Commvault Systems (CVLT) 10-Q 31 Jan 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Dec. 31, 2023	Jan. 29, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	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		43,661,621
Entity Registrant Name	COMMVAULT SYSTEMS INC
Entity Central Index Key	0001169561
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 284,310	$ 287,778
Trade accounts receivable, net	223,710	210,441
Assets held for sale	38,680	38,680
Other current assets	19,834	14,015
Total current assets	566,534	550,914
Property and equipment, net	7,933	8,287
Operating lease assets	11,693	11,784
Deferred commissions cost	61,128	59,612
Intangible asset, net	1,354	2,292
Goodwill	127,780	127,780
Other assets	27,652	21,905
Total assets	804,074	782,574
Current liabilities:
Accounts payable	214	108
Accrued liabilities	101,913	97,888
Current portion of operating lease liabilities	5,178	4,518
Deferred revenue	325,500	307,562
Total current liabilities	432,805	410,076
Deferred revenue, less current portion	184,251	174,393
Deferred tax liabilities, net	736	134
Long-term operating lease liabilities	7,946	8,260
Other liabilities	3,733	3,613
Commitments and contingencies (Note 6)
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, 43,754 shares and 44,140 shares issued and outstanding at December 31, 2023 and March 31, 2023, respectively	436	440
Additional paid-in capital	1,326,468	1,264,608
Accumulated deficit	(1,136,582)	(1,062,900)
Accumulated other comprehensive loss	(15,719)	(16,050)
Total stockholders’ equity	174,603	186,098
Total liabilities and stockholders’ equity	$ 804,074	$ 782,574

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Mar. 31, 2023
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)	43,754,000	44,140,000
Common stock, shares outstanding (in shares)	43,754,000	44,140,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenues:
Total revenues	$ 216,808	$ 195,074	$ 615,955	$ 581,112
Cost of revenues:
Total cost of revenues	39,061	34,538	112,464	100,597
Gross margin	177,747	160,536	503,491	480,515
Operating expenses:
Sales and marketing	91,697	87,343	260,536	253,561
Research and development	34,392	32,505	97,084	109,671
General and administrative	29,098	23,983	84,059	76,512
Restructuring	0	9,228	0	11,360
Depreciation and amortization	1,509	2,459	4,647	7,631
Total operating expenses	156,696	155,518	446,326	458,735
Income from operations	21,051	5,018	57,165	21,780
Interest income	1,381	364	3,530	916
Interest expense	(103)	(105)	(311)	(315)
Other income (expense), net	(13)	123	174	(112)
Income before income taxes	22,316	5,400	60,558	22,269
Income tax expense	5,176	5,710	17,772	14,550
Net income (loss)	$ 17,140	$ (310)	$ 42,786	$ 7,719
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.39	$ (0.01)	$ 0.97	$ 0.17
Diluted (in dollars per share)	$ 0.38	$ (0.01)	$ 0.95	$ 0.17
Weighted average common shares outstanding:
Basic (in shares)	43,862	44,712	43,956	44,738
Diluted (in shares)	44,799	44,712	45,020	45,810
Subscription
Revenues:
Total revenues	$ 114,247	$ 87,380	$ 309,294	$ 253,247
Cost of revenues:
Total cost of revenues	15,914	11,682	42,920	31,560
Perpetual license
Revenues:
Total revenues	14,874	19,728	42,417	57,357
Cost of revenues:
Total cost of revenues	798	638	1,852	1,920
Customer support
Revenues:
Total revenues	76,812	77,665	230,746	236,978
Cost of revenues:
Total cost of revenues	15,091	14,611	44,946	45,067
Other services
Revenues:
Total revenues	10,875	10,301	33,498	33,530
Cost of revenues:
Total cost of revenues	$ 7,258	$ 7,607	$ 22,746	$ 22,050

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 17,140	$ (310)	$ 42,786	$ 7,719
Other comprehensive income (loss):
Foreign currency translation adjustment	1,485	(171)	331	(3,760)
Comprehensive income (loss)	$ 18,625	$ (481)	$ 43,117	$ 3,959

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, 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	81,067		81,067
Share issuances related to stock-based compensation (in shares)		1,771
Share issuances related to stock-based compensation	9,292	$ 18	9,274
Repurchase of common stock (in shares)		(1,520)
Repurchase of common stock	(90,131)	$ (15)	(13,592)	(76,524)
Net income (loss)	7,719			7,719
Other comprehensive income (loss)	(3,760)				(3,760)
Ending balance (in shares) at Dec. 31, 2022		44,762
Ending balance at Dec. 31, 2022	260,016	$ 446	1,242,697	(967,504)	(15,623)
Beginning balance (in shares) at Sep. 30, 2022		44,597
Beginning balance at Sep. 30, 2022	265,263	$ 444	1,220,667	(940,396)	(15,452)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	24,645		24,645
Share issuances related to stock-based compensation (in shares)		672
Share issuances related to stock-based compensation	1,933	$ 7	1,926
Repurchase of common stock (in shares)		(507)
Repurchase of common stock	(31,344)	$ (5)	(4,541)	(26,798)
Net income (loss)	(310)			(310)
Other comprehensive income (loss)	(171)				(171)
Ending balance (in shares) at Dec. 31, 2022		44,762
Ending balance at Dec. 31, 2022	$ 260,016	$ 446	1,242,697	(967,504)	(15,623)
Beginning balance (in shares) at Mar. 31, 2023	44,140	44,140
Beginning balance at Mar. 31, 2023	$ 186,098	$ 440	1,264,608	(1,062,900)	(16,050)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	71,941		71,941
Share issuances related to stock-based compensation (in shares)		1,546
Share issuances related to stock-based compensation	$ 7,753	$ 15	7,738
Repurchase of common stock (in shares)	(1,932)	(1,932)
Repurchase of common stock	$ (134,306)	$ (19)	(17,819)	(116,468)
Net income (loss)	42,786			42,786
Other comprehensive income (loss)	$ 331				331
Ending balance (in shares) at Dec. 31, 2023	43,754	43,754
Ending balance at Dec. 31, 2023	$ 174,603	$ 436	1,326,468	(1,136,582)	(15,719)
Beginning balance (in shares) at Sep. 30, 2023		43,918
Beginning balance at Sep. 30, 2023	181,523	$ 438	1,307,027	(1,108,738)	(17,204)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	24,602		24,602
Share issuances related to stock-based compensation (in shares)		547
Share issuances related to stock-based compensation	1,385	$ 5	1,380
Repurchase of common stock (in shares)		(711)
Repurchase of common stock	(51,532)	$ (7)	(6,541)	(44,984)
Net income (loss)	17,140			17,140
Other comprehensive income (loss)	$ 1,485				1,485
Ending balance (in shares) at Dec. 31, 2023	43,754	43,754
Ending balance at Dec. 31, 2023	$ 174,603	$ 436	$ 1,326,468	$ (1,136,582)	$ (15,719)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities
Net income	$ 42,786	$ 7,719
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,734	8,656
Noncash stock-based compensation	71,941	81,067
Noncash change in fair value of equity securities	(174)	112
Amortization of deferred commissions cost	19,544	16,533
Changes in operating assets and liabilities:
Trade accounts receivable	(20,676)	(17,779)
Operating lease assets and liabilities, net	419	(61)
Other current assets and Other assets	1,970	2,982
Deferred commissions cost	(20,541)	(22,663)
Accounts payable	108	49
Accrued liabilities	852	(17,103)
Deferred revenue	22,443	41,807
Other liabilities	407	1,136
Net cash provided by operating activities	123,813	102,455
Cash flows from investing activities
Purchase of property and equipment	(3,227)	(2,186)
Purchase of equity securities	(1,062)	(1,961)
Net cash used in investing activities	(4,289)	(4,147)
Cash flows from financing activities
Repurchase of common stock	(133,655)	(90,131)
Proceeds from stock-based compensation plans	7,753	9,292
Payment of debt issuance costs	0	(63)
Net cash used in financing activities	(125,902)	(80,902)
Effects of exchange rate — changes in cash	2,910	(11,444)
Net increase (decrease) in cash and cash equivalents	(3,468)	5,962
Cash and cash equivalents at beginning of period	287,778	267,507
Cash and cash equivalents at end of period	$ 284,310	$ 273,469

Basis of Presentation

Basis of Presentation	9 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Commvault Systems, Inc. and its subsidiaries ("Commvault," "we," "us," or "our") provides its customers with a cyber resiliency platform that helps them secure, defend and recover their most precious asset, their data. We provide these products and services for their data across the following environments: on-premises, hybrid, and multi-cloud. Our cyber resiliency offerings are delivered via self-managed software, software-as-a-service ("SaaS"), integrated appliances, or managed by partners. Customers use our technology to protect themselves from threats like ransomware and recover their data efficiently. The consolidated financial statements of Commvault as of December 31, 2023 and for the three and nine months ended December 31, 2023 and 2022 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 2023. 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 and goodwill. Actual results could differ from those estimates.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Reclassification of Prior Year Balances Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications have no impact on the amount of total revenues or net income. Beginning in fiscal 2024, the software and services line items on the consolidated statements of operations, related to revenues and cost of revenues, will be presented in the following categories: Subscription - The amounts on this line include the revenues and costs of recurring time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. For SaaS offerings, revenue is generally recognized ratably over the contract term beginning on the date that the service is made available to the customer. Perpetual license - The amounts on this line include the revenues and costs from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer support - The amounts on this line include customer support revenues and costs associated with our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. Customer support revenue is typically recognized ratably over the term of the customer support agreement. Other services - The amounts included on this line consist primarily of revenues and costs related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed. 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. The table below outlines recently issued accounting standards not yet adopted. Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) Accounting Standards Update ("ASU") No. 2023-07 (Topic 280): Segment Reporting In November 2023, the Financial Accounting Standards Board ("FASB") issued a new standard to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This standard will be effective for us beginning April 1, 2024, with early adoption permitted. We are currently evaluating the ASU No. 2023-09 (Topic 740): Income Taxes In December 2023, the FASB issued a new standard to improve income tax disclosures. The standard requires greater disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This standard will be effective for us beginning April 1, 2025, with early adoption permitted. We are currently evaluating the Concentration of Credit Risk We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Historically, credit losses relating to these customers have been minimal. Sales through our distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 35% and 38% of total revenues for the three months ended December 31, 2023 and 2022, respectively, and 36% and 37% for the nine months ended December 31, 2023 and 2022, respectively. Arrow accounted for approximately 31% and 34% of total accounts receivable as of December 31, 2023 and March 31, 2023, respectively. Fair Value of Financial Instruments The carrying amounts of our cash, cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. Our cash equivalents balance consists primarily of U.S. Treasury Bills with maturities of one month or less. The following table summarizes the composition of our financial assets measured at fair value at December 31, 2023: Level 1 Level 2 Level 3 Total Cash equivalents $ 24,903 — — $ 24,903 There were no financial assets measured at fair value on a recurring basis as of December 31, 2022. Equity Securities Accounted for at Net Asset Value We held equity interests in private equity funds of $7,154 as of December 31, 2023, 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 the consolidated statements of operations 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 had total unfunded commitments in private equity funds of $3,010 as of December 31, 2023. 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 term-based software licenses, SaaS offerings, perpetual software licenses, software updates, and customer support. 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 customer support contracts 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 subscription arrangements is not commensurate with the commission paid on the initial purchase. As a result, the cost of commissions allocated to SaaS offerings, 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 SaaS offerings, 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 software license and related updates and support. The incremental costs attributable to professional services are generally amortized over the period the related 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

Revenue	9 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue We derive revenues from various sources, including subscriptions, perpetual software licenses, customer support contracts and other services. Subscription Subscription includes the revenues derived from time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. The term of our subscription arrangements is typically one one Perpetual License Perpetual license includes the revenues from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer Support Customer support includes revenues associated with support contracts tied to our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. We sell our customer support contracts as a percentage of net software purchases. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year on our perpetual licenses and over the term on our term-based licenses. Other Services Other services consist primarily of revenues related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed. We do not customize our software licenses (both perpetual and term-based) and installation services are not required. Software licenses are delivered before related services are provided and are functional without professional services, updates and technical support. We have concluded that our software licenses (both perpetual and term-based) are functional intellectual property that is distinct, as the user can benefit from the software on its own. Revenues for both perpetual and term-based licenses are 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 subscription revenue related to the renewal of that subscription earlier than the beginning of the new subscription period. We also offer 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. Our appliances are almost exclusively sold via a software only model in which we sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenues and costs associated with hardware are usually not included in our financial statements. Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is Subscription Term-based 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 Software-as-a-service (SaaS) Ratably over the course of the contract (over time) Annually or at the beginning of the contract period Observable in transactions without multiple performance obligations Perpetual License Perpetual software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment Residual approach Customer Support 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 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 Judgments related to revenue recognition Most of our contracts contain multiple performance obligations. For these contracts, we evaluate and account for individual performance obligations separately if they are determined to be distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses (both perpetual and term-based) are typically estimated using the residual approach. Standalone selling prices for SaaS, customer support contracts, and other services are typically estimated based on observable transactions when these services are sold on a standalone basis. We recognize revenue net of sales tax. Disaggregation of Revenues We disaggregate revenues from contracts with customers into geographical regions. Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China. Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Americas $ 125,052 $ 108,107 $ 367,476 $ 346,907 International 91,756 86,967 248,479 234,205 Total revenues $ 216,808 $ 195,074 $ 615,955 $ 581,112 Remaining Performance Obligations Remaining performance obligations represent expected future revenues from existing contracts where performance obligations are unsatisfied or partially unsatisfied at the end of the reporting period. As of December 31, 2023, our remaining performance obligations (inclusive of deferred revenues) were $581,346 of which approximately 64% is expected to be recognized as revenue over the next 12 months and the remainder recognized thereafter. The vast majority of these revenues consist of customer support, other services and SaaS arrangements. Other services consists primarily of professional services revenue which is contingent upon a number of factors, including customers' needs and scheduling. The amount of revenue recognized in the period that was included in the opening deferred revenue balance was $70,164 and $263,529 for the three and nine months ended December 31, 2023, respectively. The amount of revenue recognized from performance obligations satisfied in prior periods was not significant. 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 customer support, SaaS arrangements, and other services. 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, 2023 $ 188,736 $ 21,705 $ 9,867 $ 307,562 $ 174,393 Increase 8,829 4,440 5,026 17,938 9,858 Ending balance as of December 31, 2023 $ 197,565 $ 26,145 $ 14,893 $ 325,500 $ 184,251

Assets Held for Sale

Assets Held for Sale	9 Months Ended
	Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Assets Held for Sale	Assets Held for Sale During the fourth quarter of fiscal 2023, we entered into an exclusive agreement to sell our owned corporate headquarters in Tinton Falls, New Jersey for $40,000 in cash consideration and determined the assets and land related to headquarters met the criteria for classification as assets held for sale in accordance with ASC 360, Impairment and Disposal of Long-Lived Assets ("ASC 360"). The property's estimated fair value, less estimated costs to sell, is $38,680. Upon closing of the transaction, we will enter into a lease for a portion of the premises. Subsequent Event As of January 31, 2024, the sale of our owned corporate headquarters has not yet been finalized and the exclusivity of the agreement has expired. The assets have now been classified as held for sale for more than one year. In accordance with ASC 360, assets not sold by the end of the one-year period may still qualify as held for sale, if certain conditions are met. We have determined that, as of January 31, 2024, those conditions have been met. The Board of Directors reconfirmed their approval of the sale at the January 2024 meeting and we believe the sale will be completed in calendar year 2024. All of the held for sale criteria are still met, and the assets are properly classified as such on the consolidated balance sheets.

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share	9 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
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 vesting of restricted stock units, shares to be purchased under the Employee Stock Purchase Plan ("ESPP"), and the exercise of stock options. 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 net income (loss) per common share: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Net income (loss) $ 17,140 $ (310) $ 42,786 $ 7,719 Basic net income (loss) per common share: Basic weighted average shares outstanding 43,862 44,712 43,956 44,738 Basic net income (loss) per common share $ 0.39 $ (0.01) $ 0.97 $ 0.17 Diluted net income (loss) per common share: Basic weighted average shares outstanding 43,862 44,712 43,956 44,738 Dilutive effect of stock options and restricted stock units 937 — 1,064 1,072 Diluted weighted average shares outstanding 44,799 44,712 45,020 45,810 Diluted net income (loss) per common share $ 0.38 $ (0.01) $ 0.95 $ 0.17 The diluted weighted average shares outstanding exclude restricted stock units, performance restricted stock units, shares to be purchased under the ESPP and outstanding stock options totaling 121 and 3,921 for the three months ended December 31, 2023 and 2022, respectively, and 505 and 674 for the nine months ended December 31, 2023 and 2022, respectively, because the effect would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We do not believe that we are currently party to any pending legal action that could reasonably be expected to have a material adverse effect on our business or operating results.

Capitalization

Capitalization	9 Months Ended
	Dec. 31, 2023
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 20, 2023, the Board of Directors (the "Board") approved an increase of the existing share repurchase program so that $250,000 was available. The Board's authorization has no expiration date. For the nine months ended December 31, 2023, we repurchased $133,655 of our common stock, or approximately 1,932 shares. The remaining amount available under the current authorization as of December 31, 2023 was $122,311.

Stock Plans

Stock Plans	9 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock Plans	Stock Plans The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development, general and administrative and restructuring expenses for the three and nine months ended December 31, 2023 and 2022. Stock-based compensation is attributable to restricted stock units, performance-based awards and the ESPP. Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Cost of revenues $ 1,935 $ 1,383 $ 5,224 $ 3,852 Sales and marketing 10,189 10,479 29,834 32,037 Research and development 5,451 5,988 16,183 23,022 General and administrative 7,027 5,776 20,700 19,850 Restructuring — 1,019 — 2,306 Stock-based compensation expense $ 24,602 $ 24,645 $ 71,941 $ 81,067 As of December 31, 2023, there was $149,391 of unrecognized stock-based compensation expense that is expected to be recognized over a weighted average period of 1.91 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 for both the nine months ended December 31, 2023 and 2022. Restricted Stock Units Restricted stock unit activity for the nine months ended December 31, 2023 was as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2023 2,953 $ 62.52 Awarded 1,436 69.83 Vested (1,398) 59.35 Forfeited (257) 64.72 Non-vested as of December 31, 2023 2,734 $ 67.78 The weighted average fair value of restricted stock units awarded was $71.48 and $69.83 per unit during the three and nine months ended December 31, 2023, respectively, and $66.50 and $63.87 per unit during the three and nine months ended December 31, 2022, respectively. The weighted average fair value of awards includes the awards with a market condition described below. Performance Based Awards In the nine months ended December 31, 2023, we granted 120 performance 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 2024 and ii) our customary service periods. The awards vest over three years and have the potential to vest between 0% and 200% (240 shares) based on actual fiscal 2024 performance. The vesting quantity of these awards may vary based on actual fiscal 2024 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 nine months ended December 31, 2023, we granted 120 market PSUs 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 the potential to vest between 0% and 200% (240 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the nine months ended December 31, 2023 was $87.90 per unit. The awards are included in the restricted stock unit table. Employee Stock Purchase Plan The ESPP 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 ESPP 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 96 shares in exchange for $5,164 of proceeds in the nine months ended December 31, 2023, and 107 shares in exchange for $5,418 of proceeds in the nine months ended December 31, 2022. The ESPP 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 ESPP for the nine months ended December 31, 2023 and 2022 was $2,391 and $2,847, respectively. As of December 31, 2023, there was approximately $364 of unrecognized cost related to the current offering period of our ESPP.

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesIncome tax expense was $5,176 and $17,772 in the three and nine months ended December 31, 2023, respectively, compared to expense of $5,710 and $14,550 in the three and nine months ended December 31, 2022, respectively. The fiscal year-to-date increase in income tax expense compared to the prior year relates primarily to current federal and state taxes driven by the increase of pre-tax income relative to the same period in the prior year. 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 December 31, 2023.

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Dec. 31, 2023
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 JPMorgan Chase Bank, N.A. 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 the 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 December 31, 2023, 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 December 31, 2023 were $341. The amortization of debt issuance costs and interest expense incurred was $92 and $93 for the three months ended December 31, 2023 and 2022, respectively, and $277 and $278 for the nine months ended December 31, 2023 and 2022, respectively.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income	$ 17,140	$ (310)	$ 42,786	$ 7,719

Insider Trading Arrangements

Insider Trading Arrangements shares in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2023 shares	Dec. 31, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Sanjay Mirchandani [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On December 4, 2023, Sanjay Mirchandani, Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to approximately 86,000 shares of the Company’s common stock. The plan is in effect until December 31, 2024.
Name	Sanjay Mirchandani
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	December 4, 2023
Arrangement Duration	393 days
Aggregate Available	86	86
Gary Merrill [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On December 4, 2023, Gary Merrill, Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to approximately 13,000 shares of the Company’s common stock. The plan is in effect until November 29, 2024
Name	Gary Merrill
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	December 4, 2023
Arrangement Duration	361 days
Aggregate Available	13	13

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements of Commvault as of December 31, 2023 and for the three and nine months ended December 31, 2023 and 2022 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 2023. 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 and goodwill. Actual results could differ from those estimates.
Reclassification of Prior Year Balances	Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications have no impact on the amount of total revenues or net income. Beginning in fiscal 2024, the software and services line items on the consolidated statements of operations, related to revenues and cost of revenues, will be presented in the following categories: Subscription - The amounts on this line include the revenues and costs of recurring time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. For SaaS offerings, revenue is generally recognized ratably over the contract term beginning on the date that the service is made available to the customer. Perpetual license - The amounts on this line include the revenues and costs from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer support - The amounts on this line include customer support revenues and costs associated with our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. Customer support revenue is typically recognized ratably over the term of the customer support agreement. Other services - The amounts included on this line consist primarily of revenues and costs related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed.
Recently Adopted and Recently Issued Accounting Standards	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. The table below outlines recently issued accounting standards not yet adopted. Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) Accounting Standards Update ("ASU") No. 2023-07 (Topic 280): Segment Reporting In November 2023, the Financial Accounting Standards Board ("FASB") issued a new standard to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This standard will be effective for us beginning April 1, 2024, with early adoption permitted. We are currently evaluating the ASU No. 2023-09 (Topic 740): Income Taxes In December 2023, the FASB issued a new standard to improve income tax disclosures. The standard requires greater disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This standard will be effective for us beginning April 1, 2025, with early adoption permitted. We are currently evaluating the
Concentration of Credit Risk	We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Historically, 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 and accounts payable approximate their fair values due to the short-term maturity of these instruments. Our cash equivalents balance consists primarily of U.S. Treasury Bills with maturities of one month or less.
Equity Securities Accounted for at Net Asset Value	We held equity interests in private equity funds of $7,154 as of December 31, 2023, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement
Deferred Commissions Cost	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 term-based software licenses, SaaS offerings, perpetual software licenses, software updates, and customer support. 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 customer support contracts 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 subscription arrangements is not commensurate with the commission paid on the initial purchase. As a result, the cost of commissions allocated to SaaS offerings, 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 SaaS offerings, 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 software license and related updates and support.
Revenue	We derive revenues from various sources, including subscriptions, perpetual software licenses, customer support contracts and other services. Subscription Subscription includes the revenues derived from time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. The term of our subscription arrangements is typically one one Perpetual License Perpetual license includes the revenues from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer Support Customer support includes revenues associated with support contracts tied to our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. We sell our customer support contracts as a percentage of net software purchases. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year on our perpetual licenses and over the term on our term-based licenses. Other Services Other services consist primarily of revenues related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed. We do not customize our software licenses (both perpetual and term-based) and installation services are not required. Software licenses are delivered before related services are provided and are functional without professional services, updates and technical support. We have concluded that our software licenses (both perpetual and term-based) are functional intellectual property that is distinct, as the user can benefit from the software on its own. Revenues for both perpetual and term-based licenses are 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 subscription revenue related to the renewal of that subscription earlier than the beginning of the new subscription period. We also offer 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. Our appliances are almost exclusively sold via a software only model in which we sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenues and costs associated with hardware are usually not included in our financial statements. Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is Subscription Term-based 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 Software-as-a-service (SaaS) Ratably over the course of the contract (over time) Annually or at the beginning of the contract period Observable in transactions without multiple performance obligations Perpetual License Perpetual software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment Residual approach Customer Support 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 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 Judgments related to revenue recognition Most of our contracts contain multiple performance obligations. For these contracts, we evaluate and account for individual performance obligations separately if they are determined to be distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses (both perpetual and term-based) are typically estimated using the residual approach. Standalone selling prices for SaaS, customer support contracts, and other services are typically estimated based on observable transactions when these services are sold on a standalone basis. We recognize revenue net of sales tax. Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to customer support, SaaS arrangements, and other services.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Schedule of Recently Adopted Accounting Standards Not Yet Adopted	The table below outlines recently issued accounting standards not yet adopted. Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) Accounting Standards Update ("ASU") No. 2023-07 (Topic 280): Segment Reporting In November 2023, the Financial Accounting Standards Board ("FASB") issued a new standard to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This standard will be effective for us beginning April 1, 2024, with early adoption permitted. We are currently evaluating the ASU No. 2023-09 (Topic 740): Income Taxes In December 2023, the FASB issued a new standard to improve income tax disclosures. The standard requires greater disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This standard will be effective for us beginning April 1, 2025, with early adoption permitted. We are currently evaluating the
Schedule of Composition of Financial Assets Measured at Fair Value	The following table summarizes the composition of our financial assets measured at fair value at December 31, 2023: Level 1 Level 2 Level 3 Total Cash equivalents $ 24,903 — — $ 24,903

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of 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 Subscription Term-based 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 Software-as-a-service (SaaS) Ratably over the course of the contract (over time) Annually or at the beginning of the contract period Observable in transactions without multiple performance obligations Perpetual License Perpetual software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment Residual approach Customer Support 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 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
Schedule of Disaggregation of Revenues	Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Americas $ 125,052 $ 108,107 $ 367,476 $ 346,907 International 91,756 86,967 248,479 234,205 Total revenues $ 216,808 $ 195,074 $ 615,955 $ 581,112
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, 2023 $ 188,736 $ 21,705 $ 9,867 $ 307,562 $ 174,393 Increase 8,829 4,440 5,026 17,938 9,858 Ending balance as of December 31, 2023 $ 197,565 $ 26,145 $ 14,893 $ 325,500 $ 184,251

Net Income (Loss) per Common _2

Net Income (Loss) per Common Share (Tables)	9 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income (Loss) per Common Share	The following table sets forth the reconciliation of basic and diluted net income (loss) per common share: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Net income (loss) $ 17,140 $ (310) $ 42,786 $ 7,719 Basic net income (loss) per common share: Basic weighted average shares outstanding 43,862 44,712 43,956 44,738 Basic net income (loss) per common share $ 0.39 $ (0.01) $ 0.97 $ 0.17 Diluted net income (loss) per common share: Basic weighted average shares outstanding 43,862 44,712 43,956 44,738 Dilutive effect of stock options and restricted stock units 937 — 1,064 1,072 Diluted weighted average shares outstanding 44,799 44,712 45,020 45,810 Diluted net income (loss) per common share $ 0.38 $ (0.01) $ 0.95 $ 0.17

Stock Plans (Tables)

Stock Plans (Tables)	9 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development, general and administrative and restructuring expenses for the three and nine months ended December 31, 2023 and 2022. Stock-based compensation is attributable to restricted stock units, performance-based awards and the ESPP. Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Cost of revenues $ 1,935 $ 1,383 $ 5,224 $ 3,852 Sales and marketing 10,189 10,479 29,834 32,037 Research and development 5,451 5,988 16,183 23,022 General and administrative 7,027 5,776 20,700 19,850 Restructuring — 1,019 — 2,306 Stock-based compensation expense $ 24,602 $ 24,645 $ 71,941 $ 81,067
Schedule of Restricted Stock Unit Activity	Restricted stock unit activity for the nine months ended December 31, 2023 was as follows: Non-vested Restricted Stock Units Number of Weighted Non-vested as of March 31, 2023 2,953 $ 62.52 Awarded 1,436 69.83 Vested (1,398) 59.35 Forfeited (257) 64.72 Non-vested as of December 31, 2023 2,734 $ 67.78

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Revenue
Concentration Risk [Line Items]
Concentration risk percentage	35%	38%	36%	37%
Accounts Receivable
Concentration Risk [Line Items]
Concentration risk percentage			31%		34%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 24,903,000
Financial assets at fair value		$ 0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	24,903,000
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Equity Securities Accounted for at Net Asset Value (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Accounting Policies [Abstract]
Equity securities	$ 7,154
Unfunded commitments	$ 3,010

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Deferred Commissions Cost (Details)	Dec. 31, 2023
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	9 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Subscription arrangement term		3 years
Revenue expected to be recognized from remaining performance obligations	$ 581,346	$ 581,346
Revenue recognized in period, included in opening deferred revenue balance	$ 70,164	$ 263,529
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]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	64%	64%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	36%	36%
Revenue, remaining performance obligation, expected timing of satisfaction, period

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details)	9 Months Ended
	Dec. 31, 2023
Term-based software licenses
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days
Perpetual 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 Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 216,808	$ 195,074	$ 615,955	$ 581,112
Americas
Disaggregation of Revenue [Line Items]
Total revenues	125,052	108,107	367,476	346,907
International
Disaggregation of Revenue [Line Items]
Total revenues	$ 91,756	$ 86,967	$ 248,479	$ 234,205

Revenue - Opening and Closing B

Revenue - Opening and Closing Balances of Accounts Receivables, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2023 USD ($)
Deferred revenue (current)
Opening Balance	$ 307,562
Ending Balance	325,500
Deferred revenue (long-term)
Opening Balance	174,393
Ending Balance	184,251
Unbilled receivable (current)
Accounts receivable
Opening Balance	188,736
Increase	8,829
Ending Balance	197,565
Unbilled receivable (current)
Opening Balance	21,705
Increase	4,440
Ending Balance	26,145
Unbilled receivable (long-term)
Unbilled receivable (long-term)
Opening Balance	9,867
Increase	5,026
Ending Balance	14,893
Deferred revenue (current)
Deferred revenue (current)
Opening Balance	307,562
Increase	17,938
Ending Balance	325,500
Deferred revenue (long-term)
Deferred revenue (long-term)
Opening Balance	174,393
Increase	9,858
Ending Balance	$ 184,251

Assets Held for Sale (Details)

Assets Held for Sale (Details) - Corporate Headquarters in Tinton Falls, NJ - Disposal Group, Held-for-sale, Not Discontinued Operations $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration from sale of properties	$ 40,000
Amount written down to estimated fair value, less estimated costs to sell	$ 38,680

Net Income (Loss) per Common _3

Net Income (Loss) per Common Share - Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Net income (loss), basic	$ 17,140	$ (310)	$ 42,786	$ 7,719
Net income (loss), diluted	$ 17,140	$ (310)	$ 42,786	$ 7,719
Basic net income (loss) per common share:
Basic weighted average shares outstanding (in shares)	43,862	44,712	43,956	44,738
Basic net income ( loss ) per common share (in dollars per share)	$ 0.39	$ (0.01)	$ 0.97	$ 0.17
Diluted net income (loss) per common share:
Basic weighted average shares outstanding (in shares)	43,862	44,712	43,956	44,738
Dilutive effect of stock options and restricted stock units (in shares)	937	0	1,064	1,072
Diluted weighted average shares outstanding (in shares)	44,799	44,712	45,020	45,810
Diluted net income ( loss ) per common share (in dollars per share)	$ 0.38	$ (0.01)	$ 0.95	$ 0.17

Net Income (Loss) per Common _4

Net Income (Loss) per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation (in shares)	121	3,921	505	674

Capitalization (Details)

Capitalization (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Apr. 20, 2023
Equity [Abstract]
Share repurchase program, amount approved			$ 250,000
Repurchase of common stock	$ 133,655	$ 90,131
Number of shares repurchased (in shares)	1,932
Share repurchase program, remaining available amount	$ 122,311

Stock Plans - Stock-Based Compe

Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 24,602	$ 24,645	$ 71,941	$ 81,067
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,935	1,383	5,224	3,852
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	10,189	10,479	29,834	32,037
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	5,451	5,988	16,183	23,022
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	7,027	5,776	20,700	19,850
Restructuring
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 0	$ 1,019	$ 0	$ 2,306

Stock Plans - Additional Inform

Stock Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 149,391		$ 149,391
Weighted average period awards are expected to be recognized			1 year 10 months 28 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value, units awarded (in dollars per share)	$ 71.48	$ 66.50	$ 69.83	$ 63.87

Stock Plans - Restricted Stock

Stock Plans - Restricted Stock Units Activity (Details) - Restricted stock units - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Number of Awards
Non-vested beginning balance (in shares)			2,953
Awarded (in shares)			1,436
Vested (in shares)			(1,398)
Forfeited (in shares)			(257)
Non-vested ending balance (in shares)	2,734		2,734
Weighted Average Grant Date Fair Value
Non-vested beginning balance (in dollars per share)			$ 62.52
Awarded (in dollars per share)	$ 71.48	$ 66.50	69.83	$ 63.87
Vested (in dollars per share)			59.35
Forfeited (in dollars per share)			64.72
Non-vested ending balance (in dollars per share)	$ 67.78		$ 67.78

Stock Plans - Performance Based

Stock Plans - Performance Based Awards (Details) - PSU shares in Thousands	9 Months Ended
	Dec. 31, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards, granted (in shares)	120
Compensation arrangements, vesting period	3 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards potential to vest, percentage	0%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards potential to vest, percentage	200%
Awards potential to vest (in shares)	240

Stock Plans - Awards with a Mar

Stock Plans - Awards with a Market Condition (Details) - Market performance shares shares in Thousands	9 Months Ended
	Dec. 31, 2023 tranche $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards, granted (in shares)	120
Service period	3 years
Number of annual tranches | tranche	3
Weighted average fair value, units awarded (in dollars per share) | $ / shares	$ 87.90
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards potential to vest, percentage	0%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards potential to vest, percentage	200%
Awards potential to vest (in shares)	240

Stock Plans - Employee Stock Pu

Stock Plans - Employee Stock Purchase plan (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 24,602	$ 24,645	$ 71,941	$ 81,067
Unrecognized stock-based compensation expense	$ 149,391		$ 149,391
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price as a percentage of fair market value			85%
Length of offering period (in months)			6 months
Maximum employee payroll percent deduction of salary	10%		10%
Maximum amount of stock purchasable by employees within a calendar year			$ 25
Number of shares purchased by employees (in shares)			96	107
Proceeds received			$ 5,164	$ 5,418
Compensation expense			2,391	$ 2,847
Unrecognized stock-based compensation expense	$ 364		$ 364

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,176,000	$ 5,710,000	$ 17,772,000	$ 14,550,000
Deferred tax assets, valuation allowance, net of impact of reversal of taxable temporary differences	$ 0		$ 0

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - Revolving credit facility - Senior Secured Revolving Credit Facility - USD ($)		3 Months Ended		9 Months Ended
	Dec. 13, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 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		$ 0
Unamortized debt issuance costs		341,000		341,000
Amortization of debt issuance costs		$ 92,000	$ 93,000	$ 277,000	$ 278,000
Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Debt, basis spread on variable rate	1.25%