2019 Q4 Form 10-Q Financial Statement

#000139297219000147 Filed on October 24, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2018 Q3
Revenue $66.18M $64.15M $49.08M
YoY Change 25.78% 30.72% 17.02%
Cost Of Revenue $28.36M $26.38M $19.48M
YoY Change 45.73% 35.46% 9.88%
Gross Profit $37.81M $37.77M $29.60M
YoY Change 14.05% 27.6% 22.24%
Gross Profit Margin 57.14% 58.87% 60.31%
Selling, General & Admin $35.52M $33.15M $27.69M
YoY Change 24.11% 19.72% 1.42%
% of Gross Profit 93.93% 87.78% 93.56%
Research & Development $17.11M $16.88M $13.77M
YoY Change 21.0% 22.54% -1.94%
% of Gross Profit 45.25% 44.69% 46.53%
Depreciation & Amortization $3.610M $3.430M $3.170M
YoY Change 10.4% 8.2% 4.28%
% of Gross Profit 9.55% 9.08% 10.71%
Operating Expenses $52.64M $50.03M $41.47M
YoY Change 23.11% 20.66% 0.28%
Operating Profit -$15.07M -$12.51M -$11.87M
YoY Change 56.84% 5.44% -33.15%
Interest Expense -$2.420M -$3.720M -$4.270M
YoY Change -43.98% -12.88% 4.4%
% of Operating Profit
Other Income/Expense, Net $250.0K -$1.010M $521.0K
YoY Change -78.99% -293.86% 50.14%
Pretax Income -$17.24M -$17.24M -$15.61M
YoY Change 35.32% 10.43% -27.38%
Income Tax $60.00K $108.0K $200.0K
% Of Pretax Income
Net Earnings -$17.30M -$17.35M -$15.79M
YoY Change 35.58% 9.89% -25.63%
Net Earnings / Revenue -26.14% -27.04% -32.17%
Basic Earnings Per Share -$0.41 -$0.42 -$0.44
Diluted Earnings Per Share -$0.41 -$0.42 -$0.44
COMMON SHARES
Basic Shares Outstanding 42.08M shares 41.28M shares 35.68M shares
Diluted Shares Outstanding 41.28M shares 35.68M shares

Balance Sheet

Concept 2019 Q4 2019 Q3 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $306.1M $319.2M $281.9M
YoY Change 3.59% 13.23% 79.1%
Cash & Equivalents $306.1M $319.2M $281.9M
Short-Term Investments
Other Short-Term Assets $14.80M $14.20M $10.50M
YoY Change 66.29% 35.24% -13.22%
Inventory
Prepaid Expenses
Receivables $65.29M $56.00M $46.20M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $385.9M $389.3M $338.6M
YoY Change 11.5% 14.98% 65.88%
LONG-TERM ASSETS
Property, Plant & Equipment $14.79M $13.97M $14.86M
YoY Change 0.8% -5.94% 2.65%
Goodwill $49.10M $48.88M $38.37M
YoY Change 28.44% 27.38% 125.04%
Intangibles $14.61M $16.19M $21.23M
YoY Change -24.54% -23.73% -26.73%
Long-Term Investments
YoY Change
Other Assets $6.831M $6.650M $4.643M
YoY Change 31.62% 43.23% -31.26%
Total Long-Term Assets $127.4M $129.4M $90.58M
YoY Change 40.23% 42.87% 2.34%
TOTAL ASSETS
Total Short-Term Assets $385.9M $389.3M $338.6M
Total Long-Term Assets $127.4M $129.4M $90.58M
Total Assets $513.3M $518.7M $429.2M
YoY Change 17.47% 20.87% 46.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $9.098M $7.003M $5.542M
YoY Change 31.21% 26.36% 31.86%
Accrued Expenses $22.75M $17.43M $6.313M
YoY Change 139.3% 176.14% -17.94%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $42.30M
YoY Change -100.0%
Total Short-Term Liabilities $196.1M $214.9M $128.7M
YoY Change -28.61% 66.9% 30.96%
LONG-TERM LIABILITIES
Long-Term Debt $110.7M $109.0M $222.1M
YoY Change 24.8% -50.92% 5.61%
Other Long-Term Liabilities $1.281M $1.032M $815.0K
YoY Change 69.89% 26.63% 7.8%
Total Long-Term Liabilities $1.281M $1.032M $815.0K
YoY Change 69.89% 26.63% 7.8%
TOTAL LIABILITIES
Total Short-Term Liabilities $196.1M $214.9M $128.7M
Total Long-Term Liabilities $1.281M $1.032M $815.0K
Total Liabilities $348.3M $362.8M $366.2M
YoY Change -8.84% -0.92% 11.62%
SHAREHOLDERS EQUITY
Retained Earnings -$361.8M -$344.5M -$279.9M
YoY Change 23.6% 23.05% 26.56%
Common Stock $47.00K $47.00K $42.00K
YoY Change 11.9% 11.9% 16.67%
Preferred Stock
YoY Change
Treasury Stock (at cost) $29.85M $13.94M $13.94M
YoY Change 114.14% 0.0% 0.0%
Treasury Stock Shares 4.681M shares 4.418M shares 4.418M shares
Shareholders Equity $165.0M $156.0M $63.01M
YoY Change
Total Liabilities & Shareholders Equity $513.3M $518.7M $429.2M
YoY Change 17.47% 20.87% 46.66%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2018 Q3
OPERATING ACTIVITIES
Net Income -$17.30M -$17.35M -$15.79M
YoY Change 35.58% 9.89% -25.63%
Depreciation, Depletion And Amortization $3.610M $3.430M $3.170M
YoY Change 10.4% 8.2% 4.28%
Cash From Operating Activities $12.86M $4.030M -$1.180M
YoY Change -15.34% -441.53% -86.18%
INVESTING ACTIVITIES
Capital Expenditures -$2.330M -$1.200M -$1.420M
YoY Change 108.04% -15.49% 8.4%
Acquisitions
YoY Change
Other Investing Activities -$110.0K -$10.62M $0.00
YoY Change 120.0% -100.0%
Cash From Investing Activities -$2.440M -$11.83M -$1.420M
YoY Change 108.55% 733.1% -95.17%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -23.82M -2.170M 142.6M
YoY Change 9061.54% -101.52% -6142.37%
NET CHANGE
Cash From Operating Activities 12.86M 4.030M -1.180M
Cash From Investing Activities -2.440M -11.83M -1.420M
Cash From Financing Activities -23.82M -2.170M 142.6M
Net Change In Cash -13.40M -9.970M 140.0M
YoY Change -197.38% -107.12% -447.22%
FREE CASH FLOW
Cash From Operating Activities $12.86M $4.030M -$1.180M
Capital Expenditures -$2.330M -$1.200M -$1.420M
Free Cash Flow $15.19M $5.230M $240.0K
YoY Change -6.87% 2079.17% -103.32%

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us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
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us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
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us-gaap Net Income Loss
NetIncomeLoss
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us-gaap Net Income Loss
NetIncomeLoss
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us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
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us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
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us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
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us-gaap Amortization Of Financing Costs And Discounts
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
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us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
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us-gaap Provision For Doubtful Accounts
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us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
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us-gaap Gain Loss On Disposition Of Assets1
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0 USD
us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
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us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-5000000 USD
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
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pro Accounts And Unbilled Receivables
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pro Accounts And Unbilled Receivables
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us-gaap Increase Decrease In Other Operating Assets
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us-gaap Increase Decrease In Other Operating Assets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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1884000 USD
us-gaap Increase Decrease In Accounts Payable
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us-gaap Increase Decrease In Accounts Payable
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us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Employee Related Liabilities
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us-gaap Increase Decrease In Employee Related Liabilities
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
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us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
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pro Internal Use Software Development Costs Capitalized
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pro Internal Use Software Development Costs Capitalized
InternalUseSoftwareDevelopmentCostsCapitalized
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
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us-gaap Payments To Acquire Other Investments
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us-gaap Payments To Acquire Other Investments
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us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
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us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
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us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Net Cash Provided By Used In Financing Activities
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46806000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
135609000 USD
us-gaap Proceeds From Stock Plans
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1995000 USD
us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
1720000 USD
pro Tax Withholding Related To Net Share Settlement Of Restricted Stock Units
TaxWithholdingRelatedToNetShareSettlementOfRestrictedStockUnits
21598000 USD
pro Tax Withholding Related To Net Share Settlement Of Restricted Stock Units
TaxWithholdingRelatedToNetShareSettlementOfRestrictedStockUnits
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
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us-gaap Repayments Of Notes Payable
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us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
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us-gaap Proceeds From Convertible Debt
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us-gaap Proceeds From Convertible Debt
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us-gaap Payments Of Debt Issuance Costs
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860000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
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pro Purchaseofcappedcall
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pro Purchaseofcappedcall
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us-gaap Payments Of Debt Extinguishment Costs
PaymentsOfDebtExtinguishmentCosts
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us-gaap Payments Of Debt Extinguishment Costs
PaymentsOfDebtExtinguishmentCosts
0 USD
pro Proceedsfrombondhedgetermination
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64819000 USD
pro Proceedsfrombondhedgetermination
Proceedsfrombondhedgetermination
0 USD
pro Paymentforwarranttermination
Paymentforwarranttermination
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pro Paymentforwarranttermination
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
-392000 USD
us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
352000 USD
us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
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us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
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CY2018Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
295476000 USD
CY2017Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2019Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2018Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
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us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
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CY2019Q2 us-gaap Stockholders Equity
StockholdersEquity
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CY2019Q3 us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
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CY2019Q3 us-gaap Proceeds From Stock Plans
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CY2019Q3 us-gaap Stock Issued During Period Value Conversion Of Convertible Securities
StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
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CY2019Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
6189000 USD
CY2019Q3 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2019Q3 us-gaap Net Income Loss
NetIncomeLoss
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CY2019Q3 us-gaap Stockholders Equity
StockholdersEquity
155952000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
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CY2018Q3 us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
-185000 USD
CY2018Q3 us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
886000 USD
CY2018Q3 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
59000 USD
CY2018Q3 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-88000 USD
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
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CY2018Q3 us-gaap Adjustments To Additional Paid In Capital Equity Component Of Convertible Debt
AdjustmentsToAdditionalPaidInCapitalEquityComponentOfConvertibleDebt
141954000 USD
CY2018Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
4949000 USD
CY2018Q3 pro Cumulativeeffectofadoptionofsection606
Cumulativeeffectofadoptionofsection606
-1000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
63011000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
54899000 USD
us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
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us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
1995000 USD
us-gaap Stock Issued During Period Value Conversion Of Convertible Securities
StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
118989000 USD
pro Adjustmenttoadditionalpaidincapitalterminationofbondhedgeandwarrant
Adjustmenttoadditionalpaidincapitalterminationofbondhedgeandwarrant
64819000 USD
pro Adjustmenttoadditionalpaidincapitalterminationofwarrant
Adjustmenttoadditionalpaidincapitalterminationofwarrant
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us-gaap Adjustments To Additional Paid In Capital Equity Component Of Convertible Debt
AdjustmentsToAdditionalPaidInCapitalEquityComponentOfConvertibleDebt
32883000 USD
pro Adjustmenttoadditionalpaidincapitalpurchaseofcappedcall
Adjustmenttoadditionalpaidincapitalpurchaseofcappedcall
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us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
18184000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-750000 USD
us-gaap Net Income Loss
NetIncomeLoss
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CY2019Q3 us-gaap Stockholders Equity
StockholdersEquity
155952000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
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us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1142000 USD
us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
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us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
1720000 USD
us-gaap Adjustments To Additional Paid In Capital Equity Component Of Convertible Debt
AdjustmentsToAdditionalPaidInCapitalEquityComponentOfConvertibleDebt
141954000 USD
us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
16440000 USD
pro Cumulativeeffectofadoptionofsection606
Cumulativeeffectofadoptionofsection606
9723000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-350000 USD
us-gaap Net Income Loss
NetIncomeLoss
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CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
63011000 USD
us-gaap Nature Of Operations
NatureOfOperations
Organization and Nature of Operations<div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">    </span></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">PROS Holdings, Inc., a Delaware corporation, through its operating subsidiaries (collectively, the "Company"), provides artificial intelligence ("AI") solutions that power commerce in the digital economy by providing fast, frictionless and personalized buying experiences. PROS solutions enable dynamic buying experiences for both business-to-business ("B2B") and business-to-consumer ("B2C") companies across industry verticals. Companies can use the Company's dynamic pricing optimization, sales effectiveness, revenue management and commerce solutions to assess their market environments in real time to deliver customized prices and offers. The Company's solutions enable buyers to move fluidly across its customers’ direct sales, online, mobile and partner channels with personalized experiences regardless of which channel those customers choose. The Company's decades of data science and AI expertise are infused into its solutions and are designed to reduce time and complexity through actionable intelligence. The Company provides standard configurations of its software based on the industries it serves and offers professional services to configure these solutions to meet the specific needs of each customer.</span></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of estimates</span></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company makes estimates and assumptions in the preparation of its unaudited condensed consolidated financial statements, and its estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The complexity and judgment required in the Company's estimation process, as well as issues related to the assumptions, risks and uncertainties inherent in determining the nature and timing of satisfaction of performance obligations and determining the standalone selling price of performance obligations, affect the amounts of revenue, expenses, unbilled receivables and deferred revenue. Estimates are also used for, but not limited to, receivables, allowance for doubtful accounts, operating lease right-of-use assets and operating lease liabilities, useful lives of assets, depreciation and amortization, income taxes and deferred tax asset valuation, valuation of stock options, other current liabilities and accrued liabilities. Numerous internal and external factors can affect estimates. The critical accounting policies related to estimates and judgments are discussed in the Annual Report under management's discussion and analysis of financial condition and results of operations and are also discussed under Item 2 </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">"Management's discussion and analysis of financial condition and results of operations</span><span style="font-family:inherit;font-size:10pt;">".</span></div>
CY2019Q3 us-gaap Capitalized Computer Software Amortization1
CapitalizedComputerSoftwareAmortization1
800000 USD
CY2018Q3 us-gaap Capitalized Computer Software Amortization1
CapitalizedComputerSoftwareAmortization1
300000 USD
us-gaap Capitalized Computer Software Amortization1
CapitalizedComputerSoftwareAmortization1
2000000.0 USD
us-gaap Capitalized Computer Software Amortization1
CapitalizedComputerSoftwareAmortization1
700000 USD
us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
0 USD
CY2019Q3 us-gaap Cost Method Investments Fair Value Disclosure
CostMethodInvestmentsFairValueDisclosure
2200000 USD
CY2018Q4 us-gaap Cost Method Investments Fair Value Disclosure
CostMethodInvestmentsFairValueDisclosure
2000000.0 USD
CY2019Q3 pro Treasury Money Market Funds At Fair Value
TreasuryMoneyMarketFundsAtFairValue
289800000 USD
CY2018Q4 pro Treasury Money Market Funds At Fair Value
TreasuryMoneyMarketFundsAtFairValue
268600000 USD
us-gaap Amortization Of Deferred Charges
AmortizationOfDeferredCharges
3500000 USD
us-gaap Amortization Of Deferred Charges
AmortizationOfDeferredCharges
2100000 USD
CY2019Q3 us-gaap Capitalized Contract Cost Net
CapitalizedContractCostNet
4800000 USD
us-gaap Revenue Recognition Customer Acquisitions
RevenueRecognitionCustomerAcquisitions
<div style="line-height:120%;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Deferred costs</span></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Sales commissions earned by the Company's sales representatives are considered incremental and recoverable costs of obtaining a customer contract. Sales commissions are deferred and amortized on a straight-line basis over the period of benefit, which the Company has determined to be five to eight years. The Company determined the period of benefit by taking into consideration its customer contracts, expected renewals of those customer contracts (as the Company currently does not pay an </span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">incremental sales commission), the Company's technology and other factors. The Company also defers amounts earned by employees other than sales representatives who earn incentive payments under compensation plans that are also tied to the value of customer contracts acquired. Deferred costs were </span><span style="font-family:inherit;font-size:10pt;"><span>$20.6 million</span></span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;"><span>$17.5 million</span></span><span style="font-family:inherit;font-size:10pt;"> as of </span><span style="font-family:inherit;font-size:10pt;">September 30, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">December 31, 2018</span><span style="font-family:inherit;font-size:10pt;">, respectively. Amortization expense for the deferred costs was </span><span style="font-family:inherit;font-size:10pt;"><span>$1.3 million</span></span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;"><span>$0.8 million</span></span><span style="font-family:inherit;font-size:10pt;"> for the three months ended </span><span style="font-family:inherit;font-size:10pt;">September 30, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">2018</span><span style="font-family:inherit;font-size:10pt;">, respectively, and </span><span style="font-family:inherit;font-size:10pt;"><span>$3.5 million</span></span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;"><span>$2.1 million</span></span><span style="font-family:inherit;font-size:10pt;"> for the </span><span style="font-family:inherit;font-size:10pt;">nine</span><span style="font-family:inherit;font-size:10pt;"> months ended </span><span style="font-family:inherit;font-size:10pt;">September 30, 2019</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;">2018</span><span style="font-family:inherit;font-size:10pt;">, respectively.</span></div>
CY2019Q3 us-gaap Deferred Costs Current And Noncurrent
DeferredCostsCurrentAndNoncurrent
20600000 USD
CY2018Q4 us-gaap Deferred Costs Current And Noncurrent
DeferredCostsCurrentAndNoncurrent
17500000 USD
CY2019Q3 us-gaap Amortization Of Deferred Charges
AmortizationOfDeferredCharges
1300000 USD
CY2018Q3 us-gaap Amortization Of Deferred Charges
AmortizationOfDeferredCharges
800000 USD
CY2018Q4 us-gaap Capitalized Contract Cost Net
CapitalizedContractCostNet
3900000 USD
CY2019Q3 us-gaap Capitalized Contract Cost Amortization
CapitalizedContractCostAmortization
400000 USD
CY2018Q3 us-gaap Capitalized Contract Cost Amortization
CapitalizedContractCostAmortization
100000 USD
us-gaap Capitalized Contract Cost Amortization
CapitalizedContractCostAmortization
1000000.0 USD
us-gaap Capitalized Contract Cost Amortization
CapitalizedContractCostAmortization
400000 USD
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Deferred revenue</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Deferred revenue primarily consists of customer invoicing in advance of revenues being recognized. The Company generally invoices its customers annually in advance for subscription services and maintenance and support services. Deferred revenue that is anticipated to be recognized during the next twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as long-term.</span></div>
us-gaap Income Tax Expense Benefit
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200000 USD
CY2019Q3 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.006
CY2018Q3 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.011
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.011
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.003
CY2019Q3 us-gaap Line Of Credit
LineOfCredit
0 USD
CY2019Q3 us-gaap Line Of Credit Facility Maximum Borrowing Capacity
LineOfCreditFacilityMaximumBorrowingCapacity
50000000.0 USD
CY2019Q3 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
100000 USD
CY2019Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
100000 USD
CY2018Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
200000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
600000 USD
CY2019Q3 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
45100000 USD
CY2018Q3 us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
32400000 USD
us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
86200000 USD
us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
64400000 USD
CY2019Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
365200000 USD
CY2019Q3 pro Revenue Remaining Performance Obligationtoberecognizedwithin12months
RevenueRemainingPerformanceObligationtoberecognizedwithin12months
176600000 USD
CY2019Q3 us-gaap Revenues
Revenues
64150000 USD
CY2019Q3 pro Percentage Of Total Revenue
PercentageOfTotalRevenue
1
CY2018Q3 us-gaap Revenues
Revenues
49075000 USD
CY2018Q3 pro Percentage Of Total Revenue
PercentageOfTotalRevenue
1
us-gaap Revenues
Revenues
184159000 USD
pro Percentage Of Total Revenue
PercentageOfTotalRevenue
1
us-gaap Revenues
Revenues
144411000 USD
pro Percentage Of Total Revenue
PercentageOfTotalRevenue
1
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
6181000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
5679000 USD
us-gaap Operating Lease Cost
OperatingLeaseCost
6778000 USD
CY2019Q3 us-gaap Variable Lease Cost
VariableLeaseCost
498000 USD
us-gaap Variable Lease Cost
VariableLeaseCost
1389000 USD
CY2019Q3 us-gaap Sublease Income
SubleaseIncome
99000 USD
us-gaap Sublease Income
SubleaseIncome
248000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
10500000 USD
us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
200000 USD
CY2019Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangibles
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles
2000000 USD
us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
11000000 USD
CY2019Q3 us-gaap Operating Lease Cost
OperatingLeaseCost
2285000 USD
CY2019Q3 us-gaap Lease Cost
LeaseCost
2684000 USD
us-gaap Lease Cost
LeaseCost
7919000 USD
CY2019Q3 us-gaap Operating Lease Payments
OperatingLeasePayments
1467000 USD
us-gaap Operating Lease Payments
OperatingLeasePayments
4349000 USD
CY2019Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P7Y
CY2019Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0726
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
57365000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
2327000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
7558000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
10109000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
4542000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
4562000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
38654000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
67752000 USD
CY2019Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
22945000 USD
CY2019Q3 pro Lessee Operating Lease Anticipated Incentives
LesseeOperatingLeaseAnticipatedIncentives
14207000 USD
CY2019Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
30600000 USD
CY2019Q3 us-gaap Unrecorded Unconditional Purchase Obligation Balance Sheet Amount
UnrecordedUnconditionalPurchaseObligationBalanceSheetAmount
1500000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
4164000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
1649000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
5115000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
80153000 USD
us-gaap Net Income Loss
NetIncomeLoss
-51781000 USD
us-gaap Net Income Loss
NetIncomeLoss
-51486000 USD
CY2019Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
41276000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
35676000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
39438000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
33568000 shares
CY2019Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2018Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2019Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
41276000 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
35676000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
39438000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
33568000 shares
CY2019Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.42
CY2018Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.44
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-1.31
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-1.53
CY2019Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.42
CY2018Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.44
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.31
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.53
CY2018Q4 us-gaap Convertible Debt
ConvertibleDebt
225190000 USD
CY2019Q3 us-gaap Debt Instrument Convertible Carrying Amount Of The Equity Component
DebtInstrumentConvertibleCarryingAmountOfTheEquityComponent
70443000 USD
CY2018Q4 us-gaap Debt Instrument Convertible Carrying Amount Of The Equity Component
DebtInstrumentConvertibleCarryingAmountOfTheEquityComponent
37560000 USD
CY2018Q4 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet
24810000 USD
CY2019Q3 us-gaap Convertible Debt
ConvertibleDebt
151367000 USD
CY2019Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
6209000 USD
CY2018Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
4957000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
18234000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
16355000 USD
CY2019Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
46700000 USD
us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P2Y6M
CY2019Q3 pro Sharebasedcompensationarrangementbysharebasedpayment Minimum Employee Subscriptionrate
SharebasedcompensationarrangementbysharebasedpaymentMinimumEmployeeSubscriptionrate
0.01
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Maximum Employee Subscription Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardMaximumEmployeeSubscriptionRate
0.10
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Discount From Market Price Offering Date
ShareBasedCompensationArrangementByShareBasedPaymentAwardDiscountFromMarketPriceOfferingDate
0.15
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Discount From Market Price Offering Date
ShareBasedCompensationArrangementByShareBasedPaymentAwardDiscountFromMarketPriceOfferingDate
0.15
pro Maximum Amount Contributablebyemployeesunder Espp Halfyearly
MaximumAmountContributablebyemployeesunderESPPHalfyearly
5000 USD
pro Maximum Amount Contributable By Employees Under Espp Annually
MaximumAmountContributableByEmployeesUnderESPPAnnually
10000 USD
CY2019Q3 us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
39964 shares
us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
75304 shares
pro Esp Pcontributionsby Employees
ESPPcontributionsbyEmployees
800000 USD
CY2019Q3 us-gaap Long Term Debt Percentage Bearing Fixed Interest Rate
LongTermDebtPercentageBearingFixedInterestRate
0.02
CY2019Q3 us-gaap Long Term Debt Percentage Bearing Fixed Interest Rate
LongTermDebtPercentageBearingFixedInterestRate
0.02
CY2019Q3 us-gaap Debt Instrument Fair Value
DebtInstrumentFairValue
231000000.0 USD
CY2018Q4 us-gaap Debt Instrument Fair Value
DebtInstrumentFairValue
251500000 USD
CY2019Q3 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
189431000 USD
CY2018Q4 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
250000000 USD
CY2019Q3 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet
38064000 USD
CY2019Q3 us-gaap Debt Instrument Periodic Payment Interest
DebtInstrumentPeriodicPaymentInterest
863000 USD
CY2018Q3 us-gaap Debt Instrument Periodic Payment Interest
DebtInstrumentPeriodicPaymentInterest
1250000 USD
us-gaap Debt Instrument Periodic Payment Interest
DebtInstrumentPeriodicPaymentInterest
3219000 USD
us-gaap Debt Instrument Periodic Payment Interest
DebtInstrumentPeriodicPaymentInterest
3750000 USD
CY2019Q3 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
286000 USD
CY2018Q3 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
357000 USD
us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
992000 USD
us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
1058000 USD
CY2019Q3 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
2568000 USD
CY2018Q3 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
2659000 USD
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
8136000 USD
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
7863000 USD
CY2019Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
3717000 USD
CY2018Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
4266000 USD
us-gaap Interest Expense Debt
InterestExpenseDebt
12347000 USD
us-gaap Interest Expense Debt
InterestExpenseDebt
12671000 USD
pro Proceedsfrombondhedgetermination
Proceedsfrombondhedgetermination
64800000 USD
pro Paymentforwarranttermination
Paymentforwarranttermination
45200000 USD
pro Purchaseofcappedcall
Purchaseofcappedcall
16400000 USD
CY2019Q3 us-gaap Purchase Obligation
PurchaseObligation
67000000.0 USD

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