Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2022 | Jul. 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-33026 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3447504 | |
Entity Address, Address Line One | 1 Commvault Way | |
Entity Address, City or Town | Tinton Falls | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07724 | |
City Area Code | 732 | |
Local Phone Number | 870-4000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CVLT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,806,580 | |
Entity Registrant Name | COMMVAULT SYSTEMS INC | |
Entity Central Index Key | 0001169561 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 258,713 | $ 267,507 |
Trade accounts receivable, net | 181,535 | 194,238 |
Other current assets | 24,785 | 22,336 |
Total current assets | 465,033 | 484,081 |
Property and equipment, net | 104,599 | 106,513 |
Operating lease assets | 13,136 | 14,921 |
Deferred commissions cost | 52,767 | 52,974 |
Intangible asset, net | 3,229 | 3,542 |
Goodwill | 127,780 | 127,780 |
Other assets | 26,179 | 26,269 |
Total assets | 792,723 | 816,080 |
Current liabilities: | ||
Accounts payable | 884 | 432 |
Accrued liabilities | 86,397 | 121,837 |
Current portion of operating lease liabilities | 4,113 | 4,778 |
Deferred revenue | 264,527 | 267,017 |
Total current liabilities | 355,921 | 394,064 |
Deferred revenue, less current portion | 151,950 | 150,180 |
Deferred tax liabilities, net | 799 | 808 |
Long-term operating lease liabilities | 9,801 | 11,270 |
Other liabilities | 3,768 | 3,929 |
Commitments and contingencies (Note 5) | ||
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, 44,835 shares and 44,511 shares issued and outstanding at June 30, 2022 and March 31, 2022, respectively | 446 | 443 |
Additional paid-in capital | 1,194,931 | 1,165,948 |
Accumulated deficit | (911,315) | (898,699) |
Accumulated other comprehensive loss | (13,578) | (11,863) |
Total stockholders’ equity | 270,484 | 255,829 |
Total liabilities and stockholders’ equity | $ 792,723 | $ 816,080 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Mar. 31, 2022 |
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) | 44,835,000 | 44,511,000 |
Common stock, shares outstanding (in shares) | 44,835,000 | 44,511,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||
Total revenues | $ 197,981 | $ 183,421 |
Cost of revenues: | ||
Total cost of revenues | 33,757 | 25,275 |
Gross margin | 164,224 | 158,146 |
Operating expenses: | ||
Sales and marketing | 84,919 | 76,361 |
Research and development | 40,113 | 36,135 |
General and administrative | 26,976 | 26,429 |
Restructuring | 2,132 | 1,446 |
Depreciation and amortization | 2,635 | 2,281 |
Total operating expenses | 156,775 | 142,652 |
Income from operations | 7,449 | 15,494 |
Interest income | 261 | 134 |
Interest expense | (105) | 0 |
Other expense, net | (389) | 0 |
Income before income taxes | 7,216 | 15,628 |
Income tax expense | 3,705 | 1,731 |
Net income | $ 3,511 | $ 13,897 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.08 | $ 0.30 |
Diluted (in dollars per share) | $ 0.08 | $ 0.29 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 44,743 | 46,180 |
Diluted (in shares) | 45,865 | 48,167 |
Software and products | ||
Revenues: | ||
Total revenues | $ 92,436 | $ 82,162 |
Cost of revenues: | ||
Total cost of revenues | 4,900 | 2,306 |
Services | ||
Revenues: | ||
Total revenues | 105,545 | 101,259 |
Cost of revenues: | ||
Total cost of revenues | $ 28,857 | $ 22,969 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,511 | $ 13,897 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (1,715) | (591) |
Comprehensive income | $ 1,796 | $ 13,306 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid – In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2021 | 46,482 | ||||
Beginning 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 | 21,811 | 21,811 | |||
Share issuances related to stock-based compensation (in shares) | 833 | ||||
Share issuances related to stock-based compensation | 15,435 | $ 8 | 15,427 | ||
Repurchase of common stock (in shares) | (1,249) | ||||
Repurchase of common stock | (90,048) | $ (12) | (11,030) | (79,006) | |
Net income | 13,897 | 13,897 | |||
Other comprehensive loss | (591) | (591) | |||
Ending balance (in shares) at Jun. 30, 2021 | 46,066 | ||||
Ending balance at Jun. 30, 2021 | 354,538 | $ 459 | 1,095,903 | (730,883) | (10,941) |
Beginning balance (in shares) at Mar. 31, 2022 | 44,511 | ||||
Beginning balance at Mar. 31, 2022 | 255,829 | $ 443 | 1,165,948 | (898,699) | (11,863) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 31,095 | 31,095 | |||
Share issuances related to stock-based compensation (in shares) | 634 | ||||
Share issuances related to stock-based compensation | $ 687 | $ 6 | 681 | ||
Repurchase of common stock (in shares) | (310) | (310) | |||
Repurchase of common stock | $ (18,923) | $ (3) | (2,793) | (16,127) | |
Net income | 3,511 | 3,511 | |||
Other comprehensive loss | (1,715) | (1,715) | |||
Ending balance (in shares) at Jun. 30, 2022 | 44,835 | ||||
Ending balance at Jun. 30, 2022 | $ 270,484 | $ 446 | $ 1,194,931 | $ (911,315) | $ (13,578) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 3,511 | $ 13,897 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,977 | 2,593 |
Noncash stock-based compensation | 31,095 | 21,811 |
Noncash change in fair value of equity securities | 389 | 0 |
Amortization of deferred commissions cost | 5,314 | 4,166 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 9,389 | 34,054 |
Operating lease assets and liabilities, net | (283) | (153) |
Other current assets and Other assets | (2,710) | (7,594) |
Deferred commissions cost | (6,652) | (5,941) |
Accounts payable | 482 | (241) |
Accrued liabilities | (31,366) | (26,067) |
Deferred revenue | 10,258 | 669 |
Other liabilities | 29 | 17 |
Net cash provided by operating activities | 22,433 | 37,211 |
Cash flows from investing activities | ||
Purchase of property and equipment | (867) | (1,442) |
Purchase of equity securities | (1,015) | 0 |
Net cash used in investing activities | (1,882) | (1,442) |
Cash flows from financing activities | ||
Repurchase of common stock | (18,923) | (90,048) |
Proceeds from stock-based compensation plans | 687 | 15,435 |
Payment of debt issuance costs | (63) | 0 |
Net cash used in financing activities | (18,299) | (74,613) |
Effects of exchange rate — changes in cash | (11,046) | 756 |
Net decrease in cash and cash equivalents | (8,794) | (38,088) |
Cash and cash equivalents at beginning of period | 267,507 | 397,237 |
Cash and cash equivalents at end of period | $ 258,713 | $ 359,149 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Commvault Systems, Inc. and its subsidiaries ("Commvault," "we," "us," or "our") is a provider of data protection and information management software applications and products. We develop, market and sell a suite of software applications and services, globally, that provides our customers with data protection solutions. We also provide our customers with a broad range of professional and customer support services, including data management-as-a-service, branded as Metallic. The consolidated financial statements of Commvault as of June 30, 2022 and for the three months ended June 30, 2022 and 2021 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in our Annual Report on Form 10-K for fiscal 2022. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amounts of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, deferred commissions, purchased intangible assets and goodwill. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recently Adopted and Recently Issued Accounting Standards There were no recently adopted accounting standards that had a material effect on our condensed consolidated financial statements and accompanying disclosures, and no recently issued accounting standards that are expected to have a material impact on our condensed consolidated financial statements and accompanying disclosures. 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 36% and 37% of total revenues for the three months ended June 30, 2022 and 2021, respectively. Arrow accounted for approximately 25% and 30% of total accounts receivable as of June 30, 2022 and March 31, 2022, respectively. Equity Securities Accounted for at Net Asset Value We held equity interests in private equity funds of $4,650 as of June 30, 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 $5,718 as of June 30, 2022. We did not own interests in any of these funds as of June 30, 2021. 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 sold as part of the transaction. The commission paid on the renewal of a term-based or subscription software license is 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 term-based software license transactions are 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. |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 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 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. Beginning in fiscal 2023, we have combined the management of our EMEA and APJ field organizations into our International region (Europe, Middle East, Africa, Australia, Japan, Southeast Asia, China). Our Americas region includes the United States, Canada, and Latin America. Three Months Ended June 30, 2022 Americas International Total Software and Products Revenue $ 59,680 $ 32,756 $ 92,436 Customer Support Revenue 48,031 33,286 81,317 Other Services Revenue 14,898 9,330 24,228 Total Revenue $ 122,609 $ 75,372 $ 197,981 Three Months Ended June 30, 2021 Americas International Total Software and Products Revenue $ 51,787 $ 30,375 $ 82,162 Customer Support Revenue 51,874 37,095 88,969 Other Services Revenue 7,310 4,980 12,290 Total Revenue $ 110,971 $ 72,450 $ 183,421 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 (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2022 $ 177,182 $ 17,056 $ 14,296 $ 267,017 $ 150,180 Increase (decrease), net (15,637) 2,934 (394) (2,490) 1,770 Ending Balance as of June 30, 2022 $ 161,545 $ 19,990 $ 13,902 $ 264,527 $ 151,950 The net decrease in accounts receivable (inclusive of unbilled receivables) is a result of a decrease in software and products revenue relative to the fourth quarter of the prior fiscal year. The decrease in deferred revenue is primarily the result of a strengthening of the U.S. dollar and a sequential decrease in deferred revenue associated with customer support contracts partially offset by an increase in deferred revenue associated with Metallic 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 March 31, 2022 balance of deferred revenue was $92,149 for the three months ended June 30, 2022. The vast majority of this revenue consists of customer support arrangements and Metallic. The amount of software and products revenue recognized in the three months ended June 30, 2022 related to performance obligations from prior periods was not significant. Remaining Performance Obligations In addition to the amounts included in deferred revenue as of June 30, 2022, $76,825 of revenue may be recognized from remaining performance obligations, of which approximately $9,900 was related to software and products. We expect the majority of this software and products revenue to be recognized during fiscal 2023. Most of this software and products revenue is associated with renewals of term licenses which have not yet expired. 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 Metallic. |
Net Income per Common Share
Net Income per Common Share | 3 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares during the period. Diluted net income 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 ("ESPP"). 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: Three Months Ended June 30, 2022 2021 Net income $ 3,511 $ 13,897 Basic net income per common share: Basic weighted average shares outstanding 44,743 46,180 Basic net income per common share $ 0.08 $ 0.30 Diluted net income per common share: Basic weighted average shares outstanding 44,743 46,180 Dilutive effect of stock options and restricted stock units 1,122 1,987 Diluted weighted average shares outstanding 45,865 48,167 Diluted net income per common share $ 0.08 $ 0.29 The diluted weighted-average shares outstanding exclude outstanding stock options, restricted stock units, performance restricted stock units and shares to be purchased under the ESPP totaling 535 and 616 for the three months ended June 30, 2022 and 2021, respectively, because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we are subject to claims in legal proceedings arising in the normal course of business. We do not believe that we are currently party to any pending legal action that could reasonably be expected to have a material adverse effect on our business or operating results. |
Capitalization
Capitalization | 3 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Capitalization | Capitalization Our stock repurchase program has been funded by our existing cash and cash equivalent balances, as well as cash flows provided by our operations. On April 21, 2022, the Board of Directors (the "Board") approved a new share repurchase program of $250,000. The Board's authorization has no expiration date. For the three months ended June 30, 2022, we repurchased $18,923 of our common stock, or approximately 310 shares. As a result, $231,077 remains available under the current authorization. |
Stock Plans
Stock Plans | 3 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans The following table presents the stock-based compensation expense included in cost of services revenue, sales and marketing, research and development, general and administrative and restructuring expenses for the three months ended June 30, 2022 and 2021. Stock-based compensation is attributable to restricted stock units, performance-based awards and the ESPP. Three Months Ended June 30, 2022 2021 Cost of services revenue $ 1,243 $ 1,185 Sales and marketing 11,393 7,308 Research and development 9,241 7,185 General and administrative 7,931 6,011 Restructuring 1,287 122 Stock-based compensation expense $ 31,095 $ 21,811 As of June 30, 2022, there was $155,830 of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 1.87 years. We account for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from our current estimate. Stock option activity was not significant in the three months ended June 30, 2022. In the three months ended June 30, 2021, there were 337 options exercised with an intrinsic value of $10,835. Restricted Stock Units Restricted stock unit activity for the three months ended June 30, 2022 is as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2022 3,310 $ 58.16 Awarded 814 62.60 Vested (620) 55.44 Forfeited (113) 59.46 Non-vested as of June 30, 2022 3,391 $ 59.68 The weighted-average fair value of restricted stock units awarded was $62.60 per unit during the three months ended June 30, 2022, and $73.66 per unit during the three months ended June 30, 2021. The weighted-average fair value of awards includes the awards with a market condition described below. Performance Based Awards In the three months ended June 30, 2022, we granted 126 performance restricted stock units ("PSUs") to certain executives. Vesting of these awards is contingent upon i) us meeting certain non-GAAP performance goals (performance-based) in fiscal 2023 and ii) our customary service periods. The awards vest over three years. The vesting quantity of these awards may vary based on actual fiscal 2023 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSUs that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table. Awards with a Market Condition In the three months ended June 30, 2022, we granted 126 market performance stock units to certain executives. The vesting of these awards is contingent upon us meeting certain total shareholder return ("TSR") levels as compared to the Russell 3000 market index over the next three years. The awards vest in three annual tranches and have a maximum potential to vest at 200% (252 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the three months ended June 30, 2022 was $76.48 per unit. The awards are included in the restricted stock unit table. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax expense was $3,705 in the three months ended June 30, 2022 compared to expense of $1,731 in the three months ended June 30, 2021. The increase in current income tax expense relative to the prior year relates primarily to current federal and state taxes driven by the effects of capitalization and amortization of research and development expenses starting in our fiscal year 2023 as required by the 2017 Tax Cuts and Jobs Act. We believe that it is more likely than not that we will not realize the benefits of our gross deferred tax assets and therefore continue to record a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero as of June 30, 2022. |
Restructuring
Restructuring | 3 Months Ended |
Jun. 30, 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. These restructuring charges relate primarily to severance and related costs associated with headcount reductions and stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan. For the three months ended June 30, 2022 and 2021, restructuring charges were comprised of the following: Three Months Ended June 30, 2022 2021 Employee severance and related costs $ 845 $ 1,324 Stock-based compensation 1,287 122 Total restructuring charges $ 2,132 $ 1,446 Restructuring accruals The activity in our restructuring accruals for the three months ended June 30, 2022 is as follows: Total Balance as of March 31, 2022 $ 2,261 Employee severance and related costs 845 Payments (2,454) Balance as of June 30, 2022 $ 652 |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2022 were $514. The amortization of debt issuance costs and interest expense incurred for the three months ended June 30, 2022 was $92. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements of Commvault as of June 30, 2022 and for the three months ended June 30, 2022 and 2021 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in our Annual Report on Form 10-K for fiscal 2022. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. |
Use of Estimates | The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amounts of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, deferred commissions, purchased intangible assets and goodwill. Actual results could differ from those estimates. |
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. |
Equity Securities Accounted for at Net Asset Value | We held equity interests in private equity funds of $4,650 as of June 30, 2022, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement |
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 sold as part of the transaction. The commission paid on the renewal of a term-based or subscription software license is 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 term-based software license transactions are 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. 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. |
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. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 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 |
Schedule of Disaggregation of Revenue | Three Months Ended June 30, 2022 Americas International Total Software and Products Revenue $ 59,680 $ 32,756 $ 92,436 Customer Support Revenue 48,031 33,286 81,317 Other Services Revenue 14,898 9,330 24,228 Total Revenue $ 122,609 $ 75,372 $ 197,981 Three Months Ended June 30, 2021 Americas International Total Software and Products Revenue $ 51,787 $ 30,375 $ 82,162 Customer Support Revenue 51,874 37,095 88,969 Other Services Revenue 7,310 4,980 12,290 Total Revenue $ 110,971 $ 72,450 $ 183,421 |
Schedule of Contract with Customer, Asset and Liability | The opening and closing balances of our accounts receivable, unbilled receivables, and deferred revenues are as follows: Accounts Receivable Unbilled Receivable Unbilled Receivable Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2022 $ 177,182 $ 17,056 $ 14,296 $ 267,017 $ 150,180 Increase (decrease), net (15,637) 2,934 (394) (2,490) 1,770 Ending Balance as of June 30, 2022 $ 161,545 $ 19,990 $ 13,902 $ 264,527 $ 151,950 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the reconciliation of basic and diluted common share: Three Months Ended June 30, 2022 2021 Net income $ 3,511 $ 13,897 Basic net income per common share: Basic weighted average shares outstanding 44,743 46,180 Basic net income per common share $ 0.08 $ 0.30 Diluted net income per common share: Basic weighted average shares outstanding 44,743 46,180 Dilutive effect of stock options and restricted stock units 1,122 1,987 Diluted weighted average shares outstanding 45,865 48,167 Diluted net income per common share $ 0.08 $ 0.29 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table presents the stock-based compensation expense included in cost of services revenue, sales and marketing, research and development, general and administrative and restructuring expenses for the three months ended June 30, 2022 and 2021. Stock-based compensation is attributable to restricted stock units, performance-based awards and the ESPP. Three Months Ended June 30, 2022 2021 Cost of services revenue $ 1,243 $ 1,185 Sales and marketing 11,393 7,308 Research and development 9,241 7,185 General and administrative 7,931 6,011 Restructuring 1,287 122 Stock-based compensation expense $ 31,095 $ 21,811 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the three months ended June 30, 2022 is as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2022 3,310 $ 58.16 Awarded 814 62.60 Vested (620) 55.44 Forfeited (113) 59.46 Non-vested as of June 30, 2022 3,391 $ 59.68 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accruals | For the three months ended June 30, 2022 and 2021, restructuring charges were comprised of the following: Three Months Ended June 30, 2022 2021 Employee severance and related costs $ 845 $ 1,324 Stock-based compensation 1,287 122 Total restructuring charges $ 2,132 $ 1,446 |
Schedule of Activity in Restructuring Accruals | The activity in our restructuring accruals for the three months ended June 30, 2022 is as follows: Total Balance as of March 31, 2022 $ 2,261 Employee severance and related costs 845 Payments (2,454) Balance as of June 30, 2022 $ 652 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 36% | 37% |
Accounts receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 25% | 30% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Equity Securities Accounted for at Net Asset Value (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Private Equity Funds | ||
Concentration Risk [Line Items] | ||
Equity securities | $ 4,650,000 | |
Unfunded commitments | $ 5,718,000 | |
Own Interests Funds | ||
Concentration Risk [Line Items] | ||
Unfunded commitments | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Deferred Commissions Cost (Details) | Jun. 30, 2022 |
Accounting Policies [Abstract] | |
Software updates and customer support costs amortization period | 5 years |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2022 USD ($) source | |
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 |
Revenue recognized in period, included in opening deferred revenue balance | $ 92,149 |
Revenue expected to be recognized from remaining performance obligations | 76,825 |
Product | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 9,900 |
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 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Product | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Other Professional Services (except for education services) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) | 3 Months Ended |
Jun. 30, 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 | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 197,981 | $ 183,421 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 122,609 | 110,971 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 75,372 | 72,450 |
Software and products | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 92,436 | 82,162 |
Software and products | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 59,680 | 51,787 |
Software and products | International | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 32,756 | 30,375 |
Customer Support Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 81,317 | 88,969 |
Customer Support Revenue | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 48,031 | 51,874 |
Customer Support Revenue | International | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 33,286 | 37,095 |
Other Services Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 24,228 | 12,290 |
Other Services Revenue | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 14,898 | 7,310 |
Other Services Revenue | International | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 9,330 | $ 4,980 |
Revenue - Opening and Closing B
Revenue - Opening and Closing Balances of Accounts Receivables, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Deferred Revenue (current) | |
Opening Balance | $ 267,017 |
Ending Balance | 264,527 |
Deferred Revenue (long-term) | |
Opening Balance | 150,180 |
Ending Balance | 151,950 |
Unbilled Receivable (current) | |
Accounts Receivable | |
Opening Balance | 177,182 |
Increase (decrease), net | (15,637) |
Ending Balance | 161,545 |
Unbilled Receivable (current) | |
Opening Balance | 17,056 |
Increase (decrease), net | 2,934 |
Ending Balance | 19,990 |
Unbilled Receivable (long-term) | |
Unbilled Receivable (long-term) | |
Opening Balance | 14,296 |
Increase (decrease), net | (394) |
Ending Balance | 13,902 |
Deferred Revenue (current) | |
Deferred Revenue (current) | |
Opening Balance | 267,017 |
Increase (decrease), net | (2,490) |
Ending Balance | 264,527 |
Deferred Revenue (long-term) | |
Deferred Revenue (long-term) | |
Opening Balance | 150,180 |
Increase (decrease), net | 1,770 |
Ending Balance | $ 151,950 |
Net Income per Common Share - C
Net Income per Common Share - Computation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders, basic | $ 3,511 | $ 13,897 |
Net income available to common stockholders, diluted | $ 3,511 | $ 13,897 |
Basic net income per common share: | ||
Basic weighted average shares outstanding (in shares) | 44,743 | 46,180 |
Basic net income per common share (in dollars per share) | $ 0.08 | $ 0.30 |
Diluted net income per common share: | ||
Basic weighted average shares outstanding (in shares) | 44,743 | 46,180 |
Dilutive effect of stock options and restricted stock units (in shares) | 1,122 | 1,987 |
Diluted weighted average shares outstanding (in shares) | 45,865 | 48,167 |
Diluted net income per common share (in dollars per share) | $ 0.08 | $ 0.29 |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation (in shares) | 535 | 616 |
Capitalization (Details)
Capitalization (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Apr. 21, 2022 | |
Equity [Abstract] | |||
Share repurchase program, amount approved | $ 250,000 | ||
Repurchase of common stock | $ 18,923 | $ 90,048 | |
Number of shares repurchased (in shares) | 310 | ||
Share repurchase program, remaining available amount | $ 231,077 |
Stock Plans - Stock-Based Compe
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 31,095 | $ 21,811 |
Cost of services revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,243 | 1,185 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 11,393 | 7,308 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 9,241 | 7,185 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 7,931 | 6,011 |
Restructuring | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,287 | $ 122 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 155,830 | |
Weighted average period awards are expected to be recognized | 1 year 10 months 13 days | |
Options exercised (in shares) | 337 | |
Total intrinsic value of options exercised | $ 10,835 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value, units awarded (in dollars per share) | $ 62.60 | $ 73.66 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Units Activity (Details) - Restricted stock units - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Number of Awards | ||
Non-vested beginning balance (in shares) | 3,310 | |
Granted (in shares) | 814 | |
Vested (in shares) | (620) | |
Forfeited (in shares) | (113) | |
Non-vested ending balance (in shares) | 3,391 | |
Weighted- Average Grant Date Fair Value | ||
Non-vested beginning balance (in dollars per share) | $ 58.16 | |
Granted (in dollars per share) | 62.60 | $ 73.66 |
Vested (in dollars per share) | 55.44 | |
Forfeited (in dollars per share) | 59.46 | |
Non-vested ending balance (in dollars per share) | $ 59.68 |
Stock Plans - Performance Based
Stock Plans - Performance Based Awards (Details) - PSU shares in Thousands | 3 Months Ended |
Jun. 30, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 126 |
Compensation arrangements, vesting period | 3 years |
Stock Plans - Awards with a Mar
Stock Plans - Awards with a Market Condition (Details) - Market performance shares shares in Thousands | 3 Months Ended |
Jun. 30, 2022 tranche $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 126 |
Service period | 3 years |
Number of annual tranches | tranche | 3 |
Weighted-average fair value, units awarded (in dollars per share) | $ / shares | $ 76.48 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards potential to vest, percentage | 200% |
Awards potential to vest (in shares) | 252 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 3,705,000 | $ 1,731,000 |
Deferred tax assets | $ 0 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||
Employee severance and related costs | $ 845 | $ 1,324 |
Stock-based compensation | 1,287 | 122 |
Total restructuring charges | $ 2,132 | $ 1,446 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Accruals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 2,261 | |
Employee severance and related costs | 845 | $ 1,324 |
Payments | (2,454) | |
Ending balance | $ 652 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Revolving credit facility - Senior Secured Revolving Credit Facility - USD ($) | 3 Months Ended | |
Dec. 13, 2021 | Jun. 30, 2022 | |
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 | 514,000 | |
Amortization of debt issuance costs | $ 92,000 | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Line of Credit Facility [Line Items] | ||
Debt, basis spread on variable rate | 1.25% |