Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2022 | May 03, 2022 | Sep. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2022 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-33026 | ||
Entity Registrant Name | COMMVAULT SYSTEMS INC | ||
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, $0.01 par value | ||
Trading Symbol | CVLT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.4 | ||
Entity Common Stock, Shares Outstanding | 44,602,631 | ||
Documents Incorporated by Reference | Information required by Part III (Items 10, 11, 12, 13 and 14) is incorporated by reference to portions of the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Stockholders (the “Proxy Statement”), which is expected to be filed not later than 120 days after the registrant’s fiscal year ended March 31, 2022. Except as expressly incorporated by reference, the Proxy Statement shall not be deemed to be part of this report on Form 10-K. | ||
Entity Central Index Key | 0001169561 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Iselin, New Jersey |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 267,507 | $ 397,237 |
Trade accounts receivable, net | 194,238 | 188,126 |
Other current assets | 22,336 | 22,237 |
Total current assets | 484,081 | 607,600 |
Property and equipment, net | 106,513 | 112,779 |
Operating lease assets | 14,921 | 20,778 |
Deferred commissions cost | 52,974 | 38,444 |
Intangible assets, net | 3,542 | 0 |
Goodwill | 127,780 | 112,435 |
Other assets | 26,269 | 12,137 |
Total assets | 816,080 | 904,173 |
Current liabilities: | ||
Accounts payable | 432 | 374 |
Accrued liabilities | 121,837 | 112,148 |
Current portion of operating lease liabilities | 4,778 | 7,469 |
Deferred revenue | 267,017 | 253,211 |
Total current liabilities | 394,064 | 373,202 |
Deferred revenue, less current portion | 150,180 | 119,231 |
Deferred tax liabilities, net | 808 | 761 |
Long-term operating lease liabilities | 11,270 | 15,419 |
Other liabilities | 3,929 | 1,526 |
Commitments and contingencies (Note 8) | ||
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, 44,511 shares and 46,482 shares issued and outstanding at March 31, 2022 and 2021, respectively | 443 | 463 |
Additional paid-in capital | 1,165,948 | 1,069,695 |
Accumulated deficit | (898,699) | (665,774) |
Accumulated other comprehensive loss | (11,863) | (10,350) |
Total stockholders’ equity | 255,829 | 394,034 |
Total liabilities and stockholders’ equity | $ 816,080 | $ 904,173 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
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) | 44,511,000 | 46,482,000 |
Common stock, shares outstanding (in shares) | 44,511,000 | 46,482,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Total revenues | $ 769,591 | $ 723,472 | $ 670,885 |
Cost of revenues: | |||
Total cost of revenues | 113,859 | 109,373 | 117,078 |
Gross margin | 655,732 | 614,099 | 553,807 |
Operating expenses: | |||
Sales and marketing | 341,644 | 331,948 | 335,785 |
Research and development | 153,615 | 133,401 | 110,020 |
General and administrative | 103,049 | 92,214 | 92,130 |
Restructuring | 6,192 | 23,471 | 21,348 |
Depreciation and amortization | 9,666 | 14,628 | 15,815 |
Impairment of intangible assets | 0 | 40,700 | 0 |
Net change in contingent consideration | 0 | 0 | (3,783) |
Total operating expenses | 614,166 | 636,362 | 571,315 |
Income (loss) from operations | 41,566 | (22,263) | (17,508) |
Interest income | 656 | 1,028 | 4,962 |
Interest expense | (109) | 0 | 0 |
Other income, net | 1,301 | 0 | 0 |
Income (loss) before income taxes | 43,414 | (21,235) | (12,546) |
Income tax expense (benefit) | 9,790 | 9,719 | (6,901) |
Net income (loss) | $ 33,624 | $ (30,954) | $ (5,645) |
Net income (loss) per common share: | |||
Basic (in dollars per share) | $ 0.74 | $ (0.66) | $ (0.12) |
Diluted (in dollars per share) | $ 0.71 | $ (0.66) | $ (0.12) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 45,443 | 46,652 | 45,793 |
Diluted (in shares) | 47,220 | 46,652 | 45,793 |
Software and products | |||
Revenue from Contract with Customer [Abstract] | |||
Total revenues | $ 356,487 | $ 326,843 | $ 275,308 |
Cost of revenues: | |||
Total cost of revenues | 14,057 | 27,218 | 28,082 |
Services | |||
Revenue from Contract with Customer [Abstract] | |||
Total revenues | 413,104 | 396,629 | 395,577 |
Cost of revenues: | |||
Total cost of revenues | $ 99,802 | $ 82,155 | $ 88,996 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 33,624 | $ (30,954) | $ (5,645) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (1,513) | 3,073 | (1,855) |
Comprehensive income (loss) | $ 32,111 | $ (27,881) | $ (7,500) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ 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 | ||||||
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 Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||
Stock-based compensation | $ 65,888 | 65,888 | |||||
Share issuances related to business combinations | 1,616 | 1,616 | |||||
Share issuance related to stock-based compensation (in shares) | 2,131 | ||||||
Share issuance related to stock-based compensation | 37,795 | $ 21 | 37,774 | ||||
Repurchase of common stock (in shares) | (1,702) | ||||||
Repurchase of common stock | (77,198) | $ (17) | (14,526) | (62,655) | |||
Net income (loss) | (5,645) | (5,645) | |||||
Other comprehensive income (loss) | (1,855) | (1,855) | |||||
Ending Balance (in shares) at Mar. 31, 2020 | 46,011 | ||||||
Ending 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 | 84,833 | 84,833 | |||||
Share issuance related to stock-based compensation (in shares) | 2,115 | ||||||
Share issuance related to stock-based compensation | 20,521 | $ 21 | 20,500 | ||||
Repurchase of common stock (in shares) | (1,644) | ||||||
Repurchase of common stock | (95,259) | $ (16) | (14,297) | (80,946) | |||
Net income (loss) | (30,954) | (30,954) | |||||
Other comprehensive income (loss) | 3,073 | 3,073 | |||||
Ending Balance (in shares) at Mar. 31, 2021 | 46,482 | ||||||
Ending Balance at Mar. 31, 2021 | 394,034 | $ 463 | 1,069,695 | (665,774) | (10,350) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 105,163 | 105,163 | |||||
Share issuance related to stock-based compensation (in shares) | 2,336 | ||||||
Share issuance related to stock-based compensation | $ 29,760 | $ 23 | 29,737 | ||||
Repurchase of common stock (in shares) | (4,307) | (4,307) | |||||
Repurchase of common stock | $ (305,239) | $ (43) | (38,647) | (266,549) | |||
Net income (loss) | 33,624 | 33,624 | |||||
Other comprehensive income (loss) | (1,513) | (1,513) | |||||
Ending Balance (in shares) at Mar. 31, 2022 | 44,511 | ||||||
Ending Balance at Mar. 31, 2022 | $ 255,829 | $ 443 | $ 1,165,948 | $ (898,699) | $ (11,863) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 33,624,000 | $ (30,954,000) | $ (5,645,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 10,950,000 | 15,878,000 | 17,065,000 |
Noncash stock-based compensation | 105,163,000 | 84,833,000 | 65,888,000 |
Noncash change in fair value of equity securities | (301,000) | 0 | 0 |
Noncash change in contingent consideration | 0 | 0 | (3,783,000) |
Impairment of intangible assets | 0 | 40,700,000 | 0 |
Deferred income taxes | 49,000 | (92,000) | (1,783,000) |
Amortization of deferred commissions cost | 18,339,000 | 18,318,000 | 17,717,000 |
Impairment of operating lease assets | 0 | 1,684,000 | 2,761,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (20,371,000) | (34,622,000) | 26,096,000 |
Operating lease assets and liabilities, net | (925,000) | (1,157,000) | (1,226,000) |
Other current assets and Other assets | 3,732,000 | 11,887,000 | (1,246,000) |
Deferred commissions cost | (33,512,000) | (24,095,000) | (16,063,000) |
Accounts payable | 60,000 | 49,000 | (2,474,000) |
Accrued liabilities | 10,400,000 | 10,660,000 | (1,997,000) |
Deferred revenue | 48,295,000 | 31,740,000 | (6,230,000) |
Other liabilities | 1,677,000 | (874,000) | (616,000) |
Net cash provided by operating activities | 177,180,000 | 123,955,000 | 88,464,000 |
Cash flows from investing activities | |||
Purchase of short-term investments | 0 | 0 | (43,645,000) |
Proceeds from maturity of short-term investments | 0 | 43,645,000 | 130,338,000 |
Purchase of property and equipment | (3,911,000) | (8,176,000) | (3,203,000) |
Purchase of equity securities | (4,139,000) | 0 | 0 |
Business combination, net of cash acquired | (16,894,000) | 0 | (157,495,000) |
Other | 500,000 | 0 | 0 |
Net cash provided by (used in) investing activities | (24,444,000) | 35,469,000 | (74,005,000) |
Cash flows from financing activities | |||
Repurchase of common stock | (305,239,000) | (95,259,000) | (77,198,000) |
Proceeds from stock-based compensation plans | 29,760,000 | 20,521,000 | 37,795,000 |
Debt issuance costs | (609,000) | 0 | 0 |
Net cash used in financing activities | (276,088,000) | (74,738,000) | (39,403,000) |
Effects of exchange rate — changes in cash | (6,378,000) | 16,469,000 | (6,966,000) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (129,730,000) | 101,155,000 | (31,910,000) |
Cash, cash equivalents and restricted cash at beginning of year | 397,237,000 | 296,082,000 | 327,992,000 |
Cash, cash equivalents and restricted cash at end of year | 267,507,000 | 397,237,000 | 296,082,000 |
Supplemental disclosures of cash flow information | |||
Interest paid | 13,000 | 0 | 0 |
Income taxes paid | $ (1,493,000) | $ 2,959,000 | $ 6,002,000 |
Nature of Business
Nature of Business | 12 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of BusinessCommvault 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, including data management-as-a-service, branded as Metallic. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Commvault. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles ("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 amounts of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of the 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, deferred commissions, purchased intangible assets and goodwill. Actual results could differ from those estimates. Revenue We account for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"). For a further discussion of our accounting policies related to revenue, see Note 3 of the consolidated financial statements. Shipping and Handling Costs Shipping and handling costs are included in cost of revenues for all periods presented. Sales Tax We record revenue net of sales tax. Accounting for Stock-Based Compensation Restricted stock units without a market condition are measured based on the fair market values of the underlying stock on the date of grant. We recognize stock-based compensation expense using the straight-line method for all stock awards that do not include a market or performance condition. Awards that include a market or performance condition are expensed using the accelerated method. Software Development Costs The costs for the development of new products and substantial enhancements to existing products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized in accordance with the accounting guidance for software. Because our current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs have been capitalized for any of the periods presented. Advertising Costs We expense advertising costs as incurred. Advertising expenses were $9,572, $9,560, and $5,579 for the years ended March 31, 2022, 2021 and 2020, respectively. Accounting for Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes ("ASC 740"). The provision for income taxes and effective tax rates are calculated by legal entity and jurisdiction and are based on a number of factors, including the level of pre-tax earnings, income tax planning strategies, differences between tax laws and accounting rules, statutory tax rates and credits, uncertain tax positions and valuation allowances. We use significant judgment and estimates in evaluating tax positions. The effective tax rate in a given financial statement period may be materially impacted by changes in the mix and level of earnings by taxing jurisdiction. Under ASC 740, deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts. Valuation allowances are established when, in our judgment, it is more likely than not that deferred tax assets will not be realized. In assessing the need for a valuation allowance, we weigh the available positive and negative evidence, including historical levels of pre-tax income, legislative developments, expectations and risks associated with estimates of future pre-tax income, and prudent and feasible tax planning strategies. Foreign Currency Translation The functional currencies of our foreign operations are deemed to be the local country’s currency. Assets and liabilities of our international subsidiaries are translated at their respective period-end exchange rates, and revenues and expenses are translated at average currency exchange rates for the period. The resulting balance sheet translation adjustments are included in Other comprehensive income (loss) and are reflected as a separate component of Stockholders’ equity. Foreign currency transaction gains and losses are recorded in General and administrative expenses in the Consolidated Statements of Operations. These gains and losses relate primarily to receivables and payables that are not denominated in the functional currency of the subsidiary they relate to. Net foreign currency transaction losses were not significant for the year ended March 31, 2022. We recognized net foreign currency transaction losses of $1,918 and gains of $355 in the years ended March 31, 2021 and 2020, respectively. Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options, vesting of restricted stock units and shares to be purchased under the Employee Stock Purchase Plan. The dilutive effect of such potential common shares is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the reconciliation of basic and diluted common share: Year Ended March 31, 2022 2021 2020 Net income (loss) $ 33,624 $ (30,954) $ (5,645) Basic net income (loss) per common share: Basic weighted average shares outstanding 45,443 46,652 45,793 Basic net income per common share $ 0.74 $ (0.66) $ (0.12) Diluted net income (loss) per common share: Basic weighted-average shares outstanding 45,443 46,652 45,793 Dilutive effect of stock options, restricted stock units, and employee stock purchase plan (1) 1,777 — — Diluted weighted-average shares outstanding 47,220 46,652 45,793 (1) The fiscal 2021 and 2020 shares have been excluded from the diluted weighted-average shares outstanding calculation as we were in a net loss position; therefore, these shares would have been anti-dilutive. The following table summarizes our potential outstanding common stock equivalents at the end of each period, which have been excluded from the computation of diluted net income (loss) per common share, as their effect is anti-dilutive. Year Ended March 31, 2022 2021 2020 Stock options, restricted stock units, and shares under the employee stock purchase plan 505 5,024 4,933 Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments purchased with maturities of three months or less at the date of purchase to be cash equivalents, primarily in the form of money market funds. Trade and Other Receivables Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts, which is not material. Unbilled receivables represent amounts for which revenue has been recognized but which have not yet been invoiced to the customer. The current portion of unbilled receivables is included in Trade accounts receivable on the Consolidated Balance Sheets. Long-term unbilled receivables are included in Other assets. The allowance for doubtful accounts was $705 as of March 31, 2022 and $483 as of March 31, 2021. For the years ended March 31, 2022, 2021 and 2020, bad debt expense was immaterial. Historically, we have not experienced material losses related to the inability to collect receivables from our customers. While there is presently no indication that we will not collect material amounts of accounts receivable as of March 31, 2022, we continue to closely monitor the impact of COVID-19 and the war in Ukraine on our customers. In these current economic conditions, payment from our customers may be delayed or receivables may become uncollectible. The inability to collect receivables could have a material impact on our results of operations. 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 been minimal. Sales through our distribution agreement with Arrow Enterprise Computing Solutions, Inc. ("Arrow") totaled approximately 37%, 36% and 37% of total revenues for the years ended March 31, 2022, 2021 and 2020, respectively. Arrow accounted for approximately 30% and 33% of total accounts receivable as of March 31, 2022 and 2021, respectively. Fair Value of Financial Instruments The carrying amounts of our cash, cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short-term maturity of these instruments. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for such asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, we use the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs other than Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 — Unobservable inputs that are supported by little or no market activity and that require the reporting entity to develop its own assumptions. There were no financial assets or liabilities measured at fair value on a recurring basis for the years ended March 31, 2022 or 2021. Equity Securities Accounted for at Net Asset Value We held equity interests in private equity funds of $4,237 as of March 31, 2022, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement . These investments are included in Other assets in the accompanying Consolidated Balance Sheets. The net asset values of these investments are determined using quarterly capital statements from the funds, which are based on our contributions to the funds, allocation of profit and loss and changes in fair value of the underlying fund investments. Changes in fair value as reported on the capital statements are recorded through profit and loss as non-operating income or expense. These private equity funds focus on making investments in key technology sectors, principally by investing in companies at expansion capital and growth equity stages. We have total unfunded commitments in private equity funds of $6,889 as of March 31, 2022. We did not own interests in any of these funds prior to fiscal year 2022. Leases We account for leases in accordance with ASC 842, Leases. For a further discussion of our accounting policies related to leases, see Note 15 of the consolidated financial statements. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. We provide for depreciation on a straight-line basis over the estimated useful lives of the assets. The depreciable assets that comprise our owned headquarters are classified as Buildings and are being depreciated over lives ranging from ten three Goodwill and Intangible Assets Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The carrying value of goodwill is tested for impairment on an annual basis on January 1, or more often if an event occurs or circumstances change that would more likely than not reduce the fair value of its carrying amount. For the purpose of impairment testing, we have a single reporting unit. The impairment test consists of comparing the fair value of the reporting unit with its carrying amount that includes goodwill. If the carrying amount of the reporting unit exceeds the fair value of the reporting unit, an impairment loss would be recognized to reduce the carrying amount to its fair value. Our finite lived purchased intangible asset, developed technology, was valued using the replacement cost method and is being amortized on a straight-line basis over its economic life of three years as we believed this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. Impairment losses are recognized if the carrying amount of an intangible asset is both not recoverable and exceeds its fair value. Long-Lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of our long-lived assets, we evaluate the estimated future undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the long-lived asset. If the estimated future undiscounted cash flows demonstrate that recoverability is not probable, an impairment loss would be recognized. An impairment loss would be calculated based on the excess carrying amount of the long-lived asset over the long-lived asset’s fair value. The fair value would be determined based on valuation techniques such as a comparison to fair values of similar assets. Deferred Commissions Cost Sales commissions, bonuses, and related payroll taxes earned by our employees are considered incremental and recoverable costs of obtaining a contract with a customer. Our typical contracts include performance obligations related to software licenses, software updates, customer support and other services, including software-as-a-service offerings. In these contracts, incremental costs of obtaining a contract are allocated to the performance obligations based on the relative estimated standalone selling prices and then recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We do not pay commissions on annual renewals of contracts for software updates and customer support for perpetual licenses. The costs allocated to software and products are expensed at the time of sale, when revenue for the functional software license or appliance is recognized. The costs allocated to software updates and customer support for perpetual licenses are amortized ratably over a period of approximately five years, the expected period of benefit of the asset capitalized. We currently estimate a period of five years is appropriate based on consideration of historical average customer life and the estimated useful life of the underlying software or appliance sold as part of the transaction. Beginning in fiscal 2022, we modified the terms of our commission plans, and as a result, the commission paid on the renewal of a term-based, or subscription software license, was not commensurate with the commission paid on the initial purchase. As a result, the cost of commissions allocated to software updates and customer support on the initial transaction are now amortized over a period of approximately five years, consistent with the accounting for these costs associated with perpetual licenses. The costs of commissions allocated to software updates and support for the renewal of term-based software licenses is limited to the contractual period of the arrangement, as we pay a commensurate renewal commission upon the next renewal of the subscription license and related updates and support. This change in commission plans also resulted in a change in the estimate of the amortization period of our existing Deferred commissions cost associated with term licenses. This change in amortization period resulted in an approximate $3,575 reduction in Sales and marketing expense, than if the change in estimate did not occur, for the year ended March 31, 2022. The costs related to professional services are amortized over the period the related professional services are provided and revenue is recognized. Amortization expense related to these costs is included in Sales and marketing expenses in the accompanying Consolidated Statements of Operations. Deferred Revenue Deferred revenues represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from the billing of annual customer support agreements, and billings for other professional services fees that have not yet been performed by us. The value of deferred revenues will increase or decrease based on the timing of invoices and recognition of revenue. Share Repurchases We consider all shares repurchased as canceled shares restored to the status of authorized but unissued shares on the trade date. The aggregate purchase price of the shares of our common stock repurchased is reflected as a reduction to Stockholders’ equity. We account for shares repurchased as an adjustment to common stock (at par value) with the excess repurchase price allocated between Additional paid-in capital and Accumulated deficit. Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity, except those resulting from investments by stockholders and distribution to stockholders. Recently Adopted Accounting Standards 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. We adopted this standard as of April 1, 2021. The standard did not have a significant impact on our financial statements. ASU No. 2021-08 (Topic 805), Business Combinations In October 2021, the FASB issued a new standard to improve the accounting for acquired revenue We elected to early adopt effective January 1, 2022. The standard did not have a significant impact in our consolidated financial statements, including accounting policies, processes and systems. |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2022 | |
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. In the second half of fiscal 2021 we began transitioning to a software only model in which we typically sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenue and costs associated with hardware have declined from recent fiscal years. 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. We sell our 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 on our perpetual licenses. The term of our subscription arrangements is typically three years, but can range between one 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. Commvault software-as-a-service, which is branded as Metallic, allows customers to use hosted software over the contract period without taking possession of the software. Revenue related to Metallic is generally recognized ratably over the contract term 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 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. Year Ended March 31, 2022 Americas EMEA APJ Total Software and Products Revenue $ 215,264 $ 103,749 $ 37,474 $ 356,487 Customer Support Revenue 202,867 104,524 39,724 347,115 Other Services Revenue 39,764 19,068 7,157 65,989 Total Revenue $ 457,895 $ 227,341 $ 84,355 $ 769,591 Year Ended March 31, 2021 Americas EMEA APJ Total Software and Products Revenue $ 187,027 $ 101,673 $ 38,143 $ 326,843 Customer Support Revenue 215,831 100,620 41,330 357,781 Other Services Revenue 21,264 12,138 5,446 38,848 Total Revenue $ 424,122 $ 214,431 $ 84,919 $ 723,472 Year Ended March 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 141,856 $ 95,356 $ 38,096 $ 275,308 Customer Support Revenue 230,226 88,965 40,939 360,130 Other Services Revenue 18,778 10,459 6,210 35,447 Total Revenue $ 390,860 $ 194,780 $ 85,245 $ 670,885 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 and software-as-a-service 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 Deferred Revenue Opening Balance as of March 31, 2021 $ 168,985 $ 19,141 $ 7,463 $ 253,211 $ 119,231 Increase/(decrease), net 8,197 (2,085) 6,833 13,806 30,949 Ending Balance as of March 31, 2022 $ 177,182 $ 17,056 $ 14,296 $ 267,017 $ 150,180 The net increase in accounts receivable (inclusive of unbilled receivables) is a result of an increase in software and products revenue relative to the prior year. The increase in deferred revenue is primarily the result of an increase in deferred revenue associated with software-as-a-service contracts that are billed upfront and recognized ratably over the contract period. The amount of revenue recognized in the period that was included in the opening deferred revenue balance was approximately $254,100 for the year ended March 31, 2022. The vast majority of this revenue consists of customer support arrangements. The amount of revenue recognized from performance obligations satisfied in prior periods was not material. Remaining Performance Obligations In addition to the amounts included in deferred revenue as of March 31, 2022, approximately $83,500 of revenue may be recognized from remaining performance obligations, of which approximately $21,250 was related to software and products. We expect most of the software and products revenue to be recognized in the first half of fiscal 2022. The 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. |
Business Combination
Business Combination | 12 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On January 31, 2022, we completed the acquisition of TrapX Security ("TrapX"), an Israeli-based cyber deception technology company, acquiring 100% of the equity interest for a purchase price of $18,653, paid in cash. The primary reason for the business combination is to expand the security features of our software-as-a-service offerings. The technology was valued using the replacement method. The following table summarizes the purchase price allocation as of the date of acquisition: Assets acquired and liabilities assumed: Cash $ 1,759 Trade accounts receivable 700 Developed technology 3,750 Pre-acquisition tax contingencies (736) Accrued expenses (523) Deferred revenue (1,642) Total identifiable net assets acquired and liabilities assumed 3,308 Goodwill 15,345 Total purchase price $ 18,653 Actual and Unaudited Pro Forma Information We completed the acquisition for TrapX on January 31, 2022, and accordingly, TrapX's operations for the period from January 31, 2022 to March 31, 2022 are included in our Consolidated Statements of Operations. TrapX contributed revenues of approximately $535 and estimated net loss of $948 for the period from the completion of acquisition through March 31, 2022. The following unaudited pro forma results of operations have been prepared using the acquisition method of accounting to give effect to the TrapX acquisition as though it occurred on April 1, 2020. The pro forma amounts reflect certain adjustments, such as expenses related to the noncash amortization of intangible assets. The fiscal 2022 supplemental pro forma net income was adjusted to exclude $1,379 of acquisition-related costs incurred in fiscal 2022. The fiscal 2021 supplemental pro forma net loss was adjusted to include these charges. In addition to estimated operating expenses, both periods include noncash amortization expenses related to intangible assets as if the acquisition had taken place on April 1, 2020. The unaudited pro forma financial information is presented for illustrative purposes only, is based on a purchase price allocation, and is not necessarily indicative of the results of operations that would have actually been reported had the acquisition occurred on April 1, 2020, nor is it necessarily indicative of the future results of operations of the combined company. Unaudited Year Ended March 31, 2022 2021 Revenue $ 774,161 $ 729,120 Net income (loss) $ 33,104 $ (37,601) |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Goodwill represents the residual purchase price paid in a business combination after the fair value of all identified assets and liabilities have been recorded. It includes the estimated value of potential expansion with new customers, the opportunity to further develop sales relationships with new customers and intangible assets that do not qualify for separate recognition. Goodwill is not amortized. None of the goodwill recorded is expected to be deductible for income tax purposes. There were no impairments to the carrying amount of goodwill during either fiscal year ended March 31, 2022 or 2021. Goodwill balances are as follows: 2022 2021 Opening balance $ 112,435 $ 112,435 Additions 15,345 — Ending balance $ 127,780 $ 112,435 Intangible assets, net Intangible assets are recorded at cost and amortized over their estimated useful lives. March 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Remaining Useful Life (in months) Developed technology $ 3,750 $ (208) $ 3,542 34 March 31, 2021 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 $ 52,000 $ (11,300) $ (40,700) $ — Amortization expense from acquired intangible assets was $208 for the fiscal year ended March 31, 2022 and $5,650 for the fiscal year ended 2021. 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 year ended March 31, 2021. 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. Estimated future amortization expense of intangible assets with finite lives as of March 31, 2022 is as follows: Year ending March 31, 2023 $ 1,250 2024 1,250 2025 1,042 Total $ 3,542 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: March 31, 2022 2021 Land $ 9,445 $ 9,445 Buildings 103,244 103,244 Computers, servers and other equipment 45,557 42,117 Furniture and fixtures 15,031 14,689 Leasehold improvements 9,349 8,089 Purchased software 2,016 1,955 Construction in process 2,119 4,304 186,761 183,843 Less: Accumulated depreciation and amortization (80,248) (71,064) $ 106,513 $ 112,779 We recorded depreciation and amortization expense of $10,708, $10,228, and $11,415 for the years ended 2022, 2021 and 2020, respectively. Approximately $1,250 of depreciation expense is allocated to our cost of goods sold for the years ended 2022, 2021 and 2020. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: March 31, 2022 2021 Compensation and related payroll taxes $ 73,409 $ 69,890 Other 48,428 42,258 $ 121,837 $ 112,148 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments We, in the normal course of business, enter into various purchase commitments for goods or services. Total non-cancellable purchase commitments as of March 31, 2022, which relate primarily to marketing and IT services are as follows: 2023 2024 2025 2025 and beyond Total Purchase commitments $ 19,693 $ 4,969 $ 7,976 $ 215 $ 32,853 We have certain software royalty commitments associated with the shipment and licensing of certain products. Royalty expense is generally based on a fixed cost per unit shipped or a fixed fee for unlimited units shipped over a designated period. Royalty expense, included in Cost of software and products revenues, was as follows: Year Ended March 31, 2022 2021 2020 Royalty expense $ 11,188 $ 16,256 $ 12,545 Warranties and Indemnifications We typically offer a 90-day limited product warranty for our software. To date, costs related to this product warranty have not been significant. We provide certain provisions within our software licensing agreements to indemnify our customers from any claim, suit or proceeding arising from alleged or actual intellectual property infringement. These provisions continue in perpetuity, along with our software licensing agreements. We have never incurred a liability relating to one of these indemnification provisions, and management believes that the likelihood of any future payout relating to these provisions is remote. Therefore, we have not recorded a liability during any period for these indemnification provisions. Legal Proceedings During fiscal 2022, we entered into settlement agreements resulting in a $7,900 gain which resolved certain legal matters. The settlement amounts are recorded in General and administrative expenses net against related legal expenses. 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 | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Capitalization | Capitalization Common Stock We have 44,511 and 46,482 shares of common stock, par value $0.01, outstanding at March 31, 2022 and March 31, 2021, respectively. During fiscal 2022, we repurchased $305,239 of common stock, or approximately 4,307 shares, under our share repurchase program. This program commenced in January 2021 and ended on March 31, 2022. Our share repurchase program has been funded by our existing cash and cash equivalent balances as well as cash flows provided by our operations. Subsequent Event On April 21, 2022 the Board of Directors approved a new share repurchase program of $250,000. The Board's authorization has no expiration date. Shares Reserved for Issuance At March 31, 2022, we have reserved 5,354 shares in connection with our Stock Plans discussed in Note 10 of the notes to the consolidated financial statements. |
Stock Plans
Stock Plans | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans We maintain the Omnibus Incentive Plan (the “2016 Incentive Plan”) for granting awards to employees. On August 19, 2021, our shareholders approved an amendment to the 2016 Incentive Plan to increase the maximum number of shares of common stock that may be delivered under plan to 10,050, an increase of 2,000 shares. The 2016 Incentive Plan authorizes a broad range of awards including stock options, stock appreciation rights, full value awards (including restricted stock, restricted stock units, performance shares or units and other stock-based awards) and cash-based awards. As of March 31, 2022, approximately 2,090 shares were available for future issuance under the 2016 Incentive Plan. As of March 31, 2022, we have granted non-qualified stock options, restricted stock units and performance stock awards under our stock incentive plans. Historically, most equity awards granted by us under our stock incentive plans generally vest quarterly over a three-year period, except that the shares that would otherwise vest quarterly over the first twelve months do not vest until the first anniversary of the grant. We anticipate that future grants under our stock incentive plans will be restricted stock units and performance stock awards and do not anticipate that we will grant stock options. As of March 31, 2022, there was approximately $146,077 of unrecognized stock-based compensation expense related to all of our employee stock plans that is expected to be recognized over a weighted-average period of 1.74 years. To the extent the actual forfeiture rate is different from what we have anticipated, stock-based compensation related to these awards will be different from our expectations. Restricted stock unit activity is as follows: Non-Vested Restricted Stock Units Number Weighted- Non-vested as of March 31, 2021 3,451 $ 44.90 Granted 1,958 69.77 Vested (1,743) 45.90 Forfeited (356) 52.93 Non-vested as of March 31, 2022 3,310 $ 58.16 The total fair value of the restricted stock units that vested during the years ended March 31, 2022, 2021 and 2020 was $122,259, $72,544 and $48,221, respectively. The following summarizes the activity for our stock incentive plans from March 31, 2021 to March 31, 2022: Options Number of Weighted- Weighted- Aggregate Outstanding at March 31, 2021 1,357 $ 62.06 Options granted — — Options exercised (406) 46.56 Options forfeited — — Options expired (34) 86.25 Outstanding at March 31, 2022 917 $ 68.03 1.46 $ 7,070 Exercisable at March 31, 2022 917 $ 68.03 1.46 $ 7,070 The total intrinsic value of options exercised was $12,704, $4,306, and $13,428 in the years ended March 31, 2022, 2021 and 2020, respectively. Our policy is to issue new shares upon exercise of options as we do not hold shares in treasury. 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 years ended March 31, 2022, 2021 and 2020. Year Ended March 31, 2022 2021 2020 Cost of services revenue $ 4,474 $ 3,317 $ 2,604 Sales and marketing 37,431 35,577 31,779 Research and development 33,870 24,823 14,594 General and administrative 27,679 18,369 15,158 Restructuring 1,709 2,747 1,753 Stock-based compensation expense $ 105,163 $ 84,833 $ 65,888 Performance Based Awards In May 2021, we granted 105 performance stock units ("PSUs") to certain executives and in June 2021, we granted an additional 14 PSUs to certain executives for a total of 119 PSUs for fiscal 2022. Vesting of these awards is contingent upon i) us meeting certain revenue and non-GAAP performance goals (performance-based) in fiscal 2022 and ii) our customary service periods. The awards vest over three years. These awards generally have potential to vest at 200% based on actual fiscal 2022 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 each financial period, management estimates the probable number of PSUs that would vest until the ultimate achievement of the performance goals is known. Based on our results, the PSUs granted in May 2021, will be eligible to vest at approximately 150% and the PSUs granted in June 2021 will be eligible to vest at 200%. The awards are included in the restricted stock unit table. There were no performance based stock units granted during fiscal 2021. Awards with a Market Condition In fiscal 2022, we granted 105 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 three years subsequent to grant date. The awards vest in three annual tranches and have a maximum potential to vest at 200% and a minimum of 0% 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 year was $87.74 per share, which approximated the market value of a share of stock at the time of grant. The awards are included in the restricted stock unit table above. In fiscal 2021, 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 three years subsequent to grant date. The awards vest in three annual tranches and have a maximum potential to vest at 200% and a minimum of 0% 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 year was $36.76 per share, which approximated the market value of a share of stock at the time of grant. 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 our 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 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 187 shares in exchange for $10,816 of proceeds in fiscal 2022 and 272 shares in exchange for $9,812 of proceeds in fiscal 2021. The Purchase Plan is considered compensatory and the fair value of the discount and look back provision are estimated using the Black-Scholes formula and recognized over the six-month withholding period prior to purchase. The total expense associated with the Purchase Plan for fiscal 2022, 2021 and 2020 was $3,341, $3,417 and $2,939, respectively. As of March 31, 2022, there was approximately $1,448 of unrecognized cost related to the current purchase period of our Purchase Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Global Intangible Low-Tax Income ("GILTI") The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act subjects a U.S. shareholder to tax on Global Intangible Low-Taxed Income ("GILTI") earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for GILTI, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI in the year the tax is incurred, and has recorded an estimate of GILTI as a component of the tax provision for the fiscal years ending March 31, 2022, 2021 and 2020. The components of income (loss) before income taxes were as follows: Year Ended March 31, 2022 2021 2020 Domestic $ 25,905 $ (28,628) $ (16,670) Foreign 17,509 7,393 4,124 $ 43,414 $ (21,235) $ (12,546) The components of income tax expense (benefit) were as follows: Year Ended March 31, 2022 2021 2020 Current: Federal $ 284 $ 3,399 $ (10,071) State 361 196 (613) Foreign 9,096 6,215 5,566 Deferred: Federal 28 (113) 284 State — — — Foreign 21 22 (2,067) $ 9,790 $ 9,719 $ (6,901) A reconciliation of the statutory tax rates and the effective tax rates for the years ended March 31, 2022, 2021 and 2020 are as follows: Year Ended March 31, 2022 2021 2020 Statutory federal income tax expense (benefit) rate 21.0 % (21.0) % (21.0) % State and local income tax expense, net of federal income tax effect 0.8 % 0.9 % (4.9) % Foreign earnings taxed at different rates 6.2 % 10.0 % 12.3 % U.S. tax on Global Intangible Low-Taxed Income 0.5 % 1.8 % 14.5 % Domestic permanent differences including acquisition items 3.6 % 1.7 % 7.7 % Foreign tax credits (5.3) % (7.8) % (19.3) % Research credits (28.3) % (68.6) % (32.9) % Tax reserves 2.6 % (0.1) % (0.6) % Valuation allowance 18.3 % 74.4 % 64.0 % Enacted tax law changes 0.3 % — % 10.6 % Stock-based compensation (1.6) % 36.3 % (43.1) % CARES Act Impact — % 15.0 % (82.1) % Reduction of NOL for carryback — % — % 59.2 % Other differences, net 4.5 % 3.2 % (19.4) % Effective income tax expense (benefit) 22.6 % 45.8 % (55.0) % The significant components of our deferred tax assets and liabilities are as follows: March 31, 2022 2021 Deferred tax assets: Net operating losses $ 12,937 $ 12,586 Equity investment 948 1,193 Stock-based compensation 15,726 16,280 Deferred revenue 19,125 14,879 Tax credits 50,587 39,062 Accrued expenses 2,148 3,568 Allowance for doubtful accounts and other reserves 493 801 Other 115 — Less: valuation allowance (90,242) (78,339) Total deferred tax assets 11,837 10,030 Deferred tax liabilities: Depreciation and amortization (3,945) (4,553) Deferred commissions and other (8,700) (6,238) Total deferred tax liabilities $ (12,645) $ (10,791) Net deferred tax liability $ (808) $ (761) Net deferred tax assets arise due to the recognition of income and expense items for tax purposes, which differ from those used for financial statement purposes. ASC 740, Income Taxes , provides for the recognition of deferred tax assets if realization of such assets is more likely than not. In assessing the need for a valuation allowance, we considered all available objective and verifiable evidence both positive and negative, including historical levels of pre-tax income (loss) both on a consolidated basis and tax reporting entity basis, legislative developments, expectations and risks associated with estimates of future pre-tax income, and prudent and feasible tax planning strategies. As a result of this analysis, we determined that it is more likely than not that we will not realize the benefits of our gross deferred tax assets and therefore have 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. At March 31, 2022 and 2021, we recorded valuation allowances of $90,242 and $78,339, respectively, representing an increase in the valuation allowance of $11,903 in 2022, due to the uncertainty regarding the realization of such deferred tax assets. Included in the March 31, 2022 valuation allowance of $90,242 was $3,894 related to purchase accounting. During fiscal 2019, the Company could no longer assert that it had the intent to indefinitely reinvest the earnings and profits of the foreign subsidiaries, with the exception of India. Accordingly, the Company was required to adjust its deferred tax liability for the effects of this change in assertion. This effect was not significant. Our position during fiscal 2022 remains unchanged. At March 31, 2022, we had federal NOL carry forwards of $33,978. There are $8,062 NOLs that will expire by 2036 and $25,915 NOLs that will not expire. As of March 31, 2022, we had deferred tax assets related to state NOL carry forwards of $1,793 which expire over various years beginning in 2031 depending on the jurisdiction. As of March 31, 2022, we had foreign NOL carry forwards of $38,391 that will not expire. We also had federal and state research tax credits ("R&D credit") carryforwards of approximately $35,140 and $18,873, respectively. The federal R&D credit carryforwards expire from 2033 through 2042, and the state R&D credit carryforwards expire from 2023 through 2037. We conduct business globally and as a result, file income tax returns in the United States and in various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. The following table summarizes the tax years subject to income tax examinations by tax authorities as of March 31, 2022. The years subject to income tax examination in our foreign jurisdictions cover the maximum time period with respect to these jurisdictions. Due to NOLs, in some cases the tax years continue to remain subject to examination with respect to such NOLs. Tax Jurisdiction Years Subject to Income U.S. Federal 2018 - Present Foreign jurisdictions 2012 - Present The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations in each of our tax jurisdictions. The number of years with open tax audits varies depending on the tax jurisdiction. A number of years may lapse before a particular matter is audited and finally resolved. A reconciliation of the amounts of unrecognized tax benefits is as follows: Balance at March 31, 2019 $ 1,592 Additions for tax positions related to fiscal 2020 170 Additions for tax positions related to prior years — Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations (100) Foreign currency translation adjustment — Balance at March 31, 2020 1,662 Additions for tax positions related to fiscal 2021 614 Additions for tax positions related to prior years — Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations (65) Foreign currency translation adjustment — Balance at March 31, 2021 2,211 Additions for tax positions related to fiscal 2022 2,808 Additions for tax positions related to prior years 90 Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations (117) Additions for tax positions related to purchase accounting 4,232 Foreign currency translation adjustment — Balance at March 31, 2022 $ 9,224 We estimate that no significant remaining unrecognized tax benefits will be realized during the fiscal year ending March 31, 2023. Interest income, expense and penalties related to unrecognized tax benefits are recorded in Income tax expense in the Consolidated Statements of Operations. In the year ended March 31, 2022, we recognized interest income of $8 related to the release of reserves. In the years ended March 31, 2021 and 2020, we recognized expense of $9 and $6, respectively, related to interest and penalties. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanWe have a defined contribution plan, as allowed under Section 401(k) of the Internal Revenue Code, covering substantially all employees. Effective January 1, 2012, we make contributions equal to a discretionary percentage of the employee’s contributions determined by us. During the years ended March 31, 2022, 2021 and 2020, we made contributions of $2,923, $2,445, and $2,487, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationWe operate in one segment. Our products and services are sold throughout the world, through direct and indirect sales channels. Our chief operating decision maker (the “CODM”) is the Chief Executive Officer. The CODM makes operating performance assessment and resource allocation decisions on a global basis. The CODM does not receive discrete financial information about asset allocation, expense allocation or profitability by product or geography. Revenues by geography are based upon the billing address of the customer. All transfers between geographic regions have been eliminated from consolidated revenues. The following table sets forth revenue and long-lived assets by geographic area: Year Ended March 31, 2022 2021 2020 Revenue: United States $ 398,632 $ 379,106 $ 342,660 Other 370,959 344,366 328,225 $ 769,591 $ 723,472 $ 670,885 No individual country other than the United States accounts for 10% or more of revenues in the years ended March 31, 2022, 2021 and 2020. Revenue included in the “Other” caption above primarily relates to our operations in Europe, Australia, Canada and Asia. March 31, 2022 2021 Long-lived assets: United States $ 275,546 $ 248,386 Other 56,453 48,187 $ 331,999 $ 296,573 |
Restructuring
Restructuring | 12 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Our restructuring plans are aimed to increase efficiency in our sales, marketing and distribution functions as well as reduce costs across all functional areas. In the fourth quarter of fiscal 2022, we initiated a restructuring plan to combine the management of our EMEA and APJ field organizations. 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 years ended March 31, 2022, 2021 and 2020, restructuring charges were comprised of the following: Year Ended March 31, 2022 2021 2020 Employee severance and related costs $ 4,483 $ 19,040 $ 16,834 Lease impairments related costs (1) — 1,684 2,761 Stock-based compensation 1,709 2,747 1,753 Total restructuring charges $ 6,192 $ 23,471 $ 21,348 (1) There were no lease impairment charges for the year ended March 31, 2022. Lease impairment charges relate to seven and six offices for the years ended March 31, 2021 and 2020, respectively. Restructuring accrual The activity in our restructuring accrual for the years ended March 31, 2022 and 2021 is as follows: Year Ended March 31, 2022 2021 Beginning balance $ 3,095 $ 2,531 Employee severance and related costs 4,483 19,040 Payments (5,317) (18,476) Ending balance $ 2,261 $ 3,095 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We determine if an arrangement contains a lease at inception. We generally lease our facilities under operating leases. Operating lease right-of-use ("ROU") assets are included in Operating lease assets on our Consolidated Balance Sheets. Current portion of operating lease liabilities and Long-term operating lease liabilities are included on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. We recognize 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, we recognize the related operating lease cost on a straight-line basis over the lease term. In addition, certain of our 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. Our lease liabilities relate primarily to operating leases for our global office infrastructure. These operating leases expire at various dates through fiscal 2031. We did not have any material finance leases for either the years ended March 31, 2022 or 2021. Net lease cost recognized in our Consolidated Statements of Operations is summarized as follows: Year Ended March 31, 2022 2021 2020 Operating lease cost $ 7,129 $ 9,048 $ 8,795 Short-term lease cost 123 232 410 Variable lease cost 1,608 1,938 2,088 Net lease cost $ 8,860 $ 11,218 $ 11,293 Cash flow information Year Ended March 31, 2022 2021 2020 Cash paid for operating lease liabilities $ 8,277 $ 10,370 $ 9,476 Additions of operating lease assets (non-cash) $ 1,827 $ 17,603 $ 8,448 As of March 31, 2022, the minimum lease commitment amount for operating leases signed but not yet commenced was immaterial. As of March 31, 2022, 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: 2023 $ 4,745 2024 4,226 2025 3,904 2026 2,080 2027 568 Thereafter 1,846 Total minimum lease payments $ 17,369 Less: Imputed interest 1,321 Present value of operating lease liabilities $ 16,048 Less: Current portion of operating lease liabilities 4,778 Long-term operating lease liabilities $ 11,270 Lease term and Discount rate Year Ended March 31, 2022 2021 Weighted-average remaining term (in years) 4.18 4.43 Weighted-average discount rate 4 % 4 % |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On December 13, 2021, we entered into a five-year $100,000 senior secured revolving credit facility (the “Credit Facility”) with J.P. Morgan. The Credit Facility is available for share repurchases, general corporate purposes, and letters of credit. The Credit Facility contains financial maintenance covenants including a leverage ratio and interest coverage ratio. The Credit Facility also contains certain customary events of default which would permit the lender to, among other things, declare all loans then outstanding to be immediately due and payable if such default is not cured within applicable grace periods. The Credit Facility also limits our ability to incur certain additional indebtedness, create or permit liens on assets, make acquisitions, make investments, loans or advances, sell or transfer assets, pay dividends or distributions, and engage in certain transactions with foreign affiliates. Outstanding borrowings under the Credit Facility accrue interest at an annual rate equal to Secured Overnight Financing Rate plus 1.25% subject to increases based on our actual leverage. The unused balance on the Credit Facility is also subject to a 0.25% annual interest charge subject to increases based on our actual leverage. As of March 31, 2022, there were no borrowings under the Credit Facility and we were in compliance with all covenants. We have deferred the expense related to debt issuance costs, which are classified as Other assets, and will amortize the costs into interest expense over the term of the Credit Facility. Unamortized amounts at March 31, 2022 were $543. The amortization of debt issuance costs and interest expense incurred for the year ended March 31, 2022 was $109. There was no amortization or expense incurred for the year ended March 31, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Commvault. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles ("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 amounts of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of the 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, deferred commissions, purchased intangible assets and goodwill. Actual results could differ from those estimates. |
Revenue, Shipping and Handling Costs, Deferred Commissions Cost and Deferred Revenue | Revenue We account for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"). For a further discussion of our accounting policies related to revenue, see Note 3 of the consolidated financial statements. Shipping and Handling Costs Shipping and handling costs are included in cost of revenues for all periods presented. Deferred Commissions Cost Sales commissions, bonuses, and related payroll taxes earned by our employees are considered incremental and recoverable costs of obtaining a contract with a customer. Our typical contracts include performance obligations related to software licenses, software updates, customer support and other services, including software-as-a-service offerings. In these contracts, incremental costs of obtaining a contract are allocated to the performance obligations based on the relative estimated standalone selling prices and then recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We do not pay commissions on annual renewals of contracts for software updates and customer support for perpetual licenses. The costs allocated to software and products are expensed at the time of sale, when revenue for the functional software license or appliance is recognized. The costs allocated to software updates and customer support for perpetual licenses are amortized ratably over a period of approximately five years, the expected period of benefit of the asset capitalized. We currently estimate a period of five years is appropriate based on consideration of historical average customer life and the estimated useful life of the underlying software or appliance sold as part of the transaction. Beginning in fiscal 2022, we modified the terms of our commission plans, and as a result, the commission paid on the renewal of a term-based, or subscription software license, was not commensurate with the commission paid on the initial purchase. As a result, the cost of commissions allocated to software updates and customer support on the initial transaction are now amortized over a period of approximately five years, consistent with the accounting for these costs associated with perpetual licenses. The costs of commissions allocated to software updates and support for the renewal of term-based software licenses is limited to the contractual period of the arrangement, as we pay a commensurate renewal commission upon the next renewal of the subscription license and related updates and support. This change in commission plans also resulted in a change in the estimate of the amortization period of our existing Deferred commissions cost associated with term licenses. This change in amortization period resulted in an approximate $3,575 reduction in Sales and marketing expense, than if the change in estimate did not occur, for the year ended March 31, 2022. The costs related to professional services are amortized over the period the related professional services are provided and revenue is recognized. Amortization expense related to these costs is included in Sales and marketing expenses in the accompanying Consolidated Statements of Operations. Deferred Revenue Deferred revenues represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from the billing of annual customer support agreements, and billings for other professional services fees that have not yet been performed by us. The value of deferred revenues will increase or decrease based on the timing of invoices and recognition of 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. In the second half of fiscal 2021 we began transitioning to a software only model in which we typically sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenue and costs associated with hardware have declined from recent fiscal years. 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. We sell our 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 on our perpetual licenses. The term of our subscription arrangements is typically three years, but can range between one 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. Commvault software-as-a-service, which is branded as Metallic, allows customers to use hosted software over the contract period without taking possession of the software. Revenue related to Metallic is generally recognized ratably over the contract term 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. 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 and software-as-a-service contracts. |
Sales Tax | Sales Tax We record revenue net of sales tax. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation Restricted stock units without a market condition are measured based on the fair market values of the underlying stock on the date of grant. We recognize stock-based compensation expense using the straight-line method for all stock awards that do not include a market or performance condition. Awards that include a market or performance condition are expensed using the accelerated method. |
Software Development Costs | Software Development Costs The costs for the development of new products and substantial enhancements to existing products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized in accordance with the accounting guidance for software. Because our current process for developing software is essentially completed concurrently with the establishment of technological feasibility, which occurs upon the completion of a working model, no costs have been capitalized for any of the periods presented. |
Advertising Costs | Advertising CostsWe expense advertising costs as incurred. |
Accounting for Income Taxes | Accounting for Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes ("ASC 740"). The provision for income taxes and effective tax rates are calculated by legal entity and jurisdiction and are based on a number of factors, including the level of pre-tax earnings, income tax planning strategies, differences between tax laws and accounting rules, statutory tax rates and credits, uncertain tax positions and valuation allowances. We use significant judgment and estimates in evaluating tax positions. The effective tax rate in a given financial statement period may be materially impacted by changes in the mix and level of earnings by taxing jurisdiction. Under ASC 740, deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts. Valuation allowances are established when, in our judgment, it is more likely than not that deferred tax assets will not be realized. In assessing the need for a valuation allowance, we weigh the available positive and negative evidence, including historical levels of pre-tax income, legislative developments, expectations and risks associated with estimates of future pre-tax income, and prudent and feasible tax planning strategies. |
Foreign Currency Translation | Foreign Currency Translation The functional currencies of our foreign operations are deemed to be the local country’s currency. Assets and liabilities of our international subsidiaries are translated at their respective period-end exchange rates, and revenues and expenses are translated at average currency exchange rates for the period. The resulting balance sheet translation adjustments are included in Other comprehensive income (loss) and are reflected as a separate component of Stockholders’ equity. |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options, vesting of restricted stock units and shares to be purchased under the Employee Stock Purchase Plan. The dilutive effect of such potential common shares is reflected in diluted earnings per share by application of the treasury stock method. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashWe consider all highly liquid investments purchased with maturities of three months or less at the date of purchase to be cash equivalents, primarily in the form of money market funds. |
Trade and Other Receivables | Trade and Other ReceivablesTrade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts, which is not material. Unbilled receivables represent amounts for which revenue has been recognized but which have not yet been invoiced to the customer. The current portion of unbilled receivables is included in Trade accounts receivable on the Consolidated Balance Sheets. Long-term unbilled receivables are included in Other assets. |
Concentration of Credit Risk | 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 been minimal. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of our cash, cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values due to the short-term maturity of these instruments. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for such asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, we use the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs other than Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 — Unobservable inputs that are supported by little or no market activity and that require the reporting entity to develop its own assumptions. |
Equity Securities Accounted for at Net Asset Value | Equity Securities Accounted for at Net Asset Value We held equity interests in private equity funds of $4,237 as of March 31, 2022, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement . These investments are included in Other assets in the accompanying Consolidated Balance Sheets. The net asset values of these investments are determined using quarterly capital statements from the funds, which are based on our contributions to the funds, allocation of profit and loss and changes in fair value of the underlying fund investments. Changes in fair value as reported on the capital statements are recorded through profit and loss as non-operating income or expense. These private equity funds focus on making investments in key technology sectors, principally by investing in companies at expansion capital and growth equity stages. We have total unfunded commitments in private equity funds of $6,889 as of March 31, 2022. We did not own interests in any of these funds prior to fiscal year 2022. |
Leases | LeasesWe account for leases in accordance with ASC 842, Leases. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. We provide for depreciation on a straight-line basis over the estimated useful lives of the assets. The depreciable assets that comprise our owned headquarters are classified as Buildings and are being depreciated over lives ranging from ten three |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The carrying value of goodwill is tested for impairment on an annual basis on January 1, or more often if an event occurs or circumstances change that would more likely than not reduce the fair value of its carrying amount. For the purpose of impairment testing, we have a single reporting unit. The impairment test consists of comparing the fair value of the reporting unit with its carrying amount that includes goodwill. If the carrying amount of the reporting unit exceeds the fair value of the reporting unit, an impairment loss would be recognized to reduce the carrying amount to its fair value. |
Long-Lived Assets | Long-Lived AssetsWe review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of our long-lived assets, we evaluate the estimated future undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the long-lived asset. If the estimated future undiscounted cash flows demonstrate that recoverability is not probable, an impairment loss would be recognized. An impairment loss would be calculated based on the excess carrying amount of the long-lived asset over the long-lived asset’s fair value. The fair value would be determined based on valuation techniques such as a comparison to fair values of similar assets. |
Share Repurchases | Share RepurchasesWe consider all shares repurchased as canceled shares restored to the status of authorized but unissued shares on the trade date. The aggregate purchase price of the shares of our common stock repurchased is reflected as a reduction to Stockholders’ equity. We account for shares repurchased as an adjustment to common stock (at par value) with the excess repurchase price allocated between Additional paid-in capital and Accumulated deficit. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined to include all changes in equity, except those resulting from investments by stockholders and distribution to stockholders. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards 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. We adopted this standard as of April 1, 2021. The standard did not have a significant impact on our financial statements. ASU No. 2021-08 (Topic 805), Business Combinations In October 2021, the FASB issued a new standard to improve the accounting for acquired revenue We elected to early adopt effective January 1, 2022. The standard did not have a significant impact in our consolidated financial statements, including accounting policies, processes and systems. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the reconciliation of basic and diluted common share: Year Ended March 31, 2022 2021 2020 Net income (loss) $ 33,624 $ (30,954) $ (5,645) Basic net income (loss) per common share: Basic weighted average shares outstanding 45,443 46,652 45,793 Basic net income per common share $ 0.74 $ (0.66) $ (0.12) Diluted net income (loss) per common share: Basic weighted-average shares outstanding 45,443 46,652 45,793 Dilutive effect of stock options, restricted stock units, and employee stock purchase plan (1) 1,777 — — Diluted weighted-average shares outstanding 47,220 46,652 45,793 (1) The fiscal 2021 and 2020 shares have been excluded from the diluted weighted-average shares outstanding calculation as we were in a net loss position; therefore, these shares would have been anti-dilutive. |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes our potential outstanding common stock equivalents at the end of each period, which have been excluded from the computation of diluted net income (loss) per common share, as their effect is anti-dilutive. Year Ended March 31, 2022 2021 2020 Stock options, restricted stock units, and shares under the employee stock purchase plan 505 5,024 4,933 |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards 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. We adopted this standard as of April 1, 2021. The standard did not have a significant impact on our financial statements. ASU No. 2021-08 (Topic 805), Business Combinations In October 2021, the FASB issued a new standard to improve the accounting for acquired revenue We elected to early adopt effective January 1, 2022. The standard did not have a significant impact in our consolidated financial statements, including accounting policies, processes and systems. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
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 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 | Year Ended March 31, 2022 Americas EMEA APJ Total Software and Products Revenue $ 215,264 $ 103,749 $ 37,474 $ 356,487 Customer Support Revenue 202,867 104,524 39,724 347,115 Other Services Revenue 39,764 19,068 7,157 65,989 Total Revenue $ 457,895 $ 227,341 $ 84,355 $ 769,591 Year Ended March 31, 2021 Americas EMEA APJ Total Software and Products Revenue $ 187,027 $ 101,673 $ 38,143 $ 326,843 Customer Support Revenue 215,831 100,620 41,330 357,781 Other Services Revenue 21,264 12,138 5,446 38,848 Total Revenue $ 424,122 $ 214,431 $ 84,919 $ 723,472 Year Ended March 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 141,856 $ 95,356 $ 38,096 $ 275,308 Customer Support Revenue 230,226 88,965 40,939 360,130 Other Services Revenue 18,778 10,459 6,210 35,447 Total Revenue $ 390,860 $ 194,780 $ 85,245 $ 670,885 |
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 Deferred Revenue Opening Balance as of March 31, 2021 $ 168,985 $ 19,141 $ 7,463 $ 253,211 $ 119,231 Increase/(decrease), net 8,197 (2,085) 6,833 13,806 30,949 Ending Balance as of March 31, 2022 $ 177,182 $ 17,056 $ 14,296 $ 267,017 $ 150,180 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of the Purchase Price Allocation as of the Date of Acquisition | The following table summarizes the purchase price allocation as of the date of acquisition: Assets acquired and liabilities assumed: Cash $ 1,759 Trade accounts receivable 700 Developed technology 3,750 Pre-acquisition tax contingencies (736) Accrued expenses (523) Deferred revenue (1,642) Total identifiable net assets acquired and liabilities assumed 3,308 Goodwill 15,345 Total purchase price $ 18,653 |
Summary of Unaudited Pro Forma Financial Information | The unaudited pro forma financial information is presented for illustrative purposes only, is based on a purchase price allocation, and is not necessarily indicative of the results of operations that would have actually been reported had the acquisition occurred on April 1, 2020, nor is it necessarily indicative of the future results of operations of the combined company. Unaudited Year Ended March 31, 2022 2021 Revenue $ 774,161 $ 729,120 Net income (loss) $ 33,104 $ (37,601) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill balances are as follows: 2022 2021 Opening balance $ 112,435 $ 112,435 Additions 15,345 — Ending balance $ 127,780 $ 112,435 |
Purchased Intangible Assets, Net of Amortization | Intangible assets are recorded at cost and amortized over their estimated useful lives. March 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Remaining Useful Life (in months) Developed technology $ 3,750 $ (208) $ 3,542 34 March 31, 2021 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 $ 52,000 $ (11,300) $ (40,700) $ — |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense of intangible assets with finite lives as of March 31, 2022 is as follows: Year ending March 31, 2023 $ 1,250 2024 1,250 2025 1,042 Total $ 3,542 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: March 31, 2022 2021 Land $ 9,445 $ 9,445 Buildings 103,244 103,244 Computers, servers and other equipment 45,557 42,117 Furniture and fixtures 15,031 14,689 Leasehold improvements 9,349 8,089 Purchased software 2,016 1,955 Construction in process 2,119 4,304 186,761 183,843 Less: Accumulated depreciation and amortization (80,248) (71,064) $ 106,513 $ 112,779 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of the following: March 31, 2022 2021 Compensation and related payroll taxes $ 73,409 $ 69,890 Other 48,428 42,258 $ 121,837 $ 112,148 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Total non-cancellable purchase commitments as of March 31, 2022, which relate primarily to marketing and IT services are as follows: 2023 2024 2025 2025 and beyond Total Purchase commitments $ 19,693 $ 4,969 $ 7,976 $ 215 $ 32,853 |
Schedule of Royalty Expense | Royalty expense, included in Cost of software and products revenues, was as follows: Year Ended March 31, 2022 2021 2020 Royalty expense $ 11,188 $ 16,256 $ 12,545 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity is as follows: Non-Vested Restricted Stock Units Number Weighted- Non-vested as of March 31, 2021 3,451 $ 44.90 Granted 1,958 69.77 Vested (1,743) 45.90 Forfeited (356) 52.93 Non-vested as of March 31, 2022 3,310 $ 58.16 |
Schedule of Stock Option Activity | The following summarizes the activity for our stock incentive plans from March 31, 2021 to March 31, 2022: Options Number of Weighted- Weighted- Aggregate Outstanding at March 31, 2021 1,357 $ 62.06 Options granted — — Options exercised (406) 46.56 Options forfeited — — Options expired (34) 86.25 Outstanding at March 31, 2022 917 $ 68.03 1.46 $ 7,070 Exercisable at March 31, 2022 917 $ 68.03 1.46 $ 7,070 |
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 years ended March 31, 2022, 2021 and 2020. Year Ended March 31, 2022 2021 2020 Cost of services revenue $ 4,474 $ 3,317 $ 2,604 Sales and marketing 37,431 35,577 31,779 Research and development 33,870 24,823 14,594 General and administrative 27,679 18,369 15,158 Restructuring 1,709 2,747 1,753 Stock-based compensation expense $ 105,163 $ 84,833 $ 65,888 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes were as follows: Year Ended March 31, 2022 2021 2020 Domestic $ 25,905 $ (28,628) $ (16,670) Foreign 17,509 7,393 4,124 $ 43,414 $ (21,235) $ (12,546) |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows: Year Ended March 31, 2022 2021 2020 Current: Federal $ 284 $ 3,399 $ (10,071) State 361 196 (613) Foreign 9,096 6,215 5,566 Deferred: Federal 28 (113) 284 State — — — Foreign 21 22 (2,067) $ 9,790 $ 9,719 $ (6,901) |
Reconciliation of Statutory Tax Rates and Effective Tax Rates | A reconciliation of the statutory tax rates and the effective tax rates for the years ended March 31, 2022, 2021 and 2020 are as follows: Year Ended March 31, 2022 2021 2020 Statutory federal income tax expense (benefit) rate 21.0 % (21.0) % (21.0) % State and local income tax expense, net of federal income tax effect 0.8 % 0.9 % (4.9) % Foreign earnings taxed at different rates 6.2 % 10.0 % 12.3 % U.S. tax on Global Intangible Low-Taxed Income 0.5 % 1.8 % 14.5 % Domestic permanent differences including acquisition items 3.6 % 1.7 % 7.7 % Foreign tax credits (5.3) % (7.8) % (19.3) % Research credits (28.3) % (68.6) % (32.9) % Tax reserves 2.6 % (0.1) % (0.6) % Valuation allowance 18.3 % 74.4 % 64.0 % Enacted tax law changes 0.3 % — % 10.6 % Stock-based compensation (1.6) % 36.3 % (43.1) % CARES Act Impact — % 15.0 % (82.1) % Reduction of NOL for carryback — % — % 59.2 % Other differences, net 4.5 % 3.2 % (19.4) % Effective income tax expense (benefit) 22.6 % 45.8 % (55.0) % |
Components of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets and liabilities are as follows: March 31, 2022 2021 Deferred tax assets: Net operating losses $ 12,937 $ 12,586 Equity investment 948 1,193 Stock-based compensation 15,726 16,280 Deferred revenue 19,125 14,879 Tax credits 50,587 39,062 Accrued expenses 2,148 3,568 Allowance for doubtful accounts and other reserves 493 801 Other 115 — Less: valuation allowance (90,242) (78,339) Total deferred tax assets 11,837 10,030 Deferred tax liabilities: Depreciation and amortization (3,945) (4,553) Deferred commissions and other (8,700) (6,238) Total deferred tax liabilities $ (12,645) $ (10,791) Net deferred tax liability $ (808) $ (761) |
Schedule of Tax Years Subject to Income Tax Examination | The following table summarizes the tax years subject to income tax examinations by tax authorities as of March 31, 2022. The years subject to income tax examination in our foreign jurisdictions cover the maximum time period with respect to these jurisdictions. Due to NOLs, in some cases the tax years continue to remain subject to examination with respect to such NOLs. Tax Jurisdiction Years Subject to Income U.S. Federal 2018 - Present Foreign jurisdictions 2012 - Present |
Reconciliation of Amounts of Unrecognized Tax Benefits | A reconciliation of the amounts of unrecognized tax benefits is as follows: Balance at March 31, 2019 $ 1,592 Additions for tax positions related to fiscal 2020 170 Additions for tax positions related to prior years — Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations (100) Foreign currency translation adjustment — Balance at March 31, 2020 1,662 Additions for tax positions related to fiscal 2021 614 Additions for tax positions related to prior years — Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations (65) Foreign currency translation adjustment — Balance at March 31, 2021 2,211 Additions for tax positions related to fiscal 2022 2,808 Additions for tax positions related to prior years 90 Settlements and effective settlements with tax authorities and remeasurements — Reductions related to the expiration of statutes of limitations (117) Additions for tax positions related to purchase accounting 4,232 Foreign currency translation adjustment — Balance at March 31, 2022 $ 9,224 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table sets forth revenue and long-lived assets by geographic area: Year Ended March 31, 2022 2021 2020 Revenue: United States $ 398,632 $ 379,106 $ 342,660 Other 370,959 344,366 328,225 $ 769,591 $ 723,472 $ 670,885 |
Schedule of Long-Lived Assets by Geographic Area | March 31, 2022 2021 Long-lived assets: United States $ 275,546 $ 248,386 Other 56,453 48,187 $ 331,999 $ 296,573 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accruals | For the years ended March 31, 2022, 2021 and 2020, restructuring charges were comprised of the following: Year Ended March 31, 2022 2021 2020 Employee severance and related costs $ 4,483 $ 19,040 $ 16,834 Lease impairments related costs (1) — 1,684 2,761 Stock-based compensation 1,709 2,747 1,753 Total restructuring charges $ 6,192 $ 23,471 $ 21,348 |
Schedule of Activity in Restructuring Accrual | The activity in our restructuring accrual for the years ended March 31, 2022 and 2021 is as follows: Year Ended March 31, 2022 2021 Beginning balance $ 3,095 $ 2,531 Employee severance and related costs 4,483 19,040 Payments (5,317) (18,476) Ending balance $ 2,261 $ 3,095 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Net Lease Cost Recognized on Condensed Consolidated Statement of Operations and Cash Flow Information | Net lease cost recognized in our Consolidated Statements of Operations is summarized as follows: Year Ended March 31, 2022 2021 2020 Operating lease cost $ 7,129 $ 9,048 $ 8,795 Short-term lease cost 123 232 410 Variable lease cost 1,608 1,938 2,088 Net lease cost $ 8,860 $ 11,218 $ 11,293 Cash flow information Year Ended March 31, 2022 2021 2020 Cash paid for operating lease liabilities $ 8,277 $ 10,370 $ 9,476 Additions of operating lease assets (non-cash) $ 1,827 $ 17,603 $ 8,448 |
Maturities of Lease Liabilities | As of March 31, 2022, 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: 2023 $ 4,745 2024 4,226 2025 3,904 2026 2,080 2027 568 Thereafter 1,846 Total minimum lease payments $ 17,369 Less: Imputed interest 1,321 Present value of operating lease liabilities $ 16,048 Less: Current portion of operating lease liabilities 4,778 Long-term operating lease liabilities $ 11,270 |
Schedule of Lease Term and Discount Rate | Year Ended March 31, 2022 2021 Weighted-average remaining term (in years) 4.18 4.43 Weighted-average discount rate 4 % 4 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Advertising expenses | $ 9,572 | $ 9,560 | $ 5,579 |
Net foreign currency transaction gains (losses) | (1,918) | 355 | |
Allowance for doubtful accounts | 705 | 483 | |
Equity securities | 4,237 | ||
Unfunded commitments | $ 6,889 | ||
Software updates and customer support costs amortization period | 5 years | ||
Reduction in Sales and marketing expense | $ (341,644) | $ (331,948) | $ (335,785) |
Commission Plans Modification | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Reduction in Sales and marketing expense | $ 3,575 | ||
Developed technology | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Acquired finite-lived intangible assets, useful life (in years) | 3 years | ||
Minimum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 10 years | ||
Minimum | Computers, servers and other equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 18 months | ||
Minimum | Furniture and fixtures | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 3 years | ||
Maximum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 60 years | ||
Maximum | Computers, servers and other equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 3 years | ||
Maximum | Furniture and fixtures | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, depreciation period (in years) | 12 years | ||
Customer concentration risk | Arrow | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 37.00% | 36.00% | 37.00% |
Customer concentration risk | Arrow | Accounts receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration percentage | 30.00% | 33.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |||
Net income (loss) | $ 33,624 | $ (30,954) | $ (5,645) |
Basic net income per common share (in dollars per share) | $ 0.74 | $ (0.66) | $ (0.12) |
Basic weighted-average shares outstanding | 45,443 | 46,652 | 45,793 |
Dilutive effect of stock options, restricted stock units, and employee stock purchase plan | 1,777 | 0 | 0 |
Diluted weighted-average shares outstanding | 47,220 | 46,652 | 45,793 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Potential Outstanding Common Stock Equivalents (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | |||
Stock options, restricted stock units, and shares under the employee stock purchase plan | 505 | 5,024 | 4,933 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2022USD ($)sourcesegment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Sources of primary revenue | source | 2 |
Customer support agreement term | 1 year |
Subscription arrangement term | 3 years |
Number of operating segments | segment | 1 |
Revenue recognized in period, included in opening deferred revenue balance | $ 254,100 |
Revenue expected to be recognized from remaining performance obligations | $ 83,500 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Subscription arrangement term | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Subscription arrangement term | 5 years |
Software and products | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 21,250 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) | 12 Months Ended |
Mar. 31, 2022 | |
Software Licenses | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Other Professional Services (except for education services) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
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 | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 769,591 | $ 723,472 | $ 670,885 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 457,895 | 424,122 | 390,860 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 227,341 | 214,431 | 194,780 |
APJ | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 84,355 | 84,919 | 85,245 |
Software and products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 356,487 | 326,843 | 275,308 |
Software and products | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 215,264 | 187,027 | 141,856 |
Software and products | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 103,749 | 101,673 | 95,356 |
Software and products | APJ | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 37,474 | 38,143 | 38,096 |
Customer Support Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 347,115 | 357,781 | 360,130 |
Customer Support Revenue | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 202,867 | 215,831 | 230,226 |
Customer Support Revenue | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 104,524 | 100,620 | 88,965 |
Customer Support Revenue | APJ | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 39,724 | 41,330 | 40,939 |
Other Services Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 65,989 | 38,848 | 35,447 |
Other Services Revenue | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 39,764 | 21,264 | 18,778 |
Other Services Revenue | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 19,068 | 12,138 | 10,459 |
Other Services Revenue | APJ | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 7,157 | $ 5,446 | $ 6,210 |
Revenue - Opening and Closing B
Revenue - Opening and Closing Balances (Receivables) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2022USD ($) | |
Trade accounts receivable | |
Accounts Receivable [Roll Forward] | |
Opening Balance | $ 168,985 |
Increase/(decrease), net | 8,197 |
Ending Balance | 177,182 |
Unbilled Receivable (current) [Roll Forward] | |
Opening Balance | 19,141 |
Increase/(decrease), net | (2,085) |
Ending Balance | 17,056 |
Other assets | |
Unbilled Receivable (long-term) [Roll Forward] | |
Opening Balance | 7,463 |
Increase/(decrease), net | 6,833 |
Ending Balance | $ 14,296 |
Revenue - Opening and Closing_2
Revenue - Opening and Closing Balances (Deferred Revenue) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2022USD ($) | |
Contract With Customer, Liability, Current [Roll Forward] | |
Opening Balance | $ 253,211 |
Ending Balance | 267,017 |
Contract With Customer, Liability, Noncurrent [Roll Forward] | |
Opening Balance | 119,231 |
Ending Balance | 150,180 |
Deferred revenue | |
Contract With Customer, Liability, Current [Roll Forward] | |
Opening Balance | 253,211 |
Increase/(decrease), net | 13,806 |
Ending Balance | 267,017 |
Deferred revenue, less current portion | |
Contract With Customer, Liability, Noncurrent [Roll Forward] | |
Opening Balance | 119,231 |
Increase/(decrease), net | 30,949 |
Ending Balance | $ 150,180 |
Business Combination - Addition
Business Combination - Additional Information (Details) - TrapX Security - USD ($) $ in Thousands | Jan. 31, 2022 | Mar. 31, 2022 |
Business Acquisition [Line Items] | ||
Percentage of equity interests acquired | 100.00% | |
Cash paid | $ 18,653 | |
Revenue of acquiree since acquisition date | $ 535 | |
Estimated net loss | 948 | |
Acquisition related costs | $ 1,379 |
Business Combination - Summariz
Business Combination - Summarizes Purchase Price and Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jan. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 127,780 | $ 112,435 | $ 112,435 | |
TrapX Security | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1,759 | |||
Trade accounts receivable | 700 | |||
Developed technology | 3,750 | |||
Pre-acquisition tax contingencies | (736) | |||
Accrued expenses | (523) | |||
Deferred revenue | (1,642) | |||
Total identifiable net assets acquired and liabilities assumed | 3,308 | |||
Goodwill | 15,345 | |||
Total purchase price | $ 18,653 |
Business Combination - Actual a
Business Combination - Actual and Unaudited Pro Forma Information (Details) - TrapX Security - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenue | $ 774,161 | $ 729,120 |
Net income (loss) | $ 33,104 | $ (37,601) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill expected tax deductible amount | $ 0 | ||
Goodwill impairment | 0 | ||
Amortization expenses | 208,000 | $ 5,650,000 | |
Impairment of intangible assets | $ 0 | $ 40,700,000 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill [Roll Forward] | ||
Opening balance | $ 112,435 | $ 112,435 |
Additions | 15,345 | 0 |
Ending balance | $ 127,780 | $ 112,435 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 52,000 | ||
Accumulated Amortization | (11,300) | ||
Impairment Charge | $ 0 | (40,700) | $ 0 |
Net Carrying Value | 3,542 | 0 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,750 | 49,000 | |
Accumulated Amortization | (208) | (9,800) | |
Impairment Charge | (39,200) | ||
Net Carrying Value | $ 3,542 | 0 | |
Remaining Useful Life (in months) | 34 months | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,000 | ||
Accumulated Amortization | (1,500) | ||
Impairment Charge | (1,500) | ||
Net Carrying Value | $ 0 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Schedule of Estimated Future Amortization Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 1,250 | |
2024 | 1,250 | |
2025 | 1,042 | |
Total | $ 3,542 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 186,761 | $ 183,843 |
Less: Accumulated depreciation and amortization | (80,248) | (71,064) |
Property and equipment, net | 106,513 | 112,779 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,445 | 9,445 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 103,244 | 103,244 |
Computers, servers and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 45,557 | 42,117 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,031 | 14,689 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,349 | 8,089 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,016 | 1,955 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,119 | $ 4,304 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 10,708 | $ 10,228 | $ 11,415 |
Depreciation expense allocated to cost of goods sold | $ 1,250 | $ 1,250 | $ 1,250 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Payables and Accruals [Abstract] | ||
Compensation and related payroll taxes | $ 73,409 | $ 69,890 |
Other | 48,428 | 42,258 |
Total accrued liabilities | $ 121,837 | $ 112,148 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Non-cancellable purchase commitments, 2022 | $ 19,693,000 | ||
Non-cancellable purchase commitments, 2023 | 4,969,000 | ||
Non-cancellable purchase commitments, 2024 | 7,976,000 | ||
Non-cancellable purchase commitments, 2025 and beyond | 215,000 | ||
Non-cancellable purchase commitments, Total for all periods through fiscal 2023 | 32,853,000 | ||
Royalty expense | $ 11,188,000 | $ 16,256,000 | $ 12,545,000 |
Maximum software warranty period (in days) | 90 days | ||
Product warranty accrual | $ 0 | $ 0 | $ 0 |
Gain related to settlement | $ 7,900,000 |
Capitalization (Details)
Capitalization (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 21, 2022 | |
Class of Stock [Line Items] | ||||
Common stock, shares outstanding (in shares) | 44,511 | 46,482 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Amount of common stock repurchased | $ 305,239,000 | $ 95,259,000 | $ 77,198,000 | |
Number of shares repurchased (in shares) | 4,307 | |||
Capital shares reserved for future issuance (in shares) | 5,354 | |||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Share repurchase program, authorized amount available | $ 250,000,000 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands | Oct. 13, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 3 years | |||
Unrecognized stock-based compensation expense | $ 146,077 | |||
Awards expected to be recognized over a weighted average period (in years) | 1 year 8 months 26 days | |||
Total intrinsic value of options exercised | $ 12,704 | $ 4,306 | $ 13,428 | |
Total fair value of restricted stock units - vested | $ 122,259 | $ 72,544 | $ 48,221 | |
2016 Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares of common stock that may be delivered under plan (in shares) | 10,050 | |||
Addition shares authorized (in shares) | 2,000 | |||
Options available for future grant (in shares) | 2,090 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Unit Activity (Details) - Restricted stock units shares in Thousands | 12 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Awards | |
Number of Awards, Non-vested beginning balance (in shares) | shares | 3,451 |
Number of awards, granted (in shares) | shares | 1,958 |
Number of Awards, Vested (in shares) | shares | (1,743) |
Number of Awards, Forfeited (in shares) | shares | (356) |
Number of Awards, Non-vested ending balance (in shares) | shares | 3,310 |
Weighted- Average Grant Date Fair Value | |
Weighted Average grant Date Fair Value, Non-vested beginning balance (in dollars per share) | $ / shares | $ 44.90 |
Weighted Average grant Date Fair Value, Granted (in dollars per share) | $ / shares | 69.77 |
Weighted Average grant Date Fair Value, Vested (in dollars per share) | $ / shares | 45.90 |
Weighted Average grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 52.93 |
Weighted Average grant Date Fair Value, Non-vested ending balance (in dollars per share) | $ / shares | $ 58.16 |
Stock Plans - Activity for Stoc
Stock Plans - Activity for Stock Incentive Plans (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Number of Options | |
Outstanding beginning balance (in shares) | shares | 1,357 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | (406) |
Options forfeited (in shares) | shares | 0 |
Options expired (in shares) | shares | (34) |
Outstanding ending balance (in shares) | shares | 917 |
Exercisable at current period end (in shares) | shares | 917 |
Weighted- Average Exercise Price | |
Weighted-Average Exercise Price, Outstanding beginning balance (in dollars per share) | $ / shares | $ 62.06 |
Weighted-Average Exercise Price, Options granted (in dollars per share) | $ / shares | 0 |
Weighted-Average Exercise Price, Options exercised (in dollars per share) | $ / shares | 46.56 |
Weighted-Average Exercise Price, Options forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Exercise Price, Options expired (in dollars per share) | $ / shares | 86.25 |
Weighted-Average Exercise Price, Outstanding ending balance (in dollars per share) | $ / shares | 68.03 |
Weighted-Average Exercise Price, Exercisable at current period-end (in dollars per share) | $ / shares | $ 68.03 |
Weighted- Average Remaining Contractual Term (Years) | |
Weighted-Average Remaining Contractual Term, Outstanding at current period-end | 1 year 5 months 15 days |
Weighted-Average Remaining Contractual Term, Exercisable at current period-end | 1 year 5 months 15 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value, Outstanding at current period-end | $ | $ 7,070 |
Aggregate Intrinsic Value, Exercisable at current period-end | $ | $ 7,070 |
Stock Plans - Stock-Based Compe
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 105,163 | $ 84,833 | $ 65,888 |
Cost of services revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,474 | 3,317 | 2,604 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 37,431 | 35,577 | 31,779 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 33,870 | 24,823 | 14,594 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 27,679 | 18,369 | 15,158 |
Restructuring | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 1,709 | $ 2,747 | $ 1,753 |
Stock Plans - Performance Based
Stock Plans - Performance Based Awards (Details) - shares | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | May 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 3 years | |||
PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards, granted (in shares) | 14,000 | 105,000 | 119,000 | 0 |
Awards vesting period | 3 years | |||
PSU | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards potential to vest, percentage | 200.00% | |||
Performance Stock Units Granted in May 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares eligible to vest | 150.00% | |||
Performance Stock Units Granted In June 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares eligible to vest | 200.00% |
Stock Plans - Awards with a Mar
Stock Plans - Awards with a Market Condition (Details) shares in Thousands | 12 Months Ended | |
Mar. 31, 2022tranche$ / sharesshares | Mar. 31, 2021tranche$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards vesting period | 3 years | |
Market performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awarded (in shares) | shares | 105 | 299 |
Awards vesting period | 3 years | 3 years |
Number of annual tranches | tranche | 3 | 3 |
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | $ 87.74 | $ 36.76 |
Market performance shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards potential to vest, percentage | 200.00% | 200.00% |
Market performance shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards potential to vest, percentage | 0.00% | 0.00% |
Stock Plans - Employee Stock Pu
Stock Plans - Employee Stock Purchase Plan (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 105,163 | $ 84,833 | $ 65,888 |
Unrecognized stock-based compensation expense | $ 146,077 | ||
Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price as a percentage of fair market value | 85.00% | ||
Length of offering period (in months) | 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) | 187 | 272 | |
Proceeds received | $ 10,816 | $ 9,812 | |
Compensation expense | 3,341 | $ 3,417 | $ 2,939 |
Unrecognized stock-based compensation expense | $ 1,448 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance | $ 90,242,000 | $ 78,339,000 | |
Increase in valuation allowance | 11,903,000 | ||
Valuation allowance related to purchase accounting | 3,894,000 | ||
Tax Credit Carryforward [Line Items] | |||
NOL carry forwards | 33,978,000 | ||
Deferred tax asset, state NOLs | 1,793,000 | ||
Unrecognized Tax Benefits | |||
Remaining unrecognized tax benefits | 0 | ||
Interest income related to unrecognized tax benefits | 8,000 | ||
Income tax penalties and interest expense | $ 9,000 | $ 6,000 | |
Foreign | |||
Tax Credit Carryforward [Line Items] | |||
NOL carry forwards | 38,391,000 | ||
NOL Expiring Between 2036 | |||
Tax Credit Carryforward [Line Items] | |||
NOL carry forwards | 8,062,000 | ||
NOLs not expiring | |||
Tax Credit Carryforward [Line Items] | |||
NOL carry forwards | 25,915,000 | ||
Research tax credit carryforward | Federal | |||
Tax Credit Carryforward [Line Items] | |||
Research tax credit | 35,140,000 | ||
Research tax credit carryforward | State and local | |||
Tax Credit Carryforward [Line Items] | |||
Research tax credit | $ 18,873,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 25,905 | $ (28,628) | $ (16,670) |
Foreign | 17,509 | 7,393 | 4,124 |
Income (loss) before income taxes | $ 43,414 | $ (21,235) | $ (12,546) |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Current: | |||
Federal | $ 284 | $ 3,399 | $ (10,071) |
State | 361 | 196 | (613) |
Foreign | 9,096 | 6,215 | 5,566 |
Deferred: | |||
Federal | 28 | (113) | 284 |
State | 0 | 0 | 0 |
Foreign | 21 | 22 | (2,067) |
Income tax expense (benefit) | $ 9,790 | $ 9,719 | $ (6,901) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Rates and Effective Tax Rates (Details) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory federal income tax expense (benefit) rate | 21.00% | 21.00% | 21.00% |
State and local income tax expense, net of federal income tax effect | 0.80% | (0.90%) | 4.90% |
Foreign earnings taxed at different rates | 6.20% | (10.00%) | (12.30%) |
U.S. tax on Global Intangible Low-Taxed Income | 0.50% | (1.80%) | (14.50%) |
Domestic permanent differences including acquisition items | 3.60% | (1.70%) | (7.70%) |
Foreign tax credits | (5.30%) | 7.80% | 19.30% |
Research credits | (28.30%) | 68.60% | 32.90% |
Tax reserves | 2.60% | 0.10% | 0.60% |
Valuation allowance | 18.30% | (74.40%) | (64.00%) |
Enacted tax law changes | 0.30% | 0.00% | (10.60%) |
Stock-based compensation | (1.60%) | (36.30%) | 43.10% |
CARES Act Impact | 0.00% | (15.00%) | 82.10% |
Reduction of NOL for carryback | 0.00% | 0.00% | (59.20%) |
Other differences, net | 4.50% | (3.20%) | 19.40% |
Effective income tax expense (benefit) | 22.60% | (45.80%) | 55.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred tax assets: | ||
Net operating losses | $ 12,937 | $ 12,586 |
Equity investment | 948 | 1,193 |
Stock-based compensation | 15,726 | 16,280 |
Deferred revenue | 19,125 | 14,879 |
Tax credits | 50,587 | 39,062 |
Accrued expenses | 2,148 | 3,568 |
Allowance for doubtful accounts and other reserves | 493 | 801 |
Other | 115 | 0 |
Less: valuation allowance | (90,242) | (78,339) |
Total deferred tax assets | 11,837 | 10,030 |
Deferred tax liabilities: | ||
Depreciation and amortization | (3,945) | (4,553) |
Deferred commissions and other | (8,700) | (6,238) |
Total deferred tax liabilities | (12,645) | (10,791) |
Net deferred tax liability | $ (808) | $ (761) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 2,211 | $ 1,662 | $ 1,592 |
Additions for tax positions related to current fiscal period | 2,808 | 614 | 170 |
Additions for tax positions related to prior years | 90 | 0 | 0 |
Settlements and effective settlements with tax authorities and remeasurements | 0 | 0 | 0 |
Reductions related to the expiration of statutes of limitations | (117) | (65) | (100) |
Additions for tax positions related to purchase accounting | 4,232 | ||
Foreign currency translation adjustment | 0 | 0 | 0 |
Ending balance | $ 9,224 | $ 2,211 | $ 1,662 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Company contributions to defined contribution plan | $ 2,923 | $ 2,445 | $ 2,487 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 769,591 | $ 723,472 | $ 670,885 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 398,632 | 379,106 | 342,660 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 370,959 | $ 344,366 | $ 328,225 |
Segment Information - Schedul_2
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 331,999 | $ 296,573 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 275,546 | 248,386 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 56,453 | $ 48,187 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges (Details) | 12 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($)office | Mar. 31, 2020USD ($)office | |
Restructuring and Related Activities [Abstract] | |||
Employee severance and related costs | $ 4,483,000 | $ 19,040,000 | $ 16,834,000 |
Lease impairments related costs | 0 | 1,684,000 | 2,761,000 |
Stock-based compensation | 1,709,000 | 2,747,000 | 1,753,000 |
Total restructuring charges | $ 6,192,000 | $ 23,471,000 | $ 21,348,000 |
Number of leases related to lease impairment | office | 7 | 6 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Accruals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 3,095 | $ 2,531 | |
Employee severance and related costs | 4,483 | 19,040 | $ 16,834 |
Payments | (5,317) | (18,476) | |
Ending balance | $ 2,261 | $ 3,095 | $ 2,531 |
Leases - Net Lease Costs Recogn
Leases - Net Lease Costs Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 7,129 | $ 9,048 | $ 8,795 |
Short-term lease cost | 123 | 232 | 410 |
Variable lease cost | 1,608 | 1,938 | 2,088 |
Net lease cost | $ 8,860 | $ 11,218 | $ 11,293 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Cash paid for operating lease liabilities | $ 8,277 | $ 10,370 | $ 9,476 |
Additions of operating lease assets (non-cash) | $ 1,827 | $ 17,603 | $ 8,448 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 4,745 | |
2024 | 4,226 | |
2025 | 3,904 | |
2026 | 2,080 | |
2027 | 568 | |
Thereafter | 1,846 | |
Total minimum lease payments | 17,369 | |
Less: Imputed interest | 1,321 | |
Present value of operating lease liabilities | 16,048 | |
Less: Current portion of operating lease liabilities | 4,778 | $ 7,469 |
Long-term operating lease liabilities | $ 11,270 | $ 15,419 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Mar. 31, 2022 | Mar. 31, 2021 |
Leases [Abstract] | ||
Weighted-average remaining term (in years) | 4 years 2 months 4 days | 4 years 5 months 4 days |
Weighted-average discount rate | 4.00% | 4.00% |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Senior Secured Revolving Credit Facility - Revolving Credit Facility - USD ($) | Dec. 13, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Line of Credit Facility [Line Items] | |||
Debt term | 5 years | ||
Borrowing capacity | $ 100,000,000 | ||
Annual interest charge on unused balance of the credit facility | 0.25% | ||
Borrowings under the credit facility | $ 0 | ||
Unamortized debt issuance costs | 543,000 | ||
Amortization of debt issuance costs | $ 109,000 | $ 0 | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Line of Credit Facility [Line Items] | |||
Debt, basis spread on variable rate | 1.25% |