New Relic (NEWR) 10-Q 4 Aug 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2016	Jul. 22, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	NEWR
Entity Registrant Name	NEW RELIC, INC.
Entity Central Index Key	1,448,056
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		50,838,974

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Current assets:
Cash and cash equivalents	$ 81,655	$ 65,914
Short-term investments	114,474	125,414
Accounts receivable, net of allowance for doubtful accounts of $628 and $664, respectively	28,819	32,514
Prepaid expenses and other current assets	9,762	6,109
Total current assets	234,710	229,951
Property and equipment, net	40,202	40,147
Restricted cash	8,115	8,115
Goodwill	11,828	11,828
Intangible assets, net	3,416	3,661
Other assets	772	742
Total assets	299,043	294,444
Current liabilities:
Accounts payable	7,265	4,450
Accrued compensation and benefits	10,829	11,631
Other current liabilities	5,183	4,725
Deferred revenue	80,661	72,397
Total current liabilities	103,938	93,203
Deferred rent, non-current	5,952	4,658
Deferred revenue, non-current	1,567	2,326
Other liabilities, non-current	1,006	1,024
Total liabilities	112,463	101,211
Commitments and contingencies (Note 6)
Stockholders' equity:
Common stock, $0.001 par value; 100,000 shares authorized at June 30, 2016 and March 31, 2016; 50,997 shares and 50,241 shares issued at June 30, 2016 and March 31, 2016; and 50,737 shares and 49,981 shares outstanding at June 30, 2016 and March 31, 2016	51	50
Treasury stock - at cost (260 shares)	(263)	(263)
Additional paid-in capital	403,918	392,511
Accumulated other comprehensive income	32	22
Accumulated deficit	(217,158)	(199,087)
Total stockholders' equity	186,580	193,233
Total liabilities and stockholders' equity	$ 299,043	$ 294,444

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 628	$ 664
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	50,997,000	50,241,000
Common stock, shares outstanding	50,737,000	49,981,000
Treasury stock, shares	260,000	260,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenue	$ 58,607	$ 38,145
Cost of revenue	11,655	7,866
Gross profit	46,952	30,279
Operating expenses:
Research and development	15,969	8,754
Sales and marketing	38,786	28,683
General and administrative	10,236	7,984
Total operating expenses	64,991	45,421
Loss from operations	(18,039)	(15,142)
Other income (expense):
Interest income	221	141
Interest expense	(21)	(14)
Other expense, net	(111)	(2)
Loss before income taxes	(17,950)	(15,017)
Income tax provision	121	102
Net loss	$ (18,071)	$ (15,119)
Net loss per share, basic and diluted	$ (0.36)	$ (0.32)
Weighted-average shares used to compute net loss per share, basic and diluted	50,224	47,190

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (18,071)	$ (15,119)
Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale securities, net of tax	10	(25)
Comprehensive loss	$ (18,061)	$ (15,144)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (18,071)	$ (15,119)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	4,222	3,301
Stock-based compensation expense	7,338	4,659
Other	293	418
Changes in operating assets and liabilities:
Accounts receivable	3,695	(4,721)
Prepaid expenses and other assets	(3,567)	(384)
Accounts payable	996	(387)
Accrued compensation and benefits and other liabilities	(324)	827
Deferred revenue	7,505	9,332
Deferred rent	1,319	(70)
Net cash provided by (used in) operating activities	3,406	(2,144)
Cash flows from investing activities:
Purchases of property and equipment	(1,527)	(2,671)
Purchases of short-term investments	(24,875)	(43,146)
Proceeds from sale and maturity of short-term investments	35,774	13,625
Capitalized software development costs	(712)	(2,209)
Net cash provided by (used in) investing activities	8,660	(34,401)
Cash flows from financing activities:
Proceeds from issuance of common stock from employee stock options	3,675	1,516
Net cash provided by financing activities	3,675	1,516
Net increase (decrease) in cash and cash equivalents	15,741	(35,029)
Cash and cash equivalents, beginning of period	65,914	105,257
Cash and cash equivalents, end of period	81,655	70,228
Supplemental disclosure of cash flow information:
Cash paid for interest and income taxes	16
Noncash investing and financing activities:
Property and equipment purchased but not paid yet	$ 2,663	$ 1,028

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	1. Description of Business and Summary of Significant Accounting Policies Description of Business Basis of Presentation In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2017. The condensed consolidated balance sheet as of March 31, 2016 included herein was derived from the audited financial statements as of that date. Use of Estimates Concentration of Risk Short-term Investments Business Combinations Goodwill Intangible Assets Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB Issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Business Combination

Business Combination	3 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Business Combination	2. Business Combination In October 2015, the Company completed the acquisition of Opsmatic, Inc. (“Opsmatic”), a provider of live-state server configuration monitoring across dynamic cloud infrastructure, pursuant to which the Company acquired all of the capital stock of Opsmatic for $5.5 million in cash, up to 161,116 shares of the Company’s common stock, a portion of which are subject to forfeiture in the event of certain indemnification claims by the Company, and 12,008 restricted stock units (“RSUs”) with fair values of $39.15 per share, resulting in an aggregate purchase price of $12.3 million. Of the total purchase price, $2.5 million was allocated to acquired technology and an immaterial amount to net assets acquired, with the excess $9.8 million of the purchase price over the fair value of net tangible and intangible assets acquired recorded as goodwill. The Opsmatic technology complements the Company’s existing server and infrastructure monitoring capabilities. The acquisition has been accounted for as a business combination under the acquisition method. Goodwill generated from the acquisition is attributable to expected synergies from future growth and potential future monetization opportunities, and is not deductible for tax purposes. Pro forma revenue and results of operations have not been presented because the historical results of Opsmatic were not material to the Company’s condensed consolidated financial statements in any period presented. The acquisition also included an obligation to issue up to 98,115 shares of its common stock, with an aggregate grant date fair value of $3.8 million, to certain employees of Opsmatic, contingent upon their continuous employment with the Company. As such, compensation expense will be recorded on a straight-line basis over the requisite service period of 30 months. As of June 30, 2016, 59,687 of these shares were issued, 42,996 of which are subject to repurchase by the Company.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
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, 2016 and March 31, 2016 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of June 30, 2016 Level 1 Level 2 Level 3 Total Description: Money market funds $ 39,000 $ — $ — $ 39,000 Certificates of deposit — 3,400 — 3,400 Commerical paper — 23,868 — 23,868 Corporate notes and bonds — 15,550 — 15,550 U.S. treasury securities 2,300 — — 2,300 U.S. government agencies — 77,651 — 77,651 Restricted cash - money market funds 8,115 — — 8,115 Total $ 49,415 $ 120,469 $ — $ 169,884 Included in cash and cash equivalents $ 47,295 Included in short-term investments $ 114,474 Included in restricted cash $ 8,115 Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 36,118 $ — $ — $ 36,118 Corporate notes and bonds — 15,933 — 15,933 U.S. treasury securities 2,297 — — 2,297 U.S. government agencies — 107,184 — 107,184 Restricted cash - money market funds 8,115 — — 8,115 Total $ 46,530 $ 123,117 $ — $ 169,647 Included in cash and cash equivalents $ 36,118 Included in short-term investments $ 125,414 Included in restricted cash $ 8,115 There were no transfers between fair value measurement levels during the three months ended June 30, 2016. Gross unrealized gains or losses for cash equivalents and available-for-sale marketable securities as of June 30, 2016 and March 31, 2016 were not material. As of June 30, 2016 and March 31, 2016, 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, 2016 and March 31, 2016 (in thousands): June 30, 2016 March 31, 2016 Due in one year $ 102,629 $ 103,822 Due in one to two years 11,845 21,592 Total $ 114,474 $ 125,414 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.

Property and Equipment

Property and Equipment	3 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	4. Property and Equipment Property and equipment, net, consisted of the following (in thousands): June 30, 2016 March 31, 2016 Computers, software, and equipment $ 5,003 $ 4,835 Site operation equipment 16,471 14,793 Furniture and fixtures 923 917 Leasehold improvements 23,725 22,217 Capitalized software development costs 28,718 28,054 Total property and equipment 74,840 70,816 Less: accumulated depreciation and amortization (34,638 ) (30,669 ) Total property and equipment, net $ 40,202 $ 40,147 Depreciation and amortization expense related to property and equipment was $4.0 million and $3.0 million for the three months ended June 30, 2016 and 2015, respectively.

Goodwill and Purchased Intangib

Goodwill and Purchased Intangibles Assets	3 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Purchased Intangibles Assets	5. Goodwill and Purchased Intangibles Assets There were no changes to the carrying amount of goodwill for the three months ended June 30, 2016. Purchased intangible assets subject to amortization as of June 30, 2016 consist of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 4,900 $ (1,539 ) $ 3,361 Customer relationships 100 (86 ) $ 14 Other intangible assets 300 (259 ) $ 41 $ 5,300 $ (1,884 ) $ 3,416 Purchased intangible assets subject to amortization as of March 31, 2016 consist of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 4,900 $ (1,339 ) $ 3,561 Customer relationships 100 (75 ) 25 Other intangible assets 300 (225 ) 75 $ 5,300 $ (1,639 ) $ 3,661 Amortization expense of purchased intangible assets was $0.2 million and $0.3 million for the three months ended June 30, 2016 and 2015, respectively. Estimated future amortization expense as of June 30, 2016 is as follows (in thousands): 2017 (remaining 9 months) $ 1,147 2018 1,580 2019 689 $ 3,416

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Leases Deferred Rent Rent expense, net of sublease income, for operating leases was $2.4 million and $1.3 million for the three months ended June 30, 2016 and 2015, respectively. Future minimum lease payments under non-cancelable operating leases as of June 30, 2016 were as follows (in thousands): Years Ending March 31, Operating Leases 2017 (remaining 9 months) $ 6,605 2018 10,250 2019 10,452 2020 10,742 2021 7,609 Thereafter 15,417 Total minimum future lease payments $ 61,075 Purchase Commitments Legal Proceedings On November 5, 2012, CA, Inc. filed suit against the Company in the United States District Court, Eastern District of New York for alleged patent infringement. CA, Inc.’s complaint against the Company claims that certain aspects of the Company’s products infringe certain patents held by CA, Inc. Discovery is complete in the case, and the court has ruled on summary judgment motions filed by both parties. A trial date has not been set as of June 30, 2016. The Company cannot at this time predict the likely outcome of this proceeding or estimate the amount or range of loss or possible loss that may arise from it. The Company has not accrued any loss related to the outcome of this case as of June 30, 2016. In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s products when used for their intended purposes infringe the intellectual property rights of such other third parties, or other claims made against certain parties. To date, the Company has not incurred any costs as a result of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements. In addition, the Company indemnifies its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. The Company does not currently believe there is a reasonable possibility that a loss may have been incurred under these indemnification obligations. To date, there have been no claims under any such indemnification provisions.

Common Stock and Stockholders'

Common Stock and Stockholders' Equity	3 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Common Stock and Stockholders' Equity	7. Common Stock and Stockholders’ Equity Common stock authorized Employee Stock Purchase Plan 2008 Equity Incentive Plan 2014 Equity Incentive Plan The following table summarizes the Company’s stock option and RSU award activities for the three months ended June 30, 2016 (in thousands, except per share information): Options Outstanding RSUs Outstanding Weighted- Contractual Term (in years) Weighted- Grant Fair Weighted- Contractual Term (in years) Number of Shares Weighted- Exercise Aggregate Intrinsic Number of Shares Aggregate Intrinsic Outstanding - April 1, 2016 7,050 $ 13.20 6.5 $ 95,326 1,549 $ 29.73 3.1 $ 40,387 Stock options granted 257 25.66 RSUs granted 924 25.95 Stock options exercised (612 ) 6.35 13,555 RSUs vested (144 ) 30.15 Stock options canceled/forfeited (151 ) 19.08 RSUs canceled/forfeited (124 ) 28.87 Outstanding - June 30, 2016 6,544 $ 14.20 6.6 $ 101,698 2,205 $ 28.17 3.3 $ 64,788 Restricted Stock Awards Stock Options Granted to Nonemployees Stock-Based Compensation Expense Three Months Ended June 30, 2016 2015 Cost of revenue $ 381 $ 251 Research and development 2,541 1,038 Sales and marketing 2,762 1,976 General and administrative 1,654 1,394 Total stock-based compensation expense $ 7,338 $ 4,659 As of June 30, 2016, unrecognized stock-based compensation cost related to outstanding unvested stock options was $28.2 million, which is expected to be recognized over a weighted-average period of approximately 2.3 years. As of June 30, 2016, unrecognized stock-based compensation cost related to outstanding unvested stock awards was $59.4 million, which is expected to be recognized over a weighted-average period of approximately 3.2 years.

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are expected to be reinvested indefinitely. The Company recorded an income tax provision of $0.1 million for each of the three months ended June 30, 2016 and 2015, respectively, related to foreign income taxes and state minimum taxes. Based on the available objective evidence during the three months ended June 30, 2016, the Company believes it is more likely than not that the tax benefits of the U.S. losses incurred during the three months ended June 30, 2016 may not be realized. Accordingly, the Company recorded a full valuation allowance against the tax benefits of the U.S. losses incurred during the three months ended June 30, 2016. The primary difference between the effective tax rate and the local statutory tax rate relates to the valuation allowance on the Company’s U.S. losses, foreign tax rate differences, and amortization of a deferred charge associated with the intercompany transfer of intellectual property from prior periods.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	9. Net Loss Per Share Basic loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee share-based awards and warrants. Diluted net loss per common share is computed giving effect to all potential dilutive common shares, including common stock issuable upon exercise of stock options and unvested restricted common stock. As the Company had net losses for each of the three months ended June 30, 2016 and 2015, all potential common shares were determined to be anti-dilutive. The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended June 30, 2016 2015 Numerator: Net loss $ (18,071 ) $ (15,119 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 50,224 47,190 Net loss per share—basic and diluted $ (0.36 ) $ (0.32 ) The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of June 30, 2016 2015 Options to purchase common stock 6,544 9,320 Common stock reserved for issuance in connection with acquisition 90 129 Restricted stock units 2,205 1,229 ESPP shares 104 — 8,943 10,678

Revenue by Geographic Location

Revenue by Geographic Location	3 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Revenue by Geographic Location	10. Revenue by Geographic Location The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Three Months Ended June 30, 2016 2015 United States $ 39,810 $ 25,394 EMEA 10,929 7,407 APAC 4,540 2,944 Other 3,328 2,400 Total revenue $ 58,607 $ 38,145 Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of June 30, 2016 and March 31, 2016.

Description of Business and S17

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Description of Business	Description of Business
Basis of Presentation	Basis of Presentation In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2017. The condensed consolidated balance sheet as of March 31, 2016 included herein was derived from the audited financial statements as of that date.
Use of Estimates	Use of Estimates
Concentration of Risk	Concentration of Risk
Short-term Investments	Short-term Investments
Business Combinations	Business Combinations
Goodwill	Goodwill
Intangible Assets	Intangible Assets
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB Issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Information about Financial Assets Measured at Fair Value on Recurring Basis	The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2016 and March 31, 2016 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of June 30, 2016 Level 1 Level 2 Level 3 Total Description: Money market funds $ 39,000 $ — $ — $ 39,000 Certificates of deposit — 3,400 — 3,400 Commerical paper — 23,868 — 23,868 Corporate notes and bonds — 15,550 — 15,550 U.S. treasury securities 2,300 — — 2,300 U.S. government agencies — 77,651 — 77,651 Restricted cash - money market funds 8,115 — — 8,115 Total $ 49,415 $ 120,469 $ — $ 169,884 Included in cash and cash equivalents $ 47,295 Included in short-term investments $ 114,474 Included in restricted cash $ 8,115 Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 36,118 $ — $ — $ 36,118 Corporate notes and bonds — 15,933 — 15,933 U.S. treasury securities 2,297 — — 2,297 U.S. government agencies — 107,184 — 107,184 Restricted cash - money market funds 8,115 — — 8,115 Total $ 46,530 $ 123,117 $ — $ 169,647 Included in cash and cash equivalents $ 36,118 Included in short-term investments $ 125,414 Included in restricted cash $ 8,115
Classification of Available-for-Sale Short-Term Investments by Contractual Maturities	The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of June 30, 2016 and March 31, 2016 (in thousands): June 30, 2016 March 31, 2016 Due in one year $ 102,629 $ 103,822 Due in one to two years 11,845 21,592 Total $ 114,474 $ 125,414

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net, consisted of the following (in thousands): June 30, 2016 March 31, 2016 Computers, software, and equipment $ 5,003 $ 4,835 Site operation equipment 16,471 14,793 Furniture and fixtures 923 917 Leasehold improvements 23,725 22,217 Capitalized software development costs 28,718 28,054 Total property and equipment 74,840 70,816 Less: accumulated depreciation and amortization (34,638 ) (30,669 ) Total property and equipment, net $ 40,202 $ 40,147

Goodwill and Purchased Intang20

Goodwill and Purchased Intangibles Assets (Tables)	3 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Purchased Intangible Assets Subject to Amortization	Purchased intangible assets subject to amortization as of June 30, 2016 consist of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 4,900 $ (1,539 ) $ 3,361 Customer relationships 100 (86 ) $ 14 Other intangible assets 300 (259 ) $ 41 $ 5,300 $ (1,884 ) $ 3,416 Purchased intangible assets subject to amortization as of March 31, 2016 consist of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 4,900 $ (1,339 ) $ 3,561 Customer relationships 100 (75 ) 25 Other intangible assets 300 (225 ) 75 $ 5,300 $ (1,639 ) $ 3,661
Schedule of Estimated Future Amortization Expense	Estimated future amortization expense as of June 30, 2016 is as follows (in thousands): 2017 (remaining 9 months) $ 1,147 2018 1,580 2019 689 $ 3,416

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Non-Cancelable Operating Leases	Future minimum lease payments under non-cancelable operating leases as of June 30, 2016 were as follows (in thousands): Years Ending March 31, Operating Leases 2017 (remaining 9 months) $ 6,605 2018 10,250 2019 10,452 2020 10,742 2021 7,609 Thereafter 15,417 Total minimum future lease payments $ 61,075

Common Stock and Stockholders22

Common Stock and Stockholders' Equity (Tables)	3 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of Stock Option and RSU Award Activities	The following table summarizes the Company’s stock option and RSU award activities for the three months ended June 30, 2016 (in thousands, except per share information): Options Outstanding RSUs Outstanding Weighted- Contractual Term (in years) Weighted- Grant Fair Weighted- Contractual Term (in years) Number of Shares Weighted- Exercise Aggregate Intrinsic Number of Shares Aggregate Intrinsic Outstanding - April 1, 2016 7,050 $ 13.20 6.5 $ 95,326 1,549 $ 29.73 3.1 $ 40,387 Stock options granted 257 25.66 RSUs granted 924 25.95 Stock options exercised (612 ) 6.35 13,555 RSUs vested (144 ) 30.15 Stock options canceled/forfeited (151 ) 19.08 RSUs canceled/forfeited (124 ) 28.87 Outstanding - June 30, 2016 6,544 $ 14.20 6.6 $ 101,698 2,205 $ 28.17 3.3 $ 64,788
Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses	Stock-based compensation expense attributed to cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Three Months Ended June 30, 2016 2015 Cost of revenue $ 381 $ 251 Research and development 2,541 1,038 Sales and marketing 2,762 1,976 General and administrative 1,654 1,394 Total stock-based compensation expense $ 7,338 $ 4,659

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Computation of Net Loss Per Share, Basic and Diluted	The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended June 30, 2016 2015 Numerator: Net loss $ (18,071 ) $ (15,119 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 50,224 47,190 Net loss per share—basic and diluted $ (0.36 ) $ (0.32 )
Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents	The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of June 30, 2016 2015 Options to purchase common stock 6,544 9,320 Common stock reserved for issuance in connection with acquisition 90 129 Restricted stock units 2,205 1,229 ESPP shares 104 — 8,943 10,678

Revenue by Geographic Location

Revenue by Geographic Location (Tables)	3 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Areas	The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Three Months Ended June 30, 2016 2015 United States $ 39,810 $ 25,394 EMEA 10,929 7,407 APAC 4,540 2,944 Other 3,328 2,400 Total revenue $ 58,607 $ 38,145

Description of Business and S25

Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended		12 Months Ended	100 Months Ended
	Jun. 30, 2016USD ($)Customer	Jun. 30, 2015Customer	Mar. 31, 2016USD ($)Customer	Jun. 30, 2016USD ($)
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Company incorporation date	Feb. 20, 2008
Entity Incorporation, State Name	Delaware
Other-than-temporary impaired investments | $	$ 0		$ 0
Goodwill impairment | $				$ 0
Accounts Receivable [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Number of customers | Customer	1		0
Revenue [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Number of customers | Customer	0	0
Credit Concentration Risk [Member] | Accounts Receivable [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk, percentage	11.00%		10.00%
Credit Concentration Risk [Member] | Revenue [Member]
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk, percentage	10.00%	10.00%

Business Combination - Addition

Business Combination - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2015	Jun. 30, 2016	Mar. 31, 2016
Business Acquisition [Line Items]
Preliminary purchase price allocation, goodwill		$ 11,828	$ 11,828
Opsmatic, Inc. [Member]
Business Acquisition [Line Items]
Purchase consideration paid in cash	$ 5,500
Number of shares issued to acquire capital stock	161,116
Business acquisition, aggregate purchase price	$ 12,300
Preliminary purchase price allocation, goodwill	$ 9,800
Business acquisition obligation to issue common stock, shares	98,115
Service period of compensation expense	30 months
Number of common stock shares issued		59,687
Number of common stock shares issued, subject to repurchase		42,996
Common stock,aggregate grant date fair value	$ 3,800
Opsmatic, Inc. [Member] | Restricted Stock Units [Member]
Business Acquisition [Line Items]
Number of shares issued to acquire capital stock	12,008
Fair value of shares issued to acquire capital stock	$ 39.15
Technology [Member] | Opsmatic, Inc. [Member]
Business Acquisition [Line Items]
Preliminary purchase price allocation, identifiable intangible assets	$ 2,500

Fair Value Measurements - Infor

Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	$ 169,884	$ 169,647
Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	47,295	36,118
Short-Term Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	114,474	125,414
Restricted Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,115	8,115
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	39,000	36,118
Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	23,868
Corporate Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	15,550	15,933
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	2,300	2,297
US Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	77,651	107,184
Restricted Cash - Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,115	8,115
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	3,400
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	49,415	46,530
Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	39,000	36,118
Level 1 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	2,300	2,297
Level 1 [Member] | Restricted Cash - Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,115	8,115
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	120,469	123,117
Level 2 [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	23,868
Level 2 [Member] | Corporate Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	15,550	15,933
Level 2 [Member] | US Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	77,651	$ 107,184
Level 2 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	$ 3,400

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Transfers between fair value measurement levels	$ 0
Unrealized loss position of securities for more than 12 months	$ 0	$ 0

Fair Value Measurements - Class

Fair Value Measurements - Classification of Available-for-Sale Short-Term Investments by Contractual Maturities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Due in one year	$ 102,629	$ 103,822
Due in one to two years	11,845	21,592
Total	$ 114,474	$ 125,414

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 74,840	$ 70,816
Less: accumulated depreciation and amortization	(34,638)	(30,669)
Total property and equipment, net	40,202	40,147
Computers, Software, and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	5,003	4,835
Site Operation Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	16,471	14,793
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	923	917
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	23,725	22,217
Capitalized Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 28,718	$ 28,054

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 4	$ 3

Goodwill and Purchased Intang32

Goodwill and Purchased Intangibles Assets - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Change in carrying amount of goodwill	$ 0
Amortization expense	$ 200,000	$ 300,000

Goodwill and Purchased Intang33

Goodwill and Purchased Intangibles Assets - Schedule of Purchased Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying	$ 5,300	$ 5,300
Accumulated Amortization	(1,884)	(1,639)
Net Carrying Amount	3,416	3,661
Developed Technology Rights [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying	4,900	4,900
Accumulated Amortization	(1,539)	(1,339)
Net Carrying Amount	3,361	3,561
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying	100	100
Accumulated Amortization	(86)	(75)
Net Carrying Amount	14	25
Other Intangible Assets [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying	300	300
Accumulated Amortization	(259)	(225)
Net Carrying Amount	$ 41	$ 75

Goodwill and Purchased Intang34

Goodwill and Purchased Intangibles Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2017 (remaining 9 months)	$ 1,147
2,018	1,580
2,019	689
Net Carrying Amount	$ 3,416	$ 3,661

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Operating Leased Assets [Line Items]
Deferred rent	$ 6,400,000		$ 5,100,000
Rent expense, net of sublease income, for operating leases	2,400,000	$ 1,300,000
Purchase commitments	9,400,000		$ 11,900,000
Accrued loss	$ 0
Minimum [Member]
Operating Leased Assets [Line Items]
Non-cancelable operating lease agreements, expiration year	2,017
Maximum [Member]
Operating Leased Assets [Line Items]
Non-cancelable operating lease agreements, expiration year	2,023

Commitments and Contingencies36

Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands	Jun. 30, 2016USD ($)
Leases [Abstract]
2017 (remaining 9 months)	$ 6,605
2,018	10,250
2,019	10,452
2,020	10,742
2,021	7,609
Thereafter	15,417
Total minimum future lease payments	$ 61,075

Common Stock and Stockholders37

Common Stock and Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended
	Dec. 31, 2014	May 31, 2014	Aug. 31, 2013	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Class of Stock [Line Items]
Common stock, shares authorized				100,000,000		100,000,000
Common stock, par value				$ 0.001		$ 0.001
Stock-based compensation expense				$ 7,338	$ 4,659
Fair value granted restricted stock awards shares of common stock				924,000
Grant date fair value of restricted stock awards, per share				$ 25.95
Stock options granted				257,000
Stock-based compensation cost expected to be recognized over weighted-average period				2 years 3 months 18 days
Unrecognized stock-based compensation cost related to outstanding unvested stock awards				$ 28,200
Expected to vest unrecognized stock-based compensation cost related to outstanding unvested stock options				59,400
Nonemployees [Member]
Class of Stock [Line Items]
Stock-based compensation expense				$ 200	$ 200
Stock options granted				15,084	4,301
Restricted Stock Awards [Member]
Class of Stock [Line Items]
Stock-based compensation expense				$ 100	$ 100
Fair value granted restricted stock awards shares of common stock		40,000	100,000
Fair value of the restricted stock awards, value		$ 700	$ 900
Grant date fair value of restricted stock awards, per share		$ 16.93	$ 9.37
Common stock vesting period		4 years	4 years
Restricted stock awards, vested				100,832
Unvested Stock Options [Member]
Class of Stock [Line Items]
Stock based compensation cost is expected to be recognized over a weighted-average period				3 years 2 months 12 days
2014 Equity Incentive Plan [Member]
Class of Stock [Line Items]
Shares reserved for issuance under plan	5,000,000
Shares available for issuance				8,153,127
Shares available for grant under plan	5,184,878
Increase in shares available under plan, percentage of outstanding common stock shares	5.00%
Employee Stock Purchase Plan [Member]
Class of Stock [Line Items]
Shares reserved for issuance under plan				1,000,000
Additional shares available for issuance under the plan	500,000
Percentage of common stock shares increased under the plan	1.00%
Stock-based compensation expense				$ 500
Shares available for issuance				1,859,830
Common stock purchased under Employee Stock Purchase Plan				0	0
2008 Equity Incentive Plan [Member]
Class of Stock [Line Items]
Shares available for issuance				0

Common Stock and Stockholders38

Common Stock and Stockholders' Equity - Schedule of Stock Option and RSU Award Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Number of Shares
Beginning balance	7,050
Stock options granted	257
Stock options exercised	(612)
Stock options canceled/forfeited	(151)
Ending balance	6,544	7,050
Weighted-Average Exercise Price
Beginning balance	$ 13.20
Stock options granted	25.66
Stock options exercised	6.35
Stock options canceled/forfeited	19.08
Ending balance	$ 14.20	$ 13.20
Weighted-Average Remaining Contractual Term (in years)
Balance	6 years 7 months 6 days	6 years 6 months
Aggregate Intrinsic Value
Stock options exercised	$ 13,555
Aggregate Intrinsic Value, Outstanding	$ 101,698	$ 95,326
Number of Shares
Beginning balance	1,549
RSUs granted	924
RSUs vested	(144)
RSUs canceled/forfeited	(124)
Ending balance	2,205	1,549
Weighted-Average Grant Date Fair Value
Beginning balance	$ 29.73
RSUs granted	25.95
RSUs vested	30.15
RSUs canceled/forfeited	28.87
Ending balance	$ 28.17	$ 29.73
Weighted-Average Remaining Contractual Term (in years)
Balance	3 years 3 months 18 days	3 years 1 month 6 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 64,788	$ 40,387

Common Stock and Stockholders39

Common Stock and Stockholders' Equity - Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 7,338	$ 4,659
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	381	251
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,541	1,038
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,762	1,976
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 1,654	$ 1,394

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Tax Contingency [Line Items]
Income tax provision (benefit)	$ 121,000	$ 102,000
U.S. [Member]
Income Tax Contingency [Line Items]
Income tax provision (benefit)	$ 0

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Net Loss Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net loss	$ (18,071)	$ (15,119)
Denominator:
Weighted average shares used to compute net loss per share, basic and diluted	50,224	47,190
Net loss per share-basic and diluted	$ (0.36)	$ (0.32)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents (Detail) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per common share	8,943	10,678
Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per common share	104
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per common share	6,544	9,320
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per common share	2,205	1,229
Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per common share	90	129

Revenue by Geographic Locatio43

Revenue by Geographic Location - Schedule of Revenue by Geographic Areas (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Total revenue	$ 58,607	$ 38,145
United States [Member]
Segment Reporting Information [Line Items]
Total revenue	39,810	25,394
EMEA [Member]
Segment Reporting Information [Line Items]
Total revenue	10,929	7,407
APAC [Member]
Segment Reporting Information [Line Items]
Total revenue	4,540	2,944
Other [Member]
Segment Reporting Information [Line Items]
Total revenue	$ 3,328	$ 2,400