Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | May 11, 2017 | Sep. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NEWR | ||
Entity Registrant Name | NEW RELIC, INC. | ||
Entity Central Index Key | 1,448,056 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 53,505,815 | ||
Entity Public Float | $ 1,318,685,735 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 88,305 | $ 65,914 |
Short-term investments | 118,101 | 125,414 |
Accounts receivable, net of allowance for doubtful accounts of $1,117 and $664, respectively | 62,032 | 32,514 |
Prepaid expenses and other current assets | 8,169 | 6,109 |
Total current assets | 276,607 | 229,951 |
Property and equipment, net | 50,728 | 40,147 |
Restricted cash | 8,115 | 8,115 |
Goodwill | 11,828 | 11,828 |
Intangible assets, net | 2,499 | 3,661 |
Other assets, non-current | 2,492 | 742 |
Total assets | 352,269 | 294,444 |
Current liabilities: | ||
Accounts payable | 6,522 | 4,450 |
Accrued compensation and benefits | 15,935 | 11,631 |
Other current liabilities | 7,607 | 4,725 |
Deferred revenue | 125,269 | 72,397 |
Total current liabilities | 155,333 | 93,203 |
Deferred rent, non-current | 8,272 | 4,658 |
Deferred revenue, non-current | 1,135 | 2,326 |
Other liabilities, non-current | 685 | 1,024 |
Total liabilities | 165,425 | 101,211 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 53 | 50 |
Treasury stock-at cost | (263) | (263) |
Additional paid-in capital | 447,314 | 392,511 |
Accumulated other comprehensive income (loss) | (96) | 22 |
Accumulated deficit | (260,164) | (199,087) |
Total stockholders’ equity | 186,844 | 193,233 |
Total liabilities and stockholders’ equity | $ 352,269 | $ 294,444 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,117 | $ 664 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,539,000 | 50,241,000 |
Common stock, shares outstanding (in shares) | 53,279,000 | 49,981,000 |
Treasury stock (in shares) | 260,000 | 260,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 263,479 | $ 181,309 | $ 110,391 |
Cost of revenue | 49,990 | 37,183 | 21,802 |
Gross profit | 213,489 | 144,126 | 88,589 |
Operating expenses: | |||
Research and development | 61,054 | 46,394 | 24,024 |
Sales and marketing | 168,163 | 129,677 | 89,162 |
General and administrative | 45,615 | 35,693 | 25,319 |
Total operating expenses | 274,832 | 211,764 | 138,505 |
Loss from operations | (61,343) | (67,638) | (49,916) |
Other income (expense): | |||
Interest income | 1,189 | 647 | 176 |
Interest expense | (87) | (68) | (104) |
Other expense, net | (572) | (126) | (390) |
Loss before income taxes | (60,813) | (67,185) | (50,234) |
Income tax provision (benefit) | 264 | 302 | (85) |
Net loss | $ (61,077) | $ (67,487) | $ (50,149) |
Net loss per share, basic and diluted (in usd per share) | $ (1.18) | $ (1.39) | $ (1.98) |
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 51,715 | 48,410 | 25,290 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (61,077) | $ (67,487) | $ (50,149) |
Other comprehensive income (loss): | |||
Unrealized (loss)/gain on available-for-sale securities, net of tax | (118) | 7 | 15 |
Comprehensive loss | $ (61,195) | $ (67,480) | $ (50,134) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Convertible Preferred Stock |
Beginning balance (in shares) at Mar. 31, 2014 | 21,357 | ||||||
Beginning balance at Mar. 31, 2014 | $ 95,917 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Issuance of Series F convertible preferred stock—net of issuance cost (in shares) | 3,456 | ||||||
Issuance of Series F convertible preferred stock—net of issuance cost | $ 97,243 | ||||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 24,886 | (24,813) | |||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ 193,160 | $ 25 | $ 193,135 | $ (193,160) | |||
Ending balance (in shares) at Mar. 31, 2015 | 0 | ||||||
Ending balance at Mar. 31, 2015 | $ 0 | ||||||
Beginning balance (in shares) at Mar. 31, 2014 | 16,063 | 260 | |||||
Beginning balance at Mar. 31, 2014 | (64,665) | $ 16 | 17,033 | $ (263) | $ 0 | $ (81,451) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 24,886 | (24,813) | |||||
Conversion of convertible preferred stock to common stock upon initial public offering | 193,160 | $ 25 | 193,135 | $ (193,160) | |||
Reclassification of preferred stock warrant liabilities into additional paid-in capital | 912 | 912 | |||||
Issuance of common stock upon exercise of warrants (in shares) | 40 | ||||||
Issuance of common stock upon exercise of warrants | 0 | ||||||
Issuance of common stock upon initial public offering—net of offering costs (in shares) | 5,750 | ||||||
Issuance of common stock upon initial public offering—net of offering costs | 119,924 | $ 6 | 119,918 | ||||
Issuance of common stock for acquisition of Few Ducks, S.L. (in shares) | 108 | ||||||
Issuance of common stock for acquisition of Few Ducks, S.L. | 1,627 | 1,627 | |||||
Issuance of common stock for acquisition of Few Ducks, S.L.—Escrow Shares | 188 | 188 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 490 | ||||||
Issuance of common stock upon exercise of stock options | 1,209 | 1,209 | |||||
Issuance of restricted stock awards subject to vesting (in shares) | 40 | ||||||
Issuance of restricted stock awards subject to vesting | 0 | ||||||
Stock-based compensation expense | 12,649 | 12,649 | |||||
Other comprehensive income, net | 15 | 15 | |||||
Net loss | (50,149) | (50,149) | |||||
Ending balance (in shares) at Mar. 31, 2015 | 47,377 | 260 | |||||
Ending balance at Mar. 31, 2015 | 214,870 | $ 47 | 346,671 | $ (263) | 15 | (131,600) | |
Ending balance (in shares) at Mar. 31, 2016 | 0 | ||||||
Ending balance at Mar. 31, 2016 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock for acquisition of Few Ducks, S.L. (in shares) | 263 | ||||||
Issuance of common stock for acquisition of Few Ducks, S.L. | 6,777 | 6,777 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 2,324 | ||||||
Issuance of common stock upon exercise of stock options | 12,521 | $ 3 | 12,518 | ||||
Issuance of restricted stock awards subject to vesting (in shares) | 166 | ||||||
Issuance of restricted stock awards subject to vesting | 0 | ||||||
Stock-based compensation expense | 24,302 | 24,302 | |||||
Other comprehensive income, net | 7 | 7 | |||||
Issuance of common stock related to employee stock purchase plan (in shares) | 111 | ||||||
Issuance of common stock related to employee stock purchase plan | 2,243 | 2,243 | |||||
Net loss | (67,487) | (67,487) | |||||
Ending balance (in shares) at Mar. 31, 2016 | 50,241 | 260 | |||||
Ending balance at Mar. 31, 2016 | 193,233 | $ 50 | 392,511 | $ (263) | 22 | (199,087) | |
Ending balance (in shares) at Mar. 31, 2017 | 0 | ||||||
Ending balance at Mar. 31, 2017 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock for acquisition of Few Ducks, S.L. (in shares) | 47 | ||||||
Issuance of common stock for acquisition of Few Ducks, S.L. | $ 0 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 2,474 | 2,474 | |||||
Issuance of common stock upon exercise of stock options | $ 16,667 | $ 2 | 16,665 | ||||
Issuance of restricted stock awards subject to vesting (in shares) | 582 | ||||||
Issuance of restricted stock awards subject to vesting | 0 | $ 1 | (1) | ||||
Stock-based compensation expense | 32,856 | 32,856 | |||||
Other comprehensive income, net | (118) | (118) | |||||
Issuance of common stock related to employee stock purchase plan (in shares) | 195 | ||||||
Issuance of common stock related to employee stock purchase plan | 5,283 | 5,283 | |||||
Net loss | (61,077) | (61,077) | |||||
Ending balance (in shares) at Mar. 31, 2017 | 53,539 | 260 | |||||
Ending balance at Mar. 31, 2017 | $ 186,844 | $ 53 | $ 447,314 | $ (263) | $ (96) | $ (260,164) |
Consolidated Statements of Con7
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - Convertible Preferred Stock $ in Thousands | 12 Months Ended |
Mar. 31, 2015USD ($) | |
Issuance of Series F convertible preferred stock, issuance cost | $ 2,757 |
Issuance of common stock upon initial public offering, offering costs | $ 3,069 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (61,077) | $ (67,487) | $ (50,149) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 18,805 | 15,119 | 9,044 |
Stock-based compensation expense | 31,946 | 23,268 | 11,666 |
Other | 1,125 | 2,420 | 36 |
Changes in operating assets and liabilities, net of acquisition of business: | |||
Accounts receivable, net | (30,251) | (19,456) | (8,565) |
Prepaid expenses and other assets | (3,658) | (1,834) | (1,449) |
Accounts payable | 658 | (774) | 1,012 |
Accrued compensation and benefits and other liabilities | 5,550 | 7,205 | 4,790 |
Deferred revenue | 51,681 | 45,414 | 18,948 |
Deferred rent | 4,149 | 131 | 1,046 |
Net cash provided by (used in) operating activities | 18,928 | 4,006 | (13,621) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (21,430) | (11,732) | (12,628) |
Acquisition of business, net of cash acquired | 0 | (5,498) | (2,262) |
Decrease (increase) in restricted cash | 0 | (3,492) | 978 |
Purchases of short-term investments | (168,938) | (110,978) | (114,468) |
Proceeds from sale and maturity of short-term investments | 175,877 | 80,397 | 18,717 |
Capitalized software development costs | (4,029) | (6,748) | (9,017) |
Net cash used in investing activities | (18,520) | (58,051) | (118,680) |
Cash flows from financing activities: | |||
Proceeds from issuances of preferred stock, net of issuance costs | 97,243 | ||
Proceeds from initial public offering, net of issuance costs | 119,924 | ||
Principal payments on debt | (271) | ||
Proceeds from employee stock purchase plan | 5,283 | 2,243 | |
Proceeds from issuance of common stock | 16,700 | 12,459 | 1,209 |
Net cash provided by financing activities | 21,983 | 14,702 | 218,105 |
Net increase (decrease) in cash and cash equivalents | 22,391 | (39,343) | 85,804 |
Cash and cash equivalents, beginning of period | 65,914 | 105,257 | 19,453 |
Cash and cash equivalents, end of period | 88,305 | 65,914 | 105,257 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest and income taxes | 253 | 169 | 91 |
Noncash investing and financing activities: | |||
Issuance of common stock for the acquisition of business | 6,777 | 1,826 | |
Conversion and net exercise of preferred stock warrants | 632 | ||
Net exercise of preferred stock warrants in connection with the initial public offering | 280 | ||
Property and equipment purchased but not paid yet | $ 3,011 | $ 828 | $ 464 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business —New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008 . The Company is a software-as-a-service provider of digital intelligence products which allow users to monitor software and infrastructure performance and measure end user activities across desktop and mobile devices with applications deployed in the cloud or in a data center. New Relic’s digital intelligence products and platform capabilities enable software developers, IT operations, and business users to better understand their digital business. Basis of Presentation and Consolidation —The consolidated financial statements include the accounts of New Relic and its wholly owned subsidiaries. These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP. All intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Translation and Transactions —The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. Foreign currency denominated revenue and expenses have been re-measured using the average exchange rates in effect during each period. Foreign currency re-measurement gains and losses have been included in other income (expense). Initial Public Offering —In December 2014, New Relic completed its initial public offering, or IPO, in which the Company issued and sold 5,750,000 shares of common stock at a public offering price of $23.00 per share. The Company received aggregate proceeds of approximately $123.0 million from the sale of shares of common stock, net of underwriters’ discounts and commissions, but before deducting offering expenses of approximately $3.1 million . The sale of common stock in the IPO triggered the weighted average anti-dilution provisions set forth in the Company’s amended and restated certificate of incorporation. At the IPO price of $23.00 per share, the per share conversion rate for the Company’s Series F convertible preferred stock into common stock was approximately 1:1.02. The conversion rate for the Company’s Series A, Series B, Series C, Series D, and Series E convertible preferred stock was 1 :1. As a result of the IPO, the 24,813,343 shares of the Company’s convertible preferred stock outstanding automatically converted into 24,885,778 shares of the Company’s common stock. Use of Estimates —The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, useful lives of purchased intangible assets, unrecognized tax benefits, and the capitalization and estimated useful life of the Company’s software development costs. These estimates are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from management’s estimates. Segments —The Company’s chief operating decision maker is the Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region. Accordingly, the Company has determined that it has a single reportable segment. Cash and Cash Equivalents —The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Restricted Cash —The Company has an agreement to maintain cash balances at a financial institution as collateral for letters of credit relating to the Company’s property leases. Short-term Investments —Short-term investments consist of money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities, and are classified as available-for-sale securities. The Company has classified its investments as current based on the nature of the investments and their availability for use in current operations. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income, while realized gains and losses are reported within the statement of operations. The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer, and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized-cost basis. If the Company determines that an other-than-temporary decline exists in one of these securities, the respective investment would be written down to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized to other income, net in the condensed consolidated statement of operations. Any portion not related to credit loss would be included in accumulated other comprehensive income (loss). The Company did not identify any investments as other-than-temporarily impaired as of March 31, 2017 or March 31, 2016 . Business Combinations —The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that the Company identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. There has been no such adjustment as of March 31, 2017 . Property and Equipment —Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company uses an estimated useful life of three years for employee-related computers and software, three years for other office equipment and site-related computer hardware, and five years for furniture. Leasehold improvements are amortized over the shorter of the lease-term or the estimated useful life of the related asset. Down payments for property and equipment are recorded at cost and included in other assets in the accompanying consolidated balance sheet. Once the corresponding property and equipment item has been received, it will be reclassified to property and equipment and amortized. Revenue Recognition —The Company generates revenue from subscription-based arrangements that allow customers to access its products. The Company recognizes revenue when all four of the following criteria are met: • There is persuasive evidence of an arrangement. • The subscriptions have been or are being provided to the customer. • The amount of fees to be paid by the customer is fixed or determinable. • The collection is reasonably assured. Revenue from subscription-based arrangements is recognized ratably over the contractual period, generally from one to twelve months . All of the Company’s subscription-based arrangements are priced on a fixed-fee basis. Deferred Revenue —Deferred revenue consists of billings or payments received in advance of revenue being recognized. The Company generally invoices its customers monthly, quarterly, or annually. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current deferred revenue. Cost of Revenue —Cost of revenue consists of expenses relating to data center operations, hosting-related costs, payment processing fees, depreciation and amortization, consulting costs, and salaries and benefits of operations and global customer support personnel. Accounts Receivable and Allowance for Doubtful Accounts —Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice and the collection history of each customer to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. For all periods presented, the allowance for doubtful accounts activity was not significant. Software Development Costs —The Company capitalizes certain development costs incurred in connection with its internal use software and website. These capitalized costs are primarily related to its digital intelligence tools that are hosted by the Company and accessed by its customers on a subscription basis. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases when the software is released or made available. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional features and functionality. Maintenance costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three years . The Company capitalized $4.9 million , $7.7 million , and $10.0 million in internal use software during the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. Included in the capitalized development costs were $0.9 million , $1.0 million , and $1.0 million of stock-based compensation costs for the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. Amortization expense totaled $6.9 million , $6.7 million , and $3.9 million during the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. The net book value of capitalized internal use software as of March 31, 2017 and 2016 , which is recorded in property and equipment on the accompanying consolidated balance sheets, was $10.3 million and $12.6 million , respectively. Commissions —Sales and marketing commissions are recognized as an expense at the time of the customer order. Substantially all of the effort by the sales and marketing organization is expended through the time of closing the sale. Advertising Expenses —Advertising is expensed as incurred and is included in sales and marketing in the consolidated statements of operations. Advertising expense was $21.7 million , $25.5 million , and $25.1 million for the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. Operating Leases —The Company leases office space and data center facilities under operating leases. Certain lease agreements contain rent holidays, allowances, and rent escalation provisions. The Company recognizes rent expense under such leases on a straight-line basis over the term of the lease. Lease renewal periods are considered on a lease-by-lease basis in determining the lease term. Impairment of Long-Lived Assets —Long-lived assets, such as property and equipment, acquired intangible assets, and capitalized software development costs subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. For the fiscal years presented, the Company had not impaired any of its long-lived assets. Goodwill —Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. Goodwill is evaluated for impairment annually in the third quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. Since inception through March 31, 2017 , the Company did not have any goodwill impairment. Intangible Assets —Intangible assets consist of identifiable intangible assets, primarily developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Stock-Based Compensation —The Company estimates the fair value of share-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the statements of operations. The Company recognizes compensation expense over the vesting period of the entire award using the straight-line attribution method. These amounts are reduced by an estimated forfeiture rate. The forfeiture rate is estimated based on actual cancellation experience and is applied to all share-based awards. The rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options and shares pursuant to the Company’s 2014 Employee Stock Purchase Plan, or ESPP. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of share-based awards, including the option’s expected term and the price volatility of the underlying stock. The authoritative guidance prohibits the recognition of a deferred tax asset for an excess tax benefit that has not yet been realized. As a result, the Company will only recognize a benefit from stock-based compensation in additional paid-in capital if an incremental tax benefit is realized or realizable after all other tax attributes currently available have been utilized. Fair Value Measurements —The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature. Concentration of Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, and trade accounts receivable. The Company invests its excess cash in money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities with major financial institutions. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, are subject to minimal credit risk. One customer accounted for 12% of the Company’s accounts receivable balance as of March 31, 2017 , and no customers represented more than 10% of accounts receivable as of March 31, 2016 . In addition, there were no customers that individually exceeded 10% of the Company’s revenue during the fiscal years ended March 31, 2017 , 2016 , and 2015 . Income Taxes —The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company applies the authoritative accounting guidance prescribing a threshold and measurement attribute for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax liability as the largest amount that is more likely than not to be realized upon ultimate settlement. Net Loss Per Share —The Company calculates its basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. Under the two-class method, in periods when the Company has net income, net income is determined by allocating undistributed earnings, calculated as net income less current period convertible preferred stock non-cumulative dividends, between common stock and the convertible preferred stock. In computing diluted net income, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. The Company’s basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, options to purchase common stock, common stock reserved for issuance, restricted stock units, convertible preferred stock warrants, and shares issuable pursuant to the ESPP are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Recent Accounting Pronouncements —In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance provides principles for recognizing revenue to which an entity expects to be entitled for the transfer of promised goods or services to customers. The new guidance will be effective for the Company in its fiscal year beginning April 1, 2018; early adoption is permitted for the fiscal year beginning April 1, 2017. The guidance may be applied retrospectively to each prior period presented (full retrospective method), or with the cumulative effect recognized as of the date of initial adoption (modified retrospective method). The Company is currently evaluating the potential changes from adopting the new standard on its financial statements and disclosures. The Company is in the process of implementing appropriate changes to its business processes and controls to support revenue recognition and disclosures under the new standard. Based on this evaluation, the Company currently intends to adopt using the full retrospective approach, however its decision has not been finalized. The Company will adopt the requirements of the new standard in the first quarter of fiscal year 2019. The impact of adopting the new standard on the Company’s total revenues is not expected to be significant. Additionally, as the Company continues to assess the new standard along with industry trends and internal progress, the Company may adjust its implementation plan accordingly. Under the new standard, the Company expects to capitalize certain sales commission costs. The Company anticipates the most significant impacts of adopting the new standard will primarily relate to the deferral of sales commissions, which previously were expensed as incurred, and to the incremental disclosure requirements. Under the new standard, certain commissions will be capitalized and amortized over the expected period of benefit. The Company has not yet concluded the amortization period of its capitalized costs, which will affect the classification and magnitude of the deferred costs at each reporting period. The Company will continue to quantify the effect of these changes on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard will be effective for the Company in the fiscal year beginning April 1, 2019; early adoption is permitted. The amendments require a modified retrospective approach with optional practical expedients. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In March 2016, the FASB Issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update to the standard is effective for the Company in the fiscal year beginning April 1, 2017. The Company will adopt this new guidance in the first quarter of fiscal year 2018. Adoption will require all tax benefits in excess of stock-based compensation costs to be recorded in the consolidated statements of operations as a component of the provision for income taxes, whereas they are currently recorded in equity. This change is required to be applied prospectively to excess tax benefits resulting from settlements after the date of adoption. For excess tax benefits not previously recognized, the Company will be required to apply the modified retrospective method with a cumulative-effect adjustment to opening accumulated deficit. In the quarter ending June 30, 2017, the Company will recognize deferred tax assets for its accumulated net operating losses related to excess tax benefits that as of March 31, 2017 were not recognized. However, given the valuation allowance placed on substantially all of the deferred tax assets, the recognition upon adoption is not expected to have a material impact on the Company’s accumulated deficit. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The updated guidance requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statement of income. The update to the standard is effective for the Company in the fiscal year beginning April 1, 2020; early adoption is permitted in the fiscal year beginning April 1, 2019. The Company is currently evaluating the effect the standard will have on its condensed consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in the statements of cash flows. This standard is effective for the Company in the fiscal year beginning April 1, 2018; early adoption is permitted. Adoption will be applied on a retrospective basis to all periods presented. The Company does not believe that this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test. This standard is effective for goodwill impairment tests performed by the Company in the fiscal year beginning April 1, 2020; early adoption is permitted. The Company does not believe that this standard will have a material impact on its consolidated financial statements or disclosures. |
Business Combination
Business Combination | 12 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination Opsmatic, Inc. 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 Company also recognized transaction costs of approximately $0.4 million , which is included in general and administrative expense in its consolidated statements of operations for the year ended March 31, 2016 . The Opsmatic technology complements the Company’s existing server and infrastructure monitoring capabilities and has an estimated useful life of 3 years . 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 consolidated financial statements in any period presented. The acquisition also included an obligation to issue up to 98,115 shares of the Company's 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 is being recorded on a straight-line basis over the requisite service period of thirty months . As of March 31, 2017 , 69,291 of these shares were issued, 35,913 of which were subject to repurchase by the Company. Few Ducks, S.L. In October 2014, the Company closed the acquisition of Few Ducks, S.L., (“Ducksboard”), a provider of real-time dashboards for tracking business metrics from a broad set of application sources, pursuant to which the Company acquired all of the capital stock of Ducksboard for 121,493 shares of the Company’s common stock, all of which were issued upon the conclusion of the indemnity holdback period, and $2.3 million in cash resulting in an aggregate purchase price of $4.2 million . Of the total purchase price, $2.8 million was allocated to identifiable intangible assets and $0.7 million to net liabilities assumed, with the excess $2.1 million of the purchase price over the fair value of net tangible liabilities assumed and intangible assets acquired recorded as goodwill. The addition of the Ducksboard technology complements the Company’s visualization expertise and the Company believes it will readily expand the sources of data that are available to customers via the Company’s Digital Intelligence Platform. The Company accounted for the acquisition of Ducksboard as a purchase of a business. 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 Ducksboard were not material to the Company’s consolidated financial statements in any period presented. In connection with the acquisition, the Company also agreed to issue up to 128,507 shares of its common stock, with a grant date fair value of $1.9 million , to certain former employees of Ducksboard, contingent upon their continuous employment with the Company. From the date of acquisition, compensation expense is recorded straight-line over the requisite service period of three years . As of March 31, 2017 , 85,156 of these shares were issued. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company reports assets and liabilities recorded at fair value on the Company’s consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Inputs are quoted prices for similar assets and liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3—Inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2017 and 2016 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of March 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 36,180 $ — $ — $ 36,180 Commercial paper — 5,441 — 5,441 U.S. government agencies — 2,600 — 2,600 Short-term investments: Certificates of deposit — 28,210 — 28,210 Commercial paper — 10,549 — 10,549 Corporate notes and bonds — 17,378 — 17,378 U.S. treasury securities 11,276 — — 11,276 U.S. government agencies — 50,688 — 50,688 Restricted cash: Money market funds 8,115 — — 8,115 Total $ 55,571 $ 114,866 $ — $ 170,437 Included in cash and cash equivalents $ 44,221 Included in short-term investments $ 118,101 Included in restricted cash $ 8,115 Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 36,118 $ — $ — $ 36,118 Short-term investments: 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 fiscal year ended March 31, 2017 . Gross unrealized gains or losses for cash equivalents and available-for-sale marketable securities as of March 31, 2017 and 2016 were not significant. As of March 31, 2017 and 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 March 31, 2017 and 2016 (in thousands): March 31, March 31, Due within one year $ 92,874 $ 103,822 Due in one to two years 25,227 21,592 Total $ 118,101 $ 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 | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, consisted of the following (in thousands): March 31, 2017 March 31, 2016 Computers, software, and equipment $ 7,060 $ 4,835 Site operation equipment 25,874 14,793 Furniture and fixtures 1,770 917 Leasehold improvements 30,586 22,217 Capitalized software development costs 32,618 28,054 Total property and equipment 97,908 70,816 Less: accumulated depreciation and amortization (47,180 ) (30,669 ) Total property and equipment, net $ 50,728 $ 40,147 Depreciation and amortization expense related to property and equipment during the fiscal years ended March 31, 2017 , 2016 , and 2015 was $17.6 million , $14.0 million , and $8.5 million , respectively. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangibles Assets | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangibles Assets | Goodwill and Purchased Intangibles Assets There were no changes to the carrying amount of goodwill for the fiscal year ended March 31, 2017 . Purchased intangible assets subject to amortization as of March 31, 2017 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (2,401 ) $ 2,499 Customer relationships 100 (100 ) — Other intangible assets 300 (300 ) — $ 5,300 $ (2,801 ) $ 2,499 Purchased intangible assets subject to amortization as of March 31, 2016 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount 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 for the fiscal years ended March 31, 2017 , 2016 , and 2015 was $1.1 million , $1.1 million , and $0.5 million , respectively. Estimated future amortization expense as of March 31, 2017 is as follows (in thousands): 2018 $ 1,187 2019 787 2020 525 $ 2,499 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following (in thousands): As of March 31, 2017 2016 Accrued liabilities $ 3,709 $ 2,480 Accrued tax liabilities 975 787 Deferred rent 948 413 Other 1,975 1,045 Total other current liabilities $ 7,607 $ 4,725 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases —The Company leases office space under non-cancelable operating lease agreements, which expire from 2017 through 2023. Deferred Rent —Certain of the Company’s operating leases contain rent holidays, allowances, and rent escalation provisions. For these leases, the Company recognizes the related rental expense on a straight-line basis over the life of the lease from the date the Company takes possession of the office and records the difference between amounts charged to operations and amounts paid as deferred rent. These rent holidays, allowances, and rent escalations are considered in determining the straight-line expense to be recorded over the lease term. As of March 31, 2017 and 2016 , $9.2 million and $5.1 million , respectively, was recorded as deferred rent. Rent expense, net of sublease income, for operating leases was $9.8 million , $6.4 million , and $5.2 million for the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. For the fiscal years ended March 31, 2017 , 2016 , and 2015 , rent expense was offset by $0.1 million , $31 thousand , and $0.7 million of sublease income, respectively. Future minimum lease payments under non-cancelable operating leases as of March 31, 2017 were as follows (in thousands): Years Ending March 31, Operating Leases 2018 $ 10,335 2019 10,447 2020 10,737 2021 7,607 2022 6,054 Thereafter 9,627 Total minimum future lease payments $ 54,807 Future minimum sublease income under non-cancelable operating leases is $0.1 million for the fiscal year ending March 31, 2017 . Purchase Commitments —As of March 31, 2017 and 2016 , the Company had purchase commitments of $29.9 million and $11.9 million , respectively, for specific contractual services. Legal Proceedings —From time to time, the Company may become involved in various legal proceedings in the ordinary course of its business, and may be subject to third-party infringement claims. 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 March 31, 2017 . 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 March 31, 2017 . 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 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. |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Mar. 31, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | Convertible Preferred Stock In April 2014, the Company sold 3,456,140 shares of Series F convertible preferred stock (“Series F”) at a price of $28.93 per share, receiving net proceeds of $97.2 million . Holders of the Company’s Series F voted together with the holders of the Company’s common stock and convertible preferred stock, with each share of Series F having a number of votes equal to the number of shares of common stock issuable upon the conversion of each share of Series F. In a liquidation event, holders of Series F were entitled to receive, ratably with the Series E convertible preferred stock and in preference to the holders of all other classes of convertible preferred stock, an amount equal to the original issuance price of the Series F plus any declared but unpaid dividends. The holders of Series F had the right to convert, at any time, into shares of common stock at an initial conversion ratio of 1 :1, subject to adjustment based on antidilution protection, and all outstanding Series F would automatically convert into shares of common stock in the event that (i) the holders of a majority of outstanding Series F consent to conversion or (ii) immediately prior to the closing of a qualified IPO. The sale of common stock in the IPO triggered the weighted average anti-dilution provisions set forth in the Company’s amended and restated certificate of incorporation. At the IPO price of $23.00 per share, the per share conversion rate for the Company’s Series F convertible preferred stock into common stock was approximately 1:1.02. Upon the completion of the IPO, all outstanding convertible preferred stock was converted into 24,885,778 shares of common stock and the Company’s certificate of incorporation was amended and restated to authorize the Company to issue 10,000,000 shares of preferred stock with a par value of $0.001 per share. Convertible preferred stock immediately prior to the conversion into common stock consisted of the following (in thousands): Shares Authorized Shares Issued and Outstanding Liquidation Preference Series A 7,028 7,000 $ 3,500 Series B 6,492 6,492 7,940 Series C 2,852 2,852 9,943 Series D 1,643 1,566 15,000 Series E 3,447 3,447 60,000 Series F 3,500 3,456 100,000 24,962 24,813 $ 196,383 |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Common stock reserved for issuance —The Company had reserved shares of common stock for future issuance as follows (in thousands): As of March 31, 2017 2016 Common stock options outstanding 4,607 7,050 RSUs outstanding 1,978 1,549 Common stock reserved for issuance in connection with acquisition 43 90 Available for future stock option and RSU grants 8,034 6,561 Available for future employee stock purchase plan awards 1,648 1,360 16,310 16,610 Employee Stock Purchase Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s ESPP, which became effective in December 2014. The ESPP initially reserved and authorized the issuance of up to 1,000,000 shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the ESPP automatically increases each April, beginning on April 1, 2015, by the lesser of 500,000 shares, 1% of the number of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. For the fiscal years ended March 31, 2017 and March 31, 2016 , 0.2 million shares and 0.1 million shares of common stock were purchased under the ESPP, respectively, and a total of $1.8 million and $0.9 million of stock-based compensation expense was recorded, respectively. As of March 31, 2017 , 1,647,744 shares of common stock were available for issuance under the ESPP. 2008 Equity Incentive Plan —The Company’s board of directors adopted the 2008 Equity Incentive Plan, or the 2008 Plan, in February 2008. The 2008 Plan was terminated in connection with the Company’s IPO, and accordingly, no shares are available for future issuance under this plan. The 2008 Plan continues to govern outstanding awards granted thereunder. 2014 Equity Incentive Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Equity Incentive Plan (the "2014 Plan"), which became effective in December 2014. The 2014 Plan serves as the successor to the Company’s 2008 Plan. The 2014 Plan initially reserved and authorized the issuance of 5,000,000 shares of the Company’s common stock. Additionally, shares not issued or subject to outstanding grants under the 2008 Plan upon its termination became available under the 2014 Plan, resulting in a total of 5,184,878 available shares under the 2014 Plan as of the effective date of the 2014 Plan. Pursuant to the terms of the 2014 Plan, any shares subject to outstanding stock options or other stock awards under the 2008 Plan that (i) expire or terminate for any reason prior to exercise or settlement, (ii) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award will become available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each April 1, beginning on April 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company's board of directors. As of March 31, 2017 , there were 8,033,841 shares available for issuance under the 2014 Plan. The following table summarizes the Company’s stock option and RSU award activities for the fiscal year ended March 31, 2017 (in thousands, except per share information): Options Outstanding RSUs Outstanding Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding—April 1, 2016 7,050 $ 13.20 6.5 $ 95,326 1,549 $ 29.73 3.1 $ 40,387 Stock options granted 402 28.93 RSUs granted 1,384 28.75 Stock options exercised (2,474 ) 6.74 65,263 RSUs vested (582 ) 29.19 Stock options canceled/forfeited (371 ) 20.15 RSUs canceled/forfeited (373 ) 29.11 Outstanding - March 31, 2017 4,607 $ 17.49 7.1 $ 90,339 1,978 $ 29.32 2.8 $ 73,309 Options vested and expected to vest - March 31, 2017 4,591 $ 17.45 7.1 $ 90,232 Options vested and exercisable - March 31, 2017 2,722 $ 13.96 6.6 $ 62,943 RSUs expected to vest - March 31, 2017 1,919 $ 29.36 $ 71,134 The weighted-average grant-date fair value of options granted during the fiscal years ended March 31, 2017 , 2016 , and 2015 was $12.75 , $14.41 , and $9.20 , respectively. Intrinsic value of options exercised during the fiscal years ended March 31, 2017 , 2016 , and 2015 was $65.3 million , $65.6 million , and $8.7 million , respectively. The total fair value of RSUs vested during the fiscal years ended March 31, 2017 and 2016 was $17.1 million and $5.5 million , respectively. There were no RSUs vested during the fiscal year ended March 31, 2015 . Aggregate intrinsic value for options and RSUs outstanding represents the difference between the closing stock price of the Company’s common stock and the exercise price of outstanding, in-the-money awards. The Company’s closing stock price as reported on the New York Stock Exchange as of March 31, 2017 was $37.07 . Employee Stock Options and ESPP Valuation —The Company estimates the fair value of stock options and ESPP shares on the date of grant using the Black-Scholes option-pricing model. Each of the Black-Scholes inputs is subjective and generally requires significant judgments to determine. The assumptions used to estimate the fair value of stock options granted and ESPP shares to be issued during the fiscal years ended March 31, 2017 , 2016 , and 2015 were as follows: Stock Options: Year Ended March 31, 2017 2016 2015 Expected term (years) 5 - 6 6 5 - 6 Expected volatility 46 - 47% 45 - 47% 45 - 51% Risk-free interest rate 0.21 - 2.17% 1.39 - 1.93% 1.40 - 2.01% Dividend yield — — — ESPP: Year Ended March 31, 2017 2016 2015 Expected term (years) 0.5 0.5 — Expected volatility 37 - 44% 35 - 54% — Risk-free interest rate 0.46 - 0.67% 0.25 - 0.42% — Dividend yield — — — Fair Value of Common Stock Prior to its IPO, the fair value of the common stock underlying the stock-based awards was determined by the Company’s board of directors. Given the absence of a public trading market, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting at which awards were approved. These factors included, but were not limited to (i) contemporaneous third-party valuations of common stock; (ii) the rights and preferences of convertible preferred stock relative to common stock; (iii) the lack of marketability of common stock; (iv) developments in the business; and (v) the likelihood of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions. Since the Company’s IPO, it has used the market closing price of its common stock as reported on the New York Stock Exchange. Risk-Free Interest Rate The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the options for each option group. Expected Term The Company determines the expected term based on the average period the stock options are expected to remain outstanding generally calculated as the midpoint of the stock options vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The Company estimates the expected term for ESPP shares using the purchase period of 6 months. Expected Volatility The Company determines the price volatility factor based on the historical volatilities of its peer group as the Company did not have significant trading history for its common stock. Beginning in February 2017, the Company started to use it's historical volatility data when valuing ESPP shares. Dividend Yield The expected dividend assumption is based on the Company’s current expectations about its anticipated dividend policy. Stock-Based Compensation Expense —Stock-based compensation expense for both employees and nonemployees was $31.9 million , $23.3 million , and $11.7 million for the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Year Ended March 31, 2017 2016 2015 Cost of revenue $ 1,847 $ 1,238 $ 591 Research and development 9,975 6,659 2,055 Sales and marketing 13,042 9,258 5,108 General and administrative 7,082 6,113 3,912 Total stock-based compensation expense $ 31,946 $ 23,268 $ 11,666 As of March 31, 2017 , unrecognized stock-based compensation cost related to outstanding unvested stock options was $19.4 million , which is expected to be recognized over a weighted-average period of approximately 1.9 years . As of March 31, 2017 , unrecognized stock-based compensation cost related to outstanding unvested stock awards was $53.1 million , which is expected to be recognized over a weighted-average period of approximately 2.7 years . |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of (loss) income before income taxes are as follows (in thousands): Year Ended March 31, 2017 2016 2015 Domestic $ (62,526 ) $ (67,988 ) $ (50,031 ) Foreign 1,713 803 (203 ) Total $ (60,813 ) $ (67,185 ) $ (50,234 ) The components of the provision (benefit) for income taxes are as follows (in thousands): Year Ended March 31, 2017 2016 2015 Current Provision: Federal $ — $ — $ — State 18 93 — Foreign 333 345 334 Total current provision 351 438 334 Deferred Provision: Federal — (7 ) (8 ) State — — — Foreign (87 ) (129 ) (411 ) Total deferred provision (87 ) (136 ) (419 ) Total income tax provision (benefit) $ 264 $ 302 $ (85 ) The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following: Year Ended March 31, 2017 2016 2015 Federal statutory rate 34.0 % 34.0 % 34.0 % Effect of: State taxes, net of federal benefits 2.4 2.4 1.5 Stock-based compensation (1.8 ) (1.5 ) (4.5 ) Research and development credit 3.5 3.5 1.8 Recognition of assets not previously recognized — 2.9 — Other 0.4 (0.3 ) — Valuation allowance (38.9 ) (41.4 ) (32.6 ) Effective tax rate (0.4 %) (0.5 %) 0.2 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands): As of March 31, 2017 2016 Deferred tax assets: Accrued expenses $ 5,120 $ 2,950 Depreciation and amortization 3,183 1,677 Net operating loss carryforwards 75,949 62,909 Stock based compensation 7,109 4,645 Research and development credits 8,079 5,840 Gross deferred tax assets 99,440 78,021 Valuation allowance (94,352 ) (72,528 ) Total deferred tax assets 5,088 5,493 Deferred tax liabilities: Prepaids (1,912 ) (1,402 ) Intangibles 72 (25 ) Capitalized research and development (3,108 ) (4,013 ) Total deferred tax liabilities (4,948 ) (5,440 ) Total net deferred tax assets $ 140 $ 53 The net deferred tax assets increased from the prior year primarily due to a reversal of deferred tax liabilities resulting from the acquisition of intangibles in Spain as well as increased deferred taxes from stock based compensation charges in the U.K. Recognition of deferred tax assets is appropriate when realization of such assets is more likely than not. Management assesses the available positive and negative evidence to estimate if sufficient taxable income will be generated to use the existing deferred tax assets. Based upon the weight of available evidence, which includes the Company’s historical operating performance and the U.S. cumulative net losses in all prior periods, the Company has provided a valuation allowance against its U.S. deferred tax assets. The Company’s valuation allowance increased by $21.8 million and $28.8 million for the fiscal years ended March 31, 2017 and 2016 , respectively. As of March 31, 2017 , the Company has U.S. federal and state net operating losses of approximately $313.8 million and $161.4 million , respectively, which expire beginning in the year 2028 and 2024 , respectively. Of these amounts, $105.0 million and $51.4 million , respectively, represent federal and state tax deductions from stock-based compensation which will be recorded as an adjustment to additional paid-in capital when they reduce taxes payable. The Company also has federal, California, and Oregon research and development credits of $8.3 million , $1.8 million , and $1.8 million , respectively. The federal tax credit carryforwards will expire beginning in 2028 if not utilized. The California tax credit carryforwards do not expire. The Oregon tax credit carryforwards began to expire in 2014 . Utilization of the net operating loss carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended (“Code”), and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. Code Section 382 (“Section 382”) ownership change generally occurs if one or more stockholders or groups of stockholders who own at least 5% of the Company’s stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three years period. Similar rules may apply under state tax laws. The Company did experience one or more ownership changes in financial periods ending on or before March 31, 2017 . In this regard, the Company has determined that based on the timing of the ownership changes and the corresponding Section 382 limitations, none of its net operating losses or other tax attributes appear to expire subject to such limitation. The Company has not provided U.S. income tax on certain foreign earnings that are deemed to be indefinitely invested outside the U.S. As of March 31, 2017 , 2016 , and 2015 , the amount of accumulated unremitted earnings from the Company’s foreign subsidiaries was approximately $2.2 million , $0.9 million , and $0.1 million . The Company had unrecognized tax benefits of $5.0 million , $3.5 million , and $1.8 million as of March 31, 2017 , 2016 , and 2015 . As of March 31, 2017 , if recognized, the unrecognized tax benefit of $5.0 million would affect income tax expense, before consideration of any valuation allowance. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months . A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows (in thousands): Balance at March 31, 2014 $ 735 Additions based on tax positions taken during the current period 1,009 Additions based on tax positions taken during the prior period 84 Reductions based on tax positions taken during the prior period (2 ) Balance at March 31, 2015 1,826 Additions based on tax positions taken during the current period 1,414 Additions based on tax positions taken during the prior period 249 Balance at March 31, 2016 3,489 Additions based on tax positions taken during the current period 1,503 Reductions based on tax positions taken during the prior period (7 ) Balance at March 31, 2017 $ 4,985 The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statement of operations. Accrued interest and penalties have not been significant for the fiscal years ended March 31, 2017 , 2016 , and 2015 . The Company files income tax returns in the U.S., certain states, Ireland, Canada, Germany, Switzerland, UK, and Spain. All of the tax years, from the date of inception, are open for examination for foreign jurisdictions. Carryover attributes beginning March 31, 2008 remain open to adjustment by the U.S. and state authorities. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share As the Company had net losses for the fiscal years ended March 31, 2017 , 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): Year Ended March 31, 2017 2016 2015 Numerator: Net loss $ (61,077 ) $ (67,487 ) $ (50,149 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 51,715 48,410 25,290 Net loss per share—basic and diluted $ (1.18 ) $ (1.39 ) $ (1.98 ) 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 March 31, 2017 2016 2015 Options to purchase common stock 4,607 7,050 9,422 Common stock reserved for issuance in connection with acquisition 43 90 129 Restricted stock units 1,978 1,549 723 ESPP shares 38 46 — 6,666 8,735 10,274 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has established a 401(k) tax-deferred savings plan (the “401(k) Plan”), which permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Code. The Company is responsible for administrative costs of the 401(k) Plan and may, at its discretion, make matching contributions to the 401(k) Plan. For the fiscal years ended March 31, 2017 and 2016 , and 2015 , the Company made contributions of $2.3 million , $2.1 million , and $1.4 million to the 401(k) Plan, respectively. |
Revenue by Geographic Location
Revenue by Geographic Location | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenue by Geographic Location | 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): Year Ended March 31, 2017 2016 2015 United States $ 178,727 $ 121,588 $ 73,416 EMEA 49,825 34,602 21,043 APAC 19,887 14,118 8,732 Other 15,040 11,001 7,200 Total revenue $ 263,479 $ 181,309 $ 110,391 Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of March 31, 2017 and 2016 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain members of the Company’s board of directors serve on the board of directors of and/or are executive officers of, and, in some cases, are investors in, companies that are customers or vendors of the Company. Revenue from sales to these companies of $1.8 million , $0.9 million , and $0.7 million were recognized for the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. There was not a significant amount of accounts receivable due from these companies as of March 31, 2017 or March 31, 2016 . $1.4 million , $1.8 million , and $3.3 million in expenses related to purchases from these companies were recorded during the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. There were $0.1 million and $0.1 million in accounts payable to these companies as of March 31, 2017 and 2016 , respectively. |
Description of Business and S23
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business —New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008 . The Company is a software-as-a-service provider of digital intelligence products which allow users to monitor software and infrastructure performance and measure end user activities across desktop and mobile devices with applications deployed in the cloud or in a data center. New Relic’s digital intelligence products and platform capabilities enable software developers, IT operations, and business users to better understand their digital business. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation —The consolidated financial statements include the accounts of New Relic and its wholly owned subsidiaries. These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP. All intercompany balances and transactions have been eliminated in consolidation. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions —The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. Foreign currency denominated revenue and expenses have been re-measured using the average exchange rates in effect during each period. Foreign currency re-measurement gains and losses have been included in other income (expense). |
Initial Public Offering | Initial Public Offering —In December 2014, New Relic completed its initial public offering, or IPO, in which the Company issued and sold 5,750,000 shares of common stock at a public offering price of $23.00 per share. The Company received aggregate proceeds of approximately $123.0 million from the sale of shares of common stock, net of underwriters’ discounts and commissions, but before deducting offering expenses of approximately $3.1 million . The sale of common stock in the IPO triggered the weighted average anti-dilution provisions set forth in the Company’s amended and restated certificate of incorporation. At the IPO price of $23.00 per share, the per share conversion rate for the Company’s Series F convertible preferred stock into common stock was approximately 1:1.02. The conversion rate for the Company’s Series A, Series B, Series C, Series D, and Series E convertible preferred stock was 1 :1. As a result of the IPO, the 24,813,343 shares of the Company’s convertible preferred stock outstanding automatically converted into 24,885,778 shares of the Company’s common stock. |
Use of Estimates | Use of Estimates —The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, useful lives of purchased intangible assets, unrecognized tax benefits, and the capitalization and estimated useful life of the Company’s software development costs. These estimates are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from management’s estimates. |
Segments | Segments —The Company’s chief operating decision maker is the Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region. Accordingly, the Company has determined that it has a single reportable segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents —The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. |
Restricted Cash | Restricted Cash —The Company has an agreement to maintain cash balances at a financial institution as collateral for letters of credit relating to the Company’s property leases. |
Short-term Investments | Short-term Investments —Short-term investments consist of money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities, and are classified as available-for-sale securities. The Company has classified its investments as current based on the nature of the investments and their availability for use in current operations. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income, while realized gains and losses are reported within the statement of operations. The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer, and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized-cost basis. If the Company determines that an other-than-temporary decline exists in one of these securities, the respective investment would be written down to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized to other income, net in the condensed consolidated statement of operations. Any portion not related to credit loss would be included in accumulated other comprehensive income (loss). |
Business Combinations | Business Combinations —The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that the Company identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. |
Property and Equipment | Property and Equipment —Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company uses an estimated useful life of three years for employee-related computers and software, three years for other office equipment and site-related computer hardware, and five years for furniture. Leasehold improvements are amortized over the shorter of the lease-term or the estimated useful life of the related asset. Down payments for property and equipment are recorded at cost and included in other assets in the accompanying consolidated balance sheet. Once the corresponding property and equipment item has been received, it will be reclassified to property and equipment and amortized. |
Revenue Recognition | Revenue Recognition —The Company generates revenue from subscription-based arrangements that allow customers to access its products. The Company recognizes revenue when all four of the following criteria are met: • There is persuasive evidence of an arrangement. • The subscriptions have been or are being provided to the customer. • The amount of fees to be paid by the customer is fixed or determinable. • The collection is reasonably assured. Revenue from subscription-based arrangements is recognized ratably over the contractual period, generally from one to twelve months . All of the Company’s subscription-based arrangements are priced on a fixed-fee basis. |
Deferred Revenue | Deferred Revenue —Deferred revenue consists of billings or payments received in advance of revenue being recognized. The Company generally invoices its customers monthly, quarterly, or annually. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current deferred revenue. |
Cost of Revenue | Cost of Revenue —Cost of revenue consists of expenses relating to data center operations, hosting-related costs, payment processing fees, depreciation and amortization, consulting costs, and salaries and benefits of operations and global customer support personnel. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts —Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice and the collection history of each customer to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. |
Software Development Costs | Software Development Costs —The Company capitalizes certain development costs incurred in connection with its internal use software and website. These capitalized costs are primarily related to its digital intelligence tools that are hosted by the Company and accessed by its customers on a subscription basis. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases when the software is released or made available. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional features and functionality. Maintenance costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three years . The Company capitalized $4.9 million , $7.7 million , and $10.0 million in internal use software during the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. Included in the capitalized development costs were $0.9 million , $1.0 million , and $1.0 million of stock-based compensation costs for the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. Amortization expense totaled $6.9 million , $6.7 million , and $3.9 million during the fiscal years ended March 31, 2017 , 2016 , and 2015 , respectively. The net book value of capitalized internal use software as of March 31, 2017 and 2016 , which is recorded in property and equipment on the accompanying consolidated balance sheets, was $10.3 million and $12.6 million , respectively. |
Commissions | Commissions —Sales and marketing commissions are recognized as an expense at the time of the customer order. Substantially all of the effort by the sales and marketing organization is expended through the time of closing the sale. |
Advertising Expenses | Advertising Expenses —Advertising is expensed as incurred and is included in sales and marketing in the consolidated statements of operations. |
Operating Leases | Operating Leases —The Company leases office space and data center facilities under operating leases. Certain lease agreements contain rent holidays, allowances, and rent escalation provisions. The Company recognizes rent expense under such leases on a straight-line basis over the term of the lease. Lease renewal periods are considered on a lease-by-lease basis in determining the lease term. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —Long-lived assets, such as property and equipment, acquired intangible assets, and capitalized software development costs subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. |
Goodwill | Goodwill —Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. Goodwill is evaluated for impairment annually in the third quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. |
Intangible Assets | Intangible Assets —Intangible assets consist of identifiable intangible assets, primarily developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. |
Stock-Based Compensation | Stock-Based Compensation —The Company estimates the fair value of share-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the statements of operations. The Company recognizes compensation expense over the vesting period of the entire award using the straight-line attribution method. These amounts are reduced by an estimated forfeiture rate. The forfeiture rate is estimated based on actual cancellation experience and is applied to all share-based awards. The rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options and shares pursuant to the Company’s 2014 Employee Stock Purchase Plan, or ESPP. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of share-based awards, including the option’s expected term and the price volatility of the underlying stock. The authoritative guidance prohibits the recognition of a deferred tax asset for an excess tax benefit that has not yet been realized. As a result, the Company will only recognize a benefit from stock-based compensation in additional paid-in capital if an incremental tax benefit is realized or realizable after all other tax attributes currently available have been utilized. |
Fair Value Measurements | Fair Value Measurements —The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature. |
Concentration of Risk | Concentration of Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, and trade accounts receivable. The Company invests its excess cash in money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities with major financial institutions. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, are subject to minimal credit risk. |
Income Taxes | Income Taxes —The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company applies the authoritative accounting guidance prescribing a threshold and measurement attribute for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax liability as the largest amount that is more likely than not to be realized upon ultimate settlement. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share —The Company calculates its basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. Under the two-class method, in periods when the Company has net income, net income is determined by allocating undistributed earnings, calculated as net income less current period convertible preferred stock non-cumulative dividends, between common stock and the convertible preferred stock. In computing diluted net income, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. The Company’s basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, options to purchase common stock, common stock reserved for issuance, restricted stock units, convertible preferred stock warrants, and shares issuable pursuant to the ESPP are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive |
Recent Accounting Pronouncements | Recent Accounting Pronouncements —In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance provides principles for recognizing revenue to which an entity expects to be entitled for the transfer of promised goods or services to customers. The new guidance will be effective for the Company in its fiscal year beginning April 1, 2018; early adoption is permitted for the fiscal year beginning April 1, 2017. The guidance may be applied retrospectively to each prior period presented (full retrospective method), or with the cumulative effect recognized as of the date of initial adoption (modified retrospective method). The Company is currently evaluating the potential changes from adopting the new standard on its financial statements and disclosures. The Company is in the process of implementing appropriate changes to its business processes and controls to support revenue recognition and disclosures under the new standard. Based on this evaluation, the Company currently intends to adopt using the full retrospective approach, however its decision has not been finalized. The Company will adopt the requirements of the new standard in the first quarter of fiscal year 2019. The impact of adopting the new standard on the Company’s total revenues is not expected to be significant. Additionally, as the Company continues to assess the new standard along with industry trends and internal progress, the Company may adjust its implementation plan accordingly. Under the new standard, the Company expects to capitalize certain sales commission costs. The Company anticipates the most significant impacts of adopting the new standard will primarily relate to the deferral of sales commissions, which previously were expensed as incurred, and to the incremental disclosure requirements. Under the new standard, certain commissions will be capitalized and amortized over the expected period of benefit. The Company has not yet concluded the amortization period of its capitalized costs, which will affect the classification and magnitude of the deferred costs at each reporting period. The Company will continue to quantify the effect of these changes on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard will be effective for the Company in the fiscal year beginning April 1, 2019; early adoption is permitted. The amendments require a modified retrospective approach with optional practical expedients. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In March 2016, the FASB Issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update to the standard is effective for the Company in the fiscal year beginning April 1, 2017. The Company will adopt this new guidance in the first quarter of fiscal year 2018. Adoption will require all tax benefits in excess of stock-based compensation costs to be recorded in the consolidated statements of operations as a component of the provision for income taxes, whereas they are currently recorded in equity. This change is required to be applied prospectively to excess tax benefits resulting from settlements after the date of adoption. For excess tax benefits not previously recognized, the Company will be required to apply the modified retrospective method with a cumulative-effect adjustment to opening accumulated deficit. In the quarter ending June 30, 2017, the Company will recognize deferred tax assets for its accumulated net operating losses related to excess tax benefits that as of March 31, 2017 were not recognized. However, given the valuation allowance placed on substantially all of the deferred tax assets, the recognition upon adoption is not expected to have a material impact on the Company’s accumulated deficit. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The updated guidance requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statement of income. The update to the standard is effective for the Company in the fiscal year beginning April 1, 2020; early adoption is permitted in the fiscal year beginning April 1, 2019. The Company is currently evaluating the effect the standard will have on its condensed consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in the statements of cash flows. This standard is effective for the Company in the fiscal year beginning April 1, 2018; early adoption is permitted. Adoption will be applied on a retrospective basis to all periods presented. The Company does not believe that this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test. This standard is effective for goodwill impairment tests performed by the Company in the fiscal year beginning April 1, 2020; early adoption is permitted. The Company does not believe that this standard will have a material impact on its consolidated financial statements or disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and 2016 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of March 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 36,180 $ — $ — $ 36,180 Commercial paper — 5,441 — 5,441 U.S. government agencies — 2,600 — 2,600 Short-term investments: Certificates of deposit — 28,210 — 28,210 Commercial paper — 10,549 — 10,549 Corporate notes and bonds — 17,378 — 17,378 U.S. treasury securities 11,276 — — 11,276 U.S. government agencies — 50,688 — 50,688 Restricted cash: Money market funds 8,115 — — 8,115 Total $ 55,571 $ 114,866 $ — $ 170,437 Included in cash and cash equivalents $ 44,221 Included in short-term investments $ 118,101 Included in restricted cash $ 8,115 Fair Value Measurements as of March 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 36,118 $ — $ — $ 36,118 Short-term investments: 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 March 31, 2017 and 2016 (in thousands): March 31, March 31, Due within one year $ 92,874 $ 103,822 Due in one to two years 25,227 21,592 Total $ 118,101 $ 125,414 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): March 31, 2017 March 31, 2016 Computers, software, and equipment $ 7,060 $ 4,835 Site operation equipment 25,874 14,793 Furniture and fixtures 1,770 917 Leasehold improvements 30,586 22,217 Capitalized software development costs 32,618 28,054 Total property and equipment 97,908 70,816 Less: accumulated depreciation and amortization (47,180 ) (30,669 ) Total property and equipment, net $ 50,728 $ 40,147 |
Goodwill and Purchased Intang26
Goodwill and Purchased Intangibles Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Purchased Intangible Assets Subject to Amortization | Purchased intangible assets subject to amortization as of March 31, 2017 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (2,401 ) $ 2,499 Customer relationships 100 (100 ) — Other intangible assets 300 (300 ) — $ 5,300 $ (2,801 ) $ 2,499 Purchased intangible assets subject to amortization as of March 31, 2016 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount 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 March 31, 2017 is as follows (in thousands): 2018 $ 1,187 2019 787 2020 525 $ 2,499 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): As of March 31, 2017 2016 Accrued liabilities $ 3,709 $ 2,480 Accrued tax liabilities 975 787 Deferred rent 948 413 Other 1,975 1,045 Total other current liabilities $ 7,607 $ 4,725 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 were as follows (in thousands): Years Ending March 31, Operating Leases 2018 $ 10,335 2019 10,447 2020 10,737 2021 7,607 2022 6,054 Thereafter 9,627 Total minimum future lease payments $ 54,807 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Outstanding Convertible Preferred Stock | Convertible preferred stock immediately prior to the conversion into common stock consisted of the following (in thousands): Shares Authorized Shares Issued and Outstanding Liquidation Preference Series A 7,028 7,000 $ 3,500 Series B 6,492 6,492 7,940 Series C 2,852 2,852 9,943 Series D 1,643 1,566 15,000 Series E 3,447 3,447 60,000 Series F 3,500 3,456 100,000 24,962 24,813 $ 196,383 |
Common Stock and Stockholders30
Common Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Reserved for Future Issuance | The Company had reserved shares of common stock for future issuance as follows (in thousands): As of March 31, 2017 2016 Common stock options outstanding 4,607 7,050 RSUs outstanding 1,978 1,549 Common stock reserved for issuance in connection with acquisition 43 90 Available for future stock option and RSU grants 8,034 6,561 Available for future employee stock purchase plan awards 1,648 1,360 16,310 16,610 |
Schedule of Stock Option and RSU Award Activities | The following table summarizes the Company’s stock option and RSU award activities for the fiscal year ended March 31, 2017 (in thousands, except per share information): Options Outstanding RSUs Outstanding Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding—April 1, 2016 7,050 $ 13.20 6.5 $ 95,326 1,549 $ 29.73 3.1 $ 40,387 Stock options granted 402 28.93 RSUs granted 1,384 28.75 Stock options exercised (2,474 ) 6.74 65,263 RSUs vested (582 ) 29.19 Stock options canceled/forfeited (371 ) 20.15 RSUs canceled/forfeited (373 ) 29.11 Outstanding - March 31, 2017 4,607 $ 17.49 7.1 $ 90,339 1,978 $ 29.32 2.8 $ 73,309 Options vested and expected to vest - March 31, 2017 4,591 $ 17.45 7.1 $ 90,232 Options vested and exercisable - March 31, 2017 2,722 $ 13.96 6.6 $ 62,943 RSUs expected to vest - March 31, 2017 1,919 $ 29.36 $ 71,134 |
Schedule of Assumptions Used to Estimate Fair Value of Stock Options Granted and ESPP Shares to be Issued | The assumptions used to estimate the fair value of stock options granted and ESPP shares to be issued during the fiscal years ended March 31, 2017 , 2016 , and 2015 were as follows: Stock Options: Year Ended March 31, 2017 2016 2015 Expected term (years) 5 - 6 6 5 - 6 Expected volatility 46 - 47% 45 - 47% 45 - 51% Risk-free interest rate 0.21 - 2.17% 1.39 - 1.93% 1.40 - 2.01% Dividend yield — — — ESPP: Year Ended March 31, 2017 2016 2015 Expected term (years) 0.5 0.5 — Expected volatility 37 - 44% 35 - 54% — Risk-free interest rate 0.46 - 0.67% 0.25 - 0.42% — Dividend yield — — — |
Schedule of Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses | Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Year Ended March 31, 2017 2016 2015 Cost of revenue $ 1,847 $ 1,238 $ 591 Research and development 9,975 6,659 2,055 Sales and marketing 13,042 9,258 5,108 General and administrative 7,082 6,113 3,912 Total stock-based compensation expense $ 31,946 $ 23,268 $ 11,666 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Income Before Income Taxes | The components of (loss) income before income taxes are as follows (in thousands): Year Ended March 31, 2017 2016 2015 Domestic $ (62,526 ) $ (67,988 ) $ (50,031 ) Foreign 1,713 803 (203 ) Total $ (60,813 ) $ (67,185 ) $ (50,234 ) |
Components of Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes are as follows (in thousands): Year Ended March 31, 2017 2016 2015 Current Provision: Federal $ — $ — $ — State 18 93 — Foreign 333 345 334 Total current provision 351 438 334 Deferred Provision: Federal — (7 ) (8 ) State — — — Foreign (87 ) (129 ) (411 ) Total deferred provision (87 ) (136 ) (419 ) Total income tax provision (benefit) $ 264 $ 302 $ (85 ) |
Schedule of Effective Federal Statutory Rate and Provision for Income Taxes | The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following: Year Ended March 31, 2017 2016 2015 Federal statutory rate 34.0 % 34.0 % 34.0 % Effect of: State taxes, net of federal benefits 2.4 2.4 1.5 Stock-based compensation (1.8 ) (1.5 ) (4.5 ) Research and development credit 3.5 3.5 1.8 Recognition of assets not previously recognized — 2.9 — Other 0.4 (0.3 ) — Valuation allowance (38.9 ) (41.4 ) (32.6 ) Effective tax rate (0.4 %) (0.5 %) 0.2 % |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands): As of March 31, 2017 2016 Deferred tax assets: Accrued expenses $ 5,120 $ 2,950 Depreciation and amortization 3,183 1,677 Net operating loss carryforwards 75,949 62,909 Stock based compensation 7,109 4,645 Research and development credits 8,079 5,840 Gross deferred tax assets 99,440 78,021 Valuation allowance (94,352 ) (72,528 ) Total deferred tax assets 5,088 5,493 Deferred tax liabilities: Prepaids (1,912 ) (1,402 ) Intangibles 72 (25 ) Capitalized research and development (3,108 ) (4,013 ) Total deferred tax liabilities (4,948 ) (5,440 ) Total net deferred tax assets $ 140 $ 53 |
Schedule of Unrecognized Tax Benefits Reconciliation | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows (in thousands): Balance at March 31, 2014 $ 735 Additions based on tax positions taken during the current period 1,009 Additions based on tax positions taken during the prior period 84 Reductions based on tax positions taken during the prior period (2 ) Balance at March 31, 2015 1,826 Additions based on tax positions taken during the current period 1,414 Additions based on tax positions taken during the prior period 249 Balance at March 31, 2016 3,489 Additions based on tax positions taken during the current period 1,503 Reductions based on tax positions taken during the prior period (7 ) Balance at March 31, 2017 $ 4,985 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Net Loss Per Share Attributable to Common Stockholders, Basic and Diluted | The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Year Ended March 31, 2017 2016 2015 Numerator: Net loss $ (61,077 ) $ (67,487 ) $ (50,149 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 51,715 48,410 25,290 Net loss per share—basic and diluted $ (1.18 ) $ (1.39 ) $ (1.98 ) |
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 March 31, 2017 2016 2015 Options to purchase common stock 4,607 7,050 9,422 Common stock reserved for issuance in connection with acquisition 43 90 129 Restricted stock units 1,978 1,549 723 ESPP shares 38 46 — 6,666 8,735 10,274 |
Revenue by Geographic Location
Revenue by Geographic Location (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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): Year Ended March 31, 2017 2016 2015 United States $ 178,727 $ 121,588 $ 73,416 EMEA 49,825 34,602 21,043 APAC 19,887 14,118 8,732 Other 15,040 11,001 7,200 Total revenue $ 263,479 $ 181,309 $ 110,391 |
Description of Business and S34
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 109 Months Ended | |||
Dec. 31, 2014USD ($)$ / sharesshares | Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2017USD ($) | Apr. 30, 2014$ / sharesshares | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from sale of common stock, net of underwriters' discounts and commissions | $ 119,924,000 | |||||
Number of reportable segments | Segment | 1 | |||||
Other-than-temporarily impaired investments | $ 0 | $ 0 | ||||
Gross value of capitalized internal use software | 4,900,000 | 7,700,000 | 10,000,000 | $ 4,900,000 | ||
Stock-based compensation costs | 900,000 | 1,000,000 | 1,000,000 | |||
Amortization expense | 6,900,000 | 6,700,000 | 3,900,000 | |||
Net book value of capitalized software | 10,300,000 | 12,600,000 | 10,300,000 | |||
Impairment of long-lived assets | $ 0 | 0 | 0 | |||
Goodwill impairment | $ 0 | |||||
Minimum | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognition, contract term | 1 month | |||||
Maximum | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognition, contract term | 12 months | |||||
Computers and Software | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property plant and equipment estimated useful life | 3 years | |||||
Other Office Equipment and Site-related Computer Hardware | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property plant and equipment estimated useful life | 3 years | |||||
Furniture and fixtures | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property plant and equipment estimated useful life | 5 years | |||||
Capitalized software development costs | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property plant and equipment estimated useful life | 3 years | |||||
Common Stock | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of common stock shares issued upon conversion of convertible preferred stock (in shares) | shares | 24,885,778 | |||||
Series F Convertible Preferred Stock | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Common stock shares issued (in usd per share) | $ / shares | $ 28.93 | |||||
Convertible preferred stock conversion rate (in shares) | shares | 0.9804 | 1 | ||||
Series A Through E Preferred Stock | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Convertible preferred stock conversion rate (in shares) | shares | 1 | |||||
Convertible Preferred Stock | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of convertible preferred stock shares converted (in shares) | shares | 24,813,343 | |||||
Initial Public Offering | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Common stock shares issued (in shares) | shares | 5,750,000 | |||||
Common stock shares issued (in usd per share) | $ / shares | $ 23 | |||||
Proceeds from sale of common stock, net of underwriters' discounts and commissions | $ 123,000,000 | |||||
Offering expenses | $ 3,100,000 | |||||
One Customer | Credit Concentration Risk | Accounts Receivable | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration of risk, percentage | 12.00% | |||||
Sales and marketing | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Advertising expense | $ 21,700,000 | $ 25,500,000 | $ 25,100,000 |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Preliminary purchase price allocation, goodwill | $ 11,828,000 | $ 11,828,000 | ||
Opsmatic, Inc. | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration paid in cash | $ 5,500,000 | |||
Number of shares issued to acquire capital stock (in shares) | 161,116 | |||
Business acquisition, aggregate purchase price | $ 12,300,000 | |||
Preliminary purchase price allocation, goodwill | $ 9,800,000 | |||
Expensed related acquisition costs in general and administrative expenses | $ 400,000 | |||
Business acquisition obligation to issue common stock (in shares) | 98,115 | |||
Common stock, aggregate grant date fair value | $ 3,800,000 | |||
Obligation to issue common stock, requisite service period | 30 months | |||
Number of common stock shares issued (in shares) | 69,291 | |||
Number of common shares issued, subject to repurchase (in shares) | 35,913 | |||
Opsmatic, Inc. | Restricted stock units | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued to acquire capital stock (in shares) | 12,008 | |||
Fair value of shares issued to acquire capital stock (in usd per share) | $ 39.15 | |||
Ducksboard | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration paid in cash | $ 2,300,000 | |||
Number of shares issued to acquire capital stock (in shares) | 121,493 | 85,156 | ||
Business acquisition, aggregate purchase price | $ 4,200,000 | |||
Preliminary purchase price allocation, identifiable intangible assets | 2,800,000 | |||
Preliminary purchase price allocation, goodwill | 2,100,000 | |||
Business acquisition goodwill expected tax deductible amount | $ 0 | |||
Business acquisition obligation to issue common stock (in shares) | 128,507 | |||
Obligation to issue common stock, requisite service period | 3 years | |||
Preliminary purchase price allocation, net liabilities assumed | $ 700,000 | |||
Issuance of common stock, grant date fair value | $ 1,900,000 | |||
Technology | Opsmatic, Inc. | ||||
Business Acquisition [Line Items] | ||||
Preliminary purchase price allocation, identifiable intangible assets | $ 2,500,000 | |||
Estimated useful life | 3 years |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 170,437 | $ 169,647 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 44,221 | 36,118 |
Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 36,180 | 36,118 |
Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,441 | |
Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 2,600 | |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 118,101 | 125,414 |
Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 28,210 | |
Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 10,549 | |
Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 17,378 | 15,933 |
Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 11,276 | 2,297 |
Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 50,688 | 107,184 |
Restricted cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 8,115 | 8,115 |
Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 8,115 | 8,115 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 55,571 | 46,530 |
Level 1 | Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 36,180 | 36,118 |
Level 1 | Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 1 | Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 1 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 1 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 1 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 11,276 | 2,297 |
Level 1 | Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 8,115 | 8,115 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 114,866 | 123,117 |
Level 2 | Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,441 | |
Level 2 | Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 2,600 | |
Level 2 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 28,210 | |
Level 2 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 10,549 | |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 17,378 | 15,933 |
Level 2 | Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 50,688 | 107,184 |
Level 2 | Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 3 | Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 3 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 3 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 3 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities in an unrealized loss position 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 | Mar. 31, 2017 | Mar. 31, 2016 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due within one year | $ 92,874 | $ 103,822 |
Due in one to two years | 25,227 | 21,592 |
Total | $ 118,101 | $ 125,414 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 97,908 | $ 70,816 |
Less: accumulated depreciation and amortization | (47,180) | (30,669) |
Total property and equipment, net | 50,728 | 40,147 |
Computers, software, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,060 | 4,835 |
Site operation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 25,874 | 14,793 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,770 | 917 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 30,586 | 22,217 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 32,618 | $ 28,054 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 17.6 | $ 14 | $ 8.5 |
Goodwill and Purchased Intang41
Goodwill and Purchased Intangibles Assets - Schedule of Purchased Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,300 | $ 5,300 |
Accumulated Amortization | (2,801) | (1,639) |
Net Carrying Amount | 2,499 | 3,661 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,900 | 4,900 |
Accumulated Amortization | (2,401) | (1,339) |
Net Carrying Amount | 2,499 | 3,561 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 100 | 100 |
Accumulated Amortization | (100) | (75) |
Net Carrying Amount | 0 | 25 |
Other intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 300 | 300 |
Accumulated Amortization | (300) | (225) |
Net Carrying Amount | $ 0 | $ 75 |
Goodwill and Purchased Intang42
Goodwill and Purchased Intangibles Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1.1 | $ 1.1 | $ 0.5 |
Goodwill and Purchased Intang43
Goodwill and Purchased Intangibles Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Estimated Future Amortization Expense | ||
2,018 | $ 1,187 | |
2,019 | 787 | |
2,020 | 525 | |
Net Carrying Amount | $ 2,499 | $ 3,661 |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued liabilities | $ 3,709 | $ 2,480 |
Accrued tax liabilities | 975 | 787 |
Deferred rent | 948 | 413 |
Other | 1,975 | 1,045 |
Total other current liabilities | $ 7,607 | $ 4,725 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Deferred rent | $ 9,200,000 | $ 5,100,000 | |
Rent expense, net of sublease income, for operating leases | 9,800,000 | 6,400,000 | $ 5,200,000 |
Sublease income | 100,000 | 31,000 | $ 700,000 |
Future minimum sublease income under non-cancelable operating leases | 100,000 | ||
Purchase commitments | 29,900,000 | $ 11,900,000 | |
Accrued loss | $ 0 |
Commitments and Contingencies46
Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Future minimum lease payments under non-cancelable operating leases | |
2,018 | $ 10,335 |
2,019 | 10,447 |
2,020 | 10,737 |
2,021 | 7,607 |
2,022 | 6,054 |
Thereafter | 9,627 |
Total minimum future lease payments | $ 54,807 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Dec. 31, 2014 | Apr. 30, 2014 | Dec. 16, 2014 | |
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares authorized (in shares) | 10,000,000 | 24,962,000 | |
Convertible preferred stock, par value (in usd per share) | $ 0.001 | ||
Initial Public Offering | |||
Temporary Equity [Line Items] | |||
Common stock shares issued (in usd per share) | $ 23 | ||
Common Stock | |||
Temporary Equity [Line Items] | |||
Number of common stock shares issued upon conversion of convertible preferred stock (in shares) | 24,885,778 | ||
Series F Convertible Preferred Stock | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock shares issued (in shares) | 3,456,140 | ||
Common stock shares issued (in usd per share) | $ 28.93 | ||
Proceeds from sale of Convertible preferred stock | $ 97.2 | ||
Convertible preferred stock conversion rate (in shares) | 0.9804 | 1 | |
Convertible preferred stock, shares authorized (in shares) | 3,500,000 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Summary of Outstanding Convertible Preferred Stock (Detail) - USD ($) $ in Thousands | Dec. 31, 2014 | Dec. 16, 2014 |
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares authorized (in shares) | 10,000,000 | 24,962,000 |
Convertible preferred stock, shares issued and outstanding (in shares) | 24,813,000 | |
Convertible preferred stock, liquidation preference (in shares) | $ 196,383 | |
Series A | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares authorized (in shares) | 7,028,000 | |
Convertible preferred stock, shares issued and outstanding (in shares) | 7,000,000 | |
Convertible preferred stock, liquidation preference (in shares) | $ 3,500 | |
Series B | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares authorized (in shares) | 6,492,000 | |
Convertible preferred stock, shares issued and outstanding (in shares) | 6,492,000 | |
Convertible preferred stock, liquidation preference (in shares) | $ 7,940 | |
Series C | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares authorized (in shares) | 2,852,000 | |
Convertible preferred stock, shares issued and outstanding (in shares) | 2,852,000 | |
Convertible preferred stock, liquidation preference (in shares) | $ 9,943 | |
Series D | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares authorized (in shares) | 1,643,000 | |
Convertible preferred stock, shares issued and outstanding (in shares) | 1,566,000 | |
Convertible preferred stock, liquidation preference (in shares) | $ 15,000 | |
Series E | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares authorized (in shares) | 3,447,000 | |
Convertible preferred stock, shares issued and outstanding (in shares) | 3,447,000 | |
Convertible preferred stock, liquidation preference (in shares) | $ 60,000 | |
Series F | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares authorized (in shares) | 3,500,000 | |
Convertible preferred stock, shares issued and outstanding (in shares) | 3,456,000 | |
Convertible preferred stock, liquidation preference (in shares) | $ 100,000 |
Common Stock and Stockholders49
Common Stock and Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Detail) - shares shares in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 16,310 | 16,610 |
RSUs outstanding | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 1,978 | 1,549 |
Available for future stock option and RSU grants | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 8,034 | 6,561 |
Available for future employee stock purchase plan awards | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 1,648 | 1,360 |
Common stock options outstanding | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 4,607 | 7,050 |
Common stock reserved for issuance in connection with acquisition | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 43 | 90 |
Common Stock and Stockholders50
Common Stock and Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Class of Stock [Line Items] | ||||
Stock-based compensation expense | $ 31,946 | $ 23,268 | $ 11,666 | |
Shares available for issuance (in shares) | 16,310,000 | 16,610,000 | ||
Weighted-average grant-date fair value of options granted (in usd per share) | $ 12.75 | $ 14.41 | $ 9.20 | |
Intrinsic value of options exercised | $ 65,263 | $ 65,600 | $ 8,700 | |
Total fair value of RSUs vested | $ 17,100 | $ 5,500 | ||
RSUs vested (in shares) | 582,000 | 0 | ||
Expected to vest unrecognized stock-based compensation cost related to outstanding unvested stock options | $ 19,400 | |||
Stock-based compensation cost expected to be recognized over weighted-average period | 2 years 8 months 18 days | |||
Unrecognized stock-based compensation cost related to outstanding unvested stock awards | $ 53,100 | |||
New York Stock Exchange | ||||
Class of Stock [Line Items] | ||||
Closing stock price reported (in usd per share) | $ 37.07 | |||
Unvested Stock Options | ||||
Class of Stock [Line Items] | ||||
Stock-based compensation cost expected to be recognized over weighted-average period | 1 year 10 months 10 days | |||
ESPP shares | ||||
Class of Stock [Line Items] | ||||
Shares reserved for issuance under plan (in shares) | 1,000,000 | |||
Additional shares available for issuance under the plan (in shares) | 500,000 | |||
Percentage of common stock shares increased under the plan | 1.00% | |||
Common stock purchased under Employee Stock Purchase Plan (in shares) | 200,000 | 100,000 | ||
Stock-based compensation expense | $ 1,800 | $ 900 | ||
Shares available for issuance (in shares) | 1,647,744 | |||
Expected term (years) | 6 months | |||
2008 Equity Incentive Plan | ||||
Class of Stock [Line Items] | ||||
Shares available for issuance (in shares) | 0 | |||
2014 Equity Incentive Plan | ||||
Class of Stock [Line Items] | ||||
Shares reserved for issuance under plan (in shares) | 5,000,000 | |||
Shares available for issuance (in shares) | 8,033,841 | |||
Shares available for grant under plan (in shares) | 5,184,878 | |||
Increase in shares available under plan, percentage of outstanding common stock shares | 5.00% |
Common Stock and Stockholders51
Common Stock and Stockholders' Equity - Schedule of Stock Option and RSU Award Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Shares | |||
Beginning balance (in shares) | 7,050,000 | ||
Stock options granted (in shares) | 402,000 | ||
Stock options exercised (in shares) | (2,474,000) | ||
Stock options canceled/forfeited (in shares) | (371,000) | ||
Ending balance (in shares) | 4,607,000 | 7,050,000 | |
Options vested and expected to vest (in shares) | 4,591,000 | ||
Options vested and exercisable (in shares) | 2,722,000 | ||
Weighted- Average Exercise Price | |||
Beginning balance (in usd per share) | $ 13.20 | ||
Stock options granted (in usd per share) | 28.93 | ||
Stock options exercised (in usd per share) | 6.74 | ||
Stock options canceled/forfeited (in usd per share) | 20.15 | ||
Ending balance (in usd per share) | 17.49 | $ 13.20 | |
Options vested and expected to vest (in usd per share) | 17.45 | ||
Options vested and exercisable (in usd per share) | $ 13.96 | ||
Weighted-Average Remaining Contractual Term (in years) | |||
Balance | 7 years 1 month 5 days | 6 years 6 months | |
Options vested and expected to vest | 7 years 1 month 3 days | ||
Options vested and exercisable | 6 years 7 months 6 days | ||
Aggregate Intrinsic Value | |||
Beginning balance | $ 95,326 | ||
Stock options exercised | 65,263 | $ 65,600 | $ 8,700 |
Ending balance | 90,339 | $ 95,326 | |
Options vested and expected to vest | 90,232 | ||
Options vested and exercisable | $ 62,943 | ||
Number of Shares | |||
Beginning balance (in shares) | 1,549,000 | ||
RSUs granted (in shares) | 1,384,000 | ||
RSUs vested (in shares) | (582,000) | 0 | |
RSUs canceled/forfeited (in shares) | (373,000) | ||
Ending balance (in shares) | 1,978,000 | 1,549,000 | |
RSUs expected to vest (in shares) | 1,919,000 | ||
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 29.73 | ||
RSUs granted (in usd per share) | 28.75 | ||
RSUs vested (in usd per share) | 29.19 | ||
RSUs canceled/forfeited (in usd per share) | 29.11 | ||
Ending balance (in usd per share) | 29.32 | $ 29.73 | |
RSUs expected to vest (in usd per share) | $ 29.36 | ||
Weighted- Average Remaining Contractual Term (in years) | |||
Balance | 2 years 9 months 18 days | 3 years 1 month 6 days | |
Aggregate Intrinsic Value | |||
Balance | $ 73,309 | $ 40,387 | |
RSUs expected to vest | $ 71,134 |
Common Stock and Stockholders52
Common Stock and Stockholders' Equity - Schedule of Assumptions Used to Estimate Fair Value of Stock Options Granted and ESPP Shares to be Issued (Detail) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 0.00% | ||
Risk-free interest rate | 0.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 5 years | 5 years | |
Expected volatility | 46.00% | 45.00% | 45.00% |
Risk-free interest rate | 0.21% | 1.39% | 1.40% |
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 37.00% | 35.00% | |
Risk-free interest rate | 0.46% | 0.25% | |
Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 6 years | |
Expected volatility | 47.00% | 47.00% | 51.00% |
Risk-free interest rate | 2.17% | 1.93% | 2.01% |
Maximum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 6 months | 0 years |
Expected volatility | 44.00% | 54.00% | |
Risk-free interest rate | 0.67% | 0.42% |
Common Stock and Stockholders53
Common Stock and Stockholders' Equity - Schedule of Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 31,946 | $ 23,268 | $ 11,666 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,847 | 1,238 | 591 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 9,975 | 6,659 | 2,055 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 13,042 | 9,258 | 5,108 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 7,082 | $ 6,113 | $ 3,912 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (62,526) | $ (67,988) | $ (50,031) |
Foreign | 1,713 | 803 | (203) |
Total | $ (60,813) | $ (67,185) | $ (50,234) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Current Provision: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 18 | 93 | |
Foreign | 333 | 345 | 334 |
Total current provision | 351 | 438 | 334 |
Deferred Provision: | |||
Federal | 0 | (7) | (8) |
State | 0 | 0 | 0 |
Foreign | (87) | (129) | (411) |
Total deferred provision | (87) | (136) | (419) |
Total income tax provision (benefit) | $ 264 | $ 302 | $ (85) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Federal Statutory Rate and Provision for Income Taxes (Detail) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
Effect of: | |||
State taxes, net of federal benefits | 2.40% | 2.40% | 1.50% |
Stock-based compensation | (1.80%) | (1.50%) | (4.50%) |
Research and development credit | 3.50% | 3.50% | 1.80% |
Recognition of assets not previously recognized | 0.00% | 2.90% | 0.00% |
Other | 0.40% | (0.30%) | 0.00% |
Valuation allowance | (38.90%) | (41.40%) | (32.60%) |
Effective tax rate | (0.40%) | (0.50%) | 0.20% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred tax assets: | ||
Accrued expenses | $ 5,120 | $ 2,950 |
Depreciation and amortization | 3,183 | 1,677 |
Net operating loss carryforwards | 75,949 | 62,909 |
Stock based compensation | 7,109 | 4,645 |
Research and development credits | 8,079 | 5,840 |
Gross deferred tax assets | 99,440 | 78,021 |
Valuation allowance | (94,352) | (72,528) |
Total deferred tax assets | 5,088 | 5,493 |
Deferred tax liabilities: | ||
Prepaids | (1,912) | (1,402) |
Intangibles | 72 | (25) |
Capitalized research and development | (3,108) | (4,013) |
Total deferred tax liabilities | (4,948) | (5,440) |
Total net deferred tax assets | $ 140 | $ 53 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Contingency [Line Items] | ||||
Valuation allowance for company | $ 21,800,000 | $ 28,800,000 | ||
U.S Federal net operating losses | 313,800,000 | |||
State net operating losses | 161,400,000 | |||
Stock-based compensation for tax deductions | $ 7,109,000 | 4,645,000 | ||
Minimum percentage of ownership required to increase in stock of the ownership | 5.00% | |||
Increase in ownership percentage of certain stockholders | 50.00% | |||
Ownership change, increase in ownership percentage,term | 3 years | |||
Accumulated unremitted earnings from foreign subsidiaries | $ 2,200,000 | 900,000 | $ 100,000 | |
Unrecognized tax benefits | 4,985,000 | 3,489,000 | 1,826,000 | $ 735,000 |
Unrecognized tax benefits that would affect income tax expense | 5,000,000 | |||
Interest and penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 | |
U.S. | ||||
Income Tax Contingency [Line Items] | ||||
Expiration year | 2,028 | |||
Stock-based compensation for tax deductions | $ 105,000,000 | |||
U.S. | Research and Development | ||||
Income Tax Contingency [Line Items] | ||||
Research and development credits | $ 8,300,000 | |||
State Tax | ||||
Income Tax Contingency [Line Items] | ||||
Expiration year | 2,024 | |||
Stock-based compensation for tax deductions | $ 51,400,000 | |||
California | Research and Development | ||||
Income Tax Contingency [Line Items] | ||||
Research and development credits | 1,800,000 | |||
Oregon | Research and Development | ||||
Income Tax Contingency [Line Items] | ||||
Research and development credits | $ 1,800,000 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, Beginning balance | $ 3,489 | $ 1,826 | $ 735 |
Additions based on tax positions taken during the current period | 1,503 | 1,414 | 1,009 |
Additions based on tax positions taken during the prior period | 249 | 84 | |
Reductions based on tax positions taken during the prior period | (7) | (2) | |
Unrecognized tax benefits, Ending balance | $ 4,985 | $ 3,489 | $ 1,826 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Net Loss Per Share Attributable to Common Stockholders, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | |||
Net loss | $ (61,077) | $ (67,487) | $ (50,149) |
Denominator: | |||
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 51,715 | 48,410 | 25,290 |
Net loss per share, basic and diluted (in usd per share) | $ (1.18) | $ (1.39) | $ (1.98) |
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 | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 6,666 | 8,735 | 10,274 |
ESPP shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 38 | 46 | |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 1,978 | 1,549 | 723 |
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 43 | 90 | 129 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 4,607 | 7,050 | 9,422 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Postemployment Benefits [Abstract] | |||
Contributions to employee benefit plan | $ 2.3 | $ 2.1 | $ 1.4 |
Revenue by Geographic Locatio63
Revenue by Geographic Location - Schedule of Revenue by Geographic Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 263,479 | $ 181,309 | $ 110,391 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 178,727 | 121,588 | 73,416 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 49,825 | 34,602 | 21,043 |
APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 19,887 | 14,118 | 8,732 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 15,040 | $ 11,001 | $ 7,200 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |||
Revenue from sales to related parties | $ 1.8 | $ 0.9 | $ 0.7 |
Expenses related to purchases from related parties | 1.4 | 1.8 | $ 3.3 |
Accounts payable to related parties | $ 0.1 | $ 0.1 |