Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Trading Symbol | MIME |
Entity Registrant Name | Mimecast Ltd |
Entity Central Index Key | 1,644,675 |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 54,216,738 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 106,140 | $ 32,890 |
Accounts receivable, net | 33,738 | 25,267 |
Prepaid expenses and other current assets | 7,362 | 4,982 |
Total current assets | 147,240 | 63,139 |
Property and equipment, net | 24,806 | 23,159 |
Other assets | 3,081 | 2,531 |
Total assets | 175,127 | 88,829 |
Current liabilities | ||
Accounts payable | 2,891 | 4,674 |
Accrued expenses and other current liabilities | 15,110 | 10,902 |
Deferred revenue | 60,889 | 45,267 |
Current portion of long-term debt | 4,910 | 5,278 |
Total current liabilities | 83,800 | 66,121 |
Deferred revenue, net of current portion | 9,151 | 8,041 |
Long-term debt | 1,981 | 7,086 |
Other non-current liabilities | 2,121 | 2,127 |
Total liabilities | $ 97,053 | $ 83,375 |
Commitments and contingencies (Note 9) | ||
Convertible preferred shares (Note 7) | $ 59,305 | |
Shareholders' equity (deficit) | ||
Ordinary shares, $0.012 par value, 300,000,000 and 118,657,039 shares authorized at March 31, 2016 and 2015, respectively; 54,216,738 and 32,928,499 shares issued and outstanding at March 31, 2016 and 2015, respectively | $ 651 | 395 |
Additional paid-in capital | 169,037 | 32,417 |
Accumulated deficit | (88,576) | (85,332) |
Accumulated other comprehensive loss | (3,038) | (1,331) |
Total shareholders' equity (deficit) | 78,074 | (53,851) |
Total liabilities, convertible preferred shares and shareholders' equity (deficit) | $ 175,127 | $ 88,829 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.012 | $ 0.012 |
Ordinary shares, authorized | 300,000,000 | 118,657,039 |
Ordinary shares, issued | 54,216,738 | 32,928,499 |
Ordinary shares, outstanding | 54,216,738 | 32,928,499 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 141,841 | $ 116,085 | $ 88,315 |
Cost of revenue | 41,809 | 36,821 | 28,673 |
Gross profit | 100,032 | 79,264 | 59,642 |
Operating expenses | |||
Research and development | 17,663 | 14,461 | 12,844 |
Sales and marketing | 65,187 | 51,224 | 46,971 |
General and administrative | 19,756 | 15,806 | 11,187 |
Restructuring | 1,203 | ||
Total operating expenses | 102,606 | 82,694 | 71,002 |
Loss from operations | (2,574) | (3,430) | (11,360) |
Other income (expense) | |||
Interest income | 74 | 62 | 86 |
Interest expense | (690) | (703) | (542) |
Foreign exchange income (expense) | 811 | 4,508 | (5,055) |
Total other income (expense), net | 195 | 3,867 | (5,511) |
(Loss) income before income taxes | (2,379) | 437 | (16,871) |
Provision for income taxes | 865 | 152 | 19 |
Net (loss) income | (3,244) | 285 | (16,890) |
Reconciliation of net (loss) income to net (loss) income applicable to ordinary shareholders: | |||
Net (loss) income | (3,244) | 285 | (16,890) |
Net (loss) income applicable to participating securities | 80 | ||
Net (loss) income applicable to ordinary shareholders-basic | (3,244) | 205 | (16,890) |
Net (loss) income | (3,244) | 285 | (16,890) |
Net (loss) income applicable to participating securities | 75 | ||
Net (loss) income applicable to ordinary shareholders-diluted | $ (3,244) | $ 210 | $ (16,890) |
Net (loss) income per share applicable to ordinary shareholders: (Note 2) | |||
Basic | $ (0.08) | $ 0.01 | $ (0.53) |
Diluted | $ (0.08) | $ 0.01 | $ (0.53) |
Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders: | |||
Basic | 40,826 | 32,354 | 31,719 |
Diluted | 40,826 | 36,075 | 31,719 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (3,244) | $ 285 | $ (16,890) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (1,707) | (3,537) | 3,578 |
Comprehensive loss | $ (4,951) | $ (3,252) | $ (13,312) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Shares and Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Convertible Preferred Shares [Member] |
Beginning balance at Mar. 31, 2013 | $ 59,305 | |||||
Beginning balance, Shares at Mar. 31, 2013 | 12,576,000 | |||||
Issuance of ordinary shares upon exercise of share options, Shares | 41,000 | |||||
Issuance of ordinary shares upon exercise of share options | $ 30 | $ 1 | $ 29 | |||
Foreign currency translation adjustment | 3,578 | $ 3,578 | ||||
Net income (loss) | (16,890) | $ (16,890) | ||||
Beginning balance at Mar. 31, 2013 | (44,700) | $ 384 | 25,015 | (68,727) | (1,372) | |
Beginning balance, Shares at Mar. 31, 2013 | 32,003,000 | |||||
Ending balance, Shares at Mar. 31, 2014 | 12,576,000 | |||||
Ending balance at Mar. 31, 2014 | $ 59,305 | |||||
Share-based compensation | 1,232 | 1,232 | ||||
Ending balance at Mar. 31, 2014 | (56,750) | $ 385 | 26,276 | (85,617) | 2,206 | |
Ending balance, Shares at Mar. 31, 2014 | 32,044,000 | |||||
Issuance of ordinary shares upon exercise of share options, Shares | 868,000 | |||||
Issuance of ordinary shares upon exercise of share options | 632 | $ 10 | 622 | |||
Foreign currency translation adjustment | (3,537) | (3,537) | ||||
Net income (loss) | 285 | 285 | ||||
Issuance of ordinary shares upon settlement of liability awards | 93 | 93 | ||||
Issuance of ordinary shares upon settlement of liability awards, Shares | 16,000 | |||||
Ending balance, Shares at Mar. 31, 2015 | 12,576,000 | |||||
Ending balance at Mar. 31, 2015 | 59,305 | $ 59,305 | ||||
Share-based compensation | 5,426 | 5,426 | ||||
Ending balance at Mar. 31, 2015 | $ (53,851) | $ 395 | 32,417 | (85,332) | (1,331) | |
Ending balance, Shares at Mar. 31, 2015 | 32,928,499 | 32,928,000 | ||||
Issuance of ordinary shares upon exercise of share options, Shares | 940,187 | 941,000 | ||||
Conversion of convertible preferred shares into ordinary shares, Shares | 12,576,000 | 12,576,000 | ||||
Issuance of ordinary shares upon exercise of share options | $ 885 | $ 12 | 873 | |||
Conversion of convertible preferred shares into ordinary shares | 59,305 | $ 151 | 59,154 | $ (59,305) | ||
Foreign currency translation adjustment | (1,707) | (1,707) | ||||
Net income (loss) | (3,244) | (3,244) | ||||
Issuance of ordinary shares upon settlement of liability awards | 523 | 523 | ||||
Issuance of ordinary shares upon settlement of liability awards, Shares | 50,000 | |||||
Class C ordinary shares lost upon conversion to Class A ordinary shares | (31,000) | |||||
Issuance of ordinary shares in relation to IPO, net of public offering issuance costs | 68,328 | $ 93 | 68,235 | |||
Issuance of ordinary shares in relation to IPO, net of public offering issuance costs, Shares | 7,750,000 | |||||
Share-based compensation | 7,835 | 7,835 | ||||
Vesting of restricted share units | 3,000 | |||||
Ending balance at Mar. 31, 2016 | $ 78,074 | $ 651 | $ 169,037 | $ (88,576) | $ (3,038) | |
Ending balance, Shares at Mar. 31, 2016 | 54,216,738 | 54,217,000 |
Consolidated Statements of Con7
Consolidated Statements of Convertible Preferred Shares and Shareholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Public offering issuance costs | $ 9,172 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities | |||
Net (loss) income | $ (3,244) | $ 285 | $ (16,890) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 10,527 | 11,028 | 8,958 |
Share-based compensation expense | 7,886 | 5,426 | 1,232 |
Provision for doubtful accounts | 91 | 133 | 23 |
(Gain) loss on disposal of fixed assets | (5) | (16) | 69 |
Non-cash interest expense | 106 | 110 | 91 |
Unrealized currency (gain) loss on foreign denominated intercompany transactions | (988) | (4,052) | 2,264 |
Changes in assets and liabilities: | |||
Accounts receivable | (9,820) | (4,334) | (6,563) |
Prepaid expenses and other current assets | (2,191) | 684 | (354) |
Other assets | (437) | (206) | (1,674) |
Accounts payable | (542) | (38) | 144 |
Deferred revenue | 18,588 | 11,378 | 8,786 |
Accrued expenses and other liabilities | 4,672 | 2,849 | 2,947 |
Net cash provided by (used in) operating activities | 24,643 | 23,247 | (967) |
Investing activities | |||
Purchases of property and equipment | (14,234) | (12,583) | (17,888) |
Net cash used in investing activities | (14,234) | (12,583) | (17,888) |
Financing activities | |||
Proceeds from exercises of share options | 885 | 632 | 30 |
Payments on debt | (5,412) | (3,483) | (252) |
Proceeds from issuance of debt, net of issuance costs | 8,282 | ||
Proceeds from initial public offering, net of issuance costs | 68,328 | ||
Net cash provided by (used in) financing activities | 63,801 | 5,431 | (222) |
Effect of foreign exchange rates on cash | (960) | (2,363) | 1,777 |
Net increase (decrease) in cash and cash equivalents | 73,250 | 13,732 | (17,300) |
Cash and cash equivalents at beginning of period | 32,890 | 19,158 | 36,458 |
Cash and cash equivalents at end of period | 106,140 | 32,890 | 19,158 |
Supplemental disclosure of cash flow information | |||
Cash paid during the period for interest | 488 | 593 | 451 |
Cash paid during the period for income taxes | 58 | 32 | 28 |
Supplemental disclosure of non-cash investing and financing | |||
Unpaid purchases of property and equipment | 308 | $ 1,591 | $ 3,345 |
Conversion of convertible preferred shares to ordinary shares | $ 59,305 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Mimecast Limited (Mimecast Jersey) is a public limited company organized under the laws of the Bailiwick of Jersey on July 28, 2015. On November 4, 2015, Mimecast Jersey changed its corporate structure whereby it became the holding company of Mimecast Limited (Mimecast UK), a private limited company incorporated in 2003 under the laws of England and Wales, and its wholly-owned subsidiaries by way of a share-for-share exchange in which the shareholders of Mimecast UK exchanged their shares in Mimecast UK for an identical number of shares of the same class in Mimecast Jersey. Upon the exchange, the historical consolidated financial statements of Mimecast UK became the historical consolidated financial statements of Mimecast Jersey. Mimecast Jersey and its subsidiaries (together the Group, the Company, Mimecast or we) is headquartered in London, England. The principal activity of the Group is the provision of email management services. Mimecast delivers a software-as-a-service (SaaS) enterprise email management service for archiving, continuity, and security. By unifying disparate and fragmented email environments into one holistic solution from the cloud, Mimecast minimizes risk and reduces cost and complexity while providing total end-to-end control of email. Mimecast’s proprietary software platform provides a single system to address key email management issues. Mimecast operates principally in Europe, North America, Africa, and Australia. The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, customer concentration, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the consolidated financial statements. The Company believes that a significant accounting policy is one that is both important to the portrayal of the Company’s financial condition and results, and requires management’s most difficult, subjective, or complex judgments, often as the result of the need to make estimates about the effect of matters that are inherently uncertain. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Share Consolidation On November 3, 2015, a committee of the Company’s Board of Directors approved a 1-for-6 share consolidation of the Company’s shares. The share consolidation was approved by our shareholders on November 5, 2015 and became effective on November 5, 2015. All share and per share data shown in the accompanying consolidated financial statements and related notes have been retroactively revised to reflect the reverse stock split. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition, allowances for doubtful accounts, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, expensing and capitalization of research and development costs for internal-use software, the determination of the fair value of share-based awards issued, share-based compensation expense, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. See Note 13. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity date of 90 days or less from the date of purchase to be cash equivalents. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates such determination at each balance sheet date. Cash and cash equivalents consist of cash on deposit with banks and amounts held in interest-bearing money market funds. Cash equivalents are carried at cost, which approximates their fair market value. Revenue Recognition The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s cloud services and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of set-up and ingestion fees as well as training fees. The Company recognizes revenue when all of the following conditions are satisfied: • there is persuasive evidence of an arrangement; • the service has been or is being provided to the customer; • the collection of the fees is probable; and • the amount of fees to be paid by the customer is fixed or determinable. The Company’s subscription arrangements provide customers the right to access its hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. Accordingly, the Company recognizes revenue in accordance with ASC 605, Revenue Recognition Revenue Recognition The Company’s products and services are sold directly by the Company’s sales force and also indirectly by third-party resellers. In accordance with the provisions of ASC 605, the Company has considered certain factors in determining whether the end-user or the third-party reseller is the Company’s customer in arrangements involving resellers. The Company has concluded that in the majority of transactions with resellers, the reseller is the Company’s customer. In these arrangements, the Company considered that it is the reseller, and not the Company, that has the relationship with the end-user. Specifically, the reseller has the ability to set pricing with the end-user and the credit risk with the end-user is borne by the reseller. Further, the reseller is not obligated to report its transaction price with the end-user to the Company, and in the majority of transactions, the Company is unable to determine the amount paid by the end-user customer to the reseller in these transactions. As a result of such considerations, revenue for these transactions is presented in the accompanying consolidated statements of operations based upon the amount billed to the reseller. For transactions where the Company has determined that the end-user is the ultimate customer, revenue is presented in the accompanying consolidated statements of operations based on the transaction price with the end-user. Subscription and support revenue is recognized ratably over the term of the contract, typically one year in duration, beginning on the commencement date of each contract. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. The Company’s professional services contracts are on a time and material basis. When these services are not combined with subscription revenues as a single unit of accounting, as discussed below, these revenues are recognized as the services are rendered. Revenue is presented net of any taxes collected from customers. At times, the Company may enter into arrangements with multiple-deliverables that generally include multiple subscriptions, premium support and professional services. For arrangements with multiple deliverables, the Company evaluates each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (a) whether the delivered item has value to the customer on a stand-alone basis; and (b) if the contract includes a general right of return relative to the delivered item, whether delivery or performance of the undelivered items is considered probable and substantially within our control. If the deliverables are determined to qualify as separate units of accounting, consideration is allocated to each unit of accounting based on the units’ relative selling prices. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of fair value (VSOE), if available, or its best estimate of selling price (BESP), if VSOE is not available. The Company has determined that third-party evidence of selling price (TPE) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. Subscription services have standalone value as such services are often sold separately. In determining whether professional services sold together with the subscription services have standalone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the determination that customers cannot resell the services that Mimecast provides, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. Professional services sold at the time of the multiple-element subscription arrangement typically include customer set-up and ingestion services. To date, the Company has concluded that all of these professional services included in executed multiple-deliverable arrangements do not have standalone value and are therefore not considered separate units of accounting. These professional services are purchased by customers only in contemplation of, or in concert with, purchasing one of the hosted subscription solutions and, therefore, are not considered a substantive service, such that the provision of such service does not reflect the culmination of the earnings process. Mimecast does not sell these services without the related underlying primary subscription as there would be no practical interest or need on the behalf of a customer to buy these services without the underlying subscription. The Company does not have any knowledge of other vendors selling these services on a stand-alone basis and there is no way for an end-user to resell the deliverable. Accordingly, the deliverables within the arrangement including both subscription services and other professional services are accounted for as a single unit of accounting in accordance with the guidance in SAB No. 104. On these occasions, revenue for the professional services deliverables in the arrangement is recognized on a straight-line basis over the contractual term or the average customer life, as further described below. Deferred Revenue Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as the revenue recognition criteria are met. In addition, deferred revenue consists of amounts paid by customers related to upfront set-up or ingestion fees. Revenue related to such services is recognized over the contractual term or the average customer life, whichever is longer. The estimated customer life has been determined to be five years. Deferred revenue that is expected to be recognized during the succeeding twelve month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent in the accompanying consolidated balance sheets. Cost of Revenue Cost of revenue primarily consists of expenses related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and share-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services team, in addition to third-party service provider costs such as data center and networking expenses, allocated overhead and depreciation expense. Concentration of Credit Risk and Off-Balance Sheet Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with major financial institutions of high-credit quality. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. Credit risk with respect to accounts receivable is dispersed due to our large number of customers. The Company’s accounts receivable are derived from revenue earned from customers primarily located in the United Kingdom, the United States, and South Africa. The Company generally does not require its customers to provide collateral or other security to support accounts receivable. Credit losses historically have not been significant and the Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. As of March 31, 2016 and 2015, no individual customer represented more than 10% of our accounts receivable. During the years ended March 31, 2016, 2015 and 2014, no individual customer represented more than 10% of our revenue. Allowance for Doubtful Accounts We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when a loss is reasonably expected to occur. The allowance for doubtful accounts is established to represent the best estimate of the net realizable value of the outstanding accounts receivable. The development of the allowance for doubtful accounts is based on a review of past due amounts, historical write-off and recovery experience, as well as aging trends affecting specific accounts and general operational factors affecting all amounts. In addition, factors are developed utilizing historical trends in bad debts, returns and allowances. We consider current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, our estimates of the recoverability of receivables could be further adjusted. For the years ended March 31, 2016, 2015 and 2014, bad debt expense was $91, $133 and $23, respectively. The allowance for doubtful accounts as of March 31, 2016 and 2015 was not material. Property and Equipment Property and equipment are stated at cost, and are depreciated using the straight-line method over the estimated useful life of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net (loss) income in the period of retirement or sale. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable. In these instances, the Company recognizes an impairment loss when it is probable that the estimated cash flows are less than the carrying value of the asset. Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. During this review, the Company re-evaluates the significant assumptions used in determining the original cost and estimated lives of long-lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long-lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the assets’ recovery. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. For the years ended March 31, 2016, 2015 and 2014, the Company did not identify any impairment of its long-lived assets. Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and borrowings under the Company’s long-term debt arrangements, approximated their fair values at March 31, 2016 and 2015 due to the short-term nature of these instruments, and for the long-term debt, the interest rates the Company believes it could obtain for borrowings with similar terms. The Company has evaluated the estimated fair value of financial instruments using available market information. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. See below for further discussion. Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: • Level 1 inputs—Unadjusted observable quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 inputs—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs—Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and nonrecurring basis to determine the appropriate level to classify them for each reporting period. Cash equivalents include money market funds with original maturities of 90 days or less from the date of purchase. The fair value measurement of these assets is based on quoted market prices in active markets for identical assets and, therefore, these assets are recorded at fair value on a recurring basis and classified as Level 1 in the fair value hierarchy for all periods presented. As of March 31, 2016 and 2015, cash equivalents held in money market funds totaled $10.7 million and $10.9 million, respectively. As of March 31, 2016 and 2015, we did not have any assets or liabilities measured at fair value on a recurring basis using significant other observable inputs (Level 2) or on a recurring basis using significant unobservable inputs (Level 3). The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities, and did not elect the fair value option for any financial assets and liabilities transacted in the years ended March 31, 2016, 2015 and 2014. Software Development Costs Costs incurred to develop software applications used in the Company’s SaaS platform consist of certain direct costs of materials and services incurred in developing or obtaining internal-use computer software, and payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding, and testing activities. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs incurred for maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. During the years ended March 31, 2016, 2015 and 2014, the Company believes the substantial majority of its development efforts were either in the preliminary project stage of development or in the operation stage (post-implementation), and accordingly, no costs have been capitalized during these periods. These costs are included in the accompanying consolidated statements of operations as research and development expense. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. We determine the functional currency for our foreign subsidiaries by reviewing the currencies in which its respective operating activities occur. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (i) asset and liability accounts at period-end rates, (ii) income statement accounts at weighted-average exchange rates for the period, and (iii) shareholders’ equity accounts at historical exchange rates. Foreign exchange transaction gains and losses are included in foreign exchange (expense) income in the accompanying consolidated statements of operations. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive (loss) income in the accompanying consolidated balance sheets. Net (Loss) Income Per Share Net (loss) income per share information is determined using the two-class method, which includes the weighted-average number of ordinary shares outstanding during the period and other securities that participate in dividends (a participating security). The Company considers the convertible preferred shares to be participating securities because they include rights to participate in dividends with the ordinary shares. Under the two-class method, basic net (loss) income per share attributable to ordinary shareholders is computed by dividing the net (loss) income attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted net (loss) income per share attributable to ordinary shareholders is computed using the more dilutive of (1) the two-class method or (2) the if-converted method. The Company allocates net income first to preferred shareholders based on dividend rights under the Company’s articles of association and then to preferred and ordinary shareholders based on ownership interests. Net losses are not allocated to preferred shareholders as they do not have an obligation to share in the Company’s net losses. Diluted net (loss) income per share gives effect to all potentially dilutive securities. Potential dilutive securities consist of ordinary shares issuable upon the exercise of share options and ordinary shares issuable upon the conversion of our convertible preferred shares. The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share data): Year Ended March 31, 2016 2015 2014 Numerator: Net (loss) income $ (3,244 ) $ 285 $ (16,890 ) Net (loss) income applicable to participating securities — 80 — Net (loss) income applicable to ordinary shareholders—basic $ (3,244 ) $ 205 $ (16,890 ) Net (loss) income $ (3,244 ) $ 285 $ (16,890 ) Net income (loss) applicable to participating securities — 75 — Net (loss) income applicable to ordinary shareholders—diluted $ (3,244 ) $ 210 $ (16,890 ) Denominator: Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders—basic 40,826 32,354 31,719 Dilutive effect of share equivalents resulting from share options and restricted shares — 3,721 — Weighted average number of ordinary shares used in computing net (loss) income per share—diluted 40,826 36,075 31,719 Net (loss) income per share applicable to ordinary shareholders: Basic $ (0.08 ) $ 0.01 $ (0.53 ) Diluted $ (0.08 ) $ 0.01 $ (0.53 ) The following potentially dilutive ordinary share equivalents have been excluded from the calculation of diluted weighted-average shares outstanding for the years ended March 31, 2016, 2015 and 2014 as their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended March 31, 2016 2015 2014 Share options outstanding 6,870 — 6,251 Unvested restricted share units 42 — — Convertible preferred shares 8,144 — 12,576 Advertising and Promotion Costs Expenses related to advertising and promotion of solutions is charged to sales and marketing expense as incurred. We incurred advertising expenses of $5.6 million, $3.7 million and $3.2 million during the years ended March 31, 2016, 2015 and 2014, respectively. Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes We recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such position are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. As of March 31, 2016 and 2015, we did not have any uncertain tax positions that would impact our net tax provision. Share-Based Compensation The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation share-based The Company accounts for transactions in which services are received from non-employees in exchange for equity instruments based on the fair value of such services received, or of the equity instruments issued, whichever is more reliably measured. The Company determines the total share-based compensation expense related to non-employee awards using the Black-Scholes option-pricing model. Additionally, in accordance with ASC 505, Equity-Based Payments to Non-Employees The fair value of each option grant issued under the Company’s share-based compensation plans was estimated using the Black-Scholes option-pricing model that used the weighted-average assumptions presented in the following table: Year ended March 31, 2016 2015 2014 Expected term (in years) 6.2 6.3 6.4 Risk-free interest rate 2.0 % 3.1 % 2.5 % Expected volatility 42.7 % 52.6 % 53.0 % Expected dividend yield — % — % — % Estimated grant date fair value per ordinary share $ 9.80 $ 7.20 $ 3.00 The weighted-average fair value of options granted to employees during the years ended March 31, 2016, 2015 and 2014 was $4.69, $4.02 and $1.56 per share, respectively. The expected term of options for service-based awards has been determined utilizing the “Simplified Method,” as the Company does not have sufficient historical share option exercise information on which to base its estimate. The Simplified Method is based on the average of the vesting tranches and the contractual life of each grant. In addition, the expected term for certain share-based awards which are subject to service-based and performance-based vesting conditions, is based on management’s estimate of the period of time for which the instrument is expected to be outstanding, factoring in certain assumptions such as the vesting period of the award, length of service and/or the location of the employee. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the share option. Since there was no public market for its ordinary shares prior to completion of the Company’s initial public offering (IPO) and as the Company’s shares have been publicly traded for a limited time, the Company determined the expected volatility for options granted based on an analysis of reported data for a peer group of companies that issue options with substantially similar terms. The expected volatility of options granted has been determined using an average of the historical volatility measures of this peer group of companies. The Company has not paid, nor anticipates paying, cash dividends on its ordinary shares; therefore, the expected dividend yield is assumed to be zero. Prior to the IPO, in the absence of an active market for the Company’s ordinary shares, the Board, the members of which the Company believes have extensive business, finance, and venture capital experience, were required to estimate the fair value of the Company’s ordinary shares at the time of each grant of a share-based award. The Company and the Board utilized various valuation methodologies in accordance with the framework of the American Institute of Certified Public Accountants’ Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, to estimate the fair value of its ordinary shares. Each valuation methodology includes estimates and assumptions that require the Company’s judgment. These estimates and assumptions include a number of objective and subjective factors, in determining the value of the Company’s ordinary shares at each grant date, including the following factors: (1) prices paid for the Company’s convertible preferred shares, which the Company had sold to outside investors in arm’s-length transactions, and the rights, preferences, and privileges of the Company’s convertible preferred shares and ordinary shares; (2) valuations performed by an independent valuation specialist; (3) the Company’s stage of development and revenue growth; (4) the fact that the grants of share-based awards involved illiquid securities in a private company; and (5) the likelihood of achieving a liquidity event for the ordinary shares underlying the share-based awards, such as an IPO or sale of the Company, given prevailing market conditions. The Company believes this methodology to be reasonable based upon the Company’s internal peer company analyses, and further suppor |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Prepaid expenses and other current assets consists of the following: At March 31, 2016 2015 Research and development investment tax credits $ 1,758 $ 2,568 Prepaid expenses 4,342 2,087 Other current assets 1,262 327 Total prepaid expenses and other current assets $ 7,362 $ 4,982 Property and equipment consists of the following: At March 31, 2016 2015 Computer equipment $ 54,935 $ 46,078 Leasehold improvements 4,096 2,867 Furniture and fixtures 1,837 1,618 Office equipment 253 256 61,121 50,819 Less: Accumulated depreciation and amortization (36,315 ) (27,660 ) Property and equipment, net $ 24,806 $ 23,159 Depreciation and amortization expense was $10.5 million, $11.0 million, and $9.0 million for the years ended March 31, 2016, 2015 and 2014, respectively. Accrued expenses and other current liabilities consists of the following: At March 31, 2016 2015 Accrued payroll and related benefits $ 8,620 $ 7,166 Accrued taxes payable 3,491 1,866 Other accrued expenses 2,999 1,870 Total accrued expenses and other current liabilities $ 15,110 $ 10,902 Other non-current liabilities consists of the following: At March 31, 2016 2015 Deferred rent $ 1,476 $ 1,760 Other non-current liabilities 645 367 Total other non-current liabilities $ 2,121 $ 2,127 |
Restructuring
Restructuring | 12 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 4. Restructuring During the year ended March 31, 2015, the Company recorded a restructuring charge of $1.2 million within the accompanying consolidated statements of operations. The restructuring charge consisted of employee severance costs in connection with the termination of employees in the United States and the United Kingdom. At March 31, 2016 and 2015, all obligations related to the restructuring action were fully paid and the Company does not expect to incur any additional costs related to this action. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt In January 2012, Mimecast Services Limited and Mimecast North America, Inc., with Mimecast UK as guarantor, entered into a loan agreement with a lender (the Loan Agreement) providing for up to a £4.0 million asset based line of credit (the Equipment Line). Under the Equipment Line, the Company can use the borrowing capacity to finance Eligible Equipment purchases, as defined in the Loan Agreement, in British pounds or U.S. dollars. Outstanding amounts under the Equipment Line accrued interest at a rate equal to the U.K. LIBOR plus 6.00% per annum for advances in British pounds or the greater of (i) 7.50% per annum and (ii) the Prime Rate plus 3.50% per annum for U.S. dollar advances. Advances under the Equipment Line were repayable in 36 equal monthly payments of principal and interest following the date of the borrowing under the Equipment Line but no later than June 30, 2015. In January 2013, the Company amended the Loan Agreement (the First Amendment) to aggregate the outstanding British pound advances and U.S. dollar advances into two individual Equipment Line advances of £1.7 million (the Sterling Equipment Advances) and $1.6 million (the U.S. Dollar Equipment Advances, collectively the Equipment Line Advances) and allowed for no additional advances under the Equipment Line. The First Amendment amended the interest rate on the Equipment Line Advances to a 4.50% per annum fixed interest rate and also extended the maturity date for the Equipment Line Advances to February 1, 2017, which includes an interest only period for the first twelve months following the First Amendment date. At March 31, 2016 and 2015, the Company had $0.7 million and $1.6 million outstanding, respectively, related to the Sterling Equipment Advances and had $0.5 million and $1.0 million outstanding, respectively, related to the U.S. Dollar Equipment Advances. There were no amounts available for future borrowings under the Equipment Line as of March 31, 2016 or 2015. As part of the First Amendment, the Company entered into a line of credit of up to the lesser of (i) £7.5 million and (ii) the equivalent of 80% of Eligible Accounts Receivables, as defined, plus £2.5 million (the Revolving Line). Under the Revolving Line, the Company can borrow in British pounds, U.S. dollars or Euros and the Revolving Line had a maturity date of January 31, 2015. Advances under the Revolving Line bore interest at the greater of the Bank of England base rate plus 3.75% per annum, and 4.25% per annum for British pound Advances, the Prime Rate plus 1.00% per annum and 4.25% per annum for U.S. dollar Advances, and the Euro LIBOR plus 4.00% per annum and 4.25% per annum for Euro Advances. In July 2014, the Company further amended the Loan Agreement (the Second Amendment) and increased the Revolving Line from up to £7.5 million to up to £10 million (the Amended Revolving Line). The Amended Revolving Line had £5.0 million available upon the Second Amendment and another £5.0 million upon completion of an additional equity financing, which occurred upon completion of the Company’s IPO. The Second Amendment also extended the maturity date of the Amended Revolving Line to July 15, 2016 and decreased the maximum interest rate on any advances to 4.00% per annum. At March 31, 2016 and 2015, the Company had no amounts outstanding under the Amended Revolving Line. At March 31, 2016 and 2015, the Company had £10.0 million and £5.0 million available for future borrowing, respectively, under the Amended Revolving Line. With the First Amendment, the Company also entered into a £3.0 million fixed interest rate term loan (the First Term Loan), which is repayable in 36 monthly installments starting twelve months following the first business day of the borrowing. Interest on the First Term Loan accrues and is payable monthly in arrears at 4.50% per annum and the First Term Loan matures on March 1, 2017. With the Second Amendment, the Company entered into a second £5.0 million fixed interest rate term loan (the Second Term Loan), which is repayable in 36 monthly installments starting six months following the first business day of the borrowing. Interest on the Second Term Loan accrues and is payable monthly in arrears at 4.50% per annum and the Second Term Loan matures on January 1, 2018. At March 31, 2016, the Company had $1.3 million and $4.4 million outstanding on the First Term Loan and Second Term Loan, respectively. At March 31, 2015, the Company had $2.8 million and $7.0 million outstanding on the First Term Loan and Second Term Loan, respectively. Under the Second Amendment, the Company was required to comply with certain financial covenants, including recurring revenue and adjusted quick ratio covenants, as defined within the Second Amendment. The interest rate would increase by 3.00% if the Company was not able to meet the financial covenants or had any other event of default, until cured. Failure to comply with these covenants, or the occurrence of an event of default, could permit the lender under the Second Amendment to declare all amounts outstanding under the Second Amendment, together with accrued interest and fees, to be immediately due and payable. In addition, the Second Amendment was secured by substantially all of our assets. In November 2015, the Company further amended the Loan Agreement (the Fourth Amendment) to reflect the change in its reporting entity, to make available the additional £5.0 million in available credit under the facility that became accessible upon the completion of the IPO, and to adjust certain financial covenants, including recurring revenue and adjusted quick ratio covenants. Under the Fourth Amendment, the Company must comply with certain financial covenants, including recurring revenue and adjusted quick ratio covenants, as defined. The interest rate will increase by 3.00% if the Company is not able to meet the financial covenants or has any other event of default, until cured. Failure to comply with these covenants, or the occurrence of an event of default, could permit the lender under the Fourth Amendment to declare all amounts outstanding under the Fourth Amendment, together with accrued interest and fees, to be immediately due and payable. In addition, the Fourth Amendment is secured by substantially all of our assets. The Company was in compliance with all covenants under the Fourth Amendment and Second Amendment as of March 31, 2016 and 2015, respectively. The weighted-average interest rate for long-term debt was 4.50% per annum at March 31, 2016 and 2015. The Company has assessed these refinancing activities and determined they were modifications and not an extinguishment under ASC 470, Debt Future minimum principal payment obligations due under the Company’s loan agreements are as follows: Year Ending March 31, 2017 $ 4,941 2018 1,991 $ 6,932 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. Related Party Transactions Three of our current shareholders, who collectively owned more than 40% of our outstanding shares as of March 31, 2016 and 2015, respectively, were customers of the Company during the periods included in the consolidated financial statements. Revenue recognized during the years ended March 31, 2016, 2015 and 2014 and accounts receivable outstanding as of March 31, 2016 and 2015 related to these transactions was not material. Additionally, two of these shareholders provide certain services to the Company. Amounts paid to these shareholders in relation to arrangements for these services was not material for the years ended March 31, 2016, 2015 and 2014. |
Convertible Preferred Shares an
Convertible Preferred Shares and Shareholders' Equity (Deficit) | 12 Months Ended |
Mar. 31, 2016 | |
Text Block [Abstract] | |
Convertible Preferred Shares and Shareholders' Equity (Deficit) | 7. Convertible Preferred Shares and Shareholders’ Equity (Deficit) As of March 31, 2015, the authorized share capital of the Company consisted of 1,003,300,000 ordinary shares, £0.000001 par value and 75,458,210 convertible preferred shares. In connection with the share-for-share exchange and share consolidation discussed in Note 1, the authorized share capital of the Company was amended to consist of 118,657,039 ordinary shares, $0.012 par value per share, consisting of 8,107,039 Founder Shares, 70,000,000 Class A Shares, 40,000,000 Class B Shares, and 550,000 Class C Shares and 12,576,364 preferred shares, $0.012 par value, consisting of 7,051,814 Series A Preferred Shares and 5,524,550 Series B Preferred Shares. This transaction was accounted for as a change in reporting entity and the accompanying consolidated financial statements and related notes have been retroactively revised to reflect this change. Under our Memorandum and Articles of Association that became effective upon the IPO, our authorized share capital was increased to consist of 300,000,000 ordinary shares, nominal value $0.012 per share and 5,000,000 preferred shares, nominal value $0.012 per share. As of March 31, 2015, the Company’s convertible preferred shares outstanding were as follows: Original Issue Price per Share Shares Liquidation Amount Carrying Value Authorized Outstanding Series A Convertible Preferred Shares (1) $ 2.95 7,051,814 7,051,814 $ 20,816 $ 20,583 Series B Convertible Preferred Shares $ 7.24 5,524,550 5,524,550 40,000 38,722 12,576,364 12,576,364 $ 60,816 $ 59,305 (1) Translated using the British pound to U.S. dollar exchange rate as of the date of issuance of 1.601. On November 19, 2015, the Company completed its initial public offering, or IPO, in which it issued and sold 7,750,000 ordinary shares at a public offering price of $10.00 per share. The Company received net proceeds of $68.3 million after deducting underwriting discounts and commissions and other offering expenses of $9.2 million. Immediately prior to the consummation of the IPO, all of the then-outstanding series of ordinary shares were redesignated as an aggregate of 33,694,703 ordinary shares, and upon consummation of the IPO, all of the then-outstanding convertible preferred shares automatically converted into an aggregate of 12,576,364 ordinary shares. Under our Memorandum and Articles of Association that became effective upon the IPO, each ordinary share entitles the holder to one vote for each share on all matters submitted to a vote of our shareholders at all meetings of shareholders and written actions in lieu of meetings. The holders of ordinary shares are entitled to receive dividends, if and when declared by the Board. No dividends have been declared or paid by the Company through March 31, 2016. At March 31, 2016, the Company has reserved the following ordinary shares for future issuance: At March 31, Options outstanding under share option plans 8,069,866 Unvested restricted share units 42,224 Options and awards available for future grant under the 2015 Plan 5,999,375 Shares reserved for issuance under ESPP 1,100,000 Total authorized ordinary shares reserved for future issuance 15,211,465 |
Share-Based compensation
Share-Based compensation | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based compensation | 8. Share-based compensation At March 31, 2016, the Company has four share-based compensation plans and an employee stock purchase plan, which are more fully described below. Prior to the IPO, the Company granted share-based awards under three share option plans which are the Mimecast Limited 2007 Key Employee Share Option Plan (the 2007 Plan), the Mimecast Limited 2010 EMI Share Option Scheme (the 2010 Plan), and the Mimecast Limited Approved Share Option Plan (the Approved Plan) (the 2007 Plan, the 2010 Plan and the Approved Plan, collectively, the Historical Plans). Upon the closing of the IPO, the Mimecast Limited 2015 Share Option and Incentive Plan (the 2015 Plan) and the 2015 Employee Stock Purchase Plan (the 2015 ESPP) became effective. Subsequent to the IPO, future grants of share-based awards will be made under the 2015 Plan and no further grants under the Historical Plans are permitted. The 2015 Plan was adopted by our board of directors on September 2, 2015, approved by our shareholders on November 4, 2015 and became effective on the date of the Company’s IPO. The 2015 Plan allows the compensation committee to make equity-based incentive awards to our officers, employees, non-employee directors and consultants. Initially, a total of 5,500,000 ordinary shares were reserved for the issuance of awards under the 2015 Plan. This number is subject to adjustment in the event of a share split, share dividend or other change in our capitalization. The 2015 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2016, by 5% of the outstanding number of ordinary shares on the immediately preceding December 31 or such lesser number of shares as determined by our board of directors. In September 2015, our board of directors adopted the Mimecast Limited 2015 Employee Share Purchase Plan (ESPP), which was approved by our shareholders on November 4, 2015. The ESPP initially reserves and authorizes for issuance a total of 1,100,000 ordinary shares. This number is subject to adjustment in the event of a share split, share dividend or other change in our capitalization. Participating employees of the Company may purchase ordinary shares during pre-specified purchase periods at a price equal to the lesser of 85% of the fair market value of an ordinary share of the Company at the beginning of the purchase period or 85% of the fair market value of an ordinary share of the Company at the end of the purchase period. The Board has not determined the date on which the initial purchase period will commence under the ESPP. Under the 2015 Plan, the share option price may not be less than the fair market value of the ordinary shares on the date of grant and the term of each share option may not exceed 10 years from the date of grant. Share options typically vest over 4 years, but vesting provisions can vary based on the discretion of the Board. We settle share options exercises under the 2015 Plans through newly issued shares. The Company’s ordinary shares underlying any awards that are forfeited, canceled, withheld upon exercise of an option, or settlement of an award to cover the exercise price or tax withholding, or otherwise terminated other than by exercise will be added back to the shares available for issuance under the 2015 Plan. Under the Historical Plans, share-based awards have a term of 10 years from the date of grant and typically vest over 4 years, however, vesting provisions could vary based on the discretion of the Board. Subsequent to the Company’s IPO, the Company’s ordinary shares underlying any awards issued under the Historical Plans that are forfeited, canceled, withheld upon exercise of an option, or settlement of an award to cover the exercise price or tax withholding, or otherwise terminated other than by exercise will be not be added back to the shares available for issuance. Certain awards granted by the Company under the Historical Plans are subject to service-based vesting conditions and a performance-based vesting condition based on a liquidity event, defined as either a change of control or an IPO. As a result, no compensation cost related to share-based awards with these performance conditions had been recognized through the date of the Company’s IPO, as the Company had determined that a liquidity event was not probable. Upon the IPO, 100% of the unvested portion of options granted under the Historical Plans prior to May 13, 2014 became vested. For options issued to employees other than those in our US subsidiary, 25% of the vested shares underlying options became exercisable immediately upon the listing, 50% of the shares underlying options will become exercisable 12 months following the date of the listing, and 25% of the shares underlying options will become exercisable 24 months following the date of the listing. Upon consummation of the IPO, the Company began to record expense for these awards using the accelerated attribution method over the remaining service period. Options granted on or after May 13, 2014 under the 2010 Plan, and the Approved Plan shall continue vesting as set forth in the option award agreements. The number of options available for future grant under the Plans as of March 31, 2016 was 5,999,375. Share-based compensation expense recognized under the Plans in the accompanying consolidated statements of operations was as follows: Year Ended March 31, 2016 2015 2014 (in thousands) Cost of revenue $ 633 $ 151 $ 151 Research and development 1,711 544 291 Sales and marketing 3,180 1,684 395 General and administrative 2,362 3,047 395 Total share-based compensation expense $ 7,886 $ 5,426 $ 1,232 Share option activity under the Plans for the year ended March 31, 2016 was as follows: Number of Weighted Average Weighted Average Aggregate Outstanding at March 31, 2015 5,631,854 $ 1.84 5.91 $ 44,591 Options granted 3,726,410 $ 8.84 Options exercised (940,187 ) $ 0.94 Options forfeited and cancelled (348,211 ) $ 5.99 Outstanding at March 31, 2016 8,069,866 $ 5.00 7.16 $ 38,541 Exercisable at March 31, 2016 2,591,492 $ 2.27 5.51 $ 19,340 Exercisable and expected to be exercisable at March 31, 2016 (2) 7,884,565 $ 4.91 7.10 $ 38,336 (1) As of March 31, 2016, the aggregate intrinsic value was calculated based on the positive difference, if any, between the closing price of our ordinary shares on the NASDAQ exchange on March 31, 2016 and the exercise price of the underlying options. As of March 31, 2015, the aggregate intrinsic value was calculated based on the positive difference, if any, between the estimated fair value of our ordinary shares and the exercise price of the underlying options. (2) This represents the number of exercisable options plus the number of options expected to become exercisable as of March 31, 2016 based on the options outstanding as of March 31, 2016 adjusted for the estimated forfeiture rate. (3) Certain of the Company’s option grants have an exercise price denominated in British pound. The weighted-average exercise price at the end of each reporting period was translated into U.S. dollars using the exchange rate at the end of the period. The weighted-average exercise price for the options granted, exercised, forfeited and expired was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or expiration, as appropriate. The total intrinsic value of options exercised was $8,198, $5,112 and $234 for the years ended March 31, 2016, 2015 and 2014, respectively. Total cash proceeds from such option exercises were $885, $632 and $30 for the years ended March 31, 2016, 2015 and 2014, respectively. In 2011, the Company granted its two founders a total of 550,000 restricted share awards, which vest over a period of four years, 25% at the end of year one and then 6.25% quarterly over the remaining three years. No additional restricted share awards were issued subsequent to this grant. As of March 31, 2015, a total of 31,250 awards remained unvested. As of March 31, 2015, the aggregate intrinsic value of unvested shares was $0.3 million. As of March 31, 2016, all restricted share awards were fully vested. In November 2015, the Company granted restricted share units (RSUs) to two of its Directors in the amount of 25,000 and 20,000, respectively. The RSU in the amount of 25,000 vests over three years on a monthly basis. The RSU in the amount of 20,000 cliff vests over a five month period. As of March 31, 2016, a total of 42,224 awards remained unvested and the aggregate intrinsic value of unvested shares was $0.4 million. As of March 31, 2016, there was approximately $13.2 million of unrecognized share-based compensation, net of estimated forfeitures, related to unvested share-based awards subject to service-based vesting conditions, which is expected to be recognized over a weighted-average period of 3.6 years. The total unrecognized share-based compensation cost will be adjusted for future changes in estimated forfeitures. As of March 31, 2016, there was approximately $2.9 million of unrecognized share-based compensation, net of estimated forfeitures, related to unvested share-based awards, subject to both service-based vesting conditions and a performance-based vesting condition based on a liquidity event, which occurred upon the Company’s IPO. These awards are expected to be recognized over a weighted-average period of 1.1 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies The Company leases its facilities under non-cancelable operating leases with various expiration dates through October 2020. Rent expense was $3.2 million, $2.8 million and $2.6 million for the years ended March 31, 2016, 2015 and 2014, respectively. The Company also has non-cancelable commitments related to its data centers. Future minimum payments for our operating leases and data centers as of March 31, 2016 are as follows: Year Ending March 31, Operating Data 2017 $ 3,539 $ 10,125 2018 3,381 10,142 2019 3,159 7,646 2020 2,091 4,787 2021 726 801 Thereafter — 659 Total $ 12,896 $ 34,160 Certain amounts included in the table above relating to co-location leases for the Company’s servers includes usage based charges in addition to base rent. The Company has outstanding letters of credit of $0.5 million and $0.4 million related to certain operating leases as of March 31, 2016 and 2015, respectively. Litigation The Company, from time to time, may be party to litigation arising in the ordinary course of its business. The Company was not subject to any material legal proceedings during the years ended March 31, 2016, 2015 and 2014, and, to the best of its knowledge, no material legal proceedings are currently pending or threatened. Indemnification The Company typically enters into indemnification agreements with customers in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses suffered or incurred as a result of claims of intellectual property infringement. These indemnification agreements are provisions of the applicable customer agreement. Based on when clients first sign an agreement for the Company’s service, the maximum potential amount of future payments the Company could be required to make under certain of these indemnification agreements is unlimited. Based on historical experience and information known as of March 31, 2016, the Company has not incurred any costs for the above guarantees and indemnities. In certain circumstances, the Company warrants that its services will perform in all material respects in accordance with its standard published specification documentation in effect at the time of delivery of the services to the customer for the term of the agreement. To date, the Company has not incurred significant expense under its warranties and, as a result, the Company believes the estimated fair value of these agreements is immaterial. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans We maintain a defined contribution savings plan under Section 401(k) of the Internal Revenue Code (the 401(k) Plan) covering all U.S. employees who satisfy certain eligibility requirements. The 401(k) Plan allows each participant to defer a percentage of their eligible compensation subject to applicable annual limits pursuant to the limits established by the Internal Revenue Service. We may, at our discretion, make contributions in the form of matching contributions or profit-sharing contributions. To date, we have not made any matching or profit-sharing contributions. In addition, we contribute to a defined contribution savings plan for our employees in the United Kingdom who satisfy certain eligibility requirements. The plan allows each participant to defer a percentage of their compensation, and the Company contributes an additional 1% of all wages for those employees in the scheme on a monthly basis. The Company’s contributions have not been material to any individual year. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 11. Segment and Geographic Information Disclosure requirements about segments of an enterprise and related information establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in interim financial reports issued to shareholders. Operating segments are defined as components of an enterprise about which separate discrete financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one operating segment. Geographic Data The Company allocates, for the purpose of geographic data reporting, its revenue based upon the location of the contracting subsidiary. Total revenue by geographic area was as follows: Year ended March 31, 2016 2015 2014 Revenue: United States $ 60,970 $ 43,574 $ 29,636 United Kingdom 55,276 48,595 37,694 South Africa 22,342 21,817 18,716 Other 3,253 2,099 2,269 Total revenue $ 141,841 $ 116,085 $ 88,315 Property and equipment, net by geographic location consists of the following: At March 31, 2016 2015 United States $ 11,363 $ 11,031 United Kingdom 7,677 7,883 Australia 2,886 192 South Africa 2,569 3,736 Other 311 317 Total $ 24,806 $ 23,159 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes (Loss) income before the provision for income taxes consists of the following: Year ended March 31, 2016 2015 2014 United Kingdom $ 942 $ 5,955 $ (4,033 ) Foreign (3,321 ) (5,518 ) (12,838 ) (Loss) income before provision for income taxes $ (2,379 ) $ 437 $ (16,871 ) The provision for income taxes in the accompanying consolidated financial statements is comprised of the following: At March 31, 2016 2015 2014 Current tax expense: Domestic $ 154 $ — $ — Foreign 711 152 19 Total current tax expense 865 152 19 Deferred tax expense: Domestic — — — Foreign — — — Total deferred tax expense — — — Total provision for income taxes $ 865 $ 152 $ 19 The reconciliation of the United Kingdom statutory tax rate to the Company’s effective tax rate included in the accompanying consolidated statements of operations is as follows: Year ended March 31, 2016 2015 2014 Tax at statutory rate 20.0 % 21.0 % 20.0 % U.S. state taxes, net of federal (1.9 ) 9.9 — Foreign rate differential 18.0 (214.6 ) 10.7 Meals and entertainment (7.9 ) 24.3 (0.6 ) Branch income / loss 0.3 (2.7 ) (0.6 ) Share-based compensation (7.3 ) 90.8 (0.1 ) Foreign exchange 7.4 (215.4 ) (2.1 ) Non-deductible interest expense (13.9 ) 76.2 — R&D credit and R&D enhancement 7.9 — (4.4 ) Change in valuation allowance 48.1 243.5 (23.0 ) Deferred tax true-ups (61.0 ) — — Tax reserves (23.8 ) — — Provision to return (6.5 ) — — Non-deductible expenses (3.9 ) — — Effect of U.K. rate change (12.8 ) — — Other 0.9 1.8 — Effective Tax Rate (36.4 )% 34.8 % (0.1 )% Although the Company’s parent entity is organized under the laws of Jersey, our affairs are, and are intended to continue to be, managed and controlled in the United Kingdom for tax purposes and therefore we are resident in the United Kingdom for tax purposes and therefore we are resident in the United Kingdom for U.K. and Jersey tax purposes. The Company’s parent entity is domiciled in the United Kingdom and its earnings are subject to a statutory tax rate of 20.0%, 21.0% and 20.0% for the years ended March 31, 2016, 2015 and 2014, respectively. The Company’s effective tax rate differs from the statutory rate each year primarily due to the valuation allowance maintained against the Company’s net deferred tax assets, the jurisdictional mix of earnings (profits earned in foreign jurisdictions are taxed at different rates than the United Kingdom statutory tax rate), the effect of tax rate changes, tax reserves for uncertain tax positions and the impact of permanent differences (primarily related to non-deductible expenses, true-ups, and foreign exchange). Deferred tax assets and liabilities reflect the net tax effects of net operating loss carryovers and the temporary differences between the carrying amount of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) are as follows: At March 31, 2016 2015 Deferred tax assets/liabilities: (in thousands) Net operating loss carryforwards $ 12,362 $ 14,676 Share-based compensation 2,369 2,136 Deferred revenue 1,609 1,203 Fixed assets 1,097 509 Accrued compensation 732 624 Accrued costs 203 141 Deferred rent 284 159 Income tax credits 184 — Other 149 164 Gross deferred tax assets 18,989 19,612 Valuation allowance (18,355 ) (19,612 ) Prepaid expenses (139 ) — Fixed assets (442 ) — Other (53 ) — Deferred tax assets, net $ — $ — In assessing the ability to realize the Company’s net deferred tax assets, management considers various factors including taxable income in carryback years, future reversals of existing taxable temporary differences, tax planning strategies and projections of future taxable income, to determine whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Based on the cumulative losses that the Company has incurred in the jurisdictions in which it operates and consideration of other negative evidence, the Company has determined that the uncertainty regarding the realization of its deferred tax assets is sufficient to warrant the need for a full valuation allowance against its worldwide net deferred tax assets. The net decrease in the valuation allowance of approximately $1.3 million from 2015 to 2016 is primarily due to the impact of foreign exchange, the impact of deferred tax true-up adjustments and the operating results of the Company. As of March 31, 2016 and 2015, the Company had U.K. net operating loss carryforwards of approximately $10.3 million and $9.5 million, respectively. These net operating loss carryforwards do not expire. At March 31 2016 and 2015, the Company had U.S. federal net operating loss carryforwards of approximately $31.5 million and $30.4 million, respectively and U.S. state net operating loss carryforwards of approximately $24.4 million and $27.4 million, respectively. These net operating loss carryforwards expire at various dates through 2036. As of March 31, 2016 and 2015, the Company had South African net operating loss carryforwards of zero and $3.0 million, respectively. As of March 31, 2016 and 2015, the Company had Australian net operating loss carryforwards of approximately $7.7 million and $3.2 million, respectively. These net operating loss carryforwards do not expire. As of March 31, 2016, the Company had a U.K income tax credit carryforward of $0.2 million. This credit does not expire. Included in the March 31, 2016 net operating losses carryforwards above, the Company has U.S. federal, U.S. state, and U.K net operating losses of approximately $2.8 million, $2.8 million and $6.6 million, respectively, related to excess share-based compensation deductions. These net operating losses have been excluded from the above deferred tax table. In accordance with ASC 740 and ASC 718, recognition of these assets would occur upon the utilization of these deferred tax assets to reduce taxes payable and would result in a credit to additional paid-in capital within shareholders’ equity rather than the provision for income taxes. Under Sections 382 and 383 of the U.S. Internal Revenue Code, if a corporation undergoes an ownership change, the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes, such as research tax credits, to offset its post-change income and taxes may be limited. In general, an ownership change generally occurs if there is a cumulative change in our ownership by 5-percent shareholders that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under U.S. state tax laws. The Company believes that it has experienced an ownership change in the past and may experience ownership changes in the future as a result of future transactions in our share capital, some of which may be outside of the control of the Company. The Company is still in the process of determining whether historic ownership changes will result in any material limitation on the use of its U.S. net operating losses. As a result, if the Company earns net taxable income, its ability to use its pre-change net operating loss carryforwards, or other pre-change tax attributes, to offset U.S. federal and state taxable income and taxes may be subject to significant limitations. The Company previously adopted ASC 740-10, which clarifies the accounting for uncertainty in income taxes recognized in the financial statements. The Company had no unrecorded liabilities for uncertain tax positions upon adoption and the adoption did not have an impact on the Company’s balance sheet or retained earnings. As of March 31, 2016, the Company had liabilities for uncertain tax positions of $2.3 million, none of which, if recognized, would impact the Company’s effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: At March 31, (in thousands) Balance at April 1, 2015 $ — Additions based on tax positions related to current year 1,258 Additions for tax positions of prior years 1,068 Reductions for tax positions of prior years — Settlements — Balance at March 31, 2016 $ 2,326 Interest and penalty charges, if any, related to uncertain tax positions would be classified as income tax expense in the accompanying consolidated statements of operations. As of March 31, 2016 and 2015, the Company had no accrued interest or penalties related to uncertain tax positions. The Company is subject to taxation in the United Kingdom and several foreign jurisdictions. At March 31, 2016, the Company is no longer subject to examination by taxing authorities in the United Kingdom for years prior to March 31, 2015. The significant foreign jurisdictions in which the Company operates are no longer subject to examination by taxing authorities for years prior to March 31, 2013. In addition, net operating loss carryforwards in certain jurisdictions may be subject to adjustments by taxing authorities in future years in which they are utilized. The majority of the Company’s foreign subsidiaries have incurred losses since inception and do not have any undistributed earnings as of March 31, 2016. Income taxes have not been provided on the undistributed earnings of certain foreign subsidiaries of approximately $1.4 million because such earnings are considered to be indefinitely reinvested in the business. The amount of tax payable on the earnings that are indefinitely reinvested in foreign operations would be immaterial. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events The Company has completed an evaluation of all subsequent events after the audited balance sheet date of March 31, 2016 through May 25, 2016, the date this Annual Report on Form 20-F was filed with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of March 31, 2016, and events which occurred subsequently but were not recognized in the financial statements. The Company has concluded that no subsequent events have occurred that require disclosure within these consolidated financial statements. |
Quarterly Results of Operations
Quarterly Results of Operations Data (Unaudited) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations Data (Unaudited) | 14. Quarterly results of operations data (unaudited) The following tables set forth our unaudited quarterly consolidated statements of operations for each of the eight quarters in the period ended March 31, 2016. We have prepared the quarterly consolidated statements of operations data on a basis consistent with the audited consolidated financial statements included elsewhere in this Annual Report on Form 20-F. In the opinion of management, the financial information reflects all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of this data. This information should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 20-F. The results of historical periods are not necessarily indicative of the results to be expected for any future period. Quarter ended Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, (in thousands, except per share amounts) Revenue $ 26,943 $ 28,603 $ 29,824 $ 30,715 $ 33,328 $ 34,507 $ 37,130 $ 36,876 Gross profit 18,018 19,466 20,240 21,540 23,452 24,314 26,479 25,787 (Loss) income from operations (2,651 ) (5,067 ) 2,619 1,669 2,110 1,503 (2,138 ) (4,049 ) Net (loss) income (4,048 ) (3,384 ) 4,064 3,653 (2,249 ) 2,168 (1,199 ) (1,964 ) Net (loss) income applicable to ordinary shareholders—basic (4,048 ) (3,384 ) 2,920 2,630 (2,249 ) 1,572 (1,199 ) (1,964 ) Net (loss) income applicable to ordinary shareholders—diluted (4,048 ) (3,384 ) 3,003 2,705 (2,249 ) 1,612 (1,199 ) (1,964 ) Net (loss) income per share applicable to ordinary shareholders: Basic $ (0.13 ) $ (0.10 ) $ 0.09 $ 0.08 $ (0.07 ) $ 0.05 $ (0.03 ) $ (0.04 ) Diluted $ (0.13 ) $ (0.10 ) $ 0.08 $ 0.07 $ (0.07 ) $ 0.04 $ (0.03 ) $ (0.04 ) Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders: Basic 31,884 32,230 32,505 32,802 33,066 33,673 42,514 54,172 Diluted 31,884 32,230 36,146 36,449 33,066 36,991 42,514 54,172 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition, allowances for doubtful accounts, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, expensing and capitalization of research and development costs for internal-use software, the determination of the fair value of share-based awards issued, share-based compensation expense, and the recoverability of the Company’s net deferred tax assets and related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. |
Subsequent Events Considerations | Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. See Note 13. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity date of 90 days or less from the date of purchase to be cash equivalents. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates such determination at each balance sheet date. Cash and cash equivalents consist of cash on deposit with banks and amounts held in interest-bearing money market funds. Cash equivalents are carried at cost, which approximates their fair market value. |
Revenue Recognition | Revenue Recognition The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s cloud services and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of set-up and ingestion fees as well as training fees. The Company recognizes revenue when all of the following conditions are satisfied: • there is persuasive evidence of an arrangement; • the service has been or is being provided to the customer; • the collection of the fees is probable; and • the amount of fees to be paid by the customer is fixed or determinable. The Company’s subscription arrangements provide customers the right to access its hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. Accordingly, the Company recognizes revenue in accordance with ASC 605, Revenue Recognition Revenue Recognition The Company’s products and services are sold directly by the Company’s sales force and also indirectly by third-party resellers. In accordance with the provisions of ASC 605, the Company has considered certain factors in determining whether the end-user or the third-party reseller is the Company’s customer in arrangements involving resellers. The Company has concluded that in the majority of transactions with resellers, the reseller is the Company’s customer. In these arrangements, the Company considered that it is the reseller, and not the Company, that has the relationship with the end-user. Specifically, the reseller has the ability to set pricing with the end-user and the credit risk with the end-user is borne by the reseller. Further, the reseller is not obligated to report its transaction price with the end-user to the Company, and in the majority of transactions, the Company is unable to determine the amount paid by the end-user customer to the reseller in these transactions. As a result of such considerations, revenue for these transactions is presented in the accompanying consolidated statements of operations based upon the amount billed to the reseller. For transactions where the Company has determined that the end-user is the ultimate customer, revenue is presented in the accompanying consolidated statements of operations based on the transaction price with the end-user. Subscription and support revenue is recognized ratably over the term of the contract, typically one year in duration, beginning on the commencement date of each contract. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. The Company’s professional services contracts are on a time and material basis. When these services are not combined with subscription revenues as a single unit of accounting, as discussed below, these revenues are recognized as the services are rendered. Revenue is presented net of any taxes collected from customers. At times, the Company may enter into arrangements with multiple-deliverables that generally include multiple subscriptions, premium support and professional services. For arrangements with multiple deliverables, the Company evaluates each deliverable to determine whether it represents a separate unit of accounting based on the following criteria: (a) whether the delivered item has value to the customer on a stand-alone basis; and (b) if the contract includes a general right of return relative to the delivered item, whether delivery or performance of the undelivered items is considered probable and substantially within our control. If the deliverables are determined to qualify as separate units of accounting, consideration is allocated to each unit of accounting based on the units’ relative selling prices. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of fair value (VSOE), if available, or its best estimate of selling price (BESP), if VSOE is not available. The Company has determined that third-party evidence of selling price (TPE) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. Subscription services have standalone value as such services are often sold separately. In determining whether professional services sold together with the subscription services have standalone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the determination that customers cannot resell the services that Mimecast provides, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. Professional services sold at the time of the multiple-element subscription arrangement typically include customer set-up and ingestion services. To date, the Company has concluded that all of these professional services included in executed multiple-deliverable arrangements do not have standalone value and are therefore not considered separate units of accounting. These professional services are purchased by customers only in contemplation of, or in concert with, purchasing one of the hosted subscription solutions and, therefore, are not considered a substantive service, such that the provision of such service does not reflect the culmination of the earnings process. Mimecast does not sell these services without the related underlying primary subscription as there would be no practical interest or need on the behalf of a customer to buy these services without the underlying subscription. The Company does not have any knowledge of other vendors selling these services on a stand-alone basis and there is no way for an end-user to resell the deliverable. Accordingly, the deliverables within the arrangement including both subscription services and other professional services are accounted for as a single unit of accounting in accordance with the guidance in SAB No. 104. On these occasions, revenue for the professional services deliverables in the arrangement is recognized on a straight-line basis over the contractual term or the average customer life, as further described below. |
Deferred Revenue | Deferred Revenue Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as the revenue recognition criteria are met. In addition, deferred revenue consists of amounts paid by customers related to upfront set-up or ingestion fees. Revenue related to such services is recognized over the contractual term or the average customer life, whichever is longer. The estimated customer life has been determined to be five years. Deferred revenue that is expected to be recognized during the succeeding twelve month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent in the accompanying consolidated balance sheets. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of expenses related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and share-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services team, in addition to third-party service provider costs such as data center and networking expenses, allocated overhead and depreciation expense. |
Concentration of Credit Risk and Off-Balance Sheet Risk | Concentration of Credit Risk and Off-Balance Sheet Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with major financial institutions of high-credit quality. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. Credit risk with respect to accounts receivable is dispersed due to our large number of customers. The Company’s accounts receivable are derived from revenue earned from customers primarily located in the United Kingdom, the United States, and South Africa. The Company generally does not require its customers to provide collateral or other security to support accounts receivable. Credit losses historically have not been significant and the Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. As of March 31, 2016 and 2015, no individual customer represented more than 10% of our accounts receivable. During the years ended March 31, 2016, 2015 and 2014, no individual customer represented more than 10% of our revenue. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when a loss is reasonably expected to occur. The allowance for doubtful accounts is established to represent the best estimate of the net realizable value of the outstanding accounts receivable. The development of the allowance for doubtful accounts is based on a review of past due amounts, historical write-off and recovery experience, as well as aging trends affecting specific accounts and general operational factors affecting all amounts. In addition, factors are developed utilizing historical trends in bad debts, returns and allowances. We consider current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, our estimates of the recoverability of receivables could be further adjusted. For the years ended March 31, 2016, 2015 and 2014, bad debt expense was $91, $133 and $23, respectively. The allowance for doubtful accounts as of March 31, 2016 and 2015 was not material. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, and are depreciated using the straight-line method over the estimated useful life of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net (loss) income in the period of retirement or sale. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. The Company reviews its property and equipment whenever events or changes in circumstances indicate that the carrying value of certain assets might not be recoverable. In these instances, the Company recognizes an impairment loss when it is probable that the estimated cash flows are less than the carrying value of the asset. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. During this review, the Company re-evaluates the significant assumptions used in determining the original cost and estimated lives of long-lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long-lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the assets’ recovery. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. For the years ended March 31, 2016, 2015 and 2014, the Company did not identify any impairment of its long-lived assets. |
Disclosure of Fair Value of Financial Instruments | Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and borrowings under the Company’s long-term debt arrangements, approximated their fair values at March 31, 2016 and 2015 due to the short-term nature of these instruments, and for the long-term debt, the interest rates the Company believes it could obtain for borrowings with similar terms. The Company has evaluated the estimated fair value of financial instruments using available market information. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. See below for further discussion. |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: • Level 1 inputs—Unadjusted observable quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 inputs—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs—Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and nonrecurring basis to determine the appropriate level to classify them for each reporting period. Cash equivalents include money market funds with original maturities of 90 days or less from the date of purchase. The fair value measurement of these assets is based on quoted market prices in active markets for identical assets and, therefore, these assets are recorded at fair value on a recurring basis and classified as Level 1 in the fair value hierarchy for all periods presented. As of March 31, 2016 and 2015, cash equivalents held in money market funds totaled $10.7 million and $10.9 million, respectively. As of March 31, 2016 and 2015, we did not have any assets or liabilities measured at fair value on a recurring basis using significant other observable inputs (Level 2) or on a recurring basis using significant unobservable inputs (Level 3). The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities, and did not elect the fair value option for any financial assets and liabilities transacted in the years ended March 31, 2016, 2015 and 2014. |
Software Development Costs | Software Development Costs Costs incurred to develop software applications used in the Company’s SaaS platform consist of certain direct costs of materials and services incurred in developing or obtaining internal-use computer software, and payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding, and testing activities. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs incurred for maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. During the years ended March 31, 2016, 2015 and 2014, the Company believes the substantial majority of its development efforts were either in the preliminary project stage of development or in the operation stage (post-implementation), and accordingly, no costs have been capitalized during these periods. These costs are included in the accompanying consolidated statements of operations as research and development expense. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. We determine the functional currency for our foreign subsidiaries by reviewing the currencies in which its respective operating activities occur. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (i) asset and liability accounts at period-end rates, (ii) income statement accounts at weighted-average exchange rates for the period, and (iii) shareholders’ equity accounts at historical exchange rates. Foreign exchange transaction gains and losses are included in foreign exchange (expense) income in the accompanying consolidated statements of operations. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive (loss) income in the accompanying consolidated balance sheets. |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Net (loss) income per share information is determined using the two-class method, which includes the weighted-average number of ordinary shares outstanding during the period and other securities that participate in dividends (a participating security). The Company considers the convertible preferred shares to be participating securities because they include rights to participate in dividends with the ordinary shares. Under the two-class method, basic net (loss) income per share attributable to ordinary shareholders is computed by dividing the net (loss) income attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted net (loss) income per share attributable to ordinary shareholders is computed using the more dilutive of (1) the two-class method or (2) the if-converted method. The Company allocates net income first to preferred shareholders based on dividend rights under the Company’s articles of association and then to preferred and ordinary shareholders based on ownership interests. Net losses are not allocated to preferred shareholders as they do not have an obligation to share in the Company’s net losses. Diluted net (loss) income per share gives effect to all potentially dilutive securities. Potential dilutive securities consist of ordinary shares issuable upon the exercise of share options and ordinary shares issuable upon the conversion of our convertible preferred shares. The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share data): Year Ended March 31, 2016 2015 2014 Numerator: Net (loss) income $ (3,244 ) $ 285 $ (16,890 ) Net (loss) income applicable to participating securities — 80 — Net (loss) income applicable to ordinary shareholders—basic $ (3,244 ) $ 205 $ (16,890 ) Net (loss) income $ (3,244 ) $ 285 $ (16,890 ) Net income (loss) applicable to participating securities — 75 — Net (loss) income applicable to ordinary shareholders—diluted $ (3,244 ) $ 210 $ (16,890 ) Denominator: Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders—basic 40,826 32,354 31,719 Dilutive effect of share equivalents resulting from share options and restricted shares — 3,721 — Weighted average number of ordinary shares used in computing net (loss) income per share—diluted 40,826 36,075 31,719 Net (loss) income per share applicable to ordinary shareholders: Basic $ (0.08 ) $ 0.01 $ (0.53 ) Diluted $ (0.08 ) $ 0.01 $ (0.53 ) The following potentially dilutive ordinary share equivalents have been excluded from the calculation of diluted weighted-average shares outstanding for the years ended March 31, 2016, 2015 and 2014 as their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended March 31, 2016 2015 2014 Share options outstanding 6,870 — 6,251 Unvested restricted share units 42 — — Convertible preferred shares 8,144 — 12,576 |
Advertising and Promotion Costs | Advertising and Promotion Costs Expenses related to advertising and promotion of solutions is charged to sales and marketing expense as incurred. We incurred advertising expenses of $5.6 million, $3.7 million and $3.2 million during the years ended March 31, 2016, 2015 and 2014, respectively. |
Income Taxes | Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes We recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such position are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. As of March 31, 2016 and 2015, we did not have any uncertain tax positions that would impact our net tax provision. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation share-based The Company accounts for transactions in which services are received from non-employees in exchange for equity instruments based on the fair value of such services received, or of the equity instruments issued, whichever is more reliably measured. The Company determines the total share-based compensation expense related to non-employee awards using the Black-Scholes option-pricing model. Additionally, in accordance with ASC 505, Equity-Based Payments to Non-Employees The fair value of each option grant issued under the Company’s share-based compensation plans was estimated using the Black-Scholes option-pricing model that used the weighted-average assumptions presented in the following table: Year ended March 31, 2016 2015 2014 Expected term (in years) 6.2 6.3 6.4 Risk-free interest rate 2.0 % 3.1 % 2.5 % Expected volatility 42.7 % 52.6 % 53.0 % Expected dividend yield — % — % — % Estimated grant date fair value per ordinary share $ 9.80 $ 7.20 $ 3.00 The weighted-average fair value of options granted to employees during the years ended March 31, 2016, 2015 and 2014 was $4.69, $4.02 and $1.56 per share, respectively. The expected term of options for service-based awards has been determined utilizing the “Simplified Method,” as the Company does not have sufficient historical share option exercise information on which to base its estimate. The Simplified Method is based on the average of the vesting tranches and the contractual life of each grant. In addition, the expected term for certain share-based awards which are subject to service-based and performance-based vesting conditions, is based on management’s estimate of the period of time for which the instrument is expected to be outstanding, factoring in certain assumptions such as the vesting period of the award, length of service and/or the location of the employee. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the share option. Since there was no public market for its ordinary shares prior to completion of the Company’s initial public offering (IPO) and as the Company’s shares have been publicly traded for a limited time, the Company determined the expected volatility for options granted based on an analysis of reported data for a peer group of companies that issue options with substantially similar terms. The expected volatility of options granted has been determined using an average of the historical volatility measures of this peer group of companies. The Company has not paid, nor anticipates paying, cash dividends on its ordinary shares; therefore, the expected dividend yield is assumed to be zero. Prior to the IPO, in the absence of an active market for the Company’s ordinary shares, the Board, the members of which the Company believes have extensive business, finance, and venture capital experience, were required to estimate the fair value of the Company’s ordinary shares at the time of each grant of a share-based award. The Company and the Board utilized various valuation methodologies in accordance with the framework of the American Institute of Certified Public Accountants’ Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, to estimate the fair value of its ordinary shares. Each valuation methodology includes estimates and assumptions that require the Company’s judgment. These estimates and assumptions include a number of objective and subjective factors, in determining the value of the Company’s ordinary shares at each grant date, including the following factors: (1) prices paid for the Company’s convertible preferred shares, which the Company had sold to outside investors in arm’s-length transactions, and the rights, preferences, and privileges of the Company’s convertible preferred shares and ordinary shares; (2) valuations performed by an independent valuation specialist; (3) the Company’s stage of development and revenue growth; (4) the fact that the grants of share-based awards involved illiquid securities in a private company; and (5) the likelihood of achieving a liquidity event for the ordinary shares underlying the share-based awards, such as an IPO or sale of the Company, given prevailing market conditions. The Company believes this methodology to be reasonable based upon the Company’s internal peer company analyses, and further supported by several arm’s-length transactions involving the Company’s convertible preferred shares. As the Company’s ordinary shares were not actively traded prior to the IPO, the determination of fair value involves assumptions, judgments and estimates. If different assumptions were made, share-based compensation expense, consolidated net (loss) income and consolidated net (loss) income per share could have been significantly different. Since the IPO, the fair value of the Company’s ordinary shares at the time of each grant of a share-based award have been based on the market value at the time of each grant. See Note 8 for a summary of the share option activity for the years ended March 31, 2016 and 2015. |
Leases | Leases The Company categorizes leases at their inception as either operating or capital leases. On certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis once control of the space is achieved, without regard to deferred payment terms, such as rent holidays that defer the commencement date of required payments or escalating payment amounts. The difference between required lease payments and rent expense has been recorded as deferred rent. Additionally, incentives received are treated as a reduction of costs over the term of the agreement, as they are considered an inseparable part of the lease agreement. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner sources. Comprehensive income (loss) consists of net (loss) income and other comprehensive income (loss), which includes certain changes in equity that are excluded from net (loss) income. Specifically, cumulative foreign currency translation adjustments are included in accumulated other comprehensive income (loss). As of March 31, 2016 and 2015, accumulated other comprehensive income (loss) is presented separately on the consolidated balance sheets and consists entirely of cumulative foreign currency translation adjustments. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. 2014-15, In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810)-Amendments to the Consolidation Analysis, In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 |
Calculation of Basic and Diluted Net (Loss) Income Per Share | The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share data): Year Ended March 31, 2016 2015 2014 Numerator: Net (loss) income $ (3,244 ) $ 285 $ (16,890 ) Net (loss) income applicable to participating securities — 80 — Net (loss) income applicable to ordinary shareholders—basic $ (3,244 ) $ 205 $ (16,890 ) Net (loss) income $ (3,244 ) $ 285 $ (16,890 ) Net income (loss) applicable to participating securities — 75 — Net (loss) income applicable to ordinary shareholders—diluted $ (3,244 ) $ 210 $ (16,890 ) Denominator: Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders—basic 40,826 32,354 31,719 Dilutive effect of share equivalents resulting from share options and restricted shares — 3,721 — Weighted average number of ordinary shares used in computing net (loss) income per share—diluted 40,826 36,075 31,719 Net (loss) income per share applicable to ordinary shareholders: Basic $ (0.08 ) $ 0.01 $ (0.53 ) Diluted $ (0.08 ) $ 0.01 $ (0.53 ) |
Dilutive Ordinary Shares Excluded from Calculation of Diluted Weighted Average Shares Outstanding | The following potentially dilutive ordinary share equivalents have been excluded from the calculation of diluted weighted-average shares outstanding for the years ended March 31, 2016, 2015 and 2014 as their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended March 31, 2016 2015 2014 Share options outstanding 6,870 — 6,251 Unvested restricted share units 42 — — Convertible preferred shares 8,144 — 12,576 |
Summary of Weighted Average Assumption Utilized to Determine Fair Value of Option | The fair value of each option grant issued under the Company’s share-based compensation plans was estimated using the Black-Scholes option-pricing model that used the weighted-average assumptions presented in the following table: Year ended March 31, 2016 2015 2014 Expected term (in years) 6.2 6.3 6.4 Risk-free interest rate 2.0 % 3.1 % 2.5 % Expected volatility 42.7 % 52.6 % 53.0 % Expected dividend yield — % — % — % Estimated grant date fair value per ordinary share $ 9.80 $ 7.20 $ 3.00 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consists of the following: At March 31, 2016 2015 Research and development investment tax credits $ 1,758 $ 2,568 Prepaid expenses 4,342 2,087 Other current assets 1,262 327 Total prepaid expenses and other current assets $ 7,362 $ 4,982 |
Schedule of Property and Equipment, Net | Property and equipment consists of the following: At March 31, 2016 2015 Computer equipment $ 54,935 $ 46,078 Leasehold improvements 4,096 2,867 Furniture and fixtures 1,837 1,618 Office equipment 253 256 61,121 50,819 Less: Accumulated depreciation and amortization (36,315 ) (27,660 ) Property and equipment, net $ 24,806 $ 23,159 |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following: At March 31, 2016 2015 Accrued payroll and related benefits $ 8,620 $ 7,166 Accrued taxes payable 3,491 1,866 Other accrued expenses 2,999 1,870 Total accrued expenses and other current liabilities $ 15,110 $ 10,902 |
Other Non-current Liabilities | Other non-current liabilities consists of the following: At March 31, 2016 2015 Deferred rent $ 1,476 $ 1,760 Other non-current liabilities 645 367 Total other non-current liabilities $ 2,121 $ 2,127 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Future Minimum Principal Payment Obligations | Future minimum principal payment obligations due under the Company’s loan agreements are as follows: Year Ending March 31, 2017 $ 4,941 2018 1,991 $ 6,932 |
Convertible Preferred Shares 27
Convertible Preferred Shares and Shareholders' Equity (Deficit) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Text Block [Abstract] | |
Schedule of Issuances of Redeemable Convertible Preferred Stock | As of March 31, 2015, the Company’s convertible preferred shares outstanding were as follows: Original Issue Price per Share Shares Liquidation Amount Carrying Value Authorized Outstanding Series A Convertible Preferred Shares (1) $ 2.95 7,051,814 7,051,814 $ 20,816 $ 20,583 Series B Convertible Preferred Shares $ 7.24 5,524,550 5,524,550 40,000 38,722 12,576,364 12,576,364 $ 60,816 $ 59,305 (1) Translated using the British pound to U.S. dollar exchange rate as of the date of issuance of 1.601. |
Schedule of Ordinary Share Reserved for Future Issuance | At March 31, 2016, the Company has reserved the following ordinary shares for future issuance: At March 31, Options outstanding under share option plans 8,069,866 Unvested restricted share units 42,224 Options and awards available for future grant under the 2015 Plan 5,999,375 Shares reserved for issuance under ESPP 1,100,000 Total authorized ordinary shares reserved for future issuance 15,211,465 |
Share-Based compensation (Table
Share-Based compensation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Expense Recognized in Statements of Operations | Share-based compensation expense recognized under the Plans in the accompanying consolidated statements of operations was as follows: Year Ended March 31, 2016 2015 2014 (in thousands) Cost of revenue $ 633 $ 151 $ 151 Research and development 1,711 544 291 Sales and marketing 3,180 1,684 395 General and administrative 2,362 3,047 395 Total share-based compensation expense $ 7,886 $ 5,426 $ 1,232 |
Schedule of Share-Based Compensation, Stock Options, Activity | Share option activity under the Plans for the year ended March 31, 2016 was as follows: Number of Weighted Average Weighted Average Aggregate Outstanding at March 31, 2015 5,631,854 $ 1.84 5.91 $ 44,591 Options granted 3,726,410 $ 8.84 Options exercised (940,187 ) $ 0.94 Options forfeited and cancelled (348,211 ) $ 5.99 Outstanding at March 31, 2016 8,069,866 $ 5.00 7.16 $ 38,541 Exercisable at March 31, 2016 2,591,492 $ 2.27 5.51 $ 19,340 Exercisable and expected to be exercisable at March 31, 2016 (2) 7,884,565 $ 4.91 7.10 $ 38,336 (1) As of March 31, 2016, the aggregate intrinsic value was calculated based on the positive difference, if any, between the closing price of our ordinary shares on the NASDAQ exchange on March 31, 2016 and the exercise price of the underlying options. As of March 31, 2015, the aggregate intrinsic value was calculated based on the positive difference, if any, between the estimated fair value of our ordinary shares and the exercise price of the underlying options. (2) This represents the number of exercisable options plus the number of options expected to become exercisable as of March 31, 2016 based on the options outstanding as of March 31, 2016 adjusted for the estimated forfeiture rate. (3) Certain of the Company’s option grants have an exercise price denominated in British pound. The weighted-average exercise price at the end of each reporting period was translated into U.S. dollars using the exchange rate at the end of the period. The weighted-average exercise price for the options granted, exercised, forfeited and expired was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or expiration, as appropriate. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments for Operating Leases and Data Centers | Future minimum payments for our operating leases and data centers as of March 31, 2016 are as follows: Year Ending March 31, Operating Data 2017 $ 3,539 $ 10,125 2018 3,381 10,142 2019 3,159 7,646 2020 2,091 4,787 2021 726 801 Thereafter — 659 Total $ 12,896 $ 34,160 |
Segment and Geographic Inform30
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Area | Total revenue by geographic area was as follows: Year ended March 31, 2016 2015 2014 Revenue: United States $ 60,970 $ 43,574 $ 29,636 United Kingdom 55,276 48,595 37,694 South Africa 22,342 21,817 18,716 Other 3,253 2,099 2,269 Total revenue $ 141,841 $ 116,085 $ 88,315 |
Summary of Property and Equipment, Net by Geographic Location | Property and equipment, net by geographic location consists of the following: At March 31, 2016 2015 United States $ 11,363 $ 11,031 United Kingdom 7,677 7,883 Australia 2,886 192 South Africa 2,569 3,736 Other 311 317 Total $ 24,806 $ 23,159 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of (Loss) Income Before Provision for Income Taxes | (Loss) income before the provision for income taxes consists of the following: Year ended March 31, 2016 2015 2014 United Kingdom $ 942 $ 5,955 $ (4,033 ) Foreign (3,321 ) (5,518 ) (12,838 ) (Loss) income before provision for income taxes $ (2,379 ) $ 437 $ (16,871 ) |
Schedule of Provision for Income Taxes | The provision for income taxes in the accompanying consolidated financial statements is comprised of the following: At March 31, 2016 2015 2014 Current tax expense: Domestic $ 154 $ — $ — Foreign 711 152 19 Total current tax expense 865 152 19 Deferred tax expense: Domestic — — — Foreign — — — Total deferred tax expense — — — Total provision for income taxes $ 865 $ 152 $ 19 |
Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate | The reconciliation of the United Kingdom statutory tax rate to the Company’s effective tax rate included in the accompanying consolidated statements of operations is as follows: Year ended March 31, 2016 2015 2014 Tax at statutory rate 20.0 % 21.0 % 20.0 % U.S. state taxes, net of federal (1.9 ) 9.9 — Foreign rate differential 18.0 (214.6 ) 10.7 Meals and entertainment (7.9 ) 24.3 (0.6 ) Branch income / loss 0.3 (2.7 ) (0.6 ) Share-based compensation (7.3 ) 90.8 (0.1 ) Foreign exchange 7.4 (215.4 ) (2.1 ) Non-deductible interest expense (13.9 ) 76.2 — R&D credit and R&D enhancement 7.9 — (4.4 ) Change in valuation allowance 48.1 243.5 (23.0 ) Deferred tax true-ups (61.0 ) — — Tax reserves (23.8 ) — — Provision to return (6.5 ) — — Non-deductible expenses (3.9 ) — — Effect of U.K. rate change (12.8 ) — — Other 0.9 1.8 — Effective Tax Rate (36.4 )% 34.8 % (0.1 )% |
Components of Deferred Tax Assets and (Liabilities) | Significant components of the Company’s deferred tax assets (liabilities) are as follows: At March 31, 2016 2015 Deferred tax assets/liabilities: (in thousands) Net operating loss carryforwards $ 12,362 $ 14,676 Share-based compensation 2,369 2,136 Deferred revenue 1,609 1,203 Fixed assets 1,097 509 Accrued compensation 732 624 Accrued costs 203 141 Deferred rent 284 159 Income tax credits 184 — Other 149 164 Gross deferred tax assets 18,989 19,612 Valuation allowance (18,355 ) (19,612 ) Prepaid expenses (139 ) — Fixed assets (442 ) — Other (53 ) — Deferred tax assets, net $ — $ — |
Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: At March 31, (in thousands) Balance at April 1, 2015 $ — Additions based on tax positions related to current year 1,258 Additions for tax positions of prior years 1,068 Reductions for tax positions of prior years — Settlements — Balance at March 31, 2016 $ 2,326 |
Quarterly Results of Operatio32
Quarterly Results of Operations Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations Data | The following tables set forth our unaudited quarterly consolidated statements of operations for each of the eight quarters in the period ended March 31, 2016. We have prepared the quarterly consolidated statements of operations data on a basis consistent with the audited consolidated financial statements included elsewhere in this Annual Report on Form 20-F. In the opinion of management, the financial information reflects all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of this data. This information should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 20-F. The results of historical periods are not necessarily indicative of the results to be expected for any future period. Quarter ended Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, (in thousands, except per share amounts) Revenue $ 26,943 $ 28,603 $ 29,824 $ 30,715 $ 33,328 $ 34,507 $ 37,130 $ 36,876 Gross profit 18,018 19,466 20,240 21,540 23,452 24,314 26,479 25,787 (Loss) income from operations (2,651 ) (5,067 ) 2,619 1,669 2,110 1,503 (2,138 ) (4,049 ) Net (loss) income (4,048 ) (3,384 ) 4,064 3,653 (2,249 ) 2,168 (1,199 ) (1,964 ) Net (loss) income applicable to ordinary shareholders—basic (4,048 ) (3,384 ) 2,920 2,630 (2,249 ) 1,572 (1,199 ) (1,964 ) Net (loss) income applicable to ordinary shareholders—diluted (4,048 ) (3,384 ) 3,003 2,705 (2,249 ) 1,612 (1,199 ) (1,964 ) Net (loss) income per share applicable to ordinary shareholders: Basic $ (0.13 ) $ (0.10 ) $ 0.09 $ 0.08 $ (0.07 ) $ 0.05 $ (0.03 ) $ (0.04 ) Diluted $ (0.13 ) $ (0.10 ) $ 0.08 $ 0.07 $ (0.07 ) $ 0.04 $ (0.03 ) $ (0.04 ) Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders: Basic 31,884 32,230 32,505 32,802 33,066 33,673 42,514 54,172 Diluted 31,884 32,230 36,146 36,449 33,066 36,991 42,514 54,172 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Detail) | Nov. 05, 2015 | Mar. 31, 2016USD ($)Customer$ / sharesshares | Mar. 31, 2015USD ($)Customer$ / sharesshares | Mar. 31, 2014USD ($)Customer$ / sharesshares |
Summary Of Significant Accounting Policies [Line Items] | ||||
Share consolidation ratio | 0.1667 | |||
Number of customers representing more than 10% of accounts receivable | Customer | 0 | 0 | ||
Number of customers representing more than 10% of revenue | Customer | 0 | 0 | 0 | |
Bad debt expenses | $ 91,000 | $ 133,000 | $ 23,000 | |
Cash equivalents held in money market funds | 10,700,000 | 10,900,000 | ||
Capitalized costs | 0 | 0 | 0 | |
Advertising expenses incurred | 5,600,000 | 3,700,000 | $ 3,200,000 | |
Uncertain tax positions impact to net tax provision | $ 0 | $ 0 | ||
Weighted average fair value of options granted to employees | $ / shares | $ 4.69 | $ 4.02 | $ 1.56 | |
Non Employees [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of share-based awards issued to non-employees | shares | 0 | 1 | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Assets measured at fair value on a recurring basis | $ 0 | $ 0 | ||
Liabilities measured at fair value on a recurring basis | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Assets measured at fair value on a recurring basis | 0 | 0 | ||
Liabilities measured at fair value on a recurring basis | $ 0 | $ 0 | ||
Customer Relationships [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated life recognized for deferred revenue | 5 years |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Mar. 31, 2016 | |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Lesser of asset life or lease term |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Numerator: | |||||||||||
Net (loss) income | $ (1,964) | $ (1,199) | $ 2,168 | $ (2,249) | $ 3,653 | $ 4,064 | $ (3,384) | $ (4,048) | $ (3,244) | $ 285 | $ (16,890) |
Net (loss) income applicable to participating securities | 80 | ||||||||||
Net (loss) income applicable to ordinary shareholders-basic | (1,964) | (1,199) | 1,572 | (2,249) | 2,630 | 2,920 | (3,384) | (4,048) | (3,244) | 205 | (16,890) |
Net (loss) income | (1,964) | (1,199) | 2,168 | (2,249) | 3,653 | 4,064 | (3,384) | (4,048) | (3,244) | 285 | (16,890) |
Net income (loss) applicable to participating securities | 75 | ||||||||||
Net (loss) income applicable to ordinary shareholders-diluted | $ (1,964) | $ (1,199) | $ 1,612 | $ (2,249) | $ 2,705 | $ 3,003 | $ (3,384) | $ (4,048) | $ (3,244) | $ 210 | $ (16,890) |
Denominator: | |||||||||||
Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders-basic | 54,172 | 42,514 | 33,673 | 33,066 | 32,802 | 32,505 | 32,230 | 31,884 | 40,826 | 32,354 | 31,719 |
Dilutive effect of share equivalents resulting from share options and restricted shares | 3,721 | ||||||||||
Weighted average number of ordinary shares used in computing net (loss) income per share-diluted | 54,172 | 42,514 | 36,991 | 33,066 | 36,449 | 36,146 | 32,230 | 31,884 | 40,826 | 36,075 | 31,719 |
Net (loss) income per share applicable to ordinary shareholders: | |||||||||||
Basic | $ (0.04) | $ (0.03) | $ 0.05 | $ (0.07) | $ 0.08 | $ 0.09 | $ (0.10) | $ (0.13) | $ (0.08) | $ 0.01 | $ (0.53) |
Diluted | $ (0.04) | $ (0.03) | $ 0.04 | $ (0.07) | $ 0.07 | $ 0.08 | $ (0.10) | $ (0.13) | $ (0.08) | $ 0.01 | $ (0.53) |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Dilutive Ordinary Shares Excluded from Calculation of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive ordinary share equivalents excluded from calculation of diluted weighted-average shares outstanding | 6,870 | 6,251 | |
Unvested Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive ordinary share equivalents excluded from calculation of diluted weighted-average shares outstanding | 42 | ||
Convertible Preferred Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive ordinary share equivalents excluded from calculation of diluted weighted-average shares outstanding | 8,144 | 12,576 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Summary of Weighted Average Assumption Utilized to Determine Fair Value of Option (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term (in years) | 6 years 2 months 12 days | 6 years 3 months 18 days | 6 years 4 months 24 days |
Risk-free interest rate | 2.00% | 3.10% | 2.50% |
Expected volatility | 42.70% | 52.60% | 53.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Estimated grant date fair value per ordinary share | $ 9.80 | $ 7.20 | $ 3 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Research and development investment tax credits | $ 1,758 | $ 2,568 |
Prepaid expenses | 4,342 | 2,087 |
Other current assets | 1,262 | 327 |
Total prepaid expenses and other current assets | $ 7,362 | $ 4,982 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 61,121 | $ 50,819 |
Less: Accumulated depreciation and amortization | (36,315) | (27,660) |
Property and equipment, net | 24,806 | 23,159 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 54,935 | 46,078 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,096 | 2,867 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,837 | 1,618 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 253 | $ 256 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 10,527 | $ 11,028 | $ 8,958 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued payroll and related benefits | $ 8,620 | $ 7,166 |
Accrued taxes payable | 3,491 | 1,866 |
Other accrued expenses | 2,999 | 1,870 |
Total accrued expenses and other current liabilities | $ 15,110 | $ 10,902 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Non-current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent | $ 1,476 | $ 1,760 |
Other non-current liabilities | 645 | 367 |
Total other non-current liabilities | $ 2,121 | $ 2,127 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Mar. 31, 2015USD ($) | |
Reorganizations [Abstract] | |
Restructuring charge | $ 1,203 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2013GBP (£)Advance | Mar. 31, 2016GBP (£)Installment | Mar. 31, 2016USD ($) | Nov. 30, 2015GBP (£) | Mar. 31, 2015GBP (£) | Mar. 31, 2015USD ($) | Jul. 31, 2014GBP (£) | Jan. 31, 2013USD ($) | Jan. 31, 2012GBP (£) | |
Debt Instrument [Line Items] | |||||||||
Weighted-average interest rate for long-term debt | 4.50% | 4.50% | 4.50% | 4.50% | |||||
Amended Revolving Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, outstanding | £ 0 | £ 0 | |||||||
Line of credit available for future borrowing | £ 10,000,000 | £ 5,000,000 | |||||||
First Amendment Loan Agreement [Member] | First Fixed Rate Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | £ 3,000,000 | ||||||||
Line of credit facility, frequency of periodic payment | Monthly | ||||||||
Line of credit facility, number of monthly installments | Installment | 36 | ||||||||
Line of credit facility, expiration date | Mar. 1, 2017 | ||||||||
Line of credit facility, outstanding | $ | $ 1,300,000 | $ 2,800,000 | |||||||
Line of credit facility, fixed interest rate | 4.50% | 4.50% | |||||||
Second Amendment Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, increase on event of default | 3.00% | ||||||||
Second Amendment Loan Agreement [Member] | Amended Revolving Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | £ 10,000,000 | ||||||||
Line of credit facility, expiration date | Jul. 15, 2016 | ||||||||
Line of credit available for future borrowing | 5,000,000 | ||||||||
Second Amendment Loan Agreement [Member] | Amended Revolving Line Of Credit [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, interest rate | 4.00% | ||||||||
Second Amendment Loan Agreement [Member] | Amended Revolving Line Of Credit Upon Completion Of Additional Equity Financing [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit available for future borrowing | 5,000,000 | ||||||||
Second Amendment Loan Agreement [Member] | Second Fixed Rate Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | £ 5,000,000 | ||||||||
Line of credit facility, frequency of periodic payment | Monthly | ||||||||
Line of credit facility, number of monthly installments | Installment | 36 | ||||||||
Line of credit facility, expiration date | Jan. 1, 2018 | ||||||||
Line of credit facility, outstanding | $ | $ 4,400,000 | 7,000,000 | |||||||
Line of credit facility, fixed interest rate | 4.50% | 4.50% | |||||||
Fourth Amendment Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, increase on event of default | 3.00% | ||||||||
Fourth Amendment Loan Agreement [Member] | Amended Revolving Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit available for future borrowing | £ 5,000,000 | ||||||||
Equipment Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | £ 4,000,000 | ||||||||
Equipment Line Of Credit [Member] | Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, variable rate basis | Outstanding amounts under the Equipment Line accrued interest at a rate equal to the U.K. LIBOR plus 6.00% per annum for advances in British pounds or the greater of (i) 7.50% per annum and (ii) the Prime Rate plus 3.50% per annum for U.S. dollar advances. | ||||||||
Line of credit facility, interest rate | 7.50% | ||||||||
Line of credit facility, frequency of periodic payment | Monthly | ||||||||
Line of credit facility, number of monthly installments | Installment | 36 | ||||||||
Line of credit facility, expiration date | Jun. 30, 2015 | ||||||||
Line of credit available for future borrowing | $ | $ 0 | 0 | |||||||
Equipment Line Of Credit [Member] | Loan Agreement [Member] | British Pounds Advances Line Of Credit [Member] | UK London Interbank Offered Rate LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, basis spread on variable rate | 6.00% | ||||||||
Equipment Line Of Credit [Member] | Loan Agreement [Member] | US Dollar Advances Line Of Credit [Member] | Prime Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, basis spread on variable rate | 3.50% | ||||||||
Equipment Line Of Credit [Member] | Loan Agreement [Member] | Sterling Equipment Advances Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, outstanding | $ | 700,000 | 1,600,000 | |||||||
Equipment Line Of Credit [Member] | Loan Agreement [Member] | US Dollar Equipment Advances Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, outstanding | $ | $ 500,000 | $ 1,000,000 | |||||||
Equipment Line Of Credit [Member] | First Amendment Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, expiration date | Feb. 1, 2017 | ||||||||
Number of lines of credit | Advance | 2 | ||||||||
Line of credit facility, additional advances | $ | $ 0 | ||||||||
Line of credit facility, fixed interest rate | 4.50% | 4.50% | |||||||
Debt instrument periodic payments interest, period | 12 months | ||||||||
Equipment Line Of Credit [Member] | First Amendment Loan Agreement [Member] | Sterling Equipment Advances Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, outstanding | £ 1,700,000 | ||||||||
Equipment Line Of Credit [Member] | First Amendment Loan Agreement [Member] | US Dollar Equipment Advances Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, outstanding | $ | $ 1,600,000 | ||||||||
Revolving Credit Facility [Member] | First Amendment Loan Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | £ 7,500,000 | ||||||||
Line of credit facility, expiration date | Jan. 31, 2015 | ||||||||
Line of credit facility, maximum borrowing capacity, percentage of eligible accounts receivables | 80.00% | 80.00% | |||||||
Line of credit facility, maximum borrowing capacity, spread on percentage of eligible accounts receivables | £ 2,500,000 | ||||||||
Revolving Credit Facility [Member] | First Amendment Loan Agreement [Member] | British Pounds Advances Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, interest rate | 4.25% | ||||||||
Revolving Credit Facility [Member] | First Amendment Loan Agreement [Member] | British Pounds Advances Line Of Credit [Member] | Bank Of England Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, basis spread on variable rate | 3.75% | ||||||||
Revolving Credit Facility [Member] | First Amendment Loan Agreement [Member] | US Dollar Equipment Advances Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, interest rate | 4.25% | ||||||||
Revolving Credit Facility [Member] | First Amendment Loan Agreement [Member] | US Dollar Equipment Advances Line Of Credit [Member] | Prime Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, basis spread on variable rate | 1.00% | ||||||||
Revolving Credit Facility [Member] | First Amendment Loan Agreement [Member] | Euro Advances Line Of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, interest rate | 4.25% | ||||||||
Revolving Credit Facility [Member] | First Amendment Loan Agreement [Member] | Euro Advances Line Of Credit [Member] | Euro London Interbank Offered Rate LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, basis spread on variable rate | 4.00% |
Debt - Future Minimum Principal
Debt - Future Minimum Principal Payment Obligations (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 4,941 |
2,018 | 1,991 |
Total | $ 6,932 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2016 | |
Majority Shareholders [Member] | |
Related Party Transaction [Line Items] | |
Related party transaction, description of transaction | Three of our current shareholders, who collectively owned more than 40% of our outstanding shares as of March 31, 2016 and 2015, respectively, were customers of the Company during the periods included in the consolidated financial statements. |
Convertible Preferred Shares 47
Convertible Preferred Shares and Shareholders' Equity (Deficit) - Additional Information (Detail) $ / shares in Units, $ in Millions | Nov. 19, 2015USD ($)$ / sharesshares | Mar. 31, 2016$ / sharesshares | Nov. 05, 2015$ / sharesshares | Mar. 31, 2015$ / sharesshares | Mar. 31, 2015£ / sharesshares | Mar. 31, 2014shares | Mar. 31, 2013shares |
Class of Stock [Line Items] | |||||||
Common shares, authorized | 300,000,000 | 118,657,039 | 118,657,039 | 118,657,039 | |||
Common shares, par value | $ / shares | $ 0.012 | $ 0.012 | $ 0.012 | ||||
Convertible preferred shares, authorized | 75,458,210 | 75,458,210 | |||||
Common stock, shares outstanding | 54,216,738 | 32,928,499 | 32,928,499 | ||||
Ordinary shares voting rights | Under our Memorandum and Articles of Association that became effective upon the IPO, each ordinary share entitles the holder to one vote for each share on all matters submitted to a vote of our shareholders at all meetings of shareholders and written actions in lieu of meetings. | ||||||
Dividends declared | $ / shares | $ 0 | ||||||
Dividends paid | $ / shares | $ 0 | ||||||
Convertible Preferred Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred shares, authorized | 12,576,364 | 12,576,364 | 12,576,364 | ||||
Preferred shares, nominal value | $ / shares | $ 0.012 | ||||||
Number of ordinary shares issued upon conversion of convertible preferred shares | 12,576,000 | ||||||
Ordinary Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common shares, authorized | 1,003,300,000 | 1,003,300,000 | |||||
Common shares, par value | (per share) | $ 0.012 | £ 0.000001 | |||||
Issuance of ordinary shares in the IPO, shares | 7,750,000 | ||||||
Common stock, shares outstanding | 54,217,000 | 32,928,000 | 32,928,000 | 32,044,000 | 32,003,000 | ||
Number of ordinary shares issued upon conversion of convertible preferred shares | 12,576,000 | ||||||
IPO [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common shares, authorized | 300,000,000 | 300,000,000 | |||||
Preferred shares, authorized | 5,000,000 | 5,000,000 | |||||
Preferred shares, nominal value | $ / shares | $ 0.012 | ||||||
Issuance of ordinary shares in the IPO, shares | 7,750,000 | ||||||
Issuance of ordinary shares in the IPO, price per share | $ / shares | $ 10 | ||||||
Aggregate net proceeds received after deducting underwriting discounts and commissions and other offering expenses | $ | $ 68.3 | ||||||
Underwriting discounts and commissions and other offering expenses | $ | $ 9.2 | ||||||
Common stock, shares outstanding | 33,694,703 | ||||||
Convertible Preferred Shares [Member] | IPO [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of ordinary shares issued upon conversion of convertible preferred shares | 12,576,364 | ||||||
Founder Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common shares, authorized | 8,107,039 | ||||||
Class A Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common shares, authorized | 70,000,000 | ||||||
Class B Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common shares, authorized | 40,000,000 | ||||||
Class C Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common shares, authorized | 550,000 | ||||||
Series A Preferred Shares [Member] | Convertible Preferred Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred shares, authorized | 7,051,814 | 7,051,814 | 7,051,814 | ||||
Series B Preferred Shares [Member] | Convertible Preferred Shares [Member] | |||||||
Class of Stock [Line Items] | |||||||
Convertible preferred shares, authorized | 5,524,550 | 5,524,550 | 5,524,550 |
Convertible Preferred Shares 48
Convertible Preferred Shares and Shareholders' Equity (Deficit) - Schedule of Issuances of Redeemable Convertible Preferred Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 05, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Temporary Equity [Line Items] | ||||
Shares Authorized | 75,458,210 | |||
Carrying Value | $ 59,305 | |||
Convertible Preferred Shares [Member] | ||||
Temporary Equity [Line Items] | ||||
Shares Authorized | 12,576,364 | 12,576,364 | ||
Outstanding | 12,576,000 | 12,576,000 | 12,576,000 | |
Liquidation Amount | $ 60,816 | |||
Carrying Value | $ 59,305 | $ 59,305 | $ 59,305 | |
Convertible Preferred Shares [Member] | Series A Preferred Shares [Member] | ||||
Temporary Equity [Line Items] | ||||
Original Issue Price per Share | $ 2.95 | |||
Shares Authorized | 7,051,814 | 7,051,814 | ||
Outstanding | 7,051,814 | |||
Liquidation Amount | $ 20,816 | |||
Carrying Value | $ 20,583 | |||
Convertible Preferred Shares [Member] | Series B Preferred Shares [Member] | ||||
Temporary Equity [Line Items] | ||||
Original Issue Price per Share | $ 7.24 | |||
Shares Authorized | 5,524,550 | 5,524,550 | ||
Outstanding | 5,524,550 | |||
Liquidation Amount | $ 40,000 | |||
Carrying Value | $ 38,722 |
Convertible Preferred Shares 49
Convertible Preferred Shares and Shareholders' Equity (Deficit) - Schedule of Issued and Outstanding Shares (Detail) - shares | Mar. 31, 2016 | Mar. 31, 2015 |
Class of Stock [Line Items] | ||
Options outstanding under share option plans | 8,069,866 | 5,631,854 |
Unvested restricted share units | 42,224 | |
Total authorized ordinary shares reserved for future issuance | 15,211,465 | |
ESPP [Member] | ||
Class of Stock [Line Items] | ||
Shares reserved for issuance under ESPP | 1,100,000 | |
2015 Plan [Member] | ||
Class of Stock [Line Items] | ||
Options and awards available for future grant under the 2015 Plan | 5,999,375 | |
Total authorized ordinary shares reserved for future issuance | 5,500,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Thousands | Jan. 01, 2016 | Nov. 30, 2015shares | Mar. 31, 2016USD ($)CompensationPlanshares | Mar. 31, 2015USD ($)shares | Mar. 31, 2014USD ($) | Mar. 31, 2011shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share-based compensation plans | CompensationPlan | 4 | |||||
Ordinary shares reserved for future issuance | 15,211,465 | |||||
Total intrinsic value of options exercised | $ | $ 8,198 | $ 5,112 | $ 234 | |||
Proceeds from exercises of share-based awards | $ | $ 885 | $ 632 | $ 30 | |||
Share-based compensation arrangement by share-based payment award, unvested awards | 42,224 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options available for future grant | 5,999,375 | |||||
Restricted Share Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting period | 4 years | |||||
Share-based compensation arrangement by share-based payment award, granted | 550,000 | |||||
Share-based compensation arrangement by share-based payment award, unvested awards | 31,250 | |||||
Aggregate intrinsic value of unvested shares | $ | $ 300 | |||||
Restricted Share Awards [Member] | Vesting at End of Year One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 25.00% | |||||
Restricted Share Awards [Member] | Vesting Quarterly Over Remaining Vesting Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 6.25% | |||||
Service-Based Vesting Conditions [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized share-based compensation, net of estimated forfeiture | $ | $ 13,200 | |||||
Unrecognized share-based compensation, net of estimated forfeiture, period for recognition | 3 years 7 months 6 days | |||||
Service-Based and Performance-Based Vesting Condition [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized share-based compensation, net of estimated forfeiture | $ | $ 2,900 | |||||
Unrecognized share-based compensation, net of estimated forfeiture, period for recognition | 1 year 1 month 6 days | |||||
Restricted Share Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, unvested awards | 42,224 | |||||
Aggregate intrinsic value of unvested shares | $ | $ 400 | |||||
Restricted Share Units (RSUs) [Member] | Director One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, granted | 25,000 | |||||
Restricted Share Units (RSUs) [Member] | Director One [Member] | Vesting on a Monthly Basis [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting period | 3 years | |||||
Restricted Share Units (RSUs) [Member] | Director Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, granted | 20,000 | |||||
Restricted Share Units (RSUs) [Member] | Director Two [Member] | Cliff Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting period | 5 months | |||||
2015 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ordinary shares reserved for future issuance | 5,500,000 | |||||
Increase in number of shares reserved and available for issuance, percentage | 5.00% | |||||
Number of options available for future grant | 5,999,375 | |||||
2015 Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, term | 10 years | |||||
Share-based compensation arrangement by share-based payment award, vesting period | 4 years | |||||
2015 Employee Share Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Ordinary shares reserved and authorized for issuance | 1,100,000 | |||||
2015 Employee Share Purchase Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price of ordinary shares, percent | 85.00% | |||||
2007 Plan, 2010 Plan and Approved Plan [Member] | Vesting Upon Initial Public Offering [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 100.00% | |||||
2007 Plan, 2010 Plan and Approved Plan [Member] | Exercisable Immediately Upon Listing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 25.00% | |||||
2007 Plan, 2010 Plan and Approved Plan [Member] | Exercisable 12 Months Following Date of Listing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 50.00% | |||||
2007 Plan, 2010 Plan and Approved Plan [Member] | Exercisable 24 Months Following Date of Listing [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 25.00% | |||||
2007 Plan, 2010 Plan and Approved Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, term | 10 years | |||||
Share-based compensation arrangement by share-based payment award, vesting period | 4 years |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense Recognized in Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 7,886 | $ 5,426 | $ 1,232 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 633 | 151 | 151 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 1,711 | 544 | 291 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 3,180 | 1,684 | 395 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 2,362 | $ 3,047 | $ 395 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation, Stock Options, Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Awards, Beginning balance | 5,631,854 | |
Number of Awards, Options granted | 3,726,410 | |
Number of Awards, Options exercised | (940,187) | |
Number of Awards, Options forfeited and cancelled | (348,211) | |
Number of Awards, Ending balance | 8,069,866 | 5,631,854 |
Number of Awards, Exercisable | 2,591,492 | |
Number of Awards Exercisable and expected to be exercisable | 7,884,565 | |
Weighted Average Exercise Price, Beginning balance | $ 1.84 | |
Weighted Average Exercise Price, Options granted | 8.84 | |
Weighted Average Exercise Price, Options exercised | 0.94 | |
Weighted Average Exercise Price, Options forfeited and cancelled | 5.99 | |
Weighted Average Exercise Price, Ending balance | 5 | $ 1.84 |
Weighted Average Exercise Price Exercisable | 2.27 | |
Weighted Average Exercise Price Exercisable and expected to be exercisable | $ 4.91 | |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 1 month 28 days | 5 years 10 months 28 days |
Weighted Average Remaining Contractual Term, Exercisable | 5 years 6 months 4 days | |
Weighted Average Remaining Contractual Term, Exercisable and expected to be exercisable | 7 years 1 month 6 days | |
Aggregate Intrinsic Value, Outstanding | $ 38,541 | $ 44,591 |
Aggregate Intrinsic Value, Exercisable | 19,340 | |
Aggregate Intrinsic Value, Exercisable and expected to be exercisable | $ 38,336 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expenses | $ 3.2 | $ 2.8 | $ 2.6 |
Letters of credit outstanding relating to operating leases | $ 0.5 | $ 0.4 |
Commitments and Contingencies54
Commitments and Contingencies - Future Minimum Payments for Operating Leases and Data Centers (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |
2,017 | $ 3,539 |
2,018 | 3,381 |
2,019 | 3,159 |
2,020 | 2,091 |
2,021 | 726 |
Thereafter | 0 |
Total | 12,896 |
2,017 | 10,125 |
2,018 | 10,142 |
2,019 | 7,646 |
2,020 | 4,787 |
2,021 | 801 |
Thereafter | 659 |
Total | $ 34,160 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2016 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Additional contribution percentage by the company | 1.00% |
Segment and Geographic Inform56
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment and Geographic Inform57
Segment and Geographic Information - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 36,876 | $ 37,130 | $ 34,507 | $ 33,328 | $ 30,715 | $ 29,824 | $ 28,603 | $ 26,943 | $ 141,841 | $ 116,085 | $ 88,315 |
United States [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 60,970 | 43,574 | 29,636 | ||||||||
United Kingdom [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 55,276 | 48,595 | 37,694 | ||||||||
South Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 22,342 | 21,817 | 18,716 | ||||||||
Other [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 3,253 | $ 2,099 | $ 2,269 |
Segment and Geographic Inform58
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 24,806 | $ 23,159 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 11,363 | 11,031 |
United Kingdom [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 7,677 | 7,883 |
Australia [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 2,886 | 192 |
South Africa [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 2,569 | 3,736 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 311 | $ 317 |
Income Taxes - Summary of (Loss
Income Taxes - Summary of (Loss) Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United Kingdom | $ 942 | $ 5,955 | $ (4,033) |
Foreign | (3,321) | (5,518) | (12,838) |
(Loss) income before income taxes | $ (2,379) | $ 437 | $ (16,871) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 154 | ||
Foreign | 711 | $ 152 | $ 19 |
Total current tax expense | 865 | 152 | 19 |
Domestic | 0 | 0 | 0 |
Foreign | 0 | 0 | 0 |
Total deferred tax expense | 0 | 0 | 0 |
Total provision for income taxes | $ 865 | $ 152 | $ 19 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 20.00% | 21.00% | 20.00% |
U.S. state taxes, net of federal | (1.90%) | 9.90% | |
Foreign rate differential | 18.00% | (214.60%) | 10.70% |
Meals and entertainment | (7.90%) | 24.30% | (0.60%) |
Branch income / loss | 0.30% | (2.70%) | (0.60%) |
Share-based compensation | (7.30%) | 90.80% | (0.10%) |
Foreign exchange | 7.40% | (215.40%) | (2.10%) |
Non-deductible interest expense | (13.90%) | 76.20% | |
R&D credit and R&D enhancement | 7.90% | (4.40%) | |
Change in valuation allowance | 48.10% | 243.50% | (23.00%) |
Deferred tax true-ups | (61.00%) | ||
Tax reserves | (23.80%) | ||
Provision to return | (6.50%) | ||
Non-deductible expenses | (3.90%) | ||
Effect of U.K. rate change | (12.80%) | ||
Other | 0.90% | 1.80% | |
Effective Tax Rate | (36.40%) | 34.80% | (0.10%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes [Line Items] | |||
Tax at statutory rate | 20.00% | 21.00% | 20.00% |
Net decrease in the valuation allowance | $ (1,300,000) | ||
Liabilities for uncertain tax positions | 2,300,000 | ||
Accrued interest or penalties related to uncertain tax positions | 0 | $ 0 | |
Undistributed earnings of foreign subsidiaries | $ 1,400,000 | ||
U. K. [Member] | |||
Income Taxes [Line Items] | |||
Tax at statutory rate | 20.00% | 21.00% | 20.00% |
Net operating losses related to excess share-based compensation deductions | $ 6,600,000 | ||
U. K. [Member] | Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 10,300,000 | $ 9,500,000 | |
U.S. Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses related to excess share-based compensation deductions | 2,800,000 | ||
U.S. Federal [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 31,500,000 | 30,400,000 | |
U.S. State [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses related to excess share-based compensation deductions | 2,800,000 | ||
U.S. State [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 24,400,000 | 27,400,000 | |
South African [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 0 | 3,000,000 | |
Australian [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 7,700,000 | $ 3,200,000 | |
Earliest Tax Year [Member] | Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Open tax year | 2,015 | ||
Earliest Tax Year [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Open tax year | 2,013 | ||
Latest Tax Year [Member] | U. K. [Member] | Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 200,000 | ||
Latest Tax Year [Member] | U.S. Federal [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, expiration year | 2,036 | ||
Latest Tax Year [Member] | U.S. State [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, expiration year | 2,036 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and (Liabilities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred tax assets/liabilities: | ||
Net operating loss carryforwards | $ 12,362 | $ 14,676 |
Share-based compensation | 2,369 | 2,136 |
Deferred revenue | 1,609 | 1,203 |
Fixed assets | 1,097 | 509 |
Accrued compensation | 732 | 624 |
Accrued costs | 203 | 141 |
Deferred rent | 284 | 159 |
Income tax credits | 184 | |
Other | 149 | 164 |
Gross deferred tax assets | 18,989 | 19,612 |
Valuation allowance | (18,355) | (19,612) |
Prepaid expenses | (139) | |
Fixed assets | (442) | |
Other | (53) | |
Deferred tax assets, net | $ 0 | $ 0 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Additions based on tax positions related to current year | $ 1,258 |
Additions for tax positions of prior years | 1,068 |
Reductions for tax positions of prior years | 0 |
Settlements | 0 |
Ending Balance | $ 2,326 |
Quarterly Results of Operatio65
Quarterly Results of Operations Data (Unaudited) - Summary of Quarterly Results of Operations Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 36,876 | $ 37,130 | $ 34,507 | $ 33,328 | $ 30,715 | $ 29,824 | $ 28,603 | $ 26,943 | $ 141,841 | $ 116,085 | $ 88,315 |
Gross profit | 25,787 | 26,479 | 24,314 | 23,452 | 21,540 | 20,240 | 19,466 | 18,018 | 100,032 | 79,264 | 59,642 |
(Loss) income from operations | (4,049) | (2,138) | 1,503 | 2,110 | 1,669 | 2,619 | (5,067) | (2,651) | (2,574) | (3,430) | (11,360) |
Net (loss) income | (1,964) | (1,199) | 2,168 | (2,249) | 3,653 | 4,064 | (3,384) | (4,048) | (3,244) | 285 | (16,890) |
Net (loss) income applicable to ordinary shareholders-basic | (1,964) | (1,199) | 1,572 | (2,249) | 2,630 | 2,920 | (3,384) | (4,048) | (3,244) | 205 | (16,890) |
Net (loss) income applicable to ordinary shareholders-diluted | $ (1,964) | $ (1,199) | $ 1,612 | $ (2,249) | $ 2,705 | $ 3,003 | $ (3,384) | $ (4,048) | $ (3,244) | $ 210 | $ (16,890) |
Net (loss) income per share applicable to ordinary shareholders: | |||||||||||
Basic | $ (0.04) | $ (0.03) | $ 0.05 | $ (0.07) | $ 0.08 | $ 0.09 | $ (0.10) | $ (0.13) | $ (0.08) | $ 0.01 | $ (0.53) |
Diluted | $ (0.04) | $ (0.03) | $ 0.04 | $ (0.07) | $ 0.07 | $ 0.08 | $ (0.10) | $ (0.13) | $ (0.08) | $ 0.01 | $ (0.53) |
Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders: | |||||||||||
Basic | 54,172 | 42,514 | 33,673 | 33,066 | 32,802 | 32,505 | 32,230 | 31,884 | 40,826 | 32,354 | 31,719 |
Diluted | 54,172 | 42,514 | 36,991 | 33,066 | 36,449 | 36,146 | 32,230 | 31,884 | 40,826 | 36,075 | 31,719 |