Cover page
Cover page - shares | 3 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37873 | |
Entity Registrant Name | e.l.f. Beauty, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4464131 | |
Entity Address, Address Line One | 570 10th Street | |
Entity Address, City or Town | Oakland, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94607 | |
City Area Code | (510) | |
Local Phone Number | 778-7787 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ELF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,457,319 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001600033 | |
Current Fiscal Year End Date | --03-31 |
Condensed consolidated balance
Condensed consolidated balance sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 142,549 | $ 120,778 | $ 72,248 |
Accounts receivable, net | 90,531 | 67,928 | 52,281 |
Inventory, net | 98,053 | 81,323 | 70,339 |
Prepaid expenses and other current assets | 39,276 | 33,296 | 21,772 |
Total current assets | 370,409 | 303,325 | 216,640 |
Property and equipment, net | 7,581 | 7,874 | 9,339 |
Intangible assets, net | 76,013 | 78,041 | 84,132 |
Goodwill | 171,620 | 171,620 | 171,620 |
Investments | 1,155 | 2,875 | 2,875 |
Other assets | 31,103 | 31,866 | 29,251 |
Total assets | 657,881 | 595,601 | 513,857 |
Current liabilities: | |||
Current portion of long-term debt and finance lease obligations | 5,431 | 5,575 | 5,793 |
Accounts payable | 53,237 | 31,427 | 16,023 |
Accrued expenses and other current liabilities | 51,037 | 70,974 | 39,916 |
Total current liabilities | 109,705 | 107,976 | 61,732 |
Long-term debt and finance lease obligations | 59,612 | 60,881 | 89,684 |
Deferred tax liabilities | 5,855 | 3,742 | 13,538 |
Long-term operating lease obligations | 10,137 | 11,201 | 14,637 |
Other long-term liabilities | 870 | 784 | 817 |
Total liabilities | 186,179 | 184,584 | 180,408 |
Commitments and contingencies (Note 7) | |||
Stockholders' equity: | |||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of June 30, 2023, March 31, 2023 and June 30, 2022; 54,417,579, 53,770,482 and 52,424,445 shares issued and outstanding as of June 30, 2023, March 31, 2023 and June 30, 2022, respectively | 543 | 535 | 517 |
Additional paid-in capital | 840,181 | 832,481 | 801,992 |
Accumulated deficit | (369,022) | (421,999) | (469,060) |
Total stockholders' equity | 471,702 | 411,017 | 333,449 |
Total liabilities and stockholders' equity | $ 657,881 | $ 595,601 | $ 513,857 |
Condensed consolidated balanc_2
Condensed consolidated balance sheets (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 54,417,579 | 53,770,482 | 52,424,445 |
Common stock, shares outstanding (in shares) | 54,417,579 | 53,770,482 | 52,424,445 |
Condensed consolidated statemen
Condensed consolidated statements of operations and comprehensive income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 216,339 | $ 122,601 |
Cost of sales | 63,767 | 39,616 |
Gross profit | 152,572 | 82,985 |
Selling, general and administrative expenses | 91,939 | 61,555 |
Operating income | 60,633 | 21,430 |
Other income (expense), net | 399 | (1,663) |
Impairment of equity investment | (1,720) | 0 |
Interest income (expense), net | 341 | (663) |
Income before provision for income taxes | 59,653 | 19,104 |
Income tax provision | (6,676) | (4,635) |
Net income | 52,977 | 14,469 |
Comprehensive income | $ 52,977 | $ 14,469 |
Net income per share: | ||
Basic (in USD per share) | $ 0.98 | $ 0.28 |
Diluted (in USD per share) | $ 0.93 | $ 0.27 |
Weighted average shares outstanding: | ||
Basic (in shares) | 53,938,136 | 51,707,160 |
Diluted (in shares) | 57,175,870 | 53,834,732 |
Condensed consolidated statem_2
Condensed consolidated statements of stockholders' equity (unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit |
Beginning balance (in shares) at Mar. 31, 2022 | 51,524,307 | |||
Beginning balance at Mar. 31, 2022 | $ 312,429 | $ 515 | $ 795,443 | $ (483,529) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 14,469 | 14,469 | ||
Stock-based compensation | 6,549 | 6,549 | ||
Exercise of stock options and vesting of restricted stock (in shares) | 558,336 | |||
Exercise of stock options and vesting of restricted stock | 2 | $ 2 | ||
Ending balance (in shares) at Jun. 30, 2022 | 52,082,643 | |||
Ending balance at Jun. 30, 2022 | 333,449 | $ 517 | 801,992 | (469,060) |
Beginning balance (in shares) at Mar. 31, 2023 | 53,571,577 | |||
Beginning balance at Mar. 31, 2023 | 411,017 | $ 535 | 832,481 | (421,999) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 52,977 | 52,977 | ||
Stock-based compensation | 7,223 | 7,223 | ||
Exercise of stock options and vesting of restricted stock (in shares) | 754,953 | |||
Exercise of stock options and vesting of restricted stock | 485 | $ 8 | 477 | |
Ending balance (in shares) at Jun. 30, 2023 | 54,326,530 | |||
Ending balance at Jun. 30, 2023 | $ 471,702 | $ 543 | $ 840,181 | $ (369,022) |
Condensed consolidated statem_3
Condensed consolidated statements of cash flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 52,977 | $ 14,469 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,637 | 5,724 |
Stock-based compensation expense | 7,200 | 6,542 |
Amortization of debt issuance costs and discount on debt | 75 | 91 |
Deferred income taxes | 2,113 | 3,945 |
Impairment of equity investment | 1,720 | 0 |
Other, net | 71 | 21 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (22,615) | (6,727) |
Inventory | (16,729) | 14,158 |
Prepaid expenses and other assets | (8,094) | (3,258) |
Accounts payable and accrued expenses | 2,014 | (3,442) |
Other liabilities | (1,015) | (945) |
Net cash provided by operating activities | 23,354 | 30,578 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (616) | (241) |
Net cash used in investing activities | (616) | (241) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (1,250) | (1,250) |
Cash received from issuance of common stock | 485 | 2 |
Other, net | (202) | (194) |
Net cash used in financing activities | (967) | (1,442) |
Net increase in cash and cash equivalents | 21,771 | 28,895 |
Cash and cash equivalents - beginning of period | 120,778 | 43,353 |
Cash and cash equivalents - end of period | $ 142,549 | $ 72,248 |
Nature of operations
Nature of operations | 3 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations e.l.f. Beauty, Inc., a Delaware corporation (“e.l.f. Beauty” and together with its subsidiaries, the “Company,” or “we”), is a multi-brand beauty company that offers inclusive, accessible, clean, vegan and cruelty-free cosmetics and skincare products. The Company's mission is to make the best of beauty accessible to every eye, lip, face and skin concern. The Company believes its ability to deliver cruelty-free, clean, vegan and premium-quality products at accessible prices with broad appeal differentiates it in the beauty industry. The Company believes the combination of its value proposition, innovation engine, ability to attract and engage consumers, and its world-class team’s ability to execute with speed, has positioned the Company well to navigate the competitive beauty market. The Company's family of brands includes e.l.f. Cosmetics, e.l.f. SKIN, Well People and Keys Soulcare. The Company's brands are available online and across leading beauty, mass-market and specialty retailers. The Company has strong relationships with its retail customers such as Target, Walmart, Ulta Beauty and other leading retailers that have enabled the Company to expand distribution both domestically and internationally. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, these interim financial statements contain all adjustments, including normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2023, March 31, 2023 and June 30, 2022, and its results of operations and stockholders' equity for the three months ended June 30, 2023 and June 30, 2022 and its cash flows for the three months ended June 30, 2023 and June 30, 2022. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (the “Annual Report”). Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. Significant accounting policies The Company made no material changes in the application of its significant accounting policies that were disclosed in Note 2, “Summary of significant accounting policies,” to the audited consolidated financial statements as of and for the fiscal year ended March 31, 2023 included in the Annual Report. Revenue recognition The Company distributes products both through national and international retailers, as well as direct-to-consumers through its e-commerce channel. The marketing and consumer engagement benefits that the direct-to-consumer channel provides is integral to the Company’s brand and product development strategy and drives sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer and the innovation and distribution processes. The following table provides disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers (in thousands). Three months ended June 30, Net sales by geographic region: 2023 2022 United States $ 188,595 $ 107,139 International 27,744 15,462 Total net sales $ 216,339 $ 122,601 As of June 30, 2023, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its unaudited condensed consolidated balance sheet. Recent accounting pronouncements No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company's unaudited condensed consolidated financial statements. |
Investment in equity securities
Investment in equity securities | 3 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Investment in equity securities | Investment in equity securitiesOn April 14, 2017, the Company invested $2.9 million in a social media analytics company, which is included in investments on its unaudited condensed consolidated balance sheets. The Company has elected the measurement alternative for equity investments that do not have readily determinable fair values. The Company recorded an impairment charge of $1.7 million as a separate line under other income (expense) on its investment during the three months ended June 30, 2023, as an identified event or change in circumstances resulted in an indicator for impairment. |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Information regarding the Company’s goodwill and intangible assets as of June 30, 2023 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (67,720) $ 9,880 Customer relationships – e-commerce 3 years 3,940 (3,940) — Trademarks 10 years 3,500 (1,167) 2,333 Total finite-lived intangibles 85,040 (72,827) 12,213 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (72,827) $ 247,633 Information regarding the Company’s goodwill and intangible assets as of March 31, 2023 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (65,780) $ 11,820 Customer relationships – e-commerce 3 years 3,940 (3,940) — Trademarks 10 years 3,500 (1,079) 2,421 Total finite-lived intangibles 85,040 (70,799) 14,241 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (70,799) $ 249,661 Information regarding the Company’s goodwill and intangible assets as of June 30, 2022 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (59,960) $ 17,640 Customer relationships – e-commerce 3 years 3,940 (3,931) 9 Trademarks 10 years 3,500 (817) 2,683 Total finite-lived intangibles 85,040 (64,708) 20,332 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (64,708) $ 255,752 Amortization expenses on finite-lived intangible assets was $2.0 million in both the three months ended June 30, 2023 and June 30, 2022. Certain trademark assets have been classified as indefinite-lived intangible assets and accordingly, are not subject to amortization. There were no impairments of goodwill or intangible assets recorded in the three months ended June 30, 2023 and June 30, 2022. The estimated future amortization expense related to finite-lived intangible assets, assuming no impairment as of June 30, 2023 is as follows (in thousands): Remainder of fiscal 2024 $ 4,935 2025 1,230 2026 1,230 2027 1,230 2028 1,230 Thereafter 2,358 Total $ 12,213 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 3 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities as of June 30, 2023, March 31, 2023 and June 30, 2022 consisted of the following (in thousands): June 30, 2023 March 31, 2023 June 30, 2022 Accrued expenses $ 35,309 $ 47,817 $ 25,798 Current portion of operating lease liabilities 4,474 4,510 4,508 Accrued compensation 5,165 13,098 4,640 Taxes payable 3,594 2,851 3,232 Other current liabilities 2,495 2,698 1,738 Accrued expenses and other current liabilities $ 51,037 $ 70,974 $ 39,916 |
Debt
Debt | 3 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt as of June 30, 2023, March 31, 2023 and June 30, 2022 consisted of the following (in thousands): June 30, 2023 March 31, 2023 June 30, 2022 Term loan (1) $ 65,000 $ 66,250 $ 95,000 Finance lease obligations 431 633 1,226 Total debt (2) 65,431 66,883 96,226 Less: debt issuance costs (388) (427) (749) Total debt, net of issuance costs 65,043 66,456 95,477 Less: current portion (5,431) (5,575) (5,793) Long-term portion of debt $ 59,612 $ 60,881 $ 89,684 (1) See Note 8, “Debt,” to the consolidated financial statements included in the Annual Report for details regarding the Amended Credit Agreement. As of June 30, 2023, the Company was in compliance with all applicable financial covenants under the Amended Credit Agreement. (2) The gross carrying amounts of the Company’s long-term debt, before reduction of the debt issuance costs, and finance lease obligations approximate their fair values, based on Level 2 inputs (quoted prices for similar assets and liabilities in active markets or inputs that are observable), as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any liabilities measured at fair value on a recurring basis to or from Level 2 for any of the periods presented. Amended credit agreement On April 30, 2021, the Company amended and restated its prior credit agreement (as further amended, supplemented or modified from time to time, the “Amended Credit Agreement”) and refinanced all loans under the prior credit agreement. The Amended Credit Agreement has a five year term and consists of (i) a $100 million revolving credit facility (the “Amended Revolving Credit Facility”) and (ii) a $100 million term loan facility (the “Amended Term Loan Facility”). All amounts under the Amended Revolving Credit Facility are available for draw until the maturity date on April 30, 2026. The Amended Revolving Credit Facility is collateralized by substantially all of our assets and requires payment of an unused fee ranging from 0.10% to 0.30% (based on our consolidated total net leverage ratio (as defined in the Amended Credit Agreement)) times the average daily amount of unutilized commitments under the Amended Revolving Credit Facility. The Amended Revolving Credit Facility also provides for sub-facilities in the form of a $7 million letter of credit and a $5 million swing line loan; however, all amounts drawn under the Amended Revolving Credit Facility cannot exceed $100 million. The unused balance of the Amended Revolving Credit Facility as of June 30, 2023 was $100.0 million. Prior to the First Amendment (as defined below), both the Amended Revolving Credit Facility and the Amended Term Loan Facility bore interest, at the borrowers’ option, at either (i) a rate per annum equal to an adjusted LIBOR rate determined by reference to the cost of funds for the United States dollar deposits for the applicable interest period (subject to a minimum floor of 0%) plus an applicable margin ranging from 1.25% to 2.125% based on our consolidated total net leverage ratio or (ii) a floating base rate plus an applicable margin ranging from 0.25% to 1.125% based on our consolidated total net leverage ratio. On March 29, 2023, the Company amended the Amended Credit Agreement to transition the benchmark from LIBOR to an adjusted Secured Overnight Financing Rate (“SOFR”) (which is equal to the applicable SOFR plus 0.10%) (such transaction, the “First Amendment”). In connection with the First Amendment, all outstanding LIBOR loans were converted to SOFR loans. The annual interest rate for SOFR borrowings will be equal to term SOFR, subject to a floor of 0%, plus a margin ranging from 1.25% to 2.125%. The all-in interest rate as of June 30, 2023 for the Amended Term Loan Facility was approximately 6.6%. The Amended Credit Agreement contains a number of covenants that, among other things, restrict our ability to (subject to certain exceptions) pay dividends and distributions or repurchase our capital stock, incur additional indebtedness, create liens on assets, engage in mergers or consolidations and sell or otherwise dispose of assets. The Amended Credit Agreement also includes reporting, financial and maintenance covenants that require us to, among other things, comply with certain consolidated total net leverage ratios and consolidated fixed charge coverage ratios. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Legal contingencies The Company is from time to time subject to, and is currently involved in legal proceedings, claims and litigation arising in the ordinary course of business. The Company is not currently a party to any matters that management expects will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Stock based compensation expense is recognized on a straight-line basis over the requisite service period. Total stock-based compensation is shown in the table below (in thousands): Three months ended June 30, 2023 2022 Service-based vesting options $ 46 $ 88 Restricted stock and RSUs 7,154 6,454 Total stock compensation expense $ 7,200 $ 6,542 |
Repurchase of common stock
Repurchase of common stock | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Repurchase of common stock | Repurchase of common stock On May 8, 2019, the Company announced that its board of directors authorized a share repurchase program to acquire up to $25.0 million of the Company’s common stock (the “Share Repurchase Program”). Purchases under the Share Repurchase Program may be made from time to time through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, or by any combination of such methods. The timing and amount of any repurchases pursuant to the Share Repurchase Program will be determined based on market conditions, share price and other factors. The Share Repurchase Program does not require the Company to repurchase any specific number of shares of its common stock, and may be modified, suspended or terminated at any time without notice. There is no guarantee that any additional shares will be purchased under the Share Repurchase Program and such shares are intended to be retired after purchase. The covenants in the Amended Credit Agreement require the Company to be in compliance with certain leverage ratios to make repurchases under the Share Repurchase Program. The Company did not repurchase any shares during the three months ended June 30, 2023. A total of $17.1 million remains available for future share repurchases under the Share Repurchase Program as of June 30, 2023. |
Net income per share
Net income per share | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net income per share | Net income per share The Company computes basic net income per share using the weighted-average number of shares of common stock outstanding. Diluted net income per share amounts are calculated using the treasury stock method for equity-based compensation awards. The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Three months ended June 30, 2023 2022 Numerator: Net income $ 52,977 $ 14,469 Denominator: Weighted-average common shares outstanding – basic 53,938,136 51,707,160 Dilutive common equivalent shares from equity awards 3,237,734 2,127,572 Weighted-average common shares outstanding – diluted 57,175,870 53,834,732 Net income per share: Basic $ 0.98 $ 0.28 Diluted $ 0.93 $ 0.27 Weighted-average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 141,407 741,016 |
Leases
Leases | 3 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The Company uses its incremental borrowing rate to determine the present value of lease payments. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company's adoption of ASC 842 as of June 30, 2023, March 31, 2023 and June 30, 2022 were as follows (in thousands): Classification June 30, 2023 March 31, 2023 June 30, 2022 Assets Operating lease assets Other assets $ 13,020 $ 14,071 $ 17,188 Finance lease assets (a) Other assets 140 245 560 Total leased assets $ 13,160 $ 14,316 $ 17,748 Liabilities Current Operating Accrued expenses and other current liabilities $ 4,474 $ 4,510 $ 4,508 Finance Current portion of long-term debt and finance lease obligations 431 575 793 Noncurrent Operating Long-term operating lease obligations 10,137 11,201 14,637 Finance Long-term debt and finance lease obligations — 58 433 Total lease liabilities $ 15,042 $ 16,344 $ 20,371 _____________________ (a) Finance leases are recorded net of accumulated amortization of $3.5 million, $3.4 million and $3.1 million as of June 30, 2023, March 31, 2023 and June 30, 2022, respectively. For the three months ended June 30, 2023 and June 30, 2022, the components of operating and finance lease costs were as follows (in thousands): Three months ended June 30, Classification 2023 2022 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 1,277 $ 1,157 Finance lease cost Amortization of leased assets SG&A expenses 105 105 Interest on lease liabilities Interest expense, net 4 10 Total lease cost $ 1,386 $ 1,272 As of June 30, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of fiscal 2024 $ 3,655 $ 377 $ 4,032 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 15,484 435 15,919 Less: Interest 873 4 877 Present value of lease liabilities $ 14,611 $ 431 $ 15,042 For leases commencing prior to January 1, 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. These payments can be either fixed or variable, depending on the lease. As of June 30, 2023 and June 30, 2022, the weighted-average remaining lease term (in years) and discount rate were as follows: June 30, 2023 June 30, 2022 Weighted-average remaining lease term Operating leases 4.4 years 5.0 years Finance leases 0.7 years 1.6 years Weighted-average discount rate Operating leases 2.6 % 2.7 % Finance leases 2.4 % 2.9 % |
Leases | Leases The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The Company uses its incremental borrowing rate to determine the present value of lease payments. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company's adoption of ASC 842 as of June 30, 2023, March 31, 2023 and June 30, 2022 were as follows (in thousands): Classification June 30, 2023 March 31, 2023 June 30, 2022 Assets Operating lease assets Other assets $ 13,020 $ 14,071 $ 17,188 Finance lease assets (a) Other assets 140 245 560 Total leased assets $ 13,160 $ 14,316 $ 17,748 Liabilities Current Operating Accrued expenses and other current liabilities $ 4,474 $ 4,510 $ 4,508 Finance Current portion of long-term debt and finance lease obligations 431 575 793 Noncurrent Operating Long-term operating lease obligations 10,137 11,201 14,637 Finance Long-term debt and finance lease obligations — 58 433 Total lease liabilities $ 15,042 $ 16,344 $ 20,371 _____________________ (a) Finance leases are recorded net of accumulated amortization of $3.5 million, $3.4 million and $3.1 million as of June 30, 2023, March 31, 2023 and June 30, 2022, respectively. For the three months ended June 30, 2023 and June 30, 2022, the components of operating and finance lease costs were as follows (in thousands): Three months ended June 30, Classification 2023 2022 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 1,277 $ 1,157 Finance lease cost Amortization of leased assets SG&A expenses 105 105 Interest on lease liabilities Interest expense, net 4 10 Total lease cost $ 1,386 $ 1,272 As of June 30, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of fiscal 2024 $ 3,655 $ 377 $ 4,032 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 15,484 435 15,919 Less: Interest 873 4 877 Present value of lease liabilities $ 14,611 $ 431 $ 15,042 For leases commencing prior to January 1, 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. These payments can be either fixed or variable, depending on the lease. As of June 30, 2023 and June 30, 2022, the weighted-average remaining lease term (in years) and discount rate were as follows: June 30, 2023 June 30, 2022 Weighted-average remaining lease term Operating leases 4.4 years 5.0 years Finance leases 0.7 years 1.6 years Weighted-average discount rate Operating leases 2.6 % 2.7 % Finance leases 2.4 % 2.9 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 52,977 | $ 14,469 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | As of the date of this Quarterly Report, each of the Company's executive officers has entered into a Rule 10b5-1 trading plan that remains in effect. The following table sets forth the material terms of each Rule 10b5-1 trading plan that was adopted, modified or terminated by an officer or director of the Company during the three months ended June 30, 2023. Trading Arrangement Total Shares to be Sold (1) Expiration Date Officer/Director Action Date Rule 10b5-1* Non-Rule 10b5-1** Tarang Amin Adopt 6/8/2023 X Up to 456,252 9/30/2024 Chairman, Chief Executive Officer, and President Mandy Fields Modify (2) 5/30/2023 X Up to 121,292 8/23/2024 SVP and Chief Financial Officer Josh Franks Adopt 6/8/2023 X Up to 114,286 9/27/2024 SVP, Operations Jennie Laar Adopt 6/6/2023 X Up to 26,359 8/30/2024 SVP and Chief Commercial Officer Kory Marchisotto Adopt 5/30/2023 X Up to 88,560 8/23/2024 SVP and Chief Marketing Officer * Intended to satisfy the affirmative defense of Rule 10b5-1(c). ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c). (1) The total shares to be sold for each officer cannot be determined at the date of this Quarterly Report as the planned sale amount for each officer is equal to a designated percentage of the net number of shares after a portion of the shares have been sold to cover withholding taxes from RSU or RSA vesting, as well as performance stock units that will only vest upon achievement of applicable performance targets and may not vest at all. The amount listed for each officer reflects the maximum number of shares available to be sold multiplied by the designated percentages set forth in each officer's respective 10b5-1 trading plan. (2) Changed the amount of shares to be sold under the trading arrangement, the price limits for sales under the trading arrangement and the timing of sales under the trading arrangement originally adopted on November 14, 2022. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Tarang Amin [Member] | |
Trading Arrangements, by Individual | |
Name | Tarang Amin |
Title | Chairman, Chief Executive Officer, and President |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 6/8/2023 |
Arrangement Duration | 480 days |
Aggregate Available | 456,252 |
Mandy Fields [Member] | |
Trading Arrangements, by Individual | |
Name | Mandy Fields |
Title | SVP and Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Arrangement Duration | 451 days |
Aggregate Available | 121,292 |
Josh Franks [Member] | |
Trading Arrangements, by Individual | |
Name | Josh Franks |
Title | SVP, Operations |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 6/8/2023 |
Arrangement Duration | 477 days |
Aggregate Available | 114,286 |
Jennie Laar [Member] | |
Trading Arrangements, by Individual | |
Name | Jennie Laar |
Title | SVP and Chief Commercial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 6/6/2023 |
Arrangement Duration | 451 days |
Aggregate Available | 26,359 |
Kory Marchisotto [Member] | |
Trading Arrangements, by Individual | |
Name | Kory Marchisotto |
Title | SVP and Chief Marketing Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 5/30/2023 |
Arrangement Duration | 451 days |
Aggregate Available | 88,560 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, these interim financial statements contain all adjustments, including normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2023, March 31, 2023 and June 30, 2022, and its results of operations and stockholders' equity for the three months ended June 30, 2023 and June 30, 2022 and its cash flows for the three months ended June 30, 2023 and June 30, 2022. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Segment reporting | Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. |
Revenue recognition | Revenue recognition The Company distributes products both through national and international retailers, as well as direct-to-consumers through its e-commerce channel. The marketing and consumer engagement benefits that the direct-to-consumer channel provides is integral to the Company’s brand and product development strategy and drives sales across channels. As such, the Company views its two primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer and the innovation and distribution processes. |
Recent accounting pronouncements | Recent accounting pronouncements No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company's unaudited condensed consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | The following table provides disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers (in thousands). Three months ended June 30, Net sales by geographic region: 2023 2022 United States $ 188,595 $ 107,139 International 27,744 15,462 Total net sales $ 216,339 $ 122,601 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Information Regarding Company's Goodwill and Intangible Assets | Information regarding the Company’s goodwill and intangible assets as of June 30, 2023 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (67,720) $ 9,880 Customer relationships – e-commerce 3 years 3,940 (3,940) — Trademarks 10 years 3,500 (1,167) 2,333 Total finite-lived intangibles 85,040 (72,827) 12,213 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (72,827) $ 247,633 Information regarding the Company’s goodwill and intangible assets as of March 31, 2023 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (65,780) $ 11,820 Customer relationships – e-commerce 3 years 3,940 (3,940) — Trademarks 10 years 3,500 (1,079) 2,421 Total finite-lived intangibles 85,040 (70,799) 14,241 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (70,799) $ 249,661 Information regarding the Company’s goodwill and intangible assets as of June 30, 2022 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 77,600 $ (59,960) $ 17,640 Customer relationships – e-commerce 3 years 3,940 (3,931) 9 Trademarks 10 years 3,500 (817) 2,683 Total finite-lived intangibles 85,040 (64,708) 20,332 Trademarks Indefinite 63,800 — 63,800 Goodwill 171,620 — 171,620 Total goodwill and other intangibles $ 320,460 $ (64,708) $ 255,752 |
Schedule of Future Amortization Expense for Intangible Assets | The estimated future amortization expense related to finite-lived intangible assets, assuming no impairment as of June 30, 2023 is as follows (in thousands): Remainder of fiscal 2024 $ 4,935 2025 1,230 2026 1,230 2027 1,230 2028 1,230 Thereafter 2,358 Total $ 12,213 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of June 30, 2023, March 31, 2023 and June 30, 2022 consisted of the following (in thousands): June 30, 2023 March 31, 2023 June 30, 2022 Accrued expenses $ 35,309 $ 47,817 $ 25,798 Current portion of operating lease liabilities 4,474 4,510 4,508 Accrued compensation 5,165 13,098 4,640 Taxes payable 3,594 2,851 3,232 Other current liabilities 2,495 2,698 1,738 Accrued expenses and other current liabilities $ 51,037 $ 70,974 $ 39,916 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of June 30, 2023, March 31, 2023 and June 30, 2022 consisted of the following (in thousands): June 30, 2023 March 31, 2023 June 30, 2022 Term loan (1) $ 65,000 $ 66,250 $ 95,000 Finance lease obligations 431 633 1,226 Total debt (2) 65,431 66,883 96,226 Less: debt issuance costs (388) (427) (749) Total debt, net of issuance costs 65,043 66,456 95,477 Less: current portion (5,431) (5,575) (5,793) Long-term portion of debt $ 59,612 $ 60,881 $ 89,684 (1) See Note 8, “Debt,” to the consolidated financial statements included in the Annual Report for details regarding the Amended Credit Agreement. As of June 30, 2023, the Company was in compliance with all applicable financial covenants under the Amended Credit Agreement. (2) The gross carrying amounts of the Company’s long-term debt, before reduction of the debt issuance costs, and finance lease obligations approximate their fair values, based on Level 2 inputs (quoted prices for similar assets and liabilities in active markets or inputs that are observable), as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any liabilities measured at fair value on a recurring basis to or from Level 2 for any of the periods presented. |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Arrangement, Expensed and Capitalized, Amount | Total stock-based compensation is shown in the table below (in thousands): Three months ended June 30, 2023 2022 Service-based vesting options $ 46 $ 88 Restricted stock and RSUs 7,154 6,454 Total stock compensation expense $ 7,200 $ 6,542 |
Net income per share (Tables)
Net income per share (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator in Basic and Diluted Net Income Per Common Share Computations | The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Three months ended June 30, 2023 2022 Numerator: Net income $ 52,977 $ 14,469 Denominator: Weighted-average common shares outstanding – basic 53,938,136 51,707,160 Dilutive common equivalent shares from equity awards 3,237,734 2,127,572 Weighted-average common shares outstanding – diluted 57,175,870 53,834,732 Net income per share: Basic $ 0.98 $ 0.28 Diluted $ 0.93 $ 0.27 Weighted-average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share 141,407 741,016 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information | A reconciliation of the balance sheet line items that were impacted or created as a result of the Company's adoption of ASC 842 as of June 30, 2023, March 31, 2023 and June 30, 2022 were as follows (in thousands): Classification June 30, 2023 March 31, 2023 June 30, 2022 Assets Operating lease assets Other assets $ 13,020 $ 14,071 $ 17,188 Finance lease assets (a) Other assets 140 245 560 Total leased assets $ 13,160 $ 14,316 $ 17,748 Liabilities Current Operating Accrued expenses and other current liabilities $ 4,474 $ 4,510 $ 4,508 Finance Current portion of long-term debt and finance lease obligations 431 575 793 Noncurrent Operating Long-term operating lease obligations 10,137 11,201 14,637 Finance Long-term debt and finance lease obligations — 58 433 Total lease liabilities $ 15,042 $ 16,344 $ 20,371 _____________________ (a) Finance leases are recorded net of accumulated amortization of $3.5 million, $3.4 million and $3.1 million as of June 30, 2023, March 31, 2023 and June 30, 2022, respectively. As of June 30, 2023 and June 30, 2022, the weighted-average remaining lease term (in years) and discount rate were as follows: June 30, 2023 June 30, 2022 Weighted-average remaining lease term Operating leases 4.4 years 5.0 years Finance leases 0.7 years 1.6 years Weighted-average discount rate Operating leases 2.6 % 2.7 % Finance leases 2.4 % 2.9 % |
Schedule of Components of Lease Expense | For the three months ended June 30, 2023 and June 30, 2022, the components of operating and finance lease costs were as follows (in thousands): Three months ended June 30, Classification 2023 2022 Operating lease cost Selling, general and administrative (“SG&A”) expenses $ 1,277 $ 1,157 Finance lease cost Amortization of leased assets SG&A expenses 105 105 Interest on lease liabilities Interest expense, net 4 10 Total lease cost $ 1,386 $ 1,272 |
Schedule of Maturities of Operating Lease Liabilities | As of June 30, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of fiscal 2024 $ 3,655 $ 377 $ 4,032 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 15,484 435 15,919 Less: Interest 873 4 877 Present value of lease liabilities $ 14,611 $ 431 $ 15,042 |
Schedule of Maturities of Finance Lease Liabilities | As of June 30, 2023, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands): Operating Finance Total Remainder of fiscal 2024 $ 3,655 $ 377 $ 4,032 2025 4,071 58 4,129 2026 3,097 — 3,097 2027 1,441 — 1,441 2028 846 — 846 Thereafter 2,374 — 2,374 Total lease payments 15,484 435 15,919 Less: Interest 873 4 877 Present value of lease liabilities $ 14,611 $ 431 $ 15,042 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) | 3 Months Ended |
Jun. 30, 2023 distribution_channel segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reporting segments | 1 |
Number of distribution channels | distribution_channel | 2 |
Summary of significant accoun_5
Summary of significant accounting policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 216,339 | $ 122,601 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 188,595 | 107,139 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 27,744 | $ 15,462 |
Investment in equity securiti_2
Investment in equity securities - (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Apr. 14, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Impairment of equity investment | $ 1.7 | |
Social Media Analytics Company | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amount invested | $ 2.9 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Information Regarding Company's Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Finite-lived intangibles, Gross carrying amount | $ 85,040 | $ 85,040 | $ 85,040 |
Finite-lived intangibles, Accumulated amortization | (72,827) | (70,799) | (64,708) |
Finite-lived intangibles, Net carrying amount | 12,213 | 14,241 | 20,332 |
Goodwill, Gross carrying amount | 171,620 | 171,620 | 171,620 |
Goodwill, Accumulated amortization | 0 | 0 | 0 |
Goodwill, Net carrying amount | 171,620 | 171,620 | 171,620 |
Goodwill and other intangibles, Gross carrying amount | 320,460 | 320,460 | 320,460 |
Goodwill and other intangibles, Accumulated amortization | (72,827) | (70,799) | (64,708) |
Goodwill and other intangibles, Net carrying amount | 247,633 | 249,661 | 255,752 |
Trademarks | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Indefinite-lived intangibles, gross carrying amount | 63,800 | 63,800 | 63,800 |
Indefinite lived intangibles, Net carrying amount | 63,800 | 63,800 | 63,800 |
Customer relationships – retailers | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Finite-lived intangibles, Gross carrying amount | 77,600 | 77,600 | 77,600 |
Finite-lived intangibles, Accumulated amortization | (67,720) | (65,780) | (59,960) |
Finite-lived intangibles, Net carrying amount | $ 9,880 | $ 11,820 | $ 17,640 |
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | 10 years |
Customer relationships – e-commerce | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Finite-lived intangibles, Gross carrying amount | $ 3,940 | $ 3,940 | $ 3,940 |
Finite-lived intangibles, Accumulated amortization | (3,940) | (3,940) | (3,931) |
Finite-lived intangibles, Net carrying amount | $ 0 | $ 0 | $ 9 |
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years | 3 years |
Trademarks | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Finite-lived intangibles, Gross carrying amount | $ 3,500 | $ 3,500 | $ 3,500 |
Finite-lived intangibles, Accumulated amortization | (1,167) | (1,079) | (817) |
Finite-lived intangibles, Net carrying amount | $ 2,333 | $ 2,421 | $ 2,683 |
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | 10 years |
Goodwill and intangible asset_3
Goodwill and intangible assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Depreciation and amortization | $ 2,000,000 | |
Goodwill and intangible asset impairment | 0 | $ 0 |
Impairment of finite-lived intangible assets | $ 0 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Remainder of fiscal 2024 | $ 4,935 | ||
2025 | 1,230 | ||
2026 | 1,230 | ||
2027 | 1,230 | ||
2028 | 1,230 | ||
Thereafter | 2,358 | ||
Finite-lived intangibles, Net carrying amount | $ 12,213 | $ 14,241 | $ 20,332 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Payables and Accruals [Abstract] | |||
Accrued expenses | $ 35,309 | $ 47,817 | $ 25,798 |
Current portion of operating lease liabilities | 4,474 | 4,510 | 4,508 |
Accrued compensation | 5,165 | 13,098 | 4,640 |
Taxes payable | 3,594 | 2,851 | 3,232 |
Other current liabilities | 2,495 | 2,698 | 1,738 |
Accrued expenses and other current liabilities | $ 51,037 | $ 70,974 | $ 39,916 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 431 | $ 633 | $ 1,226 |
Total debt | 65,431 | 66,883 | 96,226 |
Less: debt issuance costs | (388) | (427) | (749) |
Total debt, net of issuance costs | 65,043 | 66,456 | 95,477 |
Less: current portion | (5,431) | (5,575) | (5,793) |
Long-term portion of debt | 59,612 | 60,881 | 89,684 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan | $ 65,000 | $ 66,250 | $ 95,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Mar. 29, 2023 | Apr. 30, 2021 | Jun. 30, 2023 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate at period end | 0% | ||
Revolving Credit Facility | SOFR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.10% | ||
Revolving Credit Facility | SOFR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving Credit Facility | SOFR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.125% | ||
Amended Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 5 years | ||
Remaining borrowing capacity | $ 100,000,000 | ||
Amended Credit Agreement | Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Unused fee percentage | 0.10% | ||
Amended Credit Agreement | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Unused fee percentage | 0.30% | ||
Amended Credit Agreement | Revolving Credit Facility | Minimum Floor | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0% | ||
Amended Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Amended Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.125% | ||
Amended Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Amended Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Amended Credit Agreement | Term Loan | Minimum Floor | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0% | ||
Amended Credit Agreement | Term Loan | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Amended Credit Agreement | Term Loan | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.125% | ||
Amended Credit Agreement | Term Loan | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Amended Credit Agreement | Term Loan | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Amended Credit Agreement | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 7,000,000 | ||
Amended Credit Agreement | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 5,000,000 | ||
Amended Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 100,000,000 | ||
Amended Term Loan Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 | ||
2016 Senior Secured Credit Facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Interest rate at period end | 6.60% |
Stock-based compensation - Sche
Stock-based compensation - Schedule of Share-Based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | $ 7,200 | $ 6,542 |
Service-based Vesting Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | 46 | 88 |
Restricted Stock Awards and Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense | $ 7,154 | $ 6,454 |
Stock-based compensation - Addi
Stock-based compensation - Additional Information (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Service-based Vesting Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation cost | $ 0.2 |
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 1 year 9 months 18 days |
Restricted Stock Awards and Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation cost | $ 85.1 |
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 years 3 months 18 days |
Repurchase of common stock (Det
Repurchase of common stock (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | May 08, 2019 | |
Equity [Abstract] | ||
Amount authorized under share repurchase program | $ 25,000,000 | |
Repurchase of common stock (in shares) | 0 | |
Remaining authorized repurchase amount | $ 17,100,000 |
Net income per share - Reconcil
Net income per share - Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||
Net income | $ 52,977 | $ 14,469 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 53,938,136 | 51,707,160 |
Dilutive common equivalent shares from equity awards (in shares) | 3,237,734 | 2,127,572 |
Weighted average common shares outstanding - diluted (in shares) | 57,175,870 | 53,834,732 |
Net income per share: | ||
Basic (in USD per share) | $ 0.98 | $ 0.28 |
Diluted (in USD per share) | $ 0.93 | $ 0.27 |
Anti-dilutive securities excluded from diluted EPS: | ||
Weighted average anti-dilutive shares from outstanding equity awards excluded from diluted earnings per share (in shares) | 141,407 | 741,016 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 USD ($) renewal_options | Jun. 30, 2022 USD ($) | |
Leases [Abstract] | ||
Number of options to renew | renewal_options | 1 | |
Lessee operating lease, option to extend | 5 years | |
Operating cash flows from operating leases | $ | $ 1.2 | $ 1.1 |
Leases - Balance Sheet Line Ite
Leases - Balance Sheet Line Items (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Assets | |||
Operating lease assets | $ 13,020 | $ 14,071 | $ 17,188 |
Finance lease assets | 140 | 245 | 560 |
Total leased assets | 13,160 | 14,316 | 17,748 |
Current | |||
Operating | 4,474 | 4,510 | 4,508 |
Finance | 431 | 575 | 793 |
Noncurrent | |||
Operating | 10,137 | 11,201 | 14,637 |
Finance | 0 | 58 | 433 |
Total lease liabilities | $ 15,042 | $ 16,344 | $ 20,371 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt and finance lease obligations | Current portion of long-term debt and finance lease obligations | Current portion of long-term debt and finance lease obligations |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt and finance lease obligations | Long-term debt and finance lease obligations | Long-term debt and finance lease obligations |
Finance lease accumulated amortization | $ 3,500 | $ 3,400 | $ 3,100 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,277 | $ 1,157 |
Finance lease cost | ||
Amortization of leased assets | 105 | 105 |
Interest on lease liabilities | 4 | 10 |
Total lease cost | $ 1,386 | $ 1,272 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Operating leases | |||
Remainder of fiscal 2024 | $ 3,655 | ||
2025 | 4,071 | ||
2026 | 3,097 | ||
2027 | 1,441 | ||
2028 | 846 | ||
Thereafter | 2,374 | ||
Total lease payments | 15,484 | ||
Less: Interest | 873 | ||
Present value of lease liabilities | 14,611 | ||
Finance leases | |||
Remainder of fiscal 2024 | 377 | ||
2025 | 58 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 0 | ||
Total lease payments | 435 | ||
Less: Interest | 4 | ||
Present value of lease liabilities | 431 | $ 633 | $ 1,226 |
Total | |||
Remainder of fiscal 2024 | 4,032 | ||
2025 | 4,129 | ||
2026 | 3,097 | ||
2027 | 1,441 | ||
2028 | 846 | ||
Thereafter | 2,374 | ||
Total lease payments | 15,919 | ||
Less: Interest | 877 | ||
Total lease liabilities | $ 15,042 | $ 16,344 | $ 20,371 |
Leases - Weighted Average Assum
Leases - Weighted Average Assumptions (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 4 months 24 days | 5 years |
Finance leases | 8 months 12 days | 1 year 7 months 6 days |
Weighted-average discount rate | ||
Operating leases | 2.60% | 2.70% |
Finance leases | 2.40% | 2.90% |