Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2020 | May 15, 2020 | Sep. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-21783 | ||
Entity Registrant Name | 8x8, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0142404 | ||
Entity Address, Address Line One | 675 Creekside Way | ||
Entity Address, City or Town | Campbell | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95008 | ||
City Area Code | 408 | ||
Local Phone Number | 727-1885 | ||
Title of 12(b) Security | COMMON STOCK, PAR VALUE $.001 PER SHARE | ||
Trading Symbol | EGHT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.6 | ||
Entity Common Stock, Shares Outstanding | 103,642,454 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Items 10, 11, 12, 13 and 14 of Part III incorporate information by reference from the Proxy Statement to be filed within 120 days of March 31, 2020 for the 2020 Annual Meeting of Stockholders. | ||
Entity Central Index Key | 0001023731 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 137,394 | $ 276,583 |
Restricted cash, current | 10,376 | 0 |
Short-term investments | 33,458 | 69,899 |
Accounts receivable, net | 37,811 | 20,181 |
Deferred sales commission costs, current | 22,444 | 15,601 |
Other current assets | 35,679 | 15,127 |
Total current assets | 277,162 | 397,391 |
Property and equipment, net | 94,382 | 52,835 |
Operating lease, right-of-use assets | 78,963 | |
Intangible assets, net | 24,001 | 11,680 |
Goodwill | 128,300 | 39,694 |
Restricted cash, non-current | 8,641 | 8,100 |
Long-term investments | 16,083 | 0 |
Deferred sales commission costs, non-current | 53,307 | 33,693 |
Other assets | 19,802 | 2,965 |
Total assets | 700,641 | 546,358 |
Current liabilities: | ||
Accounts payable | 40,261 | 32,280 |
Accrued compensation | 22,656 | 18,437 |
Accrued taxes | 10,251 | 13,862 |
Operating lease liabilities, current | 5,875 | |
Deferred revenue | 7,105 | 3,336 |
Other accrued liabilities | 37,277 | 6,790 |
Total current liabilities | 123,425 | 74,705 |
Operating lease liabilities, non-current | 92,452 | |
Convertible senior notes, net | 291,537 | 216,035 |
Other liabilities, non-current | 2,496 | 6,228 |
Total liabilities | 509,910 | 296,968 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, Authorized: 5,000,000 shares Issued and outstanding: none at March 31, 2020 and 2019 | 0 | 0 |
Common stock, $0.001 par value, Authorized: 200,000,000 shares Issued and outstanding: 103,178,621 shares and 96,119,888 shares at March 31, 2020 and 2019, respectively | 103 | 96 |
Additional paid-in capital | 625,474 | 506,949 |
Accumulated other comprehensive loss | (12,176) | (7,353) |
Accumulated deficit | (422,670) | (250,302) |
Total stockholders' equity | 190,731 | 249,390 |
Total liabilities and stockholders' equity | $ 700,641 | $ 546,358 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Mar. 31, 2019 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 103,178,621 | 96,119,888 |
Common stock, shares outstanding (in shares) | 103,178,621 | 96,119,888 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Total revenue | $ 446,237 | $ 352,586 | $ 296,500 |
Operating expenses: | |||
Research and development | 77,790 | 62,063 | 36,405 |
Sales and marketing | 240,013 | 177,976 | 133,945 |
General and administrative | 87,025 | 72,208 | 51,851 |
Impairment of goodwill, intangible assets and equipment | 0 | 0 | 9,469 |
Total operating expenses | 606,056 | 442,219 | 338,396 |
Loss from operations | (159,819) | (89,633) | (41,896) |
Other income (expense), net | (11,717) | 1,463 | 3,693 |
Loss before provision for income taxes | (171,536) | (88,170) | (38,203) |
Provision for income taxes | 832 | 569 | 66,294 |
Net loss | $ (172,368) | $ (88,739) | $ (104,497) |
Net loss per share: | |||
Basic and diluted (in dollars per share) | $ (1.72) | $ (0.94) | $ (1.14) |
Weighted average number of shares: | |||
Basic and diluted (in shares) | 99,999 | 94,533 | 92,017 |
Service revenue | |||
Total revenue | $ 414,078 | $ 325,305 | $ 275,767 |
Operating expenses: | |||
Cost of revenue | 145,013 | 86,122 | 69,266 |
Other revenue | |||
Total revenue | 32,159 | 27,281 | 20,733 |
Operating expenses: | |||
Cost of revenue | $ 56,215 | $ 43,850 | $ 37,460 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (172,368) | $ (88,739) | $ (104,497) |
Other comprehensive income (loss), net of tax | |||
Unrealized gains (losses) on investments | (203) | 473 | (259) |
Foreign currency translation adjustment | (4,620) | (2,181) | 4,256 |
Comprehensive loss | $ (177,191) | $ (90,447) | $ (100,500) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Mar. 31, 2017 | 91,500,091 | ||||
Beginning balance at Mar. 31, 2017 | $ 288,601 | $ 91 | $ 412,762 | $ (9,642) | $ (114,610) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans, less withholding (in shares) | 2,709,990 | ||||
Issuance of common stock under stock plans, less withholding | 2,182 | $ 3 | 2,179 | ||
Repurchases of common stock (in shares) | (1,362,727) | ||||
Repurchases of common stock | (17,934) | $ (1) | (17,933) | ||
Stock-based compensation expense | 28,782 | 28,782 | |||
Unrealized investment gain (loss) | (259) | (259) | |||
Foreign currency translation adjustment | 4,256 | 4,256 | |||
Net loss | (104,497) | (104,497) | |||
Ending balance (in shares) at Mar. 31, 2018 | 92,847,354 | ||||
Ending balance at Mar. 31, 2018 | 218,774 | $ 93 | 425,790 | (5,645) | (201,464) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans, less withholding (in shares) | 3,272,534 | ||||
Issuance of common stock under stock plans, less withholding | 4,486 | $ 3 | 4,483 | ||
Stock-based compensation expense | 45,548 | 45,548 | |||
Unrealized investment gain (loss) | 473 | 473 | |||
Foreign currency translation adjustment | (2,181) | (2,181) | |||
Equity component of convertible senior notes, net of issuance costs | 31,128 | 31,128 | |||
Net loss | (88,739) | (88,739) | |||
Ending balance (in shares) at Mar. 31, 2019 | 96,119,888 | ||||
Ending balance at Mar. 31, 2019 | 249,390 | $ 96 | 506,949 | (7,353) | (250,302) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans, less withholding (in shares) | 4,452,267 | ||||
Issuance of common stock under stock plans, less withholding | 7,777 | $ 4 | 7,773 | ||
Issuance of common stock related to acquisition (in shares) | 2,606,466 | ||||
Issuance of common stock related to acquisition | 35,840 | $ 3 | 35,837 | ||
Stock-based compensation expense | 71,821 | 71,821 | |||
Unrealized investment gain (loss) | (203) | (203) | |||
Foreign currency translation adjustment | (4,620) | (4,620) | |||
Equity component of convertible senior notes, net of issuance costs | 3,094 | 3,094 | |||
Net loss | (172,368) | (172,368) | |||
Ending balance (in shares) at Mar. 31, 2020 | 103,178,621 | ||||
Ending balance at Mar. 31, 2020 | $ 190,731 | $ 103 | $ 625,474 | $ (12,176) | $ (422,670) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (172,368) | $ (88,739) | $ (104,497) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation | 9,360 | 8,748 | 8,171 |
Amortization of intangibles | 8,842 | 6,175 | 5,033 |
Impairment of goodwill and long-lived assets | 0 | 0 | 9,469 |
Amortization of capitalized software | 19,025 | 9,748 | 2,513 |
Amortization of debt discount and issuance costs | 14,045 | 1,355 | 0 |
Amortization of deferred sales commission costs | 19,541 | 14,204 | 0 |
Provision for doubtful accounts | 3,479 | 1,115 | 839 |
Operating lease expense, net of accretion | 14,971 | ||
Non-cash lease expense | 0 | 4,802 | 0 |
Stock-based compensation expense | 70,878 | 44,508 | 29,176 |
Deferred income tax expense | 0 | 0 | 66,273 |
Gain on escrow settlement | 0 | 0 | (1,393) |
Other | 3,522 | 178 | (162) |
Changes in assets and liabilities: | |||
Accounts receivable | (12,737) | (5,393) | (2,402) |
Deferred sales commission costs | (46,421) | (25,286) | 0 |
Other current and non-current assets | (33,137) | (4,337) | (3,149) |
Accounts payable and accruals | 2,159 | 17,252 | 11,860 |
Deferred revenue | 4,936 | 802 | 310 |
Net cash (used in) provided by operating activities | (93,905) | (14,868) | 22,041 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (35,834) | (9,096) | (9,178) |
Cost of capitalized software | (31,573) | (25,622) | (12,486) |
Proceeds from escrow settlement | 0 | 0 | 1,393 |
Purchases of investments | (42,223) | (54,127) | (115,224) |
Sales of investments | 36,515 | 54,642 | 27,841 |
Proceeds from maturities of investments | 25,950 | 50,700 | 100,382 |
Acquisition of businesses, net of cash acquired | (59,129) | (5,625) | 0 |
Net cash (used in) provided by investing activities | (106,294) | 10,872 | (7,272) |
Cash flows from financing activities: | |||
Finance lease payments | (315) | ||
Finance lease payments | (949) | (1,079) | |
Payment of contingent consideration | 0 | 0 | (150) |
Repurchase of common stock, including for withholding taxes | (6,550) | (7,823) | (22,440) |
Proceeds from issuance of common stock under employee stock plans | 14,330 | 12,202 | 7,229 |
Purchases of capped calls | (9,288) | (33,724) | 0 |
Net proceeds from issuance of convertible senior notes | 73,918 | 279,532 | 0 |
Net cash provided by (used in) financing activities | 72,095 | 249,238 | (16,440) |
Effect of exchange rate changes on cash | (168) | (362) | 444 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (128,272) | 244,880 | (1,227) |
Cash, cash equivalents and restricted cash, beginning of year | 284,683 | 39,803 | 41,030 |
Cash, cash equivalents and restricted cash, end of year | 156,411 | 284,683 | 39,803 |
Supplemental and non-cash disclosures: | |||
Right-of-use assets obtained in exchange for new and modified operating lease liabilities | 79,100 | ||
Interest paid | 1,553 | 0 | 36 |
Income taxes paid | 934 | 356 | 38 |
Equipment acquired under capital leases | 0 | 68 | 765 |
Reconciliation Of Cash, Cash Equivalents And Restricted Cash [Abstract] | |||
Total cash, cash equivalents and restricted cash | $ 284,683 | $ 39,803 | $ 39,803 |
THE COMPANY AND SIGNIFICANT ACC
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES THE COMPANY 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996 . The Company is a leading cloud provider of enterprise Software-as-a-Service ("SaaS") communications solutions that enable businesses of all sizes to communicate faster and smarter across voice, video meetings, chat and contact centers, transforming both employee and customer experiences with communications that work simply, integrate seamlessly, and perform reliably. From one proprietary cloud technology platform, customers have access to unified communications, team collaboration, video conferencing, contact center, data and analytics, and other services. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors. The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these Notes to Consolidated Financial Statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2020 refers to the fiscal year ended March 31, 2020 ). Acquisitions In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc., pursuant to which the Company purchased technology and other assets to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite. In October 2018, the Company entered into an asset purchase agreement with Atlassian Corporation PLC for the purchase of the Jitsi video collaboration technology ("Jitsi"). Jitsi extends the Company's cloud technology platform with scalable video routing and interoperability capabilities built on industry standards such as WebRTC. In July 2019, the Company entered into a share purchase agreement with Wavecell Pte. Ltd, an Asia-based provider of communication platform as a service ("CPaaS") solutions. This acquisition of an enterprise-class API solution extends 8x8’s technology advantage as a fully-owned, cloud technology platform with UCaaS, CCaaS, VCaaS, and CPaaS solutions able to natively offer pre-packaged communications, contact center, and video solutions and open APIs to embed these and other communications into an organization’s core business processes. See Note 13, " ACQUISITIONS" in the Notes to Consolidated Financial Statements for further discussion. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Income Statement Reporting Reclassifications During the fourth quarter of fiscal 2020, the Company determined that presenting service revenue as revenue from the Company's core subscription services would provide transparency and clarity to the users of the financial statements. As such, the Company reclassified certain revenue and cost of revenue on its consolidated statement of operations for the full year fiscal 2020, and the comparative fiscal years 2019 and 2018. The reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows for any of the fiscal years presented. Professional services revenue and cost of professional services revenue previously reported in service revenue and cost of service revenue are now reported in other revenue and cost of other revenue. Product revenue and cost of product revenue are also now reported in other revenue and cost of other revenue. In addition, other immaterial expense reclassifications were made to our fiscal 2019 consolidated statement of operations to improve comparability; these reclassifications do not affect consolidated net loss, or cash flows for any of the fiscal years presented. During the fourth quarter of fiscal 2019, the Company reclassified certain expenses on its Consolidated Statement of Operations to provide additional clarity and insights in light of strategic and organizational changes impacting its channel, marketing and support activities. The reclassifications were made to cost of revenue, sales and marketing expenses, research and development expenses, and general and administrative expenses for the full year fiscal 2019 and the comparative fiscal year 2018. These reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows for any of the fiscal years presented. USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles generally ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and intangible assets, capitalization of internally developed software, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions. REVENUE RECOGNITION As described below, significant management judgments and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of our revenue for any period if our management made different judgments or utilized different estimates. We recognize service revenue, mainly from subscription services to its cloud-based voice, call center, video , and collaboration solutions using the five-step model as prescribed by ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), as amended: Topic 606: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when or as, the Company satisfies a performance obligation. We identify performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount we expect to be entitled to receive in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. We generally bill our customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. We occasionally allow a 30-day period to cancel a subscription and return products shipped for a full refund. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company maintains a revenue reserve for potential credits to be issued. The Company records reductions to revenue for estimated sales returns and customer credits at the time the related revenue is recognized. Sales returns and customer credits are estimated based on its historical experience, current trends and its expectations regarding future experience. The Company monitors the accuracy of its sales reserve estimates by reviewing actual returns and credits and adjusts them for its future expectations to determine the adequacy of its current and future reserve needs. If actual future returns and credits differ from past experience, additional reserves may be required. When the Company's services do not meet certain service level commitments, customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company historically has not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, the amount of any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented. Judgments and Estimates The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments ("MRC") on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, of which both represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices ("SSP") of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. Service Revenue Service revenue from subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer until the end of the contractual period. Payments received in advance of subscription services being rendered are recorded as deferred revenue; revenue recognized for services rendered in advance of payments received are recorded as contract assets. Usage fees, when bundled, are billed in advance and recognized over time on a ratable basis over the contractual subscription term, which is usually the monthly contractual billing period. Non-bundled usage fees are recognized as actual usage occurs. Other Revenue Other revenue comprises primarily product revenue and professional services revenue. The Company recognizes product revenue for telephony equipment at a point in time, when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience. Professional services for deployment, configuration, system integration, optimization, customer training or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized as services are performed or upon completion of the deployment. Contract Assets Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example when the initial month's services or equipment are discounted. Contract assets are included in other current assets or other assets in the Company's consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. Deferred Revenue Deferred revenues represent billings or payments received in advance of revenue recognition and are recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding twelve-month period are recorded as deferred revenues, current in the consolidated balance sheets, with the remainder recorded as other liabilities, non-current in the Company's consolidated balance sheets. Deferred Sales Commission Costs Sales commissions are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as deferred sales commission costs, current and deferred sales commission costs, non-current and amortized on a straight-line basis over the anticipated benefit period of five years . The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. ASC 340-40, Other Assets and Deferred Costs - Contracts with Customer s, sets forth the requirement of deferring incremental costs of obtaining a contract, typically sales commissions. The Company applies a practical expedient that permits it to apply Subtopic 340-40 to a portfolio of contracts, instead of on a contract-by-contract basis, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio. CASH, CASH EQUIVALENTS, AND INVESTMENTS The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At March 31, 2020 and 2019 , all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income (expense), net in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of two major financial institutions. ACCOUNTS RECEIVABLE ALLOWANCE The Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, and communications with its customers. Amounts are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible. OPERATING LEASE, RIGHT-OF-USE ASSETS, AND LEASE LIABILITIES The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2030. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one to 10 years. Some of the leases include a Company option to extend the lease term for less than 12 months to five years , or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of the Company's leases do not provide a readily determinable implicit rate, the Company uses the incremental borrowing rate at lease commencement, which was determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the implicit rate when a rate is readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the Company's consolidated balance sheets, and the expense for these short-term leases is recognized on a straight-line basis over the lease term. PROPERTY AND EQUIPMENT Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, software and software development costs, and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements. Maintenance, repairs, and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the consolidated statements of operations. Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2020 and 2019 . ACCOUNTING FOR LONG-LIVED ASSETS The Company reviews the recoverability of its long-lived assets, such as property and equipment, right-of-use assets, definite lived intangibles or capitalized software, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. For the year ended March 31, 2018, the Company had determined that it had three reporting units and allocated goodwill to the reporting units for the purposes of its annual impairment test. For the year ended March 31, 2019, the Company has determined it had one reporting unit. The change in reporting units resulted from the following events: • As of April 1, 2018, the Company's DXI operations no longer operated on a standalone basis and was integrated into the Company's existing United Kingdom operations, and • During the third fiscal quarter of 2019, the Company assessed it had only one Chief Operating Decision Maker, who reviewed financial results on a consolidated basis. Following the acquisition of Wavecell in the second quarter of fiscal 2020, the Company considered whether the Chief Operating Decision Maker changed the manner in which financial results were reviewed. Financial results continue to be presented on a consolidated basis, and do not present separately the revenues and costs related to Wavecell on a stand-alone basis. As such, for the year ended March 31, 2020, the Company continued to conclude it had one reporting unit. The Company performs testing for impairment of goodwill on an annual basis, or as events occur or circumstances change that would more likely than not reduce the fair value of the Company’s single reporting unit below its carrying amount. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The Company conducted its annual impairment test of goodwill in the fourth quarter of fiscal 2020 and fiscal 2019 and determined that no adjustment to the carrying value of goodwill was required. Intangible assets, consisting of acquired developed technology, domain names, and customer relationships, acquired in a business combination are initially measured at fair value and were determined to have definite lives. Thereafter, intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to developed technology is included in cost of revenue. Amortization expense related to customer relationships and domain names are included in sales and marketing expense. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. CONVERTIBLE SENIOR NOTES In accounting for the issuance of the convertible senior notes (the "Notes"), the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective Notes. The equity component is not remeasured as long as it continues to meet the condition for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Notes. The Company allocated the issuance costs incurred to the liability and equity components of the Notes based on their relative fair values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the Notes and are being amortized to interest expense over the term of the Notes. Issuance costs attributable to the equity component, representing the conversion option, were netted with the equity component in stockholders' equity. RESEARCH & DEVELOPMENT AND SOFTWARE DEVELOPMENT COSTS Software developed or obtained for internal use in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), is capitalized during the application development stage. In accordance with authoritative guidance, the Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Once the project has been completed, these costs are amortized to cost of service revenue on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three years . Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on the Company's Consolidated Statements of Operations. The Company classifies software development costs associated with the development of the Company's products and services as property and equipment. ADVERTISING COSTS Advertising costs are expensed as incurred and were $32.2 million , $25.0 million and $14.5 million for the years ended March 31, 2020 , 2019 and 2018 , respectively. FOREIGN CURRENCY TRANSLATION The Company has determined that the functional currency of each of its foreign subsidiaries are the subsidiary's local currency. The Company believes that this most appropriately reflects the current economic facts and circumstances of the Company's subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period, and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity. SEGMENT INFORMATION The Company has determined the chief executive officer is its chief operating decision maker. The chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The Company has determined that it operates in a single reportable segment. CONCENTRATIONS Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments. The Company sells its products to customers and distributors. The Company performs credit evaluations of its customers' financial condition and generally does not require collateral from its customers. As of and for the fiscal years ending March 31, 2020 and 2019 , no customer accounted for more than 10% of accounts receivable or revenues. The Company purchases all of its hardware products from suppliers that manufacture the hardware directly, and from their distributors. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows. The Company also relies primarily on third-party network service providers to provide telephone numbers and PSTN call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: • Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). • Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions. The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments are recorded at fair value and convertible senior notes payable are recorded at net carrying value. See Note 8, "CONVERTIBLE SENIOR NOTES AND CAPPED CALL" in the Notes to Consolidated Financial Statement for the carrying amount the Company's the Notes, which are not recorded at fair value as of March 31, 2020 or 2019. See Note 3, "FAIR VALUE MEASUREMENTS" in the Notes to Consolidated Financial Statement for the estimated fair value of the Company's convertible senior notes. ACCOUNTING FOR STOCK-BASED COMPENSATION The Company accounts for the fair value of restricted stock units (“RSUs”) using the closing market price of the Company’s common stock on the date of grant. For new-hire grants and annual refresh grants, one-third of the RSUs typically vest on the first anniversary of grant date, and remaind |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 12, "GEOGRAPHICAL INFORMATION" in the Notes to Consolidated Financial Statements for more information. Contract Balances The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): March 31, 2020 March 31, 2019 Accounts receivable, net $ 37,811 $ 20,181 Contract assets, current $ 10,425 $ 5,717 Contract assets, non-current $ 13,698 $ — Deferred revenue, current $ 7,105 $ 3,336 Deferred revenue, non-current $ 1,119 $ 6 Contract assets, current, contract assets, non-currents, and deferred revenue, non-current are recorded in other current assets, other assets, and other liabilities, non-current, respectively. Changes in the contract assets and the deferred revenue balances during the year ended March 31, 2020 are as follows (in thousands): March 31, 2020 March 31, 2019 $ Change Contract assets $ 24,123 $ 5,717 $ 18,406 Deferred revenue $ 8,224 $ 3,342 $ 4,882 The change in contract assets was primarily driven by the recognition of revenue that has not yet been billed. The increase in deferred revenue was due to billings in advance of performance obligations being satisfied. During the year ended March 31, 2020 , the Company recognized revenues of approximately $ 3.0 million that was included in deferred revenue at the beginning of the year. Remaining Performance Obligations The Company's subscription terms typically range from one to five years . Contract revenue as of March 31, 2020 that has not yet been recognized was approximately $270.0 million . This excludes contracts with an original expected length of one year or less. The Company expects to recognize revenue on the vast majority of the remaining performance obligation over the next 36 months. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash, cash equivalents and available-for-sale investments were (in thousands): As of March 31, 2020 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 21,002 $ — $ — $ 21,002 $ 21,002 $ — $ — Level 1: Money market funds 110,796 — — 110,796 110,796 — — Treasuries 6,192 116 — 6,308 — — 6,308 Subtotal 137,990 116 — 138,106 131,798 — 6,308 Level 2: Commercial paper 14,979 6 — 14,985 5,596 9,389 — Corporate debt 34,153 32 (341 ) 33,844 — 24,069 9,775 Subtotal 49,132 38 (341 ) 48,829 5,596 33,458 9,775 Total assets $ 187,122 $ 154 $ (341 ) $ 186,935 $ 137,394 $ 33,458 $ 16,083 As of March 31, 2019 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 25,364 $ — $ — $ 25,364 $ 25,364 $ — Level 1: Money market funds 251,219 — — 251,219 251,219 — Subtotal 276,583 — — 276,583 276,583 — Level 2: Corporate debt 46,516 51 (29 ) 46,538 — 46,538 Municipal securities 5,511 17 — 5,528 — 5,528 Asset backed securities 13,596 9 (17 ) 13,588 — 13,588 Agency bond 4,260 — (15 ) 4,245 — 4,245 Subtotal 69,883 77 (61 ) 69,899 — 69,899 Total assets $ 346,466 $ 77 $ (61 ) $ 346,482 $ 276,583 $ 69,899 As of March 31, 2020, the estimated fair value of the Company's Notes was $309.6 million, which was determined based on the closing price for the Notes on the last trading day of the reporting period and is considered to be Level 2 in the fair value hierarchy due to limited trading activity of the Notes. |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS | 12 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
FINANCIAL STATEMENT COMPONENTS | FINANCIAL STATEMENT COMPONENTS Property and equipment consisted of the following (in thousands): March 31, 2020 2019 Computer equipment $ 38,105 $ 34,706 Software development costs 77,635 39,131 Software licenses 1,569 9,713 Leasehold improvements 31,706 6,286 Furniture and fixtures 5,485 2,324 Construction in progress 13,852 10,071 168,352 102,231 Less: accumulated depreciation and amortization (73,970 ) (49,396 ) Total property and equipment, net $ 94,382 $ 52,835 Depreciation and amortization expense related to property and equipment was $28.4 million, $18.5 million, and $10.7 million for the years ended March 31, 2020 , 2019 and 2018 , respectively. Other current asset consisted of the following (in thousands): March 31, 2020 2019 Prepaid expense $ 14,489 $ 7,891 Contract assets, current 10,425 5,717 Receivable related to lease assignment 6,853 — Other current assets 3,912 1,519 Total other current assets $ 35,679 $ 15,127 Other current liabilities consisted of the following (in thousands): March 31, 2020 2019 Liability related to lease assignment $ 8,969 $ — Acquisition-related holdback cash and shares 18,864 — Accrued liabilities 9,444 6,790 Total other current liabilities $ 37,277 $ 6,790 |
INTANGIBLE ASSETS, GOODWILL AND
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS | INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS The carrying value of intangible assets consisted of the following (in thousands): March 31, 2020 March 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 33,932 $ (16,312 ) $ 17,620 $ 25,702 $ (15,409 ) $ 10,293 Customer relationships 11,409 (5,412 ) 5,997 9,467 (8,080 ) 1,387 Trade names and domains 983 (599 ) 384 2,108 (2,108 ) — In-process research and development — — — 95 (95 ) — Total acquired identifiable intangible assets $ 46,324 $ (22,323 ) $ 24,001 $ 37,372 $ (25,692 ) $ 11,680 As of March 31, 2020, the weighted average remaining useful life for technology, customer relationship, and trade names and domains was 4.9 years, 5.8 years, and 0.1 years, respectively. Amortization expense for related intangible assets was $8.8 million, $6.2 million, and $5.0 million for the years ended March 31, 2020 , 2019 and 2018 , respectively. During the year ended March 31, 2020, the Company wrote off approximately $11.3 million of fully amortized intangible assets and the corresponding accumulated amortization. At March 31, 2020 , annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount 2021 $ 6,871 2022 4,708 2023 3,156 2024 2,851 2025 and thereafter 6,415 Total $ 24,001 The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Total Balance at March 31, 2018 $ 40,054 Additions due to acquisitions 500 Foreign currency translation (860 ) Balance at March 31, 2019 39,694 Additions due to acquisitions 91,060 Foreign currency translation (2,454 ) Balance at March 31, 2020 $ 128,300 Deferred Sales Commission Costs Amortization of deferred sales commission costs for the year ended March 31, 2020 and 2019 was $19.5 million and $14.2 million, respectively. Prior to the adoption of ASC 606, the Company did not defer sales commission costs. There were no material write-offs relative to the costs capitalized for the year ended March 31, 2020 and 2019 . |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Operating Leases The following table provides balance sheet information related to operating leases as of March 31, 2020 (in thousands): March 31, 2020 Assets Operating lease, right-of-use assets $ 78,963 Liabilities Operating lease liabilities, current $ 5,875 Operating lease liabilities, non-current 92,452 Total operating lease liabilities $ 98,327 During the year ended March 31, 2020 , operating lease expense was approximately $15.0 million . Variable lease and short-term lease costs were $1.6 million during the year ended March 31, 2020 . The following table presents supplemental information for the year ended March 31, 2020 (in thousands, except for weighted average remaining lease term and discount rate): Weighted average remaining lease term 8.9 years Weighted average discount rate 4.0 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 9,856 The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2020 (in thousands): 2021 $ 9,765 2022 16,270 2023 15,237 2024 11,722 2025 11,386 Thereafter 58,078 Total lease payments $ 122,458 Less: imputed interest (21,522 ) Less: lease incentives receivable (2,609 ) Present value of lease liabilities $ 98,327 On July 3, 2019, the Company entered into a lease for a new company headquarters to rent 177,815 square feet of office space as the sole tenant in a new five -story office building located in Campbell, California. The lease is for a 132 -month term that started on January 1, 2020. The Company has the option to extend the lease for two additional five-year terms, on substantially the same terms and conditions as the prior term, with the base rent rate adjusted to fair market value at that time. Base rent is approximately $0.7 million per month for the first 12 months of the lease, with the rate increasing by approximately 3% on each anniversary of the lease. The Company is responsible for paying its share of building and common area expenses. Lease incentive received by the Company included a full rent abatement during the first 12 months of the lease term and tenant improvement allowance of approximately $15.4 million . The Company paid to the landlord a security deposit in the amount of $2.0 million , which may be drawn down in the event the Company defaults under the lease. Upon obtaining full access to the leased property during the second quarter of fiscal 2020, the Company recognized an operating lease right-of-use asset of $56.8 million and operating lease liability of $56.1 million . Lease Assignment In the fourth quarter of fiscal 2018, the Company entered into a 132 -month lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord"), to rent approximately 162,000 square feet of office space in a new building in San Jose, California. The lease term began on January 1, 2019. On April 30, 2019, due to the Company's rapid growth and greater than anticipated future space needs, the Company entered into an assignment and assumption (the "Assignment") of the Agreement with the Landlord, and Roku Inc., a Delaware corporation ("Roku"), whereby the Company assigned to Roku the Agreement. Pursuant to the Assignment, the Company expects to be released from all of its obligations under the lease and related standby letter of credit by the end of the Company’s fiscal year ending March 31, 2022, or shortly thereafter. The Company also expects to receive the reimbursement of base rent and direct expenses from Roku in the fourth quarter of fiscal 2021 in accordance with the Assignment. The obligations related to the Agreement is not included in the right-of-use asset or lease liabilities as of March 31, 2020. The remaining obligations related to the Assignment of $9.0 million and the termination fee of $0.8 million are recorded in other accrued liabilities and other liabilities, non-current, respectively, in the Company's consolidated balance sheet. The expected receivable of $6.9 million |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. Operating Leases The Company's lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements. See Notes 6, "LEASES" in the Notes to Consolidated Financial Statements for more information on the Company's leases and the future minimum lease payments. Purchase Obligation The Company's purchase obligations include contracts with third-party customer support vendors and third-party network service providers. These contracts include minimum monthly commitments and the requirements to maintain the service level for several months. The total contractual minimum commitments were approximately $4.2 million at March 31, 2020 . Legal Proceedings The Company may be involved in various claims, lawsuits, investigations and other proceedings, including intellectual property, commercial, regulatory compliance, securities and employment matters that arise in the normal course of business. The Company accrues a liability when management believes information available prior to the issuance of the financial statements indicates it is probable a loss has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The Company adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Legal costs are expensed as incurred. The Company believes it has recorded adequate provisions for any such lawsuits, claims and proceedings and, as of March 31, 2020, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in the Consolidated Financial Statements. Based on its experience, the Company believes that damage amounts claimed in these matters are not meaningful indicators of potential liability. Some of the matters pending against the Company involve potential compensatory, punitive or treble damage claims or sanctions, that, if granted, could require the Company to pay damages or make other expenditures in amounts that could have a material adverse effect on its Consolidated Financial Statements. Given the inherent uncertainties of litigation, the ultimate outcome of the ongoing matters described herein cannot be predicted with certainty. While litigation is inherently unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it. Nevertheless, the Consolidated Financial Statements could be materially adversely affected in a particular period by the resolution of one or more of these contingencies. State and Local Taxes and Surcharges From time to time, the Company has received inquiries from a number of state and local taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. During the second quarter of fiscal 2019, the Company conducted a periodic review of the taxability of its services and determined that certain services may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. Accordingly, the Company recorded contingent indirect tax liabilities. As of March 31, 2020 and 2019, the Company had accrued contingent indirect tax liabilities of $4.5 million and $8.0 million |
CONVERTIBLE SENIOR NOTES AND CA
CONVERTIBLE SENIOR NOTES AND CAPPED CALL | 12 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES AND CAPPED CALL | CONVERTIBLE SENIOR NOTES AND CAPPED CALL Convertible Senior Notes In February 2019, the Company issued $287.5 million aggregate principal amount of 0.50% convertible senior notes (the "Initial Notes") due 2024 in a private placement, including the exercise in full of the initial purchasers' option to purchase additional notes. The Initial Notes are senior unsecured obligations of the Company and interest is payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2019. The Initial Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. The total net proceeds from the debt offering, after deducting initial purchase discounts, debt issuance costs, and costs of the capped call transactions described below, were approximately $245.8 million . In November 2019, the Company issued an additional $75 million aggregate principal amount of 0.50% convertible senior notes (the "Additional Notes" and together with the Initial Notes, the "Notes") due 2024 in a registered offering under the same indenture as the Initial Notes. The total net proceeds from the Additional Notes, after deducting initial purchase discounts, debt issuance costs and costs of the capped call transactions described below, were approximately $64.6 million . The Additional Notes constitute a further issuance of, and form a single series with, the Company’s outstanding 0.50% convertible senior notes due 2024 issued in February 2019 in the aggregate principal amount of $287.5 million . Immediately after giving effect to the issuance of the Additional Notes, the Company has $362.5 million aggregate principal amount of convertible senior notes. The Additional Notes are senior unsecured obligations of the Company and interest is payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2020. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. Each $1,000 principal amount of the Notes is initially convertible into 38.9484 shares of the Company’s common stock, par value $0.001 , which is equivalent to an initial conversion price of approximately $25.68 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid interest. In addition, upon the occurrence of certain corporate events that occur prior to the maturity date or following the Company's issuance of a notice of redemption, in each case as described in the Indenture, the Company will, in certain circumstances, increase the conversion rate for a holder that elects to convert its Notes in connection with such a corporate event or during the relevant redemption period. Prior to the close of business on the business day immediately preceding October 1, 2023, the Notes will be convertible only under the following circumstances: 1. At any time during any calendar quarter commencing after the fiscal quarter ending on June 30, 2019 (and only during such calendar quarter), if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; 2. During the five business day period immediately after any ten consecutive trading day period (the measurement period), if the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock on each such trading day and the conversion rate on each such trading day; 3. If the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or 4. Upon the occurrence of specified corporate events (as set forth in the indenture governing the Notes). On or after October 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, regardless of the foregoing circumstances. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at the Company's election. The Company’s current intent is to settle the principal amount of the Notes in cash upon conversion. During the year ended March 31, 2020, the conditions allowing holders of the Notes to convert were not met. The Company may not redeem the Notes prior to February 4, 2022. On or after February 4, 2022, the Company may redeem for cash all or part of the Notes, at the redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice. If a fundamental change (as defined in the indenture governing the notes) occurs at any time, holders of Notes may require the Company to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Notes are senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment with the Company’s existing and future liabilities that are not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of current or future subsidiaries of the Company. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments, which do not have an associated convertible feature. The carrying amount of the equity component representing the conversion option for the Initial Notes and the Additional Notes was $64.9 million and $12.4 million, respectively, and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not remeasured as long as it continues to meet the condition for equity classification. The excess of the principal amounts of the liability components over the carrying amounts (“debt discount”) in connection with the Initial Notes and Additional Notes are amortized to interest expense at the effective interest rates of 6.5% and 5.3% , respectively, over the terms of the Notes. The Company allocated the total issuance cost incurred to the liability and equity components of the Notes based on their relative value. Issuance costs attributable to the liability component of $0.6 million for each Initial Notes and Additional Notes were recorded as additional reduction to the liability portion of the Notes and are being amortized to interest expense over the terms of the Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The net carrying amount of the liability component of the Notes were as follows (in thousands): March 31, 2020 March 31, 2019 Principal $ 362,500 $ 287,500 Unamortized debt discount (69,987 ) (70,876 ) Unamortized issuance costs (976 ) (589 ) Net carrying amount $ 291,537 $ 216,035 Unamortized debt discount and issuance costs will be amortized over the remaining life of the Notes, which is approximately 46 months. The following table sets forth total interest expense recognized related to the Notes (in thousands): Years Ended March 31, 2020 2019 Contractual interest expense $ 1,572 $ 156 Amortization of debt discount 13,901 1,343 Amortization of issuance costs 145 11 Total interest expense $ 15,618 $ 1,510 Capped Call In connection with the pricing of the Notes, the Company entered into privately negotiated capped call transactions ("Capped Calls") with certain counterparties. The Capped Calls each have an initial strike price of approximately $25.68 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $39.50 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Common Stock upon any conversion of the Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 14.1 million shares of the Company’s Common Stock. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the Company, including merger events, tender offers and announcement events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $33.7 million incurred to purchase the Capped Calls in connection with the Initial Notes and $9.3 million in connection with the Additional Notes were recorded as a reduction to additional paid-in capital and will not be remeasured. The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Initial and Additional Notes was as follows (in thousands): Additional Notes Initial Notes Conversion option $ 12,810 $ 66,700 Payments for capped call transactions (9,288 ) (33,724 ) Issuance costs (428 ) (1,848 ) Total $ 3,094 $ 31,128 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY 2006 Stock Plan In May 2006, the Company's board of directors approved the 2006 Stock Plan ("2006 Plan"). The Company's stockholders subsequently adopted the 2006 Plan in September 2006, which became effective in October 2006. The Company reserved 7,000,000 shares of the Company's common stock for issuance under this plan. The 2006 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2006 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options generally vest over four years and expire ten years after grant. In 2009, the 2006 Plan was amended to provide for the granting of stock purchase rights. The 2006 Plan expired in May 2016. As of March 31, 2020, there are no shares available for future grants under the 2006 Plan. 2012 Equity Incentive Plan In June 2012, the Company's board of directors approved the 2012 Equity Incentive Plan ("2012 Plan"). The Company's stockholders subsequently adopted the 2012 Plan in July 2012, which became effective in August 2012. The Company reserved 4,100,000 shares of the Company's common stock for issuance under this plan. In August 2014, 2016, 2018 and 2019, the 2012 Plan was amended to allow for an additional 6,800,000 , 4,500,000 , 16,300,000 and 12,000,000 shares reserved for issuance, respectively. The 2012 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards and stock grants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2012 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options, restricted stock and restricted stock units generally vest over three or four years and expire ten years after grant. The 2012 Plan expires in June 2029. As of March 31, 2020 , 17.7 million shares remained available under the 2012 Plan. 2013 New Employee Inducement Incentive Plan In September 2013, the Company's board of directors approved the 2013 New Employee Inducement Incentive Plan ("2013 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In November 2014, the 2013 Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In July 2015, the Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In connection with its approval of the August 2016 amendments to the 2012 Plan, the Board of Directors has approved the suspension of future grants under the 2013 Plan, which became effective immediately upon stockholder approval of the proposed 2012 Plan amendments in August 2016. In addition, the 2013 Plan was amended to reduce the number of shares reserved for issuance under the 2013 Plan to the number of shares that are then subject to outstanding awards under the 2013 Plan, leaving no shares available for future grant. The 2013 Plan provided for granting non-statutory stock options, stock appreciation rights, restricted stock, restricted stock and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options were granted at market value on the grant date under the 2013 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over four years and expire ten years after grant. 2017 New Employee Inducement Incentive Plan In October 2017, the Company's board of directors approved the 2017 New Employee Inducement Incentive Plan ("2017 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In January 2018, the 2017 Plan was amended to allow for an additional 1,500,000 shares reserved for issuance. The 2017 Plan provides for granting non-statutory stock options, stock appreciation rights, restricted stock, and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options are granted at market value on the grant date under the 2017 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over three years and expire ten years after grant. As of March 31, 2020 , 0.5 million shares remained available under the 2017 plan. Stock-Based Compensation The following table summarizes stock-based compensation expense (in thousands): Years Ended March 31, 2020 2019 2018 Cost of service revenue $ 5,330 $ 3,752 $ 2,636 Cost of other revenue 3,051 1,775 1,341 Research and development 19,712 12,313 6,625 Sales and marketing 20,205 11,951 6,630 General and administrative 22,580 14,717 11,944 Total $ 70,878 $ 44,508 $ 29,176 Stock Options, Stock Purchase Right and Restricted Stock Unit Activity Stock option activities under all the Company's stock option plans during the years ended March 31, 2020 , 2019 and 2018 are summarized as follows: Number of Shares Weighted Average Exercise Price Per Share Outstanding at March 31, 2017 4,462,412 7.52 Granted 609,135 14.95 Exercised (773,897 ) 3.95 Canceled/Forfeited (299,365 ) 13.05 Outstanding at March 31, 2018 3,998,285 8.93 Granted 236,799 21.65 Exercised (759,884 ) 7.70 Canceled/Forfeited (361,129 ) 15.41 Outstanding at March 31, 2019 3,114,071 9.45 Granted — — Exercised (785,281 ) 8.77 Canceled/Forfeited (54,527 ) 17.01 Outstanding at March 31, 2020 2,274,263 9.50 Vested and expected to vest March 31, 2020 2,255,616 9.42 Exercisable at March 31, 2020 2,115,696 The total intrinsic value of options exercised in the years ended March 31, 2020 , 2019 and 2018 was $10.1 million , $10.0 million and $9.0 million , respectively. Stock purchase right activities during the years ended March 31, 2020 , 2019 and 2018 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2017 11,370 $ 8.10 1.09 Granted — — Vested and released (6,395 ) 8.26 Forfeited — — Balance at March 31, 2018 4,975 8.10 1.09 Granted — — Vested and released (4,625 ) 7.88 Forfeited (350 ) 7.88 Balance at March 31, 2019 and 2020 — — 0.00 There were no activities related to stock purchase right during the year ended March 31, 2020 . Activities related to PSUs and RSUs during the years ended March 31, 2020 , 2019 and 2018 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2017 4,939,050 $ 11.57 1.55 Granted 3,481,870 14.41 Vested and released (1,833,038 ) 10.27 Forfeited (652,339 ) 12.73 Balance at March 31, 2018 5,935,543 13.51 1.60 Granted 5,726,787 19.77 Vested and released (2,399,371 ) 12.87 Forfeited (1,442,471 ) 16.85 Balance at March 31, 2019 7,820,488 17.68 1.35 Granted 6,431,505 20.62 Vested and released (3,443,335 ) 17.02 Forfeited (1,617,343 ) 19.06 Balance at March 31, 2020 9,191,315 1.89 As of March 31, 2020 , there was $122.1 million of total unrecognized compensation cost related to stock options, PSUs and RSUs, which is expected to be recognized over a weighted average period of approximately 1.9 years . 1996 Employee Stock Purchase Plan The Company's 1996 Stock Purchase Plan ("Employee Stock Purchase Plan") was adopted in June 1996 and became effective upon the closing of the Company's initial public offering in July 1997. Under the Employee Stock Purchase Plan, 500,000 shares of common stock were initially reserved for issuance. At the start of each fiscal year, the number of shares of common stock subject to the Employee Stock Purchase Plan increases so that 500,000 shares remain available for issuance. In May 2006, the Company's board of directors approved a ten -year extension of the Employee Stock Purchase Plan. Stockholders approved a ten -year extension of the Employee Stock Purchase Plan at the 2006 Annual Meeting of Stockholders held September 18, 2006. The Board of Directors approved a second ten -year extension in May 2017. Stockholders approved the second ten -year extension in August 2017. As a result of these extensions, the Employee Stock Purchase Plan is effective until August 2027. During fiscal 2020 , 2019 and 2018 , approximately 0.6 million , 0.5 million and 0.4 million shares, respectively, were issued under the Employee Stock Purchase Plan. The Employee Stock Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each one -year offering period or the end of a six month purchase period, whichever is lower. When the Employee Stock Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two years to one year . The contribution amount may not exceed ten percent of an employee's base compensation, including commissions, but not including bonuses and overtime wages. Commencing with the purchase period beginning in August 2020, the contribution amount may not exceed twenty percent of an employee's base compensation, including commissions and standard incentive cash bonuses, but not including non-standard bonuses and overtime wages. In the event of a merger of the Company with or into another corporation or the sale of all or substantially all of the assets of the Company, the Employee Stock Purchase Plan provides that a new exercise date will be set for each purchase right under the plan which exercise date will occur before the date of the merger or asset sale. As of March 31, 2020 , there was approximately $1.1 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.5 years. Assumptions Used to Calculate Stock-Based Compensation Expense The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Years Ended March 31, 2020 2019 2018 Expected volatility —% 41% 41% Expected dividend yield — — — Risk-free interest rate 0 2.5% to 3.0% 1.8% to 2.4% Weighted average expected term (in years) N/A 4.5 years 4.8 years Weighted average fair value of options granted $— $8.19 $5.70 The Company did not grant any stock options during fiscal 2020. The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: Years Ended March 31, 2020 2019 2018 Expected volatility 32% 41% 40% Expected dividend yield — — — Risk-free interest rate 1.79% 2.43% 1.33% Weighted average expected term (in years) 0.7 years 0.8 years 0.8 years Weighted average fair value of rights granted $5.66 $5.74 $4.10 Stock Repurchases In May 2017, the Company's board of directors authorized the Company to purchase $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "2017 Plan"). The 2017 Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. The remaining amount available under the 2017 Plan at March 31, 2020 was approximately $7.1 million |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Tax Cuts and Jobs Act ("Tax Act") was enacted on December 22, 2017. Among numerous provisions, the Tax Act reduces the U.S. federal corporate tax rate from 35% t o 21% , requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% . Accordingly, deferred tax assets were adjusted down by about $23 million in the period ended December 31, 2017. However, because the Company recorded a full valuation allowance during the year ended December 31, 2018, the decrease in deferred tax assets from the tax rate change was fully offset by a corresponding decrease in valuation allowance, and therefore, resulted in no impact to the tax expense. The one-time transition tax is based on the Company's total post-1986 earnings and profits for which U.S. income taxes have been previously deferred. The Company recorded no one-time transition tax liability for its foreign subsidiaries as the Company's calculations concluded it does not have any untaxed foreign accumulated earnings as of the measurement date. The Company has made an accounting policy election to treat Global Intangible Low-Taxed Income (“GILTI”) as a current period cost. In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. As of March 31, 2019, the Company has completed its analysis and recorded no adjustments. For the years ended March 31, 2020 , 2019 and 2018 , the Company recorded a provision for income taxes of approximately $0.8 million , $0.6 million , and $66.3 million , respectively. The components of the consolidated provision for income taxes for fiscal 2020 , 2019 and 2018 consisted of the following (in thousands): March 31, Current: 2020 2019 2018 Federal $ — $ — $ (395 ) State 185 291 256 Foreign 647 278 185 Total current tax provision 832 569 46 Deferred Federal — — 59,837 State — — 6,664 Foreign — — (253 ) Total deferred tax provision — — 66,248 Income tax provision $ 832 $ 569 $ 66,294 The Company's income (loss) from continuing operations before income taxes included $9.0 million , $0.2 million , and $(19.7) million of foreign subsidiary income for the fiscal years ended March 31, 2020 , 2019 and 2018 , respectively. The Company is permanently reinvesting the earnings of its profitable foreign subsidiaries. The Company intends to reinvest these profits in expansion of overseas operations. If the Company were to remit these earnings, the tax impact would be immaterial. Deferred tax assets and (liabilities) were comprised of the following (in thousands): March 31, 2020 2019 Deferred tax assets Net operating loss carryforwards $ 109,734 $ 61,740 Research and development and other credit carryforwards 19,413 15,573 Stock-based compensation 10,343 9,006 Reserves and allowances 3,974 5,697 Lease liability 24,492 — Fixed assets and intangibles 5,314 2,709 Gross deferred tax assets 173,270 94,725 Valuation allowance (115,435 ) (65,948 ) Total deferred tax assets $ 57,835 $ 28,777 Deferred tax liabilities Deferred sales commissions (21,608 ) (12,221 ) Convertible debt (16,626 ) (16,556 ) Lease asset (19,601 ) — Net deferred taxes $ — $ — The Company assesses the realizability of deferred tax assets based on the available evidence, including a history of taxable income and estimates of future taxable income. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that all or some portion of deferred tax assets will not be realized. For the year ended March 31, 2020 , the Company continues to maintain a full valuation allowance against its deferred tax assets as it considered the cumulative losses in recent periods to be substantial negative evidence. At March 31, 2020 , management determined that a valuation allowance of approximately $115.4 million was needed compared with approximately $65.9 million as of March 31, 2019 . At March 31, 2020 , the Company had federal net operating loss carryforwards related to fiscal 2019 and 2020 of approximately $280.5 million , which carryforward indefinitely, and had carry-forwards related to prior years of $156.3 million , which begin to expire in 2021. As of March 31, 2020 , the Company has state net operating loss carry-forwards of $203.7 million , which expire at various dates between 2029 and 2037. In addition, at March 31, 2020 , the Company had research and development credit carryforwards for federal and California tax reporting purposes of approximately $12.9 million and $14.1 million , respectively. The federal income tax credit carryforwards will expire at various dates between 2022 and 2037, while the California income tax credits will carry forward indefinitely. A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands): Years Ended March 31, 2020 2019 2018 Tax benefit at statutory rate $ (36,163 ) $ (18,441 ) $ (11,790 ) State income taxes before valuation allowance, net of federal effect (7,680 ) (3,612 ) (1,042 ) Foreign tax rate differential (1,422 ) 71 (1,188 ) Research and development credits (3,892 ) (3,744 ) (2,189 ) Change in valuation allowance 51,741 30,558 56,663 Compensation/option differences (6,584 ) (7,277 ) (4,965 ) Non-deductible compensation 3,017 1,200 1,132 Tax Act rate change impact — — 22,630 Foreign loss not benefited 107 159 6,847 Other 1,708 1,655 196 Total income tax provision (benefit) $ 832 $ 569 $ 66,294 For the fiscal year ended March 31, 2020 and 2019, the statutory federal rate of 21% was used. For the fiscal year ended March 31, 2018, a blended statutory U.S. federal income tax rate of 34% for 9 months and 21% for 3 months was used. The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Unrecognized Tax Benefits 2020 2019 2018 Balance at beginning of year $ 5,033 $ 3,980 $ 3,331 Gross increases - tax position in prior period — 17 — Gross increases - tax position related to the current year 1,082 1,036 649 Balance at end of year $ 6,115 $ 5,033 $ 3,980 At March 31, 2020 , the Company had unrecognized tax benefits of $6.1 million , all of which, if recognized, would favorably affect the company's effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months . The Company's policy for recording interest and penalties associated with tax examinations is to record such items as a component of operating expense income before taxes. During the fiscal years ended March 31, 2020 , 2019 and 2018 , the Company did no t recognize any interest or penalties related to unrecognized tax benefits. Utilization of the Company's net operating loss and tax credit carryforwards can become subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. The Company has performed an analysis of its changes in ownership under Section 382 of the Internal Revenue Code. The Company currently believes that the Section 382 limitation will not limit utilization of the carryforwards prior to their expiration, with the exception of certain acquired loss and tax credit carryforwards. The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. The Company is currently under examination by the Illinois Department of Revenue for the fiscal years ended March 31, 2016 and 2017. The outcome of the ongoing examination is currently unknown. The tax years fiscal 2000 through fiscal 2020 generally remain subject to examination by federal and most state tax authorities. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except share and per share data): Years Ended March 31, 2020 2019 2018 Numerator: Net loss available to common stockholders $ (172,368 ) $ (88,739 ) $ (104,497 ) Denominator: Denominator for basic and diluted calculation 99,999 94,533 92,017 Net loss per share - basic and diluted $ (1.72 ) $ (0.94 ) $ (1.14 ) The following table summarizes the potentially dilutive common shares that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands): Years Ended March 31, 2020 2019 2018 Stock options 2,274 3,114 3,998 Restricted stock units 9,191 7,820 5,940 Potential shares to be issued from ESPP 582 473 475 Total anti-dilutive shares 12,047 11,407 10,413 Given the average market price at the end of fiscal 2020 was below the conversion price of the Notes, no such shares were included in the potentially dilutive share count. |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | GEOGRAPHICAL INFORMATION The following tables set forth the geographic information for each period (in thousands): Revenue for the Years Ended March 31, 2020 2019 2018 United States $ 350,368 $ 304,378 $ 266,034 International 95,869 48,208 30,466 Total revenue $ 446,237 $ 352,586 $ 296,500 Property and Equipment as of March 31, 2020 2019 United States $ 87,673 $ 45,639 International 6,709 7,196 Total property and equipment, net $ 94,382 $ 52,835 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS MarianaIQ On April 12, 2018, the Company entered into an Asset Purchase Agreement with MarianaIQ Inc. ("MarianaIQ") for the purchase of certain assets of MarianaIQ to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite. The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years . The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years . The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the acquired assets to the overall corporate strategy in addition to the acquired workforce. MarianaIQ did not contribute materially to revenue or net loss for the period of acquisition to March 31, 2020 . Goodwill recognized upon acquisition is deductible for income tax purposes. Jitsi On October 29, 2018, the Company entered into an Asset Purchase Agreement with Atlassian Corporation PLC (Atlassian) through which the Company purchased certain assets from Atlassian relating to the Jitsi open source video communications technology ("Jitsi"). The Company intends to integrate Jitsi's video collaboration capabilities into the Company's technology platform to further enhance the Company's video and X Series platform offerings. The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years . The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years . The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to the acquired workforce. Jitsi did not contribute materially to revenue or net loss for the period of acquisition to March 31, 2020 . Goodwill recognized upon acquisition is deductible for income tax purposes. Wavecell On July 17, 2019, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with Wavecell Pte. Ltd., a corporation incorporated under the laws of the Republic of Singapore (“Wavecell”), the equity holders of Wavecell (collectively, the “Sellers”), and Qualgro Partners Pte. Ltd., in its capacity as the representative of the equity holders of Wavecell. Pursuant to the Share Purchase Agreement, the Company acquired all of the outstanding shares and other equity interests of Wavecell (the “Transaction”). This Transaction extends 8x8’s technology advantage as a fully-owned, cloud technology platform with UCaaS, CCaaS, VCaaS, and CPaaS solutions able to natively offer pre-packaged communications, contact center and video solutions and open APIs to embed these and other communications into an organization’s core business processes. The total fair value of the purchase consideration of approximately $117.1 million was comprised of approximately $72.8 million in cash and $44.3 million in shares of common stock of the Company, of which approximately $10.4 million in cash and $8.5 million in equity have been held back to cover potential indemnity claims made by the Company after the closing date. One-third of these holdback amounts are eligible to be released in 12 months from the date of the Transaction and the remainder in 18 months from the date of the Transaction. The holdback cash of $10.4 million is recorded in restricted cash, current and other accrued liabilities, respectively, in the Company's consolidated balance sheet. The holdback of $8.5 million in equity is recorded in other accrued liabilities in the Company's consolidated balance sheet. Additionally, in connection with the Transaction, the Company issued $13.2 million in time-based restricted stock awards and $6.6 million in performance-based restricted stock awards, all of which vest over three years from the Transaction. As of March 31, 2020, the total unrecognized compensation cost related to these awards was approximately $15.1 million , which is expected to be recognized over the next 2.3 years . The major classes of assets and liabilities to which the Company has preliminarily allocated the fair value of purchase consideration were as follows (in thousands): July 17, 2019 Cash $ 4,473 Accounts receivable 9,438 Intangible assets 21,010 Other assets 787 Goodwill 91,060 Accounts payable (9,548 ) Deferred revenue (90 ) Total consideration $ 117,130 The acquisition has been accounted for as a business combination under the acquisition method and, accordingly, the total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair value on the acquisition date. The fair value of assets acquired and liabilities assumed from the acquisition of Wavecell is based on a preliminary valuation and, as such, the Company's estimates and allocations to certain assets, liabilities, and tax estimates are subject to change within the measurement period as additional information becomes available. The goodwill recognized was primarily attributed to increased synergies that are expected to be achieved from the integration of Wavecell and is not expected to be deductible for income tax purposes. The preliminary value of the acquired intangible assets acquired are as follows (in thousands): Fair Value Useful life (in Years) Trade and domain names $ 990 0.8 Developed technology 13,830 7 Customer relationships 6,190 7 Total intangible assets $ 21,010 The Company incurred costs related to this acquisition of approximately $1.8 million during the year ended March 31, 2020 . All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in the accompanying consolidated statements of operations. The revenue and earnings of the acquired business have been included in the Company’s results since the acquisition date and are not material to the Company’s consolidated financial results. Pro forma results of operations for this acquisition have not been presented, as the financial impact to the Company’s consolidated financial statements is not material. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) In thousands, except per share data amounts: Quarters Ended March 31, Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 March 31, Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Total revenues $ 121,478 $ 118,567 109,517 $ 96,675 $ 93,767 $ 89,912 $ 85,682 $ 83,225 Gross profit 63,857 62,348 59,820 58,984 59,174 56,962 54,083 52,395 Loss from operations (46,154 ) (43,168 ) (37,944 ) (32,553 ) (27,425 ) (24,238 ) (21,987 ) (15,983 ) Net income (loss) (50,100 ) (47,071 ) (40,932 ) (34,265 ) (28,131 ) (23,771 ) (21,482 ) (15,355 ) Net income (loss) per share: Basic and diluted $ (0.49 ) $ (0.47 ) $ (0.42 ) $ (0.36 ) $ (0.29 ) $ (0.25 ) $ (0.23 ) $ (0.16 ) |
SCHEUDLE II
SCHEUDLE II | 12 Months Ended |
Mar. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) Description Balance at Beginning of Year Additions Charged to Expenses Deductions (a) Balance at End of Year Total Allowance for Doubtful Accounts: Year ended March 31, 2018: $ 954 $ 250 $ (300 ) $ 904 Year ended March 31, 2019: $ 904 $ 1,115 $ (1,155 ) $ 864 Year ended March 31, 2020: $ 864 $ 3,067 $ (825 ) $ 3,106 (a) The deductions related to allowance for doubtful accounts represent accounts receivable which are written off. |
THE COMPANY AND SIGNIFICANT A_2
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
The Company | 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996 . The Company is a leading cloud provider of enterprise Software-as-a-Service ("SaaS") communications solutions that enable businesses of all sizes to communicate faster and smarter across voice, video meetings, chat and contact centers, transforming both employee and customer experiences with communications that work simply, integrate seamlessly, and perform reliably. From one proprietary cloud technology platform, customers have access to unified communications, team collaboration, video conferencing, contact center, data and analytics, and other services. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors. |
Fiscal Period | The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these Notes to Consolidated Financial Statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2020 refers to the fiscal year ended March 31, 2020 ). |
Acquisitions | In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc., pursuant to which the Company purchased technology and other assets to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite. In October 2018, the Company entered into an asset purchase agreement with Atlassian Corporation PLC for the purchase of the Jitsi video collaboration technology ("Jitsi"). Jitsi extends the Company's cloud technology platform with scalable video routing and interoperability capabilities built on industry standards such as WebRTC. In July 2019, the Company entered into a share purchase agreement with Wavecell Pte. Ltd, an Asia-based provider of communication platform as a service ("CPaaS") solutions. This acquisition of an enterprise-class API solution extends 8x8’s technology advantage as a fully-owned, cloud technology platform with UCaaS, CCaaS, VCaaS, and CPaaS solutions able to natively offer pre-packaged communications, contact center, and video solutions and open APIs to embed these and other communications into an organization’s core business processes. |
Principles of Consolidation | The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Reclassifications | During the fourth quarter of fiscal 2020, the Company determined that presenting service revenue as revenue from the Company's core subscription services would provide transparency and clarity to the users of the financial statements. As such, the Company reclassified certain revenue and cost of revenue on its consolidated statement of operations for the full year fiscal 2020, and the comparative fiscal years 2019 and 2018. The reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows for any of the fiscal years presented. Professional services revenue and cost of professional services revenue previously reported in service revenue and cost of service revenue are now reported in other revenue and cost of other revenue. Product revenue and cost of product revenue are also now reported in other revenue and cost of other revenue. In addition, other immaterial expense reclassifications were made to our fiscal 2019 consolidated statement of operations to improve comparability; these reclassifications do not affect consolidated net loss, or cash flows for any of the fiscal years presented. During the fourth quarter of fiscal 2019, the Company reclassified certain expenses on its Consolidated Statement of Operations to provide additional clarity and insights in light of strategic and organizational changes impacting its channel, marketing and support activities. The reclassifications were made to cost of revenue, sales and marketing expenses, research and development expenses, and general and administrative expenses for the full year fiscal 2019 and the comparative fiscal year 2018. These reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows for any of the fiscal years presented. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles generally ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and intangible assets, capitalization of internally developed software, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions. |
Revenue Recognition | As described below, significant management judgments and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of our revenue for any period if our management made different judgments or utilized different estimates. We recognize service revenue, mainly from subscription services to its cloud-based voice, call center, video , and collaboration solutions using the five-step model as prescribed by ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), as amended: Topic 606: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when or as, the Company satisfies a performance obligation. We identify performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount we expect to be entitled to receive in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. We generally bill our customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. We occasionally allow a 30-day period to cancel a subscription and return products shipped for a full refund. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company maintains a revenue reserve for potential credits to be issued. The Company records reductions to revenue for estimated sales returns and customer credits at the time the related revenue is recognized. Sales returns and customer credits are estimated based on its historical experience, current trends and its expectations regarding future experience. The Company monitors the accuracy of its sales reserve estimates by reviewing actual returns and credits and adjusts them for its future expectations to determine the adequacy of its current and future reserve needs. If actual future returns and credits differ from past experience, additional reserves may be required. When the Company's services do not meet certain service level commitments, customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company historically has not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, the amount of any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented. Judgments and Estimates The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments ("MRC") on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, of which both represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices ("SSP") of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. Service Revenue Service revenue from subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer until the end of the contractual period. Payments received in advance of subscription services being rendered are recorded as deferred revenue; revenue recognized for services rendered in advance of payments received are recorded as contract assets. Usage fees, when bundled, are billed in advance and recognized over time on a ratable basis over the contractual subscription term, which is usually the monthly contractual billing period. Non-bundled usage fees are recognized as actual usage occurs. Other Revenue Other revenue comprises primarily product revenue and professional services revenue. The Company recognizes product revenue for telephony equipment at a point in time, when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience. Professional services for deployment, configuration, system integration, optimization, customer training or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized as services are performed or upon completion of the deployment. Contract Assets Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example when the initial month's services or equipment are discounted. Contract assets are included in other current assets or other assets in the Company's consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. Deferred Revenue Deferred revenues represent billings or payments received in advance of revenue recognition and are recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding twelve-month period are recorded as deferred revenues, current in the consolidated balance sheets, with the remainder recorded as other liabilities, non-current in the Company's consolidated balance sheets. Deferred Sales Commission Costs Sales commissions are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as deferred sales commission costs, current and deferred sales commission costs, non-current and amortized on a straight-line basis over the anticipated benefit period of five years . The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. ASC 340-40, Other Assets and Deferred Costs - Contracts with Customer s, sets forth the requirement of deferring incremental costs of obtaining a contract, typically sales commissions. The Company applies a practical expedient that permits it to apply Subtopic 340-40 to a portfolio of contracts, instead of on a contract-by-contract basis, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio. |
Cash, Cash Equivalents and Investments | The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At March 31, 2020 and 2019 , all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income (expense), net in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of two major financial institutions. |
Accounts Receivable Allowance | The Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, and communications with its customers. Amounts are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible. |
Operating Lease, Right-Of-Use Assets and Lease Liabilities | The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2030. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one to 10 years. Some of the leases include a Company option to extend the lease term for less than 12 months to five years , or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of the Company's leases do not provide a readily determinable implicit rate, the Company uses the incremental borrowing rate at lease commencement, which was determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the implicit rate when a rate is readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the Company's consolidated balance sheets, and the expense for these short-term leases is recognized on a straight-line basis over the lease term. |
Property and Equipment | Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, software and software development costs, and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements. Maintenance, repairs, and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the consolidated statements of operations. Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2020 and 2019 . |
Accounting for Long-Lived Assets | The Company reviews the recoverability of its long-lived assets, such as property and equipment, right-of-use assets, definite lived intangibles or capitalized software, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. |
Goodwill and Other Intangible Assets | Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. For the year ended March 31, 2018, the Company had determined that it had three reporting units and allocated goodwill to the reporting units for the purposes of its annual impairment test. For the year ended March 31, 2019, the Company has determined it had one reporting unit. The change in reporting units resulted from the following events: • As of April 1, 2018, the Company's DXI operations no longer operated on a standalone basis and was integrated into the Company's existing United Kingdom operations, and • During the third fiscal quarter of 2019, the Company assessed it had only one Chief Operating Decision Maker, who reviewed financial results on a consolidated basis. Following the acquisition of Wavecell in the second quarter of fiscal 2020, the Company considered whether the Chief Operating Decision Maker changed the manner in which financial results were reviewed. Financial results continue to be presented on a consolidated basis, and do not present separately the revenues and costs related to Wavecell on a stand-alone basis. As such, for the year ended March 31, 2020, the Company continued to conclude it had one reporting unit. The Company performs testing for impairment of goodwill on an annual basis, or as events occur or circumstances change that would more likely than not reduce the fair value of the Company’s single reporting unit below its carrying amount. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The Company conducted its annual impairment test of goodwill in the fourth quarter of fiscal 2020 and fiscal 2019 and determined that no adjustment to the carrying value of goodwill was required. Intangible assets, consisting of acquired developed technology, domain names, and customer relationships, acquired in a business combination are initially measured at fair value and were determined to have definite lives. Thereafter, intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to developed technology is included in cost of revenue. Amortization expense related to customer relationships and domain names are included in sales and marketing expense. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. |
Convertible Senior Notes | In accounting for the issuance of the convertible senior notes (the "Notes"), the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective Notes. The equity component is not remeasured as long as it continues to meet the condition for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Notes. The Company allocated the issuance costs incurred to the liability and equity components of the Notes based on their relative fair values. Issuance costs attributable to the liability component were recorded as a reduction to the liability portion of the Notes and are being amortized to interest expense over the term of the Notes. Issuance costs attributable to the equity component, representing the conversion option, were netted with the equity component in stockholders' equity. |
Research & Development and Software Development Costs | Software developed or obtained for internal use in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), is capitalized during the application development stage. In accordance with authoritative guidance, the Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Once the project has been completed, these costs are amortized to cost of service revenue on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three years . Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on the Company's Consolidated Statements of Operations. The Company classifies software development costs associated with the development of the Company's products and services as property and equipment. |
Advertising Costs | Advertising costs are expensed as incurred |
Foreign Currency Translation | The Company has determined that the functional currency of each of its foreign subsidiaries are the subsidiary's local currency. The Company believes that this most appropriately reflects the current economic facts and circumstances of the Company's subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period, and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity. |
Segment Information | The Company has determined the chief executive officer is its chief operating decision maker. The chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The Company has determined that it operates in a single reportable segment. |
Concentrations | Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments. The Company sells its products to customers and distributors. The Company performs credit evaluations of its customers' financial condition and generally does not require collateral from its customers. As of and for the fiscal years ending March 31, 2020 and 2019 , no customer accounted for more than 10% of accounts receivable or revenues. The Company purchases all of its hardware products from suppliers that manufacture the hardware directly, and from their distributors. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows. The Company also relies primarily on third-party network service providers to provide telephone numbers and PSTN call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows. |
Fair Values of Financial Instruments | The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: • Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). • Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions. The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments are recorded at fair value and convertible senior notes payable are recorded at net carrying value. |
Accounting for Stock-Based Compensation | The Company accounts for the fair value of restricted stock units (“RSUs”) using the closing market price of the Company’s common stock on the date of grant. For new-hire grants and annual refresh grants, one-third of the RSUs typically vest on the first anniversary of grant date, and remainder vest on a one-eighth basis quarterly over the subsequent two years . Stock-based compensation cost for RSUs is measured at the grant date based on the estimated fair value of the award and is recognized as expense over the requisite service period (generally the vesting period), net of estimated forfeitures. The Company estimates the fair value of the rights to acquire stock under its 1996 Employee Stock Purchase Plan (the “ESPP”) using the Black-Scholes option pricing formula. The ESPP provides for consecutive six-month offering periods and the Company uses its own historical volatility data in the valuation of shares that are purchased under the ESPP. To value option grants, the Company uses the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. The Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rates were based on the closing market bid yields of actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history of not paying dividends. The Company issued performance stock units ("PSUs") to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2020: • These PSUs vest (1) 50% on September 17, 2021 and (2) 50% on September 17, 2022, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (the "TSR"), such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche. The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2019 : • These PSUs vest (1) 50% on October 23, 2020 and (2) 50% on October 23, 2021, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the TSR, such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche. The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2018 : • These PSUs vest (1) 50% on September 19, 2019 and (2) 50% on September 19, 2020, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the TSR, such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% , relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche. To value these market-based PSUs under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant. Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the Nasdaq Composite Index, risk-free interest rates, and future dividend payments. |
Research and Development Costs | Research and development expenses consist primarily of personnel, consulting and equipment costs necessary for the Company to conduct development and engineering efforts. Research and development costs are expensed as incurred. |
Comprehensive Income (Loss) | Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale. |
Net Income (Loss) Per Share | Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options, ESPP, RSUs and PSUs. The Company would include the dilutive effects of the Notes (see Note 8, "CONVERTIBLE SENIOR NOTES AND CAPPED CALL" in the Notes to Consolidated Financial Statement) in the calculation of diluted net income per common share if the average market price is above the conversion price. Upon conversion of the Notes, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the Notes being converted, therefore, only the conversion spread relating to the Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive. |
Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements Not Yet Effective | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) (“ASU 2016-02”), along with amendments issued in 2018, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Effective April 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective transition approach utilizing the effective date as the date of initial application. ASU 2016-02 establishes a new lease accounting model for leases, which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet, but lease expense will be recognized on the income statement in a manner similar to previous requirements. Prior years presented have not been adjusted for ASU 2016-02 and continue to be reported in accordance with our historical accounting policy. The new standard provides a number of optional practical expedients in transition. The Company has elected certain practical expedients permitted under the new lease standard, which among other things, allows the carryforward of the historical lease classification. As a result, there was no impact to opening retained earnings. The new standard also provides a practical expedient for an entity’s ongoing accounting. The Company has elected such practical expedient not to separate lease and non-lease components for all leases. It also made an accounting policy election to not recognize right-of-use assets and lease liabilities on the balance sheet for leases with a term of 12 months or less and will recognize lease payments as an expense on a straight-line basis over the lease term. The adoption of the new lease standard resulted in the recognition of right-of-use assets and lease liabilities of approximately $20.0 million and $21.4 million , respectively, for existing operating leases. The Company does not have significant finance lease right-of-use assets or liabilities. The adoption of the new lease standard did not have a material impact on the Company's accumulated deficit as of April 1, 2019. See Note 6, "LEASES" in the Notes to Consolidated Financial Statements for additional information on leases. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The amendment will be effective for public companies with fiscal years beginning after December 15, 2020, which is fiscal 2022 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which makes modifications to disclosure requirements on fair value measurements. The amendment is effective for public companies with fiscal years beginning after December 15, 2019, which is fiscal 2021 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), which reduces complexity for the accounting for costs of implementing a cloud computing service arrangement. The amendment is effective for public companies with fiscal years beginning after December 15, 2019, which is fiscal 2021 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments , further amended by ASU 2018-19 issued in November 2019, ASU 2019-04 issued in April 2019, ASU 2019-05 issued in May 2019, ASU 2019-10 issued in November 2019, and ASU 2019-11 issued in November 2019, which replaces the existing impairment model with a forward-looking expected loss method. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in more timely recognition of credit losses. These ASUs are effective for annual and interim periods beginning after December 15, 2019, which is fiscal 2021 for the Company; early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements. |
Guarantees | Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): March 31, 2020 March 31, 2019 Accounts receivable, net $ 37,811 $ 20,181 Contract assets, current $ 10,425 $ 5,717 Contract assets, non-current $ 13,698 $ — Deferred revenue, current $ 7,105 $ 3,336 Deferred revenue, non-current $ 1,119 $ 6 Contract assets, current, contract assets, non-currents, and deferred revenue, non-current are recorded in other current assets, other assets, and other liabilities, non-current, respectively. Changes in the contract assets and the deferred revenue balances during the year ended March 31, 2020 are as follows (in thousands): March 31, 2020 March 31, 2019 $ Change Contract assets $ 24,123 $ 5,717 $ 18,406 Deferred revenue $ 8,224 $ 3,342 $ 4,882 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Cash, cash equivalents and available-for-sale investments were (in thousands): As of March 31, 2020 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 21,002 $ — $ — $ 21,002 $ 21,002 $ — $ — Level 1: Money market funds 110,796 — — 110,796 110,796 — — Treasuries 6,192 116 — 6,308 — — 6,308 Subtotal 137,990 116 — 138,106 131,798 — 6,308 Level 2: Commercial paper 14,979 6 — 14,985 5,596 9,389 — Corporate debt 34,153 32 (341 ) 33,844 — 24,069 9,775 Subtotal 49,132 38 (341 ) 48,829 5,596 33,458 9,775 Total assets $ 187,122 $ 154 $ (341 ) $ 186,935 $ 137,394 $ 33,458 $ 16,083 As of March 31, 2019 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 25,364 $ — $ — $ 25,364 $ 25,364 $ — Level 1: Money market funds 251,219 — — 251,219 251,219 — Subtotal 276,583 — — 276,583 276,583 — Level 2: Corporate debt 46,516 51 (29 ) 46,538 — 46,538 Municipal securities 5,511 17 — 5,528 — 5,528 Asset backed securities 13,596 9 (17 ) 13,588 — 13,588 Agency bond 4,260 — (15 ) 4,245 — 4,245 Subtotal 69,883 77 (61 ) 69,899 — 69,899 Total assets $ 346,466 $ 77 $ (61 ) $ 346,482 $ 276,583 $ 69,899 |
FINANCIAL STATEMENT COMPONENTS
FINANCIAL STATEMENT COMPONENTS (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): March 31, 2020 2019 Computer equipment $ 38,105 $ 34,706 Software development costs 77,635 39,131 Software licenses 1,569 9,713 Leasehold improvements 31,706 6,286 Furniture and fixtures 5,485 2,324 Construction in progress 13,852 10,071 168,352 102,231 Less: accumulated depreciation and amortization (73,970 ) (49,396 ) Total property and equipment, net $ 94,382 $ 52,835 |
Schedule of Other Current Assets | Other current asset consisted of the following (in thousands): March 31, 2020 2019 Prepaid expense $ 14,489 $ 7,891 Contract assets, current 10,425 5,717 Receivable related to lease assignment 6,853 — Other current assets 3,912 1,519 Total other current assets $ 35,679 $ 15,127 |
Other Current Liabilities | Other current liabilities consisted of the following (in thousands): March 31, 2020 2019 Liability related to lease assignment $ 8,969 $ — Acquisition-related holdback cash and shares 18,864 — Accrued liabilities 9,444 6,790 Total other current liabilities $ 37,277 $ 6,790 |
INTANGIBLE ASSETS, GOODWILL A_2
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The carrying value of intangible assets consisted of the following (in thousands): March 31, 2020 March 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 33,932 $ (16,312 ) $ 17,620 $ 25,702 $ (15,409 ) $ 10,293 Customer relationships 11,409 (5,412 ) 5,997 9,467 (8,080 ) 1,387 Trade names and domains 983 (599 ) 384 2,108 (2,108 ) — In-process research and development — — — 95 (95 ) — Total acquired identifiable intangible assets $ 46,324 $ (22,323 ) $ 24,001 $ 37,372 $ (25,692 ) $ 11,680 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At March 31, 2020 , annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount 2021 $ 6,871 2022 4,708 2023 3,156 2024 2,851 2025 and thereafter 6,415 Total $ 24,001 |
Schedule of Goodwill | The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Total Balance at March 31, 2018 $ 40,054 Additions due to acquisitions 500 Foreign currency translation (860 ) Balance at March 31, 2019 39,694 Additions due to acquisitions 91,060 Foreign currency translation (2,454 ) Balance at March 31, 2020 $ 128,300 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Assets and Liabilities, Leases | The following table provides balance sheet information related to operating leases as of March 31, 2020 (in thousands): March 31, 2020 Assets Operating lease, right-of-use assets $ 78,963 Liabilities Operating lease liabilities, current $ 5,875 Operating lease liabilities, non-current 92,452 Total operating lease liabilities $ 98,327 |
Lease, Cost | The following table presents supplemental information for the year ended March 31, 2020 (in thousands, except for weighted average remaining lease term and discount rate): Weighted average remaining lease term 8.9 years Weighted average discount rate 4.0 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 9,856 |
Lessee, Operating Leases, Liability, Maturity | The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2020 (in thousands): 2021 $ 9,765 2022 16,270 2023 15,237 2024 11,722 2025 11,386 Thereafter 58,078 Total lease payments $ 122,458 Less: imputed interest (21,522 ) Less: lease incentives receivable (2,609 ) Present value of lease liabilities $ 98,327 |
CONVERTIBLE SENIOR NOTES AND _2
CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Debt | The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Initial and Additional Notes was as follows (in thousands): Additional Notes Initial Notes Conversion option $ 12,810 $ 66,700 Payments for capped call transactions (9,288 ) (33,724 ) Issuance costs (428 ) (1,848 ) Total $ 3,094 $ 31,128 The net carrying amount of the liability component of the Notes were as follows (in thousands): March 31, 2020 March 31, 2019 Principal $ 362,500 $ 287,500 Unamortized debt discount (69,987 ) (70,876 ) Unamortized issuance costs (976 ) (589 ) Net carrying amount $ 291,537 $ 216,035 |
Interest Income and Interest Expense Disclosure | The following table sets forth total interest expense recognized related to the Notes (in thousands): Years Ended March 31, 2020 2019 Contractual interest expense $ 1,572 $ 156 Amortization of debt discount 13,901 1,343 Amortization of issuance costs 145 11 Total interest expense $ 15,618 $ 1,510 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes stock-based compensation expense (in thousands): Years Ended March 31, 2020 2019 2018 Cost of service revenue $ 5,330 $ 3,752 $ 2,636 Cost of other revenue 3,051 1,775 1,341 Research and development 19,712 12,313 6,625 Sales and marketing 20,205 11,951 6,630 General and administrative 22,580 14,717 11,944 Total $ 70,878 $ 44,508 $ 29,176 |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Stock option activities under all the Company's stock option plans during the years ended March 31, 2020 , 2019 and 2018 are summarized as follows: Number of Shares Weighted Average Exercise Price Per Share Outstanding at March 31, 2017 4,462,412 7.52 Granted 609,135 14.95 Exercised (773,897 ) 3.95 Canceled/Forfeited (299,365 ) 13.05 Outstanding at March 31, 2018 3,998,285 8.93 Granted 236,799 21.65 Exercised (759,884 ) 7.70 Canceled/Forfeited (361,129 ) 15.41 Outstanding at March 31, 2019 3,114,071 9.45 Granted — — Exercised (785,281 ) 8.77 Canceled/Forfeited (54,527 ) 17.01 Outstanding at March 31, 2020 2,274,263 9.50 Vested and expected to vest March 31, 2020 2,255,616 9.42 Exercisable at March 31, 2020 2,115,696 Stock purchase right activities during the years ended March 31, 2020 , 2019 and 2018 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2017 11,370 $ 8.10 1.09 Granted — — Vested and released (6,395 ) 8.26 Forfeited — — Balance at March 31, 2018 4,975 8.10 1.09 Granted — — Vested and released (4,625 ) 7.88 Forfeited (350 ) 7.88 Balance at March 31, 2019 and 2020 — — 0.00 Activities related to PSUs and RSUs during the years ended March 31, 2020 , 2019 and 2018 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2017 4,939,050 $ 11.57 1.55 Granted 3,481,870 14.41 Vested and released (1,833,038 ) 10.27 Forfeited (652,339 ) 12.73 Balance at March 31, 2018 5,935,543 13.51 1.60 Granted 5,726,787 19.77 Vested and released (2,399,371 ) 12.87 Forfeited (1,442,471 ) 16.85 Balance at March 31, 2019 7,820,488 17.68 1.35 Granted 6,431,505 20.62 Vested and released (3,443,335 ) 17.02 Forfeited (1,617,343 ) 19.06 Balance at March 31, 2020 9,191,315 1.89 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Years Ended March 31, 2020 2019 2018 Expected volatility —% 41% 41% Expected dividend yield — — — Risk-free interest rate 0 2.5% to 3.0% 1.8% to 2.4% Weighted average expected term (in years) N/A 4.5 years 4.8 years Weighted average fair value of options granted $— $8.19 $5.70 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: Years Ended March 31, 2020 2019 2018 Expected volatility 32% 41% 40% Expected dividend yield — — — Risk-free interest rate 1.79% 2.43% 1.33% Weighted average expected term (in years) 0.7 years 0.8 years 0.8 years Weighted average fair value of rights granted $5.66 $5.74 $4.10 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | he components of the consolidated provision for income taxes for fiscal 2020 , 2019 and 2018 consisted of the following (in thousands): March 31, Current: 2020 2019 2018 Federal $ — $ — $ (395 ) State 185 291 256 Foreign 647 278 185 Total current tax provision 832 569 46 Deferred Federal — — 59,837 State — — 6,664 Foreign — — (253 ) Total deferred tax provision — — 66,248 Income tax provision $ 832 $ 569 $ 66,294 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and (liabilities) were comprised of the following (in thousands): March 31, 2020 2019 Deferred tax assets Net operating loss carryforwards $ 109,734 $ 61,740 Research and development and other credit carryforwards 19,413 15,573 Stock-based compensation 10,343 9,006 Reserves and allowances 3,974 5,697 Lease liability 24,492 — Fixed assets and intangibles 5,314 2,709 Gross deferred tax assets 173,270 94,725 Valuation allowance (115,435 ) (65,948 ) Total deferred tax assets $ 57,835 $ 28,777 Deferred tax liabilities Deferred sales commissions (21,608 ) (12,221 ) Convertible debt (16,626 ) (16,556 ) Lease asset (19,601 ) — Net deferred taxes $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands): Years Ended March 31, 2020 2019 2018 Tax benefit at statutory rate $ (36,163 ) $ (18,441 ) $ (11,790 ) State income taxes before valuation allowance, net of federal effect (7,680 ) (3,612 ) (1,042 ) Foreign tax rate differential (1,422 ) 71 (1,188 ) Research and development credits (3,892 ) (3,744 ) (2,189 ) Change in valuation allowance 51,741 30,558 56,663 Compensation/option differences (6,584 ) (7,277 ) (4,965 ) Non-deductible compensation 3,017 1,200 1,132 Tax Act rate change impact — — 22,630 Foreign loss not benefited 107 159 6,847 Other 1,708 1,655 196 Total income tax provision (benefit) $ 832 $ 569 $ 66,294 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Unrecognized Tax Benefits 2020 2019 2018 Balance at beginning of year $ 5,033 $ 3,980 $ 3,331 Gross increases - tax position in prior period — 17 — Gross increases - tax position related to the current year 1,082 1,036 649 Balance at end of year $ 6,115 $ 5,033 $ 3,980 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except share and per share data): Years Ended March 31, 2020 2019 2018 Numerator: Net loss available to common stockholders $ (172,368 ) $ (88,739 ) $ (104,497 ) Denominator: Denominator for basic and diluted calculation 99,999 94,533 92,017 Net loss per share - basic and diluted $ (1.72 ) $ (0.94 ) $ (1.14 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the potentially dilutive common shares that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands): Years Ended March 31, 2020 2019 2018 Stock options 2,274 3,114 3,998 Restricted stock units 9,191 7,820 5,940 Potential shares to be issued from ESPP 582 473 475 Total anti-dilutive shares 12,047 11,407 10,413 |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth the geographic information for each period (in thousands): Revenue for the Years Ended March 31, 2020 2019 2018 United States $ 350,368 $ 304,378 $ 266,034 International 95,869 48,208 30,466 Total revenue $ 446,237 $ 352,586 $ 296,500 |
Long-lived Assets by Geographic Areas | Property and Equipment as of March 31, 2020 2019 United States $ 87,673 $ 45,639 International 6,709 7,196 Total property and equipment, net $ 94,382 $ 52,835 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company has preliminarily allocated the fair value of purchase consideration were as follows (in thousands): July 17, 2019 Cash $ 4,473 Accounts receivable 9,438 Intangible assets 21,010 Other assets 787 Goodwill 91,060 Accounts payable (9,548 ) Deferred revenue (90 ) Total consideration $ 117,130 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The preliminary value of the acquired intangible assets acquired are as follows (in thousands): Fair Value Useful life (in Years) Trade and domain names $ 990 0.8 Developed technology 13,830 7 Customer relationships 6,190 7 Total intangible assets $ 21,010 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | In thousands, except per share data amounts: Quarters Ended March 31, Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 March 31, Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Total revenues $ 121,478 $ 118,567 109,517 $ 96,675 $ 93,767 $ 89,912 $ 85,682 $ 83,225 Gross profit 63,857 62,348 59,820 58,984 59,174 56,962 54,083 52,395 Loss from operations (46,154 ) (43,168 ) (37,944 ) (32,553 ) (27,425 ) (24,238 ) (21,987 ) (15,983 ) Net income (loss) (50,100 ) (47,071 ) (40,932 ) (34,265 ) (28,131 ) (23,771 ) (21,482 ) (15,355 ) Net income (loss) per share: Basic and diluted $ (0.49 ) $ (0.47 ) $ (0.42 ) $ (0.36 ) $ (0.29 ) $ (0.25 ) $ (0.23 ) $ (0.16 ) |
THE COMPANY AND SIGNIFICANT A_3
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2020USD ($)reporting_unit | Mar. 31, 2019USD ($)reporting_unit | Mar. 31, 2018USD ($) | Jul. 03, 2019 | Apr. 01, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Capitalized contract cost, amortization period | 5 years | ||||
Term of contract | 132 months | 132 months | |||
Renewal term | 12 months | ||||
Number of reporting units | reporting_unit | 1 | 3 | |||
Advertising expense | $ 32,200 | $ 25,000 | $ 14,500 | ||
Operating lease, right-of-use assets | 78,963 | ||||
Present value of lease liabilities | $ 98,327 | ||||
Share-based Compensation Award, Tranche One | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 33.33% | ||||
Vesting period | 1 year | ||||
Share-based Compensation Award, Tranche One | Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50.00% | 50.00% | 50.00% | ||
Share-based Compensation Award, Tranche Two | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Share-based Compensation Award, Tranche Two | Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50.00% | 50.00% | 50.00% | ||
Percentage increase (decrease) in shares earned per 1% change in total shareholder returns | 2.00% | 2.00% | 2.00% | ||
Minimum percentage of common stock performance | (30.00%) | (30.00%) | (30.00%) | ||
Maximum percentage of number of shares issued per tranche | 200.00% | 200.00% | 200.00% | ||
Equipment | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Software and Software Development Costs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Furniture and fixtures | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Computer Software, Intangible Asset | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Accounting Standards Update 2016-02 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Operating lease, right-of-use assets | $ 20,000 | ||||
Present value of lease liabilities | $ 21,400 | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of contract | 1 year | ||||
Renewal term | 12 months | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of contract | 10 years | ||||
Renewal term | 5 years |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract with customer, liability, revenue recognized | $ 3 |
Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Subscription term | 1 year |
Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Subscription term | 5 years |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 37,811 | $ 20,181 |
Contract assets, current | 10,425 | 5,717 |
Contract assets, non-current | 13,698 | 0 |
Deferred revenue, current | 7,105 | 3,336 |
Deferred revenue, non-current | $ 1,119 | $ 6 |
REVENUE RECOGNITION - Changes i
REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 24,123 | $ 5,717 |
Change in contract assets | 18,406 | |
Deferred revenue | 8,224 | $ 3,342 |
Change in deferred revenue | $ 4,882 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 270 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 36 months |
FAIR VALUE MEASUREMENTS - Cash,
FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 137,394 | $ 276,583 | $ 31,703 |
Accumulated gross unrealized gain, before tax | 154 | 77 | |
Accumulated gross unrealized loss, before tax | (341) | (61) | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 187,122 | 346,466 | |
Cash, cash equivalents and debt securities available-for-sale | 186,935 | 346,482 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 276,583 | ||
Cash and cash equivalents, fair value disclosure | 276,583 | ||
Accumulated gross unrealized gain, before tax | 116 | ||
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 137,990 | ||
Cash, cash equivalents and debt securities available-for-sale | 138,106 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 49,132 | 69,883 | |
Accumulated gross unrealized gain, before tax | 38 | 77 | |
Accumulated gross unrealized loss, before tax | (341) | (61) | |
Debt securities, available-for-sale | 48,829 | 69,899 | |
Treasuries | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 6,192 | ||
Accumulated gross unrealized gain, before tax | 116 | ||
Debt securities, available-for-sale | 6,308 | ||
Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 14,979 | ||
Accumulated gross unrealized gain, before tax | 6 | ||
Accumulated gross unrealized loss, before tax | 0 | ||
Debt securities, available-for-sale | 14,985 | ||
Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 34,153 | 46,516 | |
Accumulated gross unrealized gain, before tax | 32 | 51 | |
Accumulated gross unrealized loss, before tax | (341) | (29) | |
Debt securities, available-for-sale | 33,844 | 46,538 | |
Municipal securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 5,511 | ||
Accumulated gross unrealized gain, before tax | 17 | ||
Accumulated gross unrealized loss, before tax | 0 | ||
Debt securities, available-for-sale | 5,528 | ||
Asset backed securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 13,596 | ||
Accumulated gross unrealized gain, before tax | 9 | ||
Accumulated gross unrealized loss, before tax | (17) | ||
Debt securities, available-for-sale | 13,588 | ||
Agency bond | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 4,260 | ||
Accumulated gross unrealized gain, before tax | 0 | ||
Accumulated gross unrealized loss, before tax | (15) | ||
Debt securities, available-for-sale | 4,245 | ||
Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 276,583 | ||
Cash, cash equivalents and debt securities available-for-sale | 137,394 | ||
Cash and Cash Equivalents | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 276,583 | ||
Cash, cash equivalents and debt securities available-for-sale | 131,798 | ||
Cash and Cash Equivalents | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 5,596 | ||
Cash and Cash Equivalents | Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 5,596 | ||
Short-Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 69,899 | ||
Cash, cash equivalents and debt securities available-for-sale | 33,458 | ||
Short-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 33,458 | 69,899 | |
Short-Term Investments | Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 9,389 | ||
Short-Term Investments | Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 24,069 | 46,538 | |
Short-Term Investments | Municipal securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 5,528 | ||
Short-Term Investments | Asset backed securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 13,588 | ||
Short-Term Investments | Agency bond | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 4,245 | ||
Long-Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 16,083 | ||
Long-Term Investments | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 6,308 | ||
Long-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 9,775 | ||
Long-Term Investments | Treasuries | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 6,308 | ||
Long-Term Investments | Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 9,775 | ||
Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 21,002 | 25,364 | |
Cash and cash equivalents, fair value disclosure | 21,002 | 25,364 | |
Cash | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 21,002 | 25,364 | |
Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 110,796 | 251,219 | |
Cash and cash equivalents, fair value disclosure | 110,796 | 251,219 | |
Money market funds | Cash and Cash Equivalents | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 110,796 | $ 251,219 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Convertible debt, fair value | $ 309.6 |
FINANCIAL STATEMENT COMPONENT_2
FINANCIAL STATEMENT COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 168,352 | $ 102,231 |
Less: accumulated depreciation and amortization | (73,970) | (49,396) |
Net | 94,382 | 52,835 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 38,105 | 34,706 |
Software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 77,635 | 39,131 |
Software licenses | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 1,569 | 9,713 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 31,706 | 6,286 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 5,485 | 2,324 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 13,852 | $ 10,071 |
FINANCIAL STATEMENT COMPONENT_3
FINANCIAL STATEMENT COMPONENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 28.4 | $ 18.5 | $ 10.7 |
FINANCIAL STATEMENT COMPONENT_4
FINANCIAL STATEMENT COMPONENTS - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Prepaid expense | $ 14,489 | $ 7,891 |
Contract assets, current | 10,425 | 5,717 |
Receivable related to lease assignment | 6,853 | 0 |
Other current assets | 3,912 | 1,519 |
Total other current assets | $ 35,679 | $ 15,127 |
FINANCIAL STATEMENT COMPONENT_5
FINANCIAL STATEMENT COMPONENTS - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Liability related to lease assignment | $ 8,969 | $ 0 |
Acquisition-related holdback cash and shares | 18,864 | 0 |
Accrued liabilities | 9,444 | 6,790 |
Total other current liabilities | $ 37,277 | $ 6,790 |
INTANGIBLE ASSETS, GOODWILL A_3
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Schedule Of Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 46,324 | $ 37,372 |
Accumulated Amortization | (22,323) | (25,692) |
Net Carrying Amount | 24,001 | 11,680 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,932 | 25,702 |
Accumulated Amortization | (16,312) | (15,409) |
Net Carrying Amount | 17,620 | 10,293 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,409 | 9,467 |
Accumulated Amortization | (5,412) | (8,080) |
Net Carrying Amount | 5,997 | 1,387 |
Trade names and domains | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 983 | 2,108 |
Accumulated Amortization | (599) | (2,108) |
Net Carrying Amount | 384 | 0 |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | 95 |
Accumulated Amortization | 0 | (95) |
Net Carrying Amount | $ 0 | $ 0 |
INTANGIBLE ASSETS, GOODWILL A_4
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 8,842,000 | $ 6,175,000 | $ 5,033,000 |
Fully amortized intangible asset written off | 11,300,000 | ||
Capitalized contract cost, amortization | 19,500,000 | 14,200,000 | |
Capitalized contract cost, impairment loss | $ 0 | $ 0 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, remaining amortization period | 4 years 10 months 24 days | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, remaining amortization period | 5 years 9 months 18 days | ||
Trade names and domains | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, remaining amortization period | 1 month 6 days |
INTANGIBLE ASSETS, GOODWILL A_5
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 6,871 |
2022 | 4,708 |
2023 | 3,156 |
2024 | 2,851 |
2025 and thereafter | 6,415 |
Total | $ 24,001 |
INTANGIBLE ASSETS, GOODWILL A_6
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Changes in Carrying Amount of Goodwill by Location (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 39,694 | $ 40,054 |
Additions due to acquisitions | 91,060 | 500 |
Foreign currency translation | (2,454) | (860) |
Goodwill, ending balance | $ 128,300 | $ 39,694 |
LEASES - Components of Lease Ri
LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Assets | |
Operating lease, right-of-use assets | $ 78,963 |
Liabilities | |
Operating lease liabilities, current | 5,875 |
Operating lease liabilities, non-current | 92,452 |
Total operating lease liabilities | $ 98,327 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | Jul. 03, 2019USD ($)ft²termstory | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018ft² |
Leases [Abstract] | ||||
Operating lease cost | $ 15,000 | |||
Variable lease, cost | 1,600 | |||
Area of real estate property | ft² | 177,815 | 162,000 | ||
Number of building stories | story | 5 | |||
Term of contract | 132 months | 132 months | ||
Number of renewal terms | term | 2 | |||
Base rent | $ 700 | |||
Renewal term | 12 months | |||
Annual percentage increase in base rent | 3.00% | |||
Tenant improvements | $ 15,400 | |||
Security deposit | 2,000 | |||
Increase in operating lease right-of-use asset | 56,800 | |||
Increase in operating lease liability | $ 56,100 | |||
Liability related to lease assignment | 8,969 | $ 0 | ||
Termination fee | 800 | |||
Receivable related to lease assignment | $ 6,853 | $ 0 |
LEASES - Supplemental Informati
LEASES - Supplemental Information (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term | 8 years 10 months 24 days |
Weighted average discount rate | 4.00% |
Operating cash flow from operating leases | $ 9,856 |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 9,765 |
2022 | 16,270 |
2023 | 15,237 |
2024 | 11,722 |
2025 | 11,386 |
Thereafter | 58,078 |
Total lease payments | 122,458 |
Less: imputed interest | (21,522) |
Less: lease incentives receivable | (2,609) |
Present value of lease liabilities | $ 98,327 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
State and Local Taxes and Surcharges | ||
Lessee, Lease, Description [Line Items] | ||
Accrued contingent indirect tax liabilities | $ 4.5 | $ 8 |
Third-Party Customer Support Commitments | ||
Lessee, Lease, Description [Line Items] | ||
Other commitment | $ 4.2 |
CONVERTIBLE SENIOR NOTES AND _3
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019USD ($) | Feb. 28, 2019USD ($)day$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Dec. 01, 2019USD ($) | Mar. 31, 2019USD ($)$ / shares | |
Debt Instrument [Line Items] | |||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Debt issuance costs, net | $ 600,000 | ||||
Convertible Debt | Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 287,500,000 | $ 362,500,000 | $ 287,500,000 | ||
Debt instrument, interest rate | 0.50% | ||||
Proceeds from issuance of debt | $ 245,800,000 | ||||
Debt instrument, convertible, conversion ratio | 0.0389484 | ||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | ||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 25.68 | ||||
Debt instrument, convertible, threshold trading days | day | 20 | ||||
Debt instrument, convertible, threshold consecutive trading days | day | 30 | ||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||||
Debt instrument, convertible, measurement period | day | 5 | ||||
Debt instrument, convertible, threshold consecutive trading days preceding measurement period | day | 10 | ||||
Debt instrument, threshold percentage of sales price per share | 98.00% | ||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Debt instrument, strike price per share (in dollars per share) | $ / shares | $ 25.68 | ||||
Debt instrument, initial cap price per share (in dollars per share) | $ / shares | $ 39.50 | ||||
Convertible Debt | Additional Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 75,000,000 | ||||
Debt instrument, interest rate | 0.50% | ||||
Proceeds from issuance of debt | $ 64,600,000 | ||||
Conversion option | $ 12,400,000 | ||||
Debt instrument, effective interest rate | 5.30% | ||||
Payments for capped call transactions | $ 9,300,000 | 9,288,000 | |||
Convertible Debt | Initial Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 287,500,000 | ||||
Debt instrument, interest rate | 0.50% | ||||
Conversion option | $ 64,900,000 | ||||
Debt instrument, effective interest rate | 6.50% | ||||
Payments for capped call transactions | $ 33,700,000 | $ 33,724,000 | |||
Convertible Debt | Aggregate Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 362,500,000 | ||||
Call Option | Convertible Debt | Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Option indexed to issuer's equity, indexed shares (in shares) | shares | 14.1 |
CONVERTIBLE SENIOR NOTES AND _4
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Carrying Amount of the Liability Component (Details) - Convertible Debt - Convertible Senior Notes - USD ($) | Mar. 31, 2020 | Mar. 31, 2019 | Feb. 28, 2019 |
Debt Instrument [Line Items] | |||
Principal | $ 362,500,000 | $ 287,500,000 | $ 287,500,000 |
Unamortized debt discount | (69,987,000) | (70,876,000) | |
Unamortized issuance costs | (976,000) | (589,000) | |
Net carrying amount | $ 291,537,000 | $ 216,035,000 |
CONVERTIBLE SENIOR NOTES AND _5
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Interest Expense (Details) - Convertible Debt - Convertible Senior Notes - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 1,572 | $ 156 |
Amortization of debt discount | 13,901 | 1,343 |
Amortization of issuance costs | 145 | 11 |
Total interest expense | $ 15,618 | $ 1,510 |
CONVERTIBLE SENIOR NOTES AND _6
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Net Impact to Stockholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | |||
Total | $ 3,094 | $ 31,128 | |
Convertible Debt | Additional Notes | |||
Debt Instrument [Line Items] | |||
Conversion option | 12,810 | ||
Payments for capped call transactions | $ (9,300) | (9,288) | |
Issuance costs | (428) | ||
Total | 3,094 | ||
Convertible Debt | Initial Notes | |||
Debt Instrument [Line Items] | |||
Conversion option | 66,700 | ||
Payments for capped call transactions | $ (33,700) | (33,724) | |
Issuance costs | (1,848) | ||
Total | $ 31,128 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | Sep. 18, 2006 | Jan. 01, 2005 | Dec. 31, 2004 | Aug. 31, 2017 | May 31, 2017 | May 31, 2006 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Jun. 30, 2018 | Oct. 31, 2017 | Aug. 31, 2016 | Jul. 31, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2012 | Jun. 30, 1996 |
2017 Repurchase Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock repurchase program, authorized amount | $ 25,000,000 | ||||||||||||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 7,100,000 | ||||||||||||||||||||
2006 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 7,000,000 | ||||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 0 | ||||||||||||||||||||
2012 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 4,100,000 | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 17,700,000 | ||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 12,000,000 | 16,300,000 | 4,500,000 | 6,800,000 | |||||||||||||||||
2013 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 1,000,000 | ||||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 0 | ||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 1,200,000 | 1,200,000 | |||||||||||||||||||
2017 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 1,000,000 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 500,000 | ||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 1,500,000 | ||||||||||||||||||||
Employee Stock Option | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Total intrinsic value of options exercised | $ 10,100,000 | $ 10,000,000 | $ 9,000,000 | ||||||||||||||||||
Unamortized stock-based compensation expense | $ 122,100,000 | ||||||||||||||||||||
Weighted average period of recognition for unrecognized compensation expense | 1 year 10 months 24 days | ||||||||||||||||||||
Employee Stock | Employee Stock Purchase Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 500,000 | 500,000 | |||||||||||||||||||
Unamortized stock-based compensation expense | $ 1,100,000 | ||||||||||||||||||||
Weighted average period of recognition for unrecognized compensation expense | 6 months | ||||||||||||||||||||
Term of extension | 10 years | 10 years | 10 years | 10 years | |||||||||||||||||
Value of shares issued under employee stock purchase plan | $ 600,000 | $ 500,000 | $ 400,000 | ||||||||||||||||||
Percentage of market value price of common stock under Employee Stock Purchase Plan | 85.00% | ||||||||||||||||||||
Duration of offering period | 1 year | 2 years | |||||||||||||||||||
Duration of purchase period | 6 months | ||||||||||||||||||||
Maximum contribution percentage amount of employee's base compensation | 10.00% | ||||||||||||||||||||
Minimum | Restricted Stock Units (RSUs) | 2012 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Maximum | Restricted Stock Units (RSUs) | 2012 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||||
Forecast | Employee Stock | Employee Stock Purchase Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Maximum contribution percentage amount of employee's base compensation | 20.00% |
STOCKHOLDERS' EQUITY - Stock-Ba
STOCKHOLDERS' EQUITY - Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | $ 70,878 | $ 44,508 | $ 29,176 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 19,712 | 12,313 | 6,625 |
Selling and Marketing Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 20,205 | 11,951 | 6,630 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 22,580 | 14,717 | 11,944 |
Service | Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 5,330 | 3,752 | 2,636 |
Other revenue | Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | $ 3,051 | $ 1,775 | $ 1,341 |
STOCKHOLDERS' EQUITY - Option A
STOCKHOLDERS' EQUITY - Option Activity (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 3,114,071 | 3,998,285 | 4,462,412 |
Granted (in shares) | 0 | 236,799 | 609,135 |
Exercised (in shares) | (785,281) | (759,884) | (773,897) |
Canceled/forfeited (in shares) | (54,527) | (361,129) | (299,365) |
Outstanding, ending balance (in shares) | 2,274,263 | 3,114,071 | 3,998,285 |
Vested and expected to vest, end of period (in shares) | 2,255,616 | ||
Exercisable, end of period (in shares) | 2,115,696 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding, beginning balance (in dollars per share) | $ 9.45 | $ 8.93 | $ 7.52 |
Granted (in dollars per share) | 0 | 21.65 | 14.95 |
Exercised (in dollars per share) | 8.77 | 7.70 | 3.95 |
Canceled/Forfeited (in dollars per share) | 17.01 | 15.41 | 13.05 |
Outstanding, ending balance (in dollars per share) | 9.50 | $ 9.45 | $ 8.93 |
Vested and expected to vest, ending balance (in dollars per share) | 9.42 | ||
Exercisable, end of period (in dollars per share) |
STOCKHOLDERS' EQUITY - Stock Pu
STOCKHOLDERS' EQUITY - Stock Purchase Right and Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Purchase Right | ||||
Number of Shares | ||||
Beginning balance (in shares) | 0 | 4,975 | 11,370 | |
Granted (in shares) | 0 | 0 | ||
Vested and released (in shares) | (4,625) | (6,395) | ||
Forfeited (in shares) | (350) | 0 | ||
Ending balance (in shares) | 0 | 4,975 | 11,370 | |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 0 | $ 8.10 | $ 8.10 | |
Granted (in dollars per share) | 0 | 0 | ||
Vested and released (in dollars per share) | 7.88 | 8.26 | ||
Forfeited (in dollars per share) | 7.88 | 0 | ||
Ending balance (in dollars per share) | $ 0 | $ 8.10 | $ 8.10 | |
Weighted Average Remaining Contractual Term (in Years) | 0 years | 1 year 1 month 2 days | 1 year 1 month 2 days | |
Performance Stock Units And Restricted Stock Units | ||||
Number of Shares | ||||
Beginning balance (in shares) | 7,820,488 | 5,935,543 | 4,939,050 | |
Granted (in shares) | 6,431,505 | 5,726,787 | 3,481,870 | |
Vested and released (in shares) | (3,443,335) | (2,399,371) | (1,833,038) | |
Forfeited (in shares) | (1,617,343) | (1,442,471) | (652,339) | |
Ending balance (in shares) | 9,191,315 | 7,820,488 | 5,935,543 | 4,939,050 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 17.68 | $ 13.51 | $ 11.57 | |
Granted (in dollars per share) | 20.62 | 19.77 | 14.41 | |
Vested and released (in dollars per share) | 17.02 | 12.87 | 10.27 | |
Forfeited (in dollars per share) | 19.06 | 16.85 | 12.73 | |
Ending balance (in dollars per share) | $ 17.68 | $ 13.51 | $ 11.57 | |
Weighted Average Remaining Contractual Term (in Years) | 1 year 10 months 20 days | 1 year 4 months 6 days | 1 year 7 months 6 days | 1 year 6 months 18 days |
STOCKHOLDERS' EQUITY - Assumpti
STOCKHOLDERS' EQUITY - Assumptions Used In Black-Scholes Model (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 0.00% | 41.00% | 41.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, minimum | 0.00% | 2.50% | 1.80% |
Risk-free interest rate, maximum | 0.00% | 3.00% | 2.40% |
Weighted average expected term (in years) | 4 years 6 months | 4 years 9 months 18 days | |
Weighted average fair value of options granted (in dollars per share) | $ 0 | $ 8.19 | $ 5.70 |
Stock Purchase Right | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 32.00% | 41.00% | 40.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.79% | 2.43% | 1.33% |
Weighted average expected term (in years) | 21 days | 24 days | 24 days |
Weighted average fair value of options granted (in dollars per share) | $ 5.66 | $ 5.74 | $ 4.10 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||||
Deferred tax asset adjustment due to change in enacted tax rate | $ 23,000,000 | $ 0 | $ 0 | $ 22,630,000 | ||
Provision for income taxes | 832,000 | 569,000 | 66,294,000 | |||
Undistributed earnings (losses) of foreign subsidiaries | 9,000,000 | 200,000 | (19,700,000) | |||
Deferred tax assets, valuation allowance | 115,435,000 | 65,948,000 | ||||
Federal tax rate | 34.00% | |||||
Unrecognized tax benefits | 6,115,000 | 5,033,000 | 3,980,000 | $ 3,331,000 | ||
Accrued penalties and interest | 0 | $ 0 | $ 0 | |||
Internal Revenue Service (IRS) | ||||||
Income Tax Contingency [Line Items] | ||||||
Research tax credit carryforwards | 12,900,000 | |||||
State and Local Jurisdiction | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | 203,700,000 | |||||
Research tax credit carryforwards | 14,100,000 | |||||
Tax Year 2019 And 2020 | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | 280,500,000 | |||||
Tax Years Prior To 2019 | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | $ 156,300,000 |
INCOME TAXES - Income Tax Provi
INCOME TAXES - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Current: | |||
Federal | $ 0 | $ 0 | $ (395) |
State | 185 | 291 | 256 |
Foreign | 647 | 278 | 185 |
Total current tax provision | 832 | 569 | 46 |
Deferred | |||
Federal | 0 | 0 | 59,837 |
State | 0 | 0 | 6,664 |
Foreign | 0 | 0 | (253) |
Total deferred tax provision | 0 | 0 | 66,248 |
Total income tax provision (benefit) | $ 832 | $ 569 | $ 66,294 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 109,734 | $ 61,740 |
Research and development and other credit carryforwards | 19,413 | 15,573 |
Stock-based compensation | 10,343 | 9,006 |
Reserves and allowances | 3,974 | 5,697 |
Lease liability | 24,492 | |
Fixed assets and intangibles | 5,314 | 2,709 |
Gross deferred tax assets | 173,270 | 94,725 |
Valuation allowance | (115,435) | (65,948) |
Total deferred tax assets | 57,835 | 28,777 |
Deferred tax liabilities | ||
Deferred sales commissions | (21,608) | (12,221) |
Convertible debt | (16,626) | (16,556) |
Lease asset | (19,601) | |
Net deferred taxes | $ 0 | $ 0 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Taxes Provided to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Tax benefit at statutory rate | $ (36,163) | $ (18,441) | $ (11,790) | |
State income taxes before valuation allowance, net of federal effect | (7,680) | (3,612) | (1,042) | |
Foreign tax rate differential | (1,422) | 71 | (1,188) | |
Research and development credits | (3,892) | (3,744) | (2,189) | |
Change in valuation allowance | 51,741 | 30,558 | 56,663 | |
Compensation/option differences | (6,584) | (7,277) | (4,965) | |
Non-deductible compensation | 3,017 | 1,200 | 1,132 | |
Tax Act rate change impact | $ 23,000 | 0 | 0 | 22,630 |
Foreign loss not benefited | 107 | 159 | 6,847 | |
Other | 1,708 | 1,655 | 196 | |
Total income tax provision (benefit) | $ 832 | $ 569 | $ 66,294 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 5,033 | $ 3,980 | $ 3,331 |
Gross increases - tax position in prior period | 0 | 17 | 0 |
Gross increases - tax position related to the current year | 1,082 | 1,036 | 649 |
Balance at end of year | $ 6,115 | $ 5,033 | $ 3,980 |
NET LOSS PER SHARE - Basic and
NET LOSS PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | |||||||||||
Net loss available to common stockholders | $ (50,100) | $ (47,071) | $ (40,932) | $ (34,265) | $ (28,131) | $ (23,771) | $ (21,482) | $ (15,355) | $ (172,368) | $ (88,739) | $ (104,497) |
Denominator: | |||||||||||
Denominator for basic and diluted calculation (in shares) | 99,999 | 94,533 | 92,017 | ||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (0.49) | $ (0.47) | $ (0.42) | $ (0.36) | $ (0.29) | $ (0.25) | $ (0.23) | $ (0.16) | $ (1.72) | $ (0.94) | $ (1.14) |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of Antidilutive Awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 12,047 | 11,407 | 10,413 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 2,274 | 3,114 | 3,998 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 9,191 | 7,820 | 5,940 |
Potential shares to be issued from ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 582 | 473 | 475 |
GEOGRAPHICAL INFORMATION (Detai
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 121,478 | $ 118,567 | $ 109,517 | $ 96,675 | $ 93,767 | $ 89,912 | $ 85,682 | $ 83,225 | $ 446,237 | $ 352,586 | $ 296,500 |
Property and equipment, net | 94,382 | 52,835 | 94,382 | 52,835 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 350,368 | 304,378 | 266,034 | ||||||||
Property and equipment, net | 87,673 | 45,639 | 87,673 | 45,639 | |||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 95,869 | 48,208 | $ 30,466 | ||||||||
Property and equipment, net | $ 6,709 | $ 7,196 | $ 6,709 | $ 7,196 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions | Jul. 17, 2019 | Oct. 29, 2018 | Apr. 12, 2018 | Mar. 31, 2020 |
Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred | $ 117.1 | |||
Payments to acquire businesses, gross | 72.8 | |||
Business combination, consideration transferred, equity interests issued and issuable | $ 44.3 | |||
Vesting period | 3 years | |||
Business combination, acquisition related costs | $ 1.8 | |||
Unamortized stock-based compensation expense | $ 15.1 | |||
Weighted average period of recognition for unrecognized compensation expense | 2 years 3 months 18 days | |||
Developed technology | MarianaIQ | ||||
Business Acquisition [Line Items] | ||||
Useful life (in Years) | 2 years | |||
Finite-lived intangible assets, remaining amortization period | 2 years | |||
Developed technology | Jitsi | ||||
Business Acquisition [Line Items] | ||||
Useful life (in Years) | 2 years | |||
Finite-lived intangible assets, remaining amortization period | 2 years | |||
Developed technology | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Useful life (in Years) | 7 years | |||
Restricted Cash, Current And Other Accrued Liabilities | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, indemnification assets, cash held back | $ 10.4 | |||
Other Accrued Liabilities, Current | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, indemnification assets, equity held back | 8.5 | |||
Time-Based Restricted Stock Awards | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred, equity interests issued and issuable | 13.2 | |||
Performance-Based Restricted Stock Awards | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred, equity interests issued and issuable | $ 6.6 |
ACQUISITIONS - Allocation of th
ACQUISITIONS - Allocation of the Fair Value of Purchase Consideration (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jul. 17, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 128,300 | $ 39,694 | $ 40,054 | |
Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 4,473 | |||
Accounts receivable | 9,438 | |||
Intangible assets | 21,010 | |||
Other assets | 787 | |||
Goodwill | 91,060 | |||
Accounts payable | (9,548) | |||
Deferred revenue | (90) | |||
Total consideration | $ 117,130 |
ACQUISITIONS - Fair Value Intan
ACQUISITIONS - Fair Value Intangible Assets Acquired (Details) - Wavecell Pte. Ltd. $ in Thousands | Jul. 17, 2019USD ($) |
Business Acquisition [Line Items] | |
Total intangible assets | $ 21,010 |
Trade and domain names | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 990 |
Useful life (in Years) | 9 months 18 days |
Developed technology | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 13,830 |
Useful life (in Years) | 7 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 6,190 |
Useful life (in Years) | 7 years |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 121,478 | $ 118,567 | $ 109,517 | $ 96,675 | $ 93,767 | $ 89,912 | $ 85,682 | $ 83,225 | $ 446,237 | $ 352,586 | $ 296,500 |
Gross profit | 63,857 | 62,348 | 59,820 | 58,984 | 59,174 | 56,962 | 54,083 | 52,395 | |||
Loss from operations | (46,154) | (43,168) | (37,944) | (32,553) | (27,425) | (24,238) | (21,987) | (15,983) | (159,819) | (89,633) | (41,896) |
Net income (loss) | $ (50,100) | $ (47,071) | $ (40,932) | $ (34,265) | $ (28,131) | $ (23,771) | $ (21,482) | $ (15,355) | $ (172,368) | $ (88,739) | $ (104,497) |
Net income (loss) per share: | |||||||||||
Basic and diluted (in dollars per share) | $ (0.49) | $ (0.47) | $ (0.42) | $ (0.36) | $ (0.29) | $ (0.25) | $ (0.23) | $ (0.16) | $ (1.72) | $ (0.94) | $ (1.14) |
SCHEDULE II (Details)
SCHEDULE II (Details) - Total Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 864 | $ 904 | $ 954 |
Additions Charged to Expenses | 3,067 | 1,115 | 250 |
Deductions | (825) | (1,155) | (300) |
Balance at End of Year | $ 3,106 | $ 864 | $ 904 |
Uncategorized Items - a8x833120
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 39,901,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 17,643,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 39,901,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 17,643,000 |