New Relic (NEWR) 10-Q 8 Aug 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Trading Symbol	NEWR
Entity Registrant Name	NEW RELIC, INC.
Entity Central Index Key	1,448,056
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		56,509,872

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Current assets:
Cash and cash equivalents	$ 554,875	$ 132,479
Short-term investments	166,061	115,441
Accounts receivable, net of allowance for doubtful accounts of $1,597 and $1,728, respectively	59,366	99,488
Prepaid expenses and other current assets	14,773	15,591
Deferred contract acquisition costs	21,498	0
Total current assets	816,573	362,999
Property and equipment, net	54,932	53,899
Restricted cash	8,202	8,202
Goodwill	11,828	11,828
Intangible assets, net	1,115	1,312
Deferred contract acquisition costs, non-current	20,775	0
Other assets	5,065	5,086
Total assets	918,490	443,326
Current liabilities:
Accounts payable	4,304	2,985
Accrued compensation and benefits	17,816	17,414
Other current liabilities	8,843	8,619
Deferred revenue	182,008	189,633
Total current liabilities	212,971	218,651
Convertible senior notes, net	390,873	0
Deferred rent, non-current	8,687	8,147
Deferred revenue, non-current	878	649
Other liabilities, non-current	733	775
Total liabilities	614,142	228,222
Commitments and contingencies (Note 5)
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized at June 30, 2018 and March 31, 2018; 56,758 shares and 56,213 shares issued at June 30, 2018 and March 31, 2018, respectively; and 56,498 shares and 55,953 shares outstanding at June 30, 2018 and March 31, 2018, respectively	57	56
Treasury stock - at cost (260 shares)	(263)	(263)
Additional paid-in capital	575,110	521,119
Accumulated other comprehensive loss	(270)	(324)
Accumulated deficit	(270,286)	(305,484)
Total stockholders’ equity	304,348	215,104
Total liabilities and stockholders’ equity	$ 918,490	$ 443,326

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,597	$ 1,728
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)	56,758,000	56,213,000
Common stock, shares outstanding (in shares)	56,498,000	55,953,000
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
	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 108,221	$ 80,098
Cost of revenue	17,050	14,977
Gross profit	91,171	65,121
Operating expenses:
Research and development	22,603	18,266
Sales and marketing	57,488	49,361
General and administrative	14,711	13,942
Total operating expenses	94,802	81,569
Loss from operations	(3,631)	(16,448)
Other income (expense):
Interest income	1,845	457
Interest expense	(2,666)	(22)
Other income (expense), net	(842)	314
Loss before income taxes	(5,294)	(15,699)
Income tax provision	321	235
Net loss	$ (5,615)	$ (15,934)
Net loss per share, basic and diluted (in usd per share)	$ (0.10)	$ (0.30)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	56,183	53,697

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,615)	$ (15,934)
Other comprehensive loss:
Unrealized gain (loss) on available-for-sale securities, net of tax	54	(17)
Comprehensive loss	$ (5,561)	$ (15,951)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (5,615)	$ (15,934)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	12,201	5,732
Stock-based compensation expense	11,027	9,623
Amortization of debt discount and issuance costs	2,340	0
Other	842	180
Changes in operating assets and liabilities:
Accounts receivable	40,123	22,862
Prepaid expenses and other assets	933	(4,643)
Deferred contract acquisition costs	(7,444)	0
Accounts payable	1,116	656
Accrued compensation and benefits and other liabilities	1,506	177
Deferred revenue	(7,157)	(757)
Deferred rent	512	(215)
Net cash provided by operating activities	50,384	17,681
Cash flows from investing activities:
Purchases of property and equipment	(7,040)	(7,414)
Purchases of short-term investments	(76,179)	(28,959)
Proceeds from sale and maturity of short-term investments	25,800	24,954
Capitalized software development costs	(1,850)	(732)
Net cash used in investing activities	(59,269)	(12,151)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $11,582	488,669	0
Purchase of capped call related to convertible senior notes	(63,182)	0
Proceeds from exercise of employee stock options	5,794	11,372
Net cash provided by financing activities	431,281	11,372
Net increase in cash, cash equivalents and restricted cash	422,396	16,902
Cash, cash equivalents and restricted cash at beginning of period	140,681	96,420
Cash, cash equivalents and restricted cash at end of period	563,077	113,322
Supplemental disclosure of cash flow information:
Cash paid for interest and income taxes	213	99
Noncash investing and financing activities:
Property and equipment purchased but not yet paid	$ 1,168	$ 520

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement of Cash Flows [Abstract]
Payments of debt issuance costs	$ 11,582	$ 0

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2018
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, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company is a software-as-a-service provider of 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 products and platform capabilities enable software developers, IT operations, and business users to better operate 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, 2018, as filed with the SEC on May 11, 2018 (the “Annual Report”). Except for updates to the Company’s accounting policies related to the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” regarding Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”), 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. Effective April 1, 2018, we adopted the requirements of ASC 606. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented, ASC 605, Revenue Recognition (“ASC 605”). 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 period, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2019. The condensed consolidated balance sheet as of March 31, 2018 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. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, fair value of debt and equity components related to the 0.5% convertible senior notes due 2023 (the “Notes”), useful lives of purchased intangible assets, unrecognized tax benefits, expected benefit period for deferred commissions 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 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 June 30, 2018 and March 31, 2018 . There were no customers that individually exceeded 10% of the Company’s revenue during the three months ended June 30, 2018 or 2017 . Summary of Significant Accounting Policies —Except for the accounting policies for revenue recognition, deferred revenue and deferred commissions that were updated as a result of adopting ASC 606 and those related to our Notes, there have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, filed with the SEC on May 11, 2018 that have had a material impact on our condensed consolidated financial statements and related notes. See Note 2 for a summary of our new accounting policies under ASC 606. Recent Accounting Pronouncements —In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers regarding Accounting Standards Codification Topic 606 (“ASC 606”) ASC 606, amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers , which requires the deferral of incremental costs of obtaining a contract with a customer. The Company adopted ASC606 and its related amendments effective on April 1, 2018 using the modified retrospective method. See Note 2 for disclosure on the impact of adopting this standard on the Company’s condensed 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 condensed consolidated financial statements. 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 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. The Company adopted the standard in its fiscal year beginning April 1, 2018. Adoption was applied on a retrospective basis to all periods presented. Aside from conforming to new cash flow presentation and restricted cash disclosure requirements, the standard did not have a material impact on the Company’s 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. 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. On April 1, 2018, the Company adopted ASU 2017-09 and the adoption did not have a significant impact on its condensed consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, which amends ASC Topic 740 “Income Taxes” to conform with SEC Staff Accounting Bulletin (SAB) No. 118, issued in December 2017. The guidance was issued to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. See Note 9- Income Taxes.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition The Company offers a comprehensive suite of products delivered on its open and extensible cloud-based platform that enable organizations to collect, store and analyze massive amounts of data in real time so they can better operate their applications and infrastructure and improve their digital customer experience. The Company generates revenue by selling subscription-based arrangements that allow its customers to access its cloud-based platform. The Company determines revenue recognition through the following steps: (i) identification of the contract, or contracts with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations in the contract, and (v) recognition of revenue, when, or as, the Company satisfies a performance obligation. Subscription revenue is recognized on a ratable basis over the contractual subscription period of the arrangement beginning when or as control of the promised goods or services is transferred to the customer. Deferred revenue consists of billings or payments received in advance of revenue being recognized. ASC 606 Adoption Impact The primary impact of adopting the new standard relates to the deferral of incremental commission costs of obtaining contracts. Previously, the Company recorded commissions as sales and marketing expenses as incurred. Under the new standard, the Company capitalizes incremental commissions related to initial contracts and amortizes such costs over the expected period of benefit, which the Company has determined to be three years. With regards to incremental commissions related to renewal contracts, the Company has adopted the practical expedient to expense such commissions as incurred, as the commission paid on renewals are commensurate and the contract periods are generally one year or less. The Company has adopted Topic 606 in the first quarter of fiscal year 2019 using the modified retrospective approach and applied the standard to all contracts as of April 1, 2018. The cumulative effect of applying the standard has been recognized on April 1, 2018. See below for the impact of adopting this standard. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at April 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented, ASC 605. In connection with the adoption of ASC 606, the Company also adopted ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. Collectively, the Company refers to ASC 606 and ASC 340-40 as the “new standard.” Adoption of the new standard resulted in changes to the Company’s accounting policies for revenue recognition, commissions and deferred commissions as discussed below. The Company recorded a net reduction to the opening balance of accumulated deficit of $ 40.8 million as of April 1, 2018 due to the cumulative impact of adopting the new standard. The primary impact of adopting the new standard relates to the deferral of $40.6 million in incremental commission costs of obtaining subscription contracts. Under ASC 605, the Company recorded commissions as sales and marketing expenses as incurred. Under the new standard, the Company capitalizes incremental commissions related to initial contracts and amortizes these costs over a period of benefit determined to be three years. The remaining impact of adopting the standard is immaterial. Practical Expedients and Exemptions The Company applied ASC 606 using the following practical expedients: (i) costs of obtaining contracts with customers are expensed when the amortization period would have been one year or less; and (ii) the Company also used the practical expedient to calculate contract acquisition costs based on a portfolio of contracts with similar characteristics instead of on a contract-by-contract analysis. Impact on the Condensed Consolidated Financial Statements Select condensed consolidated balance sheet line items, which reflects the adoption impact of the new standard as reported, as well as the impact of adoption, are as follows (in thousands): June 30, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Assets: Deferred contract acquisition costs $ 21,498 $ — $ 21,498 Deferred contract acquisition costs, non-current 20,775 — 20,775 Liabilities: Deferred revenue-current $ 182,008 $ 182,564 $ (556 ) Deferred revenue, non-current 878 330 548 Shareholders' equity: Accumulated deficit $ (270,286 ) $ (312,778 ) $ 42,492 Select condensed consolidated statement of operations line items, which reflects the adoption of the new standard, as reported, as well as the impact of adoption, are as follows in thousands, except per share information): Three Months Ended June 30, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Revenue $ 108,221 $ 108,253 $ (32 ) Sales and marketing $ 57,488 $ 59,197 $ (1,709 ) Loss from operations $ (3,631 ) $ (5,308 ) $ 1,677 Net loss $ (5,615 ) $ (7,292 ) $ 1,677 Basic and diluted net loss per share $ (0.10 ) $ (0.13 ) $ 0.03 Select condensed consolidated cash flow line items, which reflects the adoption of the new standard as reported, as well as the impact of adoption, are as follows (in thousands): Three Months Ended June 30, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Depreciation and amortization $ 12,201 $ 6,466 $ 5,735 Deferred contract acquisition costs $ (7,444 ) $ — $ (7,444 ) Net cash provided by operating activities $ 50,384 $ 50,384 $ — Disaggregation of Revenue For disaggregated revenue by geography, refer to Note 11 in the notes to our consolidated financial statements in this Quarterly Report on Form 10-Q. Contract Balances The following table provides information about deferred revenue (in thousands): Deferred Revenue Current Non-Current April 1, 2018 $ 188,860 $ 1,182 June 30, 2018 $ 182,008 $ 878 The Company receives payments from customers based upon billing cycles. As the Company performs under customer contracts, its right to consideration that is unconditional is considered to be accounts receivable. If the Company’s right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues the Company has recognized in excess of the amount it has billed to the customer is considered to be a contract asset. Contract assets are immaterial, and as a result, the Company has no asset impairment charges related to contract assets in the period. Deferred revenue represents considerations received from customers in excess of revenues recognized. Revenue recognized during the three months ended June 30, 2018, which was included in the deferred revenue balances at the beginning of the period, was $78.5 million . The satisfaction of performance obligations typically lags behind payments received under the new standard, which may lead to an increase in the Company’s deferred revenue balance over time. Movements between contract assets and receivables was not significant during the three months ended June 30, 2018. Deferred Commission Costs (Contract Acquisition Costs) In connection with the adoption of ASC 340-40, the Company is required to capitalize certain contract acquisition costs primarily consisting of commissions. As of April 1, 2018, the date of ASC 340-40 adoption, the Company had $ 40.6 million capitalized in deferred contract acquisition costs related to contracts where the benefit period had not yet expired. In the three months ended June 30, 2018, amortization from amounts capitalized was $ 5.7 million and amounts expensed as incurred was $ 1.5 million . The Company had no impairment loss in relation to costs capitalized. Remaining Performance Obligations As of June 30, 2018, the remaining performance obligation was $355.8 million . The Company expects to recognize more than 90% of the remaining performance obligation over the next 24 months, with the remainder recognized thereafter.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jun. 30, 2018
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 June 30, 2018 and March 31, 2018 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of June 30, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 466,925 $ — $ — $ 466,925 Commercial paper — 10,090 — 10,090 Short-term investments: Certificates of deposit — 22,153 — 22,153 Commercial paper — 41,668 — 41,668 Corporate notes and bonds — 14,438 — 14,438 U.S. treasury securities 54,531 — — 54,531 U.S. government agencies — 33,271 — 33,271 Restricted cash: Money market funds 8,202 — — 8,202 Total $ 529,658 $ 121,620 $ — $ 651,278 Included in cash and cash equivalents $ 477,015 Included in short-term investments $ 166,061 Included in restricted cash $ 8,202 Fair Value Measurements as of March 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 38,458 $ — $ — $ 38,458 Commercial paper — 21,710 — 21,710 U.S. treasury securities 2,698 — — 2,698 U.S. government agencies — 5,498 — 5,498 Short-term investments: Certificates of deposit — 20,492 — 20,492 Commercial paper — 21,699 — 21,699 Corporate notes and bonds — 9,794 — 9,794 U.S. treasury securities 40,187 — — 40,187 U.S. government agencies — 23,269 — 23,269 Restricted cash: Money market funds 8,202 — — 8,202 Total $ 89,545 $ 102,462 $ — $ 192,007 Included in cash and cash equivalents $ 68,364 Included in short-term investments $ 115,441 Included in restricted cash $ 8,202 There were no transfers between fair value measurement levels during the three months ended June 30, 2018 and 2017 . Gross unrealized gains or losses for cash equivalents and short-term investments as of June 30, 2018 and March 31, 2018 were not significant. As of June 30, 2018 and March 31, 2018 , there were no securities that were in an unrealized loss position for more than 12 months. The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of June 30, 2018 and March 31, 2018 (in thousands): June 30, 2018 March 31, 2018 Due within one year $ 143,715 $ 96,924 Due in one to two years 22,346 18,517 Total $ 166,061 $ 115,441 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. Convertible Senior Notes As of June 30, 2018, the fair value of the Notes was $ 498.9 million . The fair value was determined based on the quoted price of the Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy.

Property and Equipment

Property and Equipment	3 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net, consisted of the following (in thousands): June 30, 2018 March 31, 2018 Computers, software, and equipment $ 9,494 $ 8,335 Site operation equipment 41,858 37,254 Furniture and fixtures 2,606 2,981 Leasehold improvements 28,059 34,316 Capitalized software development costs 39,247 38,062 Total property and equipment 121,264 120,948 Less: accumulated depreciation and amortization (66,332 ) (67,049 ) Total property and equipment, net $ 54,932 $ 53,899 Depreciation and amortization expense related to property and equipment was $6.3 million and $5.3 million for the three months ended June 30, 2018 and 2017 , respectively.

0.5% Convertible Senior Notes a

0.5% Convertible Senior Notes and Capped Call	3 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
0.5% Convertible Senior Notes and Capped Call	0.5% Convertible Senior Notes and Capped Call In May 2018, we issued $ 500.25 million in aggregate principal amount of Notes in a private offering, including an additional $ 65.25 million aggregate principal amount of such notes pursuant to the exercise in full of the initial purchasers’ over-allotment option. The Notes are the Company’s senior unsecured obligations and bear interest at a fixed rate of 0.5% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2018. The Notes will mature on May 1, 2023, unless earlier converted or repurchased. The total net proceeds from the Notes, after deducting initial purchase discounts and debt issuance costs, were approximately $ 487.4 million . Each $ 1,000 principal amount of the Notes will initially be convertible into 9.0244 shares of our common stock, (the “Conversion Option”), which is equivalent to an initial conversion price of approximately $ 110.81 per share. The Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding November 1, 2022, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2018 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the indenture governing the Notes) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the Notes on each such trading day; or (3) upon the occurrence of specified corporate events as set forth in the indenture governing the Notes. On or after November 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture governing the Notes. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the Notes. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate, in certain circumstances, for a holder who elects to convert its Notes in connection with such a corporate event. During the three months ended June 30, 2018, the conditions allowing holders of the Notes to convert have not been met. The Notes are therefore not convertible during the three months ended June 30, 2018 and are classified as long-term debt. In accounting for the transaction, the Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the Conversion Option was $ 102.5 million and was determined by deducting the fair value of the liability component from the proceeds received upon issuance of the Notes. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Notes over the liability component (the “Debt Discount”) is amortized to interest expense over the contractual term of the Notes at an effective interest rate of 5.74% . In accounting for the debt issuance costs of $ 11.6 million related to the Notes, the Company allocated the total amount incurred to the liability and equity components using the same proportions as the proceeds of the Notes. Issuance costs attributable to the liability component were $ 9.2 million and will be amortized to interest expense using the effective interest method over the contractual term of the Notes. Issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital. The net carrying amount of the liability component of the Notes is as follows (in thousands): June 30, 2018 March 31, 2018 Principal $ 500,250 $ — Unamortized Debt Discount (100,335 ) — Unamortized issuance costs (9,042 ) — Net carrying amount $ 390,873 $ — The net carrying amount of the equity component of the Notes is as follows (in thousands): June 30, 2018 March 31, 2018 Debt Discount for Conversion Option $ 102,509 $ — Issuance costs (2,330 ) — Net carrying amount $ 100,179 $ — Interest expense related to the Notes is as follows (in thousands): Three Months Ended June 30, 2018 2017 Amortization of Debt Discount $ 2,174 $ — Amortization of issuance costs 167 — Contractual interest expense 299 — Total interest expense $ 2,640 $ — In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions with certain counterparties, (the “Capped Calls”). The Capped Calls each have an initial strike price of approximately $ 110.81 per share, subject to certain adjustments, which correspond to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $ 173.82 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, approximately 4.5 million shares of our common stock. Conditions that cause adjustments to the initial strike price of the Capped Calls mirror conditions that result in corresponding adjustments for the Notes. The Capped Calls are generally intended to reduce potential dilution to holders of the Company’s common stock upon any conversion of the Notes and/or offset any cash payments New Relic is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $ 63.2 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. The net impact to our stockholders' equity, included in additional paid-in capital, of the above components of the Notes is as follows (in thousands): Conversion Option $ 102,509 Purchase of Capped Calls (63,182 ) Issuance costs (2,330 ) Total $ 36,997

Goodwill and Purchased Intangib

Goodwill and Purchased Intangibles Assets	3 Months Ended
	Jun. 30, 2018
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 three months ended June 30, 2018 . Purchased intangible assets subject to amortization as of June 30, 2018 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (3,785 ) $ 1,115 Purchased intangible assets subject to amortization as of March 31, 2018 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (3,588 ) $ 1,312 Amortization expense of purchased intangible assets was $0.2 million and $0.4 million for the three months ended June 30, 2018 and 2017 , respectively. Estimated future amortization expense as of June 30, 2018 is as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2019 (remaining 9 months) $ 590 2020 525 $ 1,115

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jun. 30, 2018
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. 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 June 30, 2018 and March 31, 2018 , $9.5 million and $8.9 million was recorded as deferred rent, respectively. Rent expense, net of sublease income, for operating leases was $3.8 million and $2.6 million for the three months ended June 30, 2018 and 2017 , respectively. Future minimum lease payments under non-cancelable operating leases as of June 30, 2018 were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2019 (remaining 9 months) $ 9,804 2020 14,687 2021 14,887 2022 14,950 2023 15,407 Thereafter 45,348 Total minimum future lease payments $ 115,083 Purchase Commitments —As of June 30, 2018 and March 31, 2018 , the Company had purchase commitments of $26.7 million and $26.5 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 June 30, 2018 . The Company cannot at this time predict the likely outcome of this proceeding or estimate the amount or range of loss or possible loss that may arise from it. The Company has not accrued any loss related to the outcome of this case as of June 30, 2018 . In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s products when used for their intended purposes infringe the intellectual property rights of such other third parties, or other claims made against certain parties. To date, the Company has not incurred any costs as a result of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements. In addition, the Company indemnifies its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. The Company does not currently believe there is a reasonable possibility that a loss may have been incurred under these indemnification obligations. To date, there have been no claims under any such indemnification provisions.

Common Stock and Stockholders'

Common Stock and Stockholders' Equity	3 Months Ended
	Jun. 30, 2018
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 the three months ended June 30, 2018 and the three months ended June 30, 2017 , no shares of common stock were purchased under the ESPP. Stock-based compensation expense recognized related to the ESPP was $0.4 million and $0.4 million for the three months ended June 30, 2018 and 2017 , respectively. As of June 30, 2018 , there were 2,429,237 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, 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 June 30, 2018 , there were 12,276,997 shares available for issuance under the 2014 Plan. The following table summarizes the Company’s stock option and RSU award activities for the three months ended June 30, 2018 (in thousands, except exercise price, contractual term and fair value 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, 2018 3,215 $ 22.79 6.7 $ 165,041 2,079 $ 42.31 2.7 $ 154,071 Stock options granted 67 86.69 RSUs granted 126 87.85 Stock options exercised (323 ) 18.06 25,528 RSUs vested (221 ) 36.58 Stock options canceled/forfeited (16 ) 38.92 RSUs canceled/forfeited (80 ) 43.98 Outstanding - June 30, 2018 2,943 $ 24.67 6.5 $ 223,398 1,904 $ 45.92 2.6 $ 191,468 Stock-Based Compensation Expense —Aggregate stock-based compensation expense for employees and nonemployees was $11.0 million and $9.6 million for the three months ended June 30, 2018 and 2017 , respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Three Months Ended June 30, 2018 2017 Cost of revenue $ 693 $ 526 Research and development 3,263 2,836 Sales and marketing 4,790 4,306 General and administrative 2,281 1,955 Total stock-based compensation expense $ 11,027 $ 9,623 As of June 30, 2018 , unrecognized stock-based compensation cost related to outstanding unvested stock options was $15.4 million , which is expected to be recognized over a weighted-average period of approximately 2.0 years. As of June 30, 2018 , unrecognized stock-based compensation cost related to outstanding unvested stock units was $79.7 million , which is expected to be recognized over a weighted-average period of approximately 2.6 years.

Income Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2018
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 to be reinvested indefinitely. The Company recorded an income tax provision of $0.3 million and $0.2 million for the three months ended June 30, 2018 and 2017 , respectively, related to foreign income taxes and state minimum taxes. Based on the available objectively verifiable evidence during the three months ended June 30, 2018 , the Company believes it is more likely than not that the tax benefits of the U.S. losses incurred during the three months ended June 30, 2018 may not be realized. Accordingly, the Company did not record the tax benefits for U.S. losses incurred during the three months ended June 30, 2018 . The primary difference between the effective tax rate and the statutory tax rate relates to the valuation allowance on the Company’s U.S. losses and foreign tax rate differences. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “TCJA”) was enacted in law that includes significant changes to the U.S corporate Internal Revenue Code of 1986, as amended (the “Code”). The TCJA changes include, but are not limited to, reduction in the U.S. corporate tax rate from 35% to 21% effective for tax years beginning after December 31, 2017, limitations on the deductibility of executive compensation, interest expense and net operating loss (“NOL”) immediate expensing of capital expenditures, transition of the U.S. international taxation from a “worldwide” system to a territorial system of taxation and the introduction of a base erosion and anti-abuse tax. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. These provisional tax effects may differ during the measurement period, due to further updates to the calculations related to changes in interpretations and assumptions made, and additional guidance that may be issued by the Department of the U.S. Treasury, the Internal Revenue Service, and other regulatory and standard setting bodies. The Company will complete its analysis within the measurement period provided in SAB 118. No such adjustments were included in income tax expense for the three months ended June 30, 2018. Global Intangible Low Tax Income (“GILTI”): The TJCA has a requirement that certain income earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFC’s U.S. shareholder. The GILTI Inclusion, as defined under IRC §951A, is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return. The GILTI inclusion amount is expected to be fully absorbed by the current year operating loss and is not expected to cause the Company to be in a U.S. taxable income position for fiscal year 2019. The Company has not recorded deferred taxes related to these GILTI provisions and has not yet determined its policy election with respect to whether it will treat GILTI as a current-period expense when incurred (the “period cost method”) or factor such amount into the measurement of deferred taxes (the “deferred method”). Foreign Derived Intangible Income (“FDII”): The TCJA allows a domestic corporation an immediate deduction in U.S. taxable income for a portion of its FDII. The amount of the deduction depends, in part, on U.S. taxable income. Since New Relic is forecasting a U.S. taxable loss for fiscal year 2019, this deduction is not available to the Company. There is no impact for the current quarter tax provision. Base Erosion and Anti-Abuse Tax (“BEAT”): The BEAT minimum tax under §59A is applicable to the extent that the BEAT tax amount is greater than the regular corporate tax for a given year. This tax is applicable to companies with prior 3-year average annual gross receipts exceeding $500 million and who make deductible payments to foreign affiliates. New Relic does not meet this threshold since its average annual gross receipts are less than $500 million .

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Jun. 30, 2018
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 months ended June 30, 2018 and 2017 , all potential common shares were determined to be anti-dilutive, resulting in basic and diluted net loss per share being equal. Additionally, the 4.5 million shares underlying the conversion option in the Notes are not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. The Notes are not convertible as of June 30, 2018. We expect to settle the principal amount of the Notes in cash and therefore use the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended June 30, 2018 2017 Numerator: Net loss $ (5,615 ) $ (15,934 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 56,183 53,697 Net loss per share—basic and diluted $ (0.10 ) $ (0.30 ) The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of June 30, 2018 2017 Options to purchase common stock 2,943 3,962 Restricted stock units 1,904 2,323 ESPP shares 71 86 Common stock reserved for issuance in connection with acquisition — 43 4,918 6,414

Revenue by Geographic Location

Revenue by Geographic Location	3 Months Ended
	Jun. 30, 2018
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 June 30, 2018 2017 United States $ 74,071 $ 54,779 EMEA 19,944 14,868 APAC 8,354 5,894 Other 5,852 4,557 Total revenue $ 108,221 $ 80,098 Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of June 30, 2018 and March 31, 2018 .

Subsequent Events

Subsequent Events	3 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 13, 2018, the Company signed a definitive agreement with Japan Cloud Computing L.P., a Japanese limited partnership, to establish a joint venture in Japan, known as New Relic K.K.

Description of Business and S20

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2018
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, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company is a software-as-a-service provider of 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 products and platform capabilities enable software developers, IT operations, and business users to better operate 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, 2018, as filed with the SEC on May 11, 2018 (the “Annual Report”). Except for updates to the Company’s accounting policies related to the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” regarding Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”), 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. Effective April 1, 2018, we adopted the requirements of ASC 606. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented, ASC 605, Revenue Recognition (“ASC 605”). 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 period, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2019. The condensed consolidated balance sheet as of March 31, 2018 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. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, fair value of debt and equity components related to the 0.5% convertible senior notes due 2023 (the “Notes”), useful lives of purchased intangible assets, unrecognized tax benefits, expected benefit period for deferred commissions 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 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 June 30, 2018 and March 31, 2018 . There were no customers that individually exceeded 10% of the Company’s revenue during the three months ended June 30, 2018 or 2017 .
Recent Accounting Pronouncements	Recent Accounting Pronouncements —In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers regarding Accounting Standards Codification Topic 606 (“ASC 606”) ASC 606, amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers , which requires the deferral of incremental costs of obtaining a contract with a customer. The Company adopted ASC606 and its related amendments effective on April 1, 2018 using the modified retrospective method. See Note 2 for disclosure on the impact of adopting this standard on the Company’s condensed 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 condensed consolidated financial statements. 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 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. The Company adopted the standard in its fiscal year beginning April 1, 2018. Adoption was applied on a retrospective basis to all periods presented. Aside from conforming to new cash flow presentation and restricted cash disclosure requirements, the standard did not have a material impact on the Company’s 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. 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. On April 1, 2018, the Company adopted ASU 2017-09 and the adoption did not have a significant impact on its condensed consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, which amends ASC Topic 740 “Income Taxes” to conform with SEC Staff Accounting Bulletin (SAB) No. 118, issued in December 2017. The guidance was issued to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. See Note 9- Income Taxes.
Revenue Recognition	The Company receives payments from customers based upon billing cycles. As the Company performs under customer contracts, its right to consideration that is unconditional is considered to be accounts receivable. If the Company’s right to consideration for such performance is contingent upon a future event or satisfaction of additional performance obligations, the amount of revenues the Company has recognized in excess of the amount it has billed to the customer is considered to be a contract asset. Contract assets are immaterial, and as a result, the Company has no asset impairment charges related to contract assets in the period. Deferred revenue represents considerations received from customers in excess of revenues recognized. Revenue recognized during the three months ended June 30, 2018, which was included in the deferred revenue balances at the beginning of the period, was $78.5 million . The satisfaction of performance obligations typically lags behind payments received under the new standard, which may lead to an increase in the Company’s deferred revenue balance over time. Movements between contract assets and receivables was not significant during the three months ended June 30, 2018. Deferred Commission Costs (Contract Acquisition Costs) In connection with the adoption of ASC 340-40, the Company is required to capitalize certain contract acquisition costs primarily consisting of commissions. Revenue Recognition The Company offers a comprehensive suite of products delivered on its open and extensible cloud-based platform that enable organizations to collect, store and analyze massive amounts of data in real time so they can better operate their applications and infrastructure and improve their digital customer experience. The Company generates revenue by selling subscription-based arrangements that allow its customers to access its cloud-based platform. The Company determines revenue recognition through the following steps: (i) identification of the contract, or contracts with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligations in the contract, and (v) recognition of revenue, when, or as, the Company satisfies a performance obligation. Subscription revenue is recognized on a ratable basis over the contractual subscription period of the arrangement beginning when or as control of the promised goods or services is transferred to the customer. Deferred revenue consists of billings or payments received in advance of revenue being recognized. ASC 606 Adoption Impact The primary impact of adopting the new standard relates to the deferral of incremental commission costs of obtaining contracts. Previously, the Company recorded commissions as sales and marketing expenses as incurred. Under the new standard, the Company capitalizes incremental commissions related to initial contracts and amortizes such costs over the expected period of benefit, which the Company has determined to be three years. With regards to incremental commissions related to renewal contracts, the Company has adopted the practical expedient to expense such commissions as incurred, as the commission paid on renewals are commensurate and the contract periods are generally one year or less. The Company has adopted Topic 606 in the first quarter of fiscal year 2019 using the modified retrospective approach and applied the standard to all contracts as of April 1, 2018. The cumulative effect of applying the standard has been recognized on April 1, 2018. See below for the impact of adopting this standard. The Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at April 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the period presented, ASC 605. In connection with the adoption of ASC 606, the Company also adopted ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. Collectively, the Company refers to ASC 606 and ASC 340-40 as the “new standard.” Adoption of the new standard resulted in changes to the Company’s accounting policies for revenue recognition, commissions and deferred commissions as discussed below. The Company recorded a net reduction to the opening balance of accumulated deficit of $ 40.8 million as of April 1, 2018 due to the cumulative impact of adopting the new standard. The primary impact of adopting the new standard relates to the deferral of $40.6 million in incremental commission costs of obtaining subscription contracts. Under ASC 605, the Company recorded commissions as sales and marketing expenses as incurred. Under the new standard, the Company capitalizes incremental commissions related to initial contracts and amortizes these costs over a period of benefit determined to be three years. The remaining impact of adopting the standard is immaterial. Practical Expedients and Exemptions The Company applied ASC 606 using the following practical expedients: (i) costs of obtaining contracts with customers are expensed when the amortization period would have been one year or less; and (ii) the Company also used the practical expedient to calculate contract acquisition costs based on a portfolio of contracts with similar characteristics instead of on a contract-by-contract analysis.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Impact on the Condensed Consolidated Financial Statements	Select condensed consolidated balance sheet line items, which reflects the adoption impact of the new standard as reported, as well as the impact of adoption, are as follows (in thousands): June 30, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Assets: Deferred contract acquisition costs $ 21,498 $ — $ 21,498 Deferred contract acquisition costs, non-current 20,775 — 20,775 Liabilities: Deferred revenue-current $ 182,008 $ 182,564 $ (556 ) Deferred revenue, non-current 878 330 548 Shareholders' equity: Accumulated deficit $ (270,286 ) $ (312,778 ) $ 42,492 Select condensed consolidated statement of operations line items, which reflects the adoption of the new standard, as reported, as well as the impact of adoption, are as follows in thousands, except per share information): Three Months Ended June 30, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Revenue $ 108,221 $ 108,253 $ (32 ) Sales and marketing $ 57,488 $ 59,197 $ (1,709 ) Loss from operations $ (3,631 ) $ (5,308 ) $ 1,677 Net loss $ (5,615 ) $ (7,292 ) $ 1,677 Basic and diluted net loss per share $ (0.10 ) $ (0.13 ) $ 0.03 Select condensed consolidated cash flow line items, which reflects the adoption of the new standard as reported, as well as the impact of adoption, are as follows (in thousands): Three Months Ended June 30, 2018 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Depreciation and amortization $ 12,201 $ 6,466 $ 5,735 Deferred contract acquisition costs $ (7,444 ) $ — $ (7,444 ) Net cash provided by operating activities $ 50,384 $ 50,384 $ —
Summary of Deferred Revenue	The following table provides information about deferred revenue (in thousands): Deferred Revenue Current Non-Current April 1, 2018 $ 188,860 $ 1,182 June 30, 2018 $ 182,008 $ 878

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Information about Financial Assets Measured at Fair Value on Recurring Basis	The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2018 and March 31, 2018 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of June 30, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 466,925 $ — $ — $ 466,925 Commercial paper — 10,090 — 10,090 Short-term investments: Certificates of deposit — 22,153 — 22,153 Commercial paper — 41,668 — 41,668 Corporate notes and bonds — 14,438 — 14,438 U.S. treasury securities 54,531 — — 54,531 U.S. government agencies — 33,271 — 33,271 Restricted cash: Money market funds 8,202 — — 8,202 Total $ 529,658 $ 121,620 $ — $ 651,278 Included in cash and cash equivalents $ 477,015 Included in short-term investments $ 166,061 Included in restricted cash $ 8,202 Fair Value Measurements as of March 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 38,458 $ — $ — $ 38,458 Commercial paper — 21,710 — 21,710 U.S. treasury securities 2,698 — — 2,698 U.S. government agencies — 5,498 — 5,498 Short-term investments: Certificates of deposit — 20,492 — 20,492 Commercial paper — 21,699 — 21,699 Corporate notes and bonds — 9,794 — 9,794 U.S. treasury securities 40,187 — — 40,187 U.S. government agencies — 23,269 — 23,269 Restricted cash: Money market funds 8,202 — — 8,202 Total $ 89,545 $ 102,462 $ — $ 192,007 Included in cash and cash equivalents $ 68,364 Included in short-term investments $ 115,441 Included in restricted cash $ 8,202
Classification of Available-for-Sale Short-Term Investments by Contractual Maturities	The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of June 30, 2018 and March 31, 2018 (in thousands): June 30, 2018 March 31, 2018 Due within one year $ 143,715 $ 96,924 Due in one to two years 22,346 18,517 Total $ 166,061 $ 115,441

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net, consisted of the following (in thousands): June 30, 2018 March 31, 2018 Computers, software, and equipment $ 9,494 $ 8,335 Site operation equipment 41,858 37,254 Furniture and fixtures 2,606 2,981 Leasehold improvements 28,059 34,316 Capitalized software development costs 39,247 38,062 Total property and equipment 121,264 120,948 Less: accumulated depreciation and amortization (66,332 ) (67,049 ) Total property and equipment, net $ 54,932 $ 53,899

0.5% Convertible Senior Notes24

0.5% Convertible Senior Notes and Capped Call (Tables)	3 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Summary of Convertible Debt	The net carrying amount of the liability component of the Notes is as follows (in thousands): June 30, 2018 March 31, 2018 Principal $ 500,250 $ — Unamortized Debt Discount (100,335 ) — Unamortized issuance costs (9,042 ) — Net carrying amount $ 390,873 $ — The net carrying amount of the equity component of the Notes is as follows (in thousands): June 30, 2018 March 31, 2018 Debt Discount for Conversion Option $ 102,509 $ — Issuance costs (2,330 ) — Net carrying amount $ 100,179 $ — The net impact to our stockholders' equity, included in additional paid-in capital, of the above components of the Notes is as follows (in thousands): Conversion Option $ 102,509 Purchase of Capped Calls (63,182 ) Issuance costs (2,330 ) Total $ 36,997
Summary of Interest Expense	Interest expense related to the Notes is as follows (in thousands): Three Months Ended June 30, 2018 2017 Amortization of Debt Discount $ 2,174 $ — Amortization of issuance costs 167 — Contractual interest expense 299 — Total interest expense $ 2,640 $ —

Goodwill and Purchased Intang25

Goodwill and Purchased Intangibles Assets (Tables)	3 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Purchased Intangible Assets Subject to Amortization	Purchased intangible assets subject to amortization as of June 30, 2018 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (3,785 ) $ 1,115 Purchased intangible assets subject to amortization as of March 31, 2018 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,900 $ (3,588 ) $ 1,312
Schedule of Estimated Future Amortization Expense	Estimated future amortization expense as of June 30, 2018 is as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2019 (remaining 9 months) $ 590 2020 525 $ 1,115

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Non-Cancelable Operating Leases	Future minimum lease payments under non-cancelable operating leases as of June 30, 2018 were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2019 (remaining 9 months) $ 9,804 2020 14,687 2021 14,887 2022 14,950 2023 15,407 Thereafter 45,348 Total minimum future lease payments $ 115,083

Common Stock and Stockholders27

Common Stock and Stockholders' Equity (Tables)	3 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of Stock Option and RSU Award Activities	The following table summarizes the Company’s stock option and RSU award activities for the three months ended June 30, 2018 (in thousands, except exercise price, contractual term and fair value 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, 2018 3,215 $ 22.79 6.7 $ 165,041 2,079 $ 42.31 2.7 $ 154,071 Stock options granted 67 86.69 RSUs granted 126 87.85 Stock options exercised (323 ) 18.06 25,528 RSUs vested (221 ) 36.58 Stock options canceled/forfeited (16 ) 38.92 RSUs canceled/forfeited (80 ) 43.98 Outstanding - June 30, 2018 2,943 $ 24.67 6.5 $ 223,398 1,904 $ 45.92 2.6 $ 191,468
Schedule of Stock-based Compensation Expense Attributed to 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): Three Months Ended June 30, 2018 2017 Cost of revenue $ 693 $ 526 Research and development 3,263 2,836 Sales and marketing 4,790 4,306 General and administrative 2,281 1,955 Total stock-based compensation expense $ 11,027 $ 9,623

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Computation of Net Loss Per Share, Basic and Diluted	The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended June 30, 2018 2017 Numerator: Net loss $ (5,615 ) $ (15,934 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 56,183 53,697 Net loss per share—basic and diluted $ (0.10 ) $ (0.30 )
Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents	The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of June 30, 2018 2017 Options to purchase common stock 2,943 3,962 Restricted stock units 1,904 2,323 ESPP shares 71 86 Common stock reserved for issuance in connection with acquisition — 43 4,918 6,414

Revenue by Geographic Location

Revenue by Geographic Location (Tables)	3 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Areas	The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Three Months Ended June 30, 2018 2017 United States $ 74,071 $ 54,779 EMEA 19,944 14,868 APAC 8,354 5,894 Other 5,852 4,557 Total revenue $ 108,221 $ 80,098

Description of Business and S30

Description of Business and Summary of Significant Accounting Policies - Narrative (Details)	Jun. 30, 2018	May 31, 2018
Convertible Debt | Convertible Senior Notes Due 2023
Debt Instrument [Line Items]
Stated interest rate	0.50%	0.50%

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($)	3 Months Ended
	Jun. 30, 2018	Apr. 01, 2018	Mar. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Capitalized contract cost, amortization period	3 years
Reduction to accumulated deficit due to adoption of new accounting guidance	$ (270,286,000)		$ (305,484,000)
Contract asset impairment	0
Recognized revenue that was previously included in deferred revenue balances	78,500,000
Capitalized contract cost, amortization	5,700,000
Acquisition costs expensed as incurred	1,500,000
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to accumulated deficit due to adoption of new accounting guidance	$ 42,492,000	$ 40,800,000
Recognition of capitalized contract costs, due to adoption of new accounting guidance		$ 40,600,000

Revenue Recognition - Impact on

Revenue Recognition - Impact on the Condensed Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Apr. 01, 2018	Mar. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue	$ 108,221	$ 80,098
Assets
Deferred contract acquisition costs	21,498			$ 0
Deferred contract acquisition costs, non-current	20,775			0
Liabilities:
Deferred revenue	182,008		$ 188,860	189,633
Deferred revenue, non-current	878		1,182	649
Shareholders' equity:
Accumulated deficit	(270,286)			$ (305,484)
Income Statement [Abstract]
Sales and marketing	57,488	49,361
Loss from operations	(3,631)	(16,448)
Net loss	$ (5,615)	$ (15,934)
Basic and diluted net loss per share (in usd per share)	$ (0.10)	$ (0.30)
Statement of Cash Flows [Abstract]
Depreciation and amortization	$ 12,201	$ 5,732
Deferred contract acquisition costs	(7,444)	0
Net cash provided by operating activities	50,384	$ 17,681
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Deferred contract acquisition costs	0
Deferred contract acquisition costs, non-current	0
Liabilities:
Deferred revenue	182,564
Deferred revenue, non-current	330
Shareholders' equity:
Accumulated deficit	(312,778)
Income Statement [Abstract]
Revenue	108,253
Sales and marketing	59,197
Loss from operations	(5,308)
Net loss	$ (7,292)
Basic and diluted net loss per share (in usd per share)	$ (0.13)
Statement of Cash Flows [Abstract]
Depreciation and amortization	$ 6,466
Deferred contract acquisition costs	0
Net cash provided by operating activities	50,384
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Assets
Deferred contract acquisition costs	21,498
Deferred contract acquisition costs, non-current	20,775
Liabilities:
Deferred revenue	(556)
Deferred revenue, non-current	548
Shareholders' equity:
Accumulated deficit	42,492		$ 40,800
Income Statement [Abstract]
Revenue	(32)
Sales and marketing	(1,709)
Loss from operations	1,677
Net loss	$ 1,677
Basic and diluted net loss per share (in usd per share)	$ 0.03
Statement of Cash Flows [Abstract]
Depreciation and amortization	$ 5,735
Deferred contract acquisition costs	(7,444)
Net cash provided by operating activities	$ 0

Revenue Recognition - Contract

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Apr. 01, 2018	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Deferred Revenue, Current	$ 182,008	$ 188,860	$ 189,633
Deferred Revenue, Non-Current	$ 878	$ 1,182	$ 649

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 355.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	90.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	24 months

Fair Value Measurements - Infor

Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	$ 651,278	$ 192,007
Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	477,015	68,364
Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	166,061	115,441
Restricted cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,202	8,202
Money market funds | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	466,925	38,458
Commercial paper | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	10,090	21,710
Commercial paper | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	41,668	21,699
Certificates of deposit | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	22,153	20,492
Corporate notes and bonds | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	14,438	9,794
U.S. treasury securities | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value		2,698
U.S. treasury securities | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	54,531	40,187
U.S. government agencies | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value		5,498
U.S. government agencies | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	33,271	23,269
Money market funds | Restricted cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	8,202	8,202
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	529,658	89,545
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	466,925	38,458
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		2,698
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	54,531	40,187
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
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	8,202
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	121,620	102,462
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	10,090	21,710
Level 2 | Commercial paper | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	41,668	21,699
Level 2 | Certificates of deposit | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value	22,153	20,492
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	14,438	9,794
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		5,498
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	33,271	23,269
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
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 - Narra

Fair Value Measurements - Narrative (Detail) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Debt Instrument [Line Items]
Unrealized loss position of securities for more than 12 months	$ 0	$ 0
Convertible Debt | Level 2 | Convertible Senior Notes Due 2023
Debt Instrument [Line Items]
Fair value of Notes	$ 498,900,000

Fair Value Measurements - Class

Fair Value Measurements - Classification of Available-for-Sale Short-Term Investments by Contractual Maturities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Due within one year	$ 143,715	$ 96,924
Due in one to two years	22,346	18,517
Total	$ 166,061	$ 115,441

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 121,264	$ 120,948
Less: accumulated depreciation and amortization	(66,332)	(67,049)
Total property and equipment, net	54,932	53,899
Computers, software, and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	9,494	8,335
Site operation equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	41,858	37,254
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	2,606	2,981
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	28,059	34,316
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 39,247	$ 38,062

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 6.3	$ 5.3

0.5% Convertible Senior Notes40

0.5% Convertible Senior Notes and Capped Call - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended	3 Months Ended
	May 31, 2018USD ($)day$ / sharesshares	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2018USD ($)
Debt Instrument [Line Items]
Total net proceeds		$ 488,669,000	$ 0
Capped Calls
Debt Instrument [Line Items]
Convertible debt, conversion price (USD per share) | $ / shares	$ 110.81
Initial cap price (in dollars per share) | $ / shares	$ 173.82
Number of shares covered by cap call (in shares) | shares	4.5
Additional Paid-in Capital | Capped Calls
Debt Instrument [Line Items]
Cost incurred related to capped calls		$ 63,200,000
Convertible Debt | Convertible Senior Notes Due 2023
Debt Instrument [Line Items]
Debt instrument face amount	$ 500,250,000
Stated interest rate	0.50%	0.50%
Total net proceeds	$ 487,400,000
Convertible debt, conversion ratio	0.0090244
Convertible debt, conversion price (USD per share) | $ / shares	$ 110.81
Debt Discount for Conversion Option	$ 102,500,000	$ 102,509,000		$ 0
Effective interest rate	5.74%
Issuance costs	$ 11,600,000	9,042,000		$ 0
Debt issuance costs, equity component	9,200,000
Cost incurred related to capped calls		$ 36,997,000
Convertible Debt | Convertible Senior Notes Due 2023, Over-Allotment Option
Debt Instrument [Line Items]
Debt instrument face amount	$ 65,250,000
Convertible Debt | Stock Price Trigger Measurement
Debt Instrument [Line Items]
Threshold trading days | day	20
Threshold consecutive trading days | day	30
Threshold percentage of stock price trigger	130.00%
Convertible Debt | Notes Price Trigger Measurement
Debt Instrument [Line Items]
Threshold trading days | day	5
Threshold consecutive trading days | day	5
Threshold percentage of stock price trigger	98.00%

0.5% Convertible Senior Notes41

0.5% Convertible Senior Notes and Capped Call - Schedule of Liability Component of Convertible Debt (Details) - Convertible Debt - Convertible Senior Notes Due 2023 - USD ($) $ in Thousands	Jun. 30, 2018	May 31, 2018	Mar. 31, 2018
Debt Instrument [Line Items]
Principal	$ 500,250		$ 0
Unamortized Debt Discount	(100,335)		0
Unamortized issuance costs	(9,042)	$ (11,600)	0
Net carrying amount	$ 390,873		$ 0

0.5% Convertible Senior Notes42

0.5% Convertible Senior Notes and Capped Call - Summary of Equity Component of Convertible Debt (Details) - Convertible Debt - Convertible Senior Notes Due 2023 - USD ($) $ in Thousands	Jun. 30, 2018	May 31, 2018	Mar. 31, 2018
Debt Instrument [Line Items]
Debt Discount for Conversion Option	$ 102,509	$ 102,500	$ 0
Issuance costs	(2,330)		0
Net carrying amount	$ 100,179		$ 0

0.5% Convertible Senior Notes43

0.5% Convertible Senior Notes and Capped Call - Schedule of Interest Expense (Details) - Convertible Debt - Convertible Senior Notes Due 2023 - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Amortization of Debt Discount	$ 2,174	$ 0
Amortization of issuance costs	167	0
Contractual interest expense	299	0
Total interest expense	$ 2,640	$ 0

0.5% Convertible Senior Notes44

0.5% Convertible Senior Notes and Capped Call - Net Impact To Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	May 31, 2018	Mar. 31, 2018
Debt Instrument [Line Items]
Purchase of Capped Calls	$ (63,182)	$ 0
Convertible Debt | Convertible Senior Notes Due 2023
Debt Instrument [Line Items]
Conversion Option	102,509		$ 102,500	$ 0
Purchase of Capped Calls	(63,182)
Issuance costs	(2,330)			$ 0
Total	$ 36,997

Goodwill and Purchased Intang45

Goodwill and Purchased Intangibles Assets - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Change in carrying amount of goodwill			$ 0
Amortization expense	$ 200,000	$ 400,000

Goodwill and Purchased Intang46

Goodwill and Purchased Intangibles Assets - Schedule of Purchased Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 1,115	$ 1,312
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,900	4,900
Accumulated Amortization	(3,785)	(3,588)
Net Carrying Amount	$ 1,115	$ 1,312

Goodwill and Purchased Intang47

Goodwill and Purchased Intangibles Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2019 (remaining 9 months)	$ 590
2,020	525
Net Carrying Amount	$ 1,115	$ 1,312

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Deferred rent	$ 9.5		$ 8.9
Rent expense, net of sublease income, for operating leases	3.8	$ 2.6
Purchase commitments	$ 26.7		$ 26.5

Commitments and Contingencies49

Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands	Jun. 30, 2018USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019 (remaining 9 months)	$ 9,804
2,020	14,687
2,021	14,887
2,022	14,950
2,023	15,407
Thereafter	45,348
Total minimum future lease payments	$ 115,083

Common Stock and Stockholders50

Common Stock and Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2014	Jun. 30, 2018	Jun. 30, 2017
Class of Stock [Line Items]
Stock-based compensation expense		$ 11,027	$ 9,623
Unrecognized stock-based compensation cost related to outstanding unvested stock awards		$ 15,400
Stock-based compensation cost expected to be recognized over weighted-average period		2 years
Expected to vest unrecognized stock-based compensation cost related to outstanding unvested stock options		$ 79,700
Unvested Stock Options
Class of Stock [Line Items]
Stock based compensation cost is expected to be recognized over a weighted-average period		2 years 7 months 6 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)		0	0
Stock-based compensation expense		$ 400	$ 400
Shares available for issuance (in shares)		2,429,237
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)		12,276,997
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, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018
Number of Shares
Beginning balance (in shares)	3,215
Stock options granted (in shares)	67
Stock options exercised (in shares)	(323)
Stock options canceled/forfeited (in shares)	(16)
Ending balance (in shares)	2,943	3,215
Weighted- Average Exercise Price
Beginning balance (in usd per share)	$ 22.79
Stock options granted (in usd per share)	86.69
Stock options exercised (in usd per share)	18.06
Stock options canceled/forfeited (in usd per share)	38.92
Ending balance (in usd per share)	$ 24.67	$ 22.79
Weighted- Average Remaining Contractual Term (in years)
Weighted- Average Remaining Contractual Term (in years)	6 years 6 months	6 years 8 months 12 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value, outstanding	$ 165,041
Stock options exercised	25,528
Ending aggregate intrinsic value, outstanding	$ 223,398	$ 165,041
Number of Shares
Beginning balance (in shares)	2,079
RSUs granted (in shares)	126
RSUs vested (in shares)	(221)
RSUs canceled/forfeited (in shares)	(80)
Ending balance (in shares)	1,904	2,079
Weighted- Average Grant Date Fair Value
Beginning balance (in usd per share)	$ 42.31
RSUs granted (in usd per share)	87.85
RSUs vested (in usd per share)	36.58
RSUs canceled/forfeited (in usd per share)	43.98
Ending balance (in usd per share)	$ 45.92	$ 42.31
Weighted- Average Remaining Contractual Term (in years)
Weighted- Average Remaining Contractual Term (in years)	2 years 7 months 6 days	2 years 8 months 12 days
Aggregate Intrinsic Value
Aggregate intrinsic value, outstanding	$ 191,468	$ 154,071

Common Stock and Stockholders52

Common Stock and Stockholders' Equity - Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 11,027	$ 9,623
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	693	526
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,263	2,836
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	4,790	4,306
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 2,281	$ 1,955

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 321	$ 235

Net Loss Per Share - Narrative

Net Loss Per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
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)	4,918	6,414
Convertible Debt Securities
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)	4,500

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Net Loss Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net loss	$ (5,615)	$ (15,934)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	56,183	53,697
Net loss per share, basic and diluted (in usd per share)	$ (0.10)	$ (0.30)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents (Detail) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
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)	4,918	6,414
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)	71	86
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 (in shares)	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 (in shares)	1,904	2,323
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)	2,943	3,962

Revenue by Geographic Locatio57

Revenue by Geographic Location - Schedule of Revenue by Geographic Areas (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 108,221	$ 80,098
United States
Segment Reporting Information [Line Items]
Revenue	74,071	54,779
EMEA
Segment Reporting Information [Line Items]
Revenue	19,944	14,868
APAC
Segment Reporting Information [Line Items]
Revenue	8,354	5,894
Other
Segment Reporting Information [Line Items]
Revenue	$ 5,852	$ 4,557