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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 22, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	ALTR
Entity Registrant Name	ALTAIR ENGINEERING INC.
Entity Central Index Key	0001701732
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		39,011,887
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		32,088,924

Consolidated balance sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 39,771	$ 35,345
Accounts receivable, net	88,358	96,803
Inventory, net	3,389	1,964
Income tax receivable	8,137	4,431
Prepaid expenses and other current assets	15,976	15,491
Total current assets	155,631	154,034
Property and equipment, net	33,524	30,153
Operating lease right of use assets	29,892
Goodwill	210,714	210,532
Other intangible assets, net	68,469	69,836
Deferred tax assets	1,978	1,373
Other long-term assets	18,658	17,288
TOTAL ASSETS	518,866	483,216
CURRENT LIABILITIES:
Current portion of long-term debt	453	331
Accounts payable	6,569	8,357
Accrued compensation and benefits	28,643	31,740
Current portion of operating lease liabilities	9,464
Other accrued expenses and current liabilities	31,910	27,565
Deferred revenue	66,030	59,765
Total current liabilities	143,069	127,758
Long-term debt, net of current portion	15,686	31,417
Operating lease liabilities, net of current portion	21,744
Deferred revenue, non-current	6,511	6,754
Other long-term liabilities	27,811	28,153
TOTAL LIABILITIES	214,821	194,082
Commitments and contingencies
MEZZANINE EQUITY	2,352	2,352
STOCKHOLDERS’ EQUITY:
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding
Additional paid-in capital	381,159	379,832
Accumulated deficit	(68,986)	(82,005)
Accumulated other comprehensive loss	(10,487)	(11,052)
TOTAL STOCKHOLDERS’ EQUITY	301,693	286,782
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY	518,866	483,216
Class A Common Stock [Member]
STOCKHOLDERS’ EQUITY:
Common stock	4	4
Class B Common Stock [Member]
STOCKHOLDERS’ EQUITY:
Common stock	$ 3	$ 3

Consolidated balance sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	45,000,000	45,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	513,797,000	513,797,000
Common stock, shares issued	38,760,000	38,349,000
Common stock, shares outstanding	38,760,000	38,349,000
Class B Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	41,203,000	41,203,000
Common stock, shares issued	32,171,000	32,171,000
Common stock, shares outstanding	32,171,000	32,171,000

Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Total revenue	$ 127,859	$ 113,257
Total cost of revenue	32,885	29,042
Gross profit	94,974	84,215
Operating expenses:
Research and development	27,516	22,703
Sales and marketing	26,451	18,627
General and administrative	20,329	16,990
Amortization of intangible assets	3,528	1,940
Other operating income	(617)	(2,191)
Total operating expenses	77,207	58,069
Operating income	17,767	26,146
Interest expense	270	16
Other expense (income), net	390	(900)
Income before income taxes	17,107	27,030
Income tax expense	4,088	2,346
Net income	$ 13,019	$ 24,684
Income per share:
Net income per share attributable to common stockholders, basic	$ 0.18	$ 0.39
Net income per share attributable to common stockholders, diluted	$ 0.17	$ 0.34
Weighted average shares outstanding:
Weighted average number of shares used in computing net income per share, basic	70,786	63,638
Weighted average number of shares used in computing net income per share, diluted	76,720	72,390
License [Member]
Total revenue	$ 76,621	$ 66,935
Total cost of revenue	5,821	3,730
Maintenance and Other Services [Member]
Total revenue	26,670	22,734
Total cost of revenue	8,531	7,192
Total Software [Member]
Total revenue	103,291	89,669
Total cost of revenue	14,352	10,922
Software Related Services [Member]
Total revenue	9,772	9,473
Total cost of revenue	6,518	6,709
Total Software and Related Services [Member]
Total revenue	113,063	99,142
Total cost of revenue	20,870	17,631
Client Engineering Services [Member]
Total revenue	12,050	12,080
Total cost of revenue	9,800	10,200
Other [Member]
Total revenue	2,746	2,035
Total cost of revenue	$ 2,215	$ 1,211

Consolidated statements of comprehensive income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 13,019	$ 24,684
Other comprehensive income, net of tax:
Foreign currency translation (net of tax effect of $0 and $0, respectively)	337	1,255
Retirement related benefit plans (net of tax effect of $0 and $10, respectively)	228	(12)
Total other comprehensive income	565	1,243
Comprehensive income	$ 13,584	$ 25,927

- Definition

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

+ References + Details

Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax effect	$ 0	$ 0
Retirement related benefit plans, tax effect	$ 0	$ 10

Consolidated statement of changes in stockholders' equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member] Class A Common Stock [Member]	Common Stock [Member] Class B Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2017	$ 60,591	$ 2	$ 4	$ 232,156	$ (166,499)	$ (5,072)
Beginning balance (in shares) at Dec. 31, 2017		26,725	36,508
Net income	24,684				24,684
Adjustment for acquisitions	(96)			(96)
Exercise of stock options	301	$ 1		300
Exercise of stock options (in shares)		632
Stock-based compensation	216			216
Foreign currency translation, net of tax	1,255					1,255
Retirement related benefit plans, net of tax	(12)					(12)
Ending balance at Mar. 31, 2018	157,718	$ 3	$ 4	232,576	(71,036)	(3,829)
Ending balance (in shares) at Mar. 31, 2018		27,357	36,508
Cumulative effect of an accounting change	70,779				70,779
Beginning balance at Dec. 31, 2018	286,782	$ 4	$ 3	379,832	(82,005)	(11,052)
Beginning balance (in shares) at Dec. 31, 2018		38,349	32,171
Net income	13,019				13,019
Exercise of stock options	458			458
Exercise of stock options (in shares)		397
Vesting of restricted stock (in shares)		14
Stock-based compensation	869			869
Foreign currency translation, net of tax	337					337
Retirement related benefit plans, net of tax	228					228
Ending balance at Mar. 31, 2019	$ 301,693	$ 4	$ 3	$ 381,159	$ (68,986)	$ (10,487)
Ending balance (in shares) at Mar. 31, 2019		38,760	32,171

Consolidated statements of cash flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
OPERATING ACTIVITIES:
Net income	$ 13,019	$ 24,684
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,194	3,543
Provision for bad debt	120	65
Stock-based compensation expense	1,212	216
Deferred income taxes	(654)	271
Other, net	4	(7)
Changes in assets and liabilities:
Accounts receivable	7,678	4,492
Prepaid expenses and other current assets	(5,755)	(1,091)
Other long-term assets	(1,516)	116
Accounts payable	(1,792)	510
Accrued compensation and benefits	(2,815)	(1,560)
Other accrued expenses and current liabilities	4,093	(3,545)
Operating lease right-of-use assets and liabilities, net	286
Deferred revenue	6,241	(1,005)
Net cash provided by operating activities	25,315	26,689
INVESTING ACTIVITIES:
Capital expenditures	(4,583)	(1,684)
Payments for acquisition of developed technology	(344)	(353)
Payments for acquisition of businesses, net of cash acquired		(1,199)
Other investing activities, net	2	23
Net cash used in investing activities	(4,925)	(3,213)
FINANCING ACTIVITIES:
Payments on revolving commitment	(68,395)
Borrowings under revolving commitment	52,289
Proceeds from the exercise of stock options	458	302
Payments for initial public offering costs		(186)
Other financing activities	(119)	(111)
Net cash (used in) provided by financing activities	(15,767)	5
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(176)	495
Net increase in cash, cash equivalents and restricted cash	4,447	23,976
Cash, cash equivalents and restricted cash at beginning of year	35,685	39,578
Cash, cash equivalents and restricted cash at end of period	40,132	63,554
Supplemental disclosure of cash flow:
Interest paid	225	10
Income taxes paid	2,327	2,143
Supplemental disclosure of non-cash investing and financing activities:
Finance leases	488	565
Property and equipment in accounts payable	$ 295	$ 736

Organization and Description of Business

3 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Description of Business

1.	Organization and description of business

Altair Engineering Inc. (“Altair” or the “Company”) is incorporated in the state of Delaware. The Company is a global technology company providing software and cloud solutions in the areas of product design and development, high performance computing and data intelligence. Altair enables organization across broad industry segments to complete more effectively in a connected world while creating a more sustainable future. The Company is headquartered in Troy, Michigan.

Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Accounting Policies

2.	Accounting policies

Basis of presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Accordingly, the accompanying statements do not include all the information and notes required by GAAP for complete financial statements. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements (and notes thereto) for the year ended December 31, 2018, included in the most recent Annual Report on Form 10-K filed with the SEC. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting periods. Considerable judgment is often involved in making these determinations; use of different assumptions could result in significantly different results. Management believes its assumptions and estimates are reasonable and appropriate. However, actual results may differ from those estimates. In addition, the results of operations for the three months ended March 31, 2019, are not necessarily indicative of the results that may be expected for any future period.

The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), and its related amendments, on January 1, 2019. See Note 3 – Recent accounting guidance and Note 9 – Leases for additional information. There have been no other material changes to Altair’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Adoption of ASC 606, Revenue from Contracts with Customers

In the fourth quarter of fiscal 2018, the Company adopted ASC 606 effective on January 1, 2018, using the modified retrospective approach for all contracts not completed as of the date of adoption. Results for the three months ended March 31, 2018, have been modified to reflect the adoption of ASC 606 on January 1, 2018.

The Company recorded a decrease to accumulated deficit of $84.6 million, or $70.8 million net of tax, on January 1, 2018, due to the cumulative effect of the ASC 606 adoption, with the impact primarily derived from revenue related to software licenses recognized at a point in time under ASC 606 that were historically recognized over time. There was no impact on Client Engineering Services or Other revenue upon the adoption of ASC 606.

The Company has concluded that all material transactions that have occurred that require disclosure or adjustments to the consolidated financial statements have been reported herein.

Reclassifications

Certain prior period amounts included in the 2018 consolidated statement of operations has been reclassified to conform to the current year presentation.

Use of estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, management evaluates its significant estimates including the stand alone selling price, or SSP, for each distinct performance obligation included in customer contracts with multiple performance obligations, the incremental borrowing rate used in the valuation of lease liabilities, the determination of the period of benefit for capitalized costs to obtain a contract, provision for doubtful accounts, tax valuation allowances, liabilities for uncertain tax provisions, impairment of goodwill and intangible assets, retirement obligations, useful lives of intangible assets, revenue for fixed price contracts, valuation of common stock, and stock-based compensation. Actual results could differ from those estimates.

Cash, cash equivalents and restricted cash

The Company considers all highly liquid investments with original or remaining maturities of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value.

Restricted cash is included in other long-term assets on the consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet that sum to the total of the amounts reported in the consolidated statement of cash flows (in thousands):

	March 31, 2019		December 31, 2018
Cash and cash equivalents	$	39,771	$	35,345
Restricted cash included in other long-term assets		361		340
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	40,132	$	35,685

Restricted cash represents amounts required for a contractual agreement with an insurer for the payment of potential health insurance claims, and term deposits for bank guarantees.

Inventory

Inventory consist of finished goods and is stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. The valuation of inventory requires management to estimate excess inventory as well as inventory that is not of saleable quality. The determination of obsolete or excess inventory requires management to estimate market conditions and future demand for the Company’s products.

Receivable for French R&D credit

The French government provides a research and development (“R&D”) tax credit known as Credit Impôt Recherche, or CIR, in order to encourage Companies to invest in R&D activities. The tax credit is deductible from French income tax and any excess is carried forward three years. After three years, any unused credit may be reimbursed to the Company by the French government. As of March 31, 2019, the Company had approximately $11.1 million receivable from the French government related to CIR, of which $1.4 million was recorded in income tax receivable and the remaining $9.7 million was recorded in other long-term assets. As of December 31, 2018, the Company had approximately $11.7 million receivable from the French government related to CIR, of which $2.6 million was recorded in income tax receivable and the remaining $9.1 million was recorded in other long-term assets. CIR is subject to customary audit by French tax authorities.

Mezzanine equity

In 2017, the Company issued 200,000 shares of Class A common stock to a third party as partial consideration for the purchase of developed technology. These shares have a put right that can be exercised by the holder five years from date of purchase at $12.50 per share that requires the shares to be recorded at fair value at the issuance date and classified as mezzanine equity in the consolidated balance sheet. The put right option is terminated if the shareholders sell their shares. As of December 31, 2017, the Company concluded that it is no longer probable that the put option will be exercised as the put value is substantially below market value and subsequent adjustment is not required.

Classification of the of instrument shall remain as mezzanine equity until one of the following three events take place: (1) shares are sold on the open market; (2) a redemption feature lapses; or (3) there is a modification of the terms of the instrument. As none of these events have taken place as of March 31, 2019, the classification remains as mezzanine equity.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities, net of current portion on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, current portion of long-term debt, and long-term debt, net of current portion on the consolidated balance sheets.

Income per share

Basic income per share attributable to common stockholders is computed using the weighted average number of shares of common stock outstanding for the period, excluding stock options and restricted stock units (“RSUs”). Diluted income per share attributable to common stockholders is based upon the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares, including the effect of stock options and RSUs under the treasury stock method. The following table sets forth the computation of the numerators and denominators used in the basic and diluted income per share amounts (in thousands, except per share data):

	Three Months Ended March 31,
	2019		2018
Numerator:
Net income	$	13,019	$	24,684
Denominator:
Denominator for basic income per share— weighted average shares		70,786		63,638
Effect of dilutive securities, stock options and RSUs		5,934		8,752
Denominator for dilutive income per share		76,720		72,390
Net income per share attributable to common stockholders, basic	$	0.18	$	0.39
Net income per share attributable to common stockholders, diluted	$	0.17	$	0.34

The computation of diluted income per share does not include shares that are anti-dilutive under the treasury stock method because their exercise prices are higher than the average fair value of the Company’s stock during the period or due to a net loss in the period. For each of the three months ended March 31, 2019 and 2018, there were no anti-dilutive shares excluded from the computation of income per share.

Recent Accounting Guidance

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Guidance

3.	Recent accounting guidance

Accounting standards adopted

Leases —In February 2016, the Financial Accounting Standard Board, or “FASB”, issued Accounting Standards Update, or “ASU”, No. 2016-02, Leases (ASC 842). This standard amends various aspects of existing accounting guidance for leases, including the recognition of a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The Company adopted ASU 2016-02 and its related amendments, on January 1, 2019 and elected the optional transition method and the package of practical expedients on adoption. Accordingly, the prior period comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods (ASC 840), including the disclosure requirements. The most significant impact of the adoption of ASC 842 was the recognition of ROU assets and lease liabilities for operating leases on the Company’s consolidated balance sheet. On adoption, the Company recognized operating liabilities associated with leases of $30.1 million and corresponding ROU assets of $29.1 million, based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. See Note 9 – Leases for further discussion. The Company’s accounting for finance leases (previously referred to as capital leases prior to the adoption of ASC 842) remained substantially unchanged. The standard had no impact on the Company’s consolidated net income or cash flows.

Derivatives and Hedging – In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU amends the guidance with the objective of improving the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, this ASU amends the current guidance to simplify the application of the hedge accounting guidance. The Company adopted ASU 2017-12 on January 1, 2019. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements.

Comprehensive Income – In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI), which gives entities the option to reclassify to retained earnings the tax effects resulting from the Tax Cuts and Jobs Act, or the “Tax Act”, related to items in AOCI that the FASB refers to as having been stranded in AOCI. The Company adopted this guidance on January 1, 2019 and elected not to reclassify amounts stranded in AOCI. The Company reclassifies taxes from AOCI to earnings as the items to which the tax effects relate are similarly reclassified. The adoption of ASU 2018-02 did not have a material effect on the Company’s consolidated financial statements.

Stock Compensation – In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The Company adopted this guidance on January 1, 2019, which did not have a material effect on the Company’s consolidated financial statements.

Accounting standards not yet adopted

Credit Losses – In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU significantly changes how entities will measure credit losses on most financial assets. This guidance is effective for annual periods beginning after 15 December 2019, and interim periods therein; early adoption is permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements and related disclosures.

Goodwill Impairment —In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies accounting for goodwill impairments by eliminating step two from the goodwill impairment test. This guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The new standard must be applied on a prospective basis. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Fair Value – In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements, by removing, modifying, or adding certain disclosures. The amendments are effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.

Retirement Benefits – In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits- Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU modifies the disclosure requirements for defined benefit pension or other postretirement plans. The amendments are effective for fiscal years ending after December 15, 2020; early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

Intangibles – In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU clarifies and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years; early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

4.	Revenue from contracts with customers

Revenue recognition

Software revenue

Revenue is derived principally from the licensing of software products and from related maintenance contracts. The Company enters into contracts that include combinations of products, maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns.

Revenue from term-based software licenses is classified as software revenue. Term-based licenses are sold only as a bundled arrangement that includes the rights to a term software license and post-contract customer support (PCS), which includes unspecified technical enhancements and customer support. Maximizing the use of observable inputs, the Company determined that a majority of the estimated standalone selling prices of the term-based license is attributable to the term license and a minority is attributable to the PCS. The license component is classified as license revenue and recognized as revenue upon the later of delivery of the licensed product or the beginning of the license period. PCS is classified as maintenance and other services and is recognized ratably over the term of the contract, as the Company provides the PCS benefit over time as a stand ready to perform obligation.

In addition to term-based software licenses, the Company sells perpetual licenses. Software revenue is recognized upon the later of delivery of the licensed product or the beginning of the license period. Typically, the Company’s perpetual licenses are sold with PCS. The Company allocates value in bundled perpetual and PCS arrangements based on the value relationship between the software license and maintenance. Revenue from PCS is classified as maintenance and other services and is recognized ratably over the term of the contract, as the Company satisfies the PCS performance obligation over time as a stand ready to perform obligation.

Revenue from training, consulting and other services is recognized as the services are performed, and is classified as maintenance and other services in the consolidated statement of operations. For contracts in which the service consists of a single performance obligation, such as providing a training class to a customer, the Company recognizes revenue upon completion of the performance obligation. For service contracts that are longer in duration and often include multiple performance obligations (for example, point-in-time training and consulting), the Company measures the progress toward completion of the obligations and recognizes revenue accordingly. In measuring progress towards the completion of performance obligations, the Company typically utilizes output-based estimates for services with fixed fee arrangements, and estimates output based on the total tasks completed as compared to the total tasks required for each contract. Input-based estimates are utilized for services that involve general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure.

The Company also executes arrangements through indirect channel partners in which the channel partners are authorized to market and distribute the Company's software products to end users of the Company's products and services in specified territories. In sales facilitated by channel partners, the channel partner bears the risk of collection from the end-user customer. The Company recognizes revenue from transactions with channel partners when the channel partner submits a purchase commitment, collectability from the channel partner is probable, and the performance obligation is met, at a point in time or over time as appropriate, provided that all other revenue recognition criteria are satisfied. Revenue from channel partner transactions is the amount remitted to the Company by the channel partners. This amount includes a fee for PCS that is compensation for providing technical enhancements and the second level of technical support to the end user, which is recognized over the period that PCS is to be provided. The Company does not offer right of return, product rotation, or price protection to any of its channel partners.

Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the consolidated balance sheet as accounts receivable, net and other accrued expenses and current liabilities. These amounts are reported on a net basis in the consolidated statements of operations and do not impact reported revenues or expenses.

Significant judgments

Software revenue

The Company’s contracts with customers typically include promises to transfer licenses and services to a customer. Judgment is required to determine if the promises are separate performance obligations within the context of the arrangement, and if so, the allocation of the transaction price to each performance obligation. The Company’s determination of standalone selling price for performance obligations is based on the midpoint of the range of historical observable prices for goods and services sold separately. In addition, the Company estimates the standalone selling price for certain performance obligations where observable prices are not directly available or a significant portion of historical prices are not within the range. The Company estimates standalone selling price at contract inception considering all information that is reasonably available and is based on the amount of consideration for which the Company expects to be entitled in exchange for transferring the promised good or service to the customer. The corresponding revenues are recognized as the related performance obligations are satisfied.

The Company’s contracts do not include a significant financing component requiring adjustment to the transaction price. Payment terms vary by contract type; however, arrangements typically stipulate a requirement for the customer to pay within 30 days.

The Company rarely enters into agreements to modify previously executed contracts, which constitute contract modifications. The Company assesses each of these contract modifications to determine (i) if the additional products and services are distinct from the products and services in the original arrangement; and (ii) if the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services, as adjusted for contract-specific circumstances. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either (i) a prospective basis as a termination of the existing contract and the creation of a new contract; or (ii) a cumulative catch-up basis. Generally, the Company’s contract modifications meet both criteria and are accounted for as a separate contract, as adjusted for contract-specific circumstances.

Software related services revenue

Consulting services from product design and development projects are considered distinct performance obligations and are provided to customers on a time-and-materials (“T&M”) or fixed-price basis. Altair recognizes software services revenue for T&M contracts based upon hours worked and contractually agreed-upon hourly rates using the input method. Revenue from fixed-price engagements is recognized using the output method based on the ratio of costs incurred, to the total estimated project costs.

Client engineering services and Other revenue

Client engineering services revenue are derived from professional services for staffing primarily representing engineers and data scientists located at a customer site. These professional services are considered distinct performance obligations and are provided to customers on a T&M basis. The Company recognizes this revenue for T&M contracts based upon hours worked and contractually agreed-upon hourly rates using the input method. No significant judgments were made for revenue recognition within Other revenue.

Disaggregation of revenue

The Company disaggregates its software revenue by type of performance obligation and timing of revenue recognition as follows (in thousands):

	Three Months Ended March 31,
	2019		2018
Software revenue:
Term licenses	$	65,057	$	57,165
Perpetual licenses		11,564		9,770
Maintenance		22,752		20,828
Professional services and other		3,918		1,906
Total software revenue	$	103,291	$	89,669

The Company derived approximately 10% of its total revenue through indirect sales channels for the three months ended March 31, 2019 and 2018.

For the three months ended March 31, 2019 and 2018, respectively, software related services revenue of $9.8 million and $9.5 million, client engineering services of $12.1 million and $12.1 million, and other revenue of $2.7 million and $2.0 million, were categorized based on the nature and timing of revenue and cash flows effected by economic factors.

Costs to obtain a contract

The Company pays commissions for new software product and PCS sales as well as for renewals of existing software and PCS contracts. Commissions paid to obtain renewal contracts are not commensurate with the commissions paid for new product sales and therefore, a portion of the commissions paid for new contracts relate to future renewals.

The Company accounts for new product sales commissions using a portfolio approach and allocates the cost of commissions in proportion to the allocation of transaction price of license and PCS performance obligations. Commissions allocated to the license and license renewal components are expensed at the time the license revenue is recognized. Commissions allocated to PCS are capitalized and amortized on a straight-line basis over a period of four years, reflecting the Company’s estimate of the expected period that it will benefit from those commissions. As of March 31, 2019 and December 31, 2018, capitalized costs to obtain a contract were $2.2 million and $2.0 million, respectively, recorded in prepaid and other current assets, and $0.5 million and $0.2 million, respectively, recorded in other long-term assets. Amortization expense was $1.0 million and $0.9 million for the three months ended March 31, 2019 and 2018, respectively, and was included in sales and marketing expense in the Company’s consolidated statement of operations.

Contract assets

At March 31, 2019 and December 31, 2018, contract assets were $5.9 million and $3.7 million, respectively, and are included in accounts receivable in the consolidated balance sheets.

Deferred revenue

Deferred revenue consists of billings made or payments received in advance of revenue recognition from software license, PCS and professional services agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The term between invoicing and when payment is due is not significant. The Company generally invoices its customers annually for the forthcoming year of software licenses, and more frequently for other products and services. Accordingly, the Company’s deferred revenue balance does not include revenue for future years of multiple year non-cancellable contracts that have not yet been billed. Approximately $30.4 million of revenue recognized during the three months ended March 31, 2019, was included in the deferred revenue balances at the beginning of the year.

Acquisitions

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Acquisitions

5.	Acquisitions

Datawatch Corporation

On November 5, 2018, the Company entered into an Agreement and Plan of Merger (“Merger Agreement”) with Datawatch Corporation, a Delaware corporation (“Datawatch”), and Dallas Merger Sub, Inc., a Delaware corporation (“Purchaser”) and a wholly owned subsidiary of the Company. Pursuant to the Merger Agreement, the Purchaser commenced a tender offer to purchase all of the issued and outstanding shares of Datawatch common stock, (the “Shares”) at a purchase price of $13.10 per share, net to seller in cash, without interest and less any applicable withholding taxes (the “Offer”).

On December 13, 2018, the Company accepted and paid for all Shares that were validly tendered and completed the acquisition of Datawatch through the merger of Purchaser with and into Datawatch, with Datawatch surviving as a wholly owned subsidiary of the Company.

Altair completed the acquisition of Datawatch for consideration of approximately $183.4 million which consisted of consideration paid to former holders of common stock of Datawatch at $13.10 a share, or $168.2 million and approximately $6.7 million to former holders of outstanding Datawatch equity awards. In addition, Altair paid $8.0 million on the day of closing to settle all of Datawatch’s outstanding debt and incurred a liability of approximately $0.5 million payable to former holders of certain unvested Datawatch equity awards for which service had been rendered at the acquisition date. Altair financed the acquisition with cash on hand and a drawdown from its existing credit facility.

The financial results of Datawatch have been included in the consolidated financial statements since the acquisition date.

The acquisition of Datawatch has been accounted for as a business combination, under the acquisition method of accounting, which results in acquired assets and assumed liabilities being measured at their estimated fair values as of December 13, 2018, the acquisition date. As of the acquisition date, goodwill is measured as the excess of consideration transferred, which is also generally measured at fair value of the net acquisition date fair values of the assets acquired and liabilities assumed.

The following table summarizes the preliminary purchase consideration transferred to acquire Datawatch and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands):

Fair value of consideration transferred	$	183,427
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		8,278
Accounts receivable		10,384
Other assets		3,055
Property and equipment		980
Trade names		7,400
Developed technology (6-year life)		22,900
Customer relationships (10-year life)		16,700
Accounts payable and other liabilities		(5,041	)
Deferred revenue		(4,100	)
Other long-term liabilities		(8,362	)
Total net identifiable assets acquired and liabilities assumed		52,194
Goodwill ⁽¹⁾	$	131,233

(1)	Goodwill is primarily attributable to market synergies expected to arise after the acquisition and approximately $0.8 million is deductible for tax purposes. All goodwill is recorded in the Software segment.

The excess of preliminary purchase consideration over the preliminary fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The preliminary fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The deferred tax liability established was primarily a result of the difference in the book basis and tax basis related to the identifiable intangible assets. The preliminary estimated fair values of assets acquired and liabilities assumed, including current and noncurrent income taxes payable and deferred taxes, customer contract assets and liabilities and identifiable intangible assets may be subject to change as additional information is received and certain tax returns are finalized. Thus, the provisional measurements of fair value set forth above are subject to change. The primary areas that remain preliminary relate to the fair value of intangible assets acquired, certain tangible assets and liabilities acquired, income taxes and residual goodwill.

SIMSOLID Corporation

In October 2018, the Company acquired all of the outstanding capital stock of SIMSOLID Corporation, a Canadian corporation (“SIMSOLID”), for aggregate consideration of $22.1 million. The allocation of fair value of purchase consideration was finalized in the current quarter and there were no changes to the fair value of assets acquired and liabilities assumed, as previously reported.

Property and Equipment, Net

3 Months Ended

Mar. 31, 2019

Property Plant And Equipment [Abstract]

Property and Equipment, Net

6.	Property and equipment, net

Property and equipment consisted of the following (in thousands):

	March 31,		December 31,
	2019		2018
Land	$	7,994	$	7,994
Building and improvements		13,172		13,120
Computer equipment and software		35,189		34,582
Office furniture and equipment		8,201		7,958
Leasehold improvements		8,128		6,926
Right-of-use assets under finance leases		2,527		—
Total property and equipment		75,211		70,580
Less: accumulated depreciation and amortization		41,687		40,427
Property and equipment, net	$	33,524	$	30,153

Depreciation expense, including amortization of ROU assets under finance leases, was $1.7 million and $1.6 million for the three months ended March 31, 2019 and 2018, respectively.

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

7.	Goodwill and other intangible assets

Goodwill

The changes in the carrying amount of goodwill, which is attributable to the Software reporting segment, were as follows (in thousands):

Balance at December 31, 2018	$	210,532
Effects of foreign currency translation and other		182
Balance at March 31, 2019	$	210,714

Other intangible assets

A summary of other intangible assets is shown below (in thousands):

	March 31, 2019
	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Developed technology	4-6 years	$	56,281	$	17,912	$	38,369
Customer relationships	7-10 years		28,699		8,307		20,392
Other intangibles	10 years		212		56		156
Total definite-lived intangible assets			85,192		26,275		58,917
Indefinite-lived intangible assets:
Trade names			9,552				9,552
Total other intangible assets		$	94,744	$	26,275	$	68,469

	December 31, 2018
	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Developed technology	4-6 years	$	54,530	$	15,517	$	39,013
Customer relationships	7-10 years		28,422		7,309		21,113
Other intangibles	10 years		109		56		53
Total definite-lived intangible assets			83,061		22,882		60,179
Indefinite-lived intangible assets:
Trade names			9,657				9,657
Total other intangible assets		$	92,718	$	22,882	$	69,836

Amortization expense related to intangible assets was $3.5 million and $1.9 million for the three months ended March 31, 2019 and 2018, respectively.

Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Debt

The carrying value of debt is as follows (in thousands):

	March 31,		December 31,
	2019		2018
Revolving credit facility	$	14,844	$	30,950
Obligations for finance leases		1,328		813
Other borrowings		50		75
Total debt		16,222		31,838
Less: unamortized debt issuance costs		83		90
Less: current portion of long-term debt		453		331
Long-term debt, net of current portion	$	15,686	$	31,417

Credit agreement

Revolving credit facility

The Company has a revolving credit facility with a syndicate of lenders and Altair Engineering Inc.as borrower (“2017 Credit Agreement”). The 2017 Credit Agreement provides for an aggregate commitment amount of $150.0 million, with a sublimit for the issuance of letters of credit of up to $5.0 million and a sublimit for swingline loans of up to $5.0 million. The 2017 Credit Agreement matures on October 18, 2022. The 2017 Credit Agreement provides for an accordion feature that allows the Company to expand the size of the revolving line of credit by an additional $50.0 million, subject to certain conditions, by obtaining additional commitments from the existing lenders or by causing a person acceptable to the administrative agent to become a lender (in each case subject to the terms and conditions set forth in the 2017 Credit Agreement).

As of March 31, 2019, the Company had $14.8 million of outstanding borrowings under the 2017 Credit Agreement and there was $135.2 million available for future borrowing. The 2017 Credit Agreement is available for general corporate purposes, including working capital, capital expenditures, and permitted acquisitions.

Borrowings under the 2017 Credit Agreement bear interest at a rate per annum equal to an agreed upon applicable margin plus, at the Company’s option, either the Alternate Base Rate (defined as the greatest of (1) the Prime Rate (as defined in the 2017 Credit Agreement) in effect on such day, (2) the Federal Funds Effective Rate (as defined in the 2017 Credit Agreement) in effect on such day plus 1/2 of 1.00% or (3) the Adjusted LIBO Rate (as defined in the 2017 Credit Agreement) for a one month interest period on such day (or if such day is not a business day, the immediately preceding business day) plus 1.00%) or the Adjusted LIBO Rate. The applicable margin for borrowings under the 2017 Credit Agreement is based on the Company’s most recently tested consolidated total net leverage ratio and will vary from (a) in the case of Eurodollar loans, 1.25% to 2.00%, and (b) in the case of ABR loans and swingline loans, 0.25% to 1.00%. The Company pays a commitment fee (based on the Company’s most recently tested consolidated total net leverage ratio) ranging from 0.15% to 0.30% on the unused portion of the 2017 Credit Agreement.

Collateral and guarantees

The 2017 Credit Agreement is secured by collateral including (i) substantially all of the Company’s properties and assets, and the properties and assets of the Company’s direct and indirect domestic subsidiaries but excluding any patents, copyrights, patent applications or copyright applications or any trade secrets or software products and (ii) pledges of the equity interests in all present and future direct and indirect domestic subsidiaries (subject in each case to certain exceptions as provided for under the 2017 Credit Agreement). The Company’s direct and indirect domestic subsidiaries are guarantors of all the obligations under the 2017 Credit Agreement.

Debt covenants

The 2017 Credit Agreement requires the Company to maintain the following financial covenants:

•

Maximum Net Leverage Ratio: Commencing with the fiscal quarter ending December 31, 2017 and on the last day of each fiscal quarter thereafter, the Company on a consolidated basis will not permit the ratio of total indebtedness (net of unrestricted domestic cash in excess of $20.0 million) to EBITDA, as such terms are defined in the 2017 Credit Agreement, for the rolling four quarter period ending on such date to be greater than 3.00 to 1.00 as of the last day of any such fiscal quarter.

•

Consolidated Interest Coverage Ratio: Commencing with the fiscal quarter ending December 31, 2017 and on the last day of each fiscal quarter thereafter, the Company on a consolidated basis will not permit the ratio of (x) EBITDA to (y) cash Consolidated Interest Expense, as such terms are defined in the 2017 Credit Agreement, in each case for the rolling four quarter period ending on such date, to be less than 3.00 to 1.00 as of the last day of any such fiscal quarter.

At March 31, 2019 the Company was in compliance with all the financial covenants.

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets and operating lease obligations on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, current portion of long-term debt, and long-term debt on the consolidated balance sheets.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments under the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. At commencement date, the ROU asset also includes adjustments for lease prepayments, lease incentives received and the lessee's initial direct costs, if applicable. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rates are determined using rates specific to the term of the lease, economic environments where lease activity is concentrated, value of lease portfolio, and assuming full collateralization of the loans. Subsequent to the commencement date, the operating ROU asset is equal to the remeasured lease liability adjusted for cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, unamortized lease incentives, unamortized initial direct costs and any impairment of the ROU assets. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease cost for minimum lease payments is recognized on a straight-line basis over the lease term.

The Company has elected not to recognize a lease liability or ROU asset for short-term leases (leases with a term of twelve months or less). For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration, and account for the lease and non-lease components as a single lease component.

The Company’s operating leases consist of office facilities, office equipment and cars and the Company’s finance leases consist of office equipment and cars. The Company’s leases have remaining terms of less than one year to 8.7 years, some of which include one or more options to renew, with renewal terms up to six years and some of which include options to terminate the leases within the next four years.

The components of lease cost for the three months ended March 31, 2019, were as follows (in thousands):

Operating lease cost	$	3,424

Finance lease cost:
Amortization of ROU assets	$	121
Interest on lease liabilities	5
Total finance lease cost	$	126

Operating lease cost includes short-term leases and variable lease costs, which are immaterial. Rent cost related to operating leases for office facilities was $3.1 million and $2.3 million for the three months ended March 31, 2019 and 2018, respectively.

Supplemental balance sheet information related to lease liabilities at March 31, 2019, was as follows:

(in thousands, except lease term and discount rate)
Operating leases:
Operating lease ROU assets	$	29,892

Current portion of operating lease liabilities	$	9,464
Operating lease liabilities, net of current portion		21,744
Total operating lease liabilities	$	31,208

Weighted average remaining lease term	4.3 years
Weighted average discount rate		5.4	%

Finance leases:
Property and equipment	$	2,527
Accumulated depreciation		(998	)
Property and equipment, net	$	1,529

Current portion of long-term debt	$	402
Long-term debt, net of current portion	925
Total finance lease liabilities	$	1,327

Weighted average remaining lease term	3.3 years
Weighted average discount rate		3.5	%

Supplemental cash flow information related to leases for the three months ended March 31, 2019, was as follows (in thousands):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,709
Operating cash flows from finance leases	$	13
Financing cash flows from finance leases	$	94

ROU assets obtained in exchange for lease obligations:
Operating leases	$	5,062
Finance leases	$	488

Maturities of operating lease liabilities at March 31, 2019, were as follows (in thousands):

Year ending December 31,
2019 (excluding the three months ended March 31, 2019)	$	9,177
2020		9,783
2021		6,754
2022		4,679
2023		2,816
Thereafter		3,559
Total lease payments		36,768
Less: imputed interest		5,560
Total operating lease liabilities	$	31,208

Total obligations for finance leases, previously referred to as capital leases prior to the adoption of Topic 842 on January 1, 2019, were $0.8 million at December 31, 2018.

Other Liabilities

3 Months Ended

Mar. 31, 2019

Other Liabilities Disclosure [Abstract]

Other Liabilities

10.	Other liabilities

The following table provides the details of other accrued expenses and current liabilities (in thousands):

	March 31,		December 31,
	2019		2018
Income taxes payable	$	11,138	$	4,458
Accrued VAT		5,150		4,536
Accrued royalties		3,381		2,613
Accrued professional fees		2,595		3,165
Government grants		909		915
Defined contribution plan liabilities		786		1,376
Billings in excess of cost		578		1,504
Other current liabilities		7,373		8,998
Total	$	31,910	$	27,565

The following table provides details of other long-term liabilities (in thousands):

	March 31,		December 31,
	2019		2018
Pension and other post retirement liabilities	$	9,327	$	9,111
Deferred tax liabilities		7,636		7,736
Other liabilities		10,848		11,306
Total	$	27,811	$	28,153

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

11.	Fair value measurements

The accounting guidance for fair value, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The framework for measuring fair value consists of a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows:

Level 1 – Quoted prices in active markets for identical assets and liabilities at the measurement date;

Level 2 – Observable inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

An asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. Interest on the Company’s long-term debt is at a variable rate, and as such the debt obligation outstanding approximates fair value.

- 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

Stock-Based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

12.	Stock-based compensation

2001 stock-based compensation plans

Nonqualified stock option plan

In 2001, the Company established the Nonqualified Stock Option Plan (“NSO Plan”) under which 4,234,856 stock options with an exercise price of $0.000025 remain outstanding at March 31, 2019. The NSO Plan was terminated in 2003. Stock options under the NSO plan were immediately vested and have a contractual term of 35 years from the date of grant. The outstanding awards will continue to be governed by their existing terms under the NSO Plan. The NSO Plan is accounted for as an equity plan.

The following table summarizes the stock option activity under the NSO Plan for the period:

	Number of options			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value (in millions)
Outstanding at January 1, 2019		4,337,856		$	0.000025		18.0	$	119.6
Exercised		(103,000	)	$	0.000025
Forfeited		—			—
Outstanding and exercisable at March 31, 2019		4,234,856		$	0.000025		17.8		155.9

The total intrinsic value of the NSO Plan stock options exercised during the three months ended March 31, 2019, was $3.7 million.

Incentive and nonqualified stock-based plan

Also in 2001, the Company established the Incentive and Nonqualified Stock-based Plan (“ISO Plan”) which was terminated in 2011 and was authorized to issue nonqualified stock options (“NQSO”) and incentive stock options (“ISO”) covering 11,153,872 shares of Class A common stock. The NQSO grants could be issued at less than the fair market value at date of grant under the terms of the ISO Plan, while ISO grants were issued at a price equal to or greater than the fair market value at date of grant. Options generally vested over a two to three-year period. All options have a contractual term of ten years from the date of grant.

The following table summarizes the stock option activity under the 2001 stock-based compensation plans for the period:

	Number of options			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value (in millions)
Outstanding at January 1, 2019		532,220		$	0.65		1.4	$	14.3
Exercised		(175,505	)	$	0.64
Forfeited		—			—
Outstanding and exercisable at March 31, 2019		356,715		$	0.66		1.1	$	12.9

The total intrinsic value of the ISO Plan stock options exercised during the three months ended March 31, 2019, was $5.8 million.

2012 stock-based compensation plans

During 2012, the Company established the 2012 Incentive and Nonqualified Stock Option Plan (“2012 Plan”) which permits the issuance of 5,200,000 shares of Class A common stock for the grant of nonqualified stock options and incentive stock options for management, other employees, and board members of the Company. The options are issued at a price equal to or greater than fair market value at date of grant. All options have a contractual term of 10 years from date of grant.

The 2012 Plan is accounted for as an equity plan. For those options expected to vest, compensation expense is recognized on a straight-line basis over a four-year period, the total requisite service period of the awards. Total compensation cost related to nonvested awards not yet recognized as of March 31, 2019, totaled $0.7 million, and is expected to be recognized over a weighted average period of 1.8 years.

The following table summarizes the stock option activity under the 2012 Plan for the period:

	Number of options			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value (in millions)
Outstanding at January 1, 2019		1,541,165		$	4.12		6.9	$	36.2
Granted		—			—
Exercised		(118,779	)	$	3.49
Forfeited		(2,556	)	$	4.34
Outstanding at March 31, 2019		1,419,830		$	4.17
Exercisable at March 31, 2019		856,512		$	3.73		6.0	$	28.3

The total intrinsic value of the 2012 Plan stock options exercised during the three months ended March 31, 2019, was $3.7 million.

Other

In connection with the acquisition of Datawatch, all outstanding unvested Datawatch RSUs were converted into a right to receive cash (the “Replacement Awards”). The payment to the holders of unvested Datawatch RSUs will be payable on or after the date that such RSUs would have otherwise vested in accordance with its original terms.

The accounting treatment for the outstanding unvested Datawatch RSUs in the context of the business combination was to allocate the fair value of the RSUs at the date of consummation attributable to pre-combination service to the aggregate merger consideration. The difference between the fair value of the Replacement Awards and the amount allocable to pre-combination service was considered a post-combination expense to the Company after the consummation date.

The estimated post combination expense to the Company as a result of the business combination was approximately $3.4 million which will be recognized on a straight-line basis over the remaining service period that was stipulated in each holder’s original RSU agreement. The weighted average remaining service period is 2.0 years. Once the vesting conditions of the service period are met, Altair will cash-settle the Replacement Awards. The liability related to the Datawatch RSUs as of March 31, 2019 and December 31, 2018, was $0.9 million and $0.6 million, respectively, and is recorded in other accrued expenses and current liabilities.

2017 stock-based compensation plan

In 2017, the Company’s board of directors adopted the 2017 Equity Incentive Plan (“2017 Plan”), which was approved by the Company’s stockholders. The 2017 Plan provides for the grant of incentive stock options to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, other cash-based awards and other stock-based awards to the Company’s employees, directors and consultants and the Company’s parent, subsidiary, and affiliate corporations’ employees and consultants. The 2017 Plan has 8,104,971 authorized shares of the Company’s Class A common stock reserved for issuance.

The following table summarizes the restricted stock units, or RSUs, awarded under the 2017 Plan for the period:

	Number of RSUs
Outstanding at January 1, 2019		206,061
Granted		576,524
Vested		(14,039	)
Forfeited		(1,922	)
Outstanding at March 31, 2019		766,624

The weighted average grant date fair value of the RSUs was $37.21 and the RSUs generally vest in four equal annual installments. Total compensation cost related to nonvested awards not yet recognized as of March 31, 2019, totaled $25.8 million, and is expected to be recognized over a weighted average period of approximately four years.

Stock-based compensation expense

The stock-based compensation expense was recorded as follows (in thousands):

	Three Months Ended March 31,
	2019		2018
Cost of revenue – software	$	64	$	8
Research and development		358		47
Sales and marketing		462		41
General and administrative		328		120
Total stock-based compensation expense	$	1,212	$	216

Other Expense (Income), Net

3 Months Ended

Mar. 31, 2019

Other Income And Expenses [Abstract]

Other Expense (Income), Net

13.	Other expense (income), net

Other expense (income), net consists of the following (in thousands):

	Three Months Ended March 31,
	2019			2018
Foreign exchange loss (gain)	$	417		$	(797	)
Other		(27	)		(103	)
Other expense (income), net	$	390		$	(900	)

Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

14.	Income taxes

At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date income (loss) before income taxes. The income tax provision or benefit related to unusual or infrequent items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or income tax contingencies is recognized in the interim period in which the change occurs.

The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected income (loss) before income taxes for the year, projections of the proportion of income (and/or loss) earned and taxed in respective tax jurisdictions, including applicable foreign taxes withheld at the source, permanent and temporary differences, and the likelihood of the realizability of deferred tax assets generated in the current year. Jurisdictions with a projected loss for the year or a year-to-date loss for which no tax benefit can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the composition and timing of actual earnings compared to annual projections. The estimates used to compute the provision or benefit for income taxes may change as new events occur, additional information is obtained or the Company’s tax environment changes. To the extent that the expected annual effective income tax rate changes, the effect of the change on prior interim periods is included in the income tax provision in the period in which the change in estimate occurs.

The Company’s income tax expense and effective tax rate for the three months ended March 31, 2019 and 2018 were as follows (in thousands, except percentages):

	Three Months Ended March 31,
	2019			2018
Income tax expense	$	4,088		$	2,346
Effective tax rate		24	%		9	%

The tax rate is affected by the Company being a U.S. resident taxpayer, the tax rates in the U.S. and other jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction and the relative amount of losses or income for which no benefit or expense is recognized. The effective tax rate was impacted by the geographic income mix in 2019 as compared to 2018, primarily related to United States pre-tax income of $13.6 million for the three months ended March 31, 2019, for which tax expense was not recognized due to the valuation allowance, compared to United States pre-tax income of $18.0 million for the three months ended March 31, 2018, for which tax expense was not recognized due to the valuation allowance. Offsetting this increase in tax expense and effective tax rate in the quarter was a reversal of reserve adjustments recorded for uncertain tax positions of $1.1 million.

The Tax Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The impact of GILTI resulted in no incremental tax expense for the three months ended March 31, 2019, due to a full valuation allowance on U.S. net deferred tax assets.

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss

15.	Accumulated other comprehensive loss

The components of accumulated other comprehensive loss were as follows (in thousands):

	Foreign currency translation			Retirement related benefit plans			Total
Balance at January 1, 2019	$	(8,585	)	$	(2,467	)	$	(11,052	)
Other comprehensive income before reclassification		337			25			362
Amounts reclassified from accumulated other comprehensive loss	—				203			203
Tax effects		—			—			—
Other comprehensive income		337			228			565
Balance at March 31, 2019	$	(8,248	)	$	(2,239	)	$	(10,487	)

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

16.	Commitments and contingencies

Swedish Tax Litigation

The Swedish Tax Authorities, or STA, have assessed tax, penalties and interest in the amount of $6.6 million related to the acquisition of Panopticon AB by Datawatch, in 2013 for the years 2013, 2014 and 2015. The STA, upon auditing the acquisition transaction, reached a conclusion that post acquisition, certain assets were removed from Sweden, triggering the tax obligation. The STA is also of the opinion that some services related to product development provided to the new parent company in the U.S. were performed by Panopticon AB at a price below market price triggering tax obligations. Datawatch contested the findings by the STA throughout the audit process and is now contesting the STA position in the first level of administrative courts. An Administrative Court hearing has been set for May 16, 2019.

Other legal proceedings

From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. The Company has received, and may in the future continue to receive, claims from third parties asserting, among other things, infringement of their intellectual property rights. Future litigation may be necessary to defend the Company, its partners and its customers by determining the scope, enforceability and validity of third party proprietary rights, or to establish and enforce the Company’s proprietary rights. The results of any current or future litigation cannot be predicted with certainty and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Segment Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information

17.	Segment information

The Company defines its operating segments as components of its business where separate financial information is available and used by the chief operating decision maker (“CODM”) in deciding how to allocate resources to its segments and in assessing performance. The Company’s CODM is its Chief Executive Officer.

The Company has identified two reportable segments for financial reporting purposes: Software and Client Engineering Services, or “CES”. The primary measure of segment operating performance is Adjusted EBITDA, which is defined as net income (loss) adjusted for income tax expense (benefit), interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as determined by management. Adjusted EBITDA includes an allocation of corporate headquarters costs.

The Software reportable segment derives revenue from the sale and subscription of licenses for software products focused on the development and application of simulation, high performance computing, and data intelligence technology to synthesize and optimize designs, processes and decisions for improved business performance. The Software segment also derives revenue from software support, upgrades, training and consulting services focused on product design and development expertise, high performance computing, data intelligence, and analysis support throughout product lifecycles. To a much lesser extent, the Software segment also includes revenue from the sale of hardware products, primarily as a result of recent business acquisitions.

The Client Engineering Services reportable segment provides support to its customers with long-term ongoing product design and development expertise in its market segments of Solvers & Optimization, Modeling & Visualization, Industrial and Concept Design, and high-performance computing. The Company hires simulation specialists, industrial designers, design engineers, materials experts, development and test specialists, manufacturing engineers, data scientists and information technology specialists for placement at customer sites for specific customer-directed assignments.

The “All other” represents innovative services and products, including toggled^®, the Company’s LED lighting business. toggled^® is focused on developing and selling next-generation solid state lighting technology along with communication and control protocols based on intellectual property for the direct replacement of fluorescent light tubes with LED lamps. Other businesses combined within Other include our WEYV business, a consumer music and content service, and potential services and product concepts that are still in development stages.

Inter-segment sales are not significant for any period presented. The CODM does not review asset information by segment when assessing performance; therefore, no asset information is provided for reportable segments.

The following tables are in thousands:


Three Months Ended March 31, 2019	Software		CES		All other			Total
Revenue	$	113,063	$	12,050	$	2,746		$	127,859
Adjusted EBITDA	$	24,042	$	1,106	$	(1,164	)	$	23,984


Three Months Ended March 31, 2018	Software		CES		All other			Total
Revenue	$	99,142	$	12,080	$	2,035		$	113,257
Adjusted EBITDA	$	29,028	$	1,056	$	(534	)	$	29,550

	Three Months Ended March 31,
	2019			2018
Reconciliation of Adjusted EBITDA to U.S. GAAP Income before income taxes:
Adjusted EBITDA	$	23,984		$	29,550
Stock-based compensation expense		(1,212	)		(216	)
Interest expense		(270	)		(16	)
Interest income and other ⁽¹⁾		(201	)		1,255
Depreciation and amortization		(5,194	)		(3,543	)
Income before income taxes	$	17,107		$	27,030

⁽¹⁾

Includes an impairment charge for royalty contracts resulting in $0.2 million and $0.9 million of expense for the three months ended March 31, 2019 and 2018, respectively. Includes a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income for the three months ended March 31, 2018.

Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation

Adoption of ASC 606, Revenue from Contracts with Customers

The Company has concluded that all material transactions that have occurred that require disclosure or adjustments to the consolidated financial statements have been reported herein.

Reclassifications

Certain prior period amounts included in the 2018 consolidated statement of operations has been reclassified to conform to the current year presentation.

Use of Estimates

Use of estimates

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash

	March 31, 2019		December 31, 2018
Cash and cash equivalents	$	39,771	$	35,345
Restricted cash included in other long-term assets		361		340
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	40,132	$	35,685

Restricted cash represents amounts required for a contractual agreement with an insurer for the payment of potential health insurance claims, and term deposits for bank guarantees.

Inventory

Receivable for French R&D Credit

Receivable for French R&D credit

Mezzanine Equity

Mezzanine equity

Leases

Income Per Share

Income per share

	Three Months Ended March 31,
	2019		2018
Numerator:
Net income	$	13,019	$	24,684
Denominator:
Denominator for basic income per share— weighted average shares		70,786		63,638
Effect of dilutive securities, stock options and RSUs		5,934		8,752
Denominator for dilutive income per share		76,720		72,390
Net income per share attributable to common stockholders, basic	$	0.18	$	0.39
Net income per share attributable to common stockholders, diluted	$	0.17	$	0.34

Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet that sum to the total of the amounts reported in the consolidated statement of cash flows (in thousands):

	March 31, 2019		December 31, 2018
Cash and cash equivalents	$	39,771	$	35,345
Restricted cash included in other long-term assets		361		340
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	40,132	$	35,685

Computation of Numerators and Denominators Used in Basic and Diluted Income per Share Amounts

The following table sets forth the computation of the numerators and denominators used in the basic and diluted income per share amounts (in thousands, except per share data):

	Three Months Ended March 31,
	2019		2018
Numerator:
Net income	$	13,019	$	24,684
Denominator:
Denominator for basic income per share— weighted average shares		70,786		63,638
Effect of dilutive securities, stock options and RSUs		5,934		8,752
Denominator for dilutive income per share		76,720		72,390
Net income per share attributable to common stockholders, basic	$	0.18	$	0.39
Net income per share attributable to common stockholders, diluted	$	0.17	$	0.34

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Schedule of Disaggregation of Revenue

The Company disaggregates its software revenue by type of performance obligation and timing of revenue recognition as follows (in thousands):

	Three Months Ended March 31,
	2019		2018
Software revenue:
Term licenses	$	65,057	$	57,165
Perpetual licenses		11,564		9,770
Maintenance		22,752		20,828
Professional services and other		3,918		1,906
Total software revenue	$	103,291	$	89,669

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date

Fair value of consideration transferred	$	183,427
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash		8,278
Accounts receivable		10,384
Other assets		3,055
Property and equipment		980
Trade names		7,400
Developed technology (6-year life)		22,900
Customer relationships (10-year life)		16,700
Accounts payable and other liabilities		(5,041	)
Deferred revenue		(4,100	)
Other long-term liabilities		(8,362	)
Total net identifiable assets acquired and liabilities assumed		52,194
Goodwill ⁽¹⁾	$	131,233

(1)	Goodwill is primarily attributable to market synergies expected to arise after the acquisition and approximately $0.8 million is deductible for tax purposes. All goodwill is recorded in the Software segment.

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2019

Property Plant And Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consisted of the following (in thousands):

	March 31,		December 31,
	2019		2018
Land	$	7,994	$	7,994
Building and improvements		13,172		13,120
Computer equipment and software		35,189		34,582
Office furniture and equipment		8,201		7,958
Leasehold improvements		8,128		6,926
Right-of-use assets under finance leases		2,527		—
Total property and equipment		75,211		70,580
Less: accumulated depreciation and amortization		41,687		40,427
Property and equipment, net	$	33,524	$	30,153

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill Attributable to Software Reporting Segment

The changes in the carrying amount of goodwill, which is attributable to the Software reporting segment, were as follows (in thousands):

Balance at December 31, 2018	$	210,532
Effects of foreign currency translation and other		182
Balance at March 31, 2019	$	210,714

Schedule of Other Intangible Assets

A summary of other intangible assets is shown below (in thousands):

	March 31, 2019
	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Developed technology	4-6 years	$	56,281	$	17,912	$	38,369
Customer relationships	7-10 years		28,699		8,307		20,392
Other intangibles	10 years		212		56		156
Total definite-lived intangible assets			85,192		26,275		58,917
Indefinite-lived intangible assets:
Trade names			9,552				9,552
Total other intangible assets		$	94,744	$	26,275	$	68,469

	December 31, 2018
	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Developed technology	4-6 years	$	54,530	$	15,517	$	39,013
Customer relationships	7-10 years		28,422		7,309		21,113
Other intangibles	10 years		109		56		53
Total definite-lived intangible assets			83,061		22,882		60,179
Indefinite-lived intangible assets:
Trade names			9,657				9,657
Total other intangible assets		$	92,718	$	22,882	$	69,836

Debt (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Carrying Value of Debt

The carrying value of debt is as follows (in thousands):

	March 31,		December 31,
	2019		2018
Revolving credit facility	$	14,844	$	30,950
Obligations for finance leases		1,328		813
Other borrowings		50		75
Total debt		16,222		31,838
Less: unamortized debt issuance costs		83		90
Less: current portion of long-term debt		453		331
Long-term debt, net of current portion	$	15,686	$	31,417

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of Components of Lease Cost

The components of lease cost for the three months ended March 31, 2019, were as follows (in thousands):

Operating lease cost	$	3,424

Finance lease cost:
Amortization of ROU assets	$	121
Interest on lease liabilities	5
Total finance lease cost	$	126

Schedule of Supplemental Balance Sheet Information Related to Lease Liabilities

Supplemental balance sheet information related to lease liabilities at March 31, 2019, was as follows:

(in thousands, except lease term and discount rate)
Operating leases:
Operating lease ROU assets	$	29,892

Current portion of operating lease liabilities	$	9,464
Operating lease liabilities, net of current portion		21,744
Total operating lease liabilities	$	31,208

Weighted average remaining lease term	4.3 years
Weighted average discount rate		5.4	%

Finance leases:
Property and equipment	$	2,527
Accumulated depreciation		(998	)
Property and equipment, net	$	1,529

Current portion of long-term debt	$	402
Long-term debt, net of current portion	925
Total finance lease liabilities	$	1,327

Weighted average remaining lease term	3.3 years
Weighted average discount rate		3.5	%

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the three months ended March 31, 2019, was as follows (in thousands):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,709
Operating cash flows from finance leases	$	13
Financing cash flows from finance leases	$	94

ROU assets obtained in exchange for lease obligations:
Operating leases	$	5,062
Finance leases	$	488

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities at March 31, 2019, were as follows (in thousands):

Year ending December 31,
2019 (excluding the three months ended March 31, 2019)	$	9,177
2020		9,783
2021		6,754
2022		4,679
2023		2,816
Thereafter		3,559
Total lease payments		36,768
Less: imputed interest		5,560
Total operating lease liabilities	$	31,208

Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Other Liabilities Disclosure [Abstract]

Summary of Other Accrued Expenses and Current Liabilities

The following table provides the details of other accrued expenses and current liabilities (in thousands):

	March 31,		December 31,
	2019		2018
Income taxes payable	$	11,138	$	4,458
Accrued VAT		5,150		4,536
Accrued royalties		3,381		2,613
Accrued professional fees		2,595		3,165
Government grants		909		915
Defined contribution plan liabilities		786		1,376
Billings in excess of cost		578		1,504
Other current liabilities		7,373		8,998
Total	$	31,910	$	27,565

Summary of Other Long-term Liabilities

The following table provides details of other long-term liabilities (in thousands):

	March 31,		December 31,
	2019		2018
Pension and other post retirement liabilities	$	9,327	$	9,111
Deferred tax liabilities		7,636		7,736
Other liabilities		10,848		11,306
Total	$	27,811	$	28,153

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Restricted Stock Units Awarded

The following table summarizes the restricted stock units, or RSUs, awarded under the 2017 Plan for the period:

	Number of RSUs
Outstanding at January 1, 2019		206,061
Granted		576,524
Vested		(14,039	)
Forfeited		(1,922	)
Outstanding at March 31, 2019		766,624

Summary of Stock-Based Compensation

The stock-based compensation expense was recorded as follows (in thousands):

	Three Months Ended March 31,
	2019		2018
Cost of revenue – software	$	64	$	8
Research and development		358		47
Sales and marketing		462		41
General and administrative		328		120
Total stock-based compensation expense	$	1,212	$	216

NSO Plan [Member]

Summary of Stock Option Activity

The following table summarizes the stock option activity under the NSO Plan for the period:

	Number of options			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value (in millions)
Outstanding at January 1, 2019		4,337,856		$	0.000025		18.0	$	119.6
Exercised		(103,000	)	$	0.000025
Forfeited		—			—
Outstanding and exercisable at March 31, 2019		4,234,856		$	0.000025		17.8		155.9

ISO Plan [Member]

Summary of Stock Option Activity

The following table summarizes the stock option activity under the 2001 stock-based compensation plans for the period:

	Number of options			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value (in millions)
Outstanding at January 1, 2019		532,220		$	0.65		1.4	$	14.3
Exercised		(175,505	)	$	0.64
Forfeited		—			—
Outstanding and exercisable at March 31, 2019		356,715		$	0.66		1.1	$	12.9

2012 Plan [Member]

Summary of Stock Option Activity

The following table summarizes the stock option activity under the 2012 Plan for the period:

	Number of options			Weighted average exercise price per share		Weighted average remaining contractual term (years)		Aggregate intrinsic value (in millions)
Outstanding at January 1, 2019		1,541,165		$	4.12		6.9	$	36.2
Granted		—			—
Exercised		(118,779	)	$	3.49
Forfeited		(2,556	)	$	4.34
Outstanding at March 31, 2019		1,419,830		$	4.17
Exercisable at March 31, 2019		856,512		$	3.73		6.0	$	28.3

Other Expense(Income), Net (Tables)

3 Months Ended

Mar. 31, 2019

Other Income And Expenses [Abstract]

Schedule of Other Expense (Income), Net

Other expense (income), net consists of the following (in thousands):

	Three Months Ended March 31,
	2019			2018
Foreign exchange loss (gain)	$	417		$	(797	)
Other		(27	)		(103	)
Other expense (income), net	$	390		$	(900	)

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit) and Effective Tax Rate

The Company’s income tax expense and effective tax rate for the three months ended March 31, 2019 and 2018 were as follows (in thousands, except percentages):

	Three Months Ended March 31,
	2019			2018
Income tax expense	$	4,088		$	2,346
Effective tax rate		24	%		9	%

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows (in thousands):

	Foreign currency translation			Retirement related benefit plans			Total
Balance at January 1, 2019	$	(8,585	)	$	(2,467	)	$	(11,052	)
Other comprehensive income before reclassification		337			25			362
Amounts reclassified from accumulated other comprehensive loss	—				203			203
Tax effects		—			—			—
Other comprehensive income		337			228			565
Balance at March 31, 2019	$	(8,248	)	$	(2,239	)	$	(10,487	)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

The following tables are in thousands:


Three Months Ended March 31, 2019	Software		CES		All other			Total
Revenue	$	113,063	$	12,050	$	2,746		$	127,859
Adjusted EBITDA	$	24,042	$	1,106	$	(1,164	)	$	23,984


Three Months Ended March 31, 2018	Software		CES		All other			Total
Revenue	$	99,142	$	12,080	$	2,035		$	113,257
Adjusted EBITDA	$	29,028	$	1,056	$	(534	)	$	29,550

Reconciliation of U.S. GAAP Income Before Income Taxes to Adjusted EBITDA

	Three Months Ended March 31,
	2019			2018
Reconciliation of Adjusted EBITDA to U.S. GAAP Income before income taxes:
Adjusted EBITDA	$	23,984		$	29,550
Stock-based compensation expense		(1,212	)		(216	)
Interest expense		(270	)		(16	)
Interest income and other ⁽¹⁾		(201	)		1,255
Depreciation and amortization		(5,194	)		(3,543	)
Income before income taxes	$	17,107		$	27,030

⁽¹⁾

Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2018
Accounting Policies [Line Items]
Cumulative effect on accumulated deficit, before tax	$ 84.6
Cumulative effect on accumulated deficit, net of tax	$ 70.8
Anti-dilutive shares excluded from computation of income per share	0	0
Class A Common Stock [Member] \| Put Option [Member]
Accounting Policies [Line Items]
Shares issued			200,000
Put right, exercise price			$ 12.50
Put right exercise period from date of purchase			5 years
Ministry of the Economy, Finance and Industry, France [Member] \| Research and Development Tax Credit Carryforward [Member]
Accounting Policies [Line Items]
Tax credit carryforward, period	3 years
Tax credit carryforward	$ 11.1			$ 11.7
Income tax receivable [Member] \| Ministry of the Economy, Finance and Industry, France [Member] \| Research and Development Tax Credit Carryforward [Member]
Accounting Policies [Line Items]
Tax credit carryforward	1.4			2.6
Other long-term assets [Member] \| Ministry of the Economy, Finance and Industry, France [Member] \| Research and Development Tax Credit Carryforward [Member]
Accounting Policies [Line Items]
Tax credit carryforward	$ 9.7			$ 9.1

Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 39,771	$ 35,345
Restricted cash included in other long-term assets	361	340
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 40,132	$ 35,685	$ 63,554	$ 39,578

Accounting Policies - Computation of Numerators and Denominators Used in Basic and Diluted Income per Share Amounts (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income	$ 13,019	$ 24,684
Denominator:
Denominator for basic income per share— weighted average shares	70,786	63,638
Effect of dilutive securities, stock options and RSUs	5,934	8,752
Denominator for dilutive income per share	76,720	72,390
Net income per share attributable to common stockholders, basic	$ 0.18	$ 0.39
Net income per share attributable to common stockholders, diluted	$ 0.17	$ 0.34

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

- Definition

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

+ References + Details

Recent Accounting Guidance - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease liabilities	$ 31,208
Operating lease ROU assets	$ 29,892
ASU 2016-02 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease liabilities		$ 30,100
Operating lease ROU assets		$ 29,100

Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation Of Revenue [Line Items]
Total revenue	$ 127,859	$ 113,257
Perpetual Licenses
Disaggregation Of Revenue [Line Items]
Total revenue	11,564	9,770
Software [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	103,291	89,669
Term Licenses [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	65,057	57,165
Maintenance [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	22,752	20,828
Professional Services and Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 3,918	$ 1,906

Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenue From Contracts With Customers [Line Items]
Percentage of net revenues through indirect channels	10.00%	10.00%
Total revenue	$ 127,859	$ 113,257
Capitalized contract cost, amortization period	4 years
Capitalized contract cost, amortization method	straight-line basis
Deferred revenue, revenue recognized	$ 30,400
Sales and Marketing Expense [Member]
Revenue From Contracts With Customers [Line Items]
Capitalized contract cost, amortization expense	1,000	900
Prepaid and Other Current Assets [Member]
Revenue From Contracts With Customers [Line Items]
Capitalized contract cost net, current	2,200		$ 2,000
Other long-term assets [Member]
Revenue From Contracts With Customers [Line Items]
Capitalized contract cost net, noncurrent	500		200
Accounts Receivable [Member]
Revenue From Contracts With Customers [Line Items]
Contract assets	5,900		$ 3,700
Software Related Services [Member]
Revenue From Contracts With Customers [Line Items]
Total revenue	9,772	9,473
Client Engineering Services [Member]
Revenue From Contracts With Customers [Line Items]
Total revenue	12,050	12,080
Other [Member]
Revenue From Contracts With Customers [Line Items]
Total revenue	$ 2,700	$ 2,000

Acquisitions - Additional Information (Detail) - USD ($)			3 Months Ended
	Nov. 05, 2018	Oct. 31, 2018	Mar. 31, 2019
Datawatch Corporation [Member]
Business Acquisition [Line Items]
Business acquisition purchase price	$ 13.10		$ 13.10
Business acquisition, consideration			$ 183,400,000
Business combination, consideration transferred value			168,200,000
Business combination, consideration transferred, liabilities incurred			500,000
Business combination, consideration transferred for outstanding equity awards			6,700,000
Payments of outstanding debt			8,000,000
Fair value of consideration transferred	$ 183,427,000
Fair value of assets acquired and liabilities assumed	$ 52,194,000
SIMSOLID Corporation [Member]
Business Acquisition [Line Items]
Fair value of consideration transferred		$ 22,100,000
Fair value of assets acquired and liabilities assumed			$ 0

Acquisitions - Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date (Detail) - USD ($) $ in Thousands	Nov. 05, 2018	Mar. 31, 2019	Dec. 31, 2018
Recognized amounts of identifiable assets acquired and liabilities assumed:
Goodwill		$ 210,714	$ 210,532
Datawatch Corporation [Member]
Business Acquisition [Line Items]
Fair value of consideration transferred	$ 183,427
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash	8,278
Accounts receivable	10,384
Other assets	3,055
Property and equipment	980
Accounts payable and other liabilities	(5,041)
Deferred revenue	(4,100)
Other long-term liabilities	(8,362)
Total net identifiable assets acquired and liabilities assumed	52,194
Goodwill	131,233
Datawatch Corporation [Member] \| Trade Names [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed:
Indefinite-lived intangibles	7,400
Datawatch Corporation [Member] \| Developed Technology [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed:
Finite-lived intangibles	22,900
Datawatch Corporation [Member] \| Customer Relationships [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed:
Finite-lived intangibles	$ 16,700

Acquisitions - Summary of Amounts of Identified Assets Acquired and Liabilities Assumed at the Acquisition Date (Parenthetical) (Detail) - Datawatch Corporation [Member] $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Software [Member]
Business Acquisition [Line Items]
Goodwill deductible for tax purposes	$ 0.8
Developed Technology [Member]
Business Acquisition [Line Items]
Weighted-average useful life of acquired finite-lived intangible assets	6 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Weighted-average useful life of acquired finite-lived intangible assets	10 years

Property and Equipment, Net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 75,211	$ 70,580
Less: accumulated depreciation and amortization	41,687	40,427
Property and equipment, net	33,524	30,153
Land [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	7,994	7,994
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	13,172	13,120
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	35,189	34,582
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	8,201	7,958
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	8,128	$ 6,926
Right-of-Use Assets Under Finance Leases [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,527

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Depreciation expense, including amortization of right-of-use assets under finance leases	$ 1.7	$ 1.6

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill Attributable to Software Reporting Segment (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Beginning Balance	$ 210,532
Effects of foreign currency translation and other	182
Ending Balance	$ 210,714

Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Summary Of Other Intangible Assets [Line Items]
Gross carrying amount	$ 85,192	$ 83,061
Accumulated amortization	26,275	22,882
Net carrying amount	58,917	60,179
Gross carrying amount	94,744	92,718
Accumulated amortization	26,275	22,882
Net carrying amount	68,469	69,836
Developed Technology [Member]
Summary Of Other Intangible Assets [Line Items]
Gross carrying amount	56,281	54,530
Accumulated amortization	17,912	15,517
Net carrying amount	$ 38,369	$ 39,013
Developed Technology [Member] \| Minimum [Member]
Summary Of Other Intangible Assets [Line Items]
Weighted-average useful life of acquired finite-lived intangible assets	4 years	4 years
Developed Technology [Member] \| Maximum [Member]
Summary Of Other Intangible Assets [Line Items]
Weighted-average useful life of acquired finite-lived intangible assets	6 years	6 years
Customer Relationships
Summary Of Other Intangible Assets [Line Items]
Gross carrying amount	$ 28,699	$ 28,422
Accumulated amortization	8,307	7,309
Net carrying amount	$ 20,392	$ 21,113
Customer Relationships \| Minimum [Member]
Summary Of Other Intangible Assets [Line Items]
Weighted-average useful life of acquired finite-lived intangible assets	7 years	7 years
Customer Relationships \| Maximum [Member]
Summary Of Other Intangible Assets [Line Items]
Weighted-average useful life of acquired finite-lived intangible assets	10 years	10 years
Other Intangibles [Member]
Summary Of Other Intangible Assets [Line Items]
Weighted-average useful life of acquired finite-lived intangible assets	10 years	10 years
Gross carrying amount	$ 212	$ 109
Accumulated amortization	56	56
Net carrying amount	156	53
Trade Names
Summary Of Other Intangible Assets [Line Items]
Net carrying amount	$ 9,552	$ 9,657

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 3,528	$ 1,940

Debt - Schedule of Carrying Value of Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total debt	$ 16,222	$ 31,838
Less: unamortized debt issuance costs	83	90
Current portion of long-term debt	453	331
Long-term debt, net of current portion	15,686	31,417
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total debt	14,844	30,950
Obligations for Finance Leases [Member]
Debt Instrument [Line Items]
Total debt	1,328	813
Other Borrowings [Member]
Debt Instrument [Line Items]
Total debt	$ 50	$ 75

Debt - Additional Information (Detail) - USD ($)		3 Months Ended
Debt - Additional Information (Detail) - USD ($)	Oct. 18, 2017	Mar. 31, 2019	Oct. 31, 2018
2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Aggregate commitment amount under credit facility	$ 150,000,000
Maturity date	Oct. 18, 2022
Increase in line of credit borrowing capacity			$ 50,000,000
Increase in unrestricted domestic cash	$ 20,000,000
Maximum leverage ratio	3.00%
2017 Credit Agreement [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Commitment fees on unused portion of the Revolving Credit Facility		0.15%
EBITDA to cash Consolidated Interest Expense ratio	3.00%
2017 Credit Agreement [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Commitment fees on unused portion of the Revolving Credit Facility		0.30%
2017 Credit Agreement [Member] \| Federal Funds Effective Swap Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
2017 Credit Agreement [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
2017 Credit Agreement [Member] \| Swingline Loans [Member]
Debt Instrument [Line Items]
Aggregate commitment amount under credit facility	$ 5,000,000
2017 Credit Agreement [Member] \| Swingline Loans [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Applicable margin for borrowings under new credit facility	0.25%
2017 Credit Agreement [Member] \| Swingline Loans [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Applicable margin for borrowings under new credit facility	1.00%
2017 Credit Agreement [Member] \| Eurodollar Loans [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Applicable margin for borrowings under new credit facility	1.25%
2017 Credit Agreement [Member] \| Eurodollar Loans [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Applicable margin for borrowings under new credit facility	2.00%
2017 Credit Agreement [Member] \| APR Loans [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Applicable margin for borrowings under new credit facility	0.25%
2017 Credit Agreement [Member] \| APR Loans [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Applicable margin for borrowings under new credit facility	1.00%
2017 Credit Agreement [Member] \| Letter of Credit [Member]
Debt Instrument [Line Items]
Aggregate commitment amount under credit facility	$ 5,000,000
Secured Credit Agreement
Debt Instrument [Line Items]
Loan outstanding		$ 14,800,000
Amount available for future borrowing		$ 135,200,000

Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Lessee Lease Description [Line Items]
Rent cost for operating leases	$ 3,100	$ 2,300
Finance lease obligations, total	$ 1,327
Adoption of Topic 842 [Member]
Lessee Lease Description [Line Items]
Finance lease obligations, total			$ 800
Minimum [Member]
Lessee Lease Description [Line Items]
Leases, remaining lease term	0 years
Maximum [Member]
Lessee Lease Description [Line Items]
Leases, remaining lease term	8 years 8 months 12 days
Operating leases, options to extend lease term	6 years
Leases, options to terminate leases	4 years

Leases - Schedule of Components of Lease Cost (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 3,424
Finance lease cost:
Amortization of ROU assets	121
Interest on lease liabilities	5
Total finance lease cost	$ 126

Leases - Schedule of Supplemental Balance Sheet Information Related to Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2019 USD ($)
Operating leases:
Operating lease ROU assets	$ 29,892
Current portion of operating lease liabilities	9,464
Operating lease liabilities, net of current portion	21,744
Total operating lease liabilities	$ 31,208
Weighted average remaining lease term	4 years 3 months 18 days
Weighted average discount rate	5.40%
Finance leases:
Property and equipment	$ 2,527
Accumulated depreciation	(998)
Property and equipment, net	$ 1,529
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet
Current portion of long-term debt	$ 402
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent
Long-term debt, net of current portion	$ 925
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtAndCapitalLeaseObligations
Total finance lease liabilities	$ 1,327
Weighted average remaining lease term	3 years 3 months 18 days
Weighted average discount rate	3.50%

Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,709
Operating cash flows from finance leases	13
Financing cash flows from finance leases	94
ROU assets obtained in exchange for lease obligations:
Operating leases	5,062
Finance leases	$ 488

Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
2019 (excluding the three months ended March 31, 2019)	$ 9,177
2020	9,783
2021	6,754
2022	4,679
2023	2,816
Thereafter	3,559
Total lease payments	36,768
Less: imputed interest	5,560
Total operating lease liabilities	$ 31,208

Other Liabilities - Summary of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Income taxes payable	$ 11,138	$ 4,458
Accrued VAT	5,150	4,536
Accrued royalties	3,381	2,613
Accrued professional fees	2,595	3,165
Government grants	909	915
Defined contribution plan liabilities	786	1,376
Billings in excess of cost	578	1,504
Other current liabilities	7,373	8,998
Total	$ 31,910	$ 27,565

Other Liabilities - Summary of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Pension and other post retirement liabilities	$ 9,327	$ 9,111
Deferred tax liabilities	7,636	7,736
Other liabilities	10,848	11,306
Total	$ 27,811	$ 28,153

Stock-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) Installment $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Sep. 27, 2017 shares	Dec. 31, 2012 shares	Dec. 31, 2001 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other accrued expenses and current liabilities	$ 31,910	$ 27,565
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Business combination, estimated post combination expense	$ 3,400
Weighted average remaining service period	2 years
Other accrued expenses and current liabilities	$ 900	$ 600
NSO Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, outstanding \| shares	4,234,856	4,337,856
Exercise price stock options outstanding \| $ / shares	$ 0.000025	$ 0.000025
Contractual term	35 years
Intrinsic value of options exercised	$ 3,700
ISO Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, outstanding \| shares		532,220
Exercise price stock options outstanding \| $ / shares		$ 0.65
Contractual term	10 years
Intrinsic value of options exercised	$ 5,800
ISO Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period	2 years
ISO Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period	3 years
ISO Plan [Member] \| Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized \| shares					11,153,872
2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, outstanding \| shares	1,419,830	1,541,165
Exercise price stock options outstanding \| $ / shares	$ 4.17	$ 4.12
Contractual term	10 years
Intrinsic value of options exercised	$ 3,700
Total requisite service period of awards	4 years
Compensation cost related to nonvested awards not yet recognized	$ 700
Weighted average period of recognition	1 year 9 months 18 days
2012 Plan [Member] \| Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized \| shares				5,200,000
2017 Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost related to nonvested awards not yet recognized	$ 25,800
Weighted average period of recognition	4 years
Weighted average grant date fair value of RSUs \| $ / shares	$ 37.21
Number of vesting equal annual installments \| Installment	4
2017 Plan [Member] \| Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance \| shares			8,104,971

Stock-based Compensation - Summary of Stock Option Activity under NSO Plan (Detail) - NSO Plan [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options, Outstanding, Beginning Balance	4,337,856
Number of options, Exercised	(103,000)
Number of options, Forfeited	0
Number of options, Outstanding and exercisable, Ending Balance	4,234,856
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted average exercise price per share, Outstanding, Beginning Balance	$ 0.000025
Weighted average exercise price per share, Exercised	0.000025
Weighted average exercise price per share, Forfeited	0
Weighted average exercise price per share, Outstanding and exercisable, Ending Balance	$ 0.000025
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (years), Outstanding		18 years
Weighted average remaining contractual term (years), Outstanding and exercisable	17 years 9 months 18 days
Aggregate intrinsic value, Outstanding		$ 119.6
Aggregate intrinsic value, Outstanding and exercisable	$ 155.9

Stock-based Compensation - Summary of Stock Option Activity under ISO Plan (Detail) - ISO Plan [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options, Outstanding, Beginning Balance	532,220
Number of options, Exercised	(175,505)
Number of options, Forfeited	0
Number of options, Outstanding and exercisable, Ending Balance	356,715
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted average exercise price per share, Outstanding, Beginning Balance	$ 0.65
Weighted average exercise price per share, Exercised	0.64
Weighted average exercise price per share, Forfeited	0
Weighted average exercise price per share, Outstanding and exercisable, Ending Balance	$ 0.66
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (years), Outstanding		1 year 4 months 24 days
Weighted average remaining contractual term (years), Outstanding and exercisable	1 year 1 month 6 days
Aggregate intrinsic value, Outstanding		$ 14.3
Aggregate intrinsic value, Outstanding and exercisable	$ 12.9

Stock-based Compensation - Summary of Stock Option Activity under 2012 Plan (Detail) - 2012 Plan [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options, Outstanding, Beginning Balance	1,541,165
Number of options, Granted	0
Number of options, Exercised	(118,779)
Number of options, Forfeited	(2,556)
Number of options, Outstanding, Ending Balance	1,419,830	1,541,165
Number of options, Exercisable	856,512
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted average exercise price per share, Outstanding, Beginning Balance	$ 4.12
Weighted average exercise price per share, Granted	0
Weighted average exercise price per share, Exercised	3.49
Weighted average exercise price per share, Forfeited	4.34
Weighted average exercise price per share, Outstanding, Ending Balance	4.17	$ 4.12
Weighted average exercise price per share, Exercisable	$ 3.73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (years), Outstanding		6 years 10 months 24 days
Weighted average remaining contractual term (years), Exercisable	6 years
Aggregate intrinsic value, Outstanding		$ 36.2
Aggregate intrinsic value, Exercisable	$ 28.3

Stock-based Compensation - Summary of Restricted Stock Units Awarded (Detail) - 2017 Plan [Member] - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of RSUs, Outstanding Beginning Balance	206,061
Number of RSUs, Granted	576,524
Number of RSUs, Vested	(14,039)
Number of RSUs, Forfeited	(1,922)
Number of RSUs, Outstanding Ending Balance	766,624

Stock-based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 1,212	$ 216
Cost of Revenue - Software [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	64	8
Research and development [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	358	47
Sales and marketing [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	462	41
General and administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 328	$ 120

Other Expense (Income), Net - Schedule of Other Expense (Income), Net (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Income And Expenses [Abstract]
Foreign exchange loss (gain)	$ 417	$ (797)
Other	(27)	(103)
Other expense (income), net	$ 390	$ (900)

Income Taxes - Schedule of Income Tax Expense (Benefit) and Effective Tax Rate (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 4,088	$ 2,346
Effective tax rate	24.00%	9.00%

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
United States pre-tax income (loss)	$ 13.6	$ 18.0
Reversal of reserve adjustments recorded for uncertain tax positions	$ 1.1

Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 286,782	$ 60,591
Other comprehensive income before reclassification	362
Amounts reclassified from accumulated other comprehensive loss	203
Total other comprehensive income	565	1,243
Ending balance	301,693	157,718
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(8,585)
Other comprehensive income before reclassification	337
Total other comprehensive income	337
Ending balance	(8,248)
Retirement Related Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(2,467)
Other comprehensive income before reclassification	25
Amounts reclassified from accumulated other comprehensive loss	203
Total other comprehensive income	228
Ending balance	(2,239)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(11,052)	(5,072)
Ending balance	$ (10,487)	$ (3,829)

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Dec. 31, 2013 USD ($)
Datawatch Corporation [Member] \| Panopticon AB [Member] \| Swedish Tax Authorities [Member]
Loss Contingencies [Line Items]
Tax assessment, penalties and interest amount related to acquisition	$ 6.6

Segment Information - Additional Information (Detail)	3 Months Ended
Segment Information - Additional Information (Detail)	Mar. 31, 2019 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Revenue	$ 127,859	$ 113,257
Adjusted EBITDA	23,984	29,550
Software [Member]
Segment Reporting Information [Line Items]
Revenue	113,063	99,142
Adjusted EBITDA	24,042	29,028
CES [Member]
Segment Reporting Information [Line Items]
Revenue	12,050	12,080
Adjusted EBITDA	1,106	1,056
All Other [Member]
Segment Reporting Information [Line Items]
Revenue	2,746	2,035
Adjusted EBITDA	$ (1,164)	$ (534)

Segment Information - Reconciliation of U.S. GAAP Income Before Income Taxes to Adjusted EBITDA (Detail) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Segment Reporting [Abstract]

Adjusted EBITDA

$ 23,984

$ 29,550

Stock-based compensation expense

(1,212)

(216)

Interest expense

(270)

(16)

Interest income and other

^[1]

(201)

1,255

Depreciation and amortization

(5,194)

(3,543)

Income before income taxes

$ 17,107

$ 27,030

[1]

Segment Information - Reconciliation of U.S. Gaap Income Before Income Taxes to Adjusted EBITDA (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting [Abstract]
Impairment charge recognized in non-recurring adjustment for royalty contracts	$ 0.2	$ 0.9
Income recognized in non-recurring adjustment for change in estimated legal expenses		$ 2.0