NetScout Systems (NTCT) 10-Q 8 Feb 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Dec. 31, 2023	Jan. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	000-26251
Entity Registrant Name	NETSCOUT SYSTEMS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-2837575
Entity Address, Address Line One	310 Littleton Road
Entity Address, City or Town	Westford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01886
City Area Code	978
Local Phone Number	614-4000
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	NTCT
Security Exchange Name	NASDAQ
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 Common Stock, Shares Outstanding (in shares)		71,035,053
Entity Central Index Key	0001078075
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 297,655	$ 386,794
Marketable securities and investments	31,457	32,204
Accounts receivable and unbilled costs, net of allowance for doubtful accounts of $1,076 and $675 at December 31, 2023 and March 31, 2023, respectively	221,574	143,855
Inventories and deferred costs	15,342	17,956
Prepaid income taxes	14,946	2,235
Prepaid expenses and other current assets	28,344	34,316
Total current assets	609,318	617,360
Fixed assets, net	27,955	34,735
Operating lease right-of-use assets	44,977	51,456
Goodwill	1,551,541	1,724,404
Intangible assets, net	323,899	366,591
Deferred income taxes	19,518	4,534
Long-term marketable securities	1,010	8,940
Other assets	11,581	12,540
Total assets	2,589,799	2,820,560
Current liabilities:
Accounts payable	15,132	16,473
Accrued compensation	42,283	83,279
Accrued other	17,844	26,283
Income taxes payable	1,604	4,391
Deferred revenue and customer deposits	293,410	311,531
Current portion of operating lease liabilities	11,979	11,650
Total current liabilities	382,252	453,607
Other long-term liabilities	7,312	7,683
Deferred tax liability	4,505	24,939
Accrued long-term retirement benefits	26,310	26,049
Long-term deferred revenue and customer deposits	124,619	129,814
Operating lease liabilities, net of current portion	40,898	48,819
Long-term debt	100,000	100,000
Total liabilities	685,896	790,911
Commitments and contingencies (Note 14)
Preferred stock, $0.001 par value:
5,000,000 shares authorized; no shares issued or outstanding at December 31, 2023 and March 31, 2023	0	0
Common stock, $0.001 par value:
300,000,000 shares authorized; 130,922,477 and 128,683,824 shares issued and 71,019,904 and 71,249,045 shares outstanding at December 31, 2023 and March 31, 2023, respectively	131	128
Additional paid-in capital	3,158,283	3,099,698
Accumulated other comprehensive income	5,870	5,738
Treasury stock at cost, 59,902,573 and 57,434,779 shares at December 31, 2023 and March 31, 2023, respectively	(1,615,279)	(1,546,128)
Retained earnings	354,898	470,213
Total stockholders' equity	1,903,903	2,029,649
Total liabilities and stockholders' equity	$ 2,589,799	$ 2,820,560

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,076	$ 675
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 (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	130,922,477	128,683,824
Common stock, shares outstanding (in shares)	71,019,904	71,249,045
Treasury stock, shares (in shares)	59,902,573	57,434,779

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue:
Total revenue	$ 218,072	$ 269,544	$ 626,012	$ 706,437
Cost of revenue:
Total cost of revenue	43,624	56,802	137,072	172,157
Gross profit	174,448	212,742	488,940	534,280
Operating expenses:
Research and development	37,023	42,558	117,655	129,932
Sales and marketing	69,124	66,994	209,070	209,435
General and administrative	23,109	25,533	73,975	75,584
Amortization of acquired intangible assets	12,533	13,818	37,790	41,500
Restructuring charges	0	89	0	1,803
Goodwill impairment	167,106	0	167,106	0
Gain on divestiture of a business	0	0	(3,806)	0
Total operating expenses	308,895	148,992	601,790	458,254
Income (loss) from operations	(134,447)	63,750	(112,850)	76,026
Interest and other income (expense), net:
Interest income	2,145	1,480	6,942	2,512
Interest expense	(2,208)	(2,914)	(6,475)	(7,021)
Other income (expense), net	792	(1,738)	805	(2,045)
Total interest and other income (expense), net	729	(3,172)	1,272	(6,554)
Income (loss) before income tax expense (benefit)	(133,718)	60,578	(111,578)	69,472
Income tax expense (benefit)	(1,141)	7,960	3,737	6,603
Net income (loss)	$ (132,577)	$ 52,618	$ (115,315)	$ 62,869
Basic net income (loss) per share (in dollars per share)	$ (1.87)	$ 0.73	$ (1.61)	$ 0.87
Diluted net income (loss) per share (in dollars per share)	$ (1.87)	$ 0.72	$ (1.61)	$ 0.86
Weighted average common shares outstanding used in computing:
Net income (loss) per share - basic (in shares)	71,077	71,744	71,577	72,015
Net income (loss) per share - diluted (in shares)	71,077	73,049	71,577	73,271
Product
Revenue:
Total revenue	$ 95,832	$ 149,452	$ 271,038	$ 359,519
Cost of revenue:
Total cost of revenue	15,251	25,281	48,006	77,967
Service
Revenue:
Total revenue	122,240	120,092	354,974	346,918
Cost of revenue:
Total cost of revenue	$ 28,373	$ 31,521	$ 89,066	$ 94,190

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (132,577)	$ 52,618	$ (115,315)	$ 62,869
Other comprehensive income (loss):
Cumulative translation adjustments	216	114	146	(447)
Changes in market value of investments:
Changes in unrealized gains (losses), net of taxes (benefit) of $18, $8, ($13) and $4, respectively	57	25	(40)	14
Total net change in market value of investments	57	25	(40)	14
Changes in market value of derivatives:
Changes in market value of derivatives, net of taxes (benefit) of $62, $144, $26, and ($140), respectively	188	467	84	(442)
Reclassification adjustment for net gains (losses) included in net income (loss), net of taxes (benefit) of $9, $30, ($18) and $120, respectively	30	97	(58)	381
Total net change in market value of derivatives	218	564	26	(61)
Other comprehensive income (loss)	491	703	132	(494)
Total comprehensive income (loss)	$ (132,086)	$ 53,321	$ (115,183)	$ 62,375

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Changes in unrealized losses, tax expense (benefit)	$ 18	$ 8	$ (13)	$ 4
Changes in market value of derivatives, tax expense (benefit)	62	144	26	(140)
Reclassification adjustment for net gains (losses) included in net income (loss), tax expense (benefit)	$ 9	$ 30	$ (18)	$ 120

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Voting	Additional Paid In Capital	Accumulated Other Comprehensive Income	Treasury Stock	Retained Earnings
Beginning balance, common stock (in shares) at Mar. 31, 2022		126,425,383
Beginning balance at Mar. 31, 2022	$ 2,060,395	$ 126	$ 3,023,403	$ 141	$ (1,373,840)	$ 410,565
Beginning balance, treasury stock (in shares) at Mar. 31, 2022					52,323,090
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	62,869					62,869
Unrealized net investment gains (losses)	14			14
Unrealized net gains (loss) on derivative financial instruments	(61)			(61)
Cumulative translation adjustments	(447)			(447)
Issuance of common stock pursuant to vesting of restricted stock units (in shares)		1,758,002
Issuance of common stock pursuant to vesting of restricted stock units	2	$ 2
Stock-based compensation expense for restricted stock units granted to employees	45,068		45,068
Issuance of common stock under employee stock purchase plan (in shares)		206,029
Issuance of common stock under employee stock purchase plan	6,539		6,539
Repurchase of treasury stock (in shares)					5,104,980
Repurchase of treasury stock	(169,226)		2,856		$ (172,082)
Ending balance, common stock (in shares) at Dec. 31, 2022		128,389,414
Ending balance at Dec. 31, 2022	2,005,153	$ 128	3,077,866	(353)	$ (1,545,922)	473,434
Ending balance, treasury stock (in shares) at Dec. 31, 2022					57,428,070
Beginning balance, common stock (in shares) at Mar. 31, 2022		126,425,383
Beginning balance at Mar. 31, 2022	$ 2,060,395	$ 126	3,023,403	141	$ (1,373,840)	410,565
Beginning balance, treasury stock (in shares) at Mar. 31, 2022					52,323,090
Ending balance, common stock (in shares) at Mar. 31, 2023	71,249,045	128,683,824
Ending balance at Mar. 31, 2023	$ 2,029,649	$ 128	3,099,698	5,738	$ (1,546,128)	470,213
Ending balance, treasury stock (in shares) at Mar. 31, 2023	57,434,779				57,434,779
Beginning balance, common stock (in shares) at Sep. 30, 2022		128,373,156
Beginning balance at Sep. 30, 2022	$ 1,937,646	$ 128	3,015,644	(1,056)	$ (1,497,886)	420,816
Beginning balance, treasury stock (in shares) at Sep. 30, 2022					56,129,506
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	52,618					52,618
Unrealized net investment gains (losses)	25			25
Unrealized net gains (loss) on derivative financial instruments	564			564
Cumulative translation adjustments	114			114
Issuance of common stock pursuant to vesting of restricted stock units (in shares)		16,258
Stock-based compensation expense for restricted stock units granted to employees	14,366		14,366
Repurchase of treasury stock (in shares)					1,298,564
Repurchase of treasury stock	(180)		47,856		$ (48,036)
Ending balance, common stock (in shares) at Dec. 31, 2022		128,389,414
Ending balance at Dec. 31, 2022	$ 2,005,153	$ 128	3,077,866	(353)	$ (1,545,922)	473,434
Ending balance, treasury stock (in shares) at Dec. 31, 2022					57,428,070
Beginning balance, common stock (in shares) at Mar. 31, 2023	71,249,045	128,683,824
Beginning balance at Mar. 31, 2023	$ 2,029,649	$ 128	3,099,698	5,738	$ (1,546,128)	470,213
Beginning balance, treasury stock (in shares) at Mar. 31, 2023	57,434,779				57,434,779
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ (115,315)					(115,315)
Unrealized net investment gains (losses)	(40)			(40)
Unrealized net gains (loss) on derivative financial instruments	26			26
Cumulative translation adjustments	146			146
Issuance of common stock pursuant to vesting of restricted stock units (in shares)		2,028,862
Issuance of common stock pursuant to vesting of restricted stock units	3	$ 3
Stock-based compensation expense for restricted stock units granted to employees	52,579		52,579
Issuance of common stock under employee stock purchase plan (in shares)		209,791
Issuance of common stock under employee stock purchase plan	6,006		6,006
Repurchase of treasury stock (in shares)					2,467,794
Repurchase of treasury stock	$ (69,151)				$ (69,151)
Ending balance, common stock (in shares) at Dec. 31, 2023	71,019,904	130,922,477
Ending balance at Dec. 31, 2023	$ 1,903,903	$ 131	3,158,283	5,870	$ (1,615,279)	354,898
Ending balance, treasury stock (in shares) at Dec. 31, 2023	59,902,573				59,902,573
Beginning balance, common stock (in shares) at Sep. 30, 2023		130,875,398
Beginning balance at Sep. 30, 2023	$ 2,039,670	$ 130	3,142,712	5,379	$ (1,596,026)	487,475
Beginning balance, treasury stock (in shares) at Sep. 30, 2023					59,177,497
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(132,577)					(132,577)
Unrealized net investment gains (losses)	57			57
Unrealized net gains (loss) on derivative financial instruments	218			218
Cumulative translation adjustments	216			216
Issuance of common stock pursuant to vesting of restricted stock units (in shares)		47,079
Issuance of common stock pursuant to vesting of restricted stock units	1	$ 1
Stock-based compensation expense for restricted stock units granted to employees	15,571		15,571
Repurchase of treasury stock (in shares)					725,076
Repurchase of treasury stock	$ (19,253)				$ (19,253)
Ending balance, common stock (in shares) at Dec. 31, 2023	71,019,904	130,922,477
Ending balance at Dec. 31, 2023	$ 1,903,903	$ 131	$ 3,158,283	$ 5,870	$ (1,615,279)	$ 354,898
Ending balance, treasury stock (in shares) at Dec. 31, 2023	59,902,573				59,902,573

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ (115,315)	$ 62,869
Adjustments to reconcile net income (loss) to cash provided by operating activities, net of the effects of acquisitions:
Depreciation and amortization	56,928	64,302
Operating lease right-of-use assets	7,857	7,984
Gain on divestiture of a business	(3,806)	0
Loss on disposal of fixed assets	299	47
Share-based compensation expense	54,653	47,225
Change in fair value of derivative investment	(206)	0
Goodwill impairment	167,106	0
Deferred income taxes	(35,530)	(38,435)
Other (gains) losses	(1,758)	9
Changes in assets and liabilities
Accounts receivable and unbilled costs	(77,787)	(67,101)
Inventories	(634)	8,323
Prepaid expenses and other assets	(6,583)	4,279
Accounts payable	(984)	(7,129)
Accrued compensation and other expenses	(46,170)	(7,804)
Operating lease liabilities	(8,970)	(9,061)
Income taxes payable	(2,631)	(2,675)
Deferred revenue	(21,236)	(18,910)
Net cash (used in) provided by operating activities	(34,767)	43,923
Cash flows from investing activities:
Purchase of marketable securities and investments	(43,159)	(100,265)
Proceeds from sales and maturity of marketable securities	53,569	103,152
Purchase of fixed assets	(4,740)	(8,381)
Purchase of intangible assets	0	(161)
Proceeds from divestiture of a business	7,766	0
(Increase) decrease in deposits	(7)	8
Net cash provided by (used in) investing activities	13,429	(5,647)
Cash flows from financing activities:
Issuance of common stock under stock plans	3	2
Treasury stock repurchases, including accelerated share repurchases	(50,000)	(150,039)
Tax withholding on restricted stock units	(19,151)	(19,187)
Repayment of long-term debt	0	(150,000)
Net cash used in financing activities	(69,148)	(319,224)
Effect of exchange rate changes on cash and cash equivalents	1,347	(3,169)
Net decrease in cash and cash equivalents	(89,139)	(284,117)
Cash and cash equivalents, beginning of period	386,794	636,161
Cash and cash equivalents, end of period	297,655	352,044
Supplemental disclosures:
Cash paid for interest	4,817	5,351
Cash paid for income taxes	54,481	47,294
Non-cash transactions:
Transfers of inventory to fixed assets	1,814	1,371
Additions to property, plant and equipment included in accounts payable	414	622
Issuance of common stock under employee stock plans	$ 6,006	$ 6,539

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared by NetScout Systems, Inc. (NetScout or the Company). Certain information and footnote disclosures normally included in financial statements prepared under United States generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, the unaudited interim consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company's financial position and stockholders' equity, results of operations and cash flows. The year-end consolidated balance sheet data and statement of stockholders' equity were derived from the Company's audited financial statements, but do not include all disclosures required by GAAP. The results reported in these unaudited interim consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. All significant intercompany accounts and transactions are eliminated in consolidation. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023 filed with the Securities and Exchange Commission on May 16, 2023. Global and Macroeconomic Conditions The Company continues to closely monitor the current global and macroeconomic conditions, including the impacts of the ongoing Ukraine and Israel wars, global geopolitical tension, stock market volatility, industry-specific capital spending trends, exchange rate fluctuations, inflation, interest rates, and the risk of a recession, including the manner and extent to which they have impacted and could continue to impact its customers, employees, supply chain, and distribution network. The full extent of the impacts of these global and macroeconomic trends remains uncertain. It is possible that the measures taken by the governments of countries affected and the resulting economic impacts may materially and adversely affect the Company's future results of operations, cash flows and financial position as well as its customers. The Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. Late in the second quarter of fiscal year 2024, the Company experienced a slowing in order conversion, which affected the Company's fiscal year 2024 results and outlook. The Company has taken and continues to take precautionary actions to manage costs and increase productivity across the organization. This includes managing discretionary spending and hiring activities. In addition, based on covenant levels, the Company had as of December 31, 2023 , an incre mental $700 million available under its revolving credit facility. The Company expects net cash provided by operations combined with cash, cash equivalents, marketable securities and investments and borrowing availability under the revolving credit facility to provide sufficient liquidity to fund current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months. Recent Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires companies to recognize and measure contract assets and contract liabilities acquired in a business combination as if the acquiring company originated the related revenue contracts. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. ASU 2021-08 was adopted on April 1, 2023. Amendments within the standard are required to be applied on a prospective basis from the date of adoption. The Company will apply the provisions of ASU 2021-08 to future acquisitions, if any. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendments are effective retrospectively for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 is effective for NetScout beginning April 1, 2025. Early adoption is permitted. The Company is in the process of evaluating the impact that the adoption ASU 2023-09 will have to the financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 is effective for NetScout beginning April 1, 2025. Early adoption is permitted, and the amendments should be applied retrospectively. The Company is in the process of evaluating the impact that the adoption ASU 2023-07 will have to the financial statements and related disclosures.

REVENUE

REVENUE	9 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue Recognition Policy The Company exercises judgment and uses estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting period. The Company derives revenues primarily from the sale of network management tools and cybersecurity solutions for service provider and enterprise customers, which include hardware, software, and service offerings. The Company's product sales consist of software only offerings and offerings which include hardware appliances with embedded software that are essential to providing customers the intended functionality of the solutions. The Company accounts for revenue once a legally enforceable contract with a customer has been approved by the parties and the related promises to transfer products or services have been identified. A contract is defined by the Company as an arrangement with commercial substance identifying payment terms, each party's rights and obligations regarding the products or services to be transferred and the amount the Company deems probable of collection. Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. Revenue is recognized when control of the products or services are transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for products and services. Product revenue is typically recognized upon fulfillment, provided a legally enforceable contract exists, control has passed to the customer, and in the case of software products, when the customer has the rights and ability to access the software, and collection of the related receivable is probable. If any significant obligations to the customer remain post-delivery, typically involving obligations relating to installation and acceptance by the customer, revenue recognition is deferred until such obligations have been fulfilled. The Company's service offerings include installation, integration, extended warranty and maintenance services, post-contract customer support, stand-ready software-as-a-service (SAAS) and other professional services including consulting and training. The Company generally provides software and/or hardware support as part of product sales. Revenue related to the initial bundled software and hardware support is recognized ratably over the support period. In addition, customers can elect to purchase extended support agreements for periods after the initial software/hardware warranty expiration. Support services generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates, bug fixes and hardware repair and replacement. Consulting services are recognized upon delivery or completion of performance depending on the terms of the underlying contract. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in services revenue, with the offsetting expense recorded in cost of service revenue. Training services include on-site and classroom training. Training revenues are recognized upon delivery of the training. Generally, the Company's contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. Bundled arrangements are concurrent customer purchases of a combination of the Company's product and service offerings that may be delivered at various points in time. The Company allocates the transaction price among the performance obligations in an amount that depicts the relative standalone selling prices (SSP) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. The Company uses a range of amounts to estimate SSP for each of the products and services sold, based primarily on the performance obligation's historical pricing. The Company also considers its overall pricing objectives and practices across different sales channels and geographies, and market conditions. Generally, the Company has established SSP for a majority of its service performance obligations based on historical standalone sales. In certain instances, the Company has established SSP for services based upon an estimate of profitability and the underlying cost to fulfill those services. SSP has primarily been established for product performance obligations as the average or median selling price the performance obligation was recently sold for, whether sold alone or sold as part of a bundle transaction. The Company reviews sales of the product performance obligations on a quarterly basis and updates, when appropriate, its SSP for such performance obligations to ensure that it reflects recent pricing experience. The Company's products are distributed through its direct sales force and indirect distribution channels through alliances with resellers and distributors. Revenue arrangements with resellers and distributors are recognized on a sell-in basis; that is, when control of the product transfers to the reseller or distributor. The Company records consideration given to a customer as a reduction of revenue to the extent they have recorded revenue from the customer. With limited exceptions, the Company's return policy does not allow product returns for a refund. Returns have been insignificant to date. In addition, the Company has a history of successfully collecting receivables from its resellers and distributors. During the nine months ended December 31, 2023, the Company recognized re ven ue of $273.8 million relate d t o the Company's deferred revenue balance reported at March 31, 2023. Performance Obligations Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. The transaction price is allocated among performance obligations in bundled contracts in an amount that depicts the relative standalone selling prices of each obligation. For contracts involving distinct hardware and software licenses, the performance obligations are satisfied at a point in time when control is transferred to the customer. For standalone maintenance and post-contract support (PCS) the performance obligation is satisfied ratably over the contract term as a stand-ready obligation. For consulting and training services, the performance obligation may be satisfied over the contract term as a stand-ready obligation, satisfied over a period of time as those services are delivered, satisfied at the completion of the service when control has transferred, or the services have expired unused. Payments for hardware, software licenses, one-year maintenance, PCS and consulting services, are typically due up front with payment terms of 30 to 90 days. However, the Company does have contracts pursuant to which billings occur ratably over a period of years following the transfer of control for the contracted performance obligations. Payments on multi-year maintenance, PCS and consulting services are typically due in annual installments over the contract term. The Company did not have any material variable consideration su ch as obligations for returns, refunds or warranties at December 31, 2023. At December 31, 2023, the Company had total defer red revenue of $418.0 million, which represents the aggregate total contract price allocated to undelivered performance obligations. The Company expects to recognize $293.4 million, or 70%, of this revenue during the next 12 months, and expects to recognize the remaining $124.6 million, or 30%, of this revenue thereafter. Because of NetScout's revenue recognition policies, there are circumstances for which the Company does not recognize revenue relating to sales transactions that have been billed, but the related account receivable has not been collected. While the receivable represents an enforceable obligation, the Company does not believe its right to payment is unconditional, therefore for balance sheet presentation purposes, the Company has not recognized the deferred revenue or the related account receivable and no amounts appear in the consolidated balance sheets for such transactions because control of the underlying deliverable has not transferred. The aggregate amount of unrecognized accounts receivable and de ferred revenue was $6.3 million and $6.6 million at December 31, 2023 and March 31, 2023, respectively. NetScout expects that the amount of billed and unbilled deferred revenue will change from quarter to quarter for several reasons, including the specific timing, duration and size of large customer support and service agreements, varying billing cycles of such agreements, th e specific timing of customer renewals, and foreign currency fluctuations. The Company did not have material significant financing components, or variable consideration or performance obligations satisfied in a prior period recognized during the nine months ended December 31, 2023. Contract Balances The Company may receive payments from customers based on billing schedules as established by the Company's contracts. Contract assets relate to performance obligations where control has transferred to the customer in advance of scheduled billings. The Company records unbilled accounts receivable representing the right to consideration in exchange for goods or services that have been transferred to a customer conditional on the passage of time. Deferred revenue relates to scenarios where billings with an unconditional right to payment occur before all performance obligations are delivered or payments are received in advance of performance under the contract. Costs to Obtain Contracts The Company has determined that the only significant incremental costs incurred to obtain contracts with customers within the scope of Topic 606 are sales commissions paid to its employees. Sales commissions are recorded as an asset and amortized to expense ratably over the remaining performance periods of the related contracts with remaining performance obligations. The Company expenses costs as incurred for sales commissions when the amortization period would have been one year or less. At December 31, 2023, the consolidated balance shee t included $9.0 million in assets related to sales commissions to be expensed in future periods. A balance of $4.5 million was included in prepaid expenses and other current assets, and a balance of $4.5 million was included in other assets in the Company's consolidated balance sheet at December 31, 2023. At March 31, 2023, the consolidated balance sheet included $9.4 million in assets related to sales commissions to be expensed in future periods. A balance of $4.7 million was included in prepaid expenses and other current assets, and a balance of $4.7 million was included in other assets in the Company's consolidated balance sheet at March 31, 2023. During the three and nine months ended December 31, 2023 and 2022, respe ctively, the Company recognized $1.7 million, $1.8 million, $5.1 million, and $5.2 million of amortization related to this sales commission asset, which is included in the sales and marketing expense line in the Company's consolidated statements of operations. Allowance for Credit Losses The Company continually monitors collections from its customers. The Company evaluates the collectability of its accounts receivable and determines the appropriate allowance for credit losses based on a combination of factors, including but not limited to, analysis of the aging schedules, past due balances, historical collection experience and prevailing economic conditions. The following table summarizes the activity in the allowance for credit losses (in thousands): Balance at March 31, 2023 $ 675 Additions resulting in charges to operations 451 Charges (recoveries) to other accounts — Deductions due to write-offs (50) Balance at December 31, 2023 $ 1,076

CONCENTRATION OF CREDIT RISK AN

CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS	9 Months Ended
	Dec. 31, 2023
Risks and Uncertainties [Abstract]
CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS	CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of investments, trade accounts receivable and accounts payable. The Company's cash, cash equivalents, and marketable securities are placed with financial institutions with high credit standings. At December 31, 2023 and March 31, 2023, the Company had no direct customers or channel partners which accounted for more than 10% of the accounts receivable balance. During the three and nine months ended December 31, 2023, no direct customers or channel partners accounted for more than 10% of the Company's total revenue. During the three and nine months ended December 31, 2022, one direct customer, Verizon, accounted for more than 10% of the Company's total revenue, while no channel partners accounted for more than 10% of total revenue.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION On September 12, 2019, the Company's stockholders approved the 2019 Equity Incentive Plan (2019 Plan), which replaced the Company's 2007 Equity Incentive Plan, as amended (Amended 2007 Plan). The 2019 Plan permits the granting of incentive and nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other stock awards, collectively referred to as "share-based awards." On September 10, 2020, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan (2019 First Amended Plan) to increase the number of shares reserved for issua nce by 4,700,000 s hares, establish a one-year minimum vesting requirement for awards granted on or after September 10, 2020, and change the "fungible share counting ratio" used to calculate the increase or reduction in the number of shares available for issuance under the 2019 First Amended Plan. On August 24, 2022, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan (2019 Second Amended Plan) to increase the number of shares reserved for issuance by 7,000,000 shares, and change the "fungible share counting ratio" used to calculate the increase or reduction in the number of shares available for issuance under the 2019 Second Amended Plan. On September 14, 2023, the Company's stockholders approved an amendment and restatement to the 2019 First Amended Plan (2019 Third Amended Plan) to further increase the number of shares reserved for issuance by 5,900,000 shares and changed the "fungible share counting ratio" used to calculate the increase or reduction in the number of shares available for issuance under the 2019 Third Amended Plan. At September 14, 2023, there was a total of 8,263,547 shares reserved for issuance under the 2019 Third Amended Plan, which consisted of 5,900,000 new shares plus 2,363,547 shares that remained available for grant under the 2019 Second Amended Plan as of September 14, 2023, the effective date of the 2019 Third Amended Plan. The Company refers to the 2019 Plan, 2019 First Amended Plan, 2019 Second Amended Plan and 2019 Third Amended Plan collectively as the "Amended 2019 Plan". At December 31, 2023, an aggregate of 8,279,049 shares remained available for grant under the Amended 2019 Plan. Periodically, the Company grants share-based awards to employees, officers, and directors of the Company and its subsidiaries. Additionally, the Company periodically grants performance-based restricted stock units to certain executive officers that vest based upon the Company's total shareholder return as compared to the Russell 2000 Index over a three-year period. The performance-based restricted stock units are valued using the Monte Carlo Simulation model. The measurement and recognition of compensation expense is based on estimated fair values for all share-based payment awards made to its employees and directors. Share-based award grants are generally measured at fair value on the date of grant based on the number of shares granted and the quoted price of the Company's common stock. Such value is recognized as a cost of revenue or an operating expense over the corresponding vesting period. The following is a summary of share-based compensation expense including restricted stock units and performance-based restricted stock units granted pursuant to the Company's Amended 2007 Plan, the Amended 2019 Plan, and employee stock purchases made under the Company's 2011 Amended and Restated Employee Stock Purchase Plan (ESPP), based on estimated fair values within the applicable cost and expense lines identified below (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Cost of product revenue $ 306 $ 262 $ 1,027 $ 869 Cost of service revenue 2,069 1,781 6,897 5,606 Research and development 4,498 4,174 14,872 13,185 Sales and marketing 5,680 5,445 19,639 17,238 General and administrative 3,811 3,481 12,218 10,327 $ 16,364 $ 15,143 $ 54,653 $ 47,225 Employee Stock Purchase Plan – The Company maintains the ESPP for all eligible employees as described in the Company's Annual Report on Form 10-K for the year ended March 31, 2023. Under the ESPP, shares of the Company's common stock may be purchased on the last day of each bi-annual offering period at 85% of the fair value on the last day of such offering period. The offering periods run from March 1st through August 31st and from September 1st through the last day of February each year . During the nine months ended December 31, 2023, employees purchased 209,791 shares under the ESPP and the fair value per share was $28.63.

CASH, CASH EQUIVALENTS, MARKETA

CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS	9 Months Ended
	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS	CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents and those investments with original maturities greater than three months to be marketable securities. Cash and cash equi valents mainly consisted of U.S. government and municipal obligations, commercial paper, money market instruments and cash maintained with various financial institutions at December 31, 2023 and March 31, 2023. Marketable Securities The following is a summary of marketable securities held by NetScout at December 31, 2023, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 10,990 $ (26) $ 10,964 Commercial paper 8,668 — 8,668 Certificates of deposit 3,855 — 3,855 Total short-term marketable securities 23,513 (26) 23,487 U.S. government and municipal obligations 1,013 (3) 1,010 Total long-term marketable securities 1,013 (3) 1,010 Total marketable securities $ 24,526 $ (29) $ 24,497 The following is a summary of marketable securities held by NetScout at March 31, 2023, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 8,796 $ (1) $ 8,795 Commercial paper 19,136 — 19,136 Corporate bonds 310 — 310 Certificates of deposit 3,963 — 3,963 Total short-term marketable securities 32,205 (1) 32,204 U.S. government and municipal obligations 8,915 25 8,940 Total long-term marketable securities 8,915 25 8,940 Total marketable securities $ 41,120 $ 24 $ 41,144 Contractual maturities of the Company's marketable securities held at December 31, 2023 and March 31, 2023 were as follows (in thousands): December 31, March 31, Available-for-sale securities: Due in 1 year or less $ 23,487 $ 32,204 Due after 1 year through 5 years 1,010 8,940 $ 24,497 $ 41,144 Investments In February 2023, the Company entered into a forward share purchase agreement with Napatech A/S (Napatech), a publicly traded Danish company registered on the Oslo stock exchange, to purchase approximately 6.2 million shares of Napatech's common stock for $7.5 million. In April 2023, the Company settled the forward share purchase contract with Napatech in exchange for approximately 6.2 million shares of Napatech's common stock. As part of the agreement, the Company received the right to designate a representative to be nominated for election to the Napatech Board of Directors, which was approved by Napatech's Nomination Committee in April 2023. The Company accounts for this investment under the equity method and has elected to apply the fair value option to the investment. The Company records the investment at fair value at the end of each period based on the closing price of Napatech's stock and any change in fair value during the period is recorded in other income (expense), net within the Company's consolidated statement of operations. At December 31, 2023, the fair value of the investm ent in Napatech was $8.0 million and w as included in marketable securities and investments in the Company's consolidated balance sheet. During the nine months ended December 31, 2023, the Company recognized a $1.8 million increa se in the fair value of the equity investment in Napatech in other income (expense), net within the Company's consolidated statement of operations . For the nine months ended December 31, 2023, the unrealized losses related to foreign currency translation on the equity investment in Napatech were immaterial.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. The following tables present the Company's financial assets and liabilities measured on a recurring basis using the fair value hierarchy at December 31, 2023 and March 31, 2023 (in thousands): Fair Value Measurements at December 31, 2023 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 296,144 $ 1,511 $ — $ 297,655 U.S. government and municipal obligations 11,974 — — 11,974 Commercial paper — 8,668 — 8,668 Certificate of deposits — 3,855 — 3,855 Equity investment in Napatech 7,970 — — 7,970 Derivative financial instruments — 67 — 67 $ 316,088 $ 14,101 $ — $ 330,189 LIABILITIES: Derivative financial instruments $ — $ (12) $ — $ (12) $ — $ (12) $ — $ (12) Fair Value Measurements at March 31, 2023 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 370,455 $ 16,339 $ — $ 386,794 U.S. government and municipal obligations 17,735 — — 17,735 Commercial paper — 19,136 — 19,136 Corporate bonds 310 — — 310 Certificate of deposits — 3,963 — 3,963 Derivative financial instruments — 59 — 59 $ 388,500 $ 39,497 $ — $ 427,997 LIABILITIES: Derivative financial instruments $ — $ (49) $ (1,380) $ (1,429) $ — $ (49) $ (1,380) $ (1,429) This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, the Company measures certain financial assets and liabilities at fair value, including marketable securities and derivative financial instruments. The Company's Level 1 investments are classified as such because they are valued using quoted market prices or alternative pricing sources with reasonable levels of price transparency. The Company's Level 2 investments are classified as such because they are valued using observable inputs other than Level 1 quoted prices that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets in markets that are not active. The Company’s Level 3 liability at March 31, 2023 consisted of a forward share purchase contract with Napatech to purchase approximately 6.2 million shares of Napatech's common stock for $7.5 million, which qualified as a derivative instrument under authoritative guidance. The Company measured the forward share purchase contract at March 31, 2023 at fair value based on inputs which were observable and those which were not observable in the market, resulting in a charge related to the Lev el 3 fair value hierarchy classification. During the nine months ended December 31, 2023, the Company recorded a $0.2 million decr ease in the fair value of the derivative financial instrument liability in other income (expense), net within the Company's consolidated statement of operations. In April 2023, the Company settled the forward share purchase contract with Napatech in exchange for approximately 6.2 million shares of Napatech's common stock valued at $6.2 million at such time. The following table sets forth a reconciliation of changes in the fair value of the Company's Level 3 financial liability for the nine months ended December 31, 2023 (in thousands): Derivative Instrument Balance at March 31, 2023 $ (1,380) Change in fair value of derivative investment 206 Settlement of derivative instrument 1,174 Balance at December 31, 2023 $ —

INVENTORIES

INVENTORIES	9 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories are stated at the lower of actual cost or net realizable value. Cost is determined by using the first in, first out (FIFO) method. Inventories consist of the following (in thousands): December 31, March 31, Raw materials $ 10,651 $ 12,352 Work in process 14 14 Finished goods 4,157 5,183 Deferred costs 520 407 $ 15,342 $ 17,956

DIVESTITURES

DIVESTITURES	9 Months Ended
	Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
DIVESTITURES	DIVESTITURES Business Divestiture On September 8, 2023, the Company entered into an Asset Purchase Agreement to divest its Test Optimization business (TO business) for a purchase price of $7.8 million, inclusive of a working capital adjustment. The Company recorded a gain of $3.8 million on the divestiture during the nine months ended December 31, 2023. In connection with the divestiture, the Company has entered into a transitional services agreement with the buyer to provide certain services which ended on December 31, 2023. The Company determined that the sale of the TO business did not represent a strategic shift and will not have a major effect on its consolidated results of operations, financial position or cash flow. Accordingly, the Company has not presented the sale as a discontinued operation in the consolidated financial statements.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Goodwill The Company has one reporting unit. Goodwill is tested for impairment at a reporting unit level at least annually, as of January 31, or on an interim basis if an event occurs or circumstances change (a "triggering event") that would, more likely than not, reduce the fair value of the reporting unit below its carrying value. As a result of the sustained decline in the Company's stock price and overall market capitalization during the third quarter of fiscal year 2024, along with other qualitative considerations including the continued impact from the conditions in the macroeconomic environment, it was determined a triggering event occurred, indicating goodwill may be impaired. Accordingly, the Company conducted a quantitative impairment test of its goodwill at December 31, 2023. The Company estimated the implied fair value of its goodwill using a market approach. As a result of the quantitative impairment test performed during the third quarter of fiscal year 2024, the Company determined goodwill was impaired and recorded a goodwill impairment charge of $167.1 million during the periods ended December 31, 2023. The key assumption in the market approach was the company-specific control premium, which was estimated using expected synergies that would be realized by a hypothetical buyer. The Company also compared its implied control premium to recent control premiums paid in the industry, as evidenced by guideline public company comparable transactions. Changes in the estimates or assumptions used in its quantitative impairment test could materially affect the determination of fair value and the associated goodwill impairment assessment. Potential events and circumstances that could have an adverse impact on our estimates and assumptions include, but are not limited to, continued increases in costs, and rising interest rates and other macroeconomic factors. An increase or decrease of 1% in the company-specific control premium used in the determination of the fair value of the reporting unit under the market approach would have resulted in an increase or decrease in the goodwill impairment recorded of approximately $15.6 million. The Company will complete its annual goodwill impairment test at January 31, 2024. Throughout the fourth quarter of fiscal year 2024, the Company will continue to monitor relevant facts and circumstances, including future changes in its stock price. The Company may be required to record additional goodwill impairment charges. While management cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on the Company's results of operations and financial condition. At December 31, 2023 and March 31, 2023, the carrying amounts of goodwill were $1.6 billion and $1.7 billion, respectively. The change in the carrying amount of goodwill for the nine months ended December 31, 2023 was due to the impairment of goodwill, the divestiture of the TO business, and the impact of foreign currency translation adjustments related to asset balances that are recorded in currencies other than the U.S. Dollar. The following table summarizes the changes in the carrying amount of goodwill for the nine months ended December 31, 2023 as follows (in thousands): Balance at March 31, 2023 $ 1,724,404 Goodwill impairment (167,106) Divestiture of a business (4,259) Foreign currency translation impact (1,498) Balance at December 31, 2023 $ 1,551,541 Intangible Assets The net carrying amounts of intangible asse ts w ere $323.9 million and $366.6 million at December 31, 2023 and March 31, 2023, respectively. Intangible assets acquired in a business co mbination are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. The Company amortizes acquired intangible assets over their estimated useful lives. The Company reviews definite-lived intangible assets for impairment when an event occurs that may indicate potential impairment. The sustained decline in the Company's stock price and market capitalization during the third quarter of fiscal year 2024 was considered a triggering event. As such, the Company conducted an impairment test of its definite-lived intangible assets at December 31, 2023. Based on this assessment, the Company concluded that the carrying values of the Company's definite-lived intangible assets were recoverable as of December 31, 2023. However, if future events occur or if business conditions deteriorate, the Company may be required to record an impairment loss, and or accelerate the amortization of definite-live intangible assets in the future, which could be material to its results of operations and financial condition. Intangible assets include the following amortizable intangible assets at December 31, 2023 (in thousands): Estimated Useful Life in Years Cost Accumulated Net Developed technology 3 - 13 years $ 248,827 $ (237,264) $ 11,563 Customer relationships 8 - 18 years 765,515 (464,928) 300,587 Distributor relationships and technology licenses 1 - 6 years 7,812 (7,219) 593 Definite-lived trademark and trade name 2 - 9 years 57,768 (46,803) 10,965 Core technology 10 years 7,192 (7,192) — Capitalized software 3 years 3,317 (3,317) — Other 1 - 20 years 1,208 (1,017) 191 $ 1,091,639 $ (767,740) $ 323,899 Intangible assets include the following amortizable intangible assets at March 31, 2023 (in thousands): Estimated Useful Life in Years Cost Accumulated Net Developed technology 3 - 13 years $ 249,903 $ (233,440) $ 16,463 Customer relationships 8 - 18 years 768,179 (433,876) 334,303 Distributor relationships and technology licenses 1 - 6 years 11,547 (10,133) 1,414 Definite-lived trademark and trade name 2 - 9 years 57,694 (43,489) 14,205 Core technology 10 years 7,192 (7,192) — Non-compete agreements 3 years 292 (292) — Capitalized software 3 years 3,317 (3,317) — Other 1 - 20 years 1,208 (1,002) 206 $ 1,099,332 $ (732,741) $ 366,591 Amortization included as cost of product revenue consists of amortization of developed technology, and distributor relationships and technology licenses. Amortization included as operating expense consists of all other intangible assets. The following table provides a summary of amortization expense for the three and nine months ended December 31, 2023 and 2022 , respectively (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Amortization of intangible assets included as: Cost of product revenue $ 1,907 $ 2,627 $ 5,733 $ 7,908 Operating expense 12,538 13,823 37,805 41,515 $ 14,445 $ 16,450 $ 43,538 $ 49,423 The following is the expected future amortization expense at December 31, 2023 for the fiscal years ending March 31 (in thousands): 2024 (remaining three months) $ 14,485 2025 50,915 2026 46,544 2027 43,660 2028 40,699 Thereafter 127,596 $ 323,899

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	9 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES NetScout operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The exposures result from costs that are denominated in currencies other than the U.S. Dollar, primarily the Euro, British Pound, Canadian Dollar, and Indian Rupee. The Company manages its foreign cash flow risk by hedging forecasted cash flows for operating expenses denominated in foreign currencies for up to twelve months, within specified guidelines through the use of forward contracts. The Company enters into foreign currency exchange contracts to hedge cash flow exposures from costs that are denominated in currencies other than the U.S. Dollar. These hedges are designated as cash flow hedges at inception. NetScout also periodically enters into forward contracts to manage exchange rate risks associated with certain third-party transactions and for which the Company does not elect hedge accounting treatment as there is no difference in the timing of gain or loss recognition on the hedging instrument and the hedged item. All of the Company's derivative instruments are utilized for risk management purposes, and the Company does not use derivatives for speculative trading purposes. These contracts will mature over the next twelve months and are expected to impact earnings on or before maturity. The notional amounts and fair values of derivative instruments in the consolidated balance sheets at December 31, 2023 and March 31, 2023 were as follows (in thousands): Notional Amounts (a) Prepaid Expenses and Other Current Assets Accrued Other December 31, March 31, December 31, March 31, December 31, March 31, Derivatives Designated as Hedging Instruments: Forward contracts $ 10,373 $ 10,265 $ 67 $ 59 $ 7 $ 29 Derivatives Not Designated as Hedging Instruments: Forward contracts 5,098 6,031 — — 5 20 $ 67 $ 59 $ 12 $ 49 (a) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the three months ended December 31, 2023 and 2022 (in thousands): Gain Recognized in Gain Reclassified from December 31, December 31, Location December 31, December 31, Forward contracts $ 250 $ 611 Research and development $ 1 $ 30 Sales and marketing 38 97 $ 250 $ 611 $ 39 $ 127 (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b) The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts not designated as hedging instruments had on the Company's results of operations for the three months ended December 31, 2023 and 2022 (in thousands): Loss Recognized in Income Location December 31, December 31, Forward contracts General and administrative $ (5) $ — $ (5) $ — (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the nine months ended December 31, 2023 and 2022 (in thousands): Gain (Loss) Recognized in Gain (Loss) Reclassified from December 31, December 31, Location December 31, December 31, Forward contracts $ 110 $ (582) Research and development $ — $ 49 Sales and marketing (76) 452 $ 110 $ (582) $ (76) $ 501 (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b) The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts not designated as hedging instruments had on the Company's results of operations for the nine months ended December 31, 2023 and 2022 (in thousands): Loss Recognized in Income Location December 31, December 31, Forward contracts General and administrative $ (5) $ — $ (5) $ — (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT On July 27, 2021, the Company amended and extended its existing credit facility (as amended, the Second Amended and Restated Credit Agreement) with a syndicate of lenders by and among: the Company; JPMorgan Chase Bank, N.A. (JPMorgan), as administrative agent and collateral agent; JPMorgan, Wells Fargo Securities, LLC, BofA Securities Inc., RBC Capital Markets, PNC Capital Markets LLC and Mizuho Bank, Ltd., as joint lead arrangers and joint bookrunners; Santander Bank, N.A., U.S. Bank National Association, Fifth Third Bank National Association, Silicon Valley Bank and TD Bank, N.A., as co-documentation agents; and the lenders party thereto. The Second Amended and Restated Credit Agreement provides for a five-year, $800.0 million senior secured revolving credit facility, including a letter of credit sub-facility of up to $75.0 million. The Company may elect to use the credit facility for general corporate purposes (including to finance the repurchase of shares of the Company's common stock). The commitments under the Second Amended and Restated C redit Agreement will expire on July 27, 2026, and any outstanding loans will be due on that date. At December 31, 2023, $100 million was outstanding under the Second Amended and Restated Credit Agreement. On February 22, 2023, the Company entered into a First Amendment Agreement (First Amendment) of its Second Amended and Restated Credit Agreement with its syndicate of lenders. The Company entered into the First Amendment in order to remove and replace the LIBOR-based interest rate benchmark provisions for U.S. dollar-denominated loans with interest rate benchmark provisions for U.S. dollar-denominated loans based on a term secured overnight financing rate (SOFR). The First Amendment provides that U.S. dollar-denominated advances under the Second Amended and Restated Credit Agreement will bear interest at a term SOFR rate plus a credit spread adjustment of 0.10% or an Alternate Base Rate (defined in a customary manner), at the option of the Company, plus a margin that ranges from 1.00% per annum for Alternate Base Rate loans and 2.00% per annum for term SOFR loans if the Company's consolidated gross leverage ratio is greater than 3.50 to 1.00, down to 0% per annum for Alternate Base Rate loans and 1.00% per annum for term SOFR loans if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00. For the period from the delivery of the Company's financial statements for the quarter ended September 30, 2023, until the Company has delivered financial statements for the quarter ended December 31, 2023, the applicable margin will be 1.00% per annum for Term Benchmark Revolving loans and 0% per annum for Alternate Base Rate loans, and thereafter the applicable margin will vary depending on the Company's consolidated gross leverage ratio, ranging from 1.00% per annum for Alternate Base Rate loans and 2.00% per annum for Term Benchmark Revolving loans if the Company's consolidated gross leverage ratio is greater than 3.50 to 1.00, down to 0% per annum for Alternate Base Rate loans and 1.00% per annum for Term Benchmark Revolving loans if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00. The Company's consolidated gross leverage ratio is the ratio of its consolidated total debt compared to its consolidated EBITDA as defined in the Second Amended and Restated Credit Agreement (adjusted consolidated EBITDA). Adjusted consolidated EBITDA includes certain adjustments, including, without limitation, adjustments relating to extraordinary, unusual or non-recurring charges, certain restructuring charges, non-cash charges, certain transaction costs and expenses and certain pro forma adjustments in connection with material acquisitions and dispositions, all as set forth in detail in the Second Amended and Restated Credit Agreement. Commitment fees will accrue on the daily unused amount of the credit facility. For the period from the delivery of the Company's financial statements for the quarter ended September 30, 2023, until the Company has delivered financial statements for the quarter ended December 31, 2023, the commitment fee will be 0.15% per annum, and thereafter the commitment fee will vary depending on the Company's consolidated gross leverage ratio, ranging from 0.30% per annum if the Company's consolidated gross leverage ratio is greater than 2.75 to 1.00, down to 0.15% per annum if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00. Letter of credit participation fees are payable to each lender providing the letter of credit sub-facility on the amount of such lender's letter of credit exposure, during the period from the closing date of the Second Amended and Restated Credit Agreement to, but excluding, the date which is the later of (i) the date on which such lender's commitment terminates or (ii) the date on which such lender ceases to have any letter of credit exposure, at a rate per annum equal to the applicable margin for term SOFR loans assuming such loans were outstanding during the period. Additionally, the Company will pay a fronting fee to each issuing bank in amounts to be agreed to between the Company and the applicable issuing bank. Interest on Alternate Base Rate loans is payable at the end of each calendar quarter. Interest on term SOFR loans is payable at the end of each interest rate period or at the end of each three-month interval within an interest rate period if the period is longer than three months. The Company may also prepay loans under the Second Amended and Restated Credit Agreement at any time, without penalty, subject to certain notice requirements. The loans and other obligations under the credit facility are (a) guaranteed by each of the Company's wholly-owned material domestic restricted subsidiaries, subject to certain exceptions, and (b) are secured by substantially all of the assets of the Company and the subsidiary guarantors, including a pledge of all the capital stock of material subsidiaries held directly by the Company and the subsidiary guarantors (which pledge, in the case of any foreign subsidiary, is limited to 65% of the voting stock), subject to certain customary exceptions and limitations. The Second Amended and Restated Credit Agreement generally prohibits any other liens on the assets of the Company and its restricted subsidiaries, subject to certain exceptions as described in the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement contains certain covenants applicable to the Company and its restricted subsidiaries, including, without limitation, limitations on additional indebtedness, liens, various fundamental changes, dividends and distributions, investments (including acquisitions), transactions with affiliates, asset sales, including sale-leaseback transactions, speculative hedge agreements, payment of junior financing, changes in business and other limitations customary in senior secured credit facilities. The Second Amended and Restated Credit Agreement requires the Company to maintain a certain consolidated net leverage ratio and removes the previous requirement under the Company's previous amended credit agreement that the Company maintain a minimum consolidated interest coverage ratio. The Company's consolidated net leverage ratio is the ratio of its Consolidated Total Debt minus the lesser of unrestricted cash and 125% of adjusted consolidated EBITDA compared to its adjusted consolidated EBITDA. The Company's maximum consolidated net leverage ratio is 4.00 to 1.00. These covenants and limitations are more fully described in the Second Amended and Restated Credit Agreement. At December 31, 2023, the Company was in compliance with all covenants, including the specified total consolidated net leverage ratio range of 4.00 to 1.00. The Second Amended and Restated Credit Agreement provides that events of default will exist in certain circumstances, including failure to make payment of principal or interest on the loans when required, failure to perform certain obligations under the Second Amended and Restated Credit Agreement and related documents including a failure to meet the maximum total consolidated net leverage ratio covenant, defaults under certain other indebtedness, certain insolvency events, certain events arising under ERISA, a change of control and certain other events. Upon an event of default, the administrative agent with the consent of, or at the request of, the holders of more than 50% in principal amount of the loans and commitments, may terminate the commitments and accelerate the maturity of the loans and enforce certain other remedies under the Second Amended and Restated Credit Agreement and the other loan documents.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	9 Months Ended
	Dec. 31, 2023
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES During the first quarter of fiscal year 2023, the Company restructured certain departments to better align functions resulting in the termination of eighteen employees. As a result of the workforce reduction, during the nine months ended December 31, 2022, the Company recorded a restructuring charge totaling $1.9 million related to one-time employee-related termination benefits for the employees that were notified of their termination during the period. The one-time termination benefits were paid in full during the fiscal year ended March 31, 2023.

LEASES

LEASES	9 Months Ended
	Dec. 31, 2023
Leases [Abstract]
LEASES	LEASES The Company determines if an arrangement is a lease at inception. Right-of-use (ROU) assets represent the Company's right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company's contractual obligation to make lease payments over the lease term. The Company's policy is to combine lease and non-lease components and to not recognize ROU assets and lease liabilities for short-term leases. Leases with an initial term of twelve months or less are classified as short-term leases. ROU assets are recorded and recognized at commencement for the lease liability amount, plus initial direct costs incurred less lease incentives received. Lease liabilities are recorded at the present value of future lease payments over the lease term at commencement. The discount rate used is generally the Company's estimated incremental borrowing rate unless the lessor's implicit rate is readily determinable. Incremental borrowing rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value over a similar term. Lease expenses relating to operating leases are recognized on a straight-line basis over the lease term. The Company has operating leases for administrative, research and development, sales and marketing and manufacturing facilities and equipment under various non-cancelable lease agreements. The Company's leases have remaining lease terms ranging fr om 1 year to 7 years. The Co mpany's lease terms may include options to extend or terminate the lease where it is reasonably certain that the Company will exercise those options. The Company considers several economic factors when making this determination, including but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, or specific characteristics unique to a particular lease. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has an obligation to return certain leased facilities to their original condition at the end of the respective lease term. These obligations were not material to the Company's financial statements for all periods presented. Most of the Company's lease agreements contain variable payments, primarily for common area maintenance (CAM), which are expensed as incurred and not included in the measurement of the ROU assets and lease liabilities. The components of operating lease cost for the three and nine months ended December 31, 2023 and 2022, respectively, were as follows (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Lease cost under long-term operating leases $ 3,027 $ 3,078 $ 9,113 $ 9,285 Lease cost under short-term operating leases 402 870 1,240 2,849 Variable lease cost under short-term and long-term operating leases 941 821 3,142 2,677 Total operating lease cost $ 4,370 $ 4,769 $ 13,495 $ 14,811 The table below presents supplemental cash flow information related to leases during the nine months ended December 31, 2023 and 2022 (in thousands): Nine Months Ended December 31, 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,362 $ 4,215 At December 31, 2023 and March 31, 2023, the weighted average remaining lease term in years and weighted average discount rate were as follows: December 31, 2023 March 31, 2023 Weighted average remaining lease term in years - operating leases 5.49 6.07 Weighted average discount rate - operating leases 4.2 % 4.2 % Future minimum payments under non-cancellable leases at December 31, 2023 are as follows (in thousands): Year ending March 31: 2024 (remaining three months) $ 2,552 2025 13,595 2026 11,442 2027 8,408 2028 7,288 Thereafter 15,767 Total lease payments $ 59,052 Less imputed interest (6,175) Present value of lease liabilities $ 52,877

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES As previously disclosed, in March 2016, Packet Intelligence LLC (Packet Intelligence or Plaintiff) filed a Complaint against NetScout and two subsidiary entities in the United States District Court for the Eastern District of Texas asserting infringement of five United States patents. Plaintiff's Complaint alleged that legacy Tektronix GeoProbe products, including the G10 and GeoBlade products, infringed these patents. NetScout filed an Answer denying Plaintiff's allegations and asserting that Plaintiff's patents were, among other things, invalid, not infringed, and unenforceable due to inequitable conduct. In October 2017, a jury trial was held to address the parties' claims and counterclaims regarding infringement of three patents by the G10 and GeoBlade products, invalidity of these patents, and damages. In October 2017, the jury rendered a verdict finding in favor of the Plaintiff and that Plaintiff was entitled to $3.5 million for pre-suit damages and $2.3 million for post-suit damages. The jury indicated that the awarded damages amounts were intended to reflect a running royalty. In September 2018, the Court entered judgment and "enhanced" the jury verdict in the amount of $2.8 million as a result of a jury finding. The judgment also awarded pre- and post-judgment interest, and a running royalty on the G10 and GeoBlade products until the expiration of the patents at issue, the last date being June 2022. Following the entry of final judgment, NetScout appealed, and in July 2020, the Court of Appeals for the Federal Circuit (Federal Circuit) issued a decision vacating the $3.5 million pre-suit damages award, affirming the $2.3 million post-suit damages award, vacating the $2.8 million enhancement award, and remanding to the district court to determine what, if any, enhancement should be awarded. In March 2021, NetScout filed a petition for a writ of certiorari to the United States Supreme Court, which was subsequently denied, challenging, among other issues, the basis for enhanced damages and the patentability of the claimed technology. In addition, on September 8 and 9, 2021, in proceedings initiated by third parties that did not involve NetScout, the Patent Trial and Appeal Board (PTAB) invalidated all the patent claims that were also asserted against NetScout in this case. After the PTAB decisions were issued, NetScout moved, among other things, to dismiss the case and enter judgment in its favor on the grounds that the PTAB decisions invalidating the asserted claims precluded Plaintiff from continuing to assert its patent infringement causes of action and from seeking damages from NetScout. The District Court denied NetScout’s motion with respect to its request to dismiss the case and enter judgment in its favor, but in response to alternative requests for relief requested by NetScout, "enhanced" the jury verdict in the amount of $1.1 million and also lowered the ongoing royalty rate on the G10 and GeoBlade products. The District Court entered an amended final judgment awarding Plaintiff $2.3 million in post-suit damages, $1.1 million in enhanced damages, pre- and post-judgment interest, and a running royalty on the G10 and GeoBlade products until the expiration of the patents at issue, the last expiration date being June 2022. On July 20, 2022, NetScout filed a notice of appeal to the Federal Circuit from, among other things, the amended final judgment. The enforcement of the amended judgment is stayed pending the resolution of the appeal. In view of the current circumstances, and if the post-suit and enhanced damages award along with the associated interest and royalties survive the recent PTAB invalidation decisions and NetScout's appeal, NetScout has concluded that the risk of loss associated with such damages award remains "probable" in accounting terms, and that the risk of loss associated with pre-suit damages is remote.

PENSION BENEFIT PLANS

PENSION BENEFIT PLANS	9 Months Ended
	Dec. 31, 2023
Retirement Benefits [Abstract]
PENSION BENEFIT PLANS	PENSION BENEFIT PLANS C ertain of the Company's non-U.S. employees participate in noncontributory defined benefit pension plans. None of the Company's employees in the U.S. participate in any noncontributory defined benefit pension plans. In general, these plans are funded based on considerations relating to legal requirements, underlying asset returns, the plan's funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors . The following sets forth the components of the Company's net periodic pension cost of the noncontributory defined benefit pension plans for the three and nine months ended December 31, 2023 and 2022, respectively, (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Service cost $ 20 $ 42 $ 60 $ 128 Interest cost 50 85 147 261 Net periodic pension cost $ 70 $ 127 $ 207 $ 389 Expected Contributions During the nine months ended December 31, 2023, the Company made contributi ons of $0.4 million t o its defined benefit pension plans. During the fiscal year ending March 31, 2024, the Company's cash contribution requirements for its defined benefit pension plans are expected to be less than $1.0 million. As a majority of the participants within the Company's plans are all active employees, the benefit payments are not expected to be material in the foreseeable future.

TREASURY STOCK

TREASURY STOCK	9 Months Ended
	Dec. 31, 2023
Equity [Abstract]
TREASURY STOCK	TREASURY STOCK On October 24, 2017, the Company's Board of Directors approved a share repurchase program that enabled the Company to repurchase up to twenty-five million shares of its common stock (2017 Share Repurchase Program). Through December 31, 2023, the Company repurchased all of the authorized 25,000,000 shares for $694.1 million in the open market under the 2017 Share Repurchase Program. The Company repurchased 1,209,153 shares for $33.6 million during the nine months ended December 31, 2023 under the 2017 Share Repurchase Program. At December 31, 2023, there were no shares of common stock that remained available to be purchased under the 2017 Share Repurchase Program. On May 3, 2022, the Company's Board of Directors approved a new share repurchase program that enables the Company to repurchase up to twenty-five million shares of its common stock (2022 Share Repurchase Program). The 2022 Share Repurchase Program became effective once the 2017 Share Repurchase Program was completed. The Company is not obligated to acquire any specific amount of common stock within any particular timeframe as a result of the 2022 Share Repurchase Program. The Company repurchased 614,516 shares for $16.4 million under this share repurchase program during the nine months ended December 31, 2023. At December 31, 2023, 24,385,484 shares of common stock remained available to be purchased under the current program. On May 9, 2022, the Company entered into accelerated share repurchase (ASR) agreements with Mizuho Markets Americas LLC (Mizuho) and Wells Fargo Bank, National Association (Wells Fargo) (collectively, the Dealers) to repurchase an aggregate of $150 million of the Company's common stock via accelerated stock repurchase transactions under the 2017 Share Repurchase Program. Under the terms of the ASR, the Company made a $75 million payment to each of the Dealers on May 10, 2022, and received an initial delivery of 1,627,907 shares from each of the Dealers, or 3,255,814 shares in the aggregate, which was approximately 70 percent of the total number of shares of the Company's common stock expected to be repurchased under the ASR agreements. These shares reduced the number of shares of the Company's common stock available for repurchase under the 2017 Share Repurchase Program. Final settlement of the ASR agreements was completed in November 2022. As a result, the Company received an additional 651,213 shares from Mizuho and 642,302 shares from Wells Fargo, or 1,293,515 shares in the aggregate, for $47.9 million, which reduced the number of shares of the Company's common stock available to be repurchased under the 2017 Share Repurchase Progr am. In total, 4,549,329 shares of the Company's common stock were repurchased under the ASR agreements at an average cost per share of $32.97 during the fiscal year ended March 31, 2023. In connection with the delivery of shares of the Company's common stock upon vesting of restricted stock units, the Compan y withheld 644,125 shares and 555,651 shares at a cost of $19.2 million and $19.2 million, res pectively, related to minimum statutory tax withholding requirements on these restricted stock units during the nine months ended December 31, 2023 and 2022, respectively. These withholding transactions do not fall under the share repurchase programs descr ibed above, and therefore do not reduce the number of shares that are available for repurchase under those programs.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NET INCOME (LOSS) PER SHARE Calculations of the basic and dilute d net income (loss) pe r share and potential common shares are as follows (in thousands, except for per share data): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Numerator: Net income (loss) $ (132,577) $ 52,618 $ (115,315) $ 62,869 Denominator: Denominator for bas ic net income (loss) p er share - weighted average common shares outstanding 71,077 71,744 71,577 72,015 Dilutive common equivalent shares: Weighted average restricted stock units and performance-based restricted stock units — 1,305 — 1,256 Denominator for diluted net income (loss) per share - weighted average shares outstanding 71,077 73,049 71,577 73,271 Net income per share: Basic net income (loss) per share $ (1.87) $ 0.73 $ (1.61) $ 0.87 Diluted net income (loss) per share $ (1.87) $ 0.72 $ (1.61) $ 0.86 The following table sets forth restricted stock units excluded from the calculation of diluted net income (loss) per share, since their inclusion would be anti-dilutive (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Restricted stock units 561 207 778 1,580 Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options and unrecognized compensation expense as additional proceeds. As the Company incurred a net loss during the three months and nine months ended December 31, 2023, all outstanding restricted stock units and performance-based restricted stock units have an anti-dilutive effect and are therefore excluded from the computation of diluted weighted average shares outstanding.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Generally, the Company's effective tax rate differs from the U.S. federal statutory income tax rate primarily due to foreign withholding taxes and U.S. taxation on foreign earnings, which are partially offset by research and development tax credits and the foreign derived intangible income deduction. The Company's effective tax rates were 0.9% and 13.1% for the three months ended December 31, 2023 and 2022, respectively. The effective tax rate for the three months ended December 31, 2023 differed from the effective tax rate for the three months ended December 31, 2022 primarily due to the discrete income tax benefits related to the finalization of tax returns and the goodwill impairment incurred during the three months ended December 31, 2023. The Company's effective tax rates were 3.3% and 9.5% for the nine months ended December 31, 2023 and 2022, respectively. The effective tax rate for the nine months ended December 31, 2023 differed from the effective tax rate for the nine months ended December 31, 2022 primarily due to the discrete income tax benefits related to the finalization of tax returns and the goodwill impairment incurred during the nine months ended December 31, 2023.

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	9 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	SEGMENT AND GEOGRAPHIC INFORMATION The Company reports revenues and income under one reportable segment. The Company manages its business in the following geographic areas: United States, Europe, Asia and the rest of the world. The Company's policies mandate compliance with economic sanctions and the export controls. Total revenue by geography is as follows (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 United States $ 123,732 $ 181,206 $ 367,112 $ 461,672 Europe 45,363 35,926 111,531 105,013 Asia 17,257 15,422 47,982 44,608 Rest of the world 31,720 36,990 99,387 95,144 $ 218,072 $ 269,544 $ 626,012 $ 706,437

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income (loss)	$ (132,577)	$ 52,618	$ (115,315)	$ 62,869

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	Dec. 31, 2023 shares	Dec. 31, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		During the fiscal quarter ended December 31, 2023, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408, except as described in the table below: Name & Title Date Adopted Character of Trading Arrangement (1) Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement Duration (2) Other Material Terms Date Terminated Joseph G. Hadzima, Jr., Director November 30, 2023 Rule 10b5-1 Trading Arrangement Up to 7,000 shares to be Sold December 31, 2024 N/A N/A (1) Except as indicated by footnote, each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the “Rule”). (2) Except as indicated by footnote, each trading arrangement permitted or permits transactions through and including the earlier to occur of (a) the completion of all purchases or sales or (b) the date listed in the table. Each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” only permitted or only permits transactions upon expiration of the applicable mandatory cooling-off period under the Rule. Except as indicated by footnote, each arrangement also provided or provides for automatic expiration in the event of death, receipt of written notice of the closing of a merger, recapitalization, acquisition, tender or exchange offer, or other business combination or reorganization resulting in the exchange or conversion of the common stock of the Company into shares of another company, or the conversion of the common stock of the Company into rights to receive fixed amounts of cash or into debt securities and/or preferred stock (whether in whole or in part).
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Joseph G. Hadzima, Jr [Member]
Trading Arrangements, by Individual
Name	Joseph G. Hadzima, Jr.
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 30, 2023
Arrangement Duration	397 days
Aggregate Available	7,000	7,000

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared by NetScout Systems, Inc. (NetScout or the Company). Certain information and footnote disclosures normally included in financial statements prepared under United States generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, the unaudited interim consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company's financial position and stockholders' equity, results of operations and cash flows. The year-end consolidated balance sheet data and statement of stockholders' equity were derived from the Company's audited financial statements, but do not include all disclosures required by GAAP. The results reported in these unaudited interim consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. All significant intercompany accounts and transactions are eliminated in consolidation. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023 filed with the Securities and Exchange Commission on May 16, 2023.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires companies to recognize and measure contract assets and contract liabilities acquired in a business combination as if the acquiring company originated the related revenue contracts. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. ASU 2021-08 was adopted on April 1, 2023. Amendments within the standard are required to be applied on a prospective basis from the date of adoption. The Company will apply the provisions of ASU 2021-08 to future acquisitions, if any. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendments are effective retrospectively for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 is effective for NetScout beginning April 1, 2025. Early adoption is permitted. The Company is in the process of evaluating the impact that the adoption ASU 2023-09 will have to the financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 is effective for NetScout beginning April 1, 2025. Early adoption is permitted, and the amendments should be applied retrospectively. The Company is in the process of evaluating the impact that the adoption ASU 2023-07 will have to the financial statements and related disclosures.
Revenue Recognition Policy	Revenue Recognition Policy The Company exercises judgment and uses estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting period. The Company derives revenues primarily from the sale of network management tools and cybersecurity solutions for service provider and enterprise customers, which include hardware, software, and service offerings. The Company's product sales consist of software only offerings and offerings which include hardware appliances with embedded software that are essential to providing customers the intended functionality of the solutions. The Company accounts for revenue once a legally enforceable contract with a customer has been approved by the parties and the related promises to transfer products or services have been identified. A contract is defined by the Company as an arrangement with commercial substance identifying payment terms, each party's rights and obligations regarding the products or services to be transferred and the amount the Company deems probable of collection. Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. Revenue is recognized when control of the products or services are transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for products and services. Product revenue is typically recognized upon fulfillment, provided a legally enforceable contract exists, control has passed to the customer, and in the case of software products, when the customer has the rights and ability to access the software, and collection of the related receivable is probable. If any significant obligations to the customer remain post-delivery, typically involving obligations relating to installation and acceptance by the customer, revenue recognition is deferred until such obligations have been fulfilled. The Company's service offerings include installation, integration, extended warranty and maintenance services, post-contract customer support, stand-ready software-as-a-service (SAAS) and other professional services including consulting and training. The Company generally provides software and/or hardware support as part of product sales. Revenue related to the initial bundled software and hardware support is recognized ratably over the support period. In addition, customers can elect to purchase extended support agreements for periods after the initial software/hardware warranty expiration. Support services generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates, bug fixes and hardware repair and replacement. Consulting services are recognized upon delivery or completion of performance depending on the terms of the underlying contract. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in services revenue, with the offsetting expense recorded in cost of service revenue. Training services include on-site and classroom training. Training revenues are recognized upon delivery of the training. Generally, the Company's contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. Bundled arrangements are concurrent customer purchases of a combination of the Company's product and service offerings that may be delivered at various points in time. The Company allocates the transaction price among the performance obligations in an amount that depicts the relative standalone selling prices (SSP) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. The Company uses a range of amounts to estimate SSP for each of the products and services sold, based primarily on the performance obligation's historical pricing. The Company also considers its overall pricing objectives and practices across different sales channels and geographies, and market conditions. Generally, the Company has established SSP for a majority of its service performance obligations based on historical standalone sales. In certain instances, the Company has established SSP for services based upon an estimate of profitability and the underlying cost to fulfill those services. SSP has primarily been established for product performance obligations as the average or median selling price the performance obligation was recently sold for, whether sold alone or sold as part of a bundle transaction. The Company reviews sales of the product performance obligations on a quarterly basis and updates, when appropriate, its SSP for such performance obligations to ensure that it reflects recent pricing experience. The Company's products are distributed through its direct sales force and indirect distribution channels through alliances with resellers and distributors. Revenue arrangements with resellers and distributors are recognized on a sell-in basis; that is, when control of the product transfers to the reseller or distributor. The Company records consideration given to a customer as a reduction of revenue to the extent they have recorded revenue from the customer. With limited exceptions, the Company's return policy does not allow product returns for a refund. Returns have been insignificant to date. In addition, the Company has a history of successfully collecting receivables from its resellers and distributors.

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Allowance for Credit Losses	The following table summarizes the activity in the allowance for credit losses (in thousands): Balance at March 31, 2023 $ 675 Additions resulting in charges to operations 451 Charges (recoveries) to other accounts — Deductions due to write-offs (50) Balance at December 31, 2023 $ 1,076

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-Based Compensation Expense	The following is a summary of share-based compensation expense including restricted stock units and performance-based restricted stock units granted pursuant to the Company's Amended 2007 Plan, the Amended 2019 Plan, and employee stock purchases made under the Company's 2011 Amended and Restated Employee Stock Purchase Plan (ESPP), based on estimated fair values within the applicable cost and expense lines identified below (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Cost of product revenue $ 306 $ 262 $ 1,027 $ 869 Cost of service revenue 2,069 1,781 6,897 5,606 Research and development 4,498 4,174 14,872 13,185 Sales and marketing 5,680 5,445 19,639 17,238 General and administrative 3,811 3,481 12,218 10,327 $ 16,364 $ 15,143 $ 54,653 $ 47,225

CASH, CASH EQUIVALENTS, MARKE_2

CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS (Tables)	9 Months Ended
	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Marketable Securities	The following is a summary of marketable securities held by NetScout at December 31, 2023, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 10,990 $ (26) $ 10,964 Commercial paper 8,668 — 8,668 Certificates of deposit 3,855 — 3,855 Total short-term marketable securities 23,513 (26) 23,487 U.S. government and municipal obligations 1,013 (3) 1,010 Total long-term marketable securities 1,013 (3) 1,010 Total marketable securities $ 24,526 $ (29) $ 24,497 The following is a summary of marketable securities held by NetScout at March 31, 2023, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 8,796 $ (1) $ 8,795 Commercial paper 19,136 — 19,136 Corporate bonds 310 — 310 Certificates of deposit 3,963 — 3,963 Total short-term marketable securities 32,205 (1) 32,204 U.S. government and municipal obligations 8,915 25 8,940 Total long-term marketable securities 8,915 25 8,940 Total marketable securities $ 41,120 $ 24 $ 41,144
Schedule of Contractual Maturities of Marketable Securities	Contractual maturities of the Company's marketable securities held at December 31, 2023 and March 31, 2023 were as follows (in thousands): December 31, March 31, Available-for-sale securities: Due in 1 year or less $ 23,487 $ 32,204 Due after 1 year through 5 years 1,010 8,940 $ 24,497 $ 41,144

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities	The following tables present the Company's financial assets and liabilities measured on a recurring basis using the fair value hierarchy at December 31, 2023 and March 31, 2023 (in thousands): Fair Value Measurements at December 31, 2023 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 296,144 $ 1,511 $ — $ 297,655 U.S. government and municipal obligations 11,974 — — 11,974 Commercial paper — 8,668 — 8,668 Certificate of deposits — 3,855 — 3,855 Equity investment in Napatech 7,970 — — 7,970 Derivative financial instruments — 67 — 67 $ 316,088 $ 14,101 $ — $ 330,189 LIABILITIES: Derivative financial instruments $ — $ (12) $ — $ (12) $ — $ (12) $ — $ (12) Fair Value Measurements at March 31, 2023 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 370,455 $ 16,339 $ — $ 386,794 U.S. government and municipal obligations 17,735 — — 17,735 Commercial paper — 19,136 — 19,136 Corporate bonds 310 — — 310 Certificate of deposits — 3,963 — 3,963 Derivative financial instruments — 59 — 59 $ 388,500 $ 39,497 $ — $ 427,997 LIABILITIES: Derivative financial instruments $ — $ (49) $ (1,380) $ (1,429) $ — $ (49) $ (1,380) $ (1,429)
Schedule of Reconciliation of Changes in Fair Value of Level 3 Financial Assets	The following table sets forth a reconciliation of changes in the fair value of the Company's Level 3 financial liability for the nine months ended December 31, 2023 (in thousands): Derivative Instrument Balance at March 31, 2023 $ (1,380) Change in fair value of derivative investment 206 Settlement of derivative instrument 1,174 Balance at December 31, 2023 $ —

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following (in thousands): December 31, March 31, Raw materials $ 10,651 $ 12,352 Work in process 14 14 Finished goods 4,157 5,183 Deferred costs 520 407 $ 15,342 $ 17,956

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Amount of Goodwill	The following table summarizes the changes in the carrying amount of goodwill for the nine months ended December 31, 2023 as follows (in thousands): Balance at March 31, 2023 $ 1,724,404 Goodwill impairment (167,106) Divestiture of a business (4,259) Foreign currency translation impact (1,498) Balance at December 31, 2023 $ 1,551,541
Schedule of Intangible Assets	Intangible assets include the following amortizable intangible assets at December 31, 2023 (in thousands): Estimated Useful Life in Years Cost Accumulated Net Developed technology 3 - 13 years $ 248,827 $ (237,264) $ 11,563 Customer relationships 8 - 18 years 765,515 (464,928) 300,587 Distributor relationships and technology licenses 1 - 6 years 7,812 (7,219) 593 Definite-lived trademark and trade name 2 - 9 years 57,768 (46,803) 10,965 Core technology 10 years 7,192 (7,192) — Capitalized software 3 years 3,317 (3,317) — Other 1 - 20 years 1,208 (1,017) 191 $ 1,091,639 $ (767,740) $ 323,899 Intangible assets include the following amortizable intangible assets at March 31, 2023 (in thousands): Estimated Useful Life in Years Cost Accumulated Net Developed technology 3 - 13 years $ 249,903 $ (233,440) $ 16,463 Customer relationships 8 - 18 years 768,179 (433,876) 334,303 Distributor relationships and technology licenses 1 - 6 years 11,547 (10,133) 1,414 Definite-lived trademark and trade name 2 - 9 years 57,694 (43,489) 14,205 Core technology 10 years 7,192 (7,192) — Non-compete agreements 3 years 292 (292) — Capitalized software 3 years 3,317 (3,317) — Other 1 - 20 years 1,208 (1,002) 206 $ 1,099,332 $ (732,741) $ 366,591
Schedule of Finite-lived Intangible Assets Amortization Expense	The following table provides a summary of amortization expense for the three and nine months ended December 31, 2023 and 2022 , respectively (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Amortization of intangible assets included as: Cost of product revenue $ 1,907 $ 2,627 $ 5,733 $ 7,908 Operating expense 12,538 13,823 37,805 41,515 $ 14,445 $ 16,450 $ 43,538 $ 49,423
Schedule of Expected Future Amortization Expense	The following is the expected future amortization expense at December 31, 2023 for the fiscal years ending March 31 (in thousands): 2024 (remaining three months) $ 14,485 2025 50,915 2026 46,544 2027 43,660 2028 40,699 Thereafter 127,596 $ 323,899

DERIVATIVE INSTRUMENTS AND HE_2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	9 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts and Fair Values of Derivative Instruments on Consolidated Balance Sheet	The notional amounts and fair values of derivative instruments in the consolidated balance sheets at December 31, 2023 and March 31, 2023 were as follows (in thousands): Notional Amounts (a) Prepaid Expenses and Other Current Assets Accrued Other December 31, March 31, December 31, March 31, December 31, March 31, Derivatives Designated as Hedging Instruments: Forward contracts $ 10,373 $ 10,265 $ 67 $ 59 $ 7 $ 29 Derivatives Not Designated as Hedging Instruments: Forward contracts 5,098 6,031 — — 5 20 $ 67 $ 59 $ 12 $ 49 (a) Notional amounts represent the gross contract/notional amount of the derivatives outstanding.
Schedule of Effect of Foreign Exchange Forward Contracts on OCI and Results of Operations	The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the three months ended December 31, 2023 and 2022 (in thousands): Gain Recognized in Gain Reclassified from December 31, December 31, Location December 31, December 31, Forward contracts $ 250 $ 611 Research and development $ 1 $ 30 Sales and marketing 38 97 $ 250 $ 611 $ 39 $ 127 (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b) The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts not designated as hedging instruments had on the Company's results of operations for the three months ended December 31, 2023 and 2022 (in thousands): Loss Recognized in Income Location December 31, December 31, Forward contracts General and administrative $ (5) $ — $ (5) $ — (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the nine months ended December 31, 2023 and 2022 (in thousands): Gain (Loss) Recognized in Gain (Loss) Reclassified from December 31, December 31, Location December 31, December 31, Forward contracts $ 110 $ (582) Research and development $ — $ 49 Sales and marketing (76) 452 $ 110 $ (582) $ (76) $ 501 (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b) The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts not designated as hedging instruments had on the Company's results of operations for the nine months ended December 31, 2023 and 2022 (in thousands): Loss Recognized in Income Location December 31, December 31, Forward contracts General and administrative $ (5) $ — $ (5) $ — (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates.

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Summary of Components of Operating Lease Cost and Supplemental Cash Flow Information	The components of operating lease cost for the three and nine months ended December 31, 2023 and 2022, respectively, were as follows (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Lease cost under long-term operating leases $ 3,027 $ 3,078 $ 9,113 $ 9,285 Lease cost under short-term operating leases 402 870 1,240 2,849 Variable lease cost under short-term and long-term operating leases 941 821 3,142 2,677 Total operating lease cost $ 4,370 $ 4,769 $ 13,495 $ 14,811 The table below presents supplemental cash flow information related to leases during the nine months ended December 31, 2023 and 2022 (in thousands): Nine Months Ended December 31, 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,362 $ 4,215 At December 31, 2023 and March 31, 2023, the weighted average remaining lease term in years and weighted average discount rate were as follows: December 31, 2023 March 31, 2023 Weighted average remaining lease term in years - operating leases 5.49 6.07 Weighted average discount rate - operating leases 4.2 % 4.2 %
Summary of Future Minimum Payments Under Non-Cancellable Leases	Future minimum payments under non-cancellable leases at December 31, 2023 are as follows (in thousands): Year ending March 31: 2024 (remaining three months) $ 2,552 2025 13,595 2026 11,442 2027 8,408 2028 7,288 Thereafter 15,767 Total lease payments $ 59,052 Less imputed interest (6,175) Present value of lease liabilities $ 52,877

PENSION BENEFIT PLANS (Tables)

PENSION BENEFIT PLANS (Tables)	9 Months Ended
	Dec. 31, 2023
Retirement Benefits [Abstract]
Schedule of Net Periodic Pension Costs of Noncontributory Defined Benefit Pension Plans	The following sets forth the components of the Company's net periodic pension cost of the noncontributory defined benefit pension plans for the three and nine months ended December 31, 2023 and 2022, respectively, (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Service cost $ 20 $ 42 $ 60 $ 128 Interest cost 50 85 147 261 Net periodic pension cost $ 70 $ 127 $ 207 $ 389

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Schedule of Calculations of the Basic and Diluted Net Income (Loss) Per Share and Potential Common Shares	Calculations of the basic and dilute d net income (loss) pe r share and potential common shares are as follows (in thousands, except for per share data): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Numerator: Net income (loss) $ (132,577) $ 52,618 $ (115,315) $ 62,869 Denominator: Denominator for bas ic net income (loss) p er share - weighted average common shares outstanding 71,077 71,744 71,577 72,015 Dilutive common equivalent shares: Weighted average restricted stock units and performance-based restricted stock units — 1,305 — 1,256 Denominator for diluted net income (loss) per share - weighted average shares outstanding 71,077 73,049 71,577 73,271 Net income per share: Basic net income (loss) per share $ (1.87) $ 0.73 $ (1.61) $ 0.87 Diluted net income (loss) per share $ (1.87) $ 0.72 $ (1.61) $ 0.86
Summary of Antidilutive Securities Excluded from Computation of Diluted Net Income Per Share	The following table sets forth restricted stock units excluded from the calculation of diluted net income (loss) per share, since their inclusion would be anti-dilutive (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 Restricted stock units 561 207 778 1,580

SEGMENT AND GEOGRAPHIC INFORM_2

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	9 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Summary of Total Revenue by Geography	Total revenue by geography is as follows (in thousands): Three Months Ended Nine Months Ended December 31, December 31, 2023 2022 2023 2022 United States $ 123,732 $ 181,206 $ 367,112 $ 461,672 Europe 45,363 35,926 111,531 105,013 Asia 17,257 15,422 47,982 44,608 Rest of the world 31,720 36,990 99,387 95,144 $ 218,072 $ 269,544 $ 626,012 $ 706,437

BASIS OF PRESENTATION - Narrati

BASIS OF PRESENTATION - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($)
Senior Secured Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 700

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue recognized			$ 273.8
Deferred revenue	$ 418		418
Unrecognized accounts receivable and deferred revenue	6.3		6.3		$ 6.6
Capitalized contract cost	9		9		9.4
Amortization of capitalized costs to obtain contracts	1.7	$ 1.8	5.1	$ 5.2
Prepaid Expenses and Other Current Assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost	4.5		4.5		4.7
Other Assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost	$ 4.5		$ 4.5		$ 4.7
Minimum
Disaggregation of Revenue [Line Items]
Payment terms			30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms			90 days

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) $ in Millions	Dec. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 293.4
Revenue, remaining performance obligation, percentage	70%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 124.6
Revenue, remaining performance obligation, percentage	30%
Revenue, remaining performance obligation, expected timing of satisfaction, period

REVENUE - Allowance for Credit

REVENUE - Allowance for Credit Losses (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2023 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 675
Additions resulting in charges to operations	451
Charges (recoveries) to other accounts	0
Deductions due to write-offs	(50)
Allowance for credit losses, ending balance	$ 1,076

SHARE-BASED COMPENSATION - Narr

SHARE-BASED COMPENSATION - Narrative (Details) - $ / shares				9 Months Ended
	Sep. 14, 2023	Aug. 24, 2022	Sep. 10, 2020	Dec. 31, 2023
Performance Based Restricted Stock Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award performance measurement period				3 years
ESPP
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Shares issued (in shares)				209,791
Percentage of common stock price for employees				85%
Share price (in dollars per share)				$ 28.63
2019 Amended Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of new shares (in shares)	5,900,000	7,000,000	4,700,000
Number of shares reserved for issuance (in shares)	8,263,547
Shares issued (in shares)	5,900,000
Number of shares available for grant (in shares)	2,363,547			8,279,049
2019 Amended Plan | Minimum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based awards generally vesting years			1 year

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 16,364	$ 15,143	$ 54,653	$ 47,225
Cost of product revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	306	262	1,027	869
Cost of service revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	2,069	1,781	6,897	5,606
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	4,498	4,174	14,872	13,185
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	5,680	5,445	19,639	17,238
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 3,811	$ 3,481	$ 12,218	$ 10,327

CASH, CASH EQUIVALENTS, MARKE_3

CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS- Summary of Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 24,526	$ 41,120
Unrealized Gains (Losses)	(29)	24
Fair Value	24,497	41,144
Short-term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	23,513	32,205
Unrealized Gains (Losses)	(26)	(1)
Fair Value	23,487	32,204
Long-term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,013	8,915
Unrealized Gains (Losses)	(3)	25
Fair Value	1,010	8,940
U.S. government and municipal obligations
Debt Securities, Available-for-sale [Line Items]
Fair Value	11,974	17,735
U.S. government and municipal obligations | Short-term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,990	8,796
Unrealized Gains (Losses)	(26)	(1)
Fair Value	10,964	8,795
U.S. government and municipal obligations | Long-term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,013	8,915
Unrealized Gains (Losses)	(3)	25
Fair Value	1,010	8,940
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Fair Value	8,668	19,136
Commercial paper | Short-term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	8,668	19,136
Unrealized Gains (Losses)	0	0
Fair Value	8,668	19,136
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Fair Value		310
Corporate bonds | Short-term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		310
Unrealized Gains (Losses)		0
Fair Value		310
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Fair Value	3,855	3,963
Certificates of deposit | Short-term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,855	3,963
Unrealized Gains (Losses)	0	0
Fair Value	$ 3,855	$ 3,963

CASH, CASH EQUIVALENTS, MARKE_4

CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Summary of Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Available-for-sale securities:
Due in 1 year or less	$ 23,487	$ 32,204
Due after 1 year through 5 years	1,010	8,940
Available-for-sale Securities	$ 24,497	$ 41,144

CASH, CASH EQUIVALENTS, MARKE_5

CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Narrative (Details) - USD ($) shares in Millions, $ in Millions		1 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 30, 2023	Feb. 28, 2023	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Change in fair value of derivative investment				$ (0.2)
Foreign Exchange Forward
Debt Securities, Available-for-sale [Line Items]
Number of shares acquired (in shares)	6.2	6.2	6.2
Payment for common stock	$ 7.5	$ 6.2	$ 7.5
Fair value				8
Change in fair value of derivative investment				$ 1.8

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
ASSETS:
Cash and cash equivalents	$ 297,655	$ 386,794
Available-for-sale securities	24,497	41,144
Equity investment in Napatech	7,970
Derivative financial instruments	67	59
Total assets	330,189	427,997
LIABILITIES:
Derivative financial instruments	(12)	(1,429)
Total liabilities	(12)	(1,429)
U.S. government and municipal obligations
ASSETS:
Available-for-sale securities	11,974	17,735
Commercial paper
ASSETS:
Available-for-sale securities	8,668	19,136
Corporate bonds
ASSETS:
Available-for-sale securities		310
Certificate of deposits
ASSETS:
Available-for-sale securities	3,855	3,963
Level 1
ASSETS:
Cash and cash equivalents	296,144	370,455
Equity investment in Napatech	7,970
Derivative financial instruments	0	0
Total assets	316,088	388,500
LIABILITIES:
Derivative financial instruments	0	0
Total liabilities	0	0
Level 1 | U.S. government and municipal obligations
ASSETS:
Available-for-sale securities	11,974	17,735
Level 1 | Commercial paper
ASSETS:
Available-for-sale securities	0	0
Level 1 | Corporate bonds
ASSETS:
Available-for-sale securities		310
Level 1 | Certificate of deposits
ASSETS:
Available-for-sale securities	0	0
Level 2
ASSETS:
Cash and cash equivalents	1,511	16,339
Equity investment in Napatech	0
Derivative financial instruments	67	59
Total assets	14,101	39,497
LIABILITIES:
Derivative financial instruments	(12)	(49)
Total liabilities	(12)	(49)
Level 2 | U.S. government and municipal obligations
ASSETS:
Available-for-sale securities	0	0
Level 2 | Commercial paper
ASSETS:
Available-for-sale securities	8,668	19,136
Level 2 | Corporate bonds
ASSETS:
Available-for-sale securities		0
Level 2 | Certificate of deposits
ASSETS:
Available-for-sale securities	3,855	3,963
Level 3
ASSETS:
Cash and cash equivalents	0	0
Equity investment in Napatech	0
Derivative financial instruments	0	0
Total assets	0	0
LIABILITIES:
Derivative financial instruments	0	(1,380)
Total liabilities	0	(1,380)
Level 3 | U.S. government and municipal obligations
ASSETS:
Available-for-sale securities	0	0
Level 3 | Commercial paper
ASSETS:
Available-for-sale securities	0	0
Level 3 | Corporate bonds
ASSETS:
Available-for-sale securities		0
Level 3 | Certificate of deposits
ASSETS:
Available-for-sale securities	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) shares in Millions, $ in Millions		1 Months Ended		9 Months Ended
	Mar. 31, 2023	Apr. 30, 2023	Feb. 28, 2023	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Decrease in fair value of derivative instrument				$ 0.2
Foreign Exchange Forward
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of shares acquired (in shares)	6.2	6.2	6.2
Payment for common stock	$ 7.5	$ 6.2	$ 7.5
Decrease in fair value of derivative instrument				$ (1.8)

FAIR VALUE MEASUREMENTS - Recon

FAIR VALUE MEASUREMENTS - Reconciliation of Changes in Level 3 Liabilities (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at March 31, 2023	$ (1,380)
Change in fair value of derivative investment	206
Settlement of derivative instrument	1,174
Balance at December 31, 2023	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 10,651	$ 12,352
Work in process	14	14
Finished goods	4,157	5,183
Deferred costs	520	407
Total inventories	$ 15,342	$ 17,956

DIVESTITURES (Details)

DIVESTITURES (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 08, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of a business				$ 7,766	$ 0
Gain on divestiture		$ 0	$ 0	3,806	$ 0
TO Business | Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of a business	$ 7,800
Gain on divestiture				$ 3,800

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) reporting_unit	Dec. 31, 2022 USD ($)	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reporting units | reporting_unit			1
Goodwill impairment	$ 167,106	$ 0	$ 167,106	$ 0
Goodwill impairment as a result of 1% increase or decrease in company-specific control premium in determining fair value of reporting unit			15,600
Goodwill	1,551,541		1,551,541		$ 1,724,404
Carrying value of intangible assets	$ 323,899		$ 323,899		$ 366,591

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Balance at March 31, 2023			$ 1,724,404
Goodwill impairment	$ (167,106)	$ 0	(167,106)	$ 0
Divestiture of a business			(4,259)
Foreign currency translation impact			(1,498)
Balance at December 31, 2023	$ 1,551,541		$ 1,551,541

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Cost	$ 1,091,639	$ 1,099,332
Accumulated Amortization	(767,740)	(732,741)
Net	323,899	366,591
Developed technology
Finite-Lived Intangible Assets [Line Items]
Cost	248,827	249,903
Accumulated Amortization	(237,264)	(233,440)
Net	$ 11,563	$ 16,463
Developed technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	3 years	3 years
Developed technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	13 years	13 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Cost	$ 765,515	$ 768,179
Accumulated Amortization	(464,928)	(433,876)
Net	$ 300,587	$ 334,303
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	8 years	8 years
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	18 years	18 years
Distributor relationships and technology licenses
Finite-Lived Intangible Assets [Line Items]
Cost	$ 7,812	$ 11,547
Accumulated Amortization	(7,219)	(10,133)
Net	$ 593	$ 1,414
Distributor relationships and technology licenses | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	1 year	1 year
Distributor relationships and technology licenses | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	6 years	6 years
Definite-lived trademark and trade name
Finite-Lived Intangible Assets [Line Items]
Cost	$ 57,768	$ 57,694
Accumulated Amortization	(46,803)	(43,489)
Net	$ 10,965	$ 14,205
Definite-lived trademark and trade name | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	2 years	2 years
Definite-lived trademark and trade name | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	9 years	9 years
Core technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	10 years	10 years
Cost	$ 7,192	$ 7,192
Accumulated Amortization	(7,192)	(7,192)
Net	$ 0	$ 0
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years		3 years
Cost		$ 292
Accumulated Amortization		(292)
Net		$ 0
Capitalized software
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	3 years	3 years
Cost	$ 3,317	$ 3,317
Accumulated Amortization	(3,317)	(3,317)
Net	0	0
Other
Finite-Lived Intangible Assets [Line Items]
Cost	1,208	1,208
Accumulated Amortization	(1,017)	(1,002)
Net	$ 191	$ 206
Other | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	1 year	1 year
Other | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life in Years	20 years	20 years

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 14,445	$ 16,450	$ 43,538	$ 49,423
Cost of product revenue
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	1,907	2,627	5,733	7,908
Operating expense
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 12,538	$ 13,823	$ 37,805	$ 41,515

GOODWILL AND INTANGIBLE ASSET_6

GOODWILL AND INTANGIBLE ASSETS - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2024 (remaining three months)	$ 14,485
2025	50,915
2026	46,544
2027	43,660
2028	40,699
Thereafter	127,596
Net	$ 323,899	$ 366,591

DERIVATIVE INSTRUMENTS AND HE_3

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details)	9 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Managing period of hedging forecasted cash flows for operating expenses denominated in foreign currencies	12 months
Contract maturity period	12 months

DERIVATIVE INSTRUMENTS AND HE_4

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Notional Amounts and Fair Values of Derivative Instruments on Consolidated Balance Sheet (Details) - Forward contracts - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Derivatives, Fair Value [Line Items]
Prepaid Expenses and Other Current Assets	$ 67	$ 59
Accrued Other	12	49
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amounts	10,373	10,265
Prepaid Expenses and Other Current Assets	67	59
Accrued Other	7	29
Designated as not Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amounts	5,098	6,031
Prepaid Expenses and Other Current Assets	0	0
Accrued Other	$ 5	$ 20

DERIVATIVE INSTRUMENTS AND HE_5

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Effect of Foreign Exchange Forward Contracts on Other Comprehensive Income and Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Loss Recognized in Income	$ (5)	$ 0	$ (5)	$ 0
Forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in OCI on Derivative	250	611	110	(582)
Gain (Loss) Reclassified from Accumulated OCI into Income	39	127	(76)	501
Loss Recognized in Income	(5)	0	(5)
Forward contracts | Research and development
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in OCI on Derivative	250	611	110	(582)
Gain (Loss) Reclassified from Accumulated OCI into Income	1	30	0	49
Forward contracts | Sales and marketing
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income	$ 38	$ 97	$ (76)	$ 452

LONG-TERM DEBT- Narrative (Deta

LONG-TERM DEBT- Narrative (Details) - Line of Credit			3 Months Ended
	Feb. 22, 2023	Jul. 27, 2021 USD ($)	Dec. 31, 2023 USD ($)
Senior Secured Revolving Credit Facility
Debt Instrument [Line Items]
Debt term		5 years
Credit facility		$ 800,000,000
Amount outstanding under credit facility			$ 100,000,000
Commitment fee percentage			0.15%
Adjusted consolidated EBITDA percentage		125%
Maximum leverage ratio		4	4
Debt default, acceleration clause, required consent percentage		50%
Unamortized debt issuance costs			$ 2,900,000
Senior Secured Revolving Credit Facility | Prepaid Expenses and Other Current Assets
Debt Instrument [Line Items]
Unamortized debt issuance costs			1,100,000
Senior Secured Revolving Credit Facility | Other Assets
Debt Instrument [Line Items]
Unamortized debt issuance costs			$ 1,800,000
Senior Secured Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Leverage ratio	3.50		3.50
Commitment fee percentage			0.30%
Senior Secured Revolving Credit Facility | Maximum | Foreign Subsidiaries
Debt Instrument [Line Items]
Voting stock pledge limit for any foreign subsidiary		65%
Senior Secured Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Leverage ratio	1.50		1.50
Commitment fee percentage			0.15%
Senior Secured Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Interest rate in excess of effective rate	0.10%
Senior Secured Revolving Credit Facility | SOFR | Debt Instrument, Covenant, Leverage Ratio 1
Debt Instrument [Line Items]
Interest rate in excess of effective rate	2%
Senior Secured Revolving Credit Facility | SOFR | Debt Instrument, Covenant, Leverage Ratio 2
Debt Instrument [Line Items]
Interest rate in excess of effective rate	1%
Senior Secured Revolving Credit Facility | LIBOR | LIBOR Loans
Debt Instrument [Line Items]
Interest rate in excess of effective rate			1%
Senior Secured Revolving Credit Facility | LIBOR | LIBOR Loans | Maximum
Debt Instrument [Line Items]
Interest rate in excess of effective rate			2%
Senior Secured Revolving Credit Facility | LIBOR | LIBOR Loans | Minimum
Debt Instrument [Line Items]
Interest rate in excess of effective rate			1%
Senior Secured Revolving Credit Facility | Base Rate | Debt Instrument, Covenant, Leverage Ratio 1
Debt Instrument [Line Items]
Interest rate in excess of effective rate	1%
Senior Secured Revolving Credit Facility | Base Rate | Debt Instrument, Covenant, Leverage Ratio 2
Debt Instrument [Line Items]
Interest rate in excess of effective rate	0%
Senior Secured Revolving Credit Facility | Base Rate | Base Rate Loans
Debt Instrument [Line Items]
Interest rate in excess of effective rate			0%
Senior Secured Revolving Credit Facility | Base Rate | Base Rate Loans | Maximum
Debt Instrument [Line Items]
Interest rate in excess of effective rate			1%
Senior Secured Revolving Credit Facility | Base Rate | Base Rate Loans | Minimum
Debt Instrument [Line Items]
Interest rate in excess of effective rate			0%
Letter of Credit Sub-facility
Debt Instrument [Line Items]
Credit facility		$ 75,000,000
Senior Secured Revolving Credit Facility Leverage Ratio Terms Two | Maximum
Debt Instrument [Line Items]
Leverage ratio			2.75
Senior Secured Revolving Credit Facility Leverage Ratio Terms Two | Minimum
Debt Instrument [Line Items]
Leverage ratio			1.50

RESTRUCTURING CHARGES - Narrati

RESTRUCTURING CHARGES - Narrative (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 employee	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 89		$ 0	$ 1,803
One-time Termination Benefits
Restructuring Cost and Reserve [Line Items]
Number of employees terminated | employee			18
Restructuring charges					$ 1,900

LEASES - Narrative (Details)

LEASES - Narrative (Details)	Dec. 31, 2023
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining lease terms	1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining lease terms	7 years

LEASES - Operating Lease Cost (

LEASES - Operating Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Lease cost under long-term operating leases	$ 3,027	$ 3,078	$ 9,113	$ 9,285
Lease cost under short-term operating leases	402	870	1,240	2,849
Variable lease cost under short-term and long-term operating leases	941	821	3,142	2,677
Total operating lease cost	$ 4,370	$ 4,769	$ 13,495	$ 14,811

LEASES - Supplemental Cash Flow

LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Leases [Abstract]
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 1,362	$ 4,215
Weighted average remaining lease term in years - operating leases	5 years 5 months 26 days		6 years 25 days
Weighted average discount rate - operating leases	4.20%		4.20%

LEASES - Future Minimum Payment

LEASES - Future Minimum Payments Under Non-Cancellable Leases (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Leases [Abstract]
2024 (remaining three months)	$ 2,552
2025	13,595
2026	11,442
2027	8,408
2028	7,288
Thereafter	15,767
Total lease payments	59,052
Less imputed interest	(6,175)
Present value of lease liabilities	$ 52,877

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions	1 Months Ended				9 Months Ended
	Jul. 31, 2020 USD ($)	Sep. 30, 2018 USD ($)	Oct. 31, 2017 USD ($) patent	Mar. 31, 2016 subsidiary patent	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Line Items]
Number of subsidiary entities | subsidiary				2
Number of patents allegedly infringed | patent			3	5
Damages sought		$ 1.1
Pre-suit Damages
Commitments and Contingencies Disclosure [Line Items]
Damages sought	$ 3.5		$ 3.5
Post-suit Damages
Commitments and Contingencies Disclosure [Line Items]
Damages sought	$ 2.3		$ 2.3
Enhancement Award
Commitments and Contingencies Disclosure [Line Items]
Damages sought		$ 2.8			$ 1.1

PENSION BENEFIT PLANS - Narrati

PENSION BENEFIT PLANS - Narrative (Details) $ in Millions	9 Months Ended
	Dec. 31, 2023 USD ($) employee
Defined Benefit Plan Disclosure [Line Items]
Contributions to defined benefit pension plans	$ 0.4
Expected cash contribution requirements for defined benefit pension plans, less than	$ 1
United States
Defined Benefit Plan Disclosure [Line Items]
Number of employees participating in noncontributory defined benefit pension plans | employee	0

PENSION BENEFIT PLANS - Net Per

PENSION BENEFIT PLANS - Net Periodic Pension Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Service cost	$ 20	$ 42	$ 60	$ 128
Interest cost	50	85	147	261
Net periodic pension cost	$ 70	$ 127	$ 207	$ 389

TREASURY STOCK- Narrative (Deta

TREASURY STOCK- Narrative (Details) - USD ($)		1 Months Ended	9 Months Ended		12 Months Ended	74 Months Ended
	May 10, 2022	Nov. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023	Dec. 31, 2023	May 09, 2022	May 03, 2022	Oct. 24, 2017
Equity, Class of Treasury Stock [Line Items]
Value of shares repurchased			$ 50,000,000	$ 150,039,000
Restricted Stock Units
Equity, Class of Treasury Stock [Line Items]
Shares paid for tax withholding (in shares)			644,125	555,651
Cost related to tax withholding			$ 19,200,000	$ 19,200,000
Share Repurchase Program, October 2017
Equity, Class of Treasury Stock [Line Items]
Stock authorized to repurchase under stock repurchase program (in shares)									25,000,000
Shares repurchased during the period (in shares)			1,209,153			25,000,000
Shares repurchased						$ 694,100,000
Stock remaining to be purchased (in shares)			0			0
Value of shares repurchased			$ 33,600,000
Share Repurchase Program, May 2022
Equity, Class of Treasury Stock [Line Items]
Stock authorized to repurchase under stock repurchase program (in shares)								25,000,000
Shares repurchased during the period (in shares)			614,516
Stock remaining to be purchased (in shares)			24,385,484			24,385,484
Value of shares repurchased			$ 16,400,000
ASR Program
Equity, Class of Treasury Stock [Line Items]
Shares repurchased during the period (in shares)	3,255,814	1,293,515		4,500,000	4,549,329
Value of shares repurchased		$ 47,900,000
Repurchase of aggregate amount							$ 150,000,000
Percentage of aggregate amount of shares expected to be repurchased	70%
Shares repurchased during the period, average cost per share (in dollars per share)					$ 32.97
ASR Program | Mizuho Markets Americas LLC
Equity, Class of Treasury Stock [Line Items]
Shares repurchased during the period (in shares)	1,627,907	651,213
Value of shares repurchased	$ 75,000,000
ASR Program | Wells Fargo Bank, National Association
Equity, Class of Treasury Stock [Line Items]
Shares repurchased during the period (in shares)	1,627,907	642,302
Value of shares repurchased	$ 75,000,000

NET INCOME (LOSS) PER SHARE - S

NET INCOME (LOSS) PER SHARE - Schedule of Calculations of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net income (loss)	$ (132,577)	$ 52,618	$ (115,315)	$ 62,869
Denominator:
Denominator for basic net income (loss) per share - weighted average common shares outstanding (in shares)	71,077	71,744	71,577	72,015
Dilutive common equivalent shares:
Weighted average restricted stock units and performance-based restricted stock units (in shares)	0	1,305	0	1,256
Denominator for diluted net income (loss) per share - weighted average shares outstanding (in shares)	71,077	73,049	71,577	73,271
Net income per share:
Basic net income (loss) per share (in dollars per share)	$ (1.87)	$ 0.73	$ (1.61)	$ 0.87
Diluted net income (loss) per share (in dollars per share)	$ (1.87)	$ 0.72	$ (1.61)	$ 0.86

NET INCOME (LOSS) PER SHARE - A

NET INCOME (LOSS) PER SHARE - Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	561	207	778	1,580

NET INCOME (LOSS) PER SHARE - N

NET INCOME (LOSS) PER SHARE - Narrative (Details) - shares		1 Months Ended	9 Months Ended	12 Months Ended
	May 10, 2022	Nov. 30, 2022	Dec. 31, 2022	Mar. 31, 2023
ASR Program
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Repurchase of treasury stock (in shares)	3,255,814	1,293,515	4,500,000	4,549,329

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	(0.90%)	13.10%	3.30%	9.50%

SEGMENT AND GEOGRAPHIC INFORM_3

SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)
Segment Reporting [Abstract]
Number of segments | segment			1
Segment Reporting Information [Line Items]
Total revenue	$ 218,072	$ 269,544	$ 626,012	$ 706,437
United States
Segment Reporting Information [Line Items]
Total revenue	123,732	181,206	367,112	461,672
Europe
Segment Reporting Information [Line Items]
Total revenue	45,363	35,926	111,531	105,013
Asia
Segment Reporting Information [Line Items]
Total revenue	17,257	15,422	47,982	44,608
Rest of the world
Segment Reporting Information [Line Items]
Total revenue	$ 31,720	$ 36,990	$ 99,387	$ 95,144