Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 15, 2018 | Sep. 29, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 954,261,949 | ||
Entity Common Stock, Shares Outstanding | 58,976,977 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 78,339 | $ 51,319 |
Short-term investments | 58,871 | 60,347 |
Accounts receivable, net | 65,392 | 44,358 |
Prepaid expenses and other current assets | 15,302 | 10,054 |
Total current assets | 217,904 | 166,078 |
Property and equipment, net | 123,822 | 32,009 |
Intangible assets, net | 9,819 | 1,590 |
Goodwill | 5,631 | 5,363 |
Other assets | 1,222 | 312 |
Total assets | 358,398 | 205,352 |
Current liabilities | ||
Accounts payable | 6,052 | 3,558 |
Accrued expenses and other current liabilities | 33,878 | 20,713 |
Deferred revenue | 123,057 | 84,159 |
Current portion of capital lease obligations | 1,125 | 233 |
Current portion of long-term debt | 1,725 | |
Total current liabilities | 164,112 | 110,388 |
Deferred revenue, net of current portion | 18,045 | 11,189 |
Long-term capital lease obligations | 2,390 | 245 |
Construction financing lease obligation | 67,205 | |
Other non-current liabilities | 4,954 | 1,538 |
Total liabilities | 256,706 | 123,360 |
Commitments and contingencies (Note 12) | ||
Shareholders' equity | ||
Ordinary shares, $0.012 par value, 300,000,000 shares authorized; 58,949,644 and 55,901,996 shares issued and outstanding as of March 31, 2018 and 2017, respectively | 707 | 671 |
Additional paid-in capital | 212,839 | 183,752 |
Accumulated deficit | (106,507) | (94,017) |
Accumulated other comprehensive loss | (5,347) | (8,414) |
Total shareholders' equity | 101,692 | 81,992 |
Total liabilities and shareholders' equity | $ 358,398 | $ 205,352 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.012 | $ 0.012 |
Ordinary shares, authorized | 300,000,000 | 300,000,000 |
Ordinary shares, issued | 58,949,644 | 55,901,996 |
Ordinary shares, outstanding | 58,949,644 | 55,901,996 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 261,897 | $ 186,563 | $ 141,841 |
Cost of revenue | 69,699 | 50,314 | 41,809 |
Gross profit | 192,198 | 136,249 | 100,032 |
Operating expenses | |||
Research and development | 38,373 | 22,593 | 17,663 |
Sales and marketing | 121,246 | 96,154 | 65,187 |
General and administrative | 36,989 | 27,875 | 19,756 |
Impairment of long-lived assets | 1,712 | 0 | 0 |
Restructuring | 832 | ||
Total operating expenses | 199,152 | 146,622 | 102,606 |
Loss from operations | (6,954) | (10,373) | (2,574) |
Other income (expense) | |||
Interest income | 1,310 | 510 | 74 |
Interest expense | (598) | (268) | (690) |
Foreign exchange (expense) income | (3,511) | 6,892 | 811 |
Other income, net | 72 | ||
Total other income (expense), net | (2,727) | 7,134 | 195 |
Loss before income taxes | (9,681) | (3,239) | (2,379) |
Provision for income taxes | 2,705 | 2,202 | 865 |
Net loss | $ (12,386) | $ (5,441) | $ (3,244) |
Net loss per ordinary share | |||
Basic and diluted | $ (0.22) | $ (0.10) | $ (0.08) |
Weighted-average number of ordinary shares outstanding | |||
Basic and diluted | 57,269 | 54,810 | 40,826 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (12,386) | $ (5,441) | $ (3,244) |
Other comprehensive income (loss): | |||
Net unrealized gains (losses) on investments, net of tax | 40 | (129) | |
Change in foreign currency translation adjustment | 2,839 | (5,247) | (1,707) |
Reclassification of cumulative translation adjustment to net loss upon liquidation of subsidiaries, net of tax | 188 | ||
Total other comprehensive income (loss) | 3,067 | (5,376) | (1,707) |
Comprehensive loss | $ (9,319) | $ (10,817) | $ (4,951) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Shares and Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Convertible Preferred Shares [Member] | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Beginning balance at Mar. 31, 2015 | $ 59,305 | |||||
Beginning balance, Shares at Mar. 31, 2015 | 12,576,000 | |||||
Beginning balance at Mar. 31, 2015 | $ (53,851) | $ 395 | $ 32,417 | $ (85,332) | $ (1,331) | |
Beginning balance, Shares at Mar. 31, 2015 | 32,928,000 | |||||
Net loss | (3,244) | (3,244) | ||||
Foreign currency translation adjustment | (1,707) | (1,707) | ||||
Issuance of ordinary shares upon exercise of share options | 885 | $ 12 | 873 | |||
Issuance of ordinary shares upon exercise of share options, Shares | 941,000 | |||||
Issuance of ordinary shares upon settlement of liability awards | 523 | 523 | ||||
Issuance of ordinary shares upon settlement of liability awards, Shares | 50,000 | |||||
Conversion of convertible preferred shares into ordinary shares | 59,305 | $ (59,305) | $ 151 | 59,154 | ||
Conversion of convertible preferred shares into ordinary shares, Shares | (12,576,000) | 12,576,000 | ||||
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 | |||||
Balance as of March 31, 2016 at Mar. 31, 2016 | 78,074 | $ 651 | 169,037 | (88,576) | (3,038) | |
Ending balance, Shares at Mar. 31, 2016 | 54,217,000 | |||||
Net loss | (5,441) | (5,441) | ||||
Foreign currency translation adjustment | (5,247) | (5,247) | ||||
Unrealized gain (losses) on investments | (129) | (129) | ||||
Issuance of ordinary shares upon exercise of share options | 4,476 | $ 20 | 4,456 | |||
Issuance of ordinary shares upon exercise of share options, Shares | 1,657,000 | |||||
Share-based compensation | 10,259 | 10,259 | ||||
Vesting of restricted share units | 28,000 | |||||
Ending balance at Mar. 31, 2017 | $ 81,992 | $ 671 | 183,752 | (94,017) | (8,414) | |
Ending balance, Shares at Mar. 31, 2017 | 55,901,996 | 55,902,000 | ||||
Cumulative effect adjustment ASU 2016-09 | 104 | (104) | ||||
Excess tax benefits related to exercise ofshare options | $ 217 | 217 | ||||
Net loss | (12,386) | (12,386) | ||||
Foreign currency translation adjustment | 3,027 | 3,027 | ||||
Unrealized gain (losses) on investments | 40 | 40 | ||||
Issuance of ordinary shares upon exercise of share options | $ 15,636 | $ 36 | 15,600 | |||
Issuance of ordinary shares upon exercise of share options, Shares | 2,960,859 | 2,961,000 | ||||
Share-based compensation | $ 11,763 | 11,763 | ||||
ESPP purchase | 1,492 | 1,492 | ||||
ESPP purchase, shares | 67,000 | |||||
Tax withholdings on issuance of ordinary shares | (89) | (89) | ||||
Tax withholdings on issuance of ordinary shares, Shares | (3,000) | |||||
Vesting of restricted share units | 23,000 | |||||
Ending balance at Mar. 31, 2018 | $ 101,692 | $ 707 | $ 212,839 | $ (106,507) | $ (5,347) | |
Ending balance, Shares at Mar. 31, 2018 | 58,949,644 | 58,950,000 |
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, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | |||
Net loss | $ (12,386) | $ (5,441) | $ (3,244) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 18,960 | 11,881 | 10,527 |
Share-based compensation expense | 11,734 | 10,294 | 7,886 |
Provision for doubtful accounts | 185 | 87 | 91 |
Impairment of long-lived assets | 1,712 | 0 | 0 |
Loss (gain) on disposal of fixed assets | 181 | (4) | (5) |
Other non-cash items | 184 | 132 | 106 |
Unrealized currency loss (gain) on foreign denominated transactions | 2,958 | (6,496) | (988) |
Changes in assets and liabilities: | |||
Accounts receivable | (18,120) | (11,750) | (9,820) |
Prepaid expenses and other current assets | (5,037) | (2,752) | (2,191) |
Other assets | 33 | 1,861 | (437) |
Accounts payable | (104) | 758 | (542) |
Deferred revenue | 39,042 | 29,072 | 18,588 |
Accrued expenses and other liabilities | 7,070 | 4,872 | 4,672 |
Net cash provided by operating activities | 46,412 | 32,514 | 24,643 |
Investing activities | |||
Purchases of investments | (76,948) | (67,550) | |
Maturities of investments | 77,808 | 7,000 | |
Purchases of property, equipment and capitalized software | (34,498) | (18,491) | (14,234) |
Payments for acquisitions | (1,381) | (5,574) | |
Net cash used in investing activities | (35,019) | (84,615) | (14,234) |
Financing activities | |||
Proceeds from issuance of ordinary shares | 17,039 | 4,476 | 885 |
Payments on debt | (1,825) | (4,559) | (5,412) |
Payments on capital lease obligations | (1,039) | (249) | |
Payments on construction financing lease obligation | (1,019) | ||
Proceeds from initial public offering, net of issuance costs | 68,328 | ||
Net cash provided by (used in) financing activities | 13,156 | (332) | 63,801 |
Effect of foreign exchange rates on cash | 2,471 | (2,388) | (960) |
Net increase (decrease) in cash and cash equivalents | 27,020 | (54,821) | 73,250 |
Cash and cash equivalents at beginning of period | 51,319 | 106,140 | 32,890 |
Cash and cash equivalents at end of period | 78,339 | 51,319 | 106,140 |
Supplemental disclosure of cash flow information | |||
Cash paid during the period for interest | 591 | 211 | 488 |
Cash paid during the period for income taxes | 2,545 | 2,046 | 58 |
Supplemental disclosure of non-cash investing and financing activities | |||
Unpaid purchases of property and equipment | 2,422 | 848 | 308 |
Property and equipment acquired under capital lease | 4,000 | 713 | |
Unpaid purchases of capitalized software licenses | 5,555 | ||
Conversion of convertible preferred shares to ordinary shares | $ 59,305 | ||
Amounts due for acquisition of business | $ 600 | ||
Construction costs capitalized under financing lease obligations | $ 70,645 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018 | |
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. 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, intangible asset valuations, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, construction financing lease obligations, restructuring 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. 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. Changes in estimates are recorded in the period in which they become known. 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 16. Cash, Cash Equivalents and Investments 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. Cash and cash equivalents consist of cash on deposit with banks, amounts held in interest-bearing money market funds and investments with maturities of 90 days or less from the date of purchase. Cash equivalents are carried at cost, which approximates their fair market value. Investments not classified as cash equivalents are presented as either short-term or long-term investments based on both their stated maturities as well as the time period the Company intends to hold such securities. The Company determines the appropriate classification of investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company adjusts the cost of investments for amortization of premiums and accretion of discounts to maturity. The Company includes such amortization and accretion in interest income. The Company has classified all of its investments as of March 31, 2018 as available-for-sale pursuant to ASC 320, Investments – Debt and Equity Securities The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statements of operations if the Company has experienced a credit loss, has the intent to sell the investment, or if it is more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. The aggregate fair value of investments held by the Company in an unrealized loss position for less than twelve months as of March 31, 2018 was $45.9 million. As of March 31, 2018, the Company determined that no other-than-temporary impairments were required to be recognized in the consolidated statements of operations. The following is a summary of cash, cash equivalents and investments as of March 31, 2018 and March 31, 2017: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2018: Cash and cash equivalents due in 90 days or less $ 78,339 $ — $ — $ 78,339 Investments: U.S. treasury securities due in one year or less 2,995 — (5 ) 2,990 Non-U.S. government securities due in one year or less 5,996 1 (1 ) 5,996 Corporate securities due in one year or less 49,969 8 (92 ) 49,885 Total investments 58,960 9 (98 ) 58,871 Total cash, cash equivalents and investments $ 137,299 $ 9 $ (98 ) $ 137,210 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2017: Cash and cash equivalents due in 90 days or less $ 51,319 $ — $ — $ 51,319 Investments: U.S. treasury securities due in one year or less 3,501 5 — 3,506 Non-U.S. government securities due in one year or less 14,515 2 (23 ) 14,494 Corporate securities due in one year or less 42,460 2 (115 ) 42,347 Total investments 60,476 9 (138 ) 60,347 Total cash, cash equivalents and investments $ 111,795 $ 9 $ (138 ) $ 111,666 Revenue Recognition The Company derives its revenue from two sources: (1) subscription revenue, which is 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 six 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 these costs, the Company incurs third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of intangible assets 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, investments 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, 2018 and 2017, no individual customer represented more than 10% of our accounts receivable. During the years ended March 31, 2018, 2017 and 2016, no individual customer represented more than 10% of our revenue. The Company's Board approved investment policy permits investments in fixed income securities denominated and payable in U.S. dollars including U.S. government and agency securities, non-U.S. government securities, money market instruments, commercial paper, certificates of deposit, corporate bonds and asset-backed securities. The Company diversifies its investment portfolio by investing in multiple types of investment-grade securities across various industries and issuers, limiting the amount invested in individual securities and limiting the average maturity to two years or less. As of March 31, 2018, our investments consisted primarily of investment-grade fixed income corporate debt securities with maturities ranging from 1 to 8 months, non-U.S. government securities with maturities ranging from 2 to 6 months and U.S. treasury securities with maturities in approximately 4 months. 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, 2018, 2017 and 2016, bad debt expense was $185, $87 and $91, respectively. The allowance for doubtful accounts as of March 31, 2018 and 2017 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. Property and equipment acquired under capital leases is amortized over the lease term or, in circumstances where ownership is transferred by the end of the lease or there is a bargain purchase option, over the useful life that would be assigned if the asset were owned. 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 in the period of retirement or sale. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Buildings and building improvements (1) 10 Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 (1) Building and building improvement assets under build-to-suit accounting are depreciated over their useful lives during the lease period. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. Business Combinations In accordance with ASC 805, Business Combinations We recognize identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair value of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired that are not individually identified and separately recognized. While we use our best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. Assumptions may be incomplete or inaccurate, and unanticipated events or circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill to the extent that we identify adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Goodwill and acquired intangible assets Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We have determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, we estimate the fair value of the reporting unit, based on our market capitalization, and compare this amount to the carrying value of the reporting unit. If we determine that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. Our annual goodwill impairment test is performed as of January 1 st Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. We amortize acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment and definite-lived intangible assets, 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 recoverability of these assets. 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 year ended March 31, 2018, the Company recorded an i mpairment of long-lived assets of $1.7 million due to the exit of its Watertown facilities in the fourth quarter of fiscal 2018. See Note 3. For the years ended March 31, 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. 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, 2018, 2017 and 2016. 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, 2018, 2017 and 2016, 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 non-U.S. subsidiaries by reviewing the currencies in which its respective operating activities occur. The functional currency of the Company’s non-U.S. 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 in the accompanying consolidated balance sheets. Net Loss Per Share The Company calculates basic and diluted net loss per ordinary share by dividing net loss by the weighted-average number of ordinary shares outstanding during the period. The Company has excluded other potentially dilutive shares, which include outstanding options to purchase ordinary shares and unvested restricted share units, from the weighted-average number of ordinary shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses incurred. 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, 2018, 2017 and 2016 as their effect would have been anti-dilutive for the periods presented: Year Ended March 31, 2018 2017 2016 Share options outstanding 6,230 8,681 6,870 Unvested restricted share units 33 28 42 Convertible preferred shares — — 8,144 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 $12.4 million, $11.5 million and $5.6 million during the years ended March 31, 2018, 2017 and 2016, 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, 2018 and 2017, we did not have any uncertain tax positions that would impact our net tax provision if recognized. Share-Based Compensation The Company accounts for share-based compensation awards in accordance with the provisions of ASC 718, Compensation—Stock Compensation See Note 11 for further description of the Company’s share-based compensation plans and a summary of the share-based award activity for the year ended March 31, 2018. Share Options The Company estimates the fair value of employee share options on the date of grant using the Black-Scholes option-pricing model, which requires the use of highly subjective estimates and assumptions. The Company estimates the expected term of share options for service-based awards utilizing the “Simplified Method,” as it 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. 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 the Company’s ordinary shares prior to the IPO and as its shares have been publicly traded for a limited time, we 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 uses an expected dividend rate of zero as it currently has no history or expectation of paying dividends on its ordinary shares. The fair value of the Company’s ordinary shares at the time of each share option grant is based on the closing market value of its ordinary shares on the |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Mar. 31, 2018 | |
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: As of March 31, 2018 2017 Prepaid Expenses $ 10,766 $ 7,095 Research and development investment tax credits 3,353 2,102 Other current assets 1,183 857 Total prepaid expenses and other current assets $ 15,302 $ 10,054 Property and equipment, net, consists of the following: As of March 31, 2018 2017 Building and building improvements (1) $ 75,165 $ — Computer equipment (2) 102,821 69,996 Leasehold improvements 6,504 5,015 Furniture and fixtures 4,187 2,232 Office equipment 1,172 267 189,849 77,510 Less: Accumulated depreciation and amortization (2) (66,027 ) (45,501 ) Property and equipment, net $ 123,822 $ 32,009 (1) Includes construction costs capitalized related to our U.S. and U.K. build-to-suit facilities of $39.4 million and $31.2 million, respectively, and $4.5 million of Company funded building improvements related to our U.S. build-to-suit facility. (2) Includes property and equipment acquired under capital leases: As of March 31, As of March 31, 2018 2017 Computer equipment $ 4,713 $ 713 Less: Accumulated amortization (990 ) (59 ) $ 3,723 $ 654 Depreciation and amortization expense was $17.5 million, $11.8 million, and $10.5 million for the years ended March 31, 2018, 2017 and 2016, respectively. Depreciation and amortization expense in the year ended March 31, 2018 included $0.9 million related to property and equipment acquired under capital leases. In the fourth quarter of fiscal 2018, upon the exit of our Watertown, MA corporate office space, we recorded a non-cash impairment charge of $1.7 million primarily related to leasehold improvements. Accrued expenses and other current liabilities consists of the following: As of March 31, 2018 2017 Accrued payroll and related benefits $ 15,325 $ 11,661 Accrued taxes payable 4,029 3,490 Construction financing lease obligation 2,421 — Restructuring liability 851 — Other accrued expenses 11,252 5,562 Total accrued expenses and other current liabilities $ 33,878 $ 20,713 Other non-current liabilities consists of the following: As of March 31, 2018 2017 Deferred rent $ 840 $ 981 Restructuring liability 74 — Other non-current liabilities 4,040 557 Total other non-current liabilities $ 4,954 $ 1,538 |
Restructuring
Restructuring | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 4. Restructuring In the fourth quarter of fiscal 2018, the Company ceased use of its Watertown, MA corporate office space and recorded a restructuring charge of $0.8 million. The fair value of the restructuring liability at the cease-use date of $1.1 million was determined by discounting estimated future cash flows, which consisted of remaining lease rentals and estimated sublease rentals that could be reasonably obtained for the property and was adjusted for the effects of deferred rent liabilities recognized under the lease of $0.3 million. The Company’s estimate of sublease rentals was based on a sublease agreement executed subsequent to year-end. See Note 16. The restructuring liability and any future changes in the estimate will be recorded in Restructuring in the consolidated statements of operations. The fair value measurement is classified within Level 3 of the fair value hierarchy wherein fair value is estimated using significant unobservable inputs. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions iSheriff, Inc. On November 21, 2016, the Company entered into an Asset Purchase Agreement (APA) to purchase substantially all of the assets of iSheriff, Inc. (iSheriff), a cloud-based security provider. This acquisition is expected to provide Mimecast’s customers additional real-time email threat intelligence and detection expertise and complements the Company’s existing portfolio of email security, continuity and archiving solutions. The purchase price of $6.2 million consisted of a cash payment of approximately $5.6 million, subject to certain adjustments, and $0.6 million in purchase price held back in respect of claims for indemnification for one year from the purchase date. The Company made the $0.6 million payment in the Company’s third quarter 2018, net of amounts respective to certain unresolved claims. In addition, the APA included contingent consideration related to a discretionary purchase price in the amount of $2.0 million, which was payable at the sole and absolute discretion of the Company on the one-year anniversary of the purchase date. In November 2017, on the one-year anniversary of the purchase, the Company determined that payment of this contingent consideration was not warranted. The acquisition of iSheriff has been accounted for as a business combination and, in accordance with ASC 805, Business Combinations Fair value of assets acquired and liabilities assumed: Prepaid expenses $ 65 Accounts receivable 218 Intangible assets 1,654 Goodwill 5,142 Total assets acquired 7,079 Deferred revenue (796 ) Accrued liabilities (78 ) Total fair value of assets acquired and liabilities assumed $ 6,205 In the year ended March 31, 2017, acquisition-related expenses of $0.7 million were expensed as incurred and included in general and administrative expenses in the consolidated statements of operations. The operating results of iSheriff have been included in the consolidated statements of operations beginning on the acquisition date. The significant intangible assets identified in the purchase price allocation discussed above include developed technology and customer relationships, which are amortized over their respective useful lives on a straight-line basis. To value the developed technology asset, the Company utilized the income approach, specifically a discounted cash-flow method known as the multi-period excess earnings method. Customer relationships represent the underlying relationships with certain customers to provide ongoing services for products sold. The Company utilized the income approach, specifically the distribution method which is a subset of the excess-earnings method, to value the customer relationships. A portion of the purchase price has been allocated to intangible assets and goodwill, respectively, and is reflected in the tables above. The fair value of the assets acquired and liabilities assumed is less than the purchase price, resulting in the recognition of goodwill. The goodwill reflects the value of the synergies we expect to realize and the assembled workforce and is not deductible for tax purposes. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the acquisition and using assumptions that the Company’s management believes are reasonable. Pro Forma Financial Information (unaudited) The following unaudited pro forma information presents the condensed combined results of operations of the Company and iSheriff for the years ended March 31, 2017 and 2016 as if the acquisition of iSheriff had been completed on April 1, 2015. These pro forma condensed consolidated financial results have been prepared for comparative purposes only and include certain adjustments that reflect pro forma results of operations such as fair value adjustments (step-downs) for deferred revenue, reversal of revenues and costs directly attributable to products not acquired, increased amortization for the fair value of acquired intangible assets and adjustments to eliminate transaction costs incurred by the Company and iSheriff. The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of the Company and iSheriff. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred as of April 1, 2015, nor are they intended to represent or be indicative of future results of operations: Year ended March 31, 2017 2016 Revenue $ 187,577 $ 142,951 Net loss (6,842 ) (8,690 ) Basic and diluted net loss per share $ (0.12 ) $ (0.21 ) Weighted average number of ordinary shares used in computing basic and diluted net loss per share 54,810 40,826 Other Acquisitions On November 20, 2017, the Company entered into an agreement with two individuals to purchase a prototype of a machine learning-based malware detection technology for $750 thousand in cash, as well as, retain two employees for $750 thousand in cash. The payment to the employees is to be paid on the second anniversary of the transaction contingent on their employment as of that date. The estimated fair value of the prototype is approximately $0.5 million, with the remaining amount of the initial consideration attributed to goodwill. The goodwill is not expected to be deductible for tax purposes. Pro forma results of operations for the acquisition have not been presented as it is not material to the Company’s consolidated results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets The following table reflects goodwill activity in each of the periods presented: Year ended March 31, 2018 2017 Beginning balance $ 5,363 $ 254 Goodwill acquired 226 5,151 Goodwill adjustment — (9 ) Effect of foreign exchange rates 42 (33 ) Ending balance $ 5,631 $ 5,363 Purchased intangible assets consist of the following: Weighted- Average March 31, 2018 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 9 $ 1,546 $ (213 ) $ 1,333 Customer relationships 6 108 (21 ) 87 Capitalized software 3 9,171 (1,329 ) 7,842 10,825 (1,563 ) 9,262 In-process research and development (1) 557 — 557 $ 11,382 $ (1,563 ) $ 9,819 Weighted- Average March 31, 2017 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 10 $ 1,546 $ (58 ) $ 1,488 Customer relationships 7 108 (6 ) 102 $ 1,654 $ (64 ) $ 1,590 (1) In-process research and development assets are assigned an indefinite life until project completion or date placed in service. The Company recorded amortization expense of $1.5 million and $0.1 million for the years ended March 31, 2018 and 2017, respectively. Amortization relating to developed technology and capitalized software is recorded within cost of revenue and amortization of customer relationships is recorded within sales and marketing expenses. Future estimated amortization expense of acquired intangibles as of March 31, 2018 is as follows: Purchased Intangible Capitalized Assets Software 2019 170 3,061 2020 170 2,841 2021 170 1,725 2022 170 215 Thereafter 740 — Total $ 1,420 $ 7,842 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 7. Fair Value Measurement The Company’s financial instruments include cash, cash equivalents, accounts receivable, investments, accounts payable, accrued expenses, capital lease obligations and long-term debt. The carrying amount of the Company’s long-term debt and capital lease obligations approximates its fair value due to the interest rates the Company believes it could obtain for arrangements with similar terms. The Company’s investments are classified as available-for-sale and reported at fair value in accordance with the market approach utilizing quoted prices that were directly or indirectly observable. The carrying amount of the remainder of the Company’s financial instruments approximated their fair values as of March 31, 2018 and 2017, due to the short-term nature of those instruments. 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. Fair values determined using “Level 1 inputs” utilize unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Fair values determined using "Level 2 Inputs" utilize quoted prices that are directly or indirectly observable. Fair values determined using “Level 3 inputs” utilize unobservable inputs for determining fair values of assets or liabilities that reflect an entity's own assumptions in pricing assets or liabilities. As of March 31, 2018 and 2017, we did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), other than the restructuring liability disclosed in Note 4. The following table summarizes financial assets measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of March 31, 2018 and 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 10,143 $ — $ 10,143 U.S. treasury securities — 2,990 2,990 Non-U.S. government securities — 5,996 5,996 Corporate securities — 49,885 49,885 Total assets $ 10,143 $ 58,871 $ 69,014 March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 7,478 $ — $ 7,478 U.S. treasury securities — 3,506 3,506 Non-U.S. government securities — 14,494 14,494 Corporate securities — 42,347 42,347 Total assets $ 7,478 $ 60,347 $ 67,825 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Since January 2012, we have entered into various term loan borrowings with Silicon Valley Bank. The term loans had fixed interest rates of 4.5% and principal repayment periods of 36 equal monthly installments which matured in January 2018. As of March 31, 2018, the Company had fully repaid its debt. As of March 31, 2017, the aggregate principal balance of the term loans was $1.7 million. As of March 31, 2018 and March 31, 2017, there were no amounts available for future borrowings under the term loans. We were in compliance with all covenants under the agreement through March 31, 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9 . Related Party Transactions Certain of the Company’s shareholders were also customers of the Company during the periods included in the consolidated financial statements. Revenue recognized during the years ended March 31, 2018, 2017 and 2016 and accounts receivable outstanding as of March 31, 2018 and 2017 related to these transactions was not material. On October 4, 2016, the Company completed a registered secondary public offering in which 4,600,000 ordinary shares were sold at a public offering price of $16.50 per share. All of the shares sold in the secondary offering were sold by the Company’s existing shareholders and the Company did not receive any proceeds from the sale of these shares. The Company incurred approximately $0.6 million in offering expenses on behalf of the selling shareholders in connection with the secondary offering which were included in general and administrative expenses in the consolidated statements of operations for the year ended March 31, 2017. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders’ Equity | 10. Shareholders’ Equity As of March 31, 2018, the following ordinary shares were reserved for future issuance under the 2015 Plan, Historical Plans and ESPP (as defined below in Note 11): As of March 31, 2018 Options outstanding under share option plans 6,229,860 Unvested restricted share units 32,763 Options and awards available for future grant under the 2015 Plan 8,761,886 Shares reserved for issuance under ESPP 1,035,729 Total authorized ordinary shares reserved for future issuance 16,060,238 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 11. Share-Based Compensation As of March 31, 2018, the Company has four share-based compensation plans and an employee stock purchase plan. Prior to the Company’s initial public offering (IPO) in November 2015, 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 ESPP) became effective. Subsequent to the IPO, grants of share-based awards have been made under the 2015 Plan and no further grants under the Historical Plans are permitted. 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 5.5 million 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 st 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. The Company settles share option exercises under the 2015 Plan 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. Initially, a total of 1.1 million shares of the Company's ordinary shares were reserved for future issuance under the ESPP. This number is subject to change in the event of a share split, share dividend or other change in capitalization. The ESPP may be terminated or amended by the board of directors at any time. The ESPP permits eligible employees to purchase shares by authorizing payroll deductions from 1% to 10% of his or her eligible compensation during an offering period, a duration of six months. Unless an employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase shares on the last day of the offering period at a price equal to 85% of the fair market value of the shares on the first business day or last business day of the offering period, whichever is lower. The first authorized offering period under the ESPP commenced on July 1, 2017. Share-based compensation expense recognized under the 2015 Plan, Historical Plans and ESPP in the accompanying consolidated statements of operations was as follows: Year ended March 31, 2018 2017 2016 Cost of revenue $ 1,053 $ 1,353 $ 633 Research and development 2,555 1,873 1,711 Sales and marketing 4,477 4,719 3,180 General and administrative 3,649 2,349 2,362 Total share-based compensation expense $ 11,734 $ 10,294 $ 7,886 In certain situations, the Board has approved modifications to employee share option agreements which has resulted in additional share-based compensation expense. The total modification expense in the years ended March 31, 2018, 2017 and 2016 was $0.5 million, $3.0 million and $1.4 million, respectively. Share Options Share option activity under the 2015 Plan and Historical Plans for the year ended March 31, 2018 was as follows: Number of Awards Weighted Exercise Price (2) Weighted Remaining Contractual Term (in years) Aggregate Intrinsic (in thousands) Outstanding as of March 31, 2017 8,681,261 $ 9.58 7.44 $ 111,178 Options granted 958,000 $ 26.52 Options exercised 2,960,859 $ 5.28 Options forfeited and cancelled 448,542 $ 16.44 Outstanding as of March 31, 2018 6,229,860 $ 13.78 7.40 $ 134,859 Exercisable as of March 31, 2018 2,411,167 $ 7.50 5.71 $ 67,334 (1) As of March 31, 2018 and 2017, 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, 2018 and 2017 respectively, and the exercise price of the underlying options. (2) Certain of the Company’s option grants have an exercise price denominated in British pounds. 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 cancelled was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or cancellation, as appropriate. The total intrinsic value of options exercised was $74.2 million, $24.8 million and $8.2 million for the years ended March 31, 2018, 2017 and 2016, respectively. Total cash proceeds from such option exercises were $15.6 million, $4.5 million and $0.9 million for the years ended March 31, 2018, 2017 and 2016, respectively. As of March 31, 2018, there was approximately $26.5 million of unrecognized share-based compensation expense related to unvested share-based awards subject to service-based vesting conditions, which is expected to be recognized over a weighted-average period of 2.75 years. ESPP The first authorized offering period under the ESPP commenced on July 1, 2017 and closed on December 29, 2017. The Company issued 64 thousand shares in connection with the offering and received cash proceeds of $1.4 million. In the year ended March 31, 2018, the Company recognized $0.7 million of share-based compensation expense under the ESPP. RSUs Since the Company’s IPO, RSUs have been granted to the Company’s Non-Employee Directors. Each Non-Employee Director receives an initial grant that vests over 3 years on an annual basis. Additionally, Non-Employee Directors receive an annual grant that vests fully on the one-year anniversary of the grant. RSU activity under the 2015 Plan for the year ended March 31, 2018 was as follows: Number of Shares Weighted Average Grant Date Fair Value Intrinsic Value (in thousands) Unvested restricted share units as of March 31, 2017 28,086 $ 15.63 $ 629 Restricted share units granted 33,694 $ 26.71 900 Restricted share units vested (22,518 ) $ 17.02 690 Restricted share units canceled (6,499 ) $ 30.77 (230 ) Unvested restricted share units as of March 31, 2018 32,763 $ 23.06 $ 1,161 As of March 31, 2018, there was approximately $0.5 million of unrecognized share-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 1.80 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company leases its facilities under non-cancelable operating leases and build-to-suit leases with various expiration dates through January 2028. Rent expense was $4.8 million, $3.2 million and $2.8 million for the years ended March 31, 2018, 2017 and 2016, respectively. The Company has also entered into various capital lease agreements for computer equipment with non-cancelable terms through January 2022 and has non-cancelable commitments related to its data centers. Future minimum payments for our capital leases, operating leases, build-to-suit leases and data centers as of March 31, 2018 are as follows: Year Ending March 31, Capital Leases Operating Leases Data Centers 2019 $ 1,248 $ 9,470 $ 19,707 2020 1,102 7,590 19,626 2021 1,102 5,194 19,331 2022 326 4,270 14,110 2023 — 4,264 3,314 Thereafter — 18,771 119 Total minimum lease payments $ 3,778 $ 49,559 $ 76,207 Less: Amount representing interest (263 ) Present value of capital lease obligations 3,515 Less: Current portion (1,125 ) Long-term portion of capital lease obligations $ 2,390 Certain amounts included in the table above relating to co-location leases for the Company’s servers include usage based charges in addition to base rent. Future lease payments in the table above do not include amounts due to the Company for future minimum sublease rental income of $1.1 million under non-cancelable subleases through 2020. The Company has outstanding letters of credit of $3.8 million and $3.8 million related to certain operating leases as of March 31, 2018 and 2017, respectively. Construction financing lease obligations Lexington, MA - U.S. Headquarters In February 2017, the Company entered into a lease agreement for a new U.S. headquarters located in a building (the “Building”) under construction at 191 Spring Street, Lexington, Massachusetts (191 Spring Lease). Under the terms of the 191 Spring Lease, the Company will initially lease approximately 79,145 square feet of office space for 10 years after initial occupancy commencing in January 2018. The Company executed a $1.3 million letter of credit upon signing the 191 Spring Lease. Pursuant to the work agreement entered into in connection with the 191 Spring Lease, the landlord is responsible for all costs associated with Base Building Work as defined under the 191 Spring Lease and will provide an allowance for normal tenant improvements up to an aggregate of $5.5 million. The Company has the option to extend the 191 Spring Lease for two successive five-year terms. During the Company’s first fiscal quarter of 2018, the Company determined that it should have accounted for the 191 Spring Lease as a build-to-suit lease as of March 31, 2017. The Company evaluated the impact of the error on the prior period consolidated financial statements and determined that the effect was not material to the consolidated financial statements as of and for the year ended March 31, 2017 and recorded the effect of the error in the December 31, 2017 interim condensed consolidated financial statements. The correction of the prior period balance sheet error had no impact on the previously reported results of operations or cash flows for the year ended March 31, 2017. Beginning in February 2017 and until construction was completed, the Company recorded certain estimated construction costs incurred and reported to it by the landlord for the Building as an asset and corresponding construction financing lease obligation on the consolidated balance sheets because the Company is deemed to be the owner of the building during the construction period for accounting purposes. Since the Company’s unit of account is related only to its portion of the Building, the Company determined that it does not have a land lease and has not recorded rent expense attributable to the land. Any incremental costs incurred directly by the Company are also capitalized. In each reporting period, the landlord estimates and reports to the Company construction costs incurred to date for the Building and the Company records its portion using allocation estimates. The Company periodically meets with the landlord and its construction manager to review these estimates and observe construction progress before recording such amounts. The construction of the 191 Spring lease was substantially completed during the quarter ended March 31, 2018, and because the Company concluded it had a collateralized letter of credit of $1.3 million, the Company did not meet the sale-leaseback criteria for derecognition of the building asset and liability. As a result, the Company continues to be the deemed owner of the Building and will treat the 191 Spring Lease as a financing obligation and depreciate the asset in accordance with the Company’s accounting policy. The monthly rent payments made to the lessor under the lease agreement are recorded in the Company’s financial statements as principal and interest on the financing obligation. For the year ended March 31, 2018, interest expense on lease financing obligations was $0.4 million. As of March 31, 2018, the future estimated commitments related to the financing obligations were $39.0 million and $10.4 million for principal and interest, respectively, through January 31, 2028. London, U.K. - U.K. Headquarters In January 2018, the Company entered into an Agreement for Lease (AFL) for its new U.K. headquarters located in London, England (UK Building). The AFL was entered into around the time the landlord had commenced a construction project to refurbish the UK Building and includes terms and conditions that are in effect during the construction project. Additionally, the AFL includes Leases in Agreed Form (Leases) to be executed upon completion of the construction project, which is expected in or around February 2019. Under the terms of the AFL and Leases, the Company will initially lease approximately 113,000 square feet of space for 56.50 British pounds per square foot per year over an initial noncancelable term of 10 years after initial occupancy, which is expected in the Company’s third fiscal quarter of 2020. The Company determined that it will account for the AFL as a build-to-suit lease as of March 31, 2018. Beginning in the fourth quarter 2018 and until construction is completed, the Company will record certain estimated construction costs incurred and reported to it by the landlord for the UK Building as an asset and corresponding construction financing lease obligation on the consolidated balance sheets because the Company is deemed to be the owner of the UK Building during the construction period for accounting purposes. Accordingly, the Company has recorded the estimated fair value of the UK Building as of the date of the AFL and its portion of project construction costs incurred by the landlord as an asset in “Property and equipment, net” and a related financing obligation in “Construction financing lease obligation” on the Company’s consolidated balance sheet. Since the Company’s unit of account is related only to its portion of the UK Building, the Company determined that it does not have a land lease and has not recorded rent expense attributable to the land. Any incremental costs incurred directly by the Company are also capitalized. In each reporting period, the landlord estimates and reports to the Company construction costs incurred to date for the UK Building and the Company records its portion using allocation estimates. The Company periodically meets with the landlord and its construction manager to review these estimates and observe construction progress before recording such amounts. As of March 31, 2018, Property and equipment, net, includes $31.2 million related to the UK Building and construction costs for the UK Building. The construction financing lease obligation related to the UK Building was $30.6 million and was incurred by the landlord only and no cash was paid to the landlord by us related to the UK Building since lease inception. Once the landlord completes the construction of the UK Building, the Company will evaluate the AFL and Leases in order to determine whether or not the AFL and Leases meet the criteria for “sale-leaseback” treatment. If the AFL and meet the “sale-leaseback” criteria, the Company will remove the asset and the related liability from its consolidated balance sheet and treat the as either an operating or a capital lease based on the Company’s assessment of the accounting guidance. If the Company continues to be the deemed owner, the Company will treat the AFL and as a financing obligation and will depreciate the asset in accordance with the Company’s accounting policy. 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, 2018, 2017 and 2016, 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, 2018, 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, 2018 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 13. 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, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 14. 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, 2018 2017 2016 United States $ 128,503 $ 90,932 $ 60,970 United Kingdom 81,720 61,188 55,276 South Africa 39,425 27,890 22,342 Other 12,249 6,553 3,253 Total revenue $ 261,897 $ 186,563 $ 141,841 Property and equipment, net by geographic location consists of the following: As of March 31, 2018 2017 United States (1) $ 62,064 $ 14,904 United Kingdom (1) 46,664 9,007 Australia 3,953 3,867 South Africa 6,512 3,815 Other 4,629 416 Total $ 123,822 $ 32,009 (1) Includes construction costs capitalized related to our U.S. and U.K. build-to-suit facilities of $39.4 million and $31.2 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Loss before income taxes consists of the following: Year ended March 31, 2018 2017 2016 United Kingdom $ (15,939 ) $ (8,162 ) $ 942 Foreign 6,258 4,923 (3,321 ) Loss before income taxes $ (9,681 ) $ (3,239 ) $ (2,379 ) The provision for income taxes in the accompanying consolidated financial statements is comprised of the following: As of March 31, 2018 2017 2016 Current tax expense: Domestic $ — $ — $ 154 Foreign 2,597 2,202 711 Total current tax expense 2,597 2,202 865 Deferred tax expense: Domestic — — — Foreign 108 — — Total deferred tax expense 108 — — Total provision for income taxes $ 2,705 $ 2,202 $ 865 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, 2018 2017 2016 Tax at statutory rate 19.0 % 20.0 % 20.0 % U.S. state taxes, net of federal 14.1 (1.0 ) (1.9 ) Foreign rate differential 36.8 (39.3 ) 18.0 Meals and entertainment (3.1 ) (7.4 ) (7.9 ) Branch income / loss 0.4 0.9 0.3 Share-based compensation 105.3 (4.0 ) (7.3 ) Foreign exchange — (24.8 ) 7.4 Non-deductible interest expense — (3.3 ) (13.9 ) Tax credits 8.1 15.6 7.9 Unremitted earnings (1.2 ) — — Change in valuation allowance (110.7 ) 124.7 48.1 Deferred tax true-ups 8.4 (12.4 ) (61.0 ) Tax reserves (21.5 ) (117.7 ) (23.8 ) Provision to return 0.4 (0.7 ) (6.5 ) Withholding taxes (3.5 ) — — Other foreign taxes — (6.7 ) — Non-deductible expenses (2.4 ) (10.6 ) (3.9 ) Deferred tax rate change (77.8 ) (1.3 ) (12.8 ) Other (0.2 ) — 0.9 Effective Tax Rate (27.9 )% (68.0 )% (36.4 )% Although the Company’s parent entity is organized under Jersey law, our affairs are, and are intended to be, managed and controlled ongoing in the United Kingdom. Therefore, the Company is resident in the United Kingdom for tax purposes. The Company’s parent entity is domiciled in the United Kingdom and its earnings are subject to 19%, 20% and 20% statutory tax rate for the years ended March 31, 2018, 2017 and 2016, respectively. The Company’s effective tax rate differs from the statutory rate each year primarily due to windfall tax benefits on equity award exercises, the valuation allowance maintained against the Company’s net deferred tax assets, the effect of tax rate changes primarily related to the U.S. Tax Cuts and Jobs Act enacted during the third quarter 2018, the jurisdictional earnings mix, tax reserves for uncertain tax positions, tax credits, withholding taxes, and other permanent differences primarily related to non-deductible expenses. Deferred tax assets and liabilities reflect the net tax effects of net operating loss carryovers and the temporary differences between the assets and liabilities carrying value for financial reporting and the amounts used for income tax purposes. T As of March 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 24,159 $ 7,835 Share-based compensation 2,760 3,406 Deferred revenue 2,237 2,184 Fixed assets 4,516 1,715 Lease liability 16,101 — Accrued compensation 742 1,062 Accrued costs 1,362 144 Deferred rent 473 243 Income tax credits 1,151 578 Other 109 462 Gross deferred tax assets 53,610 17,629 Deferred tax liabilities: Prepaid expenses (315 ) (8 ) Fixed assets (19,280 ) (2,891 ) Unremitted earnings (115 ) — Gross deferred tax liabilities (19,710 ) (2,899 ) Valuation allowance (34,008 ) (14,730 ) Deferred tax (liabilities) assets, net $ (108 ) $ — 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 for existing taxable temporary differences, tax planning strategies, and future taxable income projections 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 negative evidence, including the worldwide cumulative losses that the Company has incurred, the Company has determined that the uncertainty regarding realizing its deferred tax assets is sufficient to warrant the need for a full valuation allowance against its worldwide net deferred tax assets. The $19.3 million net increase in the valuation allowance from 2017 to 2018 is primarily due to operating losses incurred, windfall tax benefits on equity awards, and recording deferred tax assets associated with the adoption of ASU 2016-09, partially offset by the reduction in valuation allowance as a result of the enactment of the reduction of the U.S. statutory tax rate during 2018. During the third quarter of fiscal 2018, the Tax Cuts and Jobs Act (the Act) was enacted in the United States. This legislation makes significant changes in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The Act reduced the U.S. federal corporate tax rate from 35% to 21% effective on January 1, 2018. As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the newly enacted 21% rate. Changes in tax rates and tax laws are accounted for in the period of enactment. Therefore, during the year ended March 31, 2018, the Company recorded a charge offset with a change in valuation allowance of approximately $6.6 million related to the Company’s current estimate of the provisions of the Act. Additionally, during the third quarter of fiscal 2018, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. The Company will continue to refine its calculations as additional analysis is completed during the measurement period. In addition, the Company’s estimates may also be affected as the Company gains a more thorough understanding of changes to the tax law resulting from the passage of the Act. The Company anticipates completing its assessment of the impact of the Act during the third quarter 2019. As of March 31, 2018, the Company had U.K. net operating loss carryforwards of approximately $52.6 million that do not expire. As of March 31, 2018, the Company had U.S. federal net operating loss carryforwards of approximately $56.4 million. U.S. federal net operating loss carryforwards generated through March 31, 2017 of approximately $31.5 million expire at various dates through 2037, and U.S. federal net operating loss carryforwards generated during the year ended March 31, 2018 of approximately $24.9 million do not expire. As of March 31, 2018, the Company had U.S. state net operating loss carryforwards of approximately $39.5 million that expire at various dates through 2038. As of March 31, 2018, the Company had Australian net operating loss carryforwards of approximately $17.3 million that do not expire. As of March 31, 2018, the Company had Germany net operating loss carryforwards of approximately $2.4 million that do not expire. As of March 31, 2018, the Company had a U.K. income tax credit carryforward of $1.2 million that does not expire. Under Section 382 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 to offset its post-change income and taxes may be limited. In general, an ownership change occurs if there is a 50 percent cumulative change in ownership of the Company 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 resulting from future transactions in our share capital, some of which may be outside the Company’s control. The Company’s ability to utilize its net operating loss carryforwards or other tax attributes to offset U.S. federal and state taxable income in the future may be subject to future limitations. As of March 31, 2018 and 2017, the Company had liabilities for uncertain tax positions of $6.2 million and $4.9 million, respectively, 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: Year ended March 31, 2018 2017 Beginning balance $ 4,931 $ 2,326 Additions based on tax positions related to current year 142 4,200 Additions for tax positions of prior years 1,444 — Reductions for tax positions of prior years — (1,311 ) Reductions due to change in tax rate (353 ) — Expiration of statutes of limitation — (284 ) Ending balance $ 6,164 $ 4,931 Interest and penalty charges, if any, related to uncertain tax positions are classified as income tax expense in the accompanying consolidated statements of operations. As of March 31, 2018 and 2017, the Company had immaterial accrued interest or penalties related to uncertain tax positions. The Company is subject to taxation in the United Kingdom and several foreign jurisdictions. As of March 31, 2018, the Company is no longer subject to examination by taxing authorities in the United Kingdom for years prior to March 31, 2016. The significant foreign jurisdictions in which the Company operates are no longer subject to examination by taxing authorities for years prior to March 31, 2015. In addition, net operating loss carryforwards in certain jurisdictions may be subject to adjustments by taxing authorities in future years when 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, 2018. Income taxes have not been provided on approximately $8.1 million in undistributed foreign earnings because they are considered to be indefinitely reinvested. The tax payable on the earnings that are indefinitely reinvested in foreign operations would be immaterial. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events Share Option and RSU Grant On April 2, 2018, the Company granted approximately 1.3 million share options and 0.2 million RSUs to its employees as part of its annual share-based award grant. The grant date fair value per share for share options and RSUs was $15.20 and $34.82, respectively. On May 18, 2018, the Company executed a sublease for a portion of its Watertown, MA corporate office space and on May 22, 2018, the Company received the required consent to the sublease from the landlord of the Watertown office. Future minimum sublease rental income under the sublease, net of incentives, is approximately $1.8 million. |
Quarterly results of operations
Quarterly results of operations data (unaudited) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results of operations data (unaudited) | 17. 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, 2018. 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 10-K. 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 10-K. The results of historical periods are not necessarily indicative of the results to be expected for any future period. Quarter ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2018 2017 2017 2017 2017 2016 2016 2016 (in thousands, except per share amounts) Revenue $ 73,401 $ 67,272 $ 63,066 $ 58,158 $ 52,409 $ 48,333 $ 44,361 $ 41,460 Gross profit 53,225 49,544 46,523 42,906 38,955 35,189 31,984 30,121 Loss from operations (4,206 ) (1,129 ) (508 ) (1,111 ) (1,969 ) (3,030 ) (2,427 ) (2,947 ) Net (loss) income (6,554 ) (2,593 ) (1,339 ) (1,900 ) (2,618 ) (3,370 ) 303 244 Net (loss) income applicable to ordinary shareholders—basic $ (6,554 ) $ (2,593 ) $ (1,339 ) $ (1,900 ) $ (2,618 ) $ (3,370 ) $ 303 $ 244 Net (loss) income applicable to ordinary shareholders—diluted $ (6,554 ) $ (2,593 ) $ (1,339 ) $ (1,900 ) $ (2,618 ) $ (3,370 ) $ 303 $ 244 Net (loss) income per share applicable to ordinary shareholders: Basic $ (0.11 ) $ (0.05 ) $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) $ 0.01 $ 0.00 Diluted $ (0.11 ) $ (0.05 ) $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) $ 0.01 $ 0.00 Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders: Basic 58,264 57,505 57,027 56,292 55,375 54,949 54,636 54,287 Diluted 58,264 57,505 57,027 56,292 55,375 54,949 58,513 57,655 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
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, intangible asset valuations, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, construction financing lease obligations, restructuring 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. 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. Changes in estimates are recorded in the period in which they become known. |
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 16. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments 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. Cash and cash equivalents consist of cash on deposit with banks, amounts held in interest-bearing money market funds and investments with maturities of 90 days or less from the date of purchase. Cash equivalents are carried at cost, which approximates their fair market value. Investments not classified as cash equivalents are presented as either short-term or long-term investments based on both their stated maturities as well as the time period the Company intends to hold such securities. The Company determines the appropriate classification of investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company adjusts the cost of investments for amortization of premiums and accretion of discounts to maturity. The Company includes such amortization and accretion in interest income. The Company has classified all of its investments as of March 31, 2018 as available-for-sale pursuant to ASC 320, Investments – Debt and Equity Securities The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statements of operations if the Company has experienced a credit loss, has the intent to sell the investment, or if it is more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. The aggregate fair value of investments held by the Company in an unrealized loss position for less than twelve months as of March 31, 2018 was $45.9 million. As of March 31, 2018, the Company determined that no other-than-temporary impairments were required to be recognized in the consolidated statements of operations. The following is a summary of cash, cash equivalents and investments as of March 31, 2018 and March 31, 2017: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2018: Cash and cash equivalents due in 90 days or less $ 78,339 $ — $ — $ 78,339 Investments: U.S. treasury securities due in one year or less 2,995 — (5 ) 2,990 Non-U.S. government securities due in one year or less 5,996 1 (1 ) 5,996 Corporate securities due in one year or less 49,969 8 (92 ) 49,885 Total investments 58,960 9 (98 ) 58,871 Total cash, cash equivalents and investments $ 137,299 $ 9 $ (98 ) $ 137,210 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2017: Cash and cash equivalents due in 90 days or less $ 51,319 $ — $ — $ 51,319 Investments: U.S. treasury securities due in one year or less 3,501 5 — 3,506 Non-U.S. government securities due in one year or less 14,515 2 (23 ) 14,494 Corporate securities due in one year or less 42,460 2 (115 ) 42,347 Total investments 60,476 9 (138 ) 60,347 Total cash, cash equivalents and investments $ 111,795 $ 9 $ (138 ) $ 111,666 |
Revenue Recognition | Revenue Recognition The Company derives its revenue from two sources: (1) subscription revenue, which is 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 six 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 these costs, the Company incurs third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of intangible assets 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, investments 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, 2018 and 2017, no individual customer represented more than 10% of our accounts receivable. During the years ended March 31, 2018, 2017 and 2016, no individual customer represented more than 10% of our revenue. The Company's Board approved investment policy permits investments in fixed income securities denominated and payable in U.S. dollars including U.S. government and agency securities, non-U.S. government securities, money market instruments, commercial paper, certificates of deposit, corporate bonds and asset-backed securities. The Company diversifies its investment portfolio by investing in multiple types of investment-grade securities across various industries and issuers, limiting the amount invested in individual securities and limiting the average maturity to two years or less. As of March 31, 2018, our investments consisted primarily of investment-grade fixed income corporate debt securities with maturities ranging from 1 to 8 months, non-U.S. government securities with maturities ranging from 2 to 6 months and U.S. treasury securities with maturities in approximately 4 months. |
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, 2018, 2017 and 2016, bad debt expense was $185, $87 and $91, respectively. The allowance for doubtful accounts as of March 31, 2018 and 2017 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. Property and equipment acquired under capital leases is amortized over the lease term or, in circumstances where ownership is transferred by the end of the lease or there is a bargain purchase option, over the useful life that would be assigned if the asset were owned. 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 in the period of retirement or sale. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Buildings and building improvements (1) 10 Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 (1) Building and building improvement assets under build-to-suit accounting are depreciated over their useful lives during the lease period. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. |
Business Combinations | Business Combinations In accordance with ASC 805, Business Combinations We recognize identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair value of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired that are not individually identified and separately recognized. While we use our best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. Assumptions may be incomplete or inaccurate, and unanticipated events or circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill to the extent that we identify adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. |
Goodwill and acquired intangible assets | Goodwill and acquired intangible assets Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We have determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, we estimate the fair value of the reporting unit, based on our market capitalization, and compare this amount to the carrying value of the reporting unit. If we determine that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. Our annual goodwill impairment test is performed as of January 1 st Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. We amortize acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment and definite-lived intangible assets, 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 recoverability of these assets. 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 year ended March 31, 2018, the Company recorded an i mpairment of long-lived assets of $1.7 million due to the exit of its Watertown facilities in the fourth quarter of fiscal 2018. See Note 3. For the years ended March 31, |
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. 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, 2018, 2017 and 2016. |
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, 2018, 2017 and 2016, 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 non-U.S. subsidiaries by reviewing the currencies in which its respective operating activities occur. The functional currency of the Company’s non-U.S. 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 in the accompanying consolidated balance sheets. |
Net Loss Per Share | Net Loss Per Share The Company calculates basic and diluted net loss per ordinary share by dividing net loss by the weighted-average number of ordinary shares outstanding during the period. The Company has excluded other potentially dilutive shares, which include outstanding options to purchase ordinary shares and unvested restricted share units, from the weighted-average number of ordinary shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses incurred. 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, 2018, 2017 and 2016 as their effect would have been anti-dilutive for the periods presented: Year Ended March 31, 2018 2017 2016 Share options outstanding 6,230 8,681 6,870 Unvested restricted share units 33 28 42 Convertible preferred shares — — 8,144 |
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 $12.4 million, $11.5 million and $5.6 million during the years ended March 31, 2018, 2017 and 2016, 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, 2018 and 2017, we did not have any uncertain tax positions that would impact our net tax provision if recognized. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation awards in accordance with the provisions of ASC 718, Compensation—Stock Compensation See Note 11 for further description of the Company’s share-based compensation plans and a summary of the share-based award activity for the year ended March 31, 2018. Share Options The Company estimates the fair value of employee share options on the date of grant using the Black-Scholes option-pricing model, which requires the use of highly subjective estimates and assumptions. The Company estimates the expected term of share options for service-based awards utilizing the “Simplified Method,” as it 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. 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 the Company’s ordinary shares prior to the IPO and as its shares have been publicly traded for a limited time, we 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 uses an expected dividend rate of zero as it currently has no history or expectation of paying dividends on its ordinary shares. The fair value of the Company’s ordinary shares at the time of each share option grant is based on the closing market value of its ordinary shares on the grant date. The fair value of each share option grant was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Year ended March 31, 2018 2017 2016 Expected term (in years) 6.1 6.1 6.2 Risk-free interest rate 2.2 % 2.1 % 2.0 % Expected volatility 39.8 % 41.0 % 42.7 % Expected dividend yield — % — % — % Estimated grant date fair value per ordinary share $ 26.52 $ 20.22 $ 9.80 The weighted-average per share fair value of share options granted to employees during the years ended March 31, 2018, 2017 and 2016 was $11.12, $8.65 and $4.69 per share, respectively. Employee Stock Purchase Plan (ESPP) The Company estimates the fair value of its ESPP share options on the date of grant using the Black-Scholes option-pricing model, which requires the use of highly subjective estimates and assumptions. The Company estimates the expected term of ESPP share options based on the length of each offering period, which is six months. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the ESPP share option. Expected volatility is based on the Company’s historical volatility. The Company uses an expected dividend rate of zero as it currently has no history or expectation of paying dividends on its ordinary shares. The grant date fair value per ordinary share is based on the closing market value on the first day of each ESPP offering period. The first authorized offering period under the ESPP commenced on July 1, 2017. The fair value of each ESPP option grant was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Year ended March 31, 2018 Expected term (in years) 0.5 Risk-free interest rate 1.4 % Expected volatility 29.9 % Expected dividend yield — % Grant date fair value per ordinary share $ 27.15 The weighted-average per share fair value of ESPP share options granted to employees during the year ended March 31, 2018, was $6.41. Restricted Share Units For restricted share units issued under the Company’s share-based compensation plans, the fair value of each grant is calculated based on the closing market value of its ordinary shares on the date of grant. |
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. We generally lease office facilities under non-cancelable, operating lease agreements. We establish assets and liabilities for the estimated construction costs incurred under certain lease arrangements where we are considered the owner for accounting purposes only, or build-to-suit leases, to the extent we are involved in the construction of structural improvements or take construction risk prior to commencement of a lease. Accordingly, the Company records the estimated fair value of the building as of the lease inception date and its portion of project construction costs incurred by the landlord as an asset in “Property and equipment, net” and a related financing obligation in “Construction financing lease obligation” on the Company’s consolidated balance sheet. |
Comprehensive Loss | Comprehensive Loss Comprehensive 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 loss consists of net loss and other comprehensive income (loss), which includes certain changes in equity that are excluded from net loss. Specifically, cumulative foreign currency translation adjustments and unrealized gains and losses on investments are included in accumulated other comprehensive loss. As of March 31, 2018 and 2017, accumulated other comprehensive loss is presented separately on the consolidated balance sheets and consists of cumulative foreign currency translation adjustments and unrealized gains and losses on investments. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted 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. Recently Adopted Accounting Pronouncements On April 1, 2017, the Company adopted ASU No. 2016-09, Compensation – Stock Compensation of approximately $7.4 million In accordance with ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Topic 606 The Company will adopt ASU 2014-09 on April 1, 2018. The Company has elected to apply the modified retrospective method of adoption. The Company does not expect the adoption of ASU 2014-09 to have a material impact on its revenue recognition, however, the Company’s preliminary assessment is that there will be a material impact relating to the accounting for costs to obtain a contract. Under ASU 2014-09, the Company will be required to capitalize certain costs, primarily commission expense to sales representatives, on its consolidated balance sheet and amortize such costs over the contractual term or the average customer life. The Company has not yet completed its assessment of costs to obtain a contract under ASU 2014-09 and is still evaluating the impact on its results of operations. However, the Company’s preliminary assessment is that there will be a material impact to retained earnings upon adoption. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | The following is a summary of cash, cash equivalents and investments as of March 31, 2018 and March 31, 2017: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2018: Cash and cash equivalents due in 90 days or less $ 78,339 $ — $ — $ 78,339 Investments: U.S. treasury securities due in one year or less 2,995 — (5 ) 2,990 Non-U.S. government securities due in one year or less 5,996 1 (1 ) 5,996 Corporate securities due in one year or less 49,969 8 (92 ) 49,885 Total investments 58,960 9 (98 ) 58,871 Total cash, cash equivalents and investments $ 137,299 $ 9 $ (98 ) $ 137,210 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2017: Cash and cash equivalents due in 90 days or less $ 51,319 $ — $ — $ 51,319 Investments: U.S. treasury securities due in one year or less 3,501 5 — 3,506 Non-U.S. government securities due in one year or less 14,515 2 (23 ) 14,494 Corporate securities due in one year or less 42,460 2 (115 ) 42,347 Total investments 60,476 9 (138 ) 60,347 Total cash, cash equivalents and investments $ 111,795 $ 9 $ (138 ) $ 111,666 |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Buildings and building improvements (1) 10 Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 (1) Building and building improvement assets under build-to-suit accounting are depreciated over their useful lives during the lease period. |
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, 2018, 2017 and 2016 as their effect would have been anti-dilutive for the periods presented: Year Ended March 31, 2018 2017 2016 Share options outstanding 6,230 8,681 6,870 Unvested restricted share units 33 28 42 Convertible preferred shares — — 8,144 |
Summary of Weighted Average Assumption Utilized to Determine Fair Value of Option | The fair value of each share option grant was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Year ended March 31, 2018 2017 2016 Expected term (in years) 6.1 6.1 6.2 Risk-free interest rate 2.2 % 2.1 % 2.0 % Expected volatility 39.8 % 41.0 % 42.7 % Expected dividend yield — % — % — % Estimated grant date fair value per ordinary share $ 26.52 $ 20.22 $ 9.80 |
Summary of Assumptions Used in Black-Scholes Option Pricing Model to Estimate Fair Value Of Shares Under the ESPP | The fair value of each ESPP option grant was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Year ended March 31, 2018 Expected term (in years) 0.5 Risk-free interest rate 1.4 % Expected volatility 29.9 % Expected dividend yield — % Grant date fair value per ordinary share $ 27.15 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consists of the following: As of March 31, 2018 2017 Prepaid Expenses $ 10,766 $ 7,095 Research and development investment tax credits 3,353 2,102 Other current assets 1,183 857 Total prepaid expenses and other current assets $ 15,302 $ 10,054 |
Schedule of Property and Equipment, Net | Property and equipment, net, consists of the following: As of March 31, 2018 2017 Building and building improvements (1) $ 75,165 $ — Computer equipment (2) 102,821 69,996 Leasehold improvements 6,504 5,015 Furniture and fixtures 4,187 2,232 Office equipment 1,172 267 189,849 77,510 Less: Accumulated depreciation and amortization (2) (66,027 ) (45,501 ) Property and equipment, net $ 123,822 $ 32,009 (1) Includes construction costs capitalized related to our U.S. and U.K. build-to-suit facilities of $39.4 million and $31.2 million, respectively, and $4.5 million of Company funded building improvements related to our U.S. build-to-suit facility. (2) Includes property and equipment acquired under capital leases: As of March 31, As of March 31, 2018 2017 Computer equipment $ 4,713 $ 713 Less: Accumulated amortization (990 ) (59 ) $ 3,723 $ 654 |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following: As of March 31, 2018 2017 Accrued payroll and related benefits $ 15,325 $ 11,661 Accrued taxes payable 4,029 3,490 Construction financing lease obligation 2,421 — Restructuring liability 851 — Other accrued expenses 11,252 5,562 Total accrued expenses and other current liabilities $ 33,878 $ 20,713 |
Other Non-current Liabilities | Other non-current liabilities consists of the following: As of March 31, 2018 2017 Deferred rent $ 840 $ 981 Restructuring liability 74 — Other non-current liabilities 4,040 557 Total other non-current liabilities $ 4,954 $ 1,538 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of assets acquired and liabilities assumed: Fair value of assets acquired and liabilities assumed: Prepaid expenses $ 65 Accounts receivable 218 Intangible assets 1,654 Goodwill 5,142 Total assets acquired 7,079 Deferred revenue (796 ) Accrued liabilities (78 ) Total fair value of assets acquired and liabilities assumed $ 6,205 |
Summary of Pro Forma Financial Information (unaudited) | Year ended March 31, 2017 2016 Revenue $ 187,577 $ 142,951 Net loss (6,842 ) (8,690 ) Basic and diluted net loss per share $ (0.12 ) $ (0.21 ) Weighted average number of ordinary shares used in computing basic and diluted net loss per share 54,810 40,826 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Balance | The following table reflects goodwill activity in each of the periods presented: Year ended March 31, 2018 2017 Beginning balance $ 5,363 $ 254 Goodwill acquired 226 5,151 Goodwill adjustment — (9 ) Effect of foreign exchange rates 42 (33 ) Ending balance $ 5,631 $ 5,363 |
Schedule of Purchased Intangible Assets | Purchased intangible assets consist of the following: Weighted- Average March 31, 2018 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 9 $ 1,546 $ (213 ) $ 1,333 Customer relationships 6 108 (21 ) 87 Capitalized software 3 9,171 (1,329 ) 7,842 10,825 (1,563 ) 9,262 In-process research and development (1) 557 — 557 $ 11,382 $ (1,563 ) $ 9,819 Weighted- Average March 31, 2017 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 10 $ 1,546 $ (58 ) $ 1,488 Customer relationships 7 108 (6 ) 102 $ 1,654 $ (64 ) $ 1,590 (1) In-process research and development assets are assigned an indefinite life until project completion or date placed in service. |
Schedule of Future Estimated Amortization Expense of Acquired Intangibles | Future estimated amortization expense of acquired intangibles as of March 31, 2018 is as follows: Purchased Intangible Capitalized Assets Software 2019 170 3,061 2020 170 2,841 2021 170 1,725 2022 170 215 Thereafter 740 — Total $ 1,420 $ 7,842 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes financial assets measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of March 31, 2018 and 2017, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 10,143 $ — $ 10,143 U.S. treasury securities — 2,990 2,990 Non-U.S. government securities — 5,996 5,996 Corporate securities — 49,885 49,885 Total assets $ 10,143 $ 58,871 $ 69,014 March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 7,478 $ — $ 7,478 U.S. treasury securities — 3,506 3,506 Non-U.S. government securities — 14,494 14,494 Corporate securities — 42,347 42,347 Total assets $ 7,478 $ 60,347 $ 67,825 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Ordinary Share Reserved for Future Issuance under 2015 Plan, Historical Plans and ESPP | As of March 31, 2018, the following ordinary shares were reserved for future issuance under the 2015 Plan, Historical Plans and ESPP (as defined below in Note 11): As of March 31, 2018 Options outstanding under share option plans 6,229,860 Unvested restricted share units 32,763 Options and awards available for future grant under the 2015 Plan 8,761,886 Shares reserved for issuance under ESPP 1,035,729 Total authorized ordinary shares reserved for future issuance 16,060,238 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Expense Recognized in Statements of Operations | Share-based compensation expense recognized under the 2015 Plan, Historical Plans and ESPP in the accompanying consolidated statements of operations was as follows: Year ended March 31, 2018 2017 2016 Cost of revenue $ 1,053 $ 1,353 $ 633 Research and development 2,555 1,873 1,711 Sales and marketing 4,477 4,719 3,180 General and administrative 3,649 2,349 2,362 Total share-based compensation expense $ 11,734 $ 10,294 $ 7,886 |
Schedule of Share-Based Compensation, Stock Options, Activity | Share option activity under the 2015 Plan and Historical Plans for the year ended March 31, 2018 was as follows: Number of Awards Weighted Exercise Price (2) Weighted Remaining Contractual Term (in years) Aggregate Intrinsic (in thousands) Outstanding as of March 31, 2017 8,681,261 $ 9.58 7.44 $ 111,178 Options granted 958,000 $ 26.52 Options exercised 2,960,859 $ 5.28 Options forfeited and cancelled 448,542 $ 16.44 Outstanding as of March 31, 2018 6,229,860 $ 13.78 7.40 $ 134,859 Exercisable as of March 31, 2018 2,411,167 $ 7.50 5.71 $ 67,334 (1) As of March 31, 2018 and 2017, 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, 2018 and 2017 respectively, and the exercise price of the underlying options. (2) Certain of the Company’s option grants have an exercise price denominated in British pounds. 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 cancelled was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or cancellation, as appropriate. |
Schedule of Share-Based Compensation, Restricted Share Units, Activity | RSU activity under the 2015 Plan for the year ended March 31, 2018 was as follows: Number of Shares Weighted Average Grant Date Fair Value Intrinsic Value (in thousands) Unvested restricted share units as of March 31, 2017 28,086 $ 15.63 $ 629 Restricted share units granted 33,694 $ 26.71 900 Restricted share units vested (22,518 ) $ 17.02 690 Restricted share units canceled (6,499 ) $ 30.77 (230 ) Unvested restricted share units as of March 31, 2018 32,763 $ 23.06 $ 1,161 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Commitments Under Capital Leases | Future minimum payments for our capital leases, operating leases, build-to-suit leases and data centers as of March 31, 2018 are as follows: Year Ending March 31, Capital Leases Operating Leases Data Centers 2019 $ 1,248 $ 9,470 $ 19,707 2020 1,102 7,590 19,626 2021 1,102 5,194 19,331 2022 326 4,270 14,110 2023 — 4,264 3,314 Thereafter — 18,771 119 Total minimum lease payments $ 3,778 $ 49,559 $ 76,207 Less: Amount representing interest (263 ) Present value of capital lease obligations 3,515 Less: Current portion (1,125 ) Long-term portion of capital lease obligations $ 2,390 |
Segment and Geographic Inform35
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Area | 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, 2018 2017 2016 United States $ 128,503 $ 90,932 $ 60,970 United Kingdom 81,720 61,188 55,276 South Africa 39,425 27,890 22,342 Other 12,249 6,553 3,253 Total revenue $ 261,897 $ 186,563 $ 141,841 |
Summary of Property and Equipment, Net by Geographic Location | Property and equipment, net by geographic location consists of the following: As of March 31, 2018 2017 United States (1) $ 62,064 $ 14,904 United Kingdom (1) 46,664 9,007 Australia 3,953 3,867 South Africa 6,512 3,815 Other 4,629 416 Total $ 123,822 $ 32,009 (1) Includes construction costs capitalized related to our U.S. and U.K. build-to-suit facilities of $39.4 million and $31.2 million, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Loss Before Provision for Income Taxes | Loss before income taxes consists of the following: Year ended March 31, 2018 2017 2016 United Kingdom $ (15,939 ) $ (8,162 ) $ 942 Foreign 6,258 4,923 (3,321 ) Loss before income taxes $ (9,681 ) $ (3,239 ) $ (2,379 ) |
Schedule of Provision for Income Taxes | The provision for income taxes in the accompanying consolidated financial statements is comprised of the following: As of March 31, 2018 2017 2016 Current tax expense: Domestic $ — $ — $ 154 Foreign 2,597 2,202 711 Total current tax expense 2,597 2,202 865 Deferred tax expense: Domestic — — — Foreign 108 — — Total deferred tax expense 108 — — Total provision for income taxes $ 2,705 $ 2,202 $ 865 |
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, 2018 2017 2016 Tax at statutory rate 19.0 % 20.0 % 20.0 % U.S. state taxes, net of federal 14.1 (1.0 ) (1.9 ) Foreign rate differential 36.8 (39.3 ) 18.0 Meals and entertainment (3.1 ) (7.4 ) (7.9 ) Branch income / loss 0.4 0.9 0.3 Share-based compensation 105.3 (4.0 ) (7.3 ) Foreign exchange — (24.8 ) 7.4 Non-deductible interest expense — (3.3 ) (13.9 ) Tax credits 8.1 15.6 7.9 Unremitted earnings (1.2 ) — — Change in valuation allowance (110.7 ) 124.7 48.1 Deferred tax true-ups 8.4 (12.4 ) (61.0 ) Tax reserves (21.5 ) (117.7 ) (23.8 ) Provision to return 0.4 (0.7 ) (6.5 ) Withholding taxes (3.5 ) — — Other foreign taxes — (6.7 ) — Non-deductible expenses (2.4 ) (10.6 ) (3.9 ) Deferred tax rate change (77.8 ) (1.3 ) (12.8 ) Other (0.2 ) — 0.9 Effective Tax Rate (27.9 )% (68.0 )% (36.4 )% |
Components of Deferred Tax Assets and (Liabilities) | Deferred tax assets and liabilities reflect the net tax effects of net operating loss carryovers and the temporary differences between the assets and liabilities carrying value for financial reporting and the amounts used for income tax purposes. T As of March 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 24,159 $ 7,835 Share-based compensation 2,760 3,406 Deferred revenue 2,237 2,184 Fixed assets 4,516 1,715 Lease liability 16,101 — Accrued compensation 742 1,062 Accrued costs 1,362 144 Deferred rent 473 243 Income tax credits 1,151 578 Other 109 462 Gross deferred tax assets 53,610 17,629 Deferred tax liabilities: Prepaid expenses (315 ) (8 ) Fixed assets (19,280 ) (2,891 ) Unremitted earnings (115 ) — Gross deferred tax liabilities (19,710 ) (2,899 ) Valuation allowance (34,008 ) (14,730 ) Deferred tax (liabilities) assets, net $ (108 ) $ — |
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: Year ended March 31, 2018 2017 Beginning balance $ 4,931 $ 2,326 Additions based on tax positions related to current year 142 4,200 Additions for tax positions of prior years 1,444 — Reductions for tax positions of prior years — (1,311 ) Reductions due to change in tax rate (353 ) — Expiration of statutes of limitation — (284 ) Ending balance $ 6,164 $ 4,931 |
Quarterly results of operatio37
Quarterly results of operations data (unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
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, 2018. 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 10-K. 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 10-K. The results of historical periods are not necessarily indicative of the results to be expected for any future period. Quarter ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2018 2017 2017 2017 2017 2016 2016 2016 (in thousands, except per share amounts) Revenue $ 73,401 $ 67,272 $ 63,066 $ 58,158 $ 52,409 $ 48,333 $ 44,361 $ 41,460 Gross profit 53,225 49,544 46,523 42,906 38,955 35,189 31,984 30,121 Loss from operations (4,206 ) (1,129 ) (508 ) (1,111 ) (1,969 ) (3,030 ) (2,427 ) (2,947 ) Net (loss) income (6,554 ) (2,593 ) (1,339 ) (1,900 ) (2,618 ) (3,370 ) 303 244 Net (loss) income applicable to ordinary shareholders—basic $ (6,554 ) $ (2,593 ) $ (1,339 ) $ (1,900 ) $ (2,618 ) $ (3,370 ) $ 303 $ 244 Net (loss) income applicable to ordinary shareholders—diluted $ (6,554 ) $ (2,593 ) $ (1,339 ) $ (1,900 ) $ (2,618 ) $ (3,370 ) $ 303 $ 244 Net (loss) income per share applicable to ordinary shareholders: Basic $ (0.11 ) $ (0.05 ) $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) $ 0.01 $ 0.00 Diluted $ (0.11 ) $ (0.05 ) $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.06 ) $ 0.01 $ 0.00 Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders: Basic 58,264 57,505 57,027 56,292 55,375 54,949 54,636 54,287 Diluted 58,264 57,505 57,027 56,292 55,375 54,949 58,513 57,655 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($)Customer | Mar. 31, 2018USD ($)Customer$ / shares | Mar. 31, 2017USD ($)Customer$ / shares | Mar. 31, 2016USD ($)Customer$ / shares | Apr. 01, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Realized gains or losses on investments | $ 0 | ||||
Aggregate fair value of investments | $ 45,900,000 | $ 45,900,000 | |||
Estimated life recognized for deferred revenue | 6 years | ||||
Number of customers representing more than 10% of accounts receivable | Customer | 0 | 0 | 0 | ||
Number of customers representing more than 10% of revenue | Customer | 0 | 0 | 0 | ||
Bad debt expenses | $ 185,000 | $ 87,000 | $ 91,000 | ||
Annual goodwill impairment test date | January 1st of each year | ||||
Impairment of long-lived assets | $ 1,700,000 | $ 1,712,000 | 0 | 0 | |
Capitalized costs | 0 | 0 | 0 | ||
Advertising expenses incurred | 12,400,000 | 11,500,000 | $ 5,600,000 | ||
Uncertain tax positions impact to net tax provision | $ 0 | $ 0 | $ 0 | ||
Weighted-average per share fair value of share options granted to employees | $ / shares | $ 11.12 | $ 8.65 | $ 4.69 | ||
ASU 2016-09 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Increase in accumulated deficit and additional paid-in-capital | $ 100,000 | ||||
Cumulative-effect adjustment for certain off-balance sheet net operating loss carryforwards to retained earnings and deferred tax asset | $ 7,400,000 | ||||
2015 Employee Share Purchase Plan [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Expected dividend rate | 0.00% | ||||
Weighted-average per share fair value of share options granted to employees | $ / shares | $ 6.41 | ||||
Employee Stock Option [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Expected dividend rate | 0.00% | ||||
U.S. Treasury Securities [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Investment maturity period | 4 months | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Investment maturity period | 2 years | ||||
Maximum [Member] | Corporate Securities [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Investment maturity period | 8 months | ||||
Maximum [Member] | Non-U.S. Government Securities [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Investment maturity period | 6 months | ||||
Minimum [Member] | Corporate Securities [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Investment maturity period | 1 month | ||||
Minimum [Member] | Non-U.S. Government Securities [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Investment maturity period | 2 months |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents due in 90 days or less, Cost | $ 78,339 | $ 51,319 | $ 106,140 | $ 32,890 |
Investments, Cost | 58,960 | 60,476 | ||
Total cash, cash equivalents and investments, Cost | 137,299 | 111,795 | ||
Investments, Gross unrealized gains | 9 | 9 | ||
Investments, Gross unrealized losses | (98) | (138) | ||
Investments, Estimated fair value | 58,871 | 60,347 | ||
Cash and cash equivalents due in 90 days or less, Estimated fair value | 78,339 | 51,319 | ||
Total cash, cash equivalents and investments, Estimated fair value | 137,210 | 111,666 | ||
Total cash, cash equivalents and investments, Estimated fair value, Gross unrealized gains | 9 | 9 | ||
Total cash, cash equivalents and investments, Estimated fair value, Gross unrealized losses | (98) | (138) | ||
U.S. Treasury Securities Due in One Year or Less [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Investments, Cost | 2,995 | 3,501 | ||
Investments, Gross unrealized gains | 5 | |||
Investments, Gross unrealized losses | (5) | |||
Investments, Estimated fair value | 2,990 | 3,506 | ||
Non-U.S. Government Securities Due in One Year or Less [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Investments, Cost | 5,996 | 14,515 | ||
Investments, Gross unrealized gains | 1 | 2 | ||
Investments, Gross unrealized losses | (1) | (23) | ||
Investments, Estimated fair value | 5,996 | 14,494 | ||
Corporate Securities Due in One Year or Less [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Investments, Cost | 49,969 | 42,460 | ||
Investments, Gross unrealized gains | 8 | 2 | ||
Investments, Gross unrealized losses | (92) | (115) | ||
Investments, Estimated fair value | $ 49,885 | $ 42,347 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Mar. 31, 2018 | |
Buildings and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
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 Accoun41
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, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
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 | 6,230 | 8,681 | 6,870 |
Unvested Restricted Share Units [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 | 33 | 28 | 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 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Summary of Weighted-Average Assumption Utilized to Determine Fair Value of Option (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 2 months 12 days |
Risk-free interest rate | 2.20% | 2.10% | 2.00% |
Expected volatility | 39.80% | 41.00% | 42.70% |
Estimated grant date fair value per ordinary share | $ 26.52 | $ 20.22 | $ 9.80 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Summary of Assumptions Used in Black-Scholes Option Pricing Model to Estimate Fair Value Of Shares Under the ESPP (Detail) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 2 months 12 days |
Risk-free interest rate | 2.20% | 2.10% | 2.00% |
Expected volatility | 39.80% | 41.00% | 42.70% |
Grant date fair value per ordinary share | $ 26.52 | $ 20.22 | $ 9.80 |
2015 Employee Share Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | ||
Risk-free interest rate | 1.40% | ||
Expected volatility | 29.90% | ||
Expected dividend yield | 0.00% | ||
Grant date fair value per ordinary share | $ 27.15 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid Expenses | $ 10,766 | $ 7,095 |
Research and development investment tax credits | 3,353 | 2,102 |
Other current assets | 1,183 | 857 |
Total prepaid expenses and other current assets | $ 15,302 | $ 10,054 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 189,849 | $ 77,510 |
Less: Accumulated depreciation and amortization | (66,027) | (45,501) |
Property and equipment, net | 123,822 | 32,009 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 75,165 | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 102,821 | 69,996 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,504 | 5,015 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,187 | 2,232 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,172 | $ 267 |
Balance Sheet Components - Sc46
Balance Sheet Components - Schedule of Property and Equipment, Net (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 189,849 | $ 77,510 |
Less: Accumulated depreciation and amortization | (66,027) | (45,501) |
Property and equipment, net | 123,822 | 32,009 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,713 | 713 |
Less: Accumulated depreciation and amortization | (990) | (59) |
Property and equipment, net | 3,723 | 654 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction costs capitalized | 39,400 | |
Property and equipment, net | 62,064 | 14,904 |
United States [Member] | Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,500 | |
United Kingdom [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction costs capitalized | 31,200 | |
Property and equipment, net | $ 46,664 | $ 9,007 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization | $ 17,500 | $ 11,800 | $ 10,500 | |
Depreciation and amortization related to property and equipment acquired under capital leases | 900 | |||
Non-cash impairment charge of leasehold improvements | $ 1,700 | $ 1,712 | $ 0 | $ 0 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related benefits | $ 15,325 | $ 11,661 |
Accrued taxes payable | 4,029 | 3,490 |
Construction financing lease obligation | 2,421 | |
Restructuring liability | 851 | |
Other accrued expenses | 11,252 | 5,562 |
Total accrued expenses and other current liabilities | $ 33,878 | $ 20,713 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Non-current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Deferred rent | $ 840 | $ 981 |
Restructuring liability | 74 | |
Other non-current liabilities | 4,040 | 557 |
Total other non-current liabilities | $ 4,954 | $ 1,538 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring | $ 832 | |
Watertown, MA Corporate Office [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring | $ 800 | |
Fair value of the restructuring liability | 1,100 | 1,100 |
Deferred rent liabilities | $ 300 | $ 300 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 20, 2017 | Nov. 21, 2016 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
iSheriff [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 6,200 | ||||
Cash payment | 5,600 | ||||
Purchase price held back | 600 | ||||
Business combination, indemnification period | 1 year | ||||
Payments made for unresolved claims | $ 600 | ||||
Contingent consideration related to discretionary purchase price | $ 2,000 | ||||
Acquisition-related expenses | $ 700 | ||||
Other Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 750 | ||||
Cash payment | 750 | ||||
Estimated fair value of the prototype | $ 500 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Fair value of assets acquired and liabilities assumed: | |||
Goodwill | $ 5,631 | $ 5,363 | $ 254 |
iSheriff [Member] | |||
Fair value of assets acquired and liabilities assumed: | |||
Prepaid expenses | 65 | ||
Accounts receivable | 218 | ||
Intangible assets | 1,654 | ||
Goodwill | 5,142 | ||
Total assets acquired | 7,079 | ||
Deferred revenue | (796) | ||
Accrued liabilities | (78) | ||
Total fair value of assets acquired and liabilities assumed | $ 6,205 |
Acquisitions - Summary of Pro F
Acquisitions - Summary of Pro Forma Financial Information (unaudited) (Detail) - iSheriff [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||
Revenue | $ 187,577 | $ 142,951 |
Net loss | $ (6,842) | $ (8,690) |
Basic and diluted net loss per share | $ (0.12) | $ (0.21) |
Weighted average number of ordinary shares used in computing basic and diluted net loss per share | 54,810 | 40,826 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets - Schedule of Goodwill Balance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill Roll Forward | ||
Beginning balance | $ 5,363 | $ 254 |
Goodwill acquired | 226 | 5,151 |
Goodwill adjustment | (9) | |
Effect of foreign exchange rates | 42 | (33) |
Ending balance | $ 5,631 | $ 5,363 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Carrying Value | $ 11,382 | |
Intangible assets, net | 9,819 | $ 1,590 |
Finite-Lived Intangible Assets, Gross Carrying Value | 10,825 | 1,654 |
Accumulated Amortization | (1,563) | (64) |
Finite-Lived Intangible Assets, Net Carrying Value | 9,262 | $ 1,590 |
In-Process Research and Development [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | $ 557 | |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 9 years | 10 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 1,546 | $ 1,546 |
Accumulated Amortization | (213) | (58) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 1,333 | $ 1,488 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 6 years | 7 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 108 | $ 108 |
Accumulated Amortization | (21) | (6) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 87 | $ 102 |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 3 years | |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 9,171 | |
Accumulated Amortization | (1,329) | |
Finite-Lived Intangible Assets, Net Carrying Value | $ 7,842 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 1.5 | $ 0.1 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Expense of Acquired Intangibles (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net Carrying Value | $ 9,262 | $ 1,590 |
Purchased Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
2,019 | 170 | |
2,020 | 170 | |
2,021 | 170 | |
2,022 | 170 | |
Thereafter | 740 | |
Finite-Lived Intangible Assets, Net Carrying Value | 1,420 | |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
2,019 | 3,061 | |
2,020 | 2,841 | |
2,021 | 1,725 | |
2,022 | 215 | |
Finite-Lived Intangible Assets, Net Carrying Value | $ 7,842 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - Fair Value, Inputs, Level 3 [Member] - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [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 Measurement - Summar
Fair Value Measurement - Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Assets: | ||
Total assets | $ 69,014 | $ 67,825 |
Money Market Funds [Member] | ||
Assets: | ||
Total assets | 10,143 | 7,478 |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Total assets | 2,990 | 3,506 |
Non-U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 5,996 | 14,494 |
Corporate Securities [Member] | ||
Assets: | ||
Total assets | 49,885 | 42,347 |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) [Member] | ||
Assets: | ||
Total assets | 10,143 | 7,478 |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Total assets | 10,143 | 7,478 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | ||
Assets: | ||
Total assets | 58,871 | 60,347 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Total assets | 2,990 | 3,506 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | Non-U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 5,996 | 14,494 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | Corporate Securities [Member] | ||
Assets: | ||
Total assets | $ 49,885 | $ 42,347 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Fixed Interest Rate Term Loan [Member] - Silicon Valley Bank [Member] | 12 Months Ended | |
Mar. 31, 2018USD ($)Installment | Mar. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Line of credit facility, fixed interest rate | 4.50% | |
Line of credit facility, number of monthly installments | Installment | 36 | |
Line of credit facility, expiration date | Jan. 31, 2018 | |
Line of credit facility, frequency of periodic payment | monthly | |
Line of credit facility, outstanding | $ 1,700,000 | |
Line of credit available for future borrowing | $ 0 | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Secondary Public Offering [Member] $ / shares in Units, $ in Millions | Oct. 04, 2016USD ($)$ / sharesshares |
Related Party Transaction [Line Items] | |
Additional shares issued | shares | 4,600,000 |
Offering price per share | $ / shares | $ 16.50 |
General and Administrative Expenses [Member] | |
Related Party Transaction [Line Items] | |
Offering expenses | $ | $ 0.6 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Ordinary Share Reserved for Future Issuance (Detail) - shares | Mar. 31, 2018 | Mar. 31, 2017 |
Class of Stock [Line Items] | ||
Options outstanding under share option plans | 6,229,860 | 8,681,261 |
Unvested restricted share units | 32,763 | |
Total authorized ordinary shares reserved for future issuance | 16,060,238 | |
ESPP [Member] | ||
Class of Stock [Line Items] | ||
Total authorized ordinary shares reserved for future issuance | 1,035,729 | |
2015 Plan [Member] | ||
Class of Stock [Line Items] | ||
Options and awards available for future grant under the 2015 Plan | 8,761,886 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018USD ($)CompensationPlanshares | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
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 | shares | 16,060,238 | ||
Employee share option agreements, modification expense | $ 500 | $ 3,000 | $ 1,400 |
Total intrinsic value of options exercised | 74,200 | 24,800 | 8,200 |
Proceeds from exercises of share-based awards | 15,600 | 4,500 | 900 |
Share-based compensation expense recognized | 11,734 | $ 10,294 | $ 7,886 |
Service-Based Vesting Conditions [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ 26,500 | ||
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 2 years 9 months | ||
Unvested Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ 500 | ||
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 1 year 9 months 18 days | ||
Unvested Restricted Share Units [Member] | Non-Employee Director [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 | ||
2015 Plan [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ordinary shares reserved for future issuance | shares | 5,500,000 | ||
Increase in number of shares reserved and available for issuance, percentage | 5.00% | ||
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] | |||
Share-based compensation arrangement by share-based payment award, term | 6 months | ||
Ordinary shares reserved and authorized for issuance | shares | 1,100,000 | ||
Authorized payroll deductions percentage | 10.00% | ||
Percentage of fair market value of shares to be considered as share price | 85.00% | ||
Number of shares issued in connection with ESPP | shares | 64,000 | ||
Cash proceeds from shares issued in connection with ESPP | $ 1,400 | ||
Share-based compensation expense recognized | $ 700 | ||
2015 Employee Share Purchase Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized payroll deductions percentage | 1.00% |
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, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 11,734 | $ 10,294 | $ 7,886 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 1,053 | 1,353 | 633 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 2,555 | 1,873 | 1,711 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 4,477 | 4,719 | 3,180 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 3,649 | $ 2,349 | $ 2,362 |
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, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Awards, Beginning balance | 8,681,261 | |
Number of Awards, Options granted | 958,000 | |
Number of Awards, Options exercised | 2,960,859 | |
Number of Awards, Options forfeited and cancelled | 448,542 | |
Number of Awards, Ending balance | 6,229,860 | 8,681,261 |
Number of Awards, Exercisable | 2,411,167 | |
Weighted Average Exercise Price, Beginning balance | $ 9.58 | |
Weighted Average Exercise Price, Options granted | 26.52 | |
Weighted Average Exercise Price, Options exercised | 5.28 | |
Weighted Average Exercise Price, Options forfeited and cancelled | 16.44 | |
Weighted Average Exercise Price, Ending balance | 13.78 | $ 9.58 |
Weighted Average Exercise Price Exercisable | $ 7.50 | |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 4 months 24 days | 7 years 5 months 9 days |
Weighted Average Remaining Contractual Term, Exercisable | 5 years 8 months 16 days | |
Aggregate Intrinsic Value, Outstanding | $ 134,859 | $ 111,178 |
Aggregate Intrinsic Value, Exercisable | $ 67,334 |
Share-Based Compensation - Sc66
Share-Based Compensation - Schedule of Share-Based Compensation, Restricted Share Units, Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Shares, Unvested restricted share units, Ending balance | 32,763 |
Restricted Share Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Shares, Unvested restricted share units, Beginning balance | 28,086 |
Number of Shares, Restricted share units granted | 33,694 |
Number of Shares, Restricted share units vested | (22,518) |
Number of Shares, Restricted share units canceled | (6,499) |
Number of Shares, Unvested restricted share units, Ending balance | 32,763 |
Weighted Average Grant Date Fair Value, Unvested restricted share units, Beginning balance | $ / shares | $ 15.63 |
Weighted Average Grant Date Fair Value, Restricted share units granted | $ / shares | 26.71 |
Weighted Average Grant Date Fair Value, Restricted share units vested | $ / shares | 17.02 |
Weighted Average Grant Date Fair Value, Restricted share units canceled | $ / shares | 30.77 |
Weighted Average Grant Date Fair Value, Unvested restricted share units, Ending balance | $ / shares | $ 23.06 |
Intrinsic Value, Unvested restricted share units | $ | $ 629 |
Intrinsic Value, Restricted share units granted | $ | 900 |
Intrinsic Value, Restricted share units vested | $ | 690 |
Intrinsic Value, Restricted share units canceled | $ | (230) |
Intrinsic Value, Unvested restricted share units | $ | $ 1,161 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2017USD ($)ft²Option | Mar. 31, 2018USD ($)ft²Gbp_Per_Square_Foot | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Rent expenses | $ 4,800 | $ 3,200 | $ 2,800 | |
Letters of credit outstanding relating to operating leases | 3,800 | $ 3,800 | ||
Future minimum sublease rental income under non-cancelable subleases | 1,100 | |||
Interest expense on lease financial obligation | 400 | |||
Financial obligation of future estimate commitments, Principal | 39,000 | |||
Financial obligation of future estimate commitments, interest | 10,400 | |||
Construction financing lease obligation | $ 67,205 | |||
191 Spring Lease [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Letters of credit outstanding relating to operating leases | $ 1,300 | |||
Area of office space leased | ft² | 79,145 | |||
Lease term | 10 years | |||
Lease commenced period | January 2,018 | |||
Number of renewal options | Option | 2 | |||
Lease contract additional extension option | The Company has the option to extend the 191 Spring Lease for two successive five-year terms. | |||
Lease renewel term | 5 years | |||
191 Spring Lease [Member] | Maximum [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Allowance for normal tenant improvements | $ 5,500 | |||
Agreement For Lease [Member] | United Kingdom [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Area of office space leased | ft² | 113,000 | |||
Lease term | 10 years | |||
Lease commenced period | February 2,019 | |||
Price per square foot per year | Gbp_Per_Square_Foot | 56.50 | |||
Agreement For Lease [Member] | United Kingdom [Member] | Building [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Construction financing lease obligation | $ 30,600 | |||
Agreement For Lease [Member] | United Kingdom [Member] | Building [Member] | Property and equipment, net [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Construction costs | $ 31,200 |
Commitments and Contingencies68
Commitments and Contingencies - Future Minimum Payments for Capital Leases, Operating Leases and Data Centers (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Capital Leases Operating Leases And Data Centers [Line Items] | ||
Capital Leases, 2019 | $ 1,248 | |
Capital Leases, 2020 | 1,102 | |
Capital Leases, 2021 | 1,102 | |
Capital Leases, 2022 | 326 | |
Total minimum lease payments | 3,778 | |
Less: Amount representing interest | (263) | |
Present value of capital lease obligations | 3,515 | |
Less: Current portion | (1,125) | $ (233) |
Long-term capital lease obligations | 2,390 | $ 245 |
Operating Leases, 2019 | 9,470 | |
Operating Leases, 2020 | 7,590 | |
Operating Leases, 2021 | 5,194 | |
Operating Leases, 2022 | 4,270 | |
Operating Leases, 2023 | 4,264 | |
Operating Leases, Thereafter | 18,771 | |
Total minimum lease payments | 49,559 | |
Data Centers [Member] | ||
Capital Leases Operating Leases And Data Centers [Line Items] | ||
Data Centers, 2019 | 19,707 | |
Data Centers, 2020 | 19,626 | |
Data Centers, 2021 | 19,331 | |
Data Centers, 2022 | 14,110 | |
Data Centers, 2023 | 3,314 | |
Data Centers, Thereafter | 119 | |
Total minimum lease payments | $ 76,207 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Employee Benefits And Share Based Compensation [Abstract] | |
Additional contribution percentage by the company | 1.00% |
Matching contributions or profit-sharing contributions to 401(k) plan by employer | $ 0 |
Segment and Geographic Inform70
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment and Geographic Inform71
Segment and Geographic Information - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 73,401 | $ 67,272 | $ 63,066 | $ 58,158 | $ 52,409 | $ 48,333 | $ 44,361 | $ 41,460 | $ 261,897 | $ 186,563 | $ 141,841 |
United States [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 128,503 | 90,932 | 60,970 | ||||||||
United Kingdom [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 81,720 | 61,188 | 55,276 | ||||||||
South Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 39,425 | 27,890 | 22,342 | ||||||||
Other [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 12,249 | $ 6,553 | $ 3,253 |
Segment and Geographic Inform72
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 123,822 | $ 32,009 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 62,064 | 14,904 |
United Kingdom [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 46,664 | 9,007 |
Australia [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 3,953 | 3,867 |
South Africa [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 6,512 | 3,815 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 4,629 | $ 416 |
Segment and Geographic Inform73
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Parenthetical) (Detail) $ in Millions | Mar. 31, 2018USD ($) |
United States [Member] | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Construction costs capitalized related to build-to-suit facilities | $ 39.4 |
United Kingdom [Member] | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Construction costs capitalized related to build-to-suit facilities | $ 31.2 |
Income Taxes - Summary of Loss
Income Taxes - Summary of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United Kingdom | $ (15,939) | $ (8,162) | $ 942 |
Foreign | 6,258 | 4,923 | (3,321) |
Loss before income taxes | $ (9,681) | $ (3,239) | $ (2,379) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 0 | $ 0 | $ 154 |
Foreign | 2,597 | 2,202 | 711 |
Total current tax expense | 2,597 | 2,202 | 865 |
Domestic | 0 | 0 | 0 |
Foreign | 108 | 0 | 0 |
Total deferred tax expense | 108 | 0 | 0 |
Total provision for income taxes | $ 2,705 | $ 2,202 | $ 865 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Tax at statutory rate | 21.00% | 35.00% | 19.00% | 20.00% | 20.00% |
U.S. state taxes, net of federal | 14.10% | (1.00%) | (1.90%) | ||
Foreign rate differential | 36.80% | (39.30%) | 18.00% | ||
Meals and entertainment | (3.10%) | (7.40%) | (7.90%) | ||
Branch income / loss | 0.40% | 0.90% | 0.30% | ||
Share-based compensation | 105.30% | (4.00%) | (7.30%) | ||
Foreign exchange | (24.80%) | 7.40% | |||
Non-deductible interest expense | (3.30%) | (13.90%) | |||
Tax credits | 8.10% | 15.60% | 7.90% | ||
Unremitted earnings | (1.20%) | ||||
Change in valuation allowance | (110.70%) | 124.70% | 48.10% | ||
Deferred tax true-ups | 8.40% | (12.40%) | (61.00%) | ||
Tax reserves | (21.50%) | (117.70%) | (23.80%) | ||
Provision to return | 0.40% | (0.70%) | (6.50%) | ||
Withholding taxes | (3.50%) | ||||
Other foreign taxes | (6.70%) | ||||
Non-deductible expenses | (2.40%) | (10.60%) | (3.90%) | ||
Deferred tax rate change | (77.80%) | (1.30%) | (12.80%) | ||
Other | (0.20%) | 0.90% | |||
Effective Tax Rate | (27.90%) | (68.00%) | (36.40%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes [Line Items] | |||||
Tax at statutory rate | 21.00% | 35.00% | 19.00% | 20.00% | 20.00% |
Change in deferred tax assets valuation allowance, amount | $ 6,600,000 | ||||
Liabilities for uncertain tax positions | $ 6,200,000 | 6,200,000 | $ 4,900,000 | ||
Uncertain tax positions impact to net tax provision | 0 | 0 | $ 0 | ||
Undistributed foreign earnings | 8,100,000 | 8,100,000 | |||
U. K. [Member] | Domestic Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 52,600,000 | 52,600,000 | |||
Net operating loss carryforwards | 1,200,000 | 1,200,000 | |||
U.S. Federal [Member] | Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 56,400,000 | 56,400,000 | |||
U.S. State [Member] | Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 39,500,000 | $ 39,500,000 | |||
Net operating loss carryforwards, expiration year | 2,038 | ||||
Australian [Member] | Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 17,300,000 | $ 17,300,000 | |||
Germany [Member] | Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 2,400,000 | 2,400,000 | |||
Expires at Various Dates [Member] | U.S. Federal [Member] | Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 31,500 | 31,500 | |||
Net operating loss carryforwards, expiration year | 2,037 | ||||
Do Not Expire [Member] | U.S. Federal [Member] | Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 24,900,000 | $ 24,900,000 | |||
ASU 2016-09 [Member] | |||||
Income Taxes [Line Items] | |||||
Net increase in valuation allowance | $ 19,300,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and (Liabilities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 24,159 | $ 7,835 |
Share-based compensation | 2,760 | 3,406 |
Deferred revenue | 2,237 | 2,184 |
Fixed assets | 4,516 | 1,715 |
Lease liability | 16,101 | |
Accrued compensation | 742 | 1,062 |
Accrued costs | 1,362 | 144 |
Deferred rent | 473 | 243 |
Income tax credits | 1,151 | 578 |
Other | 109 | 462 |
Gross deferred tax assets | 53,610 | 17,629 |
Deferred tax liabilities: | ||
Prepaid expenses | (315) | (8) |
Fixed assets | (19,280) | (2,891) |
Unremitted earnings | (115) | |
Gross deferred tax liabilities | (19,710) | (2,899) |
Valuation allowance | (34,008) | $ (14,730) |
Deferred tax (liabilities) assets, net | $ (108) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 4,931 | $ 2,326 |
Additions based on tax positions related to current year | 142 | 4,200 |
Additions for tax positions of prior years | 1,444 | |
Reductions for tax positions of prior years | (1,311) | |
Reductions due to change in tax rate | (353) | |
Expiration of statutes of limitation | (284) | |
Ending balance | $ 6,164 | $ 4,931 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 02, 2018 | Mar. 31, 2018 | May 18, 2018 |
Subsequent Event [Line Items] | |||
Options granted | 958,000 | ||
Future minimum sublease rental income | $ 1.1 | ||
Subsequent Event [Member] | Watertown, MA [Member] | |||
Subsequent Event [Line Items] | |||
Future minimum sublease rental income | $ 1.8 | ||
Share Options [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Options granted | 1,300,000 | ||
Grant date fair value of options | $ 15.20 | ||
Restricted Share Units (RSUs) [Member] | |||
Subsequent Event [Line Items] | |||
Number of Shares, Restricted share units granted | 33,694 | ||
Restricted Share Units (RSUs) [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of Shares, Restricted share units granted | 200,000 | ||
Grant date fair value of restricted share units | $ 34.82 |
Quarterly Results of Operatio81
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, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 73,401 | $ 67,272 | $ 63,066 | $ 58,158 | $ 52,409 | $ 48,333 | $ 44,361 | $ 41,460 | $ 261,897 | $ 186,563 | $ 141,841 |
Gross profit | 53,225 | 49,544 | 46,523 | 42,906 | 38,955 | 35,189 | 31,984 | 30,121 | 192,198 | 136,249 | 100,032 |
Loss from operations | (4,206) | (1,129) | (508) | (1,111) | (1,969) | (3,030) | (2,427) | (2,947) | (6,954) | (10,373) | (2,574) |
Net (loss) income | (6,554) | (2,593) | (1,339) | (1,900) | (2,618) | (3,370) | 303 | 244 | $ (12,386) | $ (5,441) | $ (3,244) |
Net (loss) income applicable to ordinary shareholders—basic | (6,554) | (2,593) | (1,339) | (1,900) | (2,618) | (3,370) | 303 | 244 | |||
Net (loss) income applicable to ordinary shareholders—diluted | $ (6,554) | $ (2,593) | $ (1,339) | $ (1,900) | $ (2,618) | $ (3,370) | $ 303 | $ 244 | |||
Net (loss) income per share applicable to ordinary shareholders: | |||||||||||
Basic | $ (0.11) | $ (0.05) | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) | $ 0.01 | $ 0 | |||
Diluted | $ (0.11) | $ (0.05) | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.06) | $ 0.01 | $ 0 | |||
Weighted-average number of ordinary shares used in computing net (loss) income per share applicable to ordinary shareholders: | |||||||||||
Basic | 58,264 | 57,505 | 57,027 | 56,292 | 55,375 | 54,949 | 54,636 | 54,287 | |||
Diluted | 58,264 | 57,505 | 57,027 | 56,292 | 55,375 | 54,949 | 58,513 | 57,655 |