Fair Value Measurements | 3. Fair Value Measurements The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2015 and March 31, 2015 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of June 30, 2015 Level 1 Level 2 Level 3 Total Description: Money market funds $ 36,123 $ — $ — $ 36,123 Commercial paper — 10,747 — 10,747 Corporate notes and bonds — 38,030 — 38,030 U.S. treasury securities 2,297 — — 2,297 U.S. government agencies — 73,726 — 73,726 Restricted cash - money market funds 4,623 — — 4,623 Total $ 43,043 $ 122,503 $ — $ 165,546 Included in cash and cash equivalents $ 36,123 Included in short-term investments $ 124,800 Included in restricted cash $ 4,623 Fair Value Measurements as of March 31, 2015 Level 1 Level 2 Level 3 Total Description: Money market funds $ 56,455 $ — $ — $ 56,455 Certificates of deposit — 1,800 — 1,800 Commercial paper — 30,288 — 30,288 Corporate notes and bonds — 38,715 — 38,715 U.S. treasury securities 500 — — 500 U.S. government agencies — 33,199 — 33,199 Restricted cash - money market funds 4,623 — — 4,623 Total $ 61,578 $ 104,002 $ — $ 165,580 Included in cash and cash equivalents $ 65,454 Included in short-term investments $ 95,503 Included in restricted cash $ 4,623 There were no transfers between fair value measurement levels during the three months ended June 30, 2015. Level 3 instruments consisted solely of the Company’s preferred stock warrant liability. Prior to the Company’s IPO, outstanding warrants to purchase shares of the Company’s Series A and Series D convertible preferred stock were classified as other liabilities. The initial liability recorded was adjusted for changes in the fair values of the Company’s preferred stock warrants during each reporting period and was recorded as a component of other income (expense), net in the statement of operations. The Company estimated the fair values of these warrants using the Black-Scholes option-pricing model, based on the inputs for the estimated fair value of the underlying convertible preferred stock at the valuation measurement date, the remaining contractual term of the warrant, risk-free interest rates, expected dividend rates and expected volatility of the price of the underlying convertible preferred stock. These estimates were based on subjective assumptions. During the three months ended June 30, 2014, the Company recognized a gain in the amount of $0.1 million, which was recorded as other income in the Company’s condensed consolidated statements of operations. Upon the closing of the IPO in December 2014, the Company ceased recording any further related periodic fair value adjustments. Gross unrealized gains or losses for cash equivalents and available-for-sale marketable securities as of June 30, 2015 and March 31, 2015 were not material. As of June 30, 2015 and March 31, 2015, there were no securities that were in an unrealized loss position for more than 12 months. The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of June 30, 2015 and March 31, 2015 (in thousands): June 30, March 31, 2015 2015 Due in one year $ 76,465 $ 53,287 Due in one to two years 48,335 42,216 Total $ 124,800 $ 95,503 For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. |