New Relic (NEWR) 10-Q 7 Feb 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2017	Jan. 26, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Trading Symbol	NEWR
Entity Registrant Name	NEW RELIC, INC.
Entity Central Index Key	1,448,056
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		55,441,340

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Current assets:
Cash and cash equivalents	$ 125,237	$ 88,305
Short-term investments	107,799	118,101
Accounts receivable, net of allowance for doubtful accounts of $1,075 and $1,117, respectively	52,676	62,032
Prepaid expenses and other current assets	9,431	8,169
Total current assets	295,143	276,607
Property and equipment, net	52,572	50,728
Restricted cash	8,202	8,115
Goodwill	11,828	11,828
Intangible assets, net	1,508	2,499
Other assets	5,740	2,492
Total assets	374,993	352,269
Current liabilities:
Accounts payable	3,737	6,522
Accrued compensation and benefits	18,092	15,935
Other current liabilities	6,904	7,607
Deferred revenue	134,889	125,269
Total current liabilities	163,622	155,333
Deferred rent, non-current	8,159	8,272
Deferred revenue, non-current	453	1,135
Other liabilities, non-current	709	685
Total liabilities	172,943	165,425
Commitments and contingencies (Note 5)
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized at December 31, 2017 and March 31, 2017; 55,657 shares and 53,539 shares issued at December 31, 2017 and March 31, 2017, respectively; and 55,397 shares and 53,279 shares outstanding at December 31, 2017 and March 31, 2017, respectively	56	53
Treasury stock - at cost (260 shares)	(263)	(263)
Additional paid-in capital	501,004	447,314
Accumulated other comprehensive loss	(229)	(96)
Accumulated deficit	(298,518)	(260,164)
Total stockholders’ equity	202,050	186,844
Total liabilities and stockholders’ equity	$ 374,993	$ 352,269

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,075	$ 1,117
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)	55,657,000	53,539,000
Common stock, shares outstanding (in shares)	55,397,000	53,279,000
Treasury stock, shares (in shares)	260,000	260,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue	$ 91,827	$ 68,096	$ 256,610	$ 190,143
Cost of revenue	15,671	12,627	46,342	36,060
Gross profit	76,156	55,469	210,268	154,083
Operating expenses:
Research and development	18,154	14,377	54,686	45,087
Sales and marketing	51,393	43,458	152,015	122,626
General and administrative	14,596	11,578	42,843	32,647
Total operating expenses	84,143	69,413	249,544	200,360
Loss from operations	(7,987)	(13,944)	(39,276)	(46,277)
Other income (expense):
Interest income	534	325	1,503	796
Interest expense	(21)	(21)	(64)	(63)
Other income (expense), net	(45)	(280)	117	(517)
Loss before income taxes	(7,519)	(13,920)	(37,720)	(46,061)
Income tax provision (benefit)	210	(37)	634	23
Net loss	$ (7,729)	$ (13,883)	$ (38,354)	$ (46,084)
Net loss per share, basic and diluted (in usd per share)	$ (0.14)	$ (0.27)	$ (0.70)	$ (0.90)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	55,196	52,328	54,534	51,297

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,729)	$ (13,883)	$ (38,354)	$ (46,084)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net of tax	(135)	(86)	(133)	(87)
Comprehensive loss	$ (7,864)	$ (13,969)	$ (38,487)	$ (46,171)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (38,354)	$ (46,084)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	17,306	13,356
Stock-based compensation expense	29,778	23,719
Other	498	822
Changes in operating assets and liabilities:
Accounts receivable	9,223	(6,478)
Prepaid expenses and other assets	(4,438)	(1,651)
Accounts payable	(829)	1,125
Accrued compensation and benefits and other liabilities	2,475	3,307
Deferred revenue	8,938	18,169
Deferred rent	(504)	3,052
Net cash provided by operating activities	24,093	9,337
Cash flows from investing activities:
Purchases of property and equipment	(17,577)	(16,601)
Increase in restricted cash	(87)	0
Purchases of short-term investments	(78,074)	(116,285)
Proceeds from sale and maturity of short-term investments	88,232	126,113
Capitalized software development costs	(3,054)	(3,075)
Net cash used in investing activities	(10,560)	(9,848)
Cash flows from financing activities:
Proceeds from employee stock purchase plan	3,029	2,504
Proceeds from exercise of employee stock options	20,370	12,263
Net cash provided by financing activities	23,399	14,767
Net increase in cash and cash equivalents	36,932	14,256
Cash and cash equivalents, beginning of period	88,305	65,914
Cash and cash equivalents, end of period	125,237	80,170
Supplemental disclosure of cash flow information:
Cash paid for interest and income taxes	358	226
Noncash investing and financing activities:
Property and equipment purchased but not yet paid	$ 256	$ 2,534

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Dec. 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 founded in 2007 and incorporated in Delaware on February 20, 2008. The Company is a software-as-a-service provider of digital intelligence products that 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 —These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017, as filed with the SEC on May 18, 2017 (the “Annual Report”). There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on its condensed consolidated financial statements and related notes. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2018. The condensed consolidated balance sheet as of March 31, 2017 included herein was derived from the audited financial statements as of that date. Use of Estimates —The preparation of the Company’s condensed 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 condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. Concentration of Risk —There were no customers that represented more than 10% of the Company’s accounts receivable balance as of December 31, 2017 . One customer represented 12% of the Company’s accounts receivable balance as of March 31, 2017 . There were no customers that individually exceeded 10% of the Company’s revenue during the three and nine months ended December 31, 2017 or 2016 . Short-term Investments —Short-term investments consist of commercial paper, certificates of deposit, 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 as 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 December 31, 2017 and March 31, 2017 . 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 condensed consolidated statements of operations. There has been no such adjustment as of December 31, 2017 . 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 December 31, 2017 , the Company has not had 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. Recent Accounting Pronouncements —In May 2014, the Financial Accounting Standards Board (“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. 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 currently intends to adopt Topic 606 using the modified retrospective approach in the first quarter of fiscal year 2019. As the Company continues to assess the new standard along with industry trends and internal progress, the Company may adjust its implementation plan accordingly. The Company anticipates that the significant impacts of adopting Topic 606 will include the deferral of incremental commission costs of obtaining contracts and additional disclosure requirements. Currently, the Company records commissions as sales and marketing expenses as incurred. Under the new standard, the Company will capitalize incremental commissions related to initial contracts over the expected period of benefit. The Company has not yet concluded the amortization period of these capitalized costs, which will affect the classification and magnitude of the deferred costs at each reporting period. The Company will continue to quantify the effects of adopting Topic 606 on its condensed consolidated financial statements, including the impact on its revenue as well as the changes discussed above. 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 condensed 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 Company adopted this standard in the first quarter of fiscal year 2018. Upon adoption, the Company recognized all of the previously unrecognized excess tax benefits related to stock awards using the modified retrospective transition method. These excess tax benefits, recognized upon adoption, were recorded as a deferred tax asset, which was then fully offset by the U.S. federal and state deferred tax asset valuation allowance resulting in no impact to the accumulated deficit. Without the valuation allowance, the Company’s deferred tax asset would have increased by $39.5 million . All future excess tax benefits resulting from the settlement of stock awards will be recorded to the income tax provision. 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 will be 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 May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new guidance will be effective for the Company in its fiscal year beginning April 1, 2018. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2017 and March 31, 2017 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 42,280 $ — $ — $ 42,280 Commercial paper — 6,486 — 6,486 U.S. treasury securities 2,997 — — 2,997 U.S. government agencies — 3,925 — 3,925 Short-term investments: Certificates of deposit — 25,601 — 25,601 Commercial paper — 12,648 — 12,648 Corporate notes and bonds — 15,837 — 15,837 U.S. treasury securities 18,937 — — 18,937 U.S. government agencies — 34,776 — 34,776 Restricted cash: Money market funds 8,202 — — 8,202 Total $ 72,416 $ 99,273 $ — $ 171,689 Included in cash and cash equivalents $ 55,688 Included in short-term investments $ 107,799 Included in restricted cash $ 8,202 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 There were no transfers between fair value measurement levels during the nine months ended December 31, 2017 and 2016 . Gross unrealized gains or losses for cash equivalents and short-term investments as of December 31, 2017 and March 31, 2017 were not significant. As of December 31, 2017 and March 31, 2017 , 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 December 31, 2017 and March 31, 2017 (in thousands): December 31, 2017 March 31, 2017 Due within one year $ 92,163 $ 92,874 Due in one to two years 15,636 25,227 Total $ 107,799 $ 118,101 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	9 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net, consisted of the following (in thousands): December 31, 2017 March 31, 2017 Computers, software, and equipment $ 8,023 $ 7,060 Site operation equipment 36,396 25,874 Furniture and fixtures 2,375 1,770 Leasehold improvements 31,943 30,586 Capitalized software development costs 36,199 32,618 Total property and equipment 114,936 97,908 Less: accumulated depreciation and amortization (62,364 ) (47,180 ) Total property and equipment, net $ 52,572 $ 50,728 Depreciation and amortization expense related to property and equipment was $5.5 million and $4.6 million for the three months ended December 31, 2017 and 2016 , respectively, and $16.3 million and $12.6 million for the nine months ended December 31, 2017 and 2016 , respectively.

Goodwill and Purchased Intangib

Goodwill and Purchased Intangibles Assets	9 Months Ended
	Dec. 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 nine months ended December 31, 2017 . Purchased intangible assets subject to amortization as of December 31, 2017 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (3,392 ) $ 1,508 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 Amortization expense of purchased intangible assets was $0.2 million and $0.2 million for the three months ended December 31, 2017 and 2016 , respectively, and $1.0 million and $0.7 million for the nine months ended December 31, 2017 and 2016 , respectively. Estimated future amortization expense as of December 31, 2017 is as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2018 (remaining 3 months) $ 196 2019 787 2020 525 $ 1,508

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Dec. 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 2018 through 2027. On November 1, 2017, the Company entered into a lease amendment (the “Amendment”) with 188 Spear Street LLC, the landlord of the building which is located at 188 Spear Street, San Francisco, California, to early renew and extend the term of its current operating lease through July 2027. The landlord has agreed to provide the Company with a construction allowance of approximately $2.6 million . 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 December 31, 2017 and March 31, 2017 , $8.9 million and $9.2 million was recorded as deferred rent, respectively. Rent expense, net of sublease income, for operating leases was $3.1 million and $2.4 million for the three months ended December 31, 2017 and 2016 , respectively, and $8.4 million and $7.3 million for the nine months ended December 31, 2017 and 2016 , respectively. Future minimum lease payments under non-cancelable operating leases as of December 31, 2017 were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2018 (remaining 3 months) $ 3,357 2019 13,088 2020 14,339 2021 14,601 2022 14,739 Thereafter 59,507 Total minimum future lease payments $ 119,631 Purchase Commitments —As of December 31, 2017 and March 31, 2017 , the Company had purchase commitments of $24.7 million and $29.9 million , respectively, primarily related to hosting 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 December 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 December 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 condensed consolidated financial statements. In addition, the Company indemnifies its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. The Company does not currently believe there is a reasonable possibility that a loss may have been incurred under these indemnification obligations. To date, there have been no claims under any such indemnification provisions.

Common Stock and Stockholders'

Common Stock and Stockholders' Equity	9 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Common Stock and Stockholders' Equity	Common Stock and Stockholders’ Equity Employee Stock Purchase Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Employee Stock Purchase Plan (the “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 each of the three and nine months ended December 31, 2017 , 101,493 shares of common stock were purchased under the ESPP. For each of the three and nine months ended December 31, 2016 , 118,658 shares of common stock were purchased under the ESPP. Stock-based compensation expense recognized related to the ESPP was $0.6 million and $0.5 million for the three months ended December 31, 2017 and 2016 , respectively, and $1.6 million and $1.4 million for the nine months ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 , there were 2,046,251 shares available for issuance under the ESPP. 2008 Equity Incentive Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the 2008 Equity Incentive Plan (the “2008 Plan”) in February 2008. The 2008 Plan was terminated in connection with the Company’s initial public offering (“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 December 31, 2017 , there were 9,821,601 shares available for issuance under the 2014 Plan. The following table summarizes the Company’s stock option and RSU award activities for the nine months ended December 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, 2017 4,607 $ 17.49 7.1 $ 90,339 1,978 $ 29.32 2.8 $ 73,309 Stock options granted 475 45.27 RSUs granted 1,001 45.59 Stock options exercised (1,386 ) 14.67 42,151 RSUs vested (587 ) 30.89 Stock options canceled/forfeited (246 ) 26.20 RSUs canceled/forfeited (354 ) 32.02 Outstanding - December 31, 2017 3,450 $ 21.83 6.8 $ 124,015 2,038 $ 36.40 2.7 $ 117,718 Stock-Based Compensation Expense —Aggregate stock-based compensation expense for employees and nonemployees was $9.9 million and $8.1 million for the three months ended December 31, 2017 and 2016 , respectively, and $29.8 million and $23.7 million for the nine months ended December 31, 2017 and 2016 , respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Cost of revenue $ 587 $ 475 $ 1,716 $ 1,369 Research and development 2,959 2,390 9,100 7,453 Sales and marketing 3,933 3,479 12,114 9,650 General and administrative 2,454 1,774 6,848 5,247 Total stock-based compensation expense $ 9,933 $ 8,118 $ 29,778 $ 23,719 As of December 31, 2017 , unrecognized stock-based compensation cost related to outstanding unvested stock options was $16.8 million , which is expected to be recognized over a weighted-average period of approximately 2.0 years. As of December 31, 2017 , unrecognized stock-based compensation cost related to outstanding unvested stock units was $67.9 million , which is expected to be recognized over a weighted-average period of approximately 2.7 years.

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are expected to be reinvested indefinitely. The Company recorded an income tax provision of $0.2 million and an income tax benefit of $37,000 for the three months ended December 31, 2017 and 2016 , respectively, and an income tax provision of $0.6 million and $23,000 for the nine months ended December 31, 2017 and 2016 , respectively, related to foreign income taxes and state minimum taxes. Based on the available objective evidence during the three and nine months ended December 31, 2017 , the Company believes it is more likely than not that the tax benefits of the U.S. losses incurred during the three and nine months ended December 31, 2017 may not be realized. Accordingly, the Company did not record the tax benefits of U.S. losses incurred during the three and nine months ended December 31, 2017 . The primary difference between the effective tax rate and the local statutory tax rate relates to the valuation allowance on the Company’s U.S. losses, foreign tax rate differences, and amortization of a deferred charge associated with the intercompany transfer of intellectual property from prior periods. On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was signed into federal law, which among other changes reduces the federal corporate tax rate to 21%. The Company does not expect the TCJA to have a material impact on its condensed consolidated financial statements due to its valuation allowance in the U.S., which nets deferred tax balances to zero. Based on the Company’s analysis, deferred tax assets have been revalued from 34% to 21% with a corresponding offset to the valuation allowance and any other potential taxes arising due to the TCJA will result in reductions to its net operating loss and valuation allowance. The Company will continue to analyze the TCJA to assess the full effects on the Company’s financial results, including disclosures, for its fiscal year ending March 31, 2018.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee share-based awards and warrants. Diluted net loss per share is computed giving effect to all potential dilutive common shares, including common stock issuable upon exercise of stock options and unvested restricted common stock. As the Company had net losses for each of the three and nine months ended December 31, 2017 and 2016 , all potential common shares were determined to be anti-dilutive, resulting in basic and diluted net loss per share being equal. The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Numerator: Net loss $ (7,729 ) $ (13,883 ) $ (38,354 ) $ (46,084 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 55,196 52,328 54,534 51,297 Net loss per share—basic and diluted $ (0.14 ) $ (0.27 ) $ (0.70 ) $ (0.90 ) 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 December 31, 2017 2016 Options to purchase common stock 3,450 4,931 Restricted stock units 2,038 2,080 ESPP shares 99 104 Common stock reserved for issuance in connection with acquisition — 43 5,587 7,158

Revenue by Geographic Location

Revenue by Geographic Location	9 Months Ended
	Dec. 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): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 United States $ 62,966 $ 46,084 $ 175,765 $ 128,806 EMEA 16,732 13,036 47,225 36,043 APAC 6,918 5,080 19,025 14,443 Other 5,211 3,896 14,595 10,851 Total revenue $ 91,827 $ 68,096 $ 256,610 $ 190,143 Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of December 31, 2017 and March 31, 2017 .

Description of Business and S16

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Description of Business	Description of Business —New Relic, Inc. (the “Company” or “New Relic”) was founded in 2007 and incorporated in Delaware on February 20, 2008. The Company is a software-as-a-service provider of digital intelligence products that 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	Basis of Presentation —These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017, as filed with the SEC on May 18, 2017 (the “Annual Report”). There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on its condensed consolidated financial statements and related notes. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2018. The condensed consolidated balance sheet as of March 31, 2017 included herein was derived from the audited financial statements as of that date.
Use of Estimates	Use of Estimates —The preparation of the Company’s condensed 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 condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates.
Concentration of Risk	Concentration of Risk —There were no customers that represented more than 10% of the Company’s accounts receivable balance as of December 31, 2017 . One customer represented 12% of the Company’s accounts receivable balance as of March 31, 2017 . There were no customers that individually exceeded 10% of the Company’s revenue during the three and nine months ended December 31, 2017 or 2016 .
Short-term Investments	Short-term Investments —Short-term investments consist of commercial paper, certificates of deposit, 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 as 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 December 31, 2017 and March 31, 2017 .
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 condensed consolidated statements of operations. There has been no such adjustment as of December 31, 2017 .
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. Since inception through December 31, 2017 , the Company has not had any goodwill impairment.
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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements —In May 2014, the Financial Accounting Standards Board (“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. 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 currently intends to adopt Topic 606 using the modified retrospective approach in the first quarter of fiscal year 2019. As the Company continues to assess the new standard along with industry trends and internal progress, the Company may adjust its implementation plan accordingly. The Company anticipates that the significant impacts of adopting Topic 606 will include the deferral of incremental commission costs of obtaining contracts and additional disclosure requirements. Currently, the Company records commissions as sales and marketing expenses as incurred. Under the new standard, the Company will capitalize incremental commissions related to initial contracts over the expected period of benefit. The Company has not yet concluded the amortization period of these capitalized costs, which will affect the classification and magnitude of the deferred costs at each reporting period. The Company will continue to quantify the effects of adopting Topic 606 on its condensed consolidated financial statements, including the impact on its revenue as well as the changes discussed above. 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 condensed 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 Company adopted this standard in the first quarter of fiscal year 2018. Upon adoption, the Company recognized all of the previously unrecognized excess tax benefits related to stock awards using the modified retrospective transition method. These excess tax benefits, recognized upon adoption, were recorded as a deferred tax asset, which was then fully offset by the U.S. federal and state deferred tax asset valuation allowance resulting in no impact to the accumulated deficit. Without the valuation allowance, the Company’s deferred tax asset would have increased by $39.5 million . All future excess tax benefits resulting from the settlement of stock awards will be recorded to the income tax provision. 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 will be 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 May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new guidance will be effective for the Company in its fiscal year beginning April 1, 2018. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Dec. 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 December 31, 2017 and March 31, 2017 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of December 31, 2017 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 42,280 $ — $ — $ 42,280 Commercial paper — 6,486 — 6,486 U.S. treasury securities 2,997 — — 2,997 U.S. government agencies — 3,925 — 3,925 Short-term investments: Certificates of deposit — 25,601 — 25,601 Commercial paper — 12,648 — 12,648 Corporate notes and bonds — 15,837 — 15,837 U.S. treasury securities 18,937 — — 18,937 U.S. government agencies — 34,776 — 34,776 Restricted cash: Money market funds 8,202 — — 8,202 Total $ 72,416 $ 99,273 $ — $ 171,689 Included in cash and cash equivalents $ 55,688 Included in short-term investments $ 107,799 Included in restricted cash $ 8,202 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
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 December 31, 2017 and March 31, 2017 (in thousands): December 31, 2017 March 31, 2017 Due within one year $ 92,163 $ 92,874 Due in one to two years 15,636 25,227 Total $ 107,799 $ 118,101

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net, consisted of the following (in thousands): December 31, 2017 March 31, 2017 Computers, software, and equipment $ 8,023 $ 7,060 Site operation equipment 36,396 25,874 Furniture and fixtures 2,375 1,770 Leasehold improvements 31,943 30,586 Capitalized software development costs 36,199 32,618 Total property and equipment 114,936 97,908 Less: accumulated depreciation and amortization (62,364 ) (47,180 ) Total property and equipment, net $ 52,572 $ 50,728

Goodwill and Purchased Intang19

Goodwill and Purchased Intangibles Assets (Tables)	9 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Purchased Intangible Assets Subject to Amortization	Purchased intangible assets subject to amortization as of December 31, 2017 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (3,392 ) $ 1,508 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
Schedule of Estimated Future Amortization Expense	Estimated future amortization expense as of December 31, 2017 is as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2018 (remaining 3 months) $ 196 2019 787 2020 525 $ 1,508

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Dec. 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 December 31, 2017 were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2018 (remaining 3 months) $ 3,357 2019 13,088 2020 14,339 2021 14,601 2022 14,739 Thereafter 59,507 Total minimum future lease payments $ 119,631

Common Stock and Stockholders21

Common Stock and Stockholders' Equity (Tables)	9 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Schedule of Stock Option and RSU Award Activities	The following table summarizes the Company’s stock option and RSU award activities for the nine months ended December 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, 2017 4,607 $ 17.49 7.1 $ 90,339 1,978 $ 29.32 2.8 $ 73,309 Stock options granted 475 45.27 RSUs granted 1,001 45.59 Stock options exercised (1,386 ) 14.67 42,151 RSUs vested (587 ) 30.89 Stock options canceled/forfeited (246 ) 26.20 RSUs canceled/forfeited (354 ) 32.02 Outstanding - December 31, 2017 3,450 $ 21.83 6.8 $ 124,015 2,038 $ 36.40 2.7 $ 117,718
Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses	ost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Cost of revenue $ 587 $ 475 $ 1,716 $ 1,369 Research and development 2,959 2,390 9,100 7,453 Sales and marketing 3,933 3,479 12,114 9,650 General and administrative 2,454 1,774 6,848 5,247 Total stock-based compensation expense $ 9,933 $ 8,118 $ 29,778 $ 23,719

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Computation of Net Loss Per Share, Basic and Diluted	The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Numerator: Net loss $ (7,729 ) $ (13,883 ) $ (38,354 ) $ (46,084 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 55,196 52,328 54,534 51,297 Net loss per share—basic and diluted $ (0.14 ) $ (0.27 ) $ (0.70 ) $ (0.90 )
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 December 31, 2017 2016 Options to purchase common stock 3,450 4,931 Restricted stock units 2,038 2,080 ESPP shares 99 104 Common stock reserved for issuance in connection with acquisition — 43 5,587 7,158

Revenue by Geographic Location

Revenue by Geographic Location (Tables)	9 Months Ended
	Dec. 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): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 United States $ 62,966 $ 46,084 $ 175,765 $ 128,806 EMEA 16,732 13,036 47,225 36,043 APAC 6,918 5,080 19,025 14,443 Other 5,211 3,896 14,595 10,851 Total revenue $ 91,827 $ 68,096 $ 256,610 $ 190,143

Description of Business and S24

Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2017	Mar. 31, 2016
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Other-than-temporary impaired investments	$ 0	$ 0
Goodwill impairment	$ 0
One Customer | Accounts Receivable | Credit Concentration Risk
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Concentration of risk, percentage		12.00%
Accounting Standards Update 2016-09
Description Of Business And Summary Of Significant Accounting Policies [Line Items]
Deferred tax assets, increase without the valuation allowance			$ 39,500,000
Deferred tax assets, valuation allowance			$ 39,500,000

Fair Value Measurements - Infor

Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	$ 171,689	$ 170,437
Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	55,688	44,221
Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	107,799	118,101
Restricted cash:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,202	8,115
Money market funds | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	42,280	36,180
Commercial paper | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	6,486	5,441
Commercial paper | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	12,648	10,549
Certificates of deposit | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	25,601	28,210
Corporate notes and bonds | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	15,837	17,378
U.S. treasury securities | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	2,997
U.S. treasury securities | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	18,937	11,276
U.S. government agencies | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	3,925	2,600
U.S. government agencies | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	34,776	50,688
Money market funds | Restricted cash:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,202	8,115
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	72,416	55,571
Level 1 | Money market funds | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	42,280	36,180
Level 1 | Commercial paper | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 1 | Commercial paper | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 1 | Certificates of deposit | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 1 | Corporate notes and bonds | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 1 | U.S. treasury securities | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	2,997
Level 1 | U.S. treasury securities | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	18,937	11,276
Level 1 | U.S. government agencies | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 1 | U.S. government agencies | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 1 | Money market funds | Restricted cash:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,202	8,115
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	99,273	114,866
Level 2 | Money market funds | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 2 | Commercial paper | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	6,486	5,441
Level 2 | Commercial paper | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	12,648	10,549
Level 2 | Certificates of deposit | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	25,601	28,210
Level 2 | Corporate notes and bonds | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	15,837	17,378
Level 2 | U.S. treasury securities | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0
Level 2 | U.S. treasury securities | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 2 | U.S. government agencies | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	3,925	2,600
Level 2 | U.S. government agencies | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	34,776	50,688
Level 2 | Money market funds | Restricted cash:
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 | Money market funds | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | Commercial paper | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | Commercial paper | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | Certificates of deposit | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | Corporate notes and bonds | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | U.S. treasury securities | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0
Level 3 | U.S. treasury securities | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | U.S. government agencies | Cash and cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | U.S. government agencies | Short-term investments:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	0	0
Level 3 | Money market funds | Restricted cash:
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 ($)	Dec. 31, 2017	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Unrealized loss position of securities for more than 12 months	$ 0	$ 0

Fair Value Measurements - Class

Fair Value Measurements - Classification of Available-for-Sale Short-Term Investments by Contractual Maturities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Due within one year	$ 92,163	$ 92,874
Due in one to two years	15,636	25,227
Total	$ 107,799	$ 118,101

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 114,936	$ 97,908
Less: accumulated depreciation and amortization	(62,364)	(47,180)
Total property and equipment, net	52,572	50,728
Computers, software, and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	8,023	7,060
Site operation equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	36,396	25,874
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	2,375	1,770
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	31,943	30,586
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 36,199	$ 32,618

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 5.5	$ 4.6	$ 16.3	$ 12.6

Goodwill and Purchased Intang30

Goodwill and Purchased Intangibles Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Change in carrying amount of goodwill			$ 0
Amortization expense	$ 200,000	$ 200,000	$ 1,000,000	$ 700,000

Goodwill and Purchased Intang31

Goodwill and Purchased Intangibles Assets - Schedule of Purchased Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 1,508	$ 2,499
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,900	4,900
Accumulated Amortization	(3,392)	(2,401)
Net Carrying Amount	$ 1,508	$ 2,499

Goodwill and Purchased Intang32

Goodwill and Purchased Intangibles Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2018 (remaining 3 months)	$ 196
2,019	787
2,020	525
Net Carrying Amount	$ 1,508	$ 2,499

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	Nov. 01, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Operating Leased Assets [Line Items]
Deferred rent		$ 8.9		$ 8.9		$ 9.2
Rent expense, net of sublease income, for operating leases		3.1	$ 2.4	8.4	$ 7.3
Purchase commitments		$ 24.7		$ 24.7		$ 29.9
188 Spear Street, San Francisco, California
Operating Leased Assets [Line Items]
Construction allowance	$ 2.6

Commitments and Contingencies34

Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2017USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018 (remaining 3 months)	$ 3,357
2,019	13,088
2,020	14,339
2,021	14,601
2,022	14,739
Thereafter	59,507
Total minimum future lease payments	$ 119,631

Common Stock and Stockholders35

Common Stock and Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2014	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Class of Stock [Line Items]
Common stock, shares authorized (in shares)		100,000,000		100,000,000		100,000,000
Common stock, par value (in usd per share)		$ 0.001		$ 0.001		$ 0.001
Stock-based compensation expense		$ 9,933	$ 8,118	$ 29,778	$ 23,719
Unrecognized stock-based compensation cost related to outstanding unvested stock awards		16,800		$ 16,800
Stock-based compensation cost expected to be recognized over weighted-average period				1 year 11 months 18 days
Expected to vest unrecognized stock-based compensation cost related to outstanding unvested stock options		$ 67,900		$ 67,900
Unvested Stock Options
Class of Stock [Line Items]
Stock based compensation cost is expected to be recognized over a weighted-average period				2 years 8 months 5 days
ESPP shares
Class of Stock [Line Items]
Shares reserved for issuance under plan (in shares)		1,000,000		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)		101,493	118,658	101,493	118,658
Stock-based compensation expense		$ 600	$ 500	$ 1,600	$ 1,400
Shares available for issuance (in shares)		2,046,251		2,046,251
2008 Equity Incentive Plan
Class of Stock [Line Items]
Shares available for issuance (in shares)		0		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)		9,821,601		9,821,601
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 Stockholders36

Common Stock and Stockholders' Equity - Schedule of Stock Option and RSU Award Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2017
Number of Shares
Beginning balance (in shares)	4,607
Stock options granted (in shares)	475
Stock options exercised (in shares)	(1,386)
Stock options canceled/forfeited (in shares)	(246)
Ending balance (in shares)	3,450	4,607
Weighted- Average Exercise Price
Beginning balance (in usd per share)	$ 17.49
Stock options granted (in usd per share)	45.27
Stock options exercised (in usd per share)	14.67
Stock options canceled/forfeited (in usd per share)	26.20
Ending balance (in usd per share)	$ 21.83	$ 17.49
Weighted- Average Remaining Contractual Term (in years)
Weighted- Average Remaining Contractual Term (in years)	6 years 10 months 3 days	7 years 1 month 5 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value, outstanding	$ 90,339
Stock options exercised	42,151
Ending aggregate intrinsic value, outstanding	$ 124,015	$ 90,339
Number of Shares
Beginning balance (in shares)	1,978
RSUs granted (in shares)	1,001
RSUs vested (in shares)	(587)
RSUs canceled/forfeited (in shares)	(354)
Ending balance (in shares)	2,038	1,978
Weighted- Average Grant Date Fair Value
Beginning balance (in usd per share)	$ 29.32
RSUs granted (in usd per share)	45.59
RSUs vested (in usd per share)	30.89
RSUs canceled/forfeited (in usd per share)	32.02
Ending balance (in usd per share)	$ 36.40	$ 29.32
Weighted- Average Remaining Contractual Term (in years)
Weighted- Average Remaining Contractual Term (in years)	2 years 8 months 12 days	2 years 9 months 18 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value, outstanding	$ 73,309
Ending aggregate intrinsic value, outstanding	$ 117,718	$ 73,309

Common Stock and Stockholders37

Common Stock and Stockholders' Equity - Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 9,933	$ 8,118	$ 29,778	$ 23,719
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	587	475	1,716	1,369
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,959	2,390	9,100	7,453
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,933	3,479	12,114	9,650
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 2,454	$ 1,774	$ 6,848	$ 5,247

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 210	$ (37)	$ 634	$ 23

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Net Loss Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net loss	$ (7,729)	$ (13,883)	$ (38,354)	$ (46,084)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	55,196	52,328	54,534	51,297
Net loss per share-basic and diluted (in usd per share)	$ (0.14)	$ (0.27)	$ (0.70)	$ (0.90)

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	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per common share	5,587	7,158
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	99	104
Common stock reserved for issuance in connection with acquisition
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per common share	0	43
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	2,038	2,080
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	3,450	4,931

Revenue by Geographic Locatio41

Revenue by Geographic Location - Schedule of Revenue by Geographic Areas (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total revenue	$ 91,827	$ 68,096	$ 256,610	$ 190,143
Other
Segment Reporting Information [Line Items]
Total revenue	5,211	3,896	14,595	10,851
United States
Segment Reporting Information [Line Items]
Total revenue	62,966	46,084	175,765	128,806
EMEA
Segment Reporting Information [Line Items]
Total revenue	16,732	13,036	47,225	36,043
APAC
Segment Reporting Information [Line Items]
Total revenue	$ 6,918	$ 5,080	$ 19,025	$ 14,443