Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2020 | Jan. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
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 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CVLT | |
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 | 46,997,616 | |
Entity Registrant Name | COMMVAULT SYSTEMS INC | |
Entity Central Index Key | 0001169561 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 377,569 | $ 288,082 |
Restricted cash | 0 | 8,000 |
Short-term investments | 10,845 | 43,645 |
Trade accounts receivable, net | 190,651 | 146,990 |
Other current assets | 27,570 | 26,969 |
Total current assets | 606,635 | 513,686 |
Property and equipment, net | 113,079 | 114,519 |
Operating lease assets | 23,709 | 15,009 |
Deferred commissions cost | 35,306 | 31,394 |
Intangible assets, net | 0 | 46,350 |
Goodwill | 112,435 | 112,435 |
Other assets | 14,415 | 11,683 |
Total assets | 905,579 | 845,076 |
Current liabilities: | ||
Accounts payable | 622 | 307 |
Accrued liabilities | 102,924 | 87,051 |
Current portion of operating lease liabilities | 8,346 | 7,699 |
Deferred revenue | 247,544 | 233,497 |
Total current liabilities | 359,436 | 328,554 |
Deferred revenue, less current portion | 108,280 | 92,723 |
Deferred tax liabilities, net | 807 | 849 |
Long-term operating lease liabilities | 17,561 | 8,808 |
Other liabilities | 5,424 | 2,238 |
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, 46,835 shares and 46,011 shares issued and outstanding at December 31, 2020 and March 31, 2020, respectively | 466 | 458 |
Additional paid-in capital | 1,041,073 | 978,659 |
Accumulated deficit | (618,068) | (553,790) |
Accumulated other comprehensive loss | (9,400) | (13,423) |
Total stockholders’ equity | 414,071 | 411,904 |
Total liabilities and stockholders’ equity | $ 905,579 | $ 845,076 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Mar. 31, 2020 |
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) | 46,835,000 | 46,011,000 |
Common stock, shares outstanding (in shares) | 46,835,000 | 46,011,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||||
Total revenues | $ 187,992 | $ 176,351 | $ 532,131 | $ 506,136 |
Cost of revenues: | ||||
Total cost of revenues | 28,412 | 30,523 | 79,762 | 90,484 |
Gross margin | 159,580 | 145,828 | 452,369 | 415,652 |
Operating expenses: | ||||
Sales and marketing | 84,542 | 84,563 | 245,287 | 252,908 |
Research and development | 35,727 | 30,503 | 97,824 | 77,310 |
General and administrative | 22,702 | 23,864 | 69,009 | 71,124 |
Restructuring | 11,618 | 2,021 | 19,709 | 18,951 |
Impairment of intangible asset | 0 | 0 | 40,700 | 0 |
Depreciation and amortization | 2,323 | 5,356 | 12,441 | 10,681 |
Total operating expenses | 156,912 | 146,307 | 484,970 | 430,974 |
Income (loss) from operations | 2,668 | (479) | (32,601) | (15,322) |
Interest income | 167 | 786 | 759 | 4,270 |
Income (loss) before income taxes | 2,835 | 307 | (31,842) | (11,052) |
Income tax expense | 1,162 | 957 | 5,373 | 3,528 |
Net income (loss) | $ 1,673 | $ (650) | $ (37,215) | $ (14,580) |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.04 | $ (0.01) | $ (0.80) | $ (0.32) |
Diluted (in dollars per share) | $ 0.03 | $ (0.01) | $ (0.80) | $ (0.32) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 47,013 | 46,028 | 46,575 | 45,586 |
Diluted (in shares) | 48,013 | 46,028 | 46,575 | 45,586 |
Software and products | ||||
Revenues: | ||||
Total revenues | $ 88,625 | $ 76,631 | $ 237,488 | $ 208,900 |
Cost of revenues: | ||||
Total cost of revenues | 6,916 | 8,077 | 20,666 | 22,938 |
Services | ||||
Revenues: | ||||
Total revenues | 99,367 | 99,720 | 294,643 | 297,236 |
Cost of revenues: | ||||
Total cost of revenues | $ 21,496 | $ 22,446 | $ 59,096 | $ 67,546 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,673 | $ (650) | $ (37,215) | $ (14,580) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 2,285 | 960 | 4,023 | (205) |
Comprehensive income (loss) | $ 3,958 | $ 310 | $ (33,192) | $ (14,785) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid – In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2019 | 45,582,000 | ||||||
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 | 48,581 | 48,581 | |||||
Share issuances related to business combination | 1,616 | 1,616 | |||||
Share issuances related to stock-based compensation (in shares) | 1,745,000 | ||||||
Share issuances related to stock-based compensation | 30,944 | $ 17 | 30,927 | ||||
Repurchase of common stock (in shares) | (830,000) | ||||||
Repurchase of common stock | (40,026) | $ (8) | (6,934) | (33,084) | |||
Net income (loss) | (14,580) | (14,580) | |||||
Other comprehensive income (loss) | (205) | (205) | |||||
Ending balance (in shares) at Dec. 31, 2019 | 46,497,000 | ||||||
Ending balance at Dec. 31, 2019 | 417,633 | $ 463 | 962,097 | (533,154) | (11,773) | ||
Beginning balance (in shares) at Mar. 31, 2019 | 45,582,000 | ||||||
Beginning balance at Mar. 31, 2019 | $ 391,303 | $ 454 | 887,907 | (485,490) | (11,568) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 46,011,000 | ||||||
Ending balance at Mar. 31, 2020 | $ 411,904 | $ (84) | $ 458 | 978,659 | (553,790) | $ (84) | (13,423) |
Beginning balance (in shares) at Sep. 30, 2019 | 45,409,000 | ||||||
Beginning balance at Sep. 30, 2019 | 372,114 | $ 452 | 916,899 | (532,504) | (12,733) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 18,974 | 18,974 | |||||
Share issuances related to business combination | 1,616 | 1,616 | |||||
Share issuances related to stock-based compensation (in shares) | 1,088,000 | ||||||
Share issuances related to stock-based compensation | 24,619 | $ 11 | 24,608 | ||||
Net income (loss) | (650) | (650) | |||||
Other comprehensive income (loss) | 960 | 960 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 46,497,000 | ||||||
Ending balance at Dec. 31, 2019 | 417,633 | $ 463 | 962,097 | (533,154) | (11,773) | ||
Beginning balance (in shares) at Mar. 31, 2020 | 46,011,000 | ||||||
Beginning balance at Mar. 31, 2020 | $ 411,904 | (84) | $ 458 | 978,659 | (553,790) | (84) | (13,423) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of common stock (in shares) | 0 | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 46,685,000 | ||||||
Ending balance at Sep. 30, 2020 | $ 419,476 | $ 464 | 1,023,459 | (592,762) | (11,685) | ||
Beginning balance (in shares) at Mar. 31, 2020 | 46,011,000 | ||||||
Beginning balance at Mar. 31, 2020 | 411,904 | $ (84) | $ 458 | 978,659 | (553,790) | $ (84) | (13,423) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 61,572 | 61,572 | |||||
Share issuances related to stock-based compensation (in shares) | 1,525,000 | ||||||
Share issuances related to stock-based compensation | 7,003 | $ 15 | 6,988 | ||||
Repurchase of common stock (in shares) | (701,000) | ||||||
Repurchase of common stock | (33,132) | $ (7) | (6,146) | (26,979) | |||
Net income (loss) | (37,215) | (37,215) | |||||
Other comprehensive income (loss) | 4,023 | 4,023 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 46,835,000 | ||||||
Ending balance at Dec. 31, 2020 | 414,071 | $ 466 | 1,041,073 | (618,068) | (9,400) | ||
Beginning balance (in shares) at Sep. 30, 2020 | 46,685,000 | ||||||
Beginning balance at Sep. 30, 2020 | 419,476 | $ 464 | 1,023,459 | (592,762) | (11,685) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 22,037 | 22,037 | |||||
Share issuances related to stock-based compensation (in shares) | 851,000 | ||||||
Share issuances related to stock-based compensation | $ 1,732 | $ 9 | 1,723 | ||||
Repurchase of common stock (in shares) | (700,694,000) | (701,000) | |||||
Repurchase of common stock | $ (33,132) | $ (7) | (6,146) | (26,979) | |||
Net income (loss) | 1,673 | 1,673 | |||||
Other comprehensive income (loss) | 2,285 | 2,285 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 46,835,000 | ||||||
Ending balance at Dec. 31, 2020 | $ 414,071 | $ 466 | $ 1,041,073 | $ (618,068) | $ (9,400) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (37,215) | $ (14,580) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 13,379 | 11,618 |
Noncash stock-based compensation | 61,572 | 48,581 |
Amortization of deferred commissions cost | 13,747 | 13,150 |
Impairment of operating lease assets | 1,304 | 2,195 |
Impairment of intangible asset | 40,700 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (38,970) | 12,735 |
Operating lease assets and liabilities, net | (719) | (512) |
Other current assets and Other assets | 6,955 | 5,586 |
Deferred commissions cost | (15,946) | (11,352) |
Accounts payable | 273 | (1,726) |
Accrued liabilities | 484 | (2,018) |
Deferred revenue | 10,719 | (6,262) |
Other liabilities | 2,964 | (1,407) |
Net cash provided by operating activities | 59,247 | 56,008 |
Cash flows from investing activities | ||
Purchase of short-term investments | 0 | (32,800) |
Proceeds from maturity of short-term investments | 32,800 | 98,150 |
Purchase of property and equipment | (5,994) | (1,911) |
Business combination, net of cash acquired | 0 | (157,495) |
Net cash provided by (used in) investing activities | 26,806 | (94,056) |
Cash flows from financing activities | ||
Repurchase of common stock | (33,132) | (40,026) |
Proceeds from stock-based compensation plans | 7,003 | 30,944 |
Net cash used in financing activities | (26,129) | (9,082) |
Effects of exchange rate — changes in cash | 21,563 | (837) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 81,487 | (47,967) |
Cash, cash equivalents and restricted cash at beginning of period | 296,082 | 327,992 |
Cash, cash equivalents and restricted cash at end of period | $ 377,569 | $ 280,025 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Commvault Systems, Inc. and its subsidiaries ("Commvault," "we," "us," or "our") is a provider of data protection and information management software applications and products. We develop, market and sell a suite of software applications and services, globally, that provides our customers with data protection solutions. We also provide our customers with a broad range of professional and customer support services. The consolidated financial statements of Commvault as of December 31, 2020 and for the three and nine months ended December 31, 2020 and 2019 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 our Annual Report on Form 10-K for fiscal 2020. 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 our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amount of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our 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, and goodwill and purchased intangible assets. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recently Adopted Accounting Standards Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) Accounting Standards Update ("ASU") No. 2016-13 (Topic 326), Financial Instruments-Credit Losses 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. We adopted this new standard as of April 1, 2020, using the modified retrospective method recognized as of the date of initial application. The adoption of this new standard resulted in an $84 thousand cumulative effect on our unaudited consolidated financial statements related to an adjustment to our allowance for doubtful accounts. Under the new standard, we assess credit losses on accounts receivable by taking into consideration past collection experience, credit quality of the customer, age of the receivable balance, current economic conditions, and forecasts that affect the collectability of the reported amount. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) ASU No. 2019-12 (Topic 740), Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for us beginning April 1, 2021, with early adoption permitted. We are currently evaluating the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems. Concentration of Credit Risk We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Credit losses relating to these customers have historically been minimal. Sales through our distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 36% and 37% of total revenues for the nine months ended December 31, 2020 and 2019, respectively. Arrow accounted for approximately 33% and 31% of total accounts receivable as of December 31, 2020 and March 31, 2020, respectively. Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short-term maturity of these instruments. Our short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. We account for our short-term investments as held to maturity. The following table summarizes the composition of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and March 31, 2020: December 31, 2020 Level 1 Level 2 Level 3 Total Short-term investments $ — 10,999 — $ 10,999 March 31, 2020 Level 1 Level 2 Level 3 Total Short-term investments $ — 44,484 — $ 44,484 |
Revenue
Revenue | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We derive revenues from two primary sources: software and products, and services. Software and products revenue includes our software and integrated appliances that combine our software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services, customer education and Commvault software-as-a-service, which is branded as Metallic. We sell both perpetual and term-based licenses of our software. We refer to our term-based software licenses as subscription arrangements. We do not customize our 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. We have concluded that our software licenses (both perpetual and subscription) are functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue for both perpetual and subscription licenses 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. We do not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the new subscription period. We also sell appliances that integrate our 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. Revenue related to appliances is recognized when control of the appliances passes to the customer; typically upon delivery. 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. Commvault 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. Our other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by our instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. In fiscal 2020 Commvault launched Metallic, which is a Commvault software-as-a-service offering. Revenue from Metallic is recognized ratably as services revenue. Most of our contracts with customers contain multiple performance obligations. For these contracts, we account 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. Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is 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 Other Services Revenue 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 Software-as-a-service (Metallic) Ratably over the course of the contract (over time) Annual or monthly payments Observable in transactions without multiple performance obligations Disaggregation of Revenue We disaggregate 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 APJ (Australia, New Zealand, Southeast Asia, China). We operate in one segment. Three Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 43,636 $ 33,374 $ 11,615 $ 88,625 Customer Support Revenue 53,488 25,808 10,386 89,682 Other Services Revenue 5,031 3,332 1,322 9,685 Total Revenue $ 102,155 $ 62,514 $ 23,323 $ 187,992 Three Months Ended December 31, 2019 Americas EMEA APJ Total Software and Products Revenue $ 40,291 $ 29,107 $ 7,233 $ 76,631 Customer Support Revenue 57,856 22,237 10,438 90,531 Other Services Revenue 4,883 2,673 1,633 9,189 Total Revenue $ 103,030 $ 54,017 $ 19,304 $ 176,351 Nine Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 133,522 $ 74,232 $ 29,734 $ 237,488 Customer Support Revenue 162,903 74,029 30,840 267,772 Other Services Revenue 13,938 8,971 3,962 26,871 Total Revenue $ 310,363 $ 157,232 $ 64,536 $ 532,131 Nine Months Ended December 31, 2019 Americas EMEA APJ Total Software and Products Revenue $ 107,375 $ 71,922 $ 29,603 $ 208,900 Customer Support Revenue 173,450 65,810 30,756 270,016 Other Services Revenue 14,179 8,035 5,006 27,220 Total Revenue $ 295,004 $ 145,767 $ 65,365 $ 506,136 Information about Contract Balances Amounts collected in advance of services being provided are accounted for as Deferred revenue. Nearly all of our Deferred revenue balance is related to services revenue, primarily customer support contracts. In some arrangements we allow customers to pay for term-based software licenses and products over the term of the software 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 Sheets. Long-term unbilled receivables are included in Other assets. The opening and closing balances of our Accounts receivable, Unbilled receivables, and Deferred revenues are as follows: Accounts Receivable Unbilled Receivable Unbilled Receivable Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2020 $ 129,856 $ 17,134 $ 7,857 $ 233,497 $ 92,723 Increase, net 39,467 4,194 1,952 14,047 15,557 Ending Balance as of December 31, 2020 $ 169,323 $ 21,328 $ 9,809 $ 247,544 $ 108,280 The increase in Accounts receivable (inclusive of Unbilled receivables) is a result of an increase in software and products revenue relative to the fourth quarter of the prior year. The increase in Deferred revenue is primarily the result of an increase in deferred customer support revenue related to software and products revenue transactions and customer support renewals during the third quarter of fiscal 2021. Deferred revenue also increased as a result of the weakening US dollar. The amount of revenue recognized in the period that was included in the March 31, 2020 balance of deferred revenue was $57,062 and $212,790 for the three and nine months ended December 31, 2020. The vast majority of this revenue consists of customer support arrangements. The amount of software and products revenue recognized in the three and nine months ended December 31, 2020 related to performance obligations from prior periods was not significant. Remaining Performance Obligations In addition to the amounts included in deferred revenue as of December 31, 2020, $48,227 of revenue may be recognized from remaining performance obligations, of which approximately $11,000 was related to software and products. We expect the majority of this software and products revenue to be recognized during the three months ended March 31, 2021. 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. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill There were no additions, impairments or any other changes to the carrying amount of goodwill during the three and nine months ended December 31, 2020. Intangible assets, net Intangible assets subject to amortization as of December 31, 2020 are as follows: Gross Carrying Amount Accumulated Amortization Impairment Charge Net Carrying Value Developed technology $ 49,000 $ (9,800) $ (39,200) $ — Customer relationships 3,000 (1,500) (1,500) — Total intangible assets, net $ 52,000 $ (11,300) $ (40,700) $ — Amortization expense from acquired intangible assets was $5,650 for the nine months ended December 31, 2020 and $2,825 for the three and nine months ended December 31, 2019. Our intangible assets (developed technology and customer relationships) were acquired in connection with the Hedvig, Inc. ("Hedvig") transaction. The most material of these assets was the developed technology. The value of this asset was attributable to forecasted incremental revenues directly attributable to this technology. While we have successfully integrated this technology into our existing HyperScale technology, we have not met our forecasts for standalone sales of this acquired technology. During the second quarter of fiscal year 2021 we identified an indicator of impairment and concluded that the carrying values of the developed technology and customer relationships acquired in connection with the Hedvig transaction were not recoverable on an undiscounted basis. As a result, we remeasured the fair value of these assets and concluded their value was de minimis. We recorded a $40,700 impairment charge in the accompanying Consolidated Statements of Operations for the three months ended September 30, 2020. These non-recurring fair value measurements were categorized as Level 3, as significant unobservable inputs were used in the valuation analysis. Key assumptions used in the valuation include forecasts of revenue and expenses over an extended period, the useful life of the asset, tax rates, and estimated costs of debt and equity capital to discount the projected cash flows. Certain of these assumptions involve significant judgment and are based on management’s estimate of current and forecasted market conditions. |
Net Income per Common Share
Net Income per Common Share | 9 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Net income (loss) $ 1,673 $ (650) $ (37,215) $ (14,580) Basic net income (loss) per common share: Basic weighted average shares outstanding 47,013 46,028 46,575 45,586 Basic net income (loss) per common share $ 0.04 $ (0.01) $ (0.80) $ (0.32) Diluted net loss per common share: Basic weighted average shares outstanding 47,013 46,028 46,575 45,586 Dilutive effect of stock options and restricted stock units 1,000 — — — Diluted weighted average shares outstanding 48,013 46,028 46,575 45,586 Diluted net income (loss) per common share $ 0.03 $ (0.01) $ (0.80) $ (0.32) 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 1,049 and 5,459 for the three months ended December 31, 2020 and 2019, respectively, and 5,160 and 4,952 for the nine months ended December 31, 2020 and 2019 because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we are subject to claims in legal proceedings arising in the normal course of business. We do not believe that we are currently party to any pending legal action that could reasonably be expected to have a material adverse effect on our business or operating results. |
Capitalization
Capitalization | 9 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capitalization | Capitalization During the three months ended December 31, 2020, we repurchased $33.1 million of common stock (700,694 shares). There were no repurchases of common stock during the first half of fiscal year 2021. As of December 31, 2020, $166,868 remained in our current stock repurchase authorization which expires on March 31, 2022. Subsequent event |
Stock Plans
Stock Plans | 9 Months Ended |
Dec. 31, 2020 | |
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 expenses and Restructuring expenses for the three and nine months ended December 31, 2020 and 2019. Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Cost of services revenue $ 945 $ 635 $ 2,351 $ 2,023 Sales and marketing 9,714 9,128 25,906 24,133 Research and development 6,203 5,222 17,722 9,226 General and administrative 4,021 3,280 13,735 11,517 Restructuring 1,154 709 1,858 1,682 Stock-based compensation expense $ 22,037 $ 18,974 $ 61,572 $ 48,581 As of December 31, 2020, there was $137,420 of unrecognized stock-based compensation expense related to restricted stock unit awards that is expected to be recognized over a weighted-average period of 2.05 years. We account for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from our current estimate. Stock option activity was not significant in the nine months ended December 31, 2020. Restricted Stock Units Restricted stock unit activity for the nine months ended December 31, 2020 is as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2020 3,237 $ 50.47 Awarded 2,005 41.01 Vested (1,314) 51.17 Forfeited (230) 51.37 Non-vested as of December 31, 2020 3,698 $ 45.09 The weighted-average fair value of restricted stock units awarded was $43.70 and $41.01 per unit during the three and nine months ended December 31, 2020, and $46.21 and $46.60 per unit during the three and nine months ended December 31, 2019. The weighted-average fair value of awards includes the awards with a market condition described below. Awards with a Market Condition In the nine months ended December 31, 2020, we granted 299 market performance stock units to certain executives. The vesting of these awards is contingent upon us 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% (598 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 nine months ended December 31, 2020 was $36.76 per unit. The awards are included in the restricted stock unit table above. Employee Stock Purchase Plan The Employee Stock Purchase Plan (the "Purchase Plan") is a shareholder approved plan under which substantially all employees may purchase Commvault’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of the six-month offering periods. An employee’s payroll deductions under the Purchase Plan are limited to 10% of the employee’s salary and employees may not purchase more than $25 of stock during any calendar year. Employees purchased 129 shares in exchange for $4,652 of proceeds in the nine months ended December 31, 2020 and 136 shares in exchange for $4,833 in the nine months ended December 31, 2019. The total expense associated with the Purchase Plan was $2,528 for the nine months ended December 31, 2020 and $2,243 for the nine months ended December 31, 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax expense was $5,373 in the nine months ended December 31, 2020 compared to expense of $3,528 in the nine months ended December 31, 2019. In the fourth quarter of fiscal 2020, we recorded a current tax benefit of approximately $10,000 which represented our estimate of the net operating loss carryback resulting from the CARES Act. In the first quarter of fiscal 2021, we recorded an adjustment of $3,200 to reduce the current benefit of the net operating loss carryback benefit we will realize from the CARES Act. In fiscal 2018, we determined that it was more likely than not that we will not realize the benefits of our 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. Our position remains unchanged with respect to the realizability of our deferred tax assets as of December 31, 2020. |
Restructuring
Restructuring | 9 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Our restructuring plan, initiated in the first quarter of fiscal 2019, is aimed to increase efficiency in our sales, marketing and distribution functions as well as reduce costs across all functional areas. These restructuring charges relate primarily to severance and related costs associated with headcount reductions, stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan and lease abandonment charges. For the three and nine months ended December 31, 2020 and 2019, restructuring charges were comprised of the following: Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Employee severance and related costs $ 9,852 $ 1,167 $ 16,547 $ 15,074 Lease impairments and related costs (1) 612 145 1,304 2,195 Stock-based compensation 1,154 709 1,858 1,682 Total restructuring charges $ 11,618 $ 2,021 $ 19,709 $ 18,951 (1) Lease impairment charges for the three and nine months ended December 31, 2020 relate to one and six offices, respectively. Lease impairment charges for the three and nine months ended December 31, 2019 relate to two and five offices, respectively. Restructuring accruals The activity in our restructuring accruals for the nine months ended December 31, 2020 is as follows: Total Balance as of March 31, 2020 $ 2,531 Employee severance and related costs 16,547 Payments (13,243) Balance as of December 31, 2020 $ 5,835 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements of Commvault as of December 31, 2020 and for the three and nine months ended December 31, 2020 and 2019 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 our Annual Report on Form 10-K for fiscal 2020. 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 our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amount of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our 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, and goodwill and purchased intangible assets. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) Accounting Standards Update ("ASU") No. 2016-13 (Topic 326), Financial Instruments-Credit Losses 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. We adopted this new standard as of April 1, 2020, using the modified retrospective method recognized as of the date of initial application. The adoption of this new standard resulted in an $84 thousand cumulative effect on our unaudited consolidated financial statements related to an adjustment to our allowance for doubtful accounts. Under the new standard, we assess credit losses on accounts receivable by taking into consideration past collection experience, credit quality of the customer, age of the receivable balance, current economic conditions, and forecasts that affect the collectability of the reported amount. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) ASU No. 2019-12 (Topic 740), Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for us beginning April 1, 2021, with early adoption permitted. We are currently evaluating the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems. |
Concentration of Credit Risk | We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Credit losses relating to these customers have historically been minimal. |
Fair Value of Financial Instruments | The carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short-term maturity of these instruments. Our short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. We account for our short-term investments as held to maturity. |
Revenue | We derive revenues from two primary sources: software and products, and services. Software and products revenue includes our software and integrated appliances that combine our software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services, customer education and Commvault software-as-a-service, which is branded as Metallic. We sell both perpetual and term-based licenses of our software. We refer to our term-based software licenses as subscription arrangements. We do not customize our 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. We have concluded that our software licenses (both perpetual and subscription) are functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue for both perpetual and subscription licenses 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. We do not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the new subscription period. We also sell appliances that integrate our 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. Revenue related to appliances is recognized when control of the appliances passes to the customer; typically upon delivery. 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. Commvault 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. Our other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by our instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. In fiscal 2020 Commvault launched Metallic, which is a Commvault software-as-a-service offering. Revenue from Metallic is recognized ratably as services revenue. Most of our contracts with customers contain multiple performance obligations. For these contracts, we account 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) Accounting Standards Update ("ASU") No. 2016-13 (Topic 326), Financial Instruments-Credit Losses 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. We adopted this new standard as of April 1, 2020, using the modified retrospective method recognized as of the date of initial application. The adoption of this new standard resulted in an $84 thousand cumulative effect on our unaudited consolidated financial statements related to an adjustment to our allowance for doubtful accounts. Under the new standard, we assess credit losses on accounts receivable by taking into consideration past collection experience, credit quality of the customer, age of the receivable balance, current economic conditions, and forecasts that affect the collectability of the reported amount. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) ASU No. 2019-12 (Topic 740), Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for us beginning April 1, 2021, with early adoption permitted. We are currently evaluating the impact of this standard in our consolidated financial statements, including accounting policies, processes, and systems. |
Financial Assets Measured at Fair Value | The following table summarizes the composition of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and March 31, 2020: December 31, 2020 Level 1 Level 2 Level 3 Total Short-term investments $ — 10,999 — $ 10,999 March 31, 2020 Level 1 Level 2 Level 3 Total Short-term investments $ — 44,484 — $ 44,484 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is 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 Other Services Revenue 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 Software-as-a-service (Metallic) Ratably over the course of the contract (over time) Annual or monthly payments Observable in transactions without multiple performance obligations |
Disaggregation of Revenue | Three Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 43,636 $ 33,374 $ 11,615 $ 88,625 Customer Support Revenue 53,488 25,808 10,386 89,682 Other Services Revenue 5,031 3,332 1,322 9,685 Total Revenue $ 102,155 $ 62,514 $ 23,323 $ 187,992 Three Months Ended December 31, 2019 Americas EMEA APJ Total Software and Products Revenue $ 40,291 $ 29,107 $ 7,233 $ 76,631 Customer Support Revenue 57,856 22,237 10,438 90,531 Other Services Revenue 4,883 2,673 1,633 9,189 Total Revenue $ 103,030 $ 54,017 $ 19,304 $ 176,351 Nine Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 133,522 $ 74,232 $ 29,734 $ 237,488 Customer Support Revenue 162,903 74,029 30,840 267,772 Other Services Revenue 13,938 8,971 3,962 26,871 Total Revenue $ 310,363 $ 157,232 $ 64,536 $ 532,131 Nine Months Ended December 31, 2019 Americas EMEA APJ Total Software and Products Revenue $ 107,375 $ 71,922 $ 29,603 $ 208,900 Customer Support Revenue 173,450 65,810 30,756 270,016 Other Services Revenue 14,179 8,035 5,006 27,220 Total Revenue $ 295,004 $ 145,767 $ 65,365 $ 506,136 |
Contract with Customer, Asset and Liability | The opening and closing balances of our Accounts receivable, Unbilled receivables, and Deferred revenues are as follows: Accounts Receivable Unbilled Receivable Unbilled Receivable Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2020 $ 129,856 $ 17,134 $ 7,857 $ 233,497 $ 92,723 Increase, net 39,467 4,194 1,952 14,047 15,557 Ending Balance as of December 31, 2020 $ 169,323 $ 21,328 $ 9,809 $ 247,544 $ 108,280 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Purchased Intangible Assets, Net of Amortization | Intangible assets subject to amortization as of December 31, 2020 are as follows: Gross Carrying Amount Accumulated Amortization Impairment Charge Net Carrying Value Developed technology $ 49,000 $ (9,800) $ (39,200) $ — Customer relationships 3,000 (1,500) (1,500) — Total intangible assets, net $ 52,000 $ (11,300) $ (40,700) $ — |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Net income (loss) $ 1,673 $ (650) $ (37,215) $ (14,580) Basic net income (loss) per common share: Basic weighted average shares outstanding 47,013 46,028 46,575 45,586 Basic net income (loss) per common share $ 0.04 $ (0.01) $ (0.80) $ (0.32) Diluted net loss per common share: Basic weighted average shares outstanding 47,013 46,028 46,575 45,586 Dilutive effect of stock options and restricted stock units 1,000 — — — Diluted weighted average shares outstanding 48,013 46,028 46,575 45,586 Diluted net income (loss) per common share $ 0.03 $ (0.01) $ (0.80) $ (0.32) |
Stock Plans (Tables)
Stock Plans (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
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 expenses and Restructuring expenses for the three and nine months ended December 31, 2020 and 2019. Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan. Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Cost of services revenue $ 945 $ 635 $ 2,351 $ 2,023 Sales and marketing 9,714 9,128 25,906 24,133 Research and development 6,203 5,222 17,722 9,226 General and administrative 4,021 3,280 13,735 11,517 Restructuring 1,154 709 1,858 1,682 Stock-based compensation expense $ 22,037 $ 18,974 $ 61,572 $ 48,581 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the nine months ended December 31, 2020 is as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2020 3,237 $ 50.47 Awarded 2,005 41.01 Vested (1,314) 51.17 Forfeited (230) 51.37 Non-vested as of December 31, 2020 3,698 $ 45.09 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | For the three and nine months ended December 31, 2020 and 2019, restructuring charges were comprised of the following: Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Employee severance and related costs $ 9,852 $ 1,167 $ 16,547 $ 15,074 Lease impairments and related costs (1) 612 145 1,304 2,195 Stock-based compensation 1,154 709 1,858 1,682 Total restructuring charges $ 11,618 $ 2,021 $ 19,709 $ 18,951 (1) Lease impairment charges for the three and nine months ended December 31, 2020 relate to one and six offices, respectively. Lease impairment charges for the three and nine months ended December 31, 2019 relate to two and five offices, respectively. The activity in our restructuring accruals for the nine months ended December 31, 2020 is as follows: Total Balance as of March 31, 2020 $ 2,531 Employee severance and related costs 16,547 Payments (13,243) Balance as of December 31, 2020 $ 5,835 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Stockholders' equity | $ (414,071) | $ (419,476) | $ (411,904) | $ (417,633) | $ (372,114) | $ (391,303) |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Stockholders' equity | $ 84 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 36.00% | 37.00% | |
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 33.00% | 31.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Assets: | ||
Short-term investments | $ 10,999 | $ 44,484 |
Level 1 | ||
Assets: | ||
Short-term investments | 0 | 0 |
Level 2 | ||
Assets: | ||
Short-term investments | 10,999 | 44,484 |
Level 3 | ||
Assets: | ||
Short-term investments | $ 0 | $ 0 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)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 | $ 57,062 | $ 212,790 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue expected to be recognized from remaining performance obligations | 48,227 | 48,227 |
Software and Products Revenue | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue expected to be recognized from remaining performance obligations | $ 11,000 | $ 11,000 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) | 9 Months Ended |
Dec. 31, 2020 | |
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 |
Other Professional Services | |
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 Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 187,992 | $ 176,351 | $ 532,131 | $ 506,136 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 102,155 | 103,030 | 310,363 | 295,004 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 62,514 | 54,017 | 157,232 | 145,767 |
APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 23,323 | 19,304 | 64,536 | 65,365 |
Software and Products Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 88,625 | 76,631 | 237,488 | 208,900 |
Software and Products Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 43,636 | 40,291 | 133,522 | 107,375 |
Software and Products Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 33,374 | 29,107 | 74,232 | 71,922 |
Software and Products Revenue | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 11,615 | 7,233 | 29,734 | 29,603 |
Customer Support Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 89,682 | 90,531 | 267,772 | 270,016 |
Customer Support Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 53,488 | 57,856 | 162,903 | 173,450 |
Customer Support Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 25,808 | 22,237 | 74,029 | 65,810 |
Customer Support Revenue | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 10,386 | 10,438 | 30,840 | 30,756 |
Other Services Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 9,685 | 9,189 | 26,871 | 27,220 |
Other Services Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 5,031 | 4,883 | 13,938 | 14,179 |
Other Services Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 3,332 | 2,673 | 8,971 | 8,035 |
Other Services Revenue | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 1,322 | $ 1,633 | $ 3,962 | $ 5,006 |
Revenue - Opening and Closing B
Revenue - Opening and Closing Balances of Accounts Receivable, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2020USD ($) | |
Accounts Receivable | |
Opening Balance as of March 31, 2020 | $ 129,856 |
Increase, net | 39,467 |
Ending Balance as of December 31, 2020 | 169,323 |
Unbilled Receivable (current) | |
Opening Balance as of March 31, 2020 | 17,134 |
Increase, net | 4,194 |
Ending Balance as of December 31, 2020 | 21,328 |
Unbilled Receivable (long-term) | |
Opening Balance as of March 31, 2020 | 7,857 |
Increase, net | 1,952 |
Ending Balance as of December 31, 2020 | 9,809 |
Deferred Revenue (current) | |
Opening Balance as of March 31, 2020 | 233,497 |
Increase, net | 14,047 |
Ending Balance as of December 31, 2020 | 247,544 |
Deferred Revenue (long-term) | |
Opening Balance as of March 31, 2020 | 92,723 |
Increase, net | 15,557 |
Ending Balance as of December 31, 2020 | $ 108,280 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill addition | $ 0 | $ 0 |
Goodwill impairment | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 52,000 | $ 52,000 | |||
Accumulated Amortization | (11,300) | (11,300) | |||
Impairment Charge | 0 | $ (40,700) | $ 0 | (40,700) | $ 0 |
Net Carrying Value | 0 | 0 | |||
Amortization of intangible assets | $ 2,825 | 5,650 | $ 2,825 | ||
Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 49,000 | 49,000 | |||
Accumulated Amortization | (9,800) | (9,800) | |||
Impairment Charge | (39,200) | ||||
Net Carrying Value | 0 | 0 | |||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 3,000 | 3,000 | |||
Accumulated Amortization | (1,500) | (1,500) | |||
Impairment Charge | (1,500) | ||||
Net Carrying Value | $ 0 | $ 0 |
Net Income per Common Share - C
Net Income per Common Share - Computation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 1,673 | $ (650) | $ (37,215) | $ (14,580) |
Basic net income (loss) per common share: | ||||
Basic weighted average shares outstanding (in shares) | 47,013 | 46,028 | 46,575 | 45,586 |
Basic net income (loss) per common share (in dollars per share) | $ 0.04 | $ (0.01) | $ (0.80) | $ (0.32) |
Diluted net loss per common share: | ||||
Dilutive effect of stock options and restricted stock units (in shares) | 1,000 | 0 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 48,013 | 46,028 | 46,575 | 45,586 |
Diluted net income (loss) per common share (in dollars per share) | $ 0.03 | $ (0.01) | $ (0.80) | $ (0.32) |
Net Income per Common Share - A
Net Income per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation (in shares) | 1,049 | 5,459 | 5,160 | 4,952 |
Capitalization (Details)
Capitalization (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 28, 2021 | |
Subsequent Event [Line Items] | |||||
Repurchase of common stock | $ 33,132,000 | $ 33,132,000 | $ 40,026,000 | ||
Repurchase of common stock (in shares) | 700,694,000 | 0 | |||
Remaining amount available under share repurchase program | $ 166,868,000 | $ 166,868,000 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Share repurchase program, amount approved | $ 200,000 | ||||
Percentage of free cash flow used for additional stock repurchases | 75.00% |
Stock Plans - Stock-Based Compe
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 22,037 | $ 18,974 | $ 61,572 | $ 48,581 |
Cost of services revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 945 | 635 | 2,351 | 2,023 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9,714 | 9,128 | 25,906 | 24,133 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 6,203 | 5,222 | 17,722 | 9,226 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 4,021 | 3,280 | 13,735 | 11,517 |
Restructuring | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,154 | $ 709 | $ 1,858 | $ 1,682 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) - Restricted stock units $ in Thousands | 9 Months Ended |
Dec. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 137,420 |
Weighted average period awards are expected to be recognized | 2 years 18 days |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Units (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted- Average Grant Date Fair Value | ||||
Awarded (in dollars per share) | $ 46.21 | $ 46.60 | ||
Weighted-average fair value, units awarded (in dollars per share) | $ 46.21 | $ 46.60 | ||
Restricted stock units | ||||
Number of Awards | ||||
Non-vested, beginning balance (in shares) | 3,237 | |||
Awarded (in shares) | 2,005 | |||
Vested (in shares) | (1,314) | |||
Forfeited (in shares) | (230) | |||
Non-vested, ending balance (in shares) | 3,698 | 3,698 | ||
Weighted- Average Grant Date Fair Value | ||||
Non-vested, beginning balance (in dollars per share) | $ 50.47 | |||
Awarded (in dollars per share) | $ 43.70 | 41.01 | ||
Vested (in dollars per share) | 51.17 | |||
Forfeited (in dollars per share) | 51.37 | |||
Non-vested, ending balance (in dollars per share) | 45.09 | 45.09 | ||
Weighted-average fair value, units awarded (in dollars per share) | $ 43.70 | $ 41.01 |
Stock Plans - Awards with a Mar
Stock Plans - Awards with a Market Condition (Details) shares in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2019$ / shares | Dec. 31, 2020tranche$ / sharesshares | Dec. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value, units awarded (in dollars per share) | $ / shares | $ 46.21 | $ 46.60 | |
Market performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awarded (in shares) | shares | 299 | ||
Service period | 3 years | ||
Number of annual tranches | tranche | 3 | ||
Maximum potential to vest (as a percentage) | 200.00% | ||
Maximum potential to vest (in shares) | shares | 598 | ||
Weighted-average fair value, units awarded (in dollars per share) | $ / shares | $ 36.76 |
Stock Plans - Employee Stock Pu
Stock Plans - Employee Stock Purchase plan (Details) - Employee Stock - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Purchase price as a percentage of fair market value | 85.00% | |
Offering period | 6 months | |
Maximum employee payroll percent deduction of salary | 10.00% | |
Maximum amount of stock purchasable by employees within a calendar year | $ 25 | |
Number of shares purchased by employees (in shares) | 129 | 136 |
Proceeds received | $ 4,652 | $ 4,833 |
Compensation expense | $ 2,528 | $ 2,243 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||
Income tax expense (benefit) | $ 1,162,000 | $ 957,000 | $ 5,373,000 | $ 3,528,000 | |||
Current tax benefit | $ 10,000,000 | ||||||
Adjustment of current income tax benefit | $ 3,200,000 | ||||||
Deferred tax assets | $ 0 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | |
Restructuring and Related Activities [Abstract] | ||||
Employee severance and related costs | $ 9,852 | $ 1,167 | $ 16,547 | $ 15,074 |
Lease impairments and related costs | 612 | 145 | 1,304 | 2,195 |
Stock-based compensation | 1,154 | 709 | 1,858 | 1,682 |
Total restructuring charges | $ 11,618 | $ 2,021 | $ 19,709 | $ 18,951 |
Operating lease impairment loss, number of leases | contract | 1 | 2 | 6 | 5 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Accruals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 2,531 | |||
Employee severance and related costs | $ 9,852 | $ 1,167 | 16,547 | $ 15,074 |
Payments | (13,243) | |||
Balance at end of period | $ 5,835 | $ 5,835 |