. From the Amendment No. 1 Effective Date until the date on which the financial statements are delivered for the fiscal quarter ended December 31, 2020, the interest rate will be LIBOR plus 2.50% or ABR plus 1.50%.
Interest expense				$ 1,400,000
Description of unused line fee				In addition, the quarterly commitment fee required to be paid based on the unused portion of the revolving facility is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the unused line fee is 0.500%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the unused line fee is 0.450%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the unused line fee is 0.400%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the unused line fee is 0.350%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the unused line fee is 0.300%.
Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	0.00%	0.50%
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Aggregate principal amount			$ 175,000,000.0
Debt instrument, interest rate			3.00%	3.00%
Debt Instrument, option to purchase additional principal amount			$ 25,000,000.0
Proceeds from issuance of notes			$ 169,800,000
Debt instrument, maturity date			Jun. 01, 2025
Debt instrument, conversion initial rate \| shares			26.7271
Debt instrument, convertible principal amount			$ 1,000
Debt instrument, conversion price \| $ / shares			$ 37.42
Carrying amount of equity component, net of taxes and transaction costs				$ 14,400,000
Deferred debt issuance costs				4,445,000
Interest expense				$ 2,408,000
Four Year Senior Secured Term Loan Facility \| Senior Credit Facilities
Debt Instrument [Line Items]
Debt instrument term		4 years
Credit facility maximum borrowing capacity		$ 125,000,000.0
Net proceeds from issuance of credit facility		123,000,000.0
Four Year Senior Secured Term Loan Facility \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Debt instrument, frequency of periodic principal payments				quarterly
Debt instrument periodic payments equivalent percentage of annual amount on original principal amount during first two years	1.25%
Debt instrument periodic payments equivalent percentage of annual amount on original principal amount after two years	2.50%
Senior Secured First-lien Revolving Credit Facility \| Senior Credit Facilities
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity		$ 50,000,000.0
Outstanding amount under credit facility				$ 0
Net Leverage Ratio Greater Than 3.00 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio	3.00
Unused line fee percentage	50.00%
Net Leverage Ratio Greater Than 3.00 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	3.00%
Net Leverage Ratio Greater Than 3.00 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.00%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Unused line fee percentage	45.00%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities \| Maximum
Debt Instrument [Line Items]
Net leverage ratio	3.00
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities \| Minimum
Debt Instrument [Line Items]
Net leverage ratio	2.50
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.75%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.75%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Unused line fee percentage	40.00%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities \| Maximum
Debt Instrument [Line Items]
Net leverage ratio	2.50
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities \| Minimum
Debt Instrument [Line Items]
Net leverage ratio	2.00
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.50%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.50%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Unused line fee percentage	35.00%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities \| Maximum
Debt Instrument [Line Items]
Net leverage ratio	2.00
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities \| Minimum
Debt Instrument [Line Items]
Net leverage ratio	1.50
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.25%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.25%
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio	1.50
Unused line fee percentage	30.00%
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.20%
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.00%

Long-Term Debt - Schedule of Interest Expense Related to Notes (Details) - 3.00% Convertible Senior Notes Due 2025 $ in Thousands	3 Months Ended
	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Contractual interest expense	$ 1,322
Amortization of debt discount	868
Amortization of issuance costs	218
Total interest expense related to the Notes	$ 2,408