Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2023 | Jul. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36766 | |
Entity Registrant Name | New Relic, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2017431 | |
Entity Address, Address Line One | 188 Spear Street | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 650 | |
Local Phone Number | 777-7600 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | NEWR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 70,225,487 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001448056 | |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 240,699 | $ 625,727 |
Short-term investments | 216,285 | 254,085 |
Accounts receivable, net of allowances of $2,576 and $3,121, respectively | 132,002 | 234,287 |
Prepaid expenses and other current assets | 19,678 | 17,747 |
Deferred contract acquisition costs | 13,203 | 14,962 |
Total current assets | 621,867 | 1,146,808 |
Property and equipment, net | 48,141 | 48,509 |
Restricted cash | 5,805 | 5,795 |
Goodwill | 172,298 | 172,298 |
Intangible assets, net | 10,128 | 11,603 |
Deferred contract acquisition costs, non-current | 10,831 | 8,558 |
Lease right-of-use assets | 16,641 | 19,678 |
Other assets, non-current | 5,573 | 5,759 |
Total assets | 891,284 | 1,419,008 |
Current liabilities: | ||
Accounts payable | 39,356 | 29,452 |
Accrued compensation and benefits | 43,970 | 37,552 |
Other current liabilities | 33,076 | 39,424 |
Convertible senior notes, current | 0 | 500,044 |
Deferred revenue | 313,139 | 370,987 |
Lease liabilities | 8,992 | 10,928 |
Total current liabilities | 438,533 | 988,387 |
Lease liabilities, non-current | 35,846 | 38,384 |
Deferred revenue, non-current | 6,374 | 3,800 |
Other liabilities, non-current | 30,430 | 24,897 |
Total liabilities | 511,183 | 1,055,468 |
Commitments and contingencies (Note 7) | ||
Redeemable non-controlling interest | 27,214 | 23,105 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000 shares authorized at June 30, 2023 and March 31, 2023; 70,483 shares and 69,786 shares issued at June 30, 2023 and March 31, 2023, respectively; and 70,223 shares and 69,526 shares outstanding at June 30, 2023 and March 31, 2023, respectively | 70 | 69 |
Treasury stock - at cost (260 shares) | (263) | (263) |
Additional paid-in capital | 1,360,656 | 1,311,615 |
Accumulated other comprehensive loss | (6,591) | (7,432) |
Accumulated deficit | (1,000,985) | (963,554) |
Total stockholders’ equity | 352,887 | 340,435 |
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ 891,284 | $ 1,419,008 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,576 | $ 3,121 |
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) | 70,483,000 | 69,786,000 |
Common stock, shares outstanding (in shares) | 70,223,000 | 69,526,000 |
Treasury stock, shares (in shares) | 260,000 | 260,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 242,628 | $ 216,459 |
Cost of revenue | 54,440 | 63,893 |
Gross profit | 188,188 | 152,566 |
Operating expenses: | ||
Research and development | 80,310 | 64,769 |
Sales and marketing | 94,019 | 104,420 |
General and administrative | 46,849 | 39,030 |
Total operating expenses | 221,178 | 208,219 |
Loss from operations | (32,990) | (55,653) |
Other income (expense): | ||
Interest income | 4,593 | 1,110 |
Interest expense | (429) | (1,232) |
Other expense, net | (1,666) | (209) |
Loss before income taxes | (30,492) | (55,984) |
Income tax provision | 2,830 | 267 |
Net loss | (33,322) | (56,251) |
Net loss and adjustment attributable to redeemable non-controlling interest | (4,109) | 6,012 |
Net loss attributable to New Relic | $ (37,431) | $ (50,239) |
Net loss attributable to New Relic per share, basic (in usd per share) | $ (0.54) | $ (0.76) |
Net loss attributable to New Relic per share, diluted (in usd per share) | $ (0.54) | $ (0.76) |
Weighted-average shares used to compute net loss per share, basic (in shares) | 69,546 | 66,421 |
Weighted-average shares used to compute net loss per share, diluted (in shares) | 69,546 | 66,421 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss attributable to New Relic | $ (37,431) | $ (50,239) |
Other comprehensive loss: | ||
Unrealized gain (loss) on available-for-sale securities | 841 | (1,936) |
Comprehensive loss attributable to New Relic | $ (36,590) | $ (52,175) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ 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, 2022 | 66,988,000 | |||||
Beginning balance at Mar. 31, 2022 | $ 322,704 | $ 66 | $ 1,114,221 | $ (263) | $ (8,012) | $ (783,308) |
Beginning balance, treasury stock (in shares) at Mar. 31, 2022 | 260,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 96,000 | |||||
Issuance of common stock upon exercise of stock options | 1,725 | $ 0 | 1,725 | |||
Issuance of common stock for vested restricted stock units (in shares) | 458,000 | |||||
Issuance of common stock for vested restricted and performance stock units | 0 | $ 1 | (1) | |||
Stock-based compensation expense | 36,668 | 36,668 | ||||
Other comprehensive income (loss), net | (1,936) | (1,936) | ||||
Net loss attributable to New Relic | (50,239) | (50,239) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 67,542,000 | |||||
Ending balance, treasury stock (in shares) at Jun. 30, 2022 | 260,000 | |||||
Ending balance at Jun. 30, 2022 | $ 308,922 | $ 67 | 1,152,613 | $ (263) | (9,948) | (833,547) |
Beginning balance (in shares) at Mar. 31, 2023 | 69,786,000 | 69,786,000 | ||||
Beginning balance at Mar. 31, 2023 | $ 340,435 | $ 69 | 1,311,615 | $ (263) | (7,432) | (963,554) |
Beginning balance, treasury stock (in shares) at Mar. 31, 2023 | 260,000 | 260,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 44,000 | 44,000 | ||||
Issuance of common stock upon exercise of stock options | $ 2,802 | 2,802 | ||||
Issuance of common stock for vested restricted stock units (in shares) | 653,000 | |||||
Issuance of common stock for vested restricted and performance stock units | $ 1 | (1) | ||||
Stock-based compensation expense | 46,240 | 46,240 | ||||
Other comprehensive income (loss), net | 841 | 841 | ||||
Net loss attributable to New Relic | $ (37,431) | (37,431) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 70,483,000 | 70,483,000 | ||||
Ending balance, treasury stock (in shares) at Jun. 30, 2023 | 260,000 | 260,000 | ||||
Ending balance at Jun. 30, 2023 | $ 352,887 | $ 70 | $ 1,360,656 | $ (263) | $ (6,591) | $ (1,000,985) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss attributable to New Relic | $ (37,431) | $ (50,239) |
Net loss and adjustment attributable to redeemable non-controlling interest (Note 2) | 4,109 | (6,012) |
Net loss | (33,322) | (56,251) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 6,727 | 10,644 |
Amortization of deferred contract acquisition costs | 5,190 | 7,224 |
Stock-based compensation expense | 46,437 | 34,882 |
Amortization of debt discount and issuance costs | 206 | 593 |
Non-cash charges related to restructuring activities | 3,167 | 0 |
Other | 829 | (352) |
Changes in operating assets and liabilities, net of acquisition of business: | ||
Accounts receivable, net | 102,285 | 116,545 |
Prepaid expenses and other assets | (2,984) | (147) |
Deferred contract acquisition costs | (5,704) | (416) |
Lease right-of-use assets | 1,629 | 2,562 |
Accounts payable | 10,124 | 2,650 |
Accrued compensation and benefits and other liabilities | (191) | (4,562) |
Lease liabilities | (810) | (4,457) |
Deferred revenue | (55,274) | (65,906) |
Net cash provided by operating activities | 78,309 | 43,009 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (515) | (1,294) |
Proceeds from sale of property and equipment | 415 | 943 |
Purchases of short-term investments | 0 | (50,373) |
Proceeds from sale and maturity of short-term investments | 38,500 | 44,175 |
Capitalized software development costs | (4,279) | (3,387) |
Net cash provided by (used in) investing activities | 34,121 | (9,936) |
Cash flows from financing activities: | ||
Payment of convertible senior notes | (500,250) | 0 |
Proceeds from exercise of employee stock options | 2,802 | 1,725 |
Net cash provided by (used in) financing activities | (497,448) | 1,725 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (385,018) | 34,798 |
Cash, cash equivalents and restricted cash at beginning of period | 631,522 | 274,470 |
Cash, cash equivalents and restricted cash at end of period | 246,504 | 309,268 |
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets: | ||
Cash and cash equivalents | 240,699 | 303,493 |
Restricted cash | 5,805 | 5,775 |
Total cash, cash equivalents and restricted cash | $ 246,504 | $ 309,268 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Business —New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company provides an “all-in-one” observability platform that enables its customers to plan, build, deploy, and operate their critical digital infrastructure by harnessing the power of data. The Company’s observability platform combines metrics, events, logs, traces, and other telemetry data with our proprietary stack of analytical tools to rapidly generate actionable, fact-based insights. The Company’s customers use the New Relic platform to improve uptime, reliability, and operational efficiency, in order to optimize the digital experience for their customers as well as within their organizations. Fiscal Year —The Company’s fiscal year ends on March 31. References to fiscal 2024 refer to the fiscal year ending March 31, 2024. Basis of Presentation —The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, wholly owned or otherwise, and have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. All significant intercompany balances and transactions have been eliminated in consolidation . Certain prior-period amounts have been reclassified to conform with current-period presentation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, as filed with the SEC on May 23, 2023 (the “Annual Report”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim period, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2024. The condensed consolidated balance sheet as of March 31, 2023 included herein was derived from the audited financial statements as of that date. 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. 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. Summary of Significant Accounting Policies —There have been no material changes to our significant accounting policies as of and for the three months ended June 30, 2023, as compared to the significant accounting policies described in our Annual Report. |
Joint Venture
Joint Venture | 3 Months Ended |
Jun. 30, 2023 | |
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. 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. As of June 30, 2023, 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. is classified outside of permanent equity in the Company’s consolidated balance sheet as of June 30, 2023, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses, or its estimated redemption value. Accordingly, the Company adjusted the redeemable non-controlling interest by $4.2 million at June 30, 2023. The following table summarizes the activity in the redeemable non-controlling interest for the periods indicated below (in thousands): Three Months Ended June 30, 2023 2022 Balance, beginning of period $ 23,105 $ 21,686 Net loss attributable to redeemable non-controlling interest (109) (146) Adjustment to redeemable non-controlling interest 4,218 (5,866) Balance, end of period $ 27,214 $ 15,674 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2023 | |
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 following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of June 30, 2023 Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Total Cash and cash equivalents: Money market funds $ 173,445 $ — $ — $ 173,445 Short-term investments: Certificates of deposit — 5,998 — 5,998 Corporate notes and bonds — 65,596 — 65,596 U.S. treasury securities 144,691 — — 144,691 Total short-term investments 144,691 71,594 — 216,285 Restricted cash: Money market funds 5,805 — — 5,805 Total assets measured at fair value $ 323,941 $ 71,594 $ — $ 395,535 Fair Value Measurements as of March 31, 2023 Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Total Cash and cash equivalents: Money market funds $ 532,173 $ — $ — $ 532,173 Short-term investments: Certificates of deposit — 5,961 — 5,961 Commercial paper — 2,990 — 2,990 Corporate notes and bonds — 65,378 — 65,378 U.S. treasury securities 179,756 — — 179,756 Total short-term investments 179,756 74,329 — 254,085 Restricted cash: Money market funds 5,795 — — 5,795 Total assets measured at fair value $ 717,724 $ 74,329 $ — $ 792,053 There were no transfers between fair value measurement levels during the three months ended June 30, 2023 and 2022. The following table presents the Company’s available-for-sale securities as of June 30, 2023 (in thousands): Available-for-sale Investments as of June 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments: Certificates of deposit $ 6,000 $ — $ (2) $ 5,998 Corporate notes and bonds 67,394 — (1,798) 65,596 U.S. treasury securities 147,774 — (3,083) 144,691 Total available-for-sale investments $ 221,168 $ — $ (4,883) $ 216,285 The following table presents the Company’s available-for-sale securities as of March 31, 2023 (in thousands): Available-for-sale Investments as of March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments: Certificates of deposit $ 6,000 $ — $ (39) $ 5,961 Commercial paper 2,994 — (4) 2,990 Corporate notes and bonds 67,571 — (2,193) 65,378 U.S. treasury securities 183,244 — (3,488) 179,756 Total available-for-sale investments $ 259,809 $ — $ (5,724) $ 254,085 The Company reviews its debt securities classified as short-term investments on a regular basis for impairment. For debt securities in unrealized loss positions, the Company determines whether any portion of the decline in fair value below the amortized cost basis is due to credit-related factors where the Company neither intends to sell nor anticipates that it is more likely than not that it will be required to sell prior to recovery of the amortized cost basis. The Company considers factors such as the extent to which the market value has been less than the cost, any noted failure of the issuer to make scheduled payments, changes to the rating of the security, and other relevant credit-related factors in determining whether or not a credit loss exists. During the three months ended June 30, 2023 and the twelve months ended March 31, 2023, the Company did not recognize an allowance for credit-related losses on any of its investments. As of June 30, 2023 and March 31, 2023, securities that were in an unrealized loss position for more than 12 months were $4.9 million and $4.6 million, respectively. The unrealized losses were caused by changes in market interest rates or the widening of market spreads subsequent to the initial purchase of these securities, and not related to the underlying credit of the issuers or the underlying collateral. The unrealized losses on these investments are not considered an other-than-temporary impairment, because the decline in fair value is not attributable to credit quality and because the Company does not intend, and it is not likely that it will be required, to sell these securities before recovery of their amortized cost basis. As a result, the Company did not consider any of its available-for-sale securities to be impaired as of June 30, 2023 and March 31, 2023. The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of June 30, 2023 and March 31, 2023 (in thousands): June 30, 2023 March 31, 2023 Due within one year $ 179,676 $ 165,143 Due after one year and within three years 36,609 88,942 Total $ 216,285 $ 254,085 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 The Company’s 0.50% convertible senior notes due 2023 (the “Notes”) matured and were repaid in cash on May 1, 2023. No amount remains outstanding on the Notes as of June 30, 2023. As of March 31, 2023, the fair value of the Notes were $449.4 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. |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table presents revenue by category (in thousands): Three Months Ended June 30, 2023 2022 Subscription $ 28,720 $ 63,080 Consumption 213,908 153,379 Total revenue $ 242,628 $ 216,459 The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Three Months Ended June 30, 2023 2022 United States $ 151,171 $ 143,460 Europe, the Middle East, and Africa (“EMEA”) 44,000 34,716 Asia Pacific and Japan (“APAC”) 28,897 23,126 Other 18,560 15,157 Total revenue $ 242,628 $ 216,459 Deferred Revenue and Performance Obligations Deferred revenue consists of billings or payments received in advance of revenue being recognized. For the three months ended June 30, 2023 and 2022, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period. For the three months ended June 30, 2023 and 2022, the Company recognized $1.5 million and $6.8 million, respectively, in revenue from performance obligations satisfied in prior periods. The aggregate unrecognized transaction price of the Company’s remaining performance obligations as of June 30, 2023 was $738.9 million. The Company expects approximately 70% to be recognized as revenue in the 12 months following June 30, 2023, 91% of the balance as revenue in the 24 months following June 30, 2023, and the remainder thereafter based on historical customer consumption patterns. However, the amount and timing of revenue recognition are generally dependent upon customers’ future consumption, which is inherently variable at customers’ discretion and can extend beyond the original contract term in cases where customers are permitted to roll over unused capacity to future periods, generally on the purchase of additional capacity at renewal. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, consisted of the following (in thousands): June 30, 2023 March 31, 2023 Computers, software, and equipment $ 13,117 $ 13,301 Site operation equipment 49,119 52,672 Furniture and fixtures 2,588 2,589 Leasehold improvements 21,885 21,877 Capitalized software development costs 94,556 90,075 Total property and equipment 181,265 180,514 Less: accumulated depreciation and amortization (133,124) (132,005) Total property and equipment, net $ 48,141 $ 48,509 Depreciation and amortization expense related to property and equipment was $4.8 million and $8.0 million for the three months ended June 30, 2023 and 2022, respectively. |
0.5% Convertible Senior Notes a
0.5% Convertible Senior Notes and Capped Call | 3 Months Ended |
Jun. 30, 2023 | |
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 the Notes in a private offering, including $65.25 million in aggregate principal amount of Notes pursuant to the exercise in full of the initial purchasers’ option to purchase additional Notes. The Notes were the Company’s senior unsecured obligations and bore 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. Each $1,000 principal amount of the Notes was initially convertible into 9.0244 shares of the Company’s common stock (the “Conversion Option”), which was equivalent to an initial conversion price of approximately $110.81 per share. The Notes matured and were repaid in cash on May 1, 2023. The net carrying amount of the Notes was as follows (in thousands): June 30, 2023 March 31, 2023 Principal $ — $ 500,250 Unamortized issuance costs — (206) Net carrying amount $ — $ 500,044 For the three months ended June 30, 2023 and 2022, the effective interest rate for the Notes was 0.98%. Interest expense related to the Notes was as follows (in thousands): Three Months Ended June 30, 2023 2022 Amortization of issuance costs $ 206 $ 593 Contractual interest expense 215 624 Total interest expense $ 421 $ 1,217 In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “Capped Calls”). The Capped Calls each had an initial strike price of approximately $110.81 per share, subject to certain adjustments, which corresponded to the initial conversion price of the Notes. The Capped Calls had initial cap prices of $173.82 per share, subject to certain adjustments. The Capped Calls covered, subject to anti-dilution adjustments, approximately 4.5 million shares of the Company’s common stock. The cost of $63.2 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. The Capped Calls expired upon the maturity of the Notes on May 1, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments —As of June 30, 2023 and March 31, 2023, the Company had purchase commitments of $489.1 million and $518.3 million, respectively, primarily related to data center, cloud and hosting services. 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. Legal Reserves and Typical Proceedings —The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. The Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Unless otherwise specifically disclosed in this note, the Company has determined that no provision for liability nor disclosure is required related to any claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings will have a material adverse effect on its financial position, results of operations, or cash flows. 401(k) Plan —The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. The Company is responsible for the administrative costs of the 401(k) plan and beginning on January 1, 2021, the Company has been making matching contributions to the 401(k) plan, up to a certain limit. Contributions to the 401(k) plan are discretionary. For the three months ended June 30, 2023 and 2022, the Company incurred expense of $2.7 million and $2.4 million, respectively, for matching contributions. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity The following table summarizes the Company’s stock option, restricted stock unit (“RSU”), and performance-based restricted stock unit (“PSU”) award activities for the three months ended June 30, 2023 (in thousands, except exercise price, contractual term and fair value information): Options Outstanding RSUs Outstanding PSUs Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value Number of Shares Weighted- Average Grant Date Fair Value Weighted- Aggregate Intrinsic Value Number of Shares Weighted- Average Grant Date Fair Value Weighted- Aggregate Intrinsic Value Outstanding - April 1, 2023 1,126 $ 64.43 5.2 $ 19,983 3,747 $ 60.46 2.2 $ 282,148 1,449 $ 49.43 1.8 $ 109,125 Granted — — 626 71.82 233 90.28 Exercised/vested (44) 61.96 586 (434) 60.97 (219) 83.71 Canceled/forfeited (12) 78.26 (422) 62.68 (12) 82.89 Outstanding - June 30, 2023 1,070 $ 64.37 4.2 $ 11,804 3,517 $ 62.15 2.1 $ 230,156 1,451 $ 50.54 1.7 $ 94,970 PSUs are contingent upon the achievement of pre-determined market and service conditions. The number of shares of common stock to be issued at vesting will range from 0% to 200% of the target number based on the Company’s total shareholder return (“TSR”) relative to the performance of peer companies for each measurement period, over a one-year, two-year cumulative, and three-year cumulative period. In February 2023, the Company made a one-time grant to certain of its named executive officers and certain other key executives of PSUs, which have a target achievement at a $100 stock price hurdle within two years of the grant date. The award has a minimum stock price hurdle of $85 to vest any award shares. Beyond the target vesting tranche at $100 per share, two further vesting tranches are possible at the achievement of $115 and $135 stock price hurdles, respectively. If these market conditions are not met but service conditions are met, the PSUs will not vest; however, any stock-based compensation expense recognized to date will not be reversed. The Company uses a Monte Carlo simulation model to determine the fair value of its PSUs and recognizes expense using the accelerated attribution method over the requisite service period. The PSUs presented in the table above were calculated based on 100% expected achievement. Employee Stock Purchase Plan — Offering periods under the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”) are generally six months long and begin on February 15th and August 15th of each year. For the three months ended June 30, 2023 and 2022, no shares of common stock were purchased under the ESPP. Stock-based compensation expense recognized related to the ESPP was $0.9 million and $1.3 million for the three months ended June 30, 2023 and 2022, respectively. Stock-Based Compensation Expense —Total stock-based compensation expense included in cost of revenue, research and development, sales and marketing, and general and administrative expenses for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended June 30, 2023 2022 Cost of revenue $ 1,201 $ 1,344 Research and development (1) 21,265 13,286 Sales and marketing 11,928 10,583 General and administrative 12,043 9,669 Total stock-based compensation expense $ 46,437 $ 34,882 (1) These expenses include $4.6 million of accelerated vesting resulting from the restructuring activities discussed in Note 11 below. As of June 30, 2023, unrecognized stock-based compensation cost related to outstanding unvested stock options was $1.7 million, which is expected to be recognized over a weighted-average period of approximately 0.7 years. As of June 30, 2023, unrecognized stock-based compensation cost related to outstanding unvested RSUs was $212.4 million, which is expected to be recognized over a weighted-average period of approximately 2.0 years. As of June 30, 2023, unrecognized stock-based compensation cost related to PSUs was $54.8 million, which is expected to be recognized over a weighted-average period of approximately 1.7 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are indefinitely reinvested. The Company recorded income tax expense of $2.8 million and $0.3 million for the three months ended June 30, 2023 and 2022, respectively. The income tax expense for the three months ended June 30, 2023 and 2022 is primarily related to foreign and U.S. state taxes. Based on the available evidence during the three months ended June 30, 2023, the Company believes it is not more-likely-than-not to realize tax benefits of U.S. and Japan losses incurred during the three months ended June 30, 2023. The primary difference between the effective tax rate and the statutory tax rate relates to the valuation allowance on the U.S. and Japan losses, foreign tax rate differences and state income taxes. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per ShareBasic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee share-based awards and warrants. Diluted net loss per share is computed giving effect to all potential dilutive common shares, including issuances of common stock upon exercise of stock options, purchases of shares under the Employee Stock Purchase Plan, and the vesting of restricted stock units and performance stock units. As the Company had net losses for each of the three months ended June 30, 2023 and 2022, all potential common shares were determined to be anti-dilutive, resulting in basic and diluted net loss per share being equal. The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended June 30, 2023 2022 Numerator: Net loss attributable to New Relic $ (37,431) $ (50,239) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 69,546 66,421 Net loss attributable to New Relic per share—basic and diluted $ (0.54) $ (0.76) The following outstanding options, unvested RSUs, unvested PSUs, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of June 30, 2023 2022 Options to purchase common stock 1,070 1,523 RSUs 3,517 4,502 PSUs 1,451 368 ESPP shares 95 128 Total 6,133 6,521 |
Restructuring
Restructuring | 3 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the first fiscal quarter of 2024, the Company initiated a restructuring plan focused on realigning resources with the Company’s business needs in driving the growth of its consumption business, completion of its transition to a consumption business model, and improving business efficiency. The restructuring plan primarily consisted of a reduction of global workforce. During the three months ended June 30, 2023, the Company incurred restructuring costs of $21.7 million, including $18.4 million related to employee wages and termination benefits, and $3.3 million in lease exit costs in connection with the March 2023 restructuring plan described below. There were no restructuring costs incurred during the three months ended June 30, 2022. In August 2022, a restructuring plan was implemented to realign the Company’s cost structure with its business needs to refocus on top priorities, and in March 2023, the Company implemented another restructuring plan to reduce the Company’s global real estate footprint in line with its Flex First philosophy. As a result of the March 2023 restructuring, the Company accrued $17.9 million in lease liabilities and $7.1 million in restructuring reserves for other lease exit costs as of March 31, 2023. The following table shows the Company’s restructuring charges for the three months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Severance and other employee costs Lease exit costs and accelerated depreciation Total Cost of Revenue $ 423 $ 637 $ 1,060 Research and Development 8,709 112 8,821 Sales and Marketing 7,212 573 7,785 General and administrative 2,054 1,937 3,991 Total $ 18,398 $ 3,259 $ 21,657 Restructuring accrual The following tables shows the activity in our restructuring accrual for the three months ended June 30, 2023 (in thousands): Total Accrued balance as of March 31, 2023 $ 7,067 Restructuring expenses related to severance (1) 13,808 Restructuring expenses related to other lease exit costs (2) 2,127 Payments of severance and other lease exit costs (3,523) Accrued balance as of June 30, 2023 $ 19,479 Included in other current liabilities $ 12,598 Included in other liabilities, non-current $ 6,881 (1) These expenses exclude $4.6 million of accelerated vesting related to the restructuring plan approved in the first fiscal quarter of 2024. (2) These expenses exclude the $1.9 million non-cash write-off of lease right of use assets and leasehold improvements, as well as a $0.7 million gain from the assignment of a lease related to the restructuring plan approved in March 2023. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 30, 2023, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Crewline Buyer, Inc., a Delaware corporation (“Parent”), and Crewline Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, Merger Sub will be merged with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary of Parent (the “Merger”). Parent and Merger Sub are subsidiaries of investment funds advised by Francisco Partners Management, L.P. (“FP”) and TPG Capital Management, L.P. (“TPG”), US-based private equity firms. Pursuant to the Merger Agreement, at the effective time of the Merger (the “Effective Time”), and as a result of the Merger, each share of common stock, par value $0.001 per share, of the Company (“Company Common Stock”) that is outstanding immediately prior to the Effective Time other than shares (i) held by the Company as treasury stock, (ii) owned by Parent or Merger Sub, (iii) owned by any direct or indirect wholly owned subsidiary of Parent or Merger Sub, (iv) that are Rollover Shares (as defined in the Merger Agreement), or (v) as to which statutory rights of appraisal have been properly and validly exercised, will be cancelled and extinguished and automatically converted into the right to receive cash in an amount equal to $87.00, without interest thereon, subject to any required withholding of taxes. The board of directors of the Company (the “Board”), with Lew Cirne (together with certain of his affiliates, (the “Rollover Stockholder”) recusing himself, has unanimously approved and declared to be in the best interest of the Company and its stockholders, the Merger Agreement and the transactions contemplated thereby, including the Merger, and resolved to recommend that the stockholders of the Company adopt the Merger Agreement. Assuming the satisfaction of the conditions set forth in the Merger Agreement, the Company expects the transactions contemplated thereby to close in late calendar year 2023 or early calendar year 2024. The stockholders of the Company will be asked to vote on the adoption of the Merger Agreement and the Merger at a special stockholder meeting that will be held on a date to be announced as promptly as reasonably practicable following the customary SEC review process. Consummation of the Merger is not subject to a financing condition, but is subject to customary closing conditions, including (i) approval of the Company’s stockholders, (ii) the expiration or earlier termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other approvals, clearances or expirations of waiting periods under other antitrust laws, (iii) approvals, clearances or expirations of waiting periods under foreign investment screening laws, (iv) absence of any order or injunction prohibiting the consummation of the Merger, (v) subject to customary materiality qualifiers, the accuracy of the representations and warranties contained in the Merger Agreement and compliance with the covenants contained in the Merger Agreement and (vi) no Company Material Adverse Effect (as defined in the Merger Agreement) having occurred since the date of the Merger Agreement that is continuing. The Merger Agreement contains customary representations, warranties and covenants, including, among others, covenants by the Company to conduct its businesses in the ordinary course between the execution and completion of the Merger Agreement, not to engage in certain kinds of transactions during such period (including the payment of dividends), to convene and hold a meeting of its stockholders to consider and vote upon the Merger, to cooperate with Parent in connection with obtaining financing for the transaction, to obtain regulatory consents, and, subject to certain customary exceptions, for its board of directors to recommend that its stockholders approve and adopt the Merger Agreement. The Merger Agreement also contains customary representations, warranties and covenants of Parent and Merger Sub, including a covenant to use reasonable best efforts to obtain the financing described below. The Merger Agreement contains a 45-day “go-shop” provision that allows the Company to, among other things, solicit, initiate, propose, induce, encourage or facilitate the making, submission or announcement of, or knowingly encourage, facilitate or assist, any proposal or Inquiry (as defined in the Merger Agreement) that constitutes, could constitute or is reasonably expected to lead to an Acquisition Proposal (as defined in the Merger Agreement). At the end of the go-shop period, the Company will cease such activities, and is subject to a customary “no-shop” provision that restricts the Company’s ability to, among other things, solicit Acquisition Proposals from third parties and to provide non-public information to, and engage in discussions or negotiations with, third parties regarding Acquisition Proposals after the go-shop period. The “no-shop” provision also allows the Company, under certain circumstances and in compliance with certain obligations set forth in the Merger Agreement, to provide non-public information to any person and its representatives that has made, renewed or delivered a bona fide Acquisition Proposal that either constitutes a Superior Proposal (as defined in the Merger Agreement) or is reasonably likely to lead to a Superior Proposal. Parent and Merger Sub have secured committed financing, consisting of a combination of equity financing to be provided by investment funds affiliated with FP and TPG on the terms and subject to the conditions set forth in equity commitment letters provided by such funds, Rollover Shares (as defined in the Merger Agreement) from the Rollover Stockholder and debt financing to be provided by certain lenders (collectively, the “Lenders”) on the terms and subject to the conditions set forth in a debt commitment letter. The obligations of the Lenders to provide debt financing under the debt commitment letter are subject to a number of customary conditions. The Merger Agreement contains certain termination rights for both the Company and Parent. If the Merger Agreement is terminated in connection with the Company entering into an alternative acquisition agreement in respect of a Superior Proposal entered into during the “go-shop” period, the termination fee payable by the Company to Parent will be $98 million. Upon termination of the Merger Agreement under specified circumstances, including with respect to the Company’s entry into an agreement with respect to a Superior Proposal other than described in the preceding sentence, the Board changing its recommendation or if the Company breaches its representations, warranties or covenants in a manner that would cause the related closing conditions to not be met, the Company will be required to pay Parent a termination fee of $196 million. A termination fee in the amount of $524 million will become payable by Parent in the event it fails to consummate the Merger after all conditions are met, if Parent breaches its representations, warranties or covenants in a manner that would cause the related closing conditions to not be met, or if either party terminates the Merger Agreement because the Merger has not been consummated by the Termination Date (described below), and at the time of such termination, the Company was otherwise entitled to terminate the Merger Agreement for either of the above reasons. Investment funds affiliated with FP and TPG have provided limited guarantees with respect to the payment of the termination fee payable by Parent in the event such termination fee becomes payable, as well as certain reimbursement obligations that may be owed by Parent pursuant to the Merger Agreement, subject to the terms and conditions set forth in the Merger Agreement and such limited guarantees. The Merger Agreement also provides that either party may specifically enforce the other party’s obligations under the Merger Agreement, provided that the Company may only cause Parent to close the transaction if certain conditions are satisfied, including the funding or availability of the debt financing. In addition to the foregoing termination rights, and subject to certain limitations, the Company or Parent may terminate the Merger Agreement if the Merger is not consummated by 11:59 p.m., Pacific Time, on January 30, 2024 (the “Termination Date”), provided that (x) if all of the conditions to closing other than the obtainment of the applicable approvals under Antitrust Laws or Required Investment Screening Laws (each as defined in the Merger Agreement) are satisfied on or prior to the Termination Date, then the Termination Date shall automatically be extended to 11:59 p.m., Pacific time, on April 30, 2024 and (y) if as of the Termination Date as extended by the foregoing clause (x) all of the conditions to closing of the Merger other than the obtainment of the applicable approvals under Antitrust Laws or Required Investment Screening Laws are satisfied, then the Termination Date shall automatically be extended to 11:59 p.m., Pacific time, on July 30, 2024. If the Merger is consummated, the Company Common Stock will be delisted from the New York Stock Exchange and deregistered under the Securities Exchange Act of 1934. In connection with the Merger, the Company expects to incur significant expenses, such as transaction, professional services, and other costs. An estimate of these expenses cannot be made at this time. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Business | Business —New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company provides an “all-in-one” observability platform that enables its customers to plan, build, deploy, and operate their critical digital infrastructure by harnessing the power of data. The Company’s observability platform combines metrics, events, logs, traces, and other telemetry data with our proprietary stack of analytical tools to rapidly generate actionable, fact-based insights. The Company’s customers use the New Relic platform to improve uptime, reliability, and operational efficiency, in order to optimize the digital experience for their customers as well as within their organizations. |
Fiscal Year | Fiscal Year —The Company’s fiscal year ends on March 31. References to fiscal 2024 refer to the fiscal year ending March 31, 2024. |
Basis of Presentation | Basis of Presentation —The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, wholly owned or otherwise, and have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. All significant intercompany balances and transactions have been eliminated in consolidation . Certain prior-period amounts have been reclassified to conform with current-period presentation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, as filed with the SEC on May 23, 2023 (the “Annual Report”). |
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. 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. |
Joint Venture (Tables)
Joint Venture (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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 periods indicated below (in thousands): Three Months Ended June 30, 2023 2022 Balance, beginning of period $ 23,105 $ 21,686 Net loss attributable to redeemable non-controlling interest (109) (146) Adjustment to redeemable non-controlling interest 4,218 (5,866) Balance, end of period $ 27,214 $ 15,674 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Information about financial assets measured at fair value on recurring basis | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of June 30, 2023 Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Total Cash and cash equivalents: Money market funds $ 173,445 $ — $ — $ 173,445 Short-term investments: Certificates of deposit — 5,998 — 5,998 Corporate notes and bonds — 65,596 — 65,596 U.S. treasury securities 144,691 — — 144,691 Total short-term investments 144,691 71,594 — 216,285 Restricted cash: Money market funds 5,805 — — 5,805 Total assets measured at fair value $ 323,941 $ 71,594 $ — $ 395,535 Fair Value Measurements as of March 31, 2023 Quoted prices in active markets for identical assets Significant observable inputs Significant unobservable inputs Total Cash and cash equivalents: Money market funds $ 532,173 $ — $ — $ 532,173 Short-term investments: Certificates of deposit — 5,961 — 5,961 Commercial paper — 2,990 — 2,990 Corporate notes and bonds — 65,378 — 65,378 U.S. treasury securities 179,756 — — 179,756 Total short-term investments 179,756 74,329 — 254,085 Restricted cash: Money market funds 5,795 — — 5,795 Total assets measured at fair value $ 717,724 $ 74,329 $ — $ 792,053 |
Available-for-sale securities | The following table presents the Company’s available-for-sale securities as of June 30, 2023 (in thousands): Available-for-sale Investments as of June 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments: Certificates of deposit $ 6,000 $ — $ (2) $ 5,998 Corporate notes and bonds 67,394 — (1,798) 65,596 U.S. treasury securities 147,774 — (3,083) 144,691 Total available-for-sale investments $ 221,168 $ — $ (4,883) $ 216,285 The following table presents the Company’s available-for-sale securities as of March 31, 2023 (in thousands): Available-for-sale Investments as of March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Short-term investments: Certificates of deposit $ 6,000 $ — $ (39) $ 5,961 Commercial paper 2,994 — (4) 2,990 Corporate notes and bonds 67,571 — (2,193) 65,378 U.S. treasury securities 183,244 — (3,488) 179,756 Total available-for-sale investments $ 259,809 $ — $ (5,724) $ 254,085 |
Classification of available-for-sale short-term investments by contractual maturities | The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of June 30, 2023 and March 31, 2023 (in thousands): June 30, 2023 March 31, 2023 Due within one year $ 179,676 $ 165,143 Due after one year and within three years 36,609 88,942 Total $ 216,285 $ 254,085 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenue by category (in thousands): Three Months Ended June 30, 2023 2022 Subscription $ 28,720 $ 63,080 Consumption 213,908 153,379 Total revenue $ 242,628 $ 216,459 The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Three Months Ended June 30, 2023 2022 United States $ 151,171 $ 143,460 Europe, the Middle East, and Africa (“EMEA”) 44,000 34,716 Asia Pacific and Japan (“APAC”) 28,897 23,126 Other 18,560 15,157 Total revenue $ 242,628 $ 216,459 |
Schedule of Changes to Deferred Revenue | . |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): June 30, 2023 March 31, 2023 Computers, software, and equipment $ 13,117 $ 13,301 Site operation equipment 49,119 52,672 Furniture and fixtures 2,588 2,589 Leasehold improvements 21,885 21,877 Capitalized software development costs 94,556 90,075 Total property and equipment 181,265 180,514 Less: accumulated depreciation and amortization (133,124) (132,005) Total property and equipment, net $ 48,141 $ 48,509 |
0.5% Convertible Senior Notes_2
0.5% Convertible Senior Notes and Capped Call (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The net carrying amount of the Notes was as follows (in thousands): June 30, 2023 March 31, 2023 Principal $ — $ 500,250 Unamortized issuance costs — (206) Net carrying amount $ — $ 500,044 |
Summary of Interest Expense | Interest expense related to the Notes was as follows (in thousands): Three Months Ended June 30, 2023 2022 Amortization of issuance costs $ 206 $ 593 Contractual interest expense 215 624 Total interest expense $ 421 $ 1,217 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Stock Option and RSU and PSU Award Activities | The following table summarizes the Company’s stock option, restricted stock unit (“RSU”), and performance-based restricted stock unit (“PSU”) award activities for the three months ended June 30, 2023 (in thousands, except exercise price, contractual term and fair value information): Options Outstanding RSUs Outstanding PSUs Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value Number of Shares Weighted- Average Grant Date Fair Value Weighted- Aggregate Intrinsic Value Number of Shares Weighted- Average Grant Date Fair Value Weighted- Aggregate Intrinsic Value Outstanding - April 1, 2023 1,126 $ 64.43 5.2 $ 19,983 3,747 $ 60.46 2.2 $ 282,148 1,449 $ 49.43 1.8 $ 109,125 Granted — — 626 71.82 233 90.28 Exercised/vested (44) 61.96 586 (434) 60.97 (219) 83.71 Canceled/forfeited (12) 78.26 (422) 62.68 (12) 82.89 Outstanding - June 30, 2023 1,070 $ 64.37 4.2 $ 11,804 3,517 $ 62.15 2.1 $ 230,156 1,451 $ 50.54 1.7 $ 94,970 |
Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses | Stock-Based Compensation Expense —Total stock-based compensation expense included in cost of revenue, research and development, sales and marketing, and general and administrative expenses for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended June 30, 2023 2022 Cost of revenue $ 1,201 $ 1,344 Research and development (1) 21,265 13,286 Sales and marketing 11,928 10,583 General and administrative 12,043 9,669 Total stock-based compensation expense $ 46,437 $ 34,882 (1) These expenses include $4.6 million of accelerated vesting resulting from the restructuring activities discussed in Note 11 below. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Net Loss Per Share, Basic and Diluted | The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended June 30, 2023 2022 Numerator: Net loss attributable to New Relic $ (37,431) $ (50,239) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 69,546 66,421 Net loss attributable to New Relic per share—basic and diluted $ (0.54) $ (0.76) |
Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents | The following outstanding options, unvested RSUs, unvested PSUs, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of June 30, 2023 2022 Options to purchase common stock 1,070 1,523 RSUs 3,517 4,502 PSUs 1,451 368 ESPP shares 95 128 Total 6,133 6,521 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table shows the Company’s restructuring charges for the three months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Severance and other employee costs Lease exit costs and accelerated depreciation Total Cost of Revenue $ 423 $ 637 $ 1,060 Research and Development 8,709 112 8,821 Sales and Marketing 7,212 573 7,785 General and administrative 2,054 1,937 3,991 Total $ 18,398 $ 3,259 $ 21,657 |
Schedule of Restructuring Reserve by Type of Cost | The following tables shows the activity in our restructuring accrual for the three months ended June 30, 2023 (in thousands): Total Accrued balance as of March 31, 2023 $ 7,067 Restructuring expenses related to severance (1) 13,808 Restructuring expenses related to other lease exit costs (2) 2,127 Payments of severance and other lease exit costs (3,523) Accrued balance as of June 30, 2023 $ 19,479 Included in other current liabilities $ 12,598 Included in other liabilities, non-current $ 6,881 (1) These expenses exclude $4.6 million of accelerated vesting related to the restructuring plan approved in the first fiscal quarter of 2024. (2) These expenses exclude the $1.9 million non-cash write-off of lease right of use assets and leasehold improvements, as well as a $0.7 million gain from the assignment of a lease related to the restructuring plan approved in March 2023. |
Joint Venture - Narrative (Deta
Joint Venture - Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Redemption value of redeemable non-controlling interest | $ 4.2 |
New Relic K.K | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage, parent | 60% |
Joint Venture - Schedule of Red
Joint Venture - Schedule of Redeemable Non-Controlling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Balance, beginning of period | $ 23,105 | $ 21,686 |
Net loss attributable to redeemable non-controlling interest | (109) | (146) |
Adjustment to redeemable non-controlling interest | 4,218 | (5,866) |
Balance, end of period | $ 27,214 | $ 15,674 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about financial assets measured at fair value on recurring basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 395,535 | $ 792,053 |
Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 216,285 | 254,085 |
Money market funds | Cash and cash equivalents: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 173,445 | 532,173 |
Money market funds | Restricted cash: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,805 | 5,795 |
Certificates of deposit | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,998 | 5,961 |
Commercial paper | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 2,990 | |
Corporate notes and bonds | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 65,596 | 65,378 |
U.S. treasury securities | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 144,691 | 179,756 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 323,941 | 717,724 |
Quoted prices in active markets for identical assets (Level 1) | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 144,691 | 179,756 |
Quoted prices in active markets for identical assets (Level 1) | Money market funds | Cash and cash equivalents: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 173,445 | 532,173 |
Quoted prices in active markets for identical assets (Level 1) | Money market funds | Restricted cash: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,805 | 5,795 |
Quoted prices in active markets for identical assets (Level 1) | Certificates of deposit | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Commercial paper | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Quoted prices in active markets for identical assets (Level 1) | Corporate notes and bonds | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | U.S. treasury securities | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 144,691 | 179,756 |
Significant observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 71,594 | 74,329 |
Significant observable inputs (Level 2) | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 71,594 | 74,329 |
Significant observable inputs (Level 2) | Money market funds | Cash and cash equivalents: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant observable inputs (Level 2) | Money market funds | Restricted cash: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant observable inputs (Level 2) | Certificates of deposit | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,998 | 5,961 |
Significant observable inputs (Level 2) | Commercial paper | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 2,990 | |
Significant observable inputs (Level 2) | Corporate notes and bonds | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 65,596 | 65,378 |
Significant observable inputs (Level 2) | U.S. treasury securities | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | Money market funds | Cash and cash equivalents: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | Money market funds | Restricted cash: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | Certificates of deposit | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | Commercial paper | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Significant unobservable inputs (Level 3) | Corporate notes and bonds | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | U.S. treasury securities | Short-term investments: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 0 | $ 0 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 221,168 | $ 259,809 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (4,883) | (5,724) |
Total | 216,285 | 254,085 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,000 | 6,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2) | (39) |
Total | 5,998 | 5,961 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,994 | |
Unrealized Gains | 0 | |
Unrealized Losses | (4) | |
Total | 2,990 | |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 67,394 | 67,571 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1,798) | (2,193) |
Total | 65,596 | 65,378 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 147,774 | 183,244 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3,083) | (3,488) |
Total | $ 144,691 | $ 179,756 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) | Jun. 30, 2023 | Mar. 31, 2023 | May 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized loss position of securities for more than 12 months | $ 4,900,000 | $ 4,600,000 | |
Convertible Debt | Convertible Senior Notes Due 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate | 0.50% | 0.50% | |
Long-term debt | $ 0 | 500,044,000 | |
Convertible Debt | Convertible Senior Notes Due 2023 | Significant observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of long-term debt | $ 449,400,000 |
Fair Value Measurements - Class
Fair Value Measurements - Classification of available-for-sale short-term investments by contractual maturities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Total | $ 216,285 | $ 254,085 |
Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due within one year | 179,676 | 165,143 |
Due after one year and within three years | 36,609 | 88,942 |
Total | $ 216,285 | $ 254,085 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 242,628 | $ 216,459 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 151,171 | 143,460 |
Europe, the Middle East, and Africa (“EMEA”) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 44,000 | 34,716 |
Asia Pacific and Japan (“APAC”) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 28,897 | 23,126 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18,560 | 15,157 |
Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 28,720 | 63,080 |
Consumption | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 213,908 | $ 153,379 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue from performance obligations satisfied in prior periods | $ 1.5 | $ 6.8 |
Revenue, remaining performance obligation, amount | $ 738.9 | |
Remaining performance obligation in first year, percentage | 70% | |
Remaining performance obligation in first two years, percentage | 91% |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 181,265 | $ 180,514 |
Less: accumulated depreciation and amortization | (133,124) | (132,005) |
Total property and equipment, net | 48,141 | 48,509 |
Computers, software, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,117 | 13,301 |
Site operation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 49,119 | 52,672 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,588 | 2,589 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 21,885 | 21,877 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 94,556 | $ 90,075 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 4.8 | $ 8 |
0.5% Convertible Senior Notes_3
0.5% Convertible Senior Notes and Capped Call - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | |
May 31, 2018 USD ($) $ / shares shares | Jun. 30, 2023 | |
Convertible Senior Notes Due 2023 | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 0.50% | 0.50% |
Debt instrument face amount | $ | $ 500,250,000 | |
Convertible debt, conversion ratio | 0.0090244 | |
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 110.81 | |
Effective interest rate | 0.98% | |
Convertible Senior Notes Due 2023, Over-Allotment Option | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ | $ 65,250,000 | |
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 | |
Capped Calls | Additional Paid-In Capital | ||
Debt Instrument [Line Items] | ||
Cost incurred related to capped calls | $ | $ 63,200,000 |
0.5% Convertible Senior Notes_4
0.5% Convertible Senior Notes and Capped Call - Schedule of Liability Component of Convertible Debt (Details) - Convertible Senior Notes Due 2023 - Convertible Debt - USD ($) | Jun. 30, 2023 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal | $ 0 | $ 500,250,000 |
Unamortized issuance costs | 0 | (206,000) |
Net carrying amount | $ 0 | $ 500,044,000 |
0.5% Convertible Senior Notes_5
0.5% Convertible Senior Notes and Capped Call - Schedule of Interest Expense (Details) - Convertible Senior Notes Due 2023 - Convertible Debt - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||
Amortization of issuance costs | $ 206 | $ 593 |
Contractual interest expense | 215 | 624 |
Total interest expense | $ 421 | $ 1,217 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Purchase commitments | $ 489.1 | $ 518.3 | |
Discretionary employer contribution expense | $ 2.7 | $ 2.4 |
Common Stock and Stockholders_3
Common Stock and Stockholders' Equity - Schedule of Stock Option, RSU, and PSU Award Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Mar. 31, 2023 | |
Number of Shares | ||
Beginning balance (in shares) | 1,126 | |
Stock options granted (in shares) | 0 | |
Stock options exercised (in shares) | (44) | |
Stock options canceled/forfeited (in shares) | (12) | |
Ending balance (in shares) | 1,070 | 1,126 |
Weighted- Average Exercise Price | ||
Beginning balance (in usd per share) | $ 64.43 | |
Stock options granted (in usd per share) | 0 | |
Stock options exercised (in usd per share) | 61.96 | |
Stock options canceled/forfeited (in usd per share) | 78.26 | |
Ending balance (in usd per share) | $ 64.37 | $ 64.43 |
Weighted- Average Remaining Contractual Term (in years) | ||
Weighted- Average Remaining Contractual Term (in years) | 4 years 2 months 12 days | 5 years 2 months 12 days |
Aggregate Intrinsic Value | ||
Beginning aggregate intrinsic value | $ 19,983 | |
Stock options exercised | 586 | |
Ending aggregate intrinsic value | $ 11,804 | $ 19,983 |
RSUs | ||
Number of Shares | ||
Beginning balance (in shares) | 3,747 | |
RSUs and PSUs granted (in shares) | 626 | |
RSUs and PSUs vested (in shares) | (434) | |
RSUs and PSUs canceled/forfeited (in shares) | (422) | |
Ending balance (in shares) | 3,517 | 3,747 |
Weighted- Average Grant Date Fair Value | ||
Beginning balance (in usd per share) | $ 60.46 | |
RSUs and PSUs granted (in usd per share) | 71.82 | |
RSUs and PSUs vested (in usd per share) | 60.97 | |
RSUs and PSUs canceled/forfeited (in usd per share) | 62.68 | |
Ending balance (in usd per share) | $ 62.15 | $ 60.46 |
Weighted- Average Remaining Contractual Term (in years) | ||
Weighted Average Remaining Contractual Terms (in years) | 2 years 1 month 6 days | 2 years 2 months 12 days |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding | $ 230,156 | $ 282,148 |
PSUs | ||
Number of Shares | ||
Beginning balance (in shares) | 1,449 | |
RSUs and PSUs granted (in shares) | 233 | |
RSUs and PSUs vested (in shares) | (219) | |
RSUs and PSUs canceled/forfeited (in shares) | (12) | |
Ending balance (in shares) | 1,451 | 1,449 |
Weighted- Average Grant Date Fair Value | ||
Beginning balance (in usd per share) | $ 49.43 | |
RSUs and PSUs granted (in usd per share) | 90.28 | |
RSUs and PSUs vested (in usd per share) | 83.71 | |
RSUs and PSUs canceled/forfeited (in usd per share) | 82.89 | |
Ending balance (in usd per share) | $ 50.54 | $ 49.43 |
Weighted- Average Remaining Contractual Term (in years) | ||
Weighted Average Remaining Contractual Terms (in years) | 1 year 8 months 12 days | 1 year 9 months 18 days |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding | $ 94,970 | $ 109,125 |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Narrative (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | |
Class of Stock [Line Items] | |||
Stock-based compensation expense | $ 46,437 | $ 34,882 | |
Unrecognized stock-based compensation cost | $ 1,700 | ||
Stock-based compensation cost expected to be recognized over weighted-average period | 8 months 12 days | ||
PSUs | |||
Class of Stock [Line Items] | |||
Target achievement minimum stock price hurdle | $ 85 | ||
Percentage of expected achievement of share-based payment arrangement | 100% | ||
Stock-based compensation cost expected to be recognized over weighted-average period | 1 year 8 months 12 days | ||
Unrecognized stock-based compensation cost related to outstanding unvested stock awards | $ 54,800 | ||
PSUs | Share-based Payment Arrangement, One-Year | |||
Class of Stock [Line Items] | |||
Measurement period | 1 year | ||
Target achievement stock price hurdle | $ 100 | ||
PSUs | Share-based Payment Arrangement, Two-Year | |||
Class of Stock [Line Items] | |||
Measurement period | 2 years | ||
Target achievement stock price hurdle | $ 115 | ||
PSUs | Share-based Payment Arrangement, Three-Year | |||
Class of Stock [Line Items] | |||
Measurement period | 3 years | ||
Target achievement stock price hurdle | $ 135 | ||
PSUs | Minimum | |||
Class of Stock [Line Items] | |||
Percentage of total shareholder return | 0% | ||
PSUs | Maximum | |||
Class of Stock [Line Items] | |||
Percentage of total shareholder return | 200% | ||
RSUs | |||
Class of Stock [Line Items] | |||
Stock-based compensation cost expected to be recognized over weighted-average period | 2 years | ||
Unrecognized stock-based compensation cost related to outstanding unvested stock awards | $ 212,400 | ||
ESPP shares | |||
Class of Stock [Line Items] | |||
Offering period | 6 months | ||
Shares purchased under plan (in shares) | 0 | 0 | |
Stock-based compensation expense | $ 900 | $ 1,300 |
Common Stock and Stockholders_5
Common Stock and Stockholders' Equity - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 46,437 | $ 34,882 |
Acceleration of share-based payment expense | 4,600 | 4,600 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,201 | 1,344 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 21,265 | 13,286 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 11,928 | 10,583 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 12,043 | $ 9,669 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 2,830 | $ 267 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Net Loss Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||
Net loss attributable to New Relic | $ (37,431) | $ (50,239) |
Denominator: | ||
Weighted-average shares used to compute net loss per share, basic (in shares) | 69,546 | 66,421 |
Weighted-average shares used to compute net loss per share, diluted (in shares) | 69,546 | 66,421 |
Net loss attributable to New Relic per share, basic (in usd per share) | $ (0.54) | $ (0.76) |
Net loss attributable to New Relic per share, diluted (in usd per share) | $ (0.54) | $ (0.76) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents (Detail) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 6,133 | 6,521 |
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) | 1,070 | 1,523 |
RSUs | ||
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) | 3,517 | 4,502 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 1,451 | 368 |
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) | 95 | 128 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 21,657,000 | $ 0 | |
Restructuring reserve | 19,479,000 | $ 7,067,000 | |
2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating lease liabilities | $ 17,900,000 | ||
Severance and other employee costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 18,398,000 | ||
Lease exit costs and accelerated depreciation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 3,259,000 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Charges (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 21,657,000 | $ 0 |
Cost of revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,060,000 | |
Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 8,821,000 | |
Sales and Marketing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 7,785,000 | |
General and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,991,000 | |
Severance and other employee costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 18,398,000 | |
Severance and other employee costs | Cost of revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 423,000 | |
Severance and other employee costs | Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 8,709,000 | |
Severance and other employee costs | Sales and Marketing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 7,212,000 | |
Severance and other employee costs | General and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,054,000 | |
Lease exit costs and accelerated depreciation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,259,000 | |
Lease exit costs and accelerated depreciation | Cost of revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 637,000 | |
Lease exit costs and accelerated depreciation | Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 112,000 | |
Lease exit costs and accelerated depreciation | Sales and Marketing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 573,000 | |
Lease exit costs and accelerated depreciation | General and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,937,000 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring Accrual (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||
#REF! | $ 7,067,000 | |
Restructuring charges | 21,657,000 | $ 0 |
Payments of severance and other lease exit costs | (3,523,000) | |
#REF! | 19,479,000 | |
Included in other current liabilities | 12,598,000 | |
Included in other liabilities, non-current | 6,881,000 | |
Acceleration of share-based payment expense | 4,600,000 | $ 4,600,000 |
2023 Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Acceleration of share-based payment expense | 4,600,000 | |
Loss on facilities exit | 1,900,000 | |
Gain from assignment of lease | (700,000) | |
Employee severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 13,808,000 | |
Contract Termination | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 2,127,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 |
Subsequent Event [Line Items] | |||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in usd per share) | $ 0.001 | ||
Crewline Buyer, Inc. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash paid per acquiree share (in dollars per share) | $ 87 | ||
Go-shop provision, duration | 45 days | ||
Alternative acquisition agreement, termination fee payable | $ 98 | ||
Business combination, agreement conditions unmet, termination fee payable | 196 | ||
Failure to consummate merger, termination fee payable | $ 524 |