Cover Page
Cover Page - shares | 6 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Commvault Systems, Inc. | |
Entity Central Index Key | 0001169561 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,711,386 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CVLT | |
Security Exchange Name | NASDAQ | |
Entity File Number | 1-33026 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3447504 | |
Entity Address, Address Line One | 1 Commvault Way | |
Entity Address, City or Town | Tinton Falls | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07724 | |
City Area Code | 732 | |
Local Phone Number | 870-4000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 377,625 | $ 327,992 |
Short-term investments | 97,619 | 130,338 |
Trade accounts receivable | 127,593 | 176,836 |
Other current assets | 21,916 | 19,836 |
Total current assets | 624,753 | 655,002 |
Property and equipment, net | 118,022 | 122,716 |
Operating lease assets | 16,255 | |
Deferred commissions cost | 31,364 | 33,619 |
Other assets | 11,372 | 11,116 |
Total assets | 801,766 | 822,453 |
Current liabilities: | ||
Accounts payable | 1,744 | 2,186 |
Accrued liabilities | 83,601 | 85,721 |
Current portion of operating lease liabilities | 7,832 | |
Deferred revenue | 226,932 | 238,439 |
Total current liabilities | 320,109 | 326,346 |
Deferred revenue, less current portion | 94,411 | 99,257 |
Deferred tax liabilities, net | 2,230 | 2,594 |
Long-term operating lease liabilities | 10,486 | |
Other liabilities | 2,416 | 2,953 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value: 250,000 shares authorized, 45,409 shares and 45,582 shares issued and outstanding at September 30, 2019 and March 31, 2019, respectively | 452 | 454 |
Additional paid-in capital | 916,899 | 887,907 |
Accumulated deficit | (532,504) | (485,490) |
Accumulated other comprehensive loss | (12,733) | (11,568) |
Total stockholders’ equity | 372,114 | 391,303 |
Total liabilities and stockholders’ equity | $ 801,766 | $ 822,453 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 45,409,000 | 45,582,000 |
Common stock, shares outstanding (in shares) | 45,409,000 | 45,582,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 167,582 | $ 169,078 | $ 329,785 | $ 345,255 |
Cost of revenues: | ||||
Total cost of revenues | 31,241 | 26,873 | 59,961 | 54,479 |
Gross margin | 136,341 | 142,205 | 269,824 | 290,776 |
Operating expenses: | ||||
Sales and marketing | 80,960 | 89,494 | 168,345 | 187,110 |
Research and development | 23,227 | 23,649 | 46,807 | 47,746 |
General and administrative | 24,753 | 24,862 | 47,260 | 48,101 |
Restructuring | 12,851 | 494 | 16,930 | 8,389 |
Depreciation and amortization | 2,719 | 2,700 | 5,325 | 5,233 |
Total operating expenses | 144,510 | 141,199 | 284,667 | 296,579 |
Income (loss) from operations | (8,169) | 1,006 | (14,843) | (5,803) |
Interest income | 1,561 | 1,148 | 3,484 | 2,039 |
Income (loss) before income taxes | (6,608) | 2,154 | (11,359) | (3,764) |
Income tax expense | 476 | 1,263 | 2,571 | 3,912 |
Net income (loss) | $ (7,084) | $ 891 | $ (13,930) | $ (7,676) |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.16) | $ 0.02 | $ (0.31) | $ (0.17) |
Diluted (in dollars per share) | $ (0.16) | $ 0.02 | $ (0.31) | $ (0.17) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 45,277 | 45,880 | 45,363 | 45,666 |
Diluted (in shares) | 45,277 | 47,798 | 45,363 | 45,666 |
Software and products | ||||
Revenues: | ||||
Total revenues | $ 68,595 | $ 69,504 | $ 132,269 | $ 144,554 |
Cost of revenues: | ||||
Total cost of revenues | 8,831 | 5,049 | 14,861 | 9,169 |
Services | ||||
Revenues: | ||||
Total revenues | 98,987 | 99,574 | 197,516 | 200,701 |
Cost of revenues: | ||||
Total cost of revenues | $ 22,410 | $ 21,824 | $ 45,100 | $ 45,310 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (7,084) | $ 891 | $ (13,930) | $ (7,676) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (1,138) | (1,151) | (1,165) | (6,320) |
Comprehensive loss | $ (8,222) | $ (260) | $ (15,095) | $ (13,996) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid – In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2018 | 45,118 | ||||
Beginning balance at Mar. 31, 2018 | $ 404,064 | $ 450 | $ 782,764 | $ (373,678) | $ (5,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 35,754 | 35,754 | |||
Share issuances related to stock-based compensation (in shares) | 1,483 | ||||
Share issuances related to stock-based compensation | 29,626 | $ 14 | 29,612 | ||
Repurchase of common stock (in shares) | (567) | ||||
Repurchase of common stock | (38,303) | $ (6) | (4,508) | (33,789) | |
Net income (loss) | (7,676) | (7,676) | |||
Other comprehensive loss | (6,320) | (6,320) | |||
Ending balance (in shares) at Sep. 30, 2018 | 46,034 | ||||
Ending balance at Sep. 30, 2018 | 417,145 | $ 458 | 843,622 | (415,143) | (11,792) |
Beginning balance (in shares) at Jun. 30, 2018 | 45,580 | ||||
Beginning balance at Jun. 30, 2018 | 396,715 | $ 454 | 811,271 | (404,369) | (10,641) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 17,750 | 17,750 | |||
Share issuances related to stock-based compensation (in shares) | 655 | ||||
Share issuances related to stock-based compensation | 16,228 | $ 6 | 16,222 | ||
Repurchase of common stock (in shares) | (201) | ||||
Repurchase of common stock | (13,288) | $ (2) | (1,621) | (11,665) | |
Net income (loss) | 891 | 891 | |||
Other comprehensive loss | (1,151) | (1,151) | |||
Ending balance (in shares) at Sep. 30, 2018 | 46,034 | ||||
Ending balance at Sep. 30, 2018 | 417,145 | $ 458 | 843,622 | (415,143) | (11,792) |
Beginning balance (in shares) at Mar. 31, 2019 | 45,582 | ||||
Beginning balance at Mar. 31, 2019 | 391,303 | $ 454 | 887,907 | (485,490) | (11,568) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 29,607 | 29,607 | |||
Share issuances related to stock-based compensation (in shares) | 657 | ||||
Share issuances related to stock-based compensation | 6,325 | $ 6 | 6,319 | ||
Repurchase of common stock (in shares) | (830) | ||||
Repurchase of common stock | (40,026) | $ (8) | (6,934) | (33,084) | |
Net income (loss) | (13,930) | (13,930) | |||
Other comprehensive loss | (1,165) | (1,165) | |||
Ending balance (in shares) at Sep. 30, 2019 | 45,409 | ||||
Ending balance at Sep. 30, 2019 | 372,114 | $ 452 | 916,899 | (532,504) | (12,733) |
Beginning balance (in shares) at Jun. 30, 2019 | 45,077 | ||||
Beginning balance at Jun. 30, 2019 | 359,817 | $ 449 | 896,383 | (525,420) | (11,595) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 14,857 | 14,857 | |||
Share issuances related to stock-based compensation (in shares) | 332 | ||||
Share issuances related to stock-based compensation | 5,662 | $ 3 | 5,659 | ||
Repurchase of common stock (in shares) | |||||
Repurchase of common stock | 0 | ||||
Net income (loss) | (7,084) | (7,084) | |||
Other comprehensive loss | (1,138) | (1,138) | |||
Ending balance (in shares) at Sep. 30, 2019 | 45,409 | ||||
Ending balance at Sep. 30, 2019 | $ 372,114 | $ 452 | $ 916,899 | $ (532,504) | $ (12,733) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (13,930) | $ (7,676) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 6,054 | 6,072 |
Noncash stock-based compensation | 29,607 | 35,754 |
Deferred income taxes | 0 | (273) |
Amortization of deferred commissions cost | 8,730 | 8,916 |
Impairment of operating lease assets | 2,050 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 45,625 | 21,495 |
Operating lease assets and liabilities, net | 42 | |
Other current assets and Other assets | (1,796) | 4,884 |
Deferred commissions cost | (6,962) | (8,866) |
Accounts payable | (425) | (382) |
Accrued liabilities | (1,015) | (13,736) |
Deferred revenue | (12,079) | (3,796) |
Other liabilities | (782) | 138 |
Net cash provided by operating activities | 55,119 | 42,530 |
Cash flows from investing activities | ||
Purchase of short-term investments | (32,800) | (65,519) |
Proceeds from maturity of short-term investments | 65,519 | 66,237 |
Purchase of property and equipment | (1,457) | (3,998) |
Net cash provided by (used in) investing activities | 31,262 | (3,280) |
Cash flows from financing activities | ||
Repurchase of common stock | (40,026) | (38,303) |
Proceeds from stock-based compensation plans | 6,325 | 29,626 |
Net cash used in financing activities | (33,701) | (8,677) |
Effects of exchange rate — changes in cash | (3,047) | (8,176) |
Net increase in cash and cash equivalents | 49,633 | 22,397 |
Cash and cash equivalents at beginning of period | 327,992 | 330,784 |
Cash and cash equivalents at end of period | $ 377,625 | $ 353,181 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Commvault Systems, Inc. and its subsidiaries (“Commvault” or the “Company”) is a provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with data protection solutions supporting all major operating systems, applications, and databases on virtual and physical servers, NAS shares, cloud-based infrastructures, and mobile devices; management through a single console; multiple protection methods including backup and archive, snapshot management, replication, and content indexing for eDiscovery; efficient storage management using deduplication for disk, tape and cloud; integration with the industry's top storage arrays; complete virtual infrastructure management supporting multiple hypervisors; security capabilities to limit access to critical data; policy based data management; and an end-user experience that allows them to protect, find and recover their own data using common tools such as web browsers, Microsoft Outlook and File Explorer. The Company also sells appliances that integrate the Company's software with hardware and address a wide-range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. The Company also provides its customers with a broad range of professional and customer support services. The consolidated financial statements as of September 30, 2019 and for the three and six months ended September 30, 2019 and 2018 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2019 . The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Correction of an Immaterial Error in Previously Issued Financial Statements Subsequent to the issuance of the financial statements for the year ended March 31, 2018 and for the interim periods in fiscal 2019, the Company concluded that the Statement of Operations for fiscal 2018 and the interim periods contained an immaterial error related to the classification of legal fees related to intellectual property as Research and Development expenses and not General and Administrative expenses. These immaterial errors have been corrected for the comparative period shown by reclassifying $858 and $1,555 from Research and Development expense to General and Administrative expense for the three and six months ended September 30, 2018 . This immaterial error did not have any impact on our financial position, net loss or cash flow. Recently Issued Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2016-02, Leases. Under the new guidance, the Company is required to recognize a lease liability and a right-of-use asset for leases. The Company adopted the new guidance on April 1, 2019 using the optional transition method, which allows for the prospective application of the standard, and as a result, the Company did not record an adjustment to retained earnings. In addition, the Company elected the package of practical expedients, for all of its leases, permitted under the transition guidance within the standard, which allowed the Company to carry forward its historical lease classification, to not reassess prior conclusions related to initial direct costs and to not reassess whether any expired or existing contracts are or contain leases. The Company also elected the lessee practical expedient to combine lease and non-lease components for new leases and modified leases. The Company also made an accounting policy election in accordance with the new standard to apply accounting similar to ASC 840 to short-term leases, which are defined as leases that have a term of twelve months or less. The new guidance does not have any impact on the Statement of Operations or Statement of Cash Flows. Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The amendments of this ASU are effective for the Company's fiscal 2021. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the financial statements. There have been no other additional significant changes in the Company’s accounting policies during the six months ended September 30, 2019 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2019 and to the changes disclosed above. Concentration of Credit Risk The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal. Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 37% and 36% of total revenues for the six months ended September 30, 2019 and 2018 , respectively. Arrow accounted for 31% of total accounts receivable as of September 30, 2019 and 38% of total accounts receivable as of March 31, 2019 . Fair Value of Financial Instruments The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2019 and March 31, 2019 : September 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents $ — — — $ — Short-term investments $ — 97,619 — $ 97,619 March 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents $ 102,702 — — $ 102,702 Short-term investments $ — 131,937 — $ 131,937 |
Revenue
Revenue | 6 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services. Historically, the Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year . The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. The Company’s typical performance obligations include the following: Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Software and Products Revenue Software Licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Appliances When control of the appliances passes to the customer; typically upon delivery Within 90 days of delivery Residual approach Customer Support Revenue Software Updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer Support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Professional Services Other Professional Services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education Services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The geographic regions that are tracked are the Americas (United States, Canada, Latin America), EMEA (Europe, Middle East, Africa) and APAC (Australia, New Zealand, Southeast Asia, China). The Company operates in one segment. Three Months Ended September 30, 2019 Americas EMEA APAC Total Software and Products Revenue $ 35,863 $ 21,440 $ 11,292 $ 68,595 Customer Support Revenue 57,864 21,906 10,233 90,003 Professional Services 4,430 2,680 1,874 8,984 Total Revenue $ 98,157 $ 46,026 $ 23,399 $ 167,582 Three Months Ended September 30, 2018 Americas EMEA APAC Total Software and Products Revenue $ 41,376 $ 17,526 $ 10,602 $ 69,504 Customer Support Revenue 59,675 20,443 9,489 89,607 Professional Services 5,489 2,705 1,773 9,967 Total Revenue $ 106,540 $ 40,674 $ 21,864 $ 169,078 Six Months Ended September 30, 2019 Americas EMEA APAC Total Software and Products Revenue $ 67,084 $ 42,815 $ 22,370 $ 132,269 Customer Support Revenue 115,594 43,573 20,318 179,485 Professional Services 9,296 5,362 3,373 18,031 Total Revenue $ 191,974 $ 91,750 $ 46,061 $ 329,785 Six Months Ended September 30, 2018 Americas EMEA APAC Total Software and Products Revenue $ 83,492 $ 39,551 $ 21,511 $ 144,554 Customer Support Revenue 120,101 40,802 19,110 180,013 Professional Services 11,274 5,931 3,483 20,688 Total Revenue $ 214,867 $ 86,284 $ 44,104 $ 345,255 Information about Contract Balances Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. In certain contracts the Company allows customers to pay for term-based, or subscription, software licenses and products over the term of the license. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in Accounts receivable on the consolidated balance sheet. Long term unbilled receivables are included in Other assets. The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows: Accounts Receivable Unbilled Receivable (current) Unbilled Receivable (long-term) Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2019 $ 161,570 $ 15,266 $ 7,216 $ 238,439 $ 99,257 Increase/(decrease), net (48,377 ) (866 ) 727 (11,507 ) (4,846 ) Ending Balance as of September 31, 2019 $ 113,193 $ 14,400 $ 7,943 $ 226,932 $ 94,411 The decrease in accounts receivable is primarily a result of a concentration of customer support renewals in the second half of the prior year, a decrease in software and products revenue relative to the fourth quarter of the prior year and improved linearity in software and products revenue relative to the fourth quarter. The decrease in deferred revenue is primarily the result of a strengthening of the U.S. dollar and a decrease in deferred customer support revenue related to software and products revenue transactions and customer support renewals relative to the fourth quarter of fiscal 2019 . The amount of revenue recognized in fiscal 2020 that was included in the March 31, 2019 balance of deferred revenue was $68,273 and $156,185 for the three and six months ended September 30, 2019 , respectively. The vast majority of this revenue consists of customer support arrangements. The amount of software and products revenue recognized in the three and six months ended September 30, 2019 related to performance obligations from prior periods was not significant. Remaining Performance Obligations In addition to the amounts included in deferred revenue as of September 30, 2019 , $26,543 of revenue may be recognized from remaining performance obligations, of which $3,090 was related to software and products. The Company expects the majority of this software and products revenue to be recognized next quarter. The vast majority of the services revenue is related to other professional services which may be recognized over the next twelve months but is contingent upon a number of factors, including customers’ needs and schedules. |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share The diluted weighted average shares outstanding exclude outstanding stock options, restricted stock units, performance restricted stock units and shares to be purchased under the employee stock purchase plan totaling 4,780 and 1,024 for the three months ended September 30, 2019 and 2018 , respectively, and 4,810 and 5,874 for the six months ended September 30, 2019 and 2018 , because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is subject to claims in legal proceedings arising in the normal course of business. The Company does not believe that it is currently party to any pending legal action that could reasonably be expected to have a material adverse effect on its business or operating results. |
Capitalization
Capitalization | 6 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Capitalization | Capitalization As of September 30, 2019 , $159,974 remained in the Company's current stock repurchase authorization which expires on March 31, 2020. |
Stock Plans
Stock Plans | 6 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development, General and administrative and Restructuring expenses for the three and six months ended September 30, 2019 and 2018 . Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Cost of services revenue $ 698 $ 756 $ 1,388 $ 1,512 Sales and marketing 7,359 9,071 15,005 18,595 Research and development 2,011 2,274 4,004 4,489 General and administrative 4,184 5,345 8,237 9,944 Restructuring 605 304 973 1,214 Stock-based compensation expense $ 14,857 $ 17,750 $ 29,607 $ 35,754 As of September 30, 2019 , there was $72,944 of unrecognized stock-based compensation expense related to non-vested stock option and restricted stock unit awards that is expected to be recognized over a weighted average period of 1.75 years. The Company accounts for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from the Company’s current estimate. Restricted Stock Units Restricted stock unit activity for the six months ended September 30, 2019 is as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2019 1,831 $ 62.58 Awarded 508 48.17 Vested (475 ) 60.66 Forfeited (127 ) 63.86 Non-vested as of September 30, 2019 1,737 $ 58.75 The weighted average fair value of restricted stock units awarded was $43.39 and $48.17 per unit during the three and six months ended September 30, 2019 , and $67.41 and $71.11 per unit during the three and six months ended September 30, 2018 . The weighted average fair value of awards includes the awards with a market condition described below. Performance Based Awards In the six months ended September 30, 2019 , the Company granted 88 performance restricted stock units ("PSU") to certain executives. Vesting of these awards is contingent upon i) the Company meeting certain company-wide revenue and non-GAAP performance goals (performance-based) in fiscal 2020 and ii) the Company's customary service periods. The awards vest over three years and have a maximum potential to vest at 200% ( 176 shares) based on actual fiscal 2020 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSU’s that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table. Awards with a Market Condition In the six months ended September 30, 2019 , the Company granted 88 market performance stock units to certain executives. The vesting of these awards is contingent upon the Company meeting certain total shareholder return ("TSR") levels as compared to the Russell 3000 market index over the next three years . The awards vest in three annual tranches and have a maximum potential to vest at 200% ( 176 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the six months ended September 30, 2019 was $48.26 per unit. The awards are included in the restricted stock unit table. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $2,571 in the six months ended September 30, 2019 compared to an expense of $3,912 in the six months ended September 30, 2018 . In fiscal 2018 the Company determined that it was more likely than not that it will not realize the benefits of its gross deferred tax assets and therefore recorded a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero . The Company’s position remains unchanged as of the period ending September 30, 2019 . The tax expense for the six months ended September 30, 2019 |
Restructuring
Restructuring | 6 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In fiscal 2019, the Company initiated a restructuring plan to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas. During the quarter, the Company incurred total restructuring charges of $12,851 . These restructuring charges relate primarily to severance and related costs associated with headcount reductions and lease abandonment charges associated with three office leases. These charges include $605 of stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan. The activity in the Company’s restructuring accruals for the three and six months ended September 30, 2019 and 2018 is summarized as follows: Three Months Ended September 30, 2019 2018 Balance at June 30 $ 2,218 $ 3,319 Restructuring charges (1) 11,737 494 Payments (3,597 ) (2,050 ) Accrual reversals — — Balance at September 30 $ 10,358 $ 1,763 Six Months Ended September 30, 2019 2018 Balance at March 31 $ 1,089 $ — Restructuring charges (1) 14,880 8,389 Payments (5,611 ) (6,626 ) Accrual reversals — — Balance at September 30 $ 10,358 $ 1,763 (1) Restructuring charges of $11,737 and $14,880 in the tables above do not include restructuring charges for one of the Company's leases in the amount of $1,114 and three in the amount of $2,050 for the three and six months ended September 30, 2019 , respectively. Under the new lease standard (ASC 842) the Company is now required to account for the impairment as charge to the Statement of Operations and a reduction in the carrying amount of the right-of-use asset. As of September 30, 2019 , the outstanding restructuring accruals primarily relate to future severance payments. |
Leases
Leases | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company’s lease liabilities relate primarily to operating leases for its global office infrastructure. These operating leases expire at various dates through fiscal 2026. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company recognizes operating lease costs over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related operating lease cost on a straight-line basis over the lease term. In addition, certain of the Company’s lease agreements include variable lease payments, such as estimated tax and maintenance charges. These variable lease payments are excluded from minimum lease payments and are included in the determination of lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated. As of September 30, 2019 , the Company did not have any finance leases. Net lease cost recognized on our Condensed Consolidated Statement of Operations is summarized as follows: Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 Operating Lease Cost $ 2,302 $ 4,843 Short-term Lease Cost 118 237 Variable Lease Cost 507 749 Net Lease Cost $ 2,927 $ 5,829 As of September 30, 2019 , the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows: Remainder of FY 2020 $ 3,856 FY 2021 7,241 FY 2022 4,227 FY 2023 1,964 FY 2024 1,362 Thereafter 1,714 Total Minimum Lease Payments $ 20,364 Less: Imputed Interest (2,046 ) Present value of operating lease liabilities $ 18,318 Less: Current Portion of operating lease liabilities 7,832 Long-term operating lease liabilities $ 10,486 During the three and six months ended September 30, 2019 , additions of operating lease assets were $3,705 and $5,305 , respectively. As of September 30, 2019 the minimum lease commitment amount for operating leases signed but not yet commenced, was immaterial. As of September 30, 2019 , the weighted-average remaining operating lease term was 3.35 years and the weighted-average discount rate was 4% for operating leases recognized in the Condensed Consolidated Balance Sheet. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On September 3, 2019, a wholly owned subsidiary of the Company, entered into a definitive purchase agreement to acquire substantially all the assets of Hedvig, Inc., a California based software-defined storage (SDS) innovator for total consideration of approximately $225 million , subject to customary transaction adjustments, which includes the purchase price and ongoing employee retention in the form of cash and stock-based compensation. The transaction closed on October 1, 2019. As the transaction occurred subsequent to period-end, the Company is still evaluating the purchase price allocation of the transaction but expects the primary assets acquired to be intangible assets and goodwill. Acquired tangible assets and assumed liabilities are expected to be immaterial. The allocation is expected to be finalized during the third quarter of fiscal 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements as of September 30, 2019 and for the three and six months ended September 30, 2019 and 2018 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2019 . The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. |
Use of Estimates | The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2016-02, Leases. Under the new guidance, the Company is required to recognize a lease liability and a right-of-use asset for leases. The Company adopted the new guidance on April 1, 2019 using the optional transition method, which allows for the prospective application of the standard, and as a result, the Company did not record an adjustment to retained earnings. In addition, the Company elected the package of practical expedients, for all of its leases, permitted under the transition guidance within the standard, which allowed the Company to carry forward its historical lease classification, to not reassess prior conclusions related to initial direct costs and to not reassess whether any expired or existing contracts are or contain leases. The Company also elected the lessee practical expedient to combine lease and non-lease components for new leases and modified leases. The Company also made an accounting policy election in accordance with the new standard to apply accounting similar to ASC 840 to short-term leases, which are defined as leases that have a term of twelve months or less. The new guidance does not have any impact on the Statement of Operations or Statement of Cash Flows. Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The amendments of this ASU are effective for the Company's fiscal 2021. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on the financial statements. There have been no other additional significant changes in the Company’s accounting policies during the six months ended September 30, 2019 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2019 and to the changes disclosed above. |
Concentration of Credit Risk | The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal. |
Fair Value of Financial Instruments | The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. |
Revenue | The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services. Historically, the Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year . The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. |
Leases | The Company’s lease liabilities relate primarily to operating leases for its global office infrastructure. These operating leases expire at various dates through fiscal 2026. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company recognizes operating lease costs over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related operating lease cost on a straight-line basis over the lease term. In addition, certain of the Company’s lease agreements include variable lease payments, such as estimated tax and maintenance charges. These variable lease payments are excluded from minimum lease payments and are included in the determination of lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Financial Assets Measured at Fair Value | The following table summarizes the composition of the Company’s financial assets measured at fair value at September 30, 2019 and March 31, 2019 : September 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents $ — — — $ — Short-term investments $ — 97,619 — $ 97,619 March 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents $ 102,702 — — $ 102,702 Short-term investments $ — 131,937 — $ 131,937 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The Company’s typical performance obligations include the following: Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Software and Products Revenue Software Licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Appliances When control of the appliances passes to the customer; typically upon delivery Within 90 days of delivery Residual approach Customer Support Revenue Software Updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer Support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Professional Services Other Professional Services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education Services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations |
Disaggregation of Revenue | Three Months Ended September 30, 2019 Americas EMEA APAC Total Software and Products Revenue $ 35,863 $ 21,440 $ 11,292 $ 68,595 Customer Support Revenue 57,864 21,906 10,233 90,003 Professional Services 4,430 2,680 1,874 8,984 Total Revenue $ 98,157 $ 46,026 $ 23,399 $ 167,582 Three Months Ended September 30, 2018 Americas EMEA APAC Total Software and Products Revenue $ 41,376 $ 17,526 $ 10,602 $ 69,504 Customer Support Revenue 59,675 20,443 9,489 89,607 Professional Services 5,489 2,705 1,773 9,967 Total Revenue $ 106,540 $ 40,674 $ 21,864 $ 169,078 Six Months Ended September 30, 2019 Americas EMEA APAC Total Software and Products Revenue $ 67,084 $ 42,815 $ 22,370 $ 132,269 Customer Support Revenue 115,594 43,573 20,318 179,485 Professional Services 9,296 5,362 3,373 18,031 Total Revenue $ 191,974 $ 91,750 $ 46,061 $ 329,785 Six Months Ended September 30, 2018 Americas EMEA APAC Total Software and Products Revenue $ 83,492 $ 39,551 $ 21,511 $ 144,554 Customer Support Revenue 120,101 40,802 19,110 180,013 Professional Services 11,274 5,931 3,483 20,688 Total Revenue $ 214,867 $ 86,284 $ 44,104 $ 345,255 |
Contract with Customer, Asset and Liability | The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows: Accounts Receivable Unbilled Receivable (current) Unbilled Receivable (long-term) Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2019 $ 161,570 $ 15,266 $ 7,216 $ 238,439 $ 99,257 Increase/(decrease), net (48,377 ) (866 ) 727 (11,507 ) (4,846 ) Ending Balance as of September 31, 2019 $ 113,193 $ 14,400 $ 7,943 $ 226,932 $ 94,411 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development, General and administrative and Restructuring expenses for the three and six months ended September 30, 2019 and 2018 . Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Cost of services revenue $ 698 $ 756 $ 1,388 $ 1,512 Sales and marketing 7,359 9,071 15,005 18,595 Research and development 2,011 2,274 4,004 4,489 General and administrative 4,184 5,345 8,237 9,944 Restructuring 605 304 973 1,214 Stock-based compensation expense $ 14,857 $ 17,750 $ 29,607 $ 35,754 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the six months ended September 30, 2019 is as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2019 1,831 $ 62.58 Awarded 508 48.17 Vested (475 ) 60.66 Forfeited (127 ) 63.86 Non-vested as of September 30, 2019 1,737 $ 58.75 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The activity in the Company’s restructuring accruals for the three and six months ended September 30, 2019 and 2018 is summarized as follows: Three Months Ended September 30, 2019 2018 Balance at June 30 $ 2,218 $ 3,319 Restructuring charges (1) 11,737 494 Payments (3,597 ) (2,050 ) Accrual reversals — — Balance at September 30 $ 10,358 $ 1,763 Six Months Ended September 30, 2019 2018 Balance at March 31 $ 1,089 $ — Restructuring charges (1) 14,880 8,389 Payments (5,611 ) (6,626 ) Accrual reversals — — Balance at September 30 $ 10,358 $ 1,763 (1) Restructuring charges of $11,737 and $14,880 in the tables above do not include restructuring charges for one of the Company's leases in the amount of $1,114 and three in the amount of $2,050 for the three and six months ended September 30, 2019 , respectively. Under the new lease standard (ASC 842) the Company is now required to account for the impairment as charge to the Statement of Operations and a reduction in the carrying amount of the right-of-use asset. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Net Lease Cost Recognized on Condensed Consolidated Statement of Operations | Net lease cost recognized on our Condensed Consolidated Statement of Operations is summarized as follows: Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 Operating Lease Cost $ 2,302 $ 4,843 Short-term Lease Cost 118 237 Variable Lease Cost 507 749 Net Lease Cost $ 2,927 $ 5,829 |
Maturities of Lease Liabilities | As of September 30, 2019 , the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows: Remainder of FY 2020 $ 3,856 FY 2021 7,241 FY 2022 4,227 FY 2023 1,964 FY 2024 1,362 Thereafter 1,714 Total Minimum Lease Payments $ 20,364 Less: Imputed Interest (2,046 ) Present value of operating lease liabilities $ 18,318 Less: Current Portion of operating lease liabilities 7,832 Long-term operating lease liabilities $ 10,486 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Correction of an Immaterial Error in Previously Issued Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Research and development | $ 23,227 | $ 23,649 | $ 46,807 | $ 47,746 |
General and administrative | $ 24,753 | 24,862 | $ 47,260 | 48,101 |
Immaterial error related to classification of legal fees related to intellectual property | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Research and development | (858) | (1,555) | ||
General and administrative | $ 858 | $ 1,555 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 37.00% | 36.00% | |
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 38.00% | 31.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 102,702 |
Short-term investments | 97,619 | 131,937 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 102,702 |
Short-term investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 97,619 | 131,937 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | $ 0 | $ 0 |
Revenue - Additional Informati
Revenue - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)revenue_sourcesegment | |
Revenue from Contract with Customer [Abstract] | ||
Sources of primary revenue | revenue_source | 2 | |
Customer support agreement term | 1 year | |
Number of operating segments | segment | 1 | |
Revenue recognized in period, included in opening deferred revenue balance | $ 68,273 | $ 156,185 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue expected to be recognized from remaining performance obligations | 26,543 | 26,543 |
Software and Products Revenue | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue expected to be recognized from remaining performance obligations | $ 3,090 | $ 3,090 |
Revenue - Performance Obligati
Revenue - Performance Obligations (Details) | 6 Months Ended |
Sep. 30, 2019 | |
Software, licenses | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Software, appliances | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Professional Services, other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Professional Services, education services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Revenue - Disaggregation of Re
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 167,582 | $ 169,078 | $ 329,785 | $ 345,255 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 98,157 | 106,540 | 191,974 | 214,867 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 46,026 | 40,674 | 91,750 | 86,284 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 23,399 | 21,864 | 46,061 | 44,104 |
Software and Products Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 68,595 | 69,504 | 132,269 | 144,554 |
Software and Products Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 35,863 | 41,376 | 67,084 | 83,492 |
Software and Products Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 21,440 | 17,526 | 42,815 | 39,551 |
Software and Products Revenue | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,292 | 10,602 | 22,370 | 21,511 |
Customer Support Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 90,003 | 89,607 | 179,485 | 180,013 |
Customer Support Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 57,864 | 59,675 | 115,594 | 120,101 |
Customer Support Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 21,906 | 20,443 | 43,573 | 40,802 |
Customer Support Revenue | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 10,233 | 9,489 | 20,318 | 19,110 |
Professional Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 8,984 | 9,967 | 18,031 | 20,688 |
Professional Services | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 4,430 | 5,489 | 9,296 | 11,274 |
Professional Services | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 2,680 | 2,705 | 5,362 | 5,931 |
Professional Services | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 1,874 | $ 1,773 | $ 3,373 | $ 3,483 |
Revenue - Opening and Closing
Revenue - Opening and Closing Balances of Accounts Receivable, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Accounts Receivable [Roll Forward] | |
Opening Balance as of March 31, 2019 | $ 161,570 |
Increase/(decrease), net | (48,377) |
Ending Balance as of September 31, 2019 | 113,193 |
Unbilled Receivable (current) [Roll Forward] | |
Opening Balance as of March 31, 2019 | 15,266 |
Increase/(decrease), net | (866) |
Ending Balance as of September 31, 2019 | 14,400 |
Unbilled Receivable (long-term) [Roll Forward] | |
Opening Balance as of March 31, 2019 | 7,216 |
Increase/(decrease), net | 727 |
Ending Balance as of September 31, 2019 | 7,943 |
Deferred Revenue (current) [Roll Forward] | |
Opening Balance as of March 31, 2019 | 238,439 |
Increase/(decrease), net | (11,507) |
Ending Balance as of September 31, 2019 | 226,932 |
Deferred Revenue (long-term) [Roll Forward] | |
Opening Balance as of March 31, 2019 | 99,257 |
Increase/(decrease), net | (4,846) |
Ending Balance as of September 31, 2019 | $ 94,411 |
Net Income per Common Share -
Net Income per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation (in shares) | 4,780 | 1,024 | 4,810 | 5,874 |
Capitalization - Additional In
Capitalization - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Common stock repurchase program | |
Class of Stock [Line Items] | |
Remaining amount available under share repurchase program | $ 159,974 |
Stock Plans - Stock-Based Comp
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 14,857 | $ 17,750 | $ 29,607 | $ 35,754 |
Cost of services revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 698 | 756 | 1,388 | 1,512 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 7,359 | 9,071 | 15,005 | 18,595 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,011 | 2,274 | 4,004 | 4,489 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 4,184 | 5,345 | 8,237 | 9,944 |
Restructuring | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 605 | $ 304 | $ 973 | $ 1,214 |
Stock Plans - Additional Infor
Stock Plans - Additional Information (Details) - Stock options and restricted stock units $ in Thousands | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 72,944 |
Weighted average period awards are expected to be recognized | 1 year 9 months |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Unit Activity (Details) - Restricted stock units - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Number of Awards | ||||
Non-vested (in shares) as of March 31, 2019 | 1,831 | |||
Awarded (in shares) | 508 | |||
Vested (in shares) | (475) | |||
Forfeited (in shares) | (127) | |||
Non-vested (in shares) as of June 30, 2019 | 1,737 | 1,737 | ||
Weighted Average Grant Date Fair Value | ||||
Non-vested (in dollars per share) as of March 31, 2019 | $ 62.58 | |||
Awarded (in dollars per share) | $ 43.39 | $ 67.41 | 48.17 | $ 71.11 |
Vested (in dollars per share) | 60.66 | |||
Forfeited (in dollars per share) | 63.86 | |||
Non-vested (in dollars per share) as of June 30, 2019 | $ 58.75 | $ 58.75 |
Stock Plans - Restricted Sto_2
Stock Plans - Restricted Stock Units Additional Information (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value, units awarded (in dollars per share) | $ 43.39 | $ 67.41 | $ 48.17 | $ 71.11 |
Stock Plans - Performance-base
Stock Plans - Performance-based and Market-based Awards (Details) shares in Thousands | 6 Months Ended |
Sep. 30, 2019tranche$ / sharesshares | |
PSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded (in shares) | 88 |
Service period | 3 years |
Maximum potential to vest (as a percentage) | 200.00% |
Maximum potential to vest (in shares) | 176 |
Market performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded (in shares) | 88 |
Service period | 3 years |
Maximum potential to vest (as a percentage) | 200.00% |
Maximum potential to vest (in shares) | 176 |
Number of annual tranches | tranche | 3 |
Weighted average fair value, units awarded (in dollars per share) | $ / shares | $ 48.26 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 476 | $ 1,263 | $ 2,571 | $ 3,912 |
Deferred tax assets | $ 0 | $ 0 |
Restructuring - Additional Inf
Restructuring - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | $ 12,851 | $ 494 | $ 16,930 | $ 8,389 |
Operating lease impairment loss, number of leases | contract | 1 | 3 | ||
Stock-Based Compensation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | $ 605 |
Restructuring - Activity in Re
Restructuring - Activity in Restructuring Accruals (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | ||||
Operating lease impairment loss, number of leases | contract | 1 | 3 | ||
Lease impairment loss, excluded from restructuring charges | $ 1,114 | $ 2,050 | ||
Severance & payroll related charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 2,218 | $ 3,319 | 1,089 | $ 0 |
Restructuring charges | 11,737 | 494 | 14,880 | 8,389 |
Payments | (3,597) | (2,050) | (5,611) | (6,626) |
Accrual reversals | 0 | 0 | 0 | 0 |
Balance at end of period | $ 10,358 | $ 1,763 | $ 10,358 | $ 1,763 |
Leases - Net Lease Costs Recog
Leases - Net Lease Costs Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease Cost | $ 2,302 | $ 4,843 |
Short-term Lease Cost | 118 | 237 |
Variable Lease Cost | 507 | 749 |
Net Lease Cost | $ 2,927 | $ 5,829 |
Leases - Maturities of Lease L
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of FY 2020 | $ 3,856 |
FY 2021 | 7,241 |
FY 2022 | 4,227 |
FY 2023 | 1,964 |
FY 2024 | 1,362 |
Thereafter | 1,714 |
Total Minimum Lease Payments | 20,364 |
Less: Imputed Interest | (2,046) |
Present value of operating lease liabilities | 18,318 |
Current portion of operating lease liabilities | 7,832 |
Long-term operating lease liabilities | $ 10,486 |
Leases - Additional Informatio
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Additions of operating lease assets | $ 3,705 | $ 5,305 |
Weighted-average remaining operating lease term | 3 years 4 months 6 days | 3 years 4 months 6 days |
Weighted-average discount rate, operating leases | 4.00% | 4.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Oct. 01, 2019USD ($) |
Hedvig, Inc. | Subsequent Event | |
Subsequent Event [Line Items] | |
Total consideration | $ 225 |