Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2019 | May 09, 2019 | Sep. 28, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NEWR | ||
Entity Registrant Name | NEW RELIC, INC. | ||
Entity Central Index Key | 0001448056 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 58,115,719 | ||
Entity Public Float | $ 3.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 234,356 | $ 132,479 |
Short-term investments | 510,372 | 115,441 |
Accounts receivable, net of allowance for doubtful accounts | 120,605 | 99,488 |
Prepaid expenses and other current assets | 21,838 | 15,591 |
Deferred contract acquisition costs | 27,161 | 0 |
Total current assets | 914,332 | 362,999 |
Property and equipment, net | 80,742 | 53,899 |
Restricted cash | 8,805 | 8,202 |
Goodwill | 41,512 | 11,828 |
Intangible assets, net | 13,855 | 1,312 |
Deferred contract acquisition costs, non-current | 26,218 | 0 |
Other assets, non-current | 4,763 | 5,086 |
Total assets | 1,090,227 | 443,326 |
Current liabilities: | ||
Accounts payable | 10,249 | 2,985 |
Accrued compensation and benefits | 23,537 | 17,414 |
Other current liabilities | 14,572 | 8,619 |
Deferred revenue | 267,000 | 189,633 |
Total current liabilities | 315,358 | 218,651 |
Convertible senior notes, net | 405,937 | 0 |
Deferred rent, non-current | 11,025 | 8,147 |
Deferred revenue, non-current | 4,597 | 649 |
Other liabilities, non-current | 947 | 775 |
Total liabilities | 737,864 | 228,222 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 2,733 | 0 |
Stockholders’ equity: | ||
Common stock | 58 | 56 |
Treasury stock-at cost | (263) | (263) |
Additional paid-in capital | 654,759 | 521,119 |
Accumulated other comprehensive income (loss) | 645 | (324) |
Accumulated deficit | (305,569) | (305,484) |
Total stockholders’ equity | 349,630 | 215,104 |
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ 1,090,227 | $ 443,326 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,457 | $ 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) | 58,366,000 | 56,213,000 |
Common stock, shares outstanding (in shares) | 58,106,000 | 55,953,000 |
Treasury stock (in shares) | 260,000 | 260,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 479,225 | $ 355,058 | $ 263,479 |
Cost of revenue | 77,399 | 62,725 | 49,990 |
Gross profit | 401,826 | 292,333 | 213,489 |
Operating expenses: | |||
Research and development | 104,859 | 74,332 | 61,054 |
Sales and marketing | 257,066 | 207,021 | 168,163 |
General and administrative | 73,007 | 57,788 | 45,615 |
Total operating expenses | 434,932 | 339,141 | 274,832 |
Loss from operations | (33,106) | (46,808) | (61,343) |
Other income (expense): | |||
Interest income | 13,103 | 2,190 | 1,189 |
Interest expense | (19,679) | (86) | (87) |
Other income (expense), net | (1,377) | 343 | (572) |
Loss before income taxes | (41,059) | (44,361) | (60,813) |
Income tax provision | 697 | 959 | 264 |
Net loss | (41,756) | (45,320) | (61,077) |
Net loss attributable to redeemable non-controlling interest | 863 | 0 | 0 |
Net loss attributable to New Relic | $ (40,893) | $ (45,320) | $ (61,077) |
Net loss attributable to New Relic per share, basic and diluted (in usd per share) | $ (0.72) | $ (0.83) | $ (1.18) |
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 56,884 | 54,814 | 51,715 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss attributable to New Relic | $ (40,893) | $ (45,320) | $ (61,077) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | 969 | (228) | (118) |
Comprehensive loss | $ (39,924) | $ (45,548) | $ (61,195) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Mar. 31, 2016 | 50,241 | 260 | ||||
Beginning balance at Mar. 31, 2016 | $ 193,233 | $ 50 | $ 392,511 | $ (263) | $ 22 | $ (199,087) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 2,474 | |||||
Issuance of common stock upon exercise of stock options | 16,667 | $ 2 | 16,665 | |||
Issuance of common stock for vested restricted stock units (in shares) | 582 | |||||
Issuance of common stock for vested restricted stock units | 0 | $ 1 | (1) | |||
Issuance of common stock related to employee stock purchase plan (in shares) | 195 | |||||
Issuance of common stock related to employee stock purchase plan | 5,283 | 5,283 | ||||
Issuance of common stock related to acquisition of business (in shares) | 47 | |||||
Issuance of common stock related to acquisition of business | 0 | |||||
Stock-based compensation expense | 32,856 | 32,856 | ||||
Other comprehensive income (loss), net | (118) | (118) | ||||
Net loss attributable to New Relic | (61,077) | (61,077) | ||||
Ending balance (in shares) at Mar. 31, 2017 | 53,539 | 260 | ||||
Ending balance at Mar. 31, 2017 | 186,844 | $ 53 | 447,314 | $ (263) | (96) | (260,164) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,616 | |||||
Issuance of common stock upon exercise of stock options | 24,734 | $ 2 | 24,732 | |||
Issuance of common stock for vested restricted stock units (in shares) | 796 | |||||
Issuance of common stock for vested restricted stock units | 0 | $ 1 | (1) | |||
Issuance of common stock related to employee stock purchase plan (in shares) | 219 | |||||
Issuance of common stock related to employee stock purchase plan | 7,593 | 7,593 | ||||
Issuance of common stock related to acquisition of business (in shares) | 43 | |||||
Issuance of common stock related to acquisition of business | 0 | |||||
Stock-based compensation expense | 41,481 | 41,481 | ||||
Other comprehensive income (loss), net | (228) | (228) | ||||
Net loss attributable to New Relic | (45,320) | (45,320) | ||||
Ending balance (in shares) at Mar. 31, 2018 | 56,213 | 260 | ||||
Ending balance at Mar. 31, 2018 | 215,104 | $ 56 | 521,119 | $ (263) | (324) | (305,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment for ASU 2014-09 adoption | $ 40,808 | 40,808 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 822 | 822 | ||||
Issuance of common stock upon exercise of stock options | $ 17,384 | $ 1 | 17,383 | |||
Issuance of common stock for vested restricted stock units (in shares) | 879 | |||||
Issuance of common stock for vested restricted stock units | 1 | $ 1 | 0 | |||
Issuance of common stock related to employee stock purchase plan (in shares) | 155 | |||||
Issuance of common stock related to employee stock purchase plan | 11,165 | 11,165 | ||||
Issuance of common stock related to acquisition of business (in shares) | 297 | |||||
Issuance of common stock related to acquisition of business | 11,896 | 11,896 | ||||
Stock-based compensation expense | 56,242 | 56,242 | ||||
Other comprehensive income (loss), net | 969 | 969 | ||||
Net loss attributable to New Relic | (40,893) | (40,893) | ||||
Equity component of convertible senior notes, net of issuance costs | 100,136 | 100,136 | ||||
Purchase of capped calls | (63,182) | (63,182) | ||||
Ending balance (in shares) at Mar. 31, 2019 | 58,366 | 260 | ||||
Ending balance at Mar. 31, 2019 | $ 349,630 | $ 58 | $ 654,759 | $ (263) | $ 645 | $ (305,569) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss attributable to New Relic | $ (40,893) | $ (45,320) | $ (61,077) |
Net loss attributable to redeemable non-controlling interest | (863) | 0 | 0 |
Net loss | (41,756) | (45,320) | (61,077) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 53,794 | 23,243 | 18,805 |
Stock-based compensation expense | 56,198 | 40,598 | 31,946 |
Amortization of debt discount and issuance costs | 17,404 | 0 | 0 |
Other | (1,655) | 1,559 | 1,125 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (22,557) | (38,315) | (30,251) |
Prepaid expenses and other assets | (1,814) | (9,794) | (3,658) |
Deferred contract acquisition costs | (38,667) | 0 | 0 |
Accounts payable | 245 | (1,823) | 658 |
Accrued compensation and benefits and other liabilities | 11,539 | 2,112 | 5,550 |
Deferred revenue | 81,559 | 63,878 | 51,681 |
Deferred rent | 1,227 | (488) | 4,149 |
Net cash provided by operating activities | 115,517 | 35,650 | 18,928 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (43,303) | (21,368) | (21,430) |
Cash paid for acquisitions, net of cash acquired | (30,432) | 0 | |
Purchases of short-term investments | (659,428) | (128,669) | (168,938) |
Proceeds from sale and maturity of short-term investments | 267,657 | 131,135 | 175,877 |
Capitalized software development costs | (5,162) | (4,843) | (4,029) |
Net cash used in investing activities | (470,668) | (23,745) | (18,520) |
Cash flows from financing activities: | |||
Investment from redeemable non-controlling interest | 3,596 | 0 | 0 |
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $11,582 | 488,669 | 0 | 0 |
Purchase of capped call related to convertible senior notes | (63,182) | 0 | 0 |
Proceeds from employee stock purchase plan | 11,165 | 7,592 | 5,283 |
Proceeds from issuance of common stock | 17,383 | 24,764 | 16,700 |
Net cash provided by financing activities | 457,631 | 32,356 | 21,983 |
Net increase in cash, cash equivalents and restricted cash | 102,480 | 44,261 | 22,391 |
Cash, cash equivalents and restricted cash at beginning of period | 140,681 | 96,420 | 74,029 |
Cash, cash equivalents and restricted cash at end of period | 243,161 | 140,681 | 96,420 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest and income taxes | 2,062 | 647 | 253 |
Noncash investing and financing activities: | |||
Issuance of common stock for the acquisition of business | 11,896 | 0 | |
Property and equipment purchased but not paid yet | 7,855 | 1,932 | 3,011 |
Acquisition holdback | $ 865 | $ 0 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Statement of Cash Flows [Abstract] | |
Payment of issuance costs | $ 11,582 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies 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 provider of an integrated, multi-tenant, cloud-based instrumentation and analytics platform that enables users to collect, store and analyze massive amounts of data in real time. Basis of Presentation and Consolidation —The consolidated financial statements include the accounts of New Relic and its subsidiaries. These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP. All intercompany balances and transactions have been eliminated in consolidation. Effective April 1, 2018, the Company adopted the requirements of Accounting Standard Update 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASC 606”) , using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods presented, ASC 605, Revenue Recognition (“ASC 605”). Foreign Currency Translation and Transactions —The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. Foreign currency denominated revenue and expenses have been re-measured using the average exchange rates in effect during each period. Foreign currency re-measurement gains and losses have been included in other income (expense). Use of Estimates —The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, 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 consolidated financial statements; therefore, actual results could differ from management’s estimates. Segments —The Company’s chief operating decision maker is the Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region. Accordingly, the Company has determined that it has a single reportable segment. Cash and Cash Equivalents —The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. Restricted Cash —The Company has an agreement to maintain cash balances at a financial institution as collateral for letters of credit relating to the Company’s property leases. Short-term Investments —Short-term investments consist of money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities, and are classified as available-for-sale securities. The Company has classified its investments as current based on the nature of the investments and their availability for use in current operations. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income, while realized gains and losses are reported within the statement of operations. The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer, and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized-cost basis. If the Company determines that an other-than-temporary decline exists in one of these securities, the respective investment would be written down to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized to other income, net in the consolidated statement of operations. Any portion not related to credit loss would be included in accumulated other comprehensive income (loss). The Company did not identify any investments as other-than-temporarily impaired as of March 31, 2019 or March 31, 2018 . Business Combinations —The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that the Company identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. There has been no such adjustment as of March 31, 2019 . Property and Equipment —Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company uses an estimated useful life of three years for employee-related computers and software, three years for other office equipment and site-related computer hardware, and five years for furniture. Leasehold improvements are amortized over the shorter of the lease-term or the estimated useful life of the related asset. Down payments for property and equipment are recorded at cost and included in other assets in the accompanying consolidated balance sheet. Once the corresponding property and equipment item has been received, it will be reclassified to property and equipment and depreciated. Revenue Recognition —The Company generates revenue from subscription-based arrangements that allow customers to access its products. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue, when, or as, the Company satisfies a performance obligation. Revenue from subscription-based arrangements 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. Deferred Revenue —Deferred revenue consists of billings or payments received in advance of revenue being recognized. The Company generally invoices its customers monthly, quarterly, or annually. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current deferred revenue. Cost of Revenue —Cost of revenue consists of expenses relating to data center operations, hosting-related costs, payment processing fees, depreciation and amortization, consulting costs, and salaries and benefits of operations and global customer support personnel. Accounts Receivable and Allowance for Doubtful Accounts —Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice and the collection history of each customer to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. For all periods presented, the allowance for doubtful accounts activity was not significant. Software Development Costs —The Company capitalizes certain development costs incurred in connection with its internal use software and website. These capitalized costs are primarily related to its software tools that are hosted by the Company and accessed by its customers on a subscription basis. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases when the software is released or made available. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional features and functionality. Maintenance costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three years . The Company capitalized $ 6.0 million , $ 5.7 million , and $ 4.9 million in internal use software during the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. Included in the capitalized development costs were $ 0.8 million , $ 0.9 million , and $ 0.9 million of stock-based compensation costs for the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. Amortization expense totaled $ 4.1 million , $ 6.1 million , and $ 6.9 million during the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. The net book value of capitalized internal use software as of March 31, 2019 and 2018 , which is recorded in property and equipment on the accompanying consolidated balance sheets, was $ 10.6 million and $ 9.6 million , respectively. Commissions —Sales commissions are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which we have estimated to be three years. The Company determined the period of benefit by taking into consideration the length of our customer contracts, our technology lifecycle, and other factors. Amortization expense is recorded in sales and marketing expense within our consolidated statement of operations. Advertising Expenses —Advertising is expensed as incurred and is included in sales and marketing in the consolidated statements of operations. Advertising expense was $19.3 million , $17.7 million , and $21.7 million for the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. Operating Leases —The Company leases office space and data center facilities under operating leases. Certain lease agreements contain rent holidays, allowances, and rent escalation provisions. The Company recognizes rent expense under such leases on a straight-line basis over the term of the lease. Lease renewal periods are considered on a lease-by-lease basis in determining the lease term. Impairment of Long-Lived Assets —Long-lived assets, such as property and equipment, acquired intangible assets, and capitalized software development costs subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. For the fiscal years presented, the Company had not impaired any of its long-lived assets. Goodwill —Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. Goodwill is evaluated for impairment annually in the third quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. Since inception through March 31, 2019 , the Company did not have any goodwill impairment. Intangible Assets —Intangible assets consist of identifiable intangible assets, primarily developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Stock-Based Compensation —The Company estimates the fair value of share-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the statements of operations. The Company recognizes compensation expense over the vesting period of the entire award using the straight-line attribution method. These amounts are reduced by an estimated forfeiture rate. The forfeiture rate is estimated based on actual cancellation experience and is applied to all share-based awards. The rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options and shares pursuant to the Company’s 2014 Employee Stock Purchase Plan, or ESPP. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of share-based awards, including the option’s expected term and the price volatility of the underlying stock. The authoritative guidance prohibits the recognition of a deferred tax asset for an excess tax benefit that has not yet been included in the Company’s tax return. As a result, the Company will only recognize an excess tax benefit from stock-based compensation in additional paid-in capital in the period in which it is included in the Company’s tax return. Fair Value Measurements —The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature. Concentration of Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, and trade accounts receivable. The Company invests its excess cash in money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities with major financial institutions. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, are subject to minimal credit risk. There were no customers that represented more than 10% of the Company’s accounts receivable balance as of March 31, 2019 and March 31, 2018 . In addition, there were no customers that individually exceeded 10% of the Company’s revenue during the fiscal years ended March 31, 2019 , 2018 , and 2017 . Income Taxes —The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statement of operations Net Loss Per Share —The Company’s basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, common stock reserved for issuance, restricted stock units, convertible debt, and shares issuable pursuant to the ESPP are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Recently Issued Accounting Pronouncements Not Yet Adopted 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. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. The Company plans to adopt this new standard using the modified retrospective approach and will not restate comparative periods in the first quarter of fiscal 2020. The Company is also finalizing the incremental borrowing rate for each arrangement. The Company is finalizing the impact of the new standard which will result in the recording of a right of use asset and lease liability on the consolidated balance sheet derived from the present value of future minimum lease payments which are disclosed in Note 10. 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 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 has not yet adopted ASU 2017-04 and does not believe that this standard will have a material impact on its consolidated financial statements or disclosures. In March 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements , which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company is currently evaluating the effect the standard will have on its consolidated financial statements. The Company plans to early adopt this standard in the first quarter of fiscal 2020 on a prospective basis and does not believe that this standard will have a material impact on its consolidated financial statements and disclosures. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-Employee Share Based Payment Accounting (“ASU 2018-07”), with an intent to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees. The amendments in ASU 2018-07 provide for the simplification of the measurement of share-based payment transactions for acquiring goods and services from non-employees. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. This standard expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services, aligning the accounting for share-based payments to nonemployees and employees. ASU 2018-07 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those periods, and early adoption is permitted. The Company plans to adopt this new standard in the first quarter of fiscal 2020. The Company does not expect the adoption to have a significant impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC 820, Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The effective date is the first quarter of fiscal year 2021, with early adoption permitted for the removed disclosures and delayed adoption permitted until fiscal year 2021 for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company has not yet adopted ASU 2018-13 and is currently evaluating the effect the standard will have on its consolidated financial statements. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09 regarding 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 ASC 606 and its related amendments effective on April 1, 2018 using the modified retrospective method. See Note 4—Revenue Recognition for disclosure on the impact of adopting this standard on the Company’s 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 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 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 12—Income Taxes. |
Business Combination
Business Combination | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination SignifAI, Inc. On January 25, 2019, the Company acquired all outstanding stock of SignifAI, Inc. (“SignifAI”), an event intelligence company specializing in artificial intelligence and machine learning. The aggregate purchase price of $36.3 million consisted of $25.1 million in cash and 143,861 shares of Company common stock with an aggregate fair value of approximately $11.9 million . The fair value of the consideration transferred was determined based on an $82.69 per share price of the Company’s common stock. The total purchase price was allocated to the developed technology acquired, net liabilities assumed, deferred taxes related to net operating loss carryforwards and a deferred tax liability related to the developed technology. The excess purchase price was recorded as goodwill, as set forth below. The acquisition has been accounted for as a business combination. Pursuant to ASC 805, the direct transaction costs of the acquisition incurred by both the Company and SignifAI should be accounted for separately from the business combination and expensed as incurred. Total direct transaction costs incurred by the Company was $0.9 million , which were included in general and administrative expense in the Company’s consolidated statement of operations for the year ended March 31, 2019. Acquisition costs for SignifAI were paid for by SignifAI and were expensed in SignifAI’s pre-acquisition financial results. Per the terms of the merger agreement, all share-based payment awards were accelerated and paid for in cash. The cash consideration paid for unvested share-based payment awards of $0.8 million was recognized as compensation expense separate from the business combination. The acquisition also included a holdback arrangement with certain employees of SignifAI, totaling approximately 152,840 shares of the Company’s common stock, contingent upon their continued employment with the Company. The fair value of these awards, which are subject to the recipients’ continued service, was $12.6 million and was excluded from the aggregate purchase price. These awards will be recognized as stock-based compensation expense over the remaining vesting period which ranges from of 24 months to 36 months . The following table presents the purchase price allocation related to the acquisition (in thousands): Cash consideration paid $ 25,119 Fair value of common shares issued $ 24,535 Total consideration $ 49,654 Post-business combination compensation expense $ (12,639 ) Cash paid to settle unvested stock options $ (764 ) Total purchase price $ 36,251 Net liabilities assumed $ 259 Deferred tax liabilities $ 2,289 Deferred tax assets $ (1,721 ) Developed technology acquired $ (10,900 ) Goodwill $ 26,178 CoScale NV On October 9, 2018, the Company acquired certain assets of CoScale NV (“CoScale”), a public limited liability company organized and existing under the laws of Belgium that provides solutions for monitoring the performance of software container environments for $6.3 million in cash. The Company held back approximately $0.9 million from the aggregate purchase price. Of the total purchase price, $2.9 million was allocated to acquired technology with an estimated useful life of three years , with the excess $3.4 million of the purchase price over the fair value of intangible assets acquired recorded as goodwill. The Company also recognized transaction costs of approximately $0.3 million , which is also included in general and administrative expense in its consolidated statement of operations for the year ended March 31, 2019. The acquisition has been accounted for as a business combination under the acquisition method. Goodwill generated from the acquisition is attributable to expected synergies from future growth and potential future monetization opportunities, and is not deductible for tax purposes. The business combination did not have a material impact on the consolidated financial statements and therefore historical and proforma disclosures have not been presented. |
Joint Venture
Joint Venture | 12 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | Joint Venture On July 13, 2018, the Company entered into an agreement with Japan Cloud Computing L.P. (“JCC”) and M30 LLC (collectively, the Investors) to engage in the investment, organization, management and operation of New Relic K.K., a Japanese subsidiary of the Company that is focused on the sale of the Company’s products and services in Japan. On August 21, 2018, the investors initially contributed approximately $3.6 million ( 396,000,000 Japanese Yen) in exchange for 40% of the outstanding common stock of New Relic K.K. Furthermore, under the terms of the agreement, the Company and the Investors have agreed to subscribe to additional shares by contributing additional funding of up to approximately $1.4 million ( 156,000,000 Japanese Yen) and approximately $0.9 million ( 104,000,000 Japanese Yen), respectively, on August 21, 2019. The additional funding amounts are fixed in Japanese Yen irrespective of any currency fluctuation. As of March 31, 2019, the Company owned approximately 60% of the outstanding common stock in New Relic K.K. All of the common stock held by the Investors may be callable by the Company or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the discrete revenues of New Relic K.K. and the Company and may be settled, at the Company’s discretion, with Company stock or cash. As a result of the put right available to the redeemable non-controlling interest holders in the future, the redeemable non-controlling interest in New Relic K.K. are classified outside of permanent equity in the Company’s consolidated balance sheet as of March 31, 2019, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interests’ share of earnings or losses, or its estimated redemption value. The resulting changes in the estimated redemption amount are recorded within retained earnings or, in the absence of retained earnings, additional paid-in-capital. The estimated redemption value of the call/put option embedded in the redeemable non-controlling interest was $0 at March 31, 2019. The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below: Balance as of April 1, 2018 $ — Investment by redeemable non-controlling interest $ 3,596 Net loss attributable to redeemable non-controlling interest $ (863 ) Balance as of March 31, 2019 $ 2,733 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2019 | |
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 Company recognized the cumulative effect of applying ASC 606 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 periods prior to adoption, 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.” 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 ASC 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 new standard was recognized on April 1, 2018. See below for the impact of adopting 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 new 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) contract acquisition costs are calculated based on a portfolio of contracts with similar characteristics instead of on a contract-by-contract analysis. Impact on the Consolidated Financial Statements Select 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): March 31, 2019 As Reported Balances without adoption of ASC 606 Effect of Change Assets: Deferred contract acquisition costs $ 27,161 $ — $ 27,161 Deferred contract acquisition costs, non-current $ 26,218 $ — $ 26,218 Liabilities: Deferred revenue, current $ 267,000 $ 268,379 $ (1,379 ) Deferred revenue, non-current $ 4,597 $ 4,552 $ 45 Stockholders' Equity: Accumulated deficit $ (305,569 ) $ (360,550 ) $ 54,981 Select 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): Twelve Months Ended 2019 As Reported Balances without adoption of ASC 606 Effect of Change Revenue $ 479,225 $ 477,875 $ 1,350 Sales and marketing $ 257,066 $ 269,882 $ (12,816 ) Loss from operations $ (33,106 ) $ (47,272 ) $ 14,166 Net loss attributable to New Relic $ (40,893 ) $ (55,059 ) $ 14,166 Net loss per share, basic and diluted $ (0.72 ) $ (0.97 ) $ 0.25 Select 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): Twelve Months Ended 2019 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Depreciation and amortization $ 53,794 $ 27,943 $ 25,851 Deferred contract acquisition costs $ (38,667 ) $ — $ (38,667 ) Net cash provided by operating activities $ 115,517 $ 115,517 $ — Disaggregation of Revenue For disaggregated revenue by geography, refer to Note 15—Revenue by Geographic Location. Contract Balances The following table provides information about deferred revenue (in thousands): Deferred Revenue Current Non-Current April 1, 2018 $ 188,860 $ 1,182 March 31, 2019 $ 267,000 $ 4,597 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 year ended March 31, 2019 , which was included in the deferred revenue balances at the beginning of the period, was $189.4 million . The satisfaction of performance obligations typically lags behind payments received in substantially all of our subscription arrangements, 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 year ended March 31, 2019 . Deferred Commission Costs (Contract Acquisition Costs) In connection with the adoption of ASC 606, the Company is required to capitalize certain contract acquisition costs primarily consisting of commissions. As of April 1, 2018, the date of adoption of ASC 340-40, the Company had $40.6 million capitalized in deferred contract acquisition costs related to contracts where the benefit period had not yet expired. During the year ended March 31, 2019 , amortization from amounts capitalized was $25.9 million , and amounts expensed as incurred were $9.0 million . The Company had no impairment loss in relation to costs capitalized. Remaining Performance Obligations The Company’s contracts with customers generally include one main performance obligation, which is access to our SaaS-based products and platform. Within our main performance obligation, each service is generally considered a distinct stand-ready obligation that is recognized over the contract term based on the passage of time. As of March 31, 2019 , the unrecognized transaction price related to remaining performance obligations was $498.3 million . The Company expects to recognize more than 93% of the remaining performance obligations over the next 24 months , with the remainder recognized thereafter. Modification From time to time the Company modifies contracts with its customers. These modifications generally result in an extension of the contract term and/or increase in the subscription product. These modifications are generally accounted for as a termination of the old contract and a creation of a new contract because the additional performance obligations are considered distinct and priced at stand-alone selling price. During the year ended March 31, 2019, the impact of modification has not been significant. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company reports assets and liabilities recorded at fair value on the Company’s consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Inputs are quoted prices for similar assets and liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3—Inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2019 and 2018 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of March 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 133,239 $ — $ — $ 133,239 Commercial paper — 9,973 — 9,973 Short-term investments: Certificates of deposit — 24,726 — 24,726 Commercial paper — 37,071 — 37,071 Corporate notes and bonds — 27,259 — 27,259 U.S. treasury securities 402,091 — — 402,091 U.S. government agencies — 19,225 — 19,225 Restricted cash: Money market funds 8,805 — — 8,805 Total $ 544,135 $ 118,254 $ — $ 662,389 Included in cash and cash equivalents $ 143,212 Included in short-term investments $ 510,372 Included in restricted cash $ 8,805 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 fiscal year ended March 31, 2019 and 2018. Gross unrealized gains or losses for cash equivalents and short term investments as of March 31, 2019 and 2018 were not significant. As of March 31, 2019 , securities that were in an unrealized loss position for more than 12 months were not significant. As of 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 March 31, 2019 and 2018 (in thousands): March 31, 2019 March 31, 2018 Due within one year $ 346,768 $ 96,924 Due in one to two years 163,604 18,517 Total $ 510,372 $ 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 March 31, 2019, the fair value of the Notes was $ 505.6 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 | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, consisted of the following (in thousands): March 31, 2019 March 31, 2018 Computers, software, and equipment $ 11,245 $ 8,335 Site operation equipment 66,727 37,254 Furniture and fixtures 3,990 2,981 Leasehold improvements 40,541 34,316 Capitalized software development costs 43,063 38,062 Total property and equipment 165,566 120,948 Less: accumulated depreciation and amortization (84,824 ) (67,049 ) Total property and equipment, net $ 80,742 $ 53,899 Depreciation and amortization expense related to property and equipment during the fiscal years ended March 31, 2019 , 2018 , and 2017 was $25.9 million , $22.1 million , and $17.6 million , respectively. |
0.5% Convertible Senior Notes a
0.5% Convertible Senior Notes and Capped Call | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
0.5% Convertible Senior Notes and Capped Call | 0.5% Convertible Senior Notes and Capped Call In May 2018, the Company 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. Each $1,000 principal amount of the Notes will initially be convertible into 9.02 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 and twelve months ended March 31, 2019 , the conditions allowing holders of the Notes to convert have not been met. The Notes are therefore not convertible during the twelve months ended March 31, 2019 and are classified as long-term debt for such periods. 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”) and the debt issuance costs are amortized to interest expense over the contractual term of the Notes at an effective interest rate of 5.74% . This rate is inclusive of the issuance costs. The issuance costs related to the notes were $2.4 million . 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): March 31, 2019 March 31, 2018 Principal $ 500,250 $ — Unamortized debt discount (86,374 ) — Unamortized issuance costs (7,939 ) — Net carrying amount $ 405,937 $ — Interest expense related to the Notes is as follows (in thousands): March 31, 2019 March 31, 2018 Amortization of debt discount $ 16,135 $ — Amortization of issuance costs 1,269 — Contractual interest expense 2,175 — Total interest expense $ 19,579 $ — 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 related to stockholders’ equity has been included in additional paid-in capital and was a result of the issuance costs of $2.4 million and the purchase of capped calls noted above in the amount of $63.2 million . |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangibles Assets | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangibles Assets | Goodwill and Purchased Intangibles Assets The changes in the carrying amount of goodwill for the twelve months ended March 31, 2019 consist of the following (in thousands): Goodwill as of March 31, 2018 $ 11,828 Goodwill acquired 29,684 Goodwill as of March 31, 2019 $ 41,512 Purchased intangible assets subject to amortization as of March 31, 2019 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 18,716 $ (4,861 ) $ 13,855 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 for the fiscal years ended March 31, 2019 , 2018 , and 2017 was $1.3 million , $1.2 million , and $1.1 million , respectively. Estimated future amortization expense as of March 31, 2019 is as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2020 $ 5,131 2021 4,605 2022 4,119 $ 13,855 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following (in thousands): As of March 31, 2019 2018 Accrued liabilities $ 5,047 $ 4,139 Accrued tax liabilities 3,063 1,274 Deferred rent 1,140 782 Other 5,322 2,424 Total other current liabilities $ 14,572 $ 8,619 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
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 2019 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 March 31, 2019 and 2018 , $12.2 million and $8.9 million , respectively, was recorded as deferred rent. Rent expense, net of sublease income, for operating leases was $14.5 million , $12.0 million , and $9.8 million for the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. For the fiscal year ended March 31, 2019 , the Company had no sublease income. For the fiscal years ended March 31, 2018 , and 2017 , rent expense was offset by $0.1 million , and $0.1 million of sublease income, respectively. Future minimum lease payments under non-cancelable operating leases as of March 31, 2019 were as follows (in thousands): Years Ending March 31, Operating Leases 2020 $ 16,374 2021 16,155 2022 15,620 2023 16,105 2024 13,484 Thereafter 32,849 Total minimum future lease payments $ 110,587 Purchase Commitments —As of March 31, 2019 and 2018 , the Company had purchase commitments of $33.5 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 been set for November 4, 2019. The Company cannot at this time predict the likely outcome of this proceeding or estimate the amount or range of loss or possible loss that may arise from it. The Company has not accrued any loss related to the outcome of this case as of March 31, 2019 . Other contingencies—In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s products when used for their intended purposes infringe the intellectual property rights of such other third parties, or other claims made against certain parties. To date, the Company has not incurred any costs as a result of such obligations and has not accrued any liabilities related to such obligations in the consolidated financial statements. In addition, the Company indemnifies its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. The Company does not currently believe there is a reasonable possibility that a loss may have been incurred under these indemnification obligations. To date, there have been no claims under any such indemnification provisions. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Common stock reserved for issuance —The Company had reserved shares of common stock for future issuance pursuant to equity plans as follows (in thousands): As of March 31, 2019 2018 Common stock options outstanding 2,751 3,215 RSUs outstanding 2,419 2,079 Available for future stock option and RSU grants 10,796 9,576 Available for future employee stock purchase plan awards 2,274 1,929 18,240 16,799 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 (“ESPP”), which became effective in December 2014. The ESPP initially reserved and authorized the issuance of up to 1,000,000 shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the ESPP automatically increases each April, beginning on April 1, 2015, by the lesser of 500,000 shares, 1% of the number of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. For the fiscal years ended March 31, 2019 , 2018 , and 2017 , 0.2 million shares, 0.2 million shares, and 0.2 million shares of common stock were purchased under the ESPP, respectively, and a total of $3.6 million , $2.2 million , and $1.8 million of stock-based compensation expense was recorded, respectively. As of March 31, 2019 , 2,273,989 shares of common stock were 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, or the 2008 Plan, in February 2008. The 2008 Plan was terminated in connection with the Company’s initial public offering (“IPO”), and accordingly, no shares are available for future issuance under this plan. The 2008 Plan continues to govern outstanding awards granted thereunder. 2014 Equity Incentive Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), which became effective in December 2014. The 2014 Plan serves as the successor to the Company’s 2008 Plan. The 2014 Plan initially reserved and authorized the issuance of 5,000,000 shares of the Company’s common stock. Additionally, shares not issued or subject to outstanding grants under the 2008 Plan upon its termination became available under the 2014 Plan, resulting in a total of 5,184,878 available shares under the 2014 Plan as of the effective date of the 2014 Plan. Pursuant to the terms of the 2014 Plan, any shares subject to outstanding stock options or other stock awards under the 2008 Plan that (i) expire or terminate for any reason prior to exercise or settlement, (ii) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award will become available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each April 1, beginning on April 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. As of March 31, 2019 , there were 10,795,889 shares available for issuance under the 2014 Plan. The following table summarizes the Company’s stock option and RSU award activities for the fiscal year ended March 31, 2019 (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 473 98.93 RSUs granted 1,532 98.74 Stock options exercised (822 ) 21.15 62,459 RSUs vested (879 ) 43.28 Stock options canceled/forfeited (115 ) 53.43 RSUs canceled/forfeited (313 ) 52.76 Outstanding - March 31, 2019 2,751 $ 35.10 6.3 $ 176,002 2,419 $ 76.34 3.0 $ 238,734 Options vested and expected to vest - March 31, 2019 2,728 $ 34.59 6.3 $ 175,803 Options vested and exercisable - March 31, 2019 1,921 $ 20.02 5.3 $ 151,259 RSUs expected to vest - March 31, 2019 2,232 $ 74.52 $ 220,294 The weighted-average grant-date fair value of options granted during the fiscal years ended March 31, 2019 , 2018 , and 2017 was $42.37 , $21.40 , and $12.75 , respectively. Intrinsic value of options exercised during the fiscal years ended March 31, 2019 , 2018 , and 2017 was $62.5 million , $53.2 million , and $65.3 million , respectively. The total fair value of RSUs vested during the fiscal years ended March 31, 2019 , 2018 , and 2017 was $38.2 million , $25.6 million , and $17.1 million , respectively. Aggregate intrinsic value for options and RSUs outstanding represents the difference between the closing stock price of the Company’s common stock and the exercise price of outstanding, in-the-money awards. The Company’s closing stock price as reported on the New York Stock Exchange as of March 29, 2019, the last trading day of fiscal 2019, was $98.70 . Employee Stock Options and ESPP Valuation —The Company estimates the fair value of stock options and ESPP shares on the date of grant using the Black-Scholes option-pricing model. Each of the Black-Scholes inputs is subjective and generally requires significant judgments to determine. The assumptions used to estimate the fair value of stock options granted and ESPP shares to be issued during the fiscal years ended March 31, 2019 , 2018 , and 2017 were as follows: Stock Options: Year Ended March 31, 2019 2018 2017 Expected term (years) 6 6 5 - 6 Expected volatility 41-42% 42 - 44% 46 - 47% Risk-free interest rate 2.27-3.06% 1.86 - 2.74% 0.21 - 2.17% Dividend yield — — — ESPP: Year Ended March 31, 2019 2018 2017 Expected term (years) 0.5 0.5 0.5 Expected volatility 37-53% 29 - 30% 37 - 44% Risk-free interest rate 2.23-2.50% 1.16 - 1.82% 0.46 - 0.67% Dividend yield — — — Risk-Free Interest Rate The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the options for each option group. Expected Term The Company determines the expected term based on the average period the stock options are expected to remain outstanding generally calculated as the midpoint of the stock options vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The Company estimates the expected term for ESPP shares using the purchase period of 6 months. Expected Volatility The Company determines the price volatility factor based on the historical volatilities of its peer group as the Company did not have significant trading history for its common stock. Beginning in February 2017, the Company started to use its historical volatility data when valuing ESPP shares. Dividend Yield The expected dividend assumption is based on the Company’s current expectations about its anticipated dividend policy. Stock-Based Compensation Expense —Aggregate stock-based compensation expense for employees and nonemployees was $56.2 million , $40.6 million , and $31.9 million for the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Year Ended March 31, 2019 2018 2017 Cost of revenue $ 3,487 $ 2,440 $ 1,847 Research and development 17,634 12,176 9,975 Sales and marketing 23,253 16,925 13,042 General and administrative 11,824 9,057 7,082 Total stock-based compensation expense $ 56,198 $ 40,598 $ 31,946 As of March 31, 2019 , unrecognized stock-based compensation cost related to outstanding unvested stock options was $22.7 million , which is expected to be recognized over a weighted-average period of approximately 2.4 years. As of March 31, 2019 , unrecognized stock-based compensation cost related to outstanding unvested stock awards was $186.9 million , which is expected to be recognized over a weighted-average period of approximately 3 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) before income taxes are as follows (in thousands): Year Ended March 31, 2019 2018 2017 Domestic $ (46,838 ) $ (47,489 ) $ (62,526 ) Foreign 5,779 3,128 1,713 Total $ (41,059 ) $ (44,361 ) $ (60,813 ) The components of the provision for income taxes are as follows (in thousands): Year Ended March 31, 2019 2018 2017 Current Provision: Federal $ (269 ) $ — $ — State 32 89 18 Foreign 1,742 870 333 Total current provision 1,505 959 351 Deferred Provision: Federal (568 ) — — State — — — Foreign (240 ) — (87 ) Total deferred provision (808 ) — (87 ) Total income tax provision $ 697 $ 959 $ 264 The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following: Year Ended March 31, 2019 2018 2017 Federal statutory rate 21.0 % 30.8 % 34.0 % Effect of: State taxes, net of federal benefits 5.0 3.2 2.4 Stock-based compensation 35.2 82.4 (1.8 ) Research and development credits, net of ASC 740-10 8.7 6.5 3.5 Tax Cuts and Jobs Act — (71.0 ) — Permanent items (3.9 ) (2.1 ) — Foreign taxes (0.3 ) (0.6 ) — Business combination 1.4 — — Other 0.7 0.6 0.4 Valuation allowance (69.5 ) (52.0 ) (38.9 ) Effective tax rate (1.7 )% (2.2 )% (0.4 )% Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands): As of March 31, 2019 2018 Deferred tax assets: Accrued expenses $ 3,768 $ 2,558 Depreciation and amortization 2,461 3,585 Net operating loss carryforwards 126,125 98,338 Stock based compensation 6,754 5,248 Research and development credits 15,960 12,351 Other — — Gross deferred tax assets 155,068 122,080 Valuation allowance (126,793 ) (117,353 ) Total deferred tax assets 28,275 4,727 Deferred tax liabilities: Prepaids (2,889 ) (2,647 ) Intangibles (2,349 ) Capitalized research and development (2,165 ) (1,942 ) Deferred contract acquisition costs (12,515 ) — Convertible debt (7,570 ) — Total deferred tax liabilities (27,488 ) (4,589 ) Total net deferred tax assets/(liabilities) $ 787 $ 138 Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Acts (“the TJCA”) was enacted into law. The TCJA 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 anti-abuse tax (“BEAT”) and Global Intangible Low Taxed Income (“GILTI”) and a new minimum tax on certain foreign earnings. The reduction of the U.S. corporate tax rate required us to remeasure our U.S. deferred tax assets and liabilities to the newly enacted federal rate of 21%. 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. The amounts recorded for the Tax Act no longer remain provisional as we completed our accounting for the effect of the Tax Act within the measurement period, under the SEC guidance, which did not have a material impact on our consolidated financial statements. We were subject to the one-time mandatory transition tax of $2.7 million due to cumulative foreign earnings as of December 31, 2017. We also elected to record the taxes for GILTI as period costs. However, the amounts recorded for the transition tax, the remeasurement of deferred taxes, and reassessment of indefinitely reinvested earnings, valuation allowances and uncertain tax positions may be impacted by factors including future guidance and clarification regarding available tax accounting methods and elections, earnings and profits computations, and state tax conformity to federal tax changes, among others. The Company accounts for deferred taxes under ASC 740, Income Taxes , which requires a reduction of the carrying amounts of deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the ASC 740 more-likely-than-not realization threshold. This assessment considers matters such as future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. The evaluation of the recoverability of the deferred tax assets requires that we weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax assets will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. Based upon the weight of available evidence, which includes the Company’s historical operating performance and the U.S. cumulative net losses in all prior periods, the Company has provided a valuation allowance against its U.S. and Japan deferred tax assets. Overall, the valuation allowance increased by $9.0 million and $23.0 million for the years ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company has U.S. federal and state net operating losses of approximately $518.0 million and $270.0 million respectively, which expire beginning in the years 2028 and 2022 . Of the $518.0 million federal net operating losses, $97.0 million are carried forward indefinitely but are limited to 80% of taxable income and $99.0 million are carried forward indefinitely with no limitation when utilized. The remaining $319.0 million begin to expire in 2028. As of March 31, 2019, the Company also has Federal, California and Oregon research and development credits of $17.2 million , $2.8 million , and $2.9 million , respectively. The federal tax credit carryforwards will expire beginning in 2028 if not utilized. The California credit carryforwards do not expire. The Oregon tax credit carryforwards begin to expire in 2020. Utilization of the net operating loss carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Code, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. Section 382 of the Code (“Section 382”) ownership change generally occurs if one or more stockholders or groups of stockholders who own at least 5% of the Company’s stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three -year period. Similar rules may apply under state tax laws. The Company did experience one or more ownership changes in financial periods ending on or before March 31, 2019. In this regard, the Company has determined that based on the timing of the ownership changes and the corresponding Section 382 limitations, none of its net operating losses or other tax attributes are subject to such limitation. The Company has adopted authoritative guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company had unrecognized tax benefits of $8.0 million , $6.7 million , and $5.0 million as of March 31, 2019, 2018, and 2017. As of March 31, 2019, if recognized, the unrecognized tax benefit of $8.0 million would not affect income tax expense before consideration of any valuation allowance. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months. Balance at March 31, 2016 $ 3,489 Additions based on tax positions taken during the current period 1,503 Additions based on tax positions taken during the prior period — Reductions based on tax positions taken during the prior period (7 ) Balance at March 31, 2017 4,985 Additions based on tax positions taken during the current period 1,938 Reductions based on tax positions taken during the prior period (187 ) Balance at March 31, 2018 6,736 Additions based on tax positions taken during the current period 1,566 Reductions based on tax positions taken during the prior period (305 ) Balance at March 31, 2019 $ 7,997 Accrued interest and penalties have not been material for the fiscal years ended March 31, 2019, 2018, and 2017. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share As the Company had net losses for the fiscal years ended March 31, 2019 , 2018 , and 2017 , all potential common shares were determined to be anti-dilutive. 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 were not convertible as of March 31, 2019. The Company expects to settle the principal amount of the Notes in cash and therefore will 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): Year Ended March 31, 2019 2018 2017 Numerator: Net loss attributable to New Relic $ (40,893 ) $ (45,320 ) $ (61,077 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 56,884 54,814 51,715 Net loss attributable to New Relic per share—basic and diluted $ (0.72 ) $ (0.83 ) $ (1.18 ) The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of March 31, 2019 2018 2017 Options to purchase common stock 2,751 3,215 4,607 Restricted stock units 2,419 2,079 1,978 ESPP shares 29 30 38 Common stock reserved for issuance in connection with acquisition — — 43 5,199 5,324 6,666 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has established a 401(k) tax-deferred savings plan (the “401(k) Plan”), which permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Code. The Company is responsible for administrative costs of the 401(k) Plan and may, at its discretion, make matching contributions to the 401(k) Plan. For the fiscal years ended March 31, 2019 , 2018 , and 2017 , the Company made contributions of $6.3 million , $3.2 million , and $2.3 million to the 401(k) Plan, respectively. |
Revenue by Geographic Location
Revenue by Geographic Location | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue by Geographic Location | Revenue by Geographic Location The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Year Ended March 31, 2019 2018 2017 United States $ 327,341 $ 242,898 $ 178,727 EMEA 87,596 65,540 49,825 APAC 38,466 26,554 19,887 Other 25,822 20,066 15,040 Total revenue $ 479,225 $ 355,058 $ 263,479 Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of March 31, 2019 and 2018 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain members of the Company’s board of directors serve on the board of directors of and/or are executive officers of, and, in some cases, are investors in, companies that are customers or vendors of the Company. Revenue from sales to these companies of an aggregate of $0.2 million , $1.1 million , and $1.8 million was recognized for the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. There was not a significant amount of accounts receivable due from these companies as of March 31, 2019 or March 31, 2018 . An aggregate of $1.3 million , $2.0 million , and $1.4 million in expenses related to purchases from these companies was recorded during the fiscal years ended March 31, 2019 , 2018 , and 2017 , respectively. There was an aggregate of $0.1 million and $0.1 million in accounts payable to these companies as of March 31, 2019 and 2018 , respectively. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business and Summary of Significant Accounting Policies 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 provider of an integrated, multi-tenant, cloud-based instrumentation and analytics platform that enables users to collect, store and analyze massive amounts of data in real time. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation —The consolidated financial statements include the accounts of New Relic and its subsidiaries. These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP. All intercompany balances and transactions have been eliminated in consolidation. Effective April 1, 2018, the Company adopted the requirements of Accounting Standard Update 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASC 606”) , using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods presented, ASC 605, Revenue Recognition (“ASC 605”). |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions —The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. Foreign currency denominated revenue and expenses have been re-measured using the average exchange rates in effect during each period. Foreign currency re-measurement gains and losses have been included in other income (expense). |
Use of Estimates | Use of Estimates —The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, 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 consolidated financial statements; therefore, actual results could differ from management’s estimates. |
Segments | Segments —The Company’s chief operating decision maker is the Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region. Accordingly, the Company has determined that it has a single reportable segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents —The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash and cash equivalents. |
Restricted Cash | Restricted Cash —The Company has an agreement to maintain cash balances at a financial institution as collateral for letters of credit relating to the Company’s property leases. |
Short-term Investments | Short-term Investments —Short-term investments consist of money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities, and are classified as available-for-sale securities. The Company has classified its investments as current based on the nature of the investments and their availability for use in current operations. Available-for-sale securities are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income, while realized gains and losses are reported within the statement of operations. The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer, and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized-cost basis. If the Company determines that an other-than-temporary decline exists in one of these securities, the respective investment would be written down to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized to other income, net in the consolidated statement of operations. Any portion not related to credit loss would be included in accumulated other comprehensive income (loss). |
Business Combinations | Business Combinations —The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that the Company identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. |
Property and Equipment | Property and Equipment —Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The Company uses an estimated useful life of three years for employee-related computers and software, three years for other office equipment and site-related computer hardware, and five years for furniture. Leasehold improvements are amortized over the shorter of the lease-term or the estimated useful life of the related asset. Down payments for property and equipment are recorded at cost and included in other assets in the accompanying consolidated balance sheet. Once the corresponding property and equipment item has been received, it will be reclassified to property and equipment and depreciated. |
Revenue Recognition | Revenue Recognition —The Company generates revenue from subscription-based arrangements that allow customers to access its products. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue, when, or as, the Company satisfies a performance obligation. Revenue from subscription-based arrangements 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. Deferred Revenue —Deferred revenue consists of billings or payments received in advance of revenue being recognized. The Company generally invoices its customers monthly, quarterly, or annually. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current deferred revenue. 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 Company recognized the cumulative effect of applying ASC 606 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 periods prior to adoption, 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.” 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 ASC 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 new standard was recognized on April 1, 2018. See below for the impact of adopting 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 new 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) contract acquisition costs are calculated based on a portfolio of contracts with similar characteristics instead of on a contract-by-contract analysis. 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 year ended March 31, 2019 , which was included in the deferred revenue balances at the beginning of the period, was $189.4 million . The satisfaction of performance obligations typically lags behind payments received in substantially all of our subscription arrangements, 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 year ended March 31, 2019 . Deferred Commission Costs (Contract Acquisition Costs) In connection with the adoption of ASC 606, the Company is required to capitalize certain contract acquisition costs primarily consisting of commissions. As of April 1, 2018, the date of adoption of ASC 340-40, the Company had $40.6 million capitalized in deferred contract acquisition costs related to contracts where the benefit period had not yet expired. During the year ended March 31, 2019 , amortization from amounts capitalized was $25.9 million , and amounts expensed as incurred were $9.0 million . The Company had no impairment loss in relation to costs capitalized. Remaining Performance Obligations The Company’s contracts with customers generally include one main performance obligation, which is access to our SaaS-based products and platform. Within our main performance obligation, each service is generally considered a distinct stand-ready obligation that is recognized over the contract term based on the passage of time. As of March 31, 2019 , the unrecognized transaction price related to remaining performance obligations was $498.3 million . The Company expects to recognize more than 93% of the remaining performance obligations over the next 24 months , with the remainder recognized thereafter. Modification From time to time the Company modifies contracts with its customers. These modifications generally result in an extension of the contract term and/or increase in the subscription product. These modifications are generally accounted for as a termination of the old contract and a creation of a new contract because the additional performance obligations are considered distinct and priced at stand-alone selling price. During the year ended March 31, 2019, the impact of modification has not been significant. |
Cost of Revenue | Cost of Revenue —Cost of revenue consists of expenses relating to data center operations, hosting-related costs, payment processing fees, depreciation and amortization, consulting costs, and salaries and benefits of operations and global customer support personnel. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts —Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts. The Company regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice and the collection history of each customer to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for doubtful accounts when identified. |
Software Development Costs | Software Development Costs —The Company capitalizes certain development costs incurred in connection with its internal use software and website. These capitalized costs are primarily related to its software tools that are hosted by the Company and accessed by its customers on a subscription basis. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases when the software is released or made available. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional features and functionality. Maintenance costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three years . |
Commissions | Commissions —Sales commissions |
Advertising Expenses | Advertising Expenses —Advertising is expensed as incurred and is included in sales and marketing in the consolidated statements of operations. |
Operating Leases | Operating Leases —The Company leases office space and data center facilities under operating leases. Certain lease agreements contain rent holidays, allowances, and rent escalation provisions. The Company recognizes rent expense under such leases on a straight-line basis over the term of the lease. Lease renewal periods are considered on a lease-by-lease basis in determining the lease term. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —Long-lived assets, such as property and equipment, acquired intangible assets, and capitalized software development costs subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by the asset to its carrying value. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. |
Goodwill | Goodwill —Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. Goodwill is evaluated for impairment annually in the third quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. |
Intangible Assets | Intangible Assets —Intangible assets consist of identifiable intangible assets, primarily developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. |
Stock-Based Compensation | Stock-Based Compensation —The Company estimates the fair value of share-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the statements of operations. The Company recognizes compensation expense over the vesting period of the entire award using the straight-line attribution method. These amounts are reduced by an estimated forfeiture rate. The forfeiture rate is estimated based on actual cancellation experience and is applied to all share-based awards. The rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options and shares pursuant to the Company’s 2014 Employee Stock Purchase Plan, or ESPP. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of share-based awards, including the option’s expected term and the price volatility of the underlying stock. The authoritative guidance prohibits the recognition of a deferred tax asset for an excess tax benefit that has not yet been included in the Company’s tax return. As a result, the Company will only recognize an excess tax benefit from stock-based compensation in additional paid-in capital in the period in which it is included in the Company’s tax return. |
Fair Value Measurements | Fair Value Measurements —The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature. |
Concentration of Risk | Concentration of Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, and trade accounts receivable. The Company invests its excess cash in money market funds, certificates of deposit, commercial paper, U.S. treasury securities, U.S. agency securities, and corporate debt securities with major financial institutions. Management believes that the financial institutions that hold the Company’s investments are financially sound and, accordingly, are subject to minimal credit risk. |
Income Taxes | Income Taxes —The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statement of operations |
Net Loss Per Share | Net Loss Per Share —The Company’s basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, common stock reserved for issuance, restricted stock units, convertible debt, and shares issuable pursuant to the ESPP are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted 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. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. The Company plans to adopt this new standard using the modified retrospective approach and will not restate comparative periods in the first quarter of fiscal 2020. The Company is also finalizing the incremental borrowing rate for each arrangement. The Company is finalizing the impact of the new standard which will result in the recording of a right of use asset and lease liability on the consolidated balance sheet derived from the present value of future minimum lease payments which are disclosed in Note 10. 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 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 has not yet adopted ASU 2017-04 and does not believe that this standard will have a material impact on its consolidated financial statements or disclosures. In March 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements , which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company is currently evaluating the effect the standard will have on its consolidated financial statements. The Company plans to early adopt this standard in the first quarter of fiscal 2020 on a prospective basis and does not believe that this standard will have a material impact on its consolidated financial statements and disclosures. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-Employee Share Based Payment Accounting (“ASU 2018-07”), with an intent to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees. The amendments in ASU 2018-07 provide for the simplification of the measurement of share-based payment transactions for acquiring goods and services from non-employees. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. This standard expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services, aligning the accounting for share-based payments to nonemployees and employees. ASU 2018-07 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those periods, and early adoption is permitted. The Company plans to adopt this new standard in the first quarter of fiscal 2020. The Company does not expect the adoption to have a significant impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC 820, Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The effective date is the first quarter of fiscal year 2021, with early adoption permitted for the removed disclosures and delayed adoption permitted until fiscal year 2021 for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company has not yet adopted ASU 2018-13 and is currently evaluating the effect the standard will have on its consolidated financial statements. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09 regarding 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 ASC 606 and its related amendments effective on April 1, 2018 using the modified retrospective method. See Note 4—Revenue Recognition for disclosure on the impact of adopting this standard on the Company’s 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 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 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 12—Income Taxes. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Aggregate Purchase Price Allocation | The following table presents the purchase price allocation related to the acquisition (in thousands): Cash consideration paid $ 25,119 Fair value of common shares issued $ 24,535 Total consideration $ 49,654 Post-business combination compensation expense $ (12,639 ) Cash paid to settle unvested stock options $ (764 ) Total purchase price $ 36,251 Net liabilities assumed $ 259 Deferred tax liabilities $ 2,289 Deferred tax assets $ (1,721 ) Developed technology acquired $ (10,900 ) Goodwill $ 26,178 |
Joint Venture (Tables)
Joint Venture (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Redeemable Non-Controlling Interest | The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below: Balance as of April 1, 2018 $ — Investment by redeemable non-controlling interest $ 3,596 Net loss attributable to redeemable non-controlling interest $ (863 ) Balance as of March 31, 2019 $ 2,733 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Impact on the Consolidated Financial Statements | Select 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): March 31, 2019 As Reported Balances without adoption of ASC 606 Effect of Change Assets: Deferred contract acquisition costs $ 27,161 $ — $ 27,161 Deferred contract acquisition costs, non-current $ 26,218 $ — $ 26,218 Liabilities: Deferred revenue, current $ 267,000 $ 268,379 $ (1,379 ) Deferred revenue, non-current $ 4,597 $ 4,552 $ 45 Stockholders' Equity: Accumulated deficit $ (305,569 ) $ (360,550 ) $ 54,981 Select 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): Twelve Months Ended 2019 As Reported Balances without adoption of ASC 606 Effect of Change Revenue $ 479,225 $ 477,875 $ 1,350 Sales and marketing $ 257,066 $ 269,882 $ (12,816 ) Loss from operations $ (33,106 ) $ (47,272 ) $ 14,166 Net loss attributable to New Relic $ (40,893 ) $ (55,059 ) $ 14,166 Net loss per share, basic and diluted $ (0.72 ) $ (0.97 ) $ 0.25 Select 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): Twelve Months Ended 2019 As Reported Balances without adoption of ASC 606 Effect of Change Higher (Lower) Depreciation and amortization $ 53,794 $ 27,943 $ 25,851 Deferred contract acquisition costs $ (38,667 ) $ — $ (38,667 ) Net cash provided by operating activities $ 115,517 $ 115,517 $ — |
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 March 31, 2019 $ 267,000 $ 4,597 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Information about Financial Assets Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2019 and 2018 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of March 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 133,239 $ — $ — $ 133,239 Commercial paper — 9,973 — 9,973 Short-term investments: Certificates of deposit — 24,726 — 24,726 Commercial paper — 37,071 — 37,071 Corporate notes and bonds — 27,259 — 27,259 U.S. treasury securities 402,091 — — 402,091 U.S. government agencies — 19,225 — 19,225 Restricted cash: Money market funds 8,805 — — 8,805 Total $ 544,135 $ 118,254 $ — $ 662,389 Included in cash and cash equivalents $ 143,212 Included in short-term investments $ 510,372 Included in restricted cash $ 8,805 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 March 31, 2019 and 2018 (in thousands): March 31, 2019 March 31, 2018 Due within one year $ 346,768 $ 96,924 Due in one to two years 163,604 18,517 Total $ 510,372 $ 115,441 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): March 31, 2019 March 31, 2018 Computers, software, and equipment $ 11,245 $ 8,335 Site operation equipment 66,727 37,254 Furniture and fixtures 3,990 2,981 Leasehold improvements 40,541 34,316 Capitalized software development costs 43,063 38,062 Total property and equipment 165,566 120,948 Less: accumulated depreciation and amortization (84,824 ) (67,049 ) Total property and equipment, net $ 80,742 $ 53,899 |
0.5% Convertible Senior Notes_2
0.5% Convertible Senior Notes and Capped Call (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The net carrying amount of the liability component of the Notes is as follows (in thousands): March 31, 2019 March 31, 2018 Principal $ 500,250 $ — Unamortized debt discount (86,374 ) — Unamortized issuance costs (7,939 ) — Net carrying amount $ 405,937 $ — |
Summary of Interest Expense | Interest expense related to the Notes is as follows (in thousands): March 31, 2019 March 31, 2018 Amortization of debt discount $ 16,135 $ — Amortization of issuance costs 1,269 — Contractual interest expense 2,175 — Total interest expense $ 19,579 $ — |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangibles Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwil | The changes in the carrying amount of goodwill for the twelve months ended March 31, 2019 consist of the following (in thousands): Goodwill as of March 31, 2018 $ 11,828 Goodwill acquired 29,684 Goodwill as of March 31, 2019 $ 41,512 |
Schedule of Purchased Intangible Assets Subject to Amortization | Purchased intangible assets subject to amortization as of March 31, 2019 consist of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 18,716 $ (4,861 ) $ 13,855 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 March 31, 2019 is as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2020 $ 5,131 2021 4,605 2022 4,119 $ 13,855 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): As of March 31, 2019 2018 Accrued liabilities $ 5,047 $ 4,139 Accrued tax liabilities 3,063 1,274 Deferred rent 1,140 782 Other 5,322 2,424 Total other current liabilities $ 14,572 $ 8,619 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of March 31, 2019 were as follows (in thousands): Years Ending March 31, Operating Leases 2020 $ 16,374 2021 16,155 2022 15,620 2023 16,105 2024 13,484 Thereafter 32,849 Total minimum future lease payments $ 110,587 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Reserved for Future Issuance | The Company had reserved shares of common stock for future issuance pursuant to equity plans as follows (in thousands): As of March 31, 2019 2018 Common stock options outstanding 2,751 3,215 RSUs outstanding 2,419 2,079 Available for future stock option and RSU grants 10,796 9,576 Available for future employee stock purchase plan awards 2,274 1,929 18,240 16,799 |
Schedule of Stock Option and RSU Award Activities | The following table summarizes the Company’s stock option and RSU award activities for the fiscal year ended March 31, 2019 (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 473 98.93 RSUs granted 1,532 98.74 Stock options exercised (822 ) 21.15 62,459 RSUs vested (879 ) 43.28 Stock options canceled/forfeited (115 ) 53.43 RSUs canceled/forfeited (313 ) 52.76 Outstanding - March 31, 2019 2,751 $ 35.10 6.3 $ 176,002 2,419 $ 76.34 3.0 $ 238,734 Options vested and expected to vest - March 31, 2019 2,728 $ 34.59 6.3 $ 175,803 Options vested and exercisable - March 31, 2019 1,921 $ 20.02 5.3 $ 151,259 RSUs expected to vest - March 31, 2019 2,232 $ 74.52 $ 220,294 |
Schedule of Assumptions Used to Estimate Fair Value of Stock Options Granted and ESPP Shares to be Issued | The assumptions used to estimate the fair value of stock options granted and ESPP shares to be issued during the fiscal years ended March 31, 2019 , 2018 , and 2017 were as follows: Stock Options: Year Ended March 31, 2019 2018 2017 Expected term (years) 6 6 5 - 6 Expected volatility 41-42% 42 - 44% 46 - 47% Risk-free interest rate 2.27-3.06% 1.86 - 2.74% 0.21 - 2.17% Dividend yield — — — ESPP: Year Ended March 31, 2019 2018 2017 Expected term (years) 0.5 0.5 0.5 Expected volatility 37-53% 29 - 30% 37 - 44% Risk-free interest rate 2.23-2.50% 1.16 - 1.82% 0.46 - 0.67% Dividend yield — — — |
Schedule of Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses | Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Year Ended March 31, 2019 2018 2017 Cost of revenue $ 3,487 $ 2,440 $ 1,847 Research and development 17,634 12,176 9,975 Sales and marketing 23,253 16,925 13,042 General and administrative 11,824 9,057 7,082 Total stock-based compensation expense $ 56,198 $ 40,598 $ 31,946 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Income Before Income Taxes | The components of income (loss) before income taxes are as follows (in thousands): Year Ended March 31, 2019 2018 2017 Domestic $ (46,838 ) $ (47,489 ) $ (62,526 ) Foreign 5,779 3,128 1,713 Total $ (41,059 ) $ (44,361 ) $ (60,813 ) |
Components of Provision (Benefit) for Income Taxes | The components of the provision for income taxes are as follows (in thousands): Year Ended March 31, 2019 2018 2017 Current Provision: Federal $ (269 ) $ — $ — State 32 89 18 Foreign 1,742 870 333 Total current provision 1,505 959 351 Deferred Provision: Federal (568 ) — — State — — — Foreign (240 ) — (87 ) Total deferred provision (808 ) — (87 ) Total income tax provision $ 697 $ 959 $ 264 |
Schedule of Effective Federal Statutory Rate and Provision for Income Taxes | The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following: Year Ended March 31, 2019 2018 2017 Federal statutory rate 21.0 % 30.8 % 34.0 % Effect of: State taxes, net of federal benefits 5.0 3.2 2.4 Stock-based compensation 35.2 82.4 (1.8 ) Research and development credits, net of ASC 740-10 8.7 6.5 3.5 Tax Cuts and Jobs Act — (71.0 ) — Permanent items (3.9 ) (2.1 ) — Foreign taxes (0.3 ) (0.6 ) — Business combination 1.4 — — Other 0.7 0.6 0.4 Valuation allowance (69.5 ) (52.0 ) (38.9 ) Effective tax rate (1.7 )% (2.2 )% (0.4 )% |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the significant components of the Company’s deferred tax assets and liabilities for the periods presented (in thousands): As of March 31, 2019 2018 Deferred tax assets: Accrued expenses $ 3,768 $ 2,558 Depreciation and amortization 2,461 3,585 Net operating loss carryforwards 126,125 98,338 Stock based compensation 6,754 5,248 Research and development credits 15,960 12,351 Other — — Gross deferred tax assets 155,068 122,080 Valuation allowance (126,793 ) (117,353 ) Total deferred tax assets 28,275 4,727 Deferred tax liabilities: Prepaids (2,889 ) (2,647 ) Intangibles (2,349 ) Capitalized research and development (2,165 ) (1,942 ) Deferred contract acquisition costs (12,515 ) — Convertible debt (7,570 ) — Total deferred tax liabilities (27,488 ) (4,589 ) Total net deferred tax assets/(liabilities) $ 787 $ 138 |
Schedule of Unrecognized Tax Benefits Reconciliation | Balance at March 31, 2016 $ 3,489 Additions based on tax positions taken during the current period 1,503 Additions based on tax positions taken during the prior period — Reductions based on tax positions taken during the prior period (7 ) Balance at March 31, 2017 4,985 Additions based on tax positions taken during the current period 1,938 Reductions based on tax positions taken during the prior period (187 ) Balance at March 31, 2018 6,736 Additions based on tax positions taken during the current period 1,566 Reductions based on tax positions taken during the prior period (305 ) Balance at March 31, 2019 $ 7,997 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Net Loss Per Share Attributable to Common Stockholders, Basic and Diluted | The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Year Ended March 31, 2019 2018 2017 Numerator: Net loss attributable to New Relic $ (40,893 ) $ (45,320 ) $ (61,077 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 56,884 54,814 51,715 Net loss attributable to New Relic per share—basic and diluted $ (0.72 ) $ (0.83 ) $ (1.18 ) |
Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents | The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of March 31, 2019 2018 2017 Options to purchase common stock 2,751 3,215 4,607 Restricted stock units 2,419 2,079 1,978 ESPP shares 29 30 38 Common stock reserved for issuance in connection with acquisition — — 43 5,199 5,324 6,666 |
Revenue by Geographic Location
Revenue by Geographic Location (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Areas | The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Year Ended March 31, 2019 2018 2017 United States $ 327,341 $ 242,898 $ 178,727 EMEA 87,596 65,540 49,825 APAC 38,466 26,554 19,887 Other 25,822 20,066 15,040 Total revenue $ 479,225 $ 355,058 $ 263,479 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | May 31, 2018 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Other-than-temporarily impaired investments | $ 0 | $ 0 | |||
Gross value of capitalized internal use software | 6,000,000 | 5,700,000 | $ 4,900,000 | ||
Stock-based compensation costs | 800,000 | 900,000 | 900,000 | ||
Amortization expense | 4,100,000 | 6,100,000 | 6,900,000 | ||
Net book value of capitalized software | 10,600,000 | 9,600,000 | |||
Impairment of long-lived assets | 0 | 0 | 0 | ||
Goodwill impairment | $ 0 | ||||
Computers and Software | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 3 years | ||||
Other Office Equipment and Site-related Computer Hardware | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 3 years | ||||
Furniture and Fixtures | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 5 years | ||||
Capitalized Software Development Costs | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 3 years | ||||
Sales and marketing | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Advertising expense | $ 19,300,000 | $ 17,700,000 | $ 21,700,000 | ||
Convertible Debt | Convertible Senior Notes Due 2023 | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Stated interest rate | 0.50% | 0.50% |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 25, 2019 | Oct. 30, 2018 | Oct. 09, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Stock-based compensation expense | $ 56,198 | $ 40,598 | $ 31,946 | |||
Preliminary purchase price allocation, goodwill | $ 41,512 | $ 11,828 | ||||
SignifAI, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, aggregate purchase price | $ 36,251 | |||||
Cash consideration paid | $ 25,119 | |||||
Number of shares issued to acquire capital stock (in shares) | 143,861 | |||||
Aggregate fair value of common stock | $ 11,900 | |||||
Fair value of shares issued to acquire capital stock (in usd per share) | $ 82.69 | |||||
Total direct transactions costs | $ 900 | |||||
Stock-based compensation expense | $ 800 | |||||
Holdback arrangement, common stock (in shares) | 152,840 | |||||
Amount excluded from the aggregate purchase price | $ 12,600 | |||||
Preliminary purchase price allocation, goodwill | $ 26,178 | |||||
CoScale NV | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid | $ 6,300 | |||||
Total direct transactions costs | $ 300 | |||||
Amount excluded from the aggregate purchase price | 900 | |||||
Preliminary purchase price allocation, goodwill | 3,400 | |||||
Technology | CoScale NV | ||||||
Business Acquisition [Line Items] | ||||||
Acquired technology | $ 2,900 | |||||
Acquired technology, estimated useful life | 3 years | |||||
Minimum | SignifAI, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Vesting period | 24 months | |||||
Maximum | SignifAI, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Vesting period | 36 months |
Business Combination - Schedule
Business Combination - Schedule of Aggregate Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jan. 25, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 41,512 | $ 11,828 | |
SignifAI, Inc. | |||
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 25,119 | ||
Fair value of common shares issued | 24,535 | ||
Total consideration | 49,654 | ||
Post-business combination compensation expense | (12,639) | ||
Cash paid to settle unvested stock options | (764) | ||
Total purchase price | 36,251 | ||
Net liabilities assumed | 259 | ||
Deferred tax liabilities | 2,289 | ||
Deferred tax assets | (1,721) | ||
Developed technology acquired | (10,900) | ||
Goodwill | $ 26,178 |
Joint Venture - Additional Info
Joint Venture - Additional Information (Details) ¥ in Millions | Aug. 21, 2019JPY (¥) | Aug. 21, 2019USD ($) | Aug. 21, 2018JPY (¥) | Aug. 21, 2018USD ($) | Aug. 21, 2019USD ($) | Mar. 31, 2019 | Dec. 31, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||
Redemption value of redeemable non-controlling interest | $ 0 | ||||||
Scenario, Forecast | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Contributions for joint venture | ¥ 104 | $ 900,000 | |||||
The Investors | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Contributions for joint venture | ¥ 396 | $ 3,600,000 | |||||
New Relic K.K | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage, parent | 60.00% | ||||||
New Relic K.K | The Investors | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage, noncontrolling interest | 40.00% | 40.00% | |||||
Maximum | The Investors | Scenario, Forecast | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Additional investor contribution | ¥ 156 | $ 1,400,000 |
Joint Venture - Schedule of Red
Joint Venture - Schedule of Redeemable Non-Controlling Interest (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance as of April 1, 2018 | $ 0 |
Investment by redeemable non-controlling interest | 3,596 |
Net loss attributable to redeemable non-controlling interest | (863) |
Balance as of March 31, 2019 | $ 2,733 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | 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 | $ (305,569,000) | $ (305,484,000) | |
Contract asset impairment | 0 | ||
Recognized revenue that was previously included in deferred revenue balances | 189,400,000 | ||
Capitalized contract cost, amortization | 25,900,000 | ||
Acquisition costs expensed as incurred | 9,000,000 | ||
Revenue, remaining performance obligation | 498,300,000 | ||
Accounting Standards Update 2014-09 | Effect of Change Higher (Lower) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction to accumulated deficit due to adoption of new accounting guidance | $ 54,981,000 | $ 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 Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | |
Assets | ||||
Deferred contract acquisition costs, current | $ 27,161 | $ 0 | ||
Deferred contract acquisition costs, non-current | 26,218 | 0 | ||
Liabilities: | ||||
Deferred revenue, current | 267,000 | 189,633 | $ 188,860 | |
Deferred revenue, non-current | 4,597 | 1,182 | ||
Stockholders' equity: | ||||
Accumulated deficit | (305,569) | (305,484) | ||
Income Statement [Abstract] | ||||
Revenue | 479,225 | 355,058 | $ 263,479 | |
Sales and marketing | 257,066 | 207,021 | 168,163 | |
Loss from operations | (33,106) | (46,808) | (61,343) | |
Net loss attributable to New Relic | $ (40,893) | $ (45,320) | $ (61,077) | |
Net loss per share, basic and diluted (in usd per share) | $ (0.72) | $ (0.83) | $ (1.18) | |
Statement of Cash Flows [Abstract] | ||||
Depreciation and amortization | $ 53,794 | $ 23,243 | $ 18,805 | |
Deferred contract acquisition costs | (38,667) | 0 | 0 | |
Net cash provided by operating activities | 115,517 | $ 35,650 | $ 18,928 | |
Balances without adoption of ASC 606 | ||||
Assets | ||||
Deferred contract acquisition costs, current | 0 | |||
Deferred contract acquisition costs, non-current | 0 | |||
Liabilities: | ||||
Deferred revenue, current | 268,379 | |||
Deferred revenue, non-current | 4,552 | |||
Stockholders' equity: | ||||
Accumulated deficit | (360,550) | |||
Income Statement [Abstract] | ||||
Revenue | 477,875 | |||
Sales and marketing | 269,882 | |||
Loss from operations | (47,272) | |||
Net loss attributable to New Relic | $ (55,059) | |||
Net loss per share, basic and diluted (in usd per share) | $ (0.97) | |||
Statement of Cash Flows [Abstract] | ||||
Depreciation and amortization | $ 27,943 | |||
Deferred contract acquisition costs | 0 | |||
Net cash provided by operating activities | 115,517 | |||
Effect of Change Higher (Lower) | Accounting Standards Update 2014-09 | ||||
Assets | ||||
Deferred contract acquisition costs, current | 27,161 | |||
Deferred contract acquisition costs, non-current | 26,218 | |||
Liabilities: | ||||
Deferred revenue, current | (1,379) | |||
Deferred revenue, non-current | 45 | |||
Stockholders' equity: | ||||
Accumulated deficit | 54,981 | $ 40,800 | ||
Income Statement [Abstract] | ||||
Revenue | 1,350 | |||
Sales and marketing | (12,816) | |||
Loss from operations | 14,166 | |||
Net loss attributable to New Relic | $ 14,166 | |||
Net loss per share, basic and diluted (in usd per share) | $ 0.25 | |||
Statement of Cash Flows [Abstract] | ||||
Depreciation and amortization | $ 25,851 | |||
Deferred contract acquisition costs | (38,667) | |||
Net cash provided by operating activities | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenue, current | $ 267,000 | $ 188,860 | $ 189,633 |
Deferred revenue, non-current | $ 4,597 | $ 1,182 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 498.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 7.00% |
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) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 662,389 | $ 192,007 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 143,212 | 68,364 |
Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 133,239 | 38,458 |
Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 9,973 | 21,710 |
Cash and cash equivalents | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 2,698 | |
Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,498 | |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 510,372 | 115,441 |
Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 24,726 | 20,492 |
Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 37,071 | 21,699 |
Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 27,259 | 9,794 |
Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 402,091 | 40,187 |
Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 19,225 | 23,269 |
Restricted cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 8,805 | 8,202 |
Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 8,805 | 8,202 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 544,135 | 89,545 |
Level 1 | Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 133,239 | 38,458 |
Level 1 | Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Cash and cash equivalents | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 2,698 | |
Level 1 | Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 1 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 402,091 | 40,187 |
Level 1 | Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 8,805 | 8,202 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 118,254 | 102,462 |
Level 2 | Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 9,973 | 21,710 |
Level 2 | Cash and cash equivalents | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 2 | Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,498 | |
Level 2 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 24,726 | 20,492 |
Level 2 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 37,071 | 21,699 |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 27,259 | 9,794 |
Level 2 | Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 19,225 | 23,269 |
Level 2 | Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Cash and cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Cash and cash equivalents | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 3 | Cash and cash equivalents | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 3 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Short-term investments | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Short-term investments | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Restricted cash | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Securities in an unrealized loss position for more than 12 months | $ 0 | |
Convertible Senior Notes Due 2023 | Convertible Debt | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Notes | $ 505,600,000 |
Fair Value Measurements - Class
Fair Value Measurements - Classification of Available-for-Sale Short-Term Investments by Contractual Maturities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due within one year | $ 346,768 | $ 96,924 |
Due in one to two years | 163,604 | 18,517 |
Total | $ 510,372 | $ 115,441 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 165,566 | $ 120,948 |
Less: accumulated depreciation and amortization | (84,824) | (67,049) |
Total property and equipment, net | 80,742 | 53,899 |
Computers, software, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,245 | 8,335 |
Site operation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 66,727 | 37,254 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,990 | 2,981 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 40,541 | 34,316 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 43,063 | $ 38,062 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 25.9 | $ 22.1 | $ 17.6 |
0.5% Convertible Senior Notes_3
0.5% Convertible Senior Notes and Capped Call - Additional Information (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2018USD ($)day$ / sharesshares | Mar. 31, 2019USD ($) | Dec. 31, 2018 | Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Purchase of capped calls | $ 63,182,000 | |||
Capped Calls | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, conversion price (in dollars 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 | ||||
Debt Instrument [Line Items] | ||||
Purchase of capped calls | 63,182,000 | |||
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% | ||
Convertible debt, conversion ratio | 9.02 | |||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 110.81 | |||
Debt discount for Conversion Option | $ 102,500,000 | |||
Effective interest rate | 5.74% | |||
Debt Instrument, Convertible, Equity Component, Unamortized Discount Issuance Costs | $ 2,400,000 | |||
Issuance costs | 11,600,000 | $ 7,939,000 | $ 0 | |
Debt issuance costs, equity component | 9,200,000 | |||
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 (less than) | 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 (less than) | 98.00% |
0.5% Convertible Senior Notes_4
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 | Mar. 31, 2019 | May 31, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | |||
Principal | $ 500,250 | $ 0 | |
Unamortized debt discount | (86,374) | 0 | |
Unamortized issuance costs | (7,939) | $ (11,600) | 0 |
Net carrying amount | $ 405,937 | $ 0 |
0.5% Convertible Senior Notes_5
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 | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | |||
Amortization of debt discount | $ 16,135 | $ 0 | |
Amortization of issuance costs | 1,269 | 0 | |
Contractual interest expense | 2,175 | $ 0 | |
Total interest expense | $ 0 | $ 19,579 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangibles Assets - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill as of March 31, 2018 | $ 11,828 |
Goodwill acquired | 29,684 |
Goodwill as of March 31, 2019 | $ 41,512 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangibles Assets - Schedule of Purchased Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 13,855 | $ 1,312 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18,716 | 4,900 |
Accumulated Amortization | (4,861) | (3,588) |
Net Carrying Amount | $ 13,855 | $ 1,312 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangibles Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1.3 | $ 1.2 | $ 1.1 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangibles Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Estimated Future Amortization Expense | ||
2019 | $ 5,131 | |
2020 | 4,605 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 4,119 | |
Net Carrying Amount | $ 13,855 | $ 1,312 |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued liabilities | $ 5,047 | $ 4,139 |
Accrued tax liabilities | 3,063 | 1,274 |
Deferred rent | 1,140 | 782 |
Other | 5,322 | 2,424 |
Total other current liabilities | $ 14,572 | $ 8,619 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Deferred rent | $ 12,200,000 | $ 8,900,000 | |
Rent expense, net of sublease income, for operating leases | 14,500,000 | 12,000,000 | $ 9,800,000 |
Sublease income | 0 | 100,000 | $ 100,000 |
Purchase commitments | 33,500,000 | $ 26,500,000 | |
Accrued loss | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Future minimum lease payments under non-cancelable operating leases | |
2020 | $ 16,374 |
2021 | 16,155 |
2022 | 15,620 |
2023 | 16,105 |
2024 | 13,484 |
Thereafter | 32,849 |
Total minimum future lease payments | $ 110,587 |
Common Stock and Stockholders_3
Common Stock and Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Detail) - shares shares in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 18,240 | 16,799 |
RSUs outstanding | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 2,419 | 2,079 |
Available for future stock option and RSU grants | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 10,796 | 9,576 |
Available for future employee stock purchase plan awards | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 2,274 | 1,929 |
Common stock options outstanding | ||
Class of Stock [Line Items] | ||
Shares of common stock reserved for future issuance (in shares) | 2,751 | 3,215 |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 29, 2019 | |
Class of Stock [Line Items] | |||||
Stock-based compensation expense | $ 56,198 | $ 40,598 | $ 31,946 | ||
Shares available for issuance (in shares) | 18,240,000 | 16,799,000 | |||
Weighted-average grant-date fair value of options granted (in usd per share) | $ 42.37 | $ 21.40 | $ 12.75 | ||
Intrinsic value of options exercised | $ 62,459 | $ 53,200 | $ 65,300 | ||
Total fair value of RSUs vested | 38,200 | $ 25,600 | $ 17,100 | ||
Closing stock price reported (in usd per share) | $ 98.70 | ||||
Unrecognized stock-based compensation cost related to outstanding unvested stock awards | $ 22,700 | ||||
Stock-based compensation cost expected to be recognized over weighted-average period | 2 years 4 months 24 days | ||||
Expected to vest unrecognized stock-based compensation cost related to outstanding unvested stock options | $ 186,900 | ||||
Stock-based compensation cost expected to be recognized over weighted-average period | 6 years 3 months 18 days | ||||
Unvested Stock Options | |||||
Class of Stock [Line Items] | |||||
Stock-based compensation cost expected to be recognized over weighted-average period | 3 years | ||||
ESPP shares | |||||
Class of Stock [Line Items] | |||||
Shares reserved for issuance under plan (in shares) | 1,000,000 | ||||
Additional shares available for issuance under the plan (in shares) | 500,000 | ||||
Percentage of common stock shares increased under the plan | 1.00% | ||||
Common stock purchased under Employee Stock Purchase Plan (in shares) | 200,000 | 200,000 | 200,000 | ||
Stock-based compensation expense | $ 3,600 | $ 2,200 | $ 1,800 | ||
Shares available for issuance (in shares) | 2,273,989 | ||||
Expected term (years) | 6 months | ||||
2008 Equity Incentive Plan | |||||
Class of Stock [Line Items] | |||||
Shares available for issuance (in shares) | 0 | ||||
2014 Equity Incentive Plan | |||||
Class of Stock [Line Items] | |||||
Shares reserved for issuance under plan (in shares) | 5,000,000 | ||||
Shares available for issuance (in shares) | 10,795,889 | ||||
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 Stockholders_5
Common Stock and Stockholders' Equity - Schedule of Stock Option and RSU Award Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Number of Shares | |||
Beginning balance (in shares) | 3,215 | ||
Stock options granted (in shares) | 473 | ||
Stock options exercised (in shares) | (822) | ||
Stock options canceled/forfeited (in shares) | (115) | ||
Ending balance (in shares) | 2,751 | 3,215 | |
Options vested and expected to vest (in shares) | 2,728 | ||
Options vested and exercisable (in shares) | 1,921 | ||
Weighted- Average Exercise Price | |||
Beginning balance (in usd per share) | $ 22.79 | ||
Stock options granted (in usd per share) | 98.93 | ||
Stock options exercised (in usd per share) | 21.15 | ||
Stock options canceled/forfeited (in usd per share) | 53.43 | ||
Ending balance (in usd per share) | 35.10 | $ 22.79 | |
Options vested and expected to vest (in usd per share) | 34.59 | ||
Options vested and exercisable (in usd per share) | $ 20.02 | ||
Weighted-Average Remaining Contractual Term (in years) | |||
Balance | 6 years 3 months 18 days | 6 years 8 months 12 days | |
Options vested and expected to vest | 6 years 3 months 18 days | ||
Options vested and exercisable | 5 years 3 months 18 days | ||
Aggregate Intrinsic Value | |||
Beginning balance | $ 165,041 | ||
Stock options exercised | 62,459 | $ 53,200 | $ 65,300 |
Ending balance | 176,002 | $ 165,041 | |
Options vested and expected to vest | 175,803 | ||
Options vested and exercisable | $ 151,259 | ||
Number of Shares | |||
Beginning balance (in shares) | 2,079 | ||
RSUs granted (in shares) | 1,532 | ||
RSUs vested (in shares) | (879) | ||
RSUs canceled/forfeited (in shares) | (313) | ||
Ending balance (in shares) | 2,419 | 2,079 | |
RSUs expected to vest (in shares) | 2,232 | ||
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 42.31 | ||
RSUs granted (in usd per share) | 98.74 | ||
RSUs vested (in usd per share) | 43.28 | ||
RSUs canceled/forfeited (in usd per share) | 52.76 | ||
Ending balance (in usd per share) | 76.34 | $ 42.31 | |
RSUs expected to vest (in usd per share) | $ 74.52 | ||
Weighted- Average Remaining Contractual Term (in years) | |||
Balance | 3 years | 2 years 8 months 12 days | |
Aggregate Intrinsic Value | |||
Balance | $ 238,734 | $ 154,071 | |
RSUs expected to vest | $ 220,294 |
Common Stock and Stockholders_6
Common Stock and Stockholders' Equity - Schedule of Assumptions Used to Estimate Fair Value of Stock Options Granted and ESPP Shares to be Issued (Detail) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 6 years | |
Dividend yield | 0.00% | 0.00% | 0.00% |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 6 months | 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 5 years | ||
Expected volatility | 41.00% | 42.00% | 46.00% |
Risk-free interest rate | 2.27% | 1.86% | 0.21% |
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 37.00% | 29.00% | 37.00% |
Risk-free interest rate | 2.23% | 1.16% | 0.46% |
Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | ||
Expected volatility | 42.00% | 44.00% | 47.00% |
Risk-free interest rate | 3.06% | 2.74% | 2.17% |
Maximum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 53.00% | 30.00% | 44.00% |
Risk-free interest rate | 2.50% | 1.82% | 0.67% |
Common Stock and Stockholders_7
Common Stock and Stockholders' Equity - Schedule of Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 56,198 | $ 40,598 | $ 31,946 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 3,487 | 2,440 | 1,847 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 17,634 | 12,176 | 9,975 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 23,253 | 16,925 | 13,042 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 11,824 | $ 9,057 | $ 7,082 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (46,838) | $ (47,489) | $ (62,526) |
Foreign | 5,779 | 3,128 | 1,713 |
Total | $ (41,059) | $ (44,361) | $ (60,813) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Current Provision: | |||
Federal | $ (269) | $ 0 | $ 0 |
State | 32 | 89 | 18 |
Foreign | 1,742 | 870 | 333 |
Total current provision | 1,505 | 959 | 351 |
Deferred Provision: | |||
Federal | (568) | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (240) | 0 | (87) |
Total deferred provision | (808) | 0 | (87) |
Total income tax provision | $ 697 | $ 959 | $ 264 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Federal Statutory Rate and Provision for Income Taxes (Detail) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 30.80% | 34.00% |
Effect of: | |||
State taxes, net of federal benefits | 5.00% | 3.20% | 2.40% |
Stock-based compensation | 35.20% | 82.40% | (1.80%) |
Research and development credits, net of ASC 740-10 | 8.70% | 6.50% | 3.50% |
Tax Cuts and Jobs Act | 0.00% | (71.00%) | 0.00% |
Permanent items | (3.90%) | (2.10%) | 0.00% |
Foreign taxes | (0.30%) | (0.60%) | 0.00% |
Business combination | 1.40% | 0.00% | 0.00% |
Other | 0.70% | 0.60% | 0.40% |
Valuation allowance | (69.50%) | (52.00%) | (38.90%) |
Effective tax rate | (1.70%) | (2.20%) | (0.40%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred tax assets: | ||
Accrued expenses | $ 3,768 | $ 2,558 |
Depreciation and amortization | 2,461 | 3,585 |
Net operating loss carryforwards | 126,125 | 98,338 |
Stock based compensation | 6,754 | 5,248 |
Research and development credits | 15,960 | 12,351 |
Other | 0 | 0 |
Gross deferred tax assets | 155,068 | 122,080 |
Valuation allowance | (126,793) | (117,353) |
Total deferred tax assets | 28,275 | 4,727 |
Deferred tax liabilities: | ||
Prepaids | (2,889) | (2,647) |
Intangibles | (2,349) | |
Capitalized research and development | (2,165) | (1,942) |
Deferred contract acquisition costs | (12,515) | 0 |
Convertible debt | 7,570 | 0 |
Total deferred tax liabilities | (27,488) | (4,589) |
Total net deferred tax assets/(liabilities) | $ 787 | $ 138 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Contingency [Line Items] | |||||
Income tax provision | $ 2,700,000 | ||||
Valuation allowance for company | $ 9,000,000 | $ 23,000,000 | |||
U.S. Federal net operating losses | 518,000,000 | ||||
State net operating losses | 270,000,000 | ||||
U.S. Federal net operating losses, amount limited to 80% of taxable income, carried forward indefinitely | $ 97,000,000 | ||||
U.S. Federal net operating losses, taxable income threshold | 80.00% | ||||
U.S. Federal net operating losses, amount not limited to taxable income, carried forward indefinitely | $ 99,000,000 | ||||
U.S. Federal net operating losses, amount subject to expiration in 2028 | $ 319,000,000 | ||||
Minimum percentage of ownership required to increase in stock of the ownership | 5.00% | ||||
Increase in ownership percentage of certain stockholders | 50.00% | ||||
Ownership change, increase in ownership percentage,term | 3 years | ||||
Unrecognized tax benefits | $ 7,997,000 | 6,736,000 | $ 4,985,000 | $ 3,489,000 | |
Unrecognized tax benefits that would affect income tax expense | 8,000,000 | ||||
Accrued interest and penalties related to uncertain tax positions | 0 | $ 0 | $ 0 | ||
U.S. | Research and Development | |||||
Income Tax Contingency [Line Items] | |||||
Research and development credits | 17,200,000 | ||||
California | Research and Development | |||||
Income Tax Contingency [Line Items] | |||||
Research and development credits | 2,800,000 | ||||
Oregon | Research and Development | |||||
Income Tax Contingency [Line Items] | |||||
Research and development credits | $ 2,900,000 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 6,736 | $ 4,985 | $ 3,489 |
Additions based on tax positions taken during the current period | 1,566 | 1,938 | 1,503 |
Additions based on tax positions taken during the prior period | 0 | ||
Reductions based on tax positions taken during the prior period | (305) | (187) | (7) |
Unrecognized tax benefits, ending balance | $ 7,997 | $ 6,736 | $ 4,985 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares shares in Thousands | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 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) | 5,199 | 5,324 | 6,666 | |
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 Attributable to Common Stockholders, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | |||
Net loss attributable to New Relic | $ (40,893) | $ (45,320) | $ (61,077) |
Denominator: | |||
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 56,884 | 54,814 | 51,715 |
Net loss per share, basic and diluted (in usd per share) | $ (0.72) | $ (0.83) | $ (1.18) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents (Detail) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 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) | 5,199 | 5,324 | 6,666 |
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 | 0 | 43 |
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) | 29 | 30 | 38 |
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) | 2,419 | 2,079 | 1,978 |
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) | 2,751 | 3,215 | 4,607 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Postemployment Benefits [Abstract] | |||
Contributions to employee benefit plan | $ 6.3 | $ 3.2 | $ 2.3 |
Revenue by Geographic Locatio_2
Revenue by Geographic Location - Schedule of Revenue by Geographic Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 479,225 | $ 355,058 | $ 263,479 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 327,341 | 242,898 | 178,727 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 87,596 | 65,540 | 49,825 |
APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 38,466 | 26,554 | 19,887 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 25,822 | $ 20,066 | $ 15,040 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Revenue from sales to related parties | $ 0.2 | $ 1.1 | $ 1.8 |
Expenses related to purchases from related parties | 1.3 | 2 | $ 1.4 |
Accounts payable to related parties | $ 0.1 | $ 0.1 |