COVER
COVER - shares | 3 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40508 | |
Entity Registrant Name | Doximity, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-2485512 | |
Entity Address, Address Line One | 500 3rd St. | |
Entity Address, Address Line Two | Suite 510 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 650 | |
Local Phone Number | 549-4330 | |
Title of 12(b) Security | Class A common stock, $0.001 par value per share | |
Trading Symbol | DOCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001516513 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 125,165,430 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 60,495,170 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 111,442 | $ 96,785 |
Marketable securities | 639,046 | 666,115 |
Accounts receivable, net of allowance for doubtful accounts of $1,597 and $1,893 at June 30, 2024 and March 31, 2024, respectively | 120,910 | 101,332 |
Prepaid expenses and other current assets | 37,068 | 48,709 |
Total current assets | 908,466 | 912,941 |
Property and equipment, net | 12,869 | 12,318 |
Deferred income tax assets | 44,742 | 45,068 |
Operating lease right-of-use assets | 11,852 | 12,332 |
Intangible assets, net | 26,256 | 27,317 |
Goodwill | 67,940 | 67,940 |
Other assets | 1,333 | 1,458 |
Total assets | 1,073,458 | 1,079,374 |
Current liabilities: | ||
Accounts payable | 1,656 | 2,253 |
Accrued expenses and other current liabilities | 28,488 | 43,703 |
Deferred revenue, current | 102,943 | 99,145 |
Operating lease liabilities, current | 2,190 | 2,149 |
Total current liabilities | 135,277 | 147,250 |
Deferred revenue, non-current | 116 | 211 |
Operating lease liabilities, non-current | 11,841 | 12,397 |
Contingent earn-out consideration liability, non-current | 5,349 | 10,895 |
Other liabilities, non-current | 7,295 | 7,224 |
Total liabilities | 159,878 | 177,977 |
Commitments and contingencies (Note 11) | ||
Stockholders' Equity | ||
Preferred stock, $0.001 par value; 100,000 shares authorized as of June 30, 2024 and March 31, 2024, respectively; zero shares issued and outstanding as of June 30, 2024 and March 31, 2024, respectively | 0 | 0 |
Class A and Class B common stock, $0.001 par value; 1,500,000 shares authorized as of June 30, 2024 and March 31, 2024, respectively; 185,704 and 186,562 shares issued and outstanding as of June 30, 2024 and March 31, 2024, respectively | 186 | 187 |
Additional paid-in capital | 841,470 | 823,885 |
Accumulated other comprehensive loss | (1,008) | (2,664) |
Retained earnings | 72,932 | 79,989 |
Total stockholders’ equity | 913,580 | 901,397 |
Total liabilities and stockholders’ equity | $ 1,073,458 | $ 1,079,374 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,597 | $ 1,893 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, issued (in shares) | 185,704,000 | 186,562,000 |
Common stock, outstanding (in shares) | 185,704,000 | 186,562,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 126,676 | $ 108,469 |
Cost of revenue | 13,550 | 13,153 |
Gross profit | 113,126 | 95,316 |
Operating expenses: | ||
Research and development | 22,574 | 21,931 |
Sales and marketing | 35,244 | 34,455 |
General and administrative | 9,255 | 9,247 |
Total operating expenses | 67,073 | 65,633 |
Income from operations | 46,053 | 29,683 |
Other income, net | 7,116 | 4,839 |
Income before income taxes | 53,169 | 34,522 |
Provision for income taxes | 11,792 | 6,116 |
Net income | $ 41,377 | $ 28,406 |
Net income per share attributable to Class A and Class B common stockholders: | ||
Basic (in dollars per share) | $ 0.22 | $ 0.15 |
Diluted (in dollars per share) | $ 0.21 | $ 0.13 |
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders: | ||
Basic (in shares) | 185,610 | 194,521 |
Diluted (in shares) | 199,224 | 212,355 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 41,377 | $ 28,406 |
Other comprehensive income | ||
Change in unrealized gain on available-for-sale-securities, net of tax provision of $557 and $590, respectively | 1,656 | 1,747 |
Comprehensive income | $ 43,033 | $ 30,153 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Change in unrealized loss on available-for-sale-securities, tax benefit (provision) | $ (557) | $ (590) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Mar. 31, 2023 | 193,941 | ||||
Beginning balance at Mar. 31, 2023 | $ 966,116 | $ 194 | $ 762,150 | $ (14,083) | $ 217,855 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 12,959 | 12,959 | |||
Exercise of stock options (in shares) | 1,251 | ||||
Exercise of stock options | 3,293 | $ 1 | 3,292 | ||
Vesting of restricted stock units (in shares) | 121 | ||||
Tax withholding on shares under stock-based compensation awards | (1,964) | (1,964) | |||
Repurchase and retirement of common stock, including excise tax (in shares) | (664) | ||||
Repurchase and retirement of common stock, including excise tax | (21,105) | (21,105) | |||
Common stock warrant expense | 1,335 | 1,335 | |||
Other comprehensive income | 1,747 | 1,747 | |||
Net income | 28,406 | 28,406 | |||
Ending balance (in shares) at Jun. 30, 2023 | 194,649 | ||||
Ending balance at Jun. 30, 2023 | 990,787 | $ 195 | 777,772 | (12,336) | 225,156 |
Beginning balance (in shares) at Mar. 31, 2024 | 186,562 | ||||
Beginning balance at Mar. 31, 2024 | 901,397 | $ 187 | 823,885 | (2,664) | 79,989 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | $ 16,097 | 16,097 | |||
Exercise of stock options (in shares) | 784 | 784 | |||
Exercise of stock options | $ 2,548 | $ 1 | 2,547 | ||
Vesting of restricted stock units (in shares) | 211 | ||||
Tax withholding on shares under stock-based compensation awards | (2,394) | (2,394) | |||
Repurchase and retirement of common stock, including excise tax (in shares) | (1,853) | ||||
Repurchase and retirement of common stock, including excise tax | (48,436) | $ (2) | (48,434) | ||
Common stock warrant expense | 1,335 | 1,335 | |||
Other comprehensive income | 1,656 | 1,656 | |||
Net income | 41,377 | 41,377 | |||
Ending balance (in shares) at Jun. 30, 2024 | 185,704 | ||||
Ending balance at Jun. 30, 2024 | $ 913,580 | $ 186 | $ 841,470 | $ (1,008) | $ 72,932 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income | $ 41,377 | $ 28,406 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,562 | 2,604 |
Stock-based compensation, net of amounts capitalized | 17,090 | 14,001 |
Non-cash lease expense | 481 | 537 |
Accretion of discount on marketable securities, net | (2,360) | (299) |
Net loss on sale of marketable securities | 0 | 273 |
Amortization of deferred contract costs | 2,726 | 2,667 |
Change in fair value of contingent earn-out consideration liability | 202 | 269 |
Other | (738) | (421) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (19,372) | 14,032 |
Prepaid expenses and other assets | 10,460 | 2,589 |
Deferred contract costs | (1,431) | (1,210) |
Accounts payable, accrued expenses and other liabilities | (12,942) | 677 |
Deferred revenue | 3,704 | (6,922) |
Operating lease liabilities | (516) | (3) |
Net cash provided by operating activities | 41,243 | 57,200 |
Cash flows from investing activities | ||
Purchases of property and equipment | 0 | (70) |
Internal-use software development costs | (1,704) | (1,494) |
Purchases of marketable securities | (170,413) | (35,284) |
Maturities of marketable securities | 202,058 | 116,649 |
Sales of marketable securities | 0 | 37,525 |
Net cash provided by investing activities | 29,941 | 117,326 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock upon exercise of stock options | 2,551 | 3,285 |
Taxes paid related to net share settlement of equity awards | (2,394) | (1,964) |
Repurchase of common stock | (51,214) | (21,755) |
Payment of contingent consideration related to a business combination | (5,470) | (5,390) |
Net cash used in financing activities | (56,527) | (25,824) |
Net increase in cash and cash equivalents | 14,657 | 148,702 |
Cash and cash equivalents, beginning of period | 96,785 | 158,027 |
Cash and cash equivalents, end of period | 111,442 | 306,729 |
Supplemental disclosures of cash flow information | ||
Cash paid for taxes, net of refunds | 12,907 | 0 |
Non-cash financing and investing activities | ||
Share repurchases included in accrued expenses | 1,002 | 99 |
Excise tax payable on share repurchases | $ 1,713 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Doximity, Inc. (the “Company”) was incorporated in the state of Delaware in April 2010 as 3MD Communications, Inc. and is headquartered in San Francisco, California. The Company subsequently changed its name to Doximity, Inc. in June 2010. The Company provides an online platform, which enables physicians and other healthcare professionals to collaborate with their colleagues, stay up to date with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits. The Company’s customers primarily include pharmaceutical companies and health systems that connect with healthcare professionals through the Company’s digital Marketing and Hiring Solutions. Marketing Solutions provide customers with the ability to share tailored content on the network. Hiring Solutions enable customers to identify, connect with, and hire from the network of both active and passive potential medical professional candidates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies There have been no material changes to the significant accounting policies of the Company during the three months ended June 30, 2024 as compared to those described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and filed with the SEC on May 23, 2024. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024. The accompanying condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, stockholders’ equity, and cash flows. The results of operations for the three months ended June 30, 2024, shown in this report are not necessarily indicative of the results to be expected for the full year ending March 31, 2025. Fiscal Year The Company’s fiscal year ends on March 31 st . Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts stated in the condensed consolidated financial statements and accompanying notes. These judgments, estimates, and assumptions are used for, but not limited to, revenue recognition, the fair values of acquired intangible assets and goodwill, the useful lives of long-lived assets, fair value of contingent earn-out consideration, and deferred income taxes. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage risk exposure, the Company invests cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Company places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any. Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers to which the Company makes substantial sales. No customer represented 10% or more of revenue for the three months ended June 30, 2024 and 2023. The Company’s significant customers that represented 10% or more of accounts receivable, net for the periods presented were as follows: Accounts Receivable, Net June 30, 2024 March 31, 2024 Customer A 14 % * Customer B 14 % 15 % _______________ * Less than 10% For the purpose of assessing the concentration of credit risk for significant customers, the Company defines a customer as an entity that purchases the Company’s services directly or indirectly through marketing agencies. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for the Company for its fiscal year beginning April 1, 2024, and for interim periods within the fiscal year beginning April 1, 2025, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s revenue is primarily derived from the sale of subscriptions for the following solutions: • Marketing Solutions : Hosting of customer-sponsored content on the Doximity platform and providing access to the Company’s professional database of healthcare professionals for referral or marketing purposes during the subscription period. • Hiring Solutions : Providing customers access to the Company’s professional tools where recruiters can access the Company’s database of healthcare professionals, allowing customers to send messages for talent sourcing and to share job postings during the subscription period. The Company recognizes revenue through the following five steps: 1) Identify the contract with a customer The Company considers the terms and conditions of its contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined that the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, the customer’s credit and financial information. Contractual terms for Marketing Solutions contracts are generally 12 months or less. Customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones. Certain Marketing Solutions contracts are cancelable with a customary notice period. The Company does not refund customer payments, and customers are responsible for amounts invoiced where payment was not made upon cancellation. The contractual term for Hiring Solutions contracts is generally 12 months. Hiring Solutions contracts are noncancelable and customers are billed in annual, quarterly, or monthly installments in advance of the service period. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. Marketing Solutions customers may purchase a subscription for a specific module to be used over a defined period of time. These customers may purchase more than one module with either the same or different subscription periods. Modules are the core building blocks of the customers’ marketing plan and can be broadly categorized as Awareness, Interactivity, and Peer. As an example, the Company’s Awareness modules may include a sponsored article, short animated videos or other short-form content that is presented to the targeted member. Each module targets a consistent number of Doximity members per month for the duration of the subscription period. The Company treats each subscription to a specific module as a distinct performance obligation because each module is capable of being distinct as the customer can benefit from the subscription to each module on their own and each subscription can be sold standalone. Furthermore, the subscriptions to individual modules are distinct in the context of the contract as (1) the Company is not integrating the services with other services promised in the contract into a bundle of services that represent a combined output, (2) the subscriptions to specific modules do not significantly modify or customize the subscription to another module, and (3) the specific modules are not highly interdependent or highly interrelated. The subscription to each module is treated as a series of distinct performance obligations because it is distinct and substantially the same, satisfied over time, and has the same measure of progress. Marketing Solutions customers may also purchase integrated subscriptions for a fixed subscription fee that are not tied to a single module but allow customers to utilize any combination of modules during the subscription period, subject to limits on the total number of modules launched in a given period of time, active at any given time, and members targeted. These represent stand-ready obligations in that the delivery of the underlying sponsored content is within the control of the customer and the extent of use in any given period does not diminish the remaining services. Subscriptions to Hiring Solutions provide customers access to the platform to place targeted job postings and send a fixed number of monthly messages. Each subscription is treated as a series of distinct performance obligations that are satisfied over time. 3) Determine the transaction price The transaction price is determined based on the consideration the Company expects to be entitled to in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. The Company may generate sales through the use of third-party media agencies that are authorized to enter into contracts on behalf of an end customer. The Company acts as the principal in these transactions since it maintains control prior to transferring the service to the customer and is primarily responsible for the fulfillment that occurs through the Company’s platform. The Company records revenue for the amount to which it is entitled from the third-party media agencies as the Company does not know and expects not to know the price charged by the third-party media agencies to its customers. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative stand-alone selling price (“SSP”). The determination of a SSP for each distinct performance obligation requires judgment. The Company determines SSP for performance obligations based on historical arrangements sold on a standalone basis. To the extent historical sales are not available or do not provide sufficient evidence, the Company estimates the SSP by taking into account overall pricing objectives, which take into consideration market conditions and customer-specific factors, including a review of internal discounting tables, the type of services being sold, and other factors. The Company believes the use of its estimation approach and allocation of the transaction price on a relative SSP basis to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606. 5) Recognize revenue when or as the Company satisfies a performance obligation Revenue is recognized when or as control of the promised goods or service is transferred to the customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. Subscriptions represent a series of distinct goods or services because the performance obligations are satisfied over time as customers simultaneously receive and consume the benefits related to the services as the Company performs. In the case of module specific subscriptions, a consistent level of service is provided during each monthly period the sponsored content is available on the Company’s platform. The Company commences revenue recognition when the first content is launched on the platform for the initial monthly period and revenue is recognized over time as each subsequent content period is delivered. The Company’s obligation for its integrated subscriptions is to stand-ready throughout the subscription period; therefore, the Company considers an output method of time to measure progress towards satisfaction of its obligations, with revenue commencing upon the beginning of the subscription period. The Company treats Hiring Solutions subscriptions as a single performance obligation that represents a series of distinct performance obligations that is satisfied over time. Revenue recognition commences when the customer receives access to the services and is recognized ratably over the subscription period. Other revenue consists of fees earned from the temporary staffing and permanent placement of healthcare professionals. Revenue is recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenue Disaggregation Revenue consisted of the following (in thousands): Three Months Ended June 30, 2024 2023 Subscription $ 119,968 $ 101,255 Other 6,708 7,214 Total revenue $ 126,676 $ 108,469 Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Marketing Solutions customers are generally billed for a portion of the contract upon contract execution and then billed throughout the remainder of the contract based on various time-based milestones, starting when the tailored content is first shared on the Doximity platform. Hiring Solutions customers are generally billed periodically throughout the service period. The Company’s contracts do not contain significant financing components. The Company records unbilled revenue when revenue is recognized in amounts for which it is contractually entitled but exceeds the amounts the Company has a right to bill as of the end of the period. The Company records unbilled revenue on the condensed consolidated balance sheets within prepaid expenses and other current assets. The Company’s unbilled revenue balances were $2.6 million and $2.3 million as of June 30, 2024 and March 31, 2024, respectively. Deferred revenue consists of noncancelable customer billings or payments received in advance of revenue recognition. Deferred revenue balances are generally expected to be recognized within 12 months. Since the majority of the Company’s contracts have a duration of one year or less, the Company has elected not to disclose remaining performance obligations in accordance with the optional exemption in ASC 606. Remaining performance obligations for contracts with an original duration greater than one year are not material. Revenue recognized for the three months ended June 30, 2024 and 2023 from amounts included in deferred revenue as of the beginning of the period was $69.4 million and $70.2 million, respectively. Deferred Contract Costs The Company capitalizes sales compensation that is considered to be an incremental and recoverable cost of obtaining a contract with a customer. The Company pays commissions based on signing new arrangements with customers and upon renewals and expansion of existing contracts with customers. Deferred compensation is generally amortized over the weighted-average contractual term, ranging from 7 months to 14 months. The portion of deferred compensation expected to be recognized within one year of the balance sheet date is included in prepaid expenses and other current assets, and the remaining portion is recorded as other assets on the condensed consolidated balance sheets. The amortization of deferred contract costs is included in sales and marketing expense in the condensed consolidated statements of operations. Sales compensation that is not considered an incremental cost is expensed in the same period that it was earned. The Company capitalized $1.4 million and $1.2 million of contract acquisition costs for the three months ended June 30, 2024, and 2023 respectively. Amortization of deferred contract costs was $2.7 million for the three months ended June 30, 2024 and 2023. As of June 30, 2024, the Company’s current and non-current deferred contract cost balances were $3.7 million and $0.5 million, respectively. As of March 31, 2024, the Company’s current and non-current deferred contract cost balances were $5.0 million and $0.4 million, respectively. |
Investments
Investments | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The cost, gross unrealized gains and losses, and fair value of investments are as follows (in thousands): As of June 30, 2024 Cost or Gross Gross Fair Value Cash equivalents: Commercial paper $ 2,181 $ — $ (1) $ 2,180 Money market funds 99,415 — — 99,415 Total cash equivalents 101,596 — (1) 101,595 Marketable securities: Commercial paper 41,608 — (32) 41,576 Corporate notes and bonds 351,230 110 (414) 350,926 U.S. government and agency securities 247,556 23 (1,035) 246,544 Total marketable securities 640,394 133 (1,481) 639,046 Total cash equivalents and marketable securities $ 741,990 $ 133 $ (1,482) $ 740,641 As of June 30, 2024, the contractual maturities of the Company’s available-for-sale debt securities were as follows (in thousands): Fair Value Due within one year $ 442,355 Due in one to two years 198,871 Total $ 641,226 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. The cost, gross unrealized gains and losses, and fair value of investments were as follows (in thousands): As of March 31, 2024 Cost or Gross Gross Fair Value Cash equivalents: Corporate notes and bonds $ 1,180 $ — $ — $ 1,180 Money market funds 83,049 — — 83,049 Total cash equivalents 84,229 — — 84,229 Marketable securities: Asset-backed securities 121 — — 121 Commercial paper 70,804 1 (50) 70,755 Corporate notes and bonds 225,880 133 (191) 225,822 Sovereign bonds 7,749 — (73) 7,676 U.S. government and agency securities 365,123 2 (3,384) 361,741 Total marketable securities 669,677 136 (3,698) 666,115 Total cash equivalents and marketable securities $ 753,906 $ 136 $ (3,698) $ 750,344 As of June 30, 2024 and March 31, 2024, the Company has recognized accrued interest of $4.5 million and $3.8 million, respectively, which is included in prepaid expenses and other current assets in the condensed consolidated balance sheets. The unrealized losses associated with the Company’s debt securities were $1.5 million and $3.7 million as of June 30, 2024 and March 31, 2024, respectively. As the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or until the cost basis is recovered, the Company did not recognize any impairment on these securities as of June 30, 2024 or March 31, 2024. The Company did not recognize any credit losses related to the Company’s debt securities as of June 30, 2024 or March 31, 2024. The fair value related to the debt securities with unrealized losses for which no credit losses were recognized was $486.8 million and $547.5 million as of June 30, 2024 and March 31, 2024, respectively. The following tables summarize the gross unrealized losses and fair values of investments in an unrealized loss position, aggregated by security type and length of time that the individual securities have been in a continuous unrealized loss position (in thousands): As of June 30, 2024 Less than 12 months 12 months or greater Total Fair Value Gross Fair Value Gross Fair Value Gross Commercial paper $ 43,756 $ (33) $ — $ — $ 43,756 $ (33) Corporate notes and bonds 232,976 (414) — — 232,976 (414) U.S. government and agency securities 85,304 (245) 124,793 (790) 210,097 (1,035) Total $ 362,036 $ (692) $ 124,793 $ (790) $ 486,829 $ (1,482) As of March 31, 2024 Less than 12 months 12 months or greater Total Fair Value Gross Fair Value Gross Fair Value Gross Asset-backed securities $ — $ — $ 121 $ — $ 121 $ — Commercial paper 67,336 (50) — — 67,336 (50) Corporate notes and bonds 131,443 (191) — — 131,443 (191) Sovereign bonds — — 7,676 (73) 7,676 (73) U.S. government and agency securities 81,130 (139) 259,784 (3,245) 340,914 (3,384) Total $ 279,909 $ (380) $ 267,581 $ (3,318) $ 547,490 $ (3,698) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Available-for-sale debt securities are recorded at fair value on the condensed consolidated balance sheets. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values due to their short maturities. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 —Inputs that are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The following tables present the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): As of June 30, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 2,180 $ — $ 2,180 Money market funds 99,415 — — 99,415 Total cash equivalents 99,415 2,180 — 101,595 Marketable securities: Commercial paper — 41,576 — 41,576 Corporate notes and bonds — 350,926 — 350,926 U.S. government and agency securities 240,561 5,983 — 246,544 Total marketable securities 240,561 398,485 — 639,046 Total cash equivalents and marketable securities $ 339,976 $ 400,665 $ — $ 740,641 Liabilities: Contingent earn-out consideration liability $ — $ — $ 11,015 $ 11,015 Total contingent earn-out consideration liability $ — $ — $ 11,015 $ 11,015 As of March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Corporate notes and bonds $ — $ 1,180 $ — $ 1,180 Money market funds 83,049 — — 83,049 Total cash equivalents 83,049 1,180 — 84,229 Marketable securities: Asset-backed securities — 121 — 121 Commercial paper — 70,755 — 70,755 Corporate notes and bonds — 225,822 — 225,822 Sovereign bonds — 7,676 — 7,676 U.S. government and agency securities 355,804 5,937 — 361,741 Total marketable securities 355,804 310,311 — 666,115 Total cash equivalents and marketable securities $ 438,853 $ 311,491 $ — $ 750,344 Liabilities: Contingent earn-out consideration liability $ — $ — $ 16,813 $ 16,813 Total contingent earn-out consideration liability $ — $ — $ 16,813 $ 16,813 During the three months ended June 30, 2024 and 2023, the Company had no transfers between levels of the fair value hierarchy. Contingent Earn-out Consideration Liability The following table summarizes the changes in the contingent earn-out consideration liability (in thousands): Three Months Ended June 30, 2024 2023 Beginning fair value $ 16,813 $ 21,862 Additions in the period — — Change in fair value 202 269 Payments (6,000) (6,000) Ending fair value $ 11,015 $ 16,131 The contingent earn-out consideration liability relates to the AMiON acquisition, which closed on April 1, 2022. The fair value of the liability is remeasured at each reporting date until the related contingency is resolved, with any changes to the fair value recognized as sales and marketing expense in the condensed consolidated statements of operations. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): June 30, 2024 March 31, 2024 Furniture and equipment $ 2,833 $ 2,833 Computers and software 745 745 Leasehold improvements 992 992 Internal-use software development costs 28,874 26,827 Total property and equipment 33,444 31,397 Less: accumulated depreciation and amortization (20,575) (19,079) Total property and equipment, net $ 12,869 $ 12,318 Depreciation and amortization expense on property and equipment for the three months ended June 30, 2024 and 2023 was $1.5 million and $1.4 million, respectively. Included in these amounts was amortization expense for internal-use software development costs of $1.3 million and $1.2 million for the three months ended June 30, 2024 and 2023, respectively. The amortization of the internal-use software development costs is included in cost of revenue in the condensed consolidated statements of operations. During the three months ended June 30, 2024 and 2023, the Company capitalized $2.0 million and $1.8 million, respectively, of internal-use software development costs, which are included in property and equipment, net in the condensed consolidated balance sheets. No impairment was recognized on property and equipment during the three months ended June 30, 2024 and 2023. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2024 March 31, 2024 Accrued commissions $ 4,396 $ 5,404 Accrued payroll, bonus, and related expenses 7,459 8,513 Employee contributions under employee stock purchase plan 1,436 496 Rebate liabilities 2,145 995 Sales and other tax liabilities 3,038 2,978 Current portion of contingent earn-out consideration liability 5,666 5,918 Share repurchase liability 1,002 4,000 Transferable federal tax credits payable — 11,040 Other 3,346 4,359 Total accrued expenses and other current liabilities $ 28,488 $ 43,703 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets, net consisted of the following (in thousands): June 30, 2024 March 31, 2024 Customer relationships $ 37,069 $ 37,069 Other intangibles 1,531 1,531 Total intangible assets 38,600 38,600 Less: accumulated amortization (12,344) (11,283) Total intangible assets, net $ 26,256 $ 27,317 Amortization expense for intangible assets was $1.1 million and $1.2 million for the three months ended June 30, 2024 and 2023, respectively. No impairment charges on intangible assets were recorded during the three months ended June 30, 2024 and 2023. As of June 30, 2024, future amortization expense is as follows (in thousands): Year Ending March 31, Amount Remainder of 2025 $ 3,184 2026 4,012 2027 4,010 2028 4,010 2029 4,010 2030 4,010 Thereafter 3,020 Total future amortization expense $ 26,256 Goodwill As of June 30, 2024 and March 31, 2024, the Company’s goodwill balance was $67.9 million. No impairment charges on goodwill were recorded during the three months ended June 30, 2024 and 2023. |
Equity
Equity | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity | Equity Preferred Stock In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 100,000,000 shares of undesignated preferred stock with a par value of $0.001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. As of June 30, 2024 and March 31, 2024, there were no shares of preferred stock issued and outstanding. Common Stock and Creation of Dual-Class Structure The Company has two classes of common stock authorized: Class A common stock and Class B common stock, and are collectively referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. On June 8, 2021, the Company’s board of directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation which authorized 1,000,000,000 shares of Class A common stock with par value of $0.001 and one vote per share, and 500,000,000 shares of Class B common stock with par value of $0.001 and ten votes per share. The holders of common stock are entitled to receive dividends, as may be declared by the board of directors. Each of the Company’s 85,523,836 shares of then-existing common stock outstanding was reclassified into Class B common stock. Each outstanding share of Class B common stock may be converted at any time at the option of the holder into one share of Class A common stock. As of June 30, 2024, there were 125,207,608 shares of Class A common stock, and 60,496,570 shares of Class B common stock outstanding. Stock Repurchase Program The Company’s board of directors previously authorized various programs to repurchase up to $410 million of the Company’s Class A common stock. Under these programs, the Company repurchased and retired 16,480,514 shares of Class A common stock. All of these programs were completed as of April 2024. On May 1, 2024 the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock with no expiration date. As of June 30, 2024, the Company repurchased and retired 281,570 shares of Class A common stock under this program for an aggregate purchase price of $7.9 million. As of June 30, 2024, $492.1 million remained available and authorized for repurchase. All repurchases are subject to general business and market conditions and other investment opportunities and may be executed through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. Immediately upon the repurchase of any shares of Class A common stock, such shares shall be retired by the Company and shall automatically return to the status of authorized but unissued shares of Class A common stock. Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. To date, the Company has incurred excise taxes of $1.7 million, all of which remained unpaid as of June 30, 2024. Common Stock Warrants In March 2017, the Company issued a warrant to purchase 250,000 shares of common stock at an exercise price of $0.72 per share in connection with a contract signed between the Company and U.S. News & World Report, L.P., or U.S. News. All shares under the warrant were exercised as of March 31, 2024 for an aggregate intrinsic value of $6.7 million. In October 2021, the Company issued a warrant to U.S. News (the “U.S. News Warrant”) to purchase 516,000 shares of Class A common stock with an exercise price of $12.56 per share in connection with the execution of a commercial agreement with U.S. News. The U.S. News Warrant expires 10 years from the date of grant. The first tranche of the U.S. News Warrant vested on May 1, 2022 and the remainder will vest on a monthly basis over approximately 6 years. The grant-date fair value of the U.S. News Warrant was $34.7 million, which was determined using the Black-Scholes option-pricing model on the date of grant. The fair value of the warrant is recognized as expense in cost of revenue in the condensed consolidated statements of operations on a straight-line basis over its vesting term of 6.48 years. During the three months ended June 30, 2024 and 2023, $1.3 million was recognized as stock-based compensation expense relating to the U.S. News Warrant. As of June 30, 2024, unamortized stock-based compensation expense related to the unvested warrants was $20.1 million, which is expected to be recognized over the remaining vesting period of 3.75 years. Equity Incentive Plans The Company maintains three equity incentive plans: the 2010 Equity Incentive Plan (the “2010 Plan”), the 2021 Stock Option and Incentive Plan (the “2021 Plan”), and the 2021 Employee Stock Purchase Plan (the “ESPP”). Upon IPO, the 2021 Plan became effective and the 2010 Plan was terminated. The 2010 Plan continues to govern the terms of outstanding awards that were granted prior to the termination of the 2010 Plan. The 2021 Plan provides for the granting of incentive stock options, nonstatutory stock options, restricted stock units, and restricted stock awards to employees, non-employee directors, and consultants of the Company. The Company granted stock options under the terms of the Plans and outside of the Plans, as approved by the board of directors. During fiscal 2018, the Company granted 4,682,582 options outside of the Plans, of which 2,044,582 options were exercised and 2,638,000 were outstanding as of June 30, 2024. The Company has shares of common stock reserved for issuance as follows (in thousands): June 30, 2024 Common stock warrants 516 2010 Plan Options outstanding 14,017 2021 Plan Awards outstanding 3,962 Shares available for future grant 41,076 2021 ESPP 9,867 Options outstanding outside the plans 2,638 Total 72,076 Stock Options Stock options granted generally vest over four years with service-based, performance-based, and/or market-based conditions and expire ten years from the date of grant. Stock option activities within the Plans as well as outside of the Plans were as follows: Number of Shares Weighted-Average Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Balance, March 31, 2024 17,480 $ 4.60 5.72 $ 389,931 Options exercised (784) 3.25 Options forfeited or expired (41) 7.29 Balance, June 30, 2024 16,655 4.66 5.54 388,230 Vested and exercisable as of June 30, 2024 11,860 3.45 5.14 290,780 Vested and expected to vest as of June 30, 2024 16,655 4.66 5.54 388,230 The aggregate intrinsic value of options exercised during the three months ended June 30, 2024 and 2023 was $18.8 million and $38.5 million, respectively. As of June 30, 2024, unamortized stock-based compensation expense related to unvested stock options was $19.1 million, which is expected to be recognized over a weighted-average period of 2.45 years. The Company has not granted any stock options since the first quarter of fiscal 2022. Restricted Stock Units (“RSUs”) RSUs granted by the Company generally vest over three The following table summarizes RSU activity (in thousands, except per share information): Number of Shares Weighted- Unvested balance, March 31, 2024 2,093 $ 33.79 Granted 1,847 23.85 Vested (312) 31.32 Forfeited (39) 30.02 Unvested balance, June 30, 2024 3,589 28.93 The total fair value of RSUs vested during the three months ended June 30, 2024 and 2023 was $7.4 million and $6.1 million, respectively. As of June 30, 2024, total unrecognized stock-based compensation expense related to unvested RSUs was $95.3 million, which is expected to be recognized over a weighted-average period of 2.58 years. Performance-Based Restricted Stock Units (“PSUs”) The Company did not grant any PSUs during the three months ended June 30, 2024. During the three months ended June 30, 2024, 1,095 PSUs vested and as of June 30, 2024, the performance targets for 65,559 PSUs were met which will vest on August 15, 2024. As of June 30, 2024, the unamortized stock-based compensation expense related to unvested PSUs was $2.2 million. The amount to be recognized will be based on the extent the performance metrics are achieved. Stock-Based Compensation Expense Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended June 30, 2024 2023 Cost of revenue $ 2,894 $ 2,461 Research and development 4,684 3,256 Sales and marketing 6,586 5,995 General and administrative 2,926 2,289 Total stock-based compensation expense $ 17,090 $ 14,001 |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders The following table presents the reconciliation of the numerator and denominator for calculating basic and diluted net income per share (in thousands, except per share data): Three Months Ended June 30, 2024 2023 Numerator Net income $ 41,377 $ 28,406 Denominator Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, basic 185,610 194,521 Dilutive effect of stock options 13,297 17,474 Dilutive effect of common stock warrants — 122 Dilutive effect of other share-based awards 317 238 Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, diluted 199,224 212,355 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.22 $ 0.15 Diluted $ 0.21 $ 0.13 Certain potentially dilutive securities have been excluded from the calculation of diluted net income per share during the applicable periods because their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, 2024 2023 Other share-based awards 1,631 870 Common stock warrants 516 516 Total 2,147 1,386 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnification The Company enters into indemnification provisions under agreements with other companies in the ordinary course of business, including, but not limited to, clients, business partners, landlords, and other parties involved in the performance of the Company’s services. Pursuant to these arrangements, the Company has agreed to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party as a result of the Company’s activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. The Company maintains commercial general liability insurance and product liability insurance that may offset certain of its potential liabilities under these indemnification provisions. In addition, the Company has agreed to indemnify its officers and directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no material claims under these indemnification provisions. Legal Matters Beginning in April 2024, the Company and certain of our directors and officers have been named in lawsuits in the United States District Court for the Northern District of California. The first lawsuit captioned In re Doximity, Inc. Securities Litigation, No. 4:24-cv-02281-JST (N.D. Cal.) is a putative securities class action brought on behalf of our investors from February 9, 2022 and April 1, 2024 and asserts claims against the Company, our CEO and CFO for misrepresentations and omissions about our growth and profitability. The second lawsuit captioned Dalton v. Doximity, Inc., et al. (May 9, 2024) is brought derivatively on behalf of the Company, and asserts claims for, among other things, breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste against certain of our directors and officers on a similar basis to the securities lawsuit. Other similar lawsuits or proceedings may be initiated in the future. The defendants intend to defend vigorously against these actions. In light of, among other things, the early stage of the litigation, the Company is unable to predict the outcome of these matters and is unable to reasonably estimate the amount or range of loss, if any, that could result from an unfavorable outcome. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has non-cancelable operating leases for the rental of office space with various expiration dates through 2030. The components of lease expense were as follows (in thousands): Three Months Ended June 30, 2024 2023 Operating lease cost $ 631 $ 701 Variable lease cost 6 20 Total lease cost $ 637 $ 721 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended June 30, 2024 2023 Cash paid for amounts included in measurement of lease liabilities—Operating cash flows $ 666 $ 167 Supplemental balance sheet information related to leases was as follows: June 30, 2024 March 31, 2024 Weighted-average remaining lease term (in years) 5.86 6.09 Weighted-average discount rate 4.18 % 4.18 % Maturities of operating lease liabilities as of June 30, 2024 were as follows (in thousands): Remainder of 2025 $ 2,051 2026 2,687 2027 2,497 2028 2,605 2029 2,667 Thereafter 3,385 Total future lease payments $ 15,892 Less: imputed interest (1,861) Present value of lease liabilities $ 14,031 |
Other Income, net
Other Income, net | 3 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Income, net | Other Income, net Other income, net consisted of the following (in thousands): Three Months Ended June 30, 2024 2023 Interest income $ 7,168 $ 5,018 Net loss on sale of marketable securities — (273) Other income (expense) (52) 94 Other income, net $ 7,116 $ 4,839 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any. The Company’s effective tax rates for the three months ended June 30, 2024 and 2023 were 22.2% and 17.7%, respectively. The Company's effective tax rate differs from the U.S. federal statutory rate, primarily due to state income taxes, stock-based compensation related tax benefits, which are subject to limitations for certain executive officers under IRC section 162(m), and federal and state research and development tax credits. The Company’s effective tax rate is based on forecasted annual income before income taxes which may fluctuate through the rest of the year. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company considers operating segments to be components of the Company in which separate financial information is available and is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The chief operating decision maker reviews financial information on a consolidated basis to make decisions about how to allocate resources and how to measure the Company’s performance. As such, the Company has determined that it has one operating and reportable segment. Substantially all of the Company’s long-lived assets were based in the United States as of June 30, 2024 and March 31, 2024. No country outside of the United States accounted for more than 10% of total revenue for the three months ended June 30, 2024 and 2023. Substantially all of the Company’s revenue was derived in the United States for the three months ended June 30, 2024 and 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 41,377 | $ 28,406 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024. |
Principles of Consolidation | The accompanying condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, stockholders’ equity, and cash flows. The results of operations for the three months ended June 30, 2024, shown in this report are not necessarily indicative of the results to be expected for the full year ending March 31, 2025. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on March 31 st . Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts stated in the condensed consolidated financial statements and accompanying notes. These judgments, estimates, and assumptions are used for, but not limited to, revenue recognition, the fair values of acquired intangible assets and goodwill, the useful lives of long-lived assets, fair value of contingent earn-out consideration, and deferred income taxes. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage risk exposure, the Company invests cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. The Company places its cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for the Company for its fiscal year beginning April 1, 2024, and for interim periods within the fiscal year beginning April 1, 2025, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Fair Value Measurements | Fair Value Measurements Available-for-sale debt securities are recorded at fair value on the condensed consolidated balance sheets. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values due to their short maturities. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 —Inputs that are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Customers Representing 10% or more of Revenue or Accounts Receivable, Net | The Company’s significant customers that represented 10% or more of accounts receivable, net for the periods presented were as follows: Accounts Receivable, Net June 30, 2024 March 31, 2024 Customer A 14 % * Customer B 14 % 15 % _______________ * Less than 10% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue consisted of the following (in thousands): Three Months Ended June 30, 2024 2023 Subscription $ 119,968 $ 101,255 Other 6,708 7,214 Total revenue $ 126,676 $ 108,469 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments | The cost, gross unrealized gains and losses, and fair value of investments are as follows (in thousands): As of June 30, 2024 Cost or Gross Gross Fair Value Cash equivalents: Commercial paper $ 2,181 $ — $ (1) $ 2,180 Money market funds 99,415 — — 99,415 Total cash equivalents 101,596 — (1) 101,595 Marketable securities: Commercial paper 41,608 — (32) 41,576 Corporate notes and bonds 351,230 110 (414) 350,926 U.S. government and agency securities 247,556 23 (1,035) 246,544 Total marketable securities 640,394 133 (1,481) 639,046 Total cash equivalents and marketable securities $ 741,990 $ 133 $ (1,482) $ 740,641 The cost, gross unrealized gains and losses, and fair value of investments were as follows (in thousands): As of March 31, 2024 Cost or Gross Gross Fair Value Cash equivalents: Corporate notes and bonds $ 1,180 $ — $ — $ 1,180 Money market funds 83,049 — — 83,049 Total cash equivalents 84,229 — — 84,229 Marketable securities: Asset-backed securities 121 — — 121 Commercial paper 70,804 1 (50) 70,755 Corporate notes and bonds 225,880 133 (191) 225,822 Sovereign bonds 7,749 — (73) 7,676 U.S. government and agency securities 365,123 2 (3,384) 361,741 Total marketable securities 669,677 136 (3,698) 666,115 Total cash equivalents and marketable securities $ 753,906 $ 136 $ (3,698) $ 750,344 |
Contractual Maturities of Available-For-Sale Debt Securities | As of June 30, 2024, the contractual maturities of the Company’s available-for-sale debt securities were as follows (in thousands): Fair Value Due within one year $ 442,355 Due in one to two years 198,871 Total $ 641,226 |
Gross Unrealized Losses and Fair Values of Investments in an Unrealized Loss Position | The following tables summarize the gross unrealized losses and fair values of investments in an unrealized loss position, aggregated by security type and length of time that the individual securities have been in a continuous unrealized loss position (in thousands): As of June 30, 2024 Less than 12 months 12 months or greater Total Fair Value Gross Fair Value Gross Fair Value Gross Commercial paper $ 43,756 $ (33) $ — $ — $ 43,756 $ (33) Corporate notes and bonds 232,976 (414) — — 232,976 (414) U.S. government and agency securities 85,304 (245) 124,793 (790) 210,097 (1,035) Total $ 362,036 $ (692) $ 124,793 $ (790) $ 486,829 $ (1,482) As of March 31, 2024 Less than 12 months 12 months or greater Total Fair Value Gross Fair Value Gross Fair Value Gross Asset-backed securities $ — $ — $ 121 $ — $ 121 $ — Commercial paper 67,336 (50) — — 67,336 (50) Corporate notes and bonds 131,443 (191) — — 131,443 (191) Sovereign bonds — — 7,676 (73) 7,676 (73) U.S. government and agency securities 81,130 (139) 259,784 (3,245) 340,914 (3,384) Total $ 279,909 $ (380) $ 267,581 $ (3,318) $ 547,490 $ (3,698) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables present the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis (in thousands): As of June 30, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 2,180 $ — $ 2,180 Money market funds 99,415 — — 99,415 Total cash equivalents 99,415 2,180 — 101,595 Marketable securities: Commercial paper — 41,576 — 41,576 Corporate notes and bonds — 350,926 — 350,926 U.S. government and agency securities 240,561 5,983 — 246,544 Total marketable securities 240,561 398,485 — 639,046 Total cash equivalents and marketable securities $ 339,976 $ 400,665 $ — $ 740,641 Liabilities: Contingent earn-out consideration liability $ — $ — $ 11,015 $ 11,015 Total contingent earn-out consideration liability $ — $ — $ 11,015 $ 11,015 As of March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Corporate notes and bonds $ — $ 1,180 $ — $ 1,180 Money market funds 83,049 — — 83,049 Total cash equivalents 83,049 1,180 — 84,229 Marketable securities: Asset-backed securities — 121 — 121 Commercial paper — 70,755 — 70,755 Corporate notes and bonds — 225,822 — 225,822 Sovereign bonds — 7,676 — 7,676 U.S. government and agency securities 355,804 5,937 — 361,741 Total marketable securities 355,804 310,311 — 666,115 Total cash equivalents and marketable securities $ 438,853 $ 311,491 $ — $ 750,344 Liabilities: Contingent earn-out consideration liability $ — $ — $ 16,813 $ 16,813 Total contingent earn-out consideration liability $ — $ — $ 16,813 $ 16,813 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in the contingent earn-out consideration liability (in thousands): Three Months Ended June 30, 2024 2023 Beginning fair value $ 16,813 $ 21,862 Additions in the period — — Change in fair value 202 269 Payments (6,000) (6,000) Ending fair value $ 11,015 $ 16,131 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): June 30, 2024 March 31, 2024 Furniture and equipment $ 2,833 $ 2,833 Computers and software 745 745 Leasehold improvements 992 992 Internal-use software development costs 28,874 26,827 Total property and equipment 33,444 31,397 Less: accumulated depreciation and amortization (20,575) (19,079) Total property and equipment, net $ 12,869 $ 12,318 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2024 March 31, 2024 Accrued commissions $ 4,396 $ 5,404 Accrued payroll, bonus, and related expenses 7,459 8,513 Employee contributions under employee stock purchase plan 1,436 496 Rebate liabilities 2,145 995 Sales and other tax liabilities 3,038 2,978 Current portion of contingent earn-out consideration liability 5,666 5,918 Share repurchase liability 1,002 4,000 Transferable federal tax credits payable — 11,040 Other 3,346 4,359 Total accrued expenses and other current liabilities $ 28,488 $ 43,703 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): June 30, 2024 March 31, 2024 Customer relationships $ 37,069 $ 37,069 Other intangibles 1,531 1,531 Total intangible assets 38,600 38,600 Less: accumulated amortization (12,344) (11,283) Total intangible assets, net $ 26,256 $ 27,317 |
Future Amortization Expense | As of June 30, 2024, future amortization expense is as follows (in thousands): Year Ending March 31, Amount Remainder of 2025 $ 3,184 2026 4,012 2027 4,010 2028 4,010 2029 4,010 2030 4,010 Thereafter 3,020 Total future amortization expense $ 26,256 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Common Stock Reserved for Issuance | The Company has shares of common stock reserved for issuance as follows (in thousands): June 30, 2024 Common stock warrants 516 2010 Plan Options outstanding 14,017 2021 Plan Awards outstanding 3,962 Shares available for future grant 41,076 2021 ESPP 9,867 Options outstanding outside the plans 2,638 Total 72,076 |
Stock Option Activity | Stock option activities within the Plans as well as outside of the Plans were as follows: Number of Shares Weighted-Average Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Balance, March 31, 2024 17,480 $ 4.60 5.72 $ 389,931 Options exercised (784) 3.25 Options forfeited or expired (41) 7.29 Balance, June 30, 2024 16,655 4.66 5.54 388,230 Vested and exercisable as of June 30, 2024 11,860 3.45 5.14 290,780 Vested and expected to vest as of June 30, 2024 16,655 4.66 5.54 388,230 |
Restricted Stock Unit Activity | The following table summarizes RSU activity (in thousands, except per share information): Number of Shares Weighted- Unvested balance, March 31, 2024 2,093 $ 33.79 Granted 1,847 23.85 Vested (312) 31.32 Forfeited (39) 30.02 Unvested balance, June 30, 2024 3,589 28.93 |
Stock-Based Compensation Expense | Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended June 30, 2024 2023 Cost of revenue $ 2,894 $ 2,461 Research and development 4,684 3,256 Sales and marketing 6,586 5,995 General and administrative 2,926 2,289 Total stock-based compensation expense $ 17,090 $ 14,001 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share, Basic and Diluted | The following table presents the reconciliation of the numerator and denominator for calculating basic and diluted net income per share (in thousands, except per share data): Three Months Ended June 30, 2024 2023 Numerator Net income $ 41,377 $ 28,406 Denominator Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, basic 185,610 194,521 Dilutive effect of stock options 13,297 17,474 Dilutive effect of common stock warrants — 122 Dilutive effect of other share-based awards 317 238 Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, diluted 199,224 212,355 Net income per share attributable to Class A and Class B common stockholders: Basic $ 0.22 $ 0.15 Diluted $ 0.21 $ 0.13 |
Antidilutive Securities Excluded from Computation of Net Income Per Share | Certain potentially dilutive securities have been excluded from the calculation of diluted net income per share during the applicable periods because their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, 2024 2023 Other share-based awards 1,631 870 Common stock warrants 516 516 Total 2,147 1,386 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow/Balance Sheet Information Related to Leases | The components of lease expense were as follows (in thousands): Three Months Ended June 30, 2024 2023 Operating lease cost $ 631 $ 701 Variable lease cost 6 20 Total lease cost $ 637 $ 721 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended June 30, 2024 2023 Cash paid for amounts included in measurement of lease liabilities—Operating cash flows $ 666 $ 167 Supplemental balance sheet information related to leases was as follows: June 30, 2024 March 31, 2024 Weighted-average remaining lease term (in years) 5.86 6.09 Weighted-average discount rate 4.18 % 4.18 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of June 30, 2024 were as follows (in thousands): Remainder of 2025 $ 2,051 2026 2,687 2027 2,497 2028 2,605 2029 2,667 Thereafter 3,385 Total future lease payments $ 15,892 Less: imputed interest (1,861) Present value of lease liabilities $ 14,031 |
Other Income, net (Tables)
Other Income, net (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other income, net consisted of the following (in thousands): Three Months Ended June 30, 2024 2023 Interest income $ 7,168 $ 5,018 Net loss on sale of marketable securities — (273) Other income (expense) (52) 94 Other income, net $ 7,116 $ 4,839 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Significant Customers Representing 10% or more of Revenue or Accounts Receivable, Net (Details) - Customer Concentration Risk - Accounts Receivable, Net | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk | 14% | |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk | 14% | 15% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Disaggregation of Revenue [Line Items] | |||
Unbilled revenue | $ 2,600,000 | $ 2,300,000 | |
Deferred revenue expected to be recognized, period (within) | 12 months | ||
Revenue recognized from deferred revenue | $ 69,400,000 | $ 70,200,000 | |
Capitalized contract acquisition costs | 1,400,000 | 1,200,000 | |
Deferred contract costs, amortization | 2,726,000 | 2,667,000 | |
Capitalized contract cost, net, current | 3,700,000 | 5,000,000 | |
Capitalized contract cost, net, noncurrent | 500,000 | $ 400,000 | |
Deferred contract costs, impairment losses | $ 0 | $ 0 | |
Deferred Commissions For Marketing Solutions Contracts And For Hiring Solutions Renewal Contracts | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Deferred contract costs, amortization period | 7 months | ||
Deferred Commissions For Marketing Solutions Contracts And For Hiring Solutions Renewal Contracts | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Deferred contract costs, amortization period | 14 months | ||
Subscription, Marketing Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Contractual term | 12 months | ||
Subscription, Hiring Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Contractual term | 12 months |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 126,676 | $ 108,469 |
Subscription | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 119,968 | 101,255 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 6,708 | $ 7,214 |
Investments - Cost, Gross Unrea
Investments - Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Cash equivalents: | ||
Cost or Amortized Cost | $ 101,596 | $ 84,229 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Total cash equivalents | 101,595 | 84,229 |
Marketable securities: | ||
Cost or Amortized Cost | 640,394 | 669,677 |
Gross Unrealized Gains | 133 | 136 |
Gross Unrealized Losses | (1,481) | (3,698) |
Fair Value | 639,046 | 666,115 |
Total cash and cash equivalents and marketable securities, Cost or amortized cost | 741,990 | 753,906 |
Total cash and cash equivalents and marketable securities, Gross unrealized gains | 133 | 136 |
Total cash and cash equivalents and marketable securities, Gross unrealized Losses | (1,482) | (3,698) |
Total cash equivalents and marketable securities | 740,641 | 750,344 |
Asset-backed securities | ||
Marketable securities: | ||
Cost or Amortized Cost | 121 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 121 | |
Commercial paper | ||
Marketable securities: | ||
Cost or Amortized Cost | 41,608 | 70,804 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (32) | (50) |
Fair Value | 41,576 | 70,755 |
Corporate notes and bonds | ||
Marketable securities: | ||
Cost or Amortized Cost | 351,230 | 225,880 |
Gross Unrealized Gains | 110 | 133 |
Gross Unrealized Losses | (414) | (191) |
Fair Value | 350,926 | 225,822 |
Sovereign bonds | ||
Marketable securities: | ||
Cost or Amortized Cost | 7,749 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (73) | |
Fair Value | 7,676 | |
U.S. government and agency securities | ||
Marketable securities: | ||
Cost or Amortized Cost | 247,556 | 365,123 |
Gross Unrealized Gains | 23 | 2 |
Gross Unrealized Losses | (1,035) | (3,384) |
Fair Value | 246,544 | 361,741 |
Commercial paper | ||
Cash equivalents: | ||
Cost or Amortized Cost | 2,181 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Total cash equivalents | 2,180 | |
Corporate notes and bonds | ||
Cash equivalents: | ||
Cost or Amortized Cost | 1,180 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Total cash equivalents | 1,180 | |
Money market funds | ||
Cash equivalents: | ||
Cost or Amortized Cost | 99,415 | 83,049 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Total cash equivalents | $ 99,415 | $ 83,049 |
Investments - Contractual Matur
Investments - Contractual Maturities of Available-For-Sale Debt Securities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year | $ 442,355 |
Due in one to two years | 198,871 |
Total | $ 641,226 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued interest | $ 4,500,000 | $ 3,800,000 |
Debt securities, gross unrealized losses | 1,481,000 | 3,698,000 |
Impairment on debt securities | 0 | 0 |
Debt securities credit losses | 0 | 0 |
Debt securities, available-for-sale, unrealized loss position | $ 486,829,000 | $ 547,490,000 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Fair Values of Investments in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Fair Value | ||
Less than 12 months | $ 362,036 | $ 279,909 |
12 months or greater | 124,793 | 267,581 |
Total, fair value | 486,829 | 547,490 |
Gross Unrealized Losses | ||
Less than 12 months | (692) | (380) |
12 months or greater | (790) | (3,318) |
Total, unrealized losses | (1,482) | (3,698) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 0 | |
12 months or greater | 121 | |
Total, fair value | 121 | |
Gross Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or greater | 0 | |
Total, unrealized losses | 0 | |
Commercial paper | ||
Fair Value | ||
Less than 12 months | 43,756 | 67,336 |
12 months or greater | 0 | 0 |
Total, fair value | 43,756 | 67,336 |
Gross Unrealized Losses | ||
Less than 12 months | (33) | (50) |
12 months or greater | 0 | 0 |
Total, unrealized losses | (33) | (50) |
Corporate notes and bonds | ||
Fair Value | ||
Less than 12 months | 232,976 | 131,443 |
12 months or greater | 0 | 0 |
Total, fair value | 232,976 | 131,443 |
Gross Unrealized Losses | ||
Less than 12 months | (414) | (191) |
12 months or greater | 0 | 0 |
Total, unrealized losses | (414) | (191) |
Sovereign bonds | ||
Fair Value | ||
Less than 12 months | 0 | |
12 months or greater | 7,676 | |
Total, fair value | 7,676 | |
Gross Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or greater | (73) | |
Total, unrealized losses | (73) | |
U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 85,304 | 81,130 |
12 months or greater | 124,793 | 259,784 |
Total, fair value | 210,097 | 340,914 |
Gross Unrealized Losses | ||
Less than 12 months | (245) | (139) |
12 months or greater | (790) | (3,245) |
Total, unrealized losses | $ (1,035) | $ (3,384) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 101,595 | $ 84,229 |
Total marketable securities | 639,046 | 666,115 |
Total cash equivalents and marketable securities | 740,641 | 750,344 |
Asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 121 | |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 41,576 | 70,755 |
Corporate notes and bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 350,926 | 225,822 |
Sovereign bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 7,676 | |
U.S. government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 246,544 | 361,741 |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 2,180 | |
Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 99,415 | 83,049 |
Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 101,595 | 84,229 |
Total marketable securities | 639,046 | 666,115 |
Total cash equivalents and marketable securities | 740,641 | 750,344 |
Liabilities: | ||
Contingent earn-out consideration liability | 11,015 | 16,813 |
Total contingent earn-out consideration liability | 11,015 | 16,813 |
Fair Value, Recurring | Asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 121 | |
Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 41,576 | 70,755 |
Fair Value, Recurring | Corporate notes and bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 1,180 | |
Total marketable securities | 350,926 | 225,822 |
Fair Value, Recurring | Sovereign bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 7,676 | |
Fair Value, Recurring | U.S. government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 246,544 | 361,741 |
Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 2,180 | |
Fair Value, Recurring | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 99,415 | 83,049 |
Level 1 | Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 99,415 | 83,049 |
Total marketable securities | 240,561 | 355,804 |
Total cash equivalents and marketable securities | 339,976 | 438,853 |
Liabilities: | ||
Contingent earn-out consideration liability | 0 | 0 |
Total contingent earn-out consideration liability | 0 | 0 |
Level 1 | Fair Value, Recurring | Asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 0 | |
Level 1 | Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 0 | 0 |
Level 1 | Fair Value, Recurring | Corporate notes and bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | |
Total marketable securities | 0 | 0 |
Level 1 | Fair Value, Recurring | Sovereign bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 0 | |
Level 1 | Fair Value, Recurring | U.S. government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 240,561 | 355,804 |
Level 1 | Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | |
Level 1 | Fair Value, Recurring | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 99,415 | 83,049 |
Level 2 | Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 2,180 | 1,180 |
Total marketable securities | 398,485 | 310,311 |
Total cash equivalents and marketable securities | 400,665 | 311,491 |
Liabilities: | ||
Contingent earn-out consideration liability | 0 | 0 |
Total contingent earn-out consideration liability | 0 | 0 |
Level 2 | Fair Value, Recurring | Asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 121 | |
Level 2 | Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 41,576 | 70,755 |
Level 2 | Fair Value, Recurring | Corporate notes and bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 1,180 | |
Total marketable securities | 350,926 | 225,822 |
Level 2 | Fair Value, Recurring | Sovereign bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 7,676 | |
Level 2 | Fair Value, Recurring | U.S. government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 5,983 | 5,937 |
Level 2 | Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 2,180 | |
Level 2 | Fair Value, Recurring | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Total marketable securities | 0 | 0 |
Total cash equivalents and marketable securities | 0 | 0 |
Liabilities: | ||
Contingent earn-out consideration liability | 11,015 | 16,813 |
Total contingent earn-out consideration liability | 11,015 | 16,813 |
Level 3 | Fair Value, Recurring | Asset-backed securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 0 | |
Level 3 | Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 0 | 0 |
Level 3 | Fair Value, Recurring | Corporate notes and bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | |
Total marketable securities | 0 | 0 |
Level 3 | Fair Value, Recurring | Sovereign bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 0 | |
Level 3 | Fair Value, Recurring | U.S. government and agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total marketable securities | 0 | 0 |
Level 3 | Fair Value, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | |
Level 3 | Fair Value, Recurring | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Earn-Out Consideration Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning fair value | $ 16,813 | $ 21,862 |
Additions in the period | 0 | 0 |
Change in fair value | 202 | 269 |
Payments | (6,000) | (6,000) |
Ending fair value | $ 11,015 | $ 16,131 |
Property and Equipment, Net - T
Property and Equipment, Net - Total Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 33,444 | $ 31,397 |
Less: accumulated depreciation and amortization | (20,575) | (19,079) |
Total property and equipment, net | 12,869 | 12,318 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,833 | 2,833 |
Computers and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 745 | 745 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 992 | 992 |
Internal-use software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 28,874 | $ 26,827 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 1,500,000 | $ 1,400,000 |
Amortization of internal-use software development costs | 1,300,000 | 1,200,000 |
Capitalized internal-use software development costs | 2,000,000 | 1,800,000 |
Impairment charges | $ 0 | $ 0 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Payables and Accruals [Abstract] | ||
Accrued commissions | $ 4,396 | $ 5,404 |
Accrued payroll, bonus, and related expenses | 7,459 | 8,513 |
Employee contributions under employee stock purchase plan | 1,436 | 496 |
Rebate liabilities | 2,145 | 995 |
Sales and other tax liabilities | 3,038 | 2,978 |
Current portion of contingent earn-out consideration liability | 5,666 | 5,918 |
Share repurchase liability | 1,002 | 4,000 |
Transferable federal tax credits payable | 0 | 11,040 |
Other | 3,346 | 4,359 |
Total accrued expenses and other current liabilities | $ 28,488 | $ 43,703 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 38,600 | $ 38,600 |
Less: accumulated amortization | (12,344) | (11,283) |
Intangible assets, net | 26,256 | 27,317 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 37,069 | 37,069 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,531 | $ 1,531 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,100,000 | $ 1,200,000 | |
Impairment of intangible assets | 0 | 0 | |
Goodwill | 67,940,000 | $ 67,940,000 | |
Goodwill impairment | $ 0 | $ 0 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2025 | $ 3,184 | |
2026 | 4,012 | |
2027 | 4,010 | |
2028 | 4,010 | |
2029 | 4,010 | |
2030 | 4,010 | |
Thereafter | 3,020 | |
Intangible assets, net | $ 26,256 | $ 27,317 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 18 Months Ended | 24 Months Ended | ||||||||||
Jun. 08, 2021 vote $ / shares shares | Oct. 31, 2021 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) plan class $ / shares shares | Jun. 30, 2024 USD ($) plan class $ / shares shares | Jun. 30, 2023 USD ($) | Mar. 31, 2018 shares | Jun. 30, 2024 USD ($) plan class $ / shares shares | Apr. 30, 2024 shares | May 01, 2024 USD ($) | Mar. 31, 2024 $ / shares shares | Oct. 26, 2023 USD ($) | Jun. 01, 2023 USD ($) | Oct. 28, 2022 USD ($) | May 12, 2022 USD ($) | Jun. 30, 2021 $ / shares shares | Mar. 31, 2017 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, outstanding (in shares) | 0 | 0 | 0 | 0 | ||||||||||||
Preferred stock, issued (in shares) | 0 | 0 | 0 | 0 | ||||||||||||
Number of classes of common stock | class | 2 | 2 | 2 | |||||||||||||
Common stock, authorized (in shares) | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | ||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||
Common stock, outstanding (in shares) | 185,704,000 | 185,704,000 | 185,704,000 | 186,562,000 | ||||||||||||
Stock repurchase program, authorized amount | $ | $ 500,000 | $ 410,000 | $ 410,000 | $ 410,000 | $ 410,000 | |||||||||||
Repurchase and retirement of common stock (in shares) | 281,570 | 16,480,514 | ||||||||||||||
Repurchase and retirement of common stock | $ | $ 7,900 | $ 48,436 | $ 21,105 | |||||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 492,100 | $ 492,100 | $ 492,100 | |||||||||||||
Repurchase and retirement of common stock, excise taxes | $ | $ 1,700 | |||||||||||||||
Number of shares called by warrants (in shares) | 516,000 | 516,000 | 516,000 | |||||||||||||
Stock based compensation expense | $ | $ 17,090 | 14,001 | ||||||||||||||
Number of equity incentive plans | plan | 3 | 3 | 3 | |||||||||||||
Options outstanding in period (in shares) | 16,655,000 | 16,655,000 | 16,655,000 | 17,480,000 | ||||||||||||
Aggregate intrinsic value of options | $ | $ 18,800 | 38,500 | ||||||||||||||
Unamortized compensation expense, option | $ | $ 19,100 | $ 19,100 | $ 19,100 | |||||||||||||
Stock options | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Unamortized compensation expense, weighted average period of recognition | 2 years 5 months 12 days | |||||||||||||||
Award vesting period | 4 years | |||||||||||||||
Expiration period from the date of grant | 10 years | |||||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Unamortized stock-based compensation expense excluding option | $ | $ 95,300 | $ 95,300 | $ 95,300 | |||||||||||||
Unamortized compensation expense, weighted average period of recognition | 2 years 6 months 29 days | |||||||||||||||
Total fair value of non-option instrument | $ | $ 7,400 | $ 6,100 | ||||||||||||||
Other than options granted in period (in shares) | 1,847,000 | |||||||||||||||
Outstanding unvested (in shares) | 3,589,000 | 3,589,000 | 3,589,000 | 2,093,000 | ||||||||||||
Vested (in shares) | 312,000 | |||||||||||||||
Restricted Stock Units (RSUs) | Minimum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Award vesting period | 3 years | |||||||||||||||
Restricted Stock Units (RSUs) | Maximum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Award vesting period | 4 years | |||||||||||||||
Performance-Based Restricted Stock Units | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Other than options granted in period (in shares) | 0 | |||||||||||||||
Outstanding unvested (in shares) | 65,559 | 65,559 | 65,559 | |||||||||||||
Vested (in shares) | 1,095 | |||||||||||||||
Unamortized compensation expense, option, non option | $ | $ 2,200 | $ 2,200 | $ 2,200 | |||||||||||||
Approved by Board of Directors, Outside of Plans | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Options granted in period (in shares) | 4,682,582 | |||||||||||||||
Options exercised (in shares) | 2,044,582 | 2,044,582 | 2,044,582 | |||||||||||||
Options outstanding in period (in shares) | 2,638,000 | 2,638,000 | 2,638,000 | |||||||||||||
Contract With U.S. News & World Report, L.P. | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares called by warrants (in shares) | 250,000 | |||||||||||||||
Exercise price called by warrants (in dollars per share) | $ / shares | $ 0.72 | |||||||||||||||
Warrants exercised in period , intrinsic value | $ | $ 6,700 | |||||||||||||||
U.S. News Warrant | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares called by warrants (in shares) | 516,000 | |||||||||||||||
Exercise price called by warrants (in dollars per share) | $ / shares | $ 12.56 | |||||||||||||||
Warrant outstanding, term | 10 years | |||||||||||||||
Warrants outstanding, vesting period | 6 years 5 months 23 days | |||||||||||||||
Fair value of warrant | $ | $ 34,700 | |||||||||||||||
Stock based compensation expense | $ | 1,300 | |||||||||||||||
Unamortized stock-based compensation expense excluding option | $ | $ 20,100 | $ 20,100 | $ 20,100 | |||||||||||||
Unamortized compensation expense, weighted average period of recognition | 3 years 9 months | |||||||||||||||
U.S. News Warrant | Share-Based Payment Arrangement, Subsequent to Tranche One | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Warrants outstanding, vesting period | 6 years | |||||||||||||||
Common Class A | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Common stock, authorized (in shares) | 1,000,000,000 | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||||||||
Common stock, number of votes per share | vote | 1 | |||||||||||||||
Common stock, outstanding (in shares) | 125,207,608 | 125,207,608 | 125,207,608 | |||||||||||||
Common Class B | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Common stock, authorized (in shares) | 500,000,000 | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||||||||
Common stock, number of votes per share | vote | 10 | |||||||||||||||
Conversion of stock, conversion ratio | 1 | |||||||||||||||
Common stock, outstanding (in shares) | 60,496,570 | 60,496,570 | 60,496,570 | |||||||||||||
Common Stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Conversion of stock (in shares) | 85,523,836 |
Equity - Common Stock Reserved
Equity - Common Stock Reserved for Issuance (Details) - shares | Jun. 30, 2024 | Mar. 31, 2024 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock warrants (in shares) | 516,000 | |
Options outstanding (in shares) | 16,655,000 | 17,480,000 |
Total (in shares) | 72,076,000 | |
2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 14,017,000 | |
2021 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units outstanding (in shares) | 3,962,000 | |
Shares available for future grant (in shares) | 41,076,000 | |
2021 ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grant (in shares) | 9,867,000 | |
Options outstanding outside the plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 2,638,000 |
Equity - Stock Option Activity
Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Number of Shares (in thousands) | ||
Beginning balance (in shares) | 17,480 | |
Options exercised (in shares) | (784) | |
Options forfeited or expired (in shares) | (41) | |
Ending balance (in shares) | 16,655 | 17,480 |
Vested and exercisable, at end of period (in shares) | 11,860 | |
Vested and expected to vest, at end of period (in shares) | 16,655 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 4.60 | |
Exercised (in dollars per share) | 3.25 | |
Forfeited or expired (in dollars per share) | 7.29 | |
Ending balance (in dollars per share) | 4.66 | $ 4.60 |
Weighted average exercise price, vested and exercisable at period end (in dollars per share) | 3.45 | |
Weighted average exercise price, vested and expected to vest at period end (in dollars per share) | $ 4.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Average remaining contractual term, outstanding | 5 years 6 months 14 days | 5 years 8 months 19 days |
Average remaining contractual term, vested and exercisable at period end | 5 years 1 month 20 days | |
Average remaining contractual term, vested and expected to vest at period end | 5 years 6 months 14 days | |
Aggregate intrinsic value, outstanding | $ 388,230 | $ 389,931 |
Aggregate intrinsic value, vested and exercisable at period end | 290,780 | |
Aggregate intrinsic value, vested and expected to vest at period end | $ 388,230 |
Equity - Restricted Stock Unit
Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 3 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 2,093 |
Granted (in shares) | shares | 1,847 |
Vested (in shares) | shares | (312) |
Forfeited (in shares) | shares | (39) |
Ending balance (in shares) | shares | 3,589 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 33.79 |
Granted (in dollars per share) | $ / shares | 23.85 |
Vested (in dollars per share) | $ / shares | 31.32 |
Forfeited (in dollars per share) | $ / shares | 30.02 |
Ending balance (in dollars per share) | $ / shares | $ 28.93 |
Equity - Stock-Based Compensati
Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 17,090 | $ 14,001 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 2,894 | 2,461 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 4,684 | 3,256 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 6,586 | 5,995 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 2,926 | $ 2,289 |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Common Stockholders - Net Income Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator | ||
Net income | $ 41,377 | $ 28,406 |
Denominator | ||
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, basic (in shares) | 185,610 | 194,521 |
Dilutive effect of common stock warrants (in shares) | 0 | 122 |
Weighted-average shares used in computing net income per share attributable to Class A and Class B common stockholders, diluted (in shares) | 199,224 | 212,355 |
Net income per share attributable to Class A and Class B common stockholders: | ||
Basic (in dollars per share) | $ 0.22 | $ 0.15 |
Diluted (in dollars per share) | $ 0.21 | $ 0.13 |
Stock options | ||
Denominator | ||
Dilutive effect of share-based payment (in shares) | 13,297 | 17,474 |
Other share-based awards | ||
Denominator | ||
Dilutive effect of share-based payment (in shares) | 317 | 238 |
Net Income Per Share Attribut_4
Net Income Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation of Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net income per share (in shares) | 2,147 | 1,386 |
Other share-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net income per share (in shares) | 1,631 | 870 |
Common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of net income per share (in shares) | 516 | 516 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency | $ 0 | $ 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 631 | $ 701 |
Variable lease cost | 6 | 20 |
Total lease cost | $ 637 | $ 721 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities—Operating cash flows | $ 666 | $ 167 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) | Jun. 30, 2024 | Mar. 31, 2024 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 5 years 10 months 9 days | 6 years 1 month 2 days |
Weighted-average discount rate | 4.18% | 4.18% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Remainder of 2025 | $ 2,051 |
2026 | 2,687 |
2027 | 2,497 |
2028 | 2,605 |
2029 | 2,667 |
Thereafter | 3,385 |
Total future lease payments | 15,892 |
Less: imputed interest | (1,861) |
Present value of lease liabilities | $ 14,031 |
Other Income, net (Details)
Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 7,168 | $ 5,018 |
Net loss on sale of marketable securities | 0 | (273) |
Other income (expense) | (52) | 94 |
Other income, net | $ 7,116 | $ 4,839 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 22.20% | 17.70% | |
Unrecognized tax benefits | $ 9.6 | $ 9.3 | |
Unrecognized tax benefits that would impact effective tax rate | $ 9.4 |
Segment and Geographic Inform_2
Segment and Geographic Information (Details) | 3 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |