Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MIME | |
Entity Registrant Name | Mimecast Ltd | |
Entity Central Index Key | 1,644,675 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 59,709,848 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 107,530 | $ 78,339 |
Short-term investments | 41,958 | 58,871 |
Accounts receivable, net | 56,677 | 65,392 |
Deferred contract costs, net | 5,530 | |
Prepaid expenses and other current assets | 13,300 | 15,302 |
Total current assets | 224,995 | 217,904 |
Property and equipment, net | 124,117 | 123,822 |
Intangible assets, net | 8,557 | 9,819 |
Goodwill | 5,602 | 5,631 |
Deferred contract costs, net of current portion | 19,817 | |
Other assets | 1,463 | 1,222 |
Total assets | 384,551 | 358,398 |
Current liabilities | ||
Accounts payable | 4,530 | 6,052 |
Accrued expenses and other current liabilities | 33,145 | 33,878 |
Deferred revenue | 120,612 | 123,057 |
Current portion of capital lease obligations | 1,154 | 1,125 |
Total current liabilities | 159,441 | 164,112 |
Deferred revenue, net of current portion | 12,002 | 18,045 |
Long-term capital lease obligations | 2,142 | 2,390 |
Construction financing lease obligation | 69,613 | 67,205 |
Other non-current liabilities | 4,300 | 4,954 |
Total liabilities | 247,498 | 256,706 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity | ||
Ordinary shares, $0.012 par value, 300,000,000 shares authorized; 59,599,656 and 58,949,644 shares issued and outstanding as of June 30, 2018 and March 31, 2018, respectively | 715 | 707 |
Additional paid-in capital | 223,891 | 212,839 |
Accumulated deficit | (80,102) | (106,507) |
Accumulated other comprehensive loss | (7,451) | (5,347) |
Total shareholders' equity | 137,053 | 101,692 |
Total liabilities and shareholders' equity | $ 384,551 | $ 358,398 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Mar. 31, 2018 |
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 | 59,599,656 | 58,949,644 |
Ordinary shares, outstanding | 59,599,656 | 58,949,644 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 78,404 | $ 58,158 |
Cost of revenue | 20,976 | 15,252 |
Gross profit | 57,428 | 42,906 |
Operating expenses | ||
Research and development | 13,100 | 7,921 |
Sales and marketing | 34,203 | 27,559 |
General and administrative | 12,214 | 8,537 |
Total operating expenses | 59,517 | 44,017 |
Loss from operations | (2,089) | (1,111) |
Other income (expense) | ||
Interest income | 444 | 239 |
Interest expense | (527) | (31) |
Foreign exchange expense and other, net | (441) | (540) |
Total other income (expense), net | (524) | (332) |
Loss before income taxes | (2,613) | (1,443) |
Provision for income taxes | 858 | 457 |
Net loss | $ (3,471) | $ (1,900) |
Net loss per ordinary share | ||
Basic and diluted | $ (0.06) | $ (0.03) |
Weighted-average number of ordinary shares outstanding: | ||
Basic and diluted | 59,175 | 56,292 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (3,471) | $ (1,900) |
Other comprehensive (loss) income: | ||
Net unrealized gains (losses) on investments, net of tax | 64 | (66) |
Change in foreign currency translation adjustment | (2,168) | 232 |
Reclassification of cumulative translation adjustment to net loss upon liquidation of subsidiaries, net of tax | 188 | |
Total other comprehensive (loss) income | (2,104) | 354 |
Comprehensive loss | $ (5,575) | $ (1,546) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net loss | $ (3,471) | $ (1,900) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 6,926 | 3,609 |
Share-based compensation expense | 5,181 | 2,646 |
Amortization of deferred contract costs | 1,386 | |
Other non-cash items | (19) | 84 |
Unrealized currency (gain) loss on foreign denominated transactions | (111) | 383 |
Changes in assets and liabilities: | ||
Accounts receivable | 6,079 | 4,429 |
Prepaid expenses and other current assets | 1,569 | 436 |
Deferred contract costs | (3,835) | |
Other assets | (98) | (6) |
Accounts payable | 108 | 1,276 |
Deferred revenue | 2,521 | 2,244 |
Accrued expenses and other liabilities | 398 | (1,563) |
Net cash provided by operating activities | 16,634 | 11,638 |
Investing activities | ||
Purchases of investments | (15,531) | |
Maturities of investments | 17,000 | 15,500 |
Purchases of property, equipment and capitalized software | (7,575) | (7,730) |
Net cash provided by (used in) investing activities | 9,425 | (7,761) |
Financing activities | ||
Proceeds from issuance of ordinary shares | 5,904 | 3,445 |
Payments on debt | (533) | |
Payments on capital lease obligations | (203) | |
Payments on construction financing lease obligation | (413) | |
Net cash provided by financing activities | 5,288 | 2,912 |
Effect of foreign exchange rates on cash | (2,156) | 881 |
Net increase in cash and cash equivalents | 29,191 | 7,670 |
Cash and cash equivalents at beginning of period | 78,339 | 51,319 |
Cash and cash equivalents at end of period | 107,530 | 58,989 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 517 | 21 |
Cash paid during the period for income taxes | 37 | 105 |
Supplemental disclosure of non-cash investing and financing activities | ||
Unpaid purchases of property, equipment and capitalized software | 1,168 | 2,951 |
Property and equipment acquired under capital lease | 3,109 | |
Construction costs capitalized under financing lease obligations | $ 2,991 | $ 9,433 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation 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. Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These financial statements and notes should be read in conjunction with the audited consolidated financial statements for the year ended March 31, 2018 and related notes, together with management’s discussion and analysis of financial condition and results of operations, contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on May 29, 2018. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended March 31, 2018 contained in the Company’s Annual Report on Form 10-K and include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position as of June 30, 2018, and for the three months ended June 30, 2018 and 2017. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of June 30, 2018, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K, have not changed, except as discussed below. Revenue Recognition Adoption of ASC 606 Effective April 1, 2018, the Company adopted the requirements of ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 Revenue Recognition Policy Under ASC 606 the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s cloud services and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. In the three months ended June 30, 2018 and 2017, subscription revenue made up the substantial majority of the Company’s revenue and professional services and other revenue made up less than 5% of the Company’s revenue. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. The Company sells its products and services directly through the Company’s sales force and also indirectly through third-party resellers. In accordance with the provisions of ASC 606, the Company has considered certain factors in determining whether the end-user or the third-party reseller is the customer in arrangements involving resellers. The Company concluded that in the majority of transactions with resellers, the reseller is the 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 condensed consolidated statements of operations based upon the amount billed to the reseller. For transactions where we have determined that the end-user is the ultimate customer, revenue is presented in the accompanying condensed consolidated statements of operations based on the transaction price with the end-user. The Company recognizes subscription and support revenue ratably over the term of the contract, typically one year in duration, beginning on the date the customer is provided access to the Company’s service. For performance obligations related to set-up and ingestion, including implementation assistance and data services, respectively, the Company recognizes revenue using output measures of performance that reflect the transfer of promised services to the customer consistent with progress to completion. The Company recognizes revenue on training, consulting, and other professional services contracts using output measures of performance as services are completed. Training, consulting, and other professional services are considered separate performance obligations. 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 primarily bills and collects payments from customers for its services in advance on a monthly and annual basis. In some instances, the Company receives non-refundable upfront payments for activities that do not constitute a promise to transfer a service and therefore are considered administrative tasks, not separate performance obligations. The upfront payments are evaluated to determine whether a material right to a discount upon renewal of the subscription exists. When the Company concludes a material right does not exist, the Company recognizes revenue related to the upfront payment over the initial contract term. When the Company concludes a material right does exist, the Company recognizes revenue related to the upfront payment over the estimated customer benefit period, which has been determined to be six years. All of the Company’s performance obligations, and associated revenue, are generally transferred to customers over time, with the exception of training, consulting and other professional services, which are generally transferred to the customer at a point in time. Revenue is presented net of any taxes collected from customers. Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on the Company’s overall pricing objectives, taking into consideration market conditions and other factors, including the value of the Company’s contracts, the products sold, customer demographics, the Company’s sales channel, and the number and size of users within the Company’s contracts. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription and other services described above and is recognized as the revenue recognition criteria are met. 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 non-current in the accompanying condensed Deferred Cost Policy As part of the Company’s adoption of ASC 606 , the Company capitalizes incremental costs of obtaining revenue contracts, which primarily consist of commissions paid to its sales representatives. The Company amortizes these commissions over six years on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. Six years represents the estimated benefit period of the customer relationship taking into account factors such as peer estimates of technology lives and customer lives as well as the Company's own historical data. No commissions are paid related to contract renewals. The current and noncurrent portions of deferred commissions are included in deferred contract costs, net and deferred contract costs, net of current portion, respectively in its condensed consolidated balance sheets. Impact of Adoption of ASC 606 The adoption of ASC 606 resulted in a decrease to deferred revenue of $6.0 million and an increase of $23.8 million in deferred contract costs as of April 1, 2018. We recorded the deferred tax impact associated with the cumulative-effect adjustment of adopting ASC 606 to accumulated deficit with an equal and offsetting adjustment to our valuation allowance. The decrease to deferred revenue upon adoption was primarily due to a change in the accounting treatment for certain upfront fees that were accounted for as a single unit of account under Legacy GAAP and are accounted for as separate performance obligations under ASC 606. The increase in deferred contract costs was the result of the capitalization of certain commissions that were determined to be incremental costs of obtaining a contract. Under Legacy GAAP, the Company expensed all commission costs as incurred. As a result of the adoption, the Company recorded an increase to accumulated deficit of $29.9 million as of April 1, 2018, which was the net cumulative impact associated with the capitalization of sales commissions and the adjustment to deferred revenue. The cumulative effect of the changes made to our April 1, 2018 balance sheet for the adoption of ASC 606 were as follows: Balance as of March 31, 2018 Adjustments Due to Adoption of ASC 606 Balance as of April 1, 2018 Assets Deferred contract costs, net $ — $ 5,494 $ 5,494 Deferred contract costs, net of current portion — 18,339 18,339 Liabilities Deferred revenue 123,057 (517 ) 122,540 Deferred revenue, net of current portion 18,045 (5,526 ) 12,519 Shareholders' equity Accumulated deficit (106,507 ) 29,876 (76,631 ) In accordance with the requirements of ASC 606, the disclosure for the quantitative effect and the significant changes between the reported results under ASC 606 and those that would have been reported under Legacy GAAP on our unaudited condensed Three months ended June 30, 2018 As Reported - ASC 606 Amounts without Adoption of ASC 606 Effect of Change Increase/(Decrease) Income Statement Revenues $ 78,404 $ 78,108 $ 296 Operating expenses Sales and marketing (34,203 ) (36,467 ) (2,264 ) Net loss $ (3,471 ) $ (6,031 ) $ 2,560 As of June 30, 2018 As Reported - ASC 606 Balances without Adoption of ASC 606 Effect of Change Increase/(Decrease) Balance Sheet Assets Deferred contract costs, net $ 5,530 $ — $ 5,530 Deferred contract costs, net of current portion 19,817 — 19,817 Liabilities Deferred revenue 120,612 120,553 59 Deferred revenue, net of current portion 12,002 18,217 (6,215 ) Shareholders' equity Accumulated deficit (80,102 ) (107,418 ) 27,316 Revenue recognized during the three months ended June 30, 2018 from amounts included in deferred revenue at the beginning of the period was approximately $50.8 million. Revenue recognized during the three months ended June 30, 2018 from performance obligations satisfied or partially satisfied in previous periods was immaterial. The adoption of ASC 606 had no impact to net operating cash flows. Contracted revenue as of June 30, 2018 that has not yet been recognized (“contracted not recognized”) was $82.7 million, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenue in future periods and excludes contracts with an original expected length of one year or less. The Company expects 52% of contracted and not recognized revenue to be recognized over the next twelve months, 44% in years two and three, with the remaining balance recognized thereafter. |
Principles of Consolidation
Principles of Consolidation | 3 Months Ended |
Jun. 30, 2018 | |
Text Block [Abstract] | |
Principles of Consolidation | 2. Principles of Consolidation The condensed 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 | 3 Months Ended |
Jun. 30, 2018 | |
Text Block [Abstract] | |
Use of Estimates | 3. 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 condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates relied upon in preparing these condensed consolidated financial statements include revenue recognition, variable consideration, 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, the average period of benefit associated with costs capitalized to obtain revenue contracts 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 Consideration
Subsequent Events Considerations | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events Considerations | 4. 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. The Company has evaluated all subsequent events. Refer to Note 17. |
Concentration of Credit Risk an
Concentration of Credit Risk and Off-Balance Sheet Risk | 3 Months Ended |
Jun. 30, 2018 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk and Off-Balance Sheet Risk | 5. 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 the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments and accounts receivable. The Company maintains its cash, cash equivalents and investments 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 States, the United Kingdom 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 June 30, 2018 and March 31, 2018, no individual customer represented more than 10% of our accounts receivable. During the three months ended June 30, 2018 and 2017, no individual customer represented more than 10% of our revenue. As of June 30, 2018, our investments consist primarily of investment-grade fixed income corporate debt securities with maturities ranging from less than 1 month to 5 months, non-U.S. government securities with maturities in approximately 3 months and U.S. treasury securities with maturities in approximately 1 month. We diversify our investment portfolio by investing in multiple types of investment-grade securities and attempt to mitigate a risk of loss by using a third-party investment manager. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 3 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | 6. 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 June 30, 2018, as available-for-sale pursuant to Accounting Standard Codification (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 its 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 condensed 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 June 30, 2018, was $19.0 million. As of June 30, 2018, the Company determined that no other-than-temporary impairments were required to be recognized in the condensed consolidated statements of operations. The following is a summary of cash, cash equivalents and investments as of June 30, 2018 and March 31, 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2018: Cash and cash equivalents due in 90 days or less $ 107,530 $ — $ — $ 107,530 Investments: U.S. treasury securities due in one year or less 3,000 1 — 3,001 Non-U.S. government securities due in one year or less 2,999 — — 2,999 Corporate securities due in one year or less 35,984 24 (50 ) 35,958 Total investments 41,983 25 (50 ) 41,958 Total cash, cash equivalents and investments $ 149,513 $ 25 $ (50 ) $ 149,488 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 |
Disclosure of Fair Value of Fin
Disclosure of Fair Value of Financial Instruments | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Disclosure of Fair Value of Financial Instruments | 7. Disclosure of Fair Value of Financial Instruments The Company’s financial instruments include cash, cash equivalents, accounts receivable, investments, accounts payable, accrued expenses and capital lease obligations. The carrying amount of the Company’s capital lease obligation approximates its fair values due to the interest rates the Company believes it could obtain for borrowings 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 June 30, 2018 and March 31, 2018, 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 June 30, 2018 and March 31, 2018, we did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities, and did not elect the fair value option for any financial assets and liabilities transacted in the three months ended June 30, 2018 and 2017. The following table summarizes financial assets measured and recorded at fair value on a recurring basis in the accompanying condensed consolidated balance sheets as of June 30, 2018 and March 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 6,091 $ — $ 6,091 U.S. treasury securities — 3,001 3,001 Non-U.S. government securities — 2,999 2,999 Corporate securities — 35,958 35,958 Total assets $ 6,091 $ 41,958 $ 48,049 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 |
Software Development Costs
Software Development Costs | 3 Months Ended |
Jun. 30, 2018 | |
Research And Development [Abstract] | |
Software Development Costs | 8. 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 three months ended June 30, 2018 and 2017, 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 condensed consolidated statements of operations as research and development expense. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 9. 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 three months ended June 30, 2018 and 2017 as their effect would have been anti-dilutive for the periods presented (in thousands): Three months ended June 30, 2018 2017 Share options outstanding 7,270 7,803 Unvested restricted share units 318 35 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation As of June 30, 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 were 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 Share Purchase Plan (the ESPP) became effective. Share Options The fair value of each share option issued under the 2015 Plan was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Three months ended June 30, 2018 2017 Expected term (in years) 6.1 6.1 Risk-free interest rate 2.7 % 2.1 % Expected volatility 40.9 % 40.1 % Expected dividend yield — % — % Estimated grant date fair value per ordinary share $ 35.67 $ 24.42 The weighted-average per share fair value of options granted to employees during the three months ended June 30, 2018 and 2017 was $15.64 and $10.26, respectively. As of June 30, 2018, the number of options and awards available for future grant under the 2015 Plan was 6,849,866. Share option activity under the 2015 Plan and the Historical Plans for the three months ended June 30, 2018 was as follows: Number of Awards Weighted Average Exercise Price (2) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Outstanding as of March 31, 2018 6,229,860 $ 13.78 7.40 $ 134,859 Options granted 1,668,660 $ 35.67 Options exercised (581,134 ) $ 7.70 Options forfeited and cancelled (46,956 ) $ 24.55 Outstanding as of June 30, 2018 7,270,430 $ 19.22 7.89 $ 160,167 Exercisable as of June 30, 2018 2,226,847 $ 8.88 5.95 $ 72,005 (1) The aggregate intrinsic value for share options outstanding and exercisable as of June 30, 2018 was calculated based on the positive difference, if any, between the closing price of the Company’s ordinary shares on the NASDAQ Global Select Market on June 30, 2018, 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 expired was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or expiration, as appropriate. The total intrinsic value of options exercised was $20.4 million for the three months ended June 30, 2018. Total cash proceeds from option exercises was $4.5 million for the three months ended June 30, 2018. As of June 30, 2018, there was approximately $47.4 million of unrecognized share-based compensation related to unvested share options, which is expected to be recognized over a weighted-average period of 3.17 years. ESPP Initially, a total of 1.1 million shares of the Company's common stock 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 each six month offering period, which starts on the first business day in January and July each year. 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. In the three months ended June 30, 2018, the Company recognized $0.2 million of share-based compensation expense under the ESPP. As of June 30, 2018, there were 1.0 million shares of the Company's common stock available for future issuance under the ESPP. Restricted Share Units (RSUs) The Company grants RSUs to its Non-Employee Directors and its employees. Non-Employee Directors receive an initial RSU grant upon joining the BOD that vests over 3 years and an annual grant each year thereafter that vests fully on the one-year anniversary of the grant date. RSUs granted to Company employees vest in four equal annual installments. RSU activity under the 2015 Plan for the three-months ended June 30, 2018 was as follows: Number of Shares Weighted Average Grant Date Fair Value Intrinsic Value (1) (2) Unvested restricted share units as of March 31, 2018 32,763 $ 23.06 $ 1,161 Restricted share units granted 292,747 $ 35.69 10,448 Restricted share units vested (5,168 ) $ 16.93 195 Restricted share units canceled (2,407 ) $ 41.21 99 Unvested restricted share units as of June 30, 2018 317,935 $ 32.60 $ 13,102 (1 ) The intrinsic value of unvested shares as of June 30, 2018 was calculated based on the closing price of the Company’s ordinary shares multiplied by the number of unvested RSUs. (2) The intrinsic value of RSUs granted, vested and canceled is calculated based on the closing price of the Company’s ordinary shares at the respective transaction dates multiplied by the number of RSUs. As of June 30, 2018, there was approximately $10.1 million of unrecognized share-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 3.72 years. Share-based compensation expense recognized under the 2015 Plan, Historical Plans and ESPP in the accompanying condensed consolidated statements of operations was as follows: Three months ended June 30, 2018 2017 Cost of revenue $ 404 $ 206 Research and development 1,330 682 Sales and marketing 1,831 948 General and administrative 1,616 810 Total share-based compensation expense $ 5,181 $ 2,646 In certain situations, the board of directors has approved modifications to employee share option agreements, including the removal of exercise restrictions for share options for which the service based vesting has been satisfied which resulted in additional share-based compensation expense. The total modification expense included in the table above for the three months ended June 30, 2018 and 2017 was $0.2 million and $0.3 million, respectively. |
Comprehensive Loss
Comprehensive Loss | 3 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Loss | 11. 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 (loss) income, 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 June 30, 2018 and March 31, 2018, accumulated other comprehensive loss is presented separately on the condensed consolidated balance sheets and consists of cumulative foreign currency translation adjustments and unrealized gains and losses on investments. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 12. Goodwill and Intangible Assets The following is a rollforward of our goodwill balance: Goodwill Balance as of March 31, 2018 $ 5,631 Effect of foreign exchange rates (29 ) Balance as of June 30, 2018 $ 5,602 Purchased intangible assets consist of the following: Weighted- Average June 30, 2018 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 8 $ 1,546 $ (251 ) $ 1,295 Customer relationships 5 108 (25 ) 83 Capitalized Software 2 8,625 (1,970 ) 6,655 10,279 (2,246 ) 8,033 In-process research and development (1) N/A 524 — 524 $ 10,803 $ (2,246 ) $ 8,557 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) N/A 557 — 557 $ 11,382 $ (1,563 ) $ 9,819 (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 $0.8 million for the three months ended June 30, 2018. Amortization relating to developed technology and capitalized software was recorded within cost of revenue and amortization of customer relationships is recorded within sales and marketing expenses. Future estimated amortization expense of intangibles as of June 30, 2018, is as follows: Purchased Intangible Assets Capitalized Software Remainder of 2019 $ 128 $ 2,159 2020 170 2,672 2021 170 1,623 2022 170 201 2023 170 — Thereafter 570 — Total $ 1,378 $ 6,655 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Leases Capital leases The Company has entered into various capital lease arrangements for computer equipment with non-cancelable terms through January 2022. As of June 30, 2018, future minimum commitments for capital leases were as follows: Year Ending March 31, Capital Leases Remainder of 2019 $ 996 2020 1,102 2021 1,102 2022 326 Total minimum lease payments $ 3,526 Less: Amount representing interest (230 ) Present value of capital lease obligations 3,296 Less: Current portion (1,154 ) Long-term portion of capital lease obligations $ 2,142 Construction financing lease obligations The Company leases certain facilities under build-to-suit leases whereby the Company is deemed to be the owner of the building during the construction period for accounting purposes. For build-to-suit leases, the Company recorded certain estimated construction costs incurred and reported to it by the landlord for the buildings as an asset and corresponding construction financing lease obligation on the condensed consolidated balance sheets. Since the Company’s unit of account is related only to its portion of the buildings, the Company determined that it does not have land leases 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 buildings 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. Lexington, MA - U.S. Headquarters The construction of the Company’s Lexington, MA – U.S. headquarters 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 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 three months ended June 30, 2018, interest expense on lease financing obligations was $0.5 million. As of June 30, 2018, the future estimated commitments related to the financing obligations were $38.8 million and $10.7 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. As of June 30, 2018, Property and equipment, net, includes $34.0 million related to the UK Building and construction costs for the UK Building. The construction financing lease obligation related to the UK Building was $33.2 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 Leases meet the “sale-leaseback” criteria, the Company will remove the asset and the related liability from its condensed consolidated balance sheet and treat the Leases 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 Leases 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 three months ended June 30, 2018 and 2017, 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 June 30, 2018 and 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. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 14. Segment and Geographic Information 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: Three months ended June 30, 2018 2017 Revenue: United States $ 37,932 $ 29,192 United Kingdom 24,556 17,867 South Africa 11,622 8,781 Other 4,294 2,318 Total revenue $ 78,404 $ 58,158 Property and equipment, net by geographic location consists of the following: As of June 30, As of March 31, 2018 2018 United States (1) $ 61,094 $ 62,064 United Kingdom (2) 48,715 46,664 South Africa 5,687 6,512 Australia 3,644 3,953 Other 4,977 4,629 Total $ 124,117 $ 123,822 (1) Includes construction costs capitalized under financing lease obligations related to our U.S. build-to-suit facilities of $39.6 million and $39.4 million as of June 30, 2018 and March 31, 2018, respectively. (2) Includes construction costs capitalized under financing lease obligations related to our U.K. build-to-suit facility of $34.0 million and $31.2 million as of June 30, 2018 and March 31, 2018, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The provision for income taxes for the three months ended June 30, 2018 and 2017 was $0.9 million and $0.5 million, respectively on the loss before income taxes of $(2.6) million and $(1.4) million, respectively. The provision for income taxes for the three months ended June 30, 2018 is primarily attributable to earnings in the Company’s South African entity. The provision for income taxes for the three months ended June 30, 2017 was primarily attributable to earnings in the Company’s U.S. and South African entities offset by $1.2 million in excess tax benefits resulting from share option exercises by employees. In assessing the Company’s ability to realize its net deferred tax assets, the Company considered various factors including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations to determine whether it is more likely than not that some portion or all of its net deferred tax assets will not be realized. Based upon these factors, the Company has determined that the uncertainty regarding the realization of these assets is sufficient to warrant the need for a full valuation allowance against its net deferred tax assets as of June 30, 2018. As of June 30, 2018 and March 31, 2018, the Company had liabilities for uncertain tax positions of $6.0 million and $6.2 million, respectively, none of which, if recognized, would impact the Company’s effective tax rate. Interest and penalty charges, if any, related to uncertain tax positions would be classified as income tax expense in the accompanying condensed consolidated statements of operations. As of June 30, 2018 and March 31, 2018, accrued interest or penalties related to uncertain tax positions are immaterial. During the third quarter of fiscal 2018, the Tax Cuts and Jobs Act (the Act) was enacted in the United States. 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 did not adjust any of its provisional estimates during the three months ended June 30, 2018. 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. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | 16. Recently Issued and Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies and adopted by the Company as of the specified effective date. Recently Adopted Accounting Pronouncements On April 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers: Topic 606 . The core principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under legacy GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation . See Note 1 for the impact of the adoption on revenue recognition and a On April 1, 2018 the Company adopted ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities On April 1, 2018 the Company adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments On April 1, 2018 the Company adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory On April 1, 2018 the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash On April 1, 2018 the Company adopted ASU 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business On April 1, 2018 the Company adopted ASU 2017-09, C ompensation-Stock Compensation (Topic 718): Scope of Modification Accounting Recently Issued Accounting Pronouncements 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). The Company is currently in the process of evaluating the impact and timing of adoption of the In January 2017, the FASB issued ASU No. 2017-04 , Simplifying the Test for Goodwill Impairment |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On July 23, 2018, the Company entered into a credit agreement (the Credit Agreement) with certain lenders, and JPMorgan Chase Bank, N.A., as administrative agent (the Administrative Agent), which provided the Company with a $100,000,000 senior secured term loan and a $50,000,000 senior secured revolving credit facility (collectively, the Credit Facility). The proceeds of the Credit Facility are available to fund working capital and for other corporate purposes, including to finance permitted acquisitions and investments. Interest under the Credit Facility accrues at a rate between LIBOR plus 1.375% and LIBOR plus 1.875%, based on the Company’s ratio of indebtedness to earnings before interest, taxes, depreciation, amortization and certain other adjustments (Consolidated EBITDA). Based on this ratio, the current interest rate under the Credit Facility is LIBOR plus 1.625%. The term of the Credit Facility is five years, maturing on July 23, 2023. There is no existing debt being replaced by the Credit Facility. The Credit Agreement has financial covenants that require the Company to maintain a Consolidated Secured Leverage Ratio (as defined in the Credit Agreement), commencing on September 30, 2018, of not more than 3.00 to 1.00 for the four consecutive fiscal quarter period ending on the last day of each fiscal quarter (the Reference Period), with a step-up to 3.50 to 1.00 for any four-quarter period in which the Company consummates a permitted acquisition having an aggregate purchase price in excess of $25,000,000. The Company must also maintain a Consolidated Interest Expense Ratio (as defined in the Credit Agreement) of 3.00 to 1.00 commencing on September 30, 2018 and for each Reference Period thereafter. All obligations under the Credit Agreement are unconditionally guaranteed by all of the Company’s material direct and indirect subsidiaries organized under the laws of the United States, the United Kingdom, the Bailiwick of Jersey, and other jurisdictions agreed to by the Company and the Administrative Agent, with certain exceptions. These guarantees are secured by substantially all of the present and future property and assets of the guarantors, with certain exclusions. On July 9, 2018, the Company acquired Ataata, Inc., a privately-owned company based in the United States, for cash consideration of approximately $24 million. Ataata is a cyber security training and awareness platform designed to reduce human error in the workplace and help enable organizations to become more secure by changing the security culture of their employees. On July 31, 2018, the Company acquired Solebit Labs Ltd. a privately-owned company based in Tel-Aviv, Israel for cash consideration of approximately $88 million net of cash acquired. Solebit Labs Ltd. protects companies against cyber-attacks, zero-day threats and malware. |
Principles of Consolidation (Po
Principles of Consolidation (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
Risks And Uncertainties [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These financial statements and notes should be read in conjunction with the audited consolidated financial statements for the year ended March 31, 2018 and related notes, together with management’s discussion and analysis of financial condition and results of operations, contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on May 29, 2018. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended March 31, 2018 contained in the Company’s Annual Report on Form 10-K and include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position as of June 30, 2018, and for the three months ended June 30, 2018 and 2017. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of June 30, 2018, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K, have not changed, except as discussed below. |
Revenue Recognition | Revenue Recognition Adoption of ASC 606 Effective April 1, 2018, the Company adopted the requirements of ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 Revenue Recognition Policy Under ASC 606 the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers accessing the Company’s cloud services and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. In the three months ended June 30, 2018 and 2017, subscription revenue made up the substantial majority of the Company’s revenue and professional services and other revenue made up less than 5% of the Company’s revenue. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. The Company sells its products and services directly through the Company’s sales force and also indirectly through third-party resellers. In accordance with the provisions of ASC 606, the Company has considered certain factors in determining whether the end-user or the third-party reseller is the customer in arrangements involving resellers. The Company concluded that in the majority of transactions with resellers, the reseller is the 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 condensed consolidated statements of operations based upon the amount billed to the reseller. For transactions where we have determined that the end-user is the ultimate customer, revenue is presented in the accompanying condensed consolidated statements of operations based on the transaction price with the end-user. The Company recognizes subscription and support revenue ratably over the term of the contract, typically one year in duration, beginning on the date the customer is provided access to the Company’s service. For performance obligations related to set-up and ingestion, including implementation assistance and data services, respectively, the Company recognizes revenue using output measures of performance that reflect the transfer of promised services to the customer consistent with progress to completion. The Company recognizes revenue on training, consulting, and other professional services contracts using output measures of performance as services are completed. Training, consulting, and other professional services are considered separate performance obligations. 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 primarily bills and collects payments from customers for its services in advance on a monthly and annual basis. In some instances, the Company receives non-refundable upfront payments for activities that do not constitute a promise to transfer a service and therefore are considered administrative tasks, not separate performance obligations. The upfront payments are evaluated to determine whether a material right to a discount upon renewal of the subscription exists. When the Company concludes a material right does not exist, the Company recognizes revenue related to the upfront payment over the initial contract term. When the Company concludes a material right does exist, the Company recognizes revenue related to the upfront payment over the estimated customer benefit period, which has been determined to be six years. All of the Company’s performance obligations, and associated revenue, are generally transferred to customers over time, with the exception of training, consulting and other professional services, which are generally transferred to the customer at a point in time. Revenue is presented net of any taxes collected from customers. Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on the Company’s overall pricing objectives, taking into consideration market conditions and other factors, including the value of the Company’s contracts, the products sold, customer demographics, the Company’s sales channel, and the number and size of users within the Company’s contracts. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription and other services described above and is recognized as the revenue recognition criteria are met. 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 non-current in the accompanying condensed Deferred Cost Policy As part of the Company’s adoption of ASC 606 , the Company capitalizes incremental costs of obtaining revenue contracts, which primarily consist of commissions paid to its sales representatives. The Company amortizes these commissions over six years on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. Six years represents the estimated benefit period of the customer relationship taking into account factors such as peer estimates of technology lives and customer lives as well as the Company's own historical data. No commissions are paid related to contract renewals. The current and noncurrent portions of deferred commissions are included in deferred contract costs, net and deferred contract costs, net of current portion, respectively in its condensed consolidated balance sheets. Impact of Adoption of ASC 606 The adoption of ASC 606 resulted in a decrease to deferred revenue of $6.0 million and an increase of $23.8 million in deferred contract costs as of April 1, 2018. We recorded the deferred tax impact associated with the cumulative-effect adjustment of adopting ASC 606 to accumulated deficit with an equal and offsetting adjustment to our valuation allowance. The decrease to deferred revenue upon adoption was primarily due to a change in the accounting treatment for certain upfront fees that were accounted for as a single unit of account under Legacy GAAP and are accounted for as separate performance obligations under ASC 606. The increase in deferred contract costs was the result of the capitalization of certain commissions that were determined to be incremental costs of obtaining a contract. Under Legacy GAAP, the Company expensed all commission costs as incurred. As a result of the adoption, the Company recorded an increase to accumulated deficit of $29.9 million as of April 1, 2018, which was the net cumulative impact associated with the capitalization of sales commissions and the adjustment to deferred revenue. The cumulative effect of the changes made to our April 1, 2018 balance sheet for the adoption of ASC 606 were as follows: Balance as of March 31, 2018 Adjustments Due to Adoption of ASC 606 Balance as of April 1, 2018 Assets Deferred contract costs, net $ — $ 5,494 $ 5,494 Deferred contract costs, net of current portion — 18,339 18,339 Liabilities Deferred revenue 123,057 (517 ) 122,540 Deferred revenue, net of current portion 18,045 (5,526 ) 12,519 Shareholders' equity Accumulated deficit (106,507 ) 29,876 (76,631 ) In accordance with the requirements of ASC 606, the disclosure for the quantitative effect and the significant changes between the reported results under ASC 606 and those that would have been reported under Legacy GAAP on our unaudited condensed Three months ended June 30, 2018 As Reported - ASC 606 Amounts without Adoption of ASC 606 Effect of Change Increase/(Decrease) Income Statement Revenues $ 78,404 $ 78,108 $ 296 Operating expenses Sales and marketing (34,203 ) (36,467 ) (2,264 ) Net loss $ (3,471 ) $ (6,031 ) $ 2,560 As of June 30, 2018 As Reported - ASC 606 Balances without Adoption of ASC 606 Effect of Change Increase/(Decrease) Balance Sheet Assets Deferred contract costs, net $ 5,530 $ — $ 5,530 Deferred contract costs, net of current portion 19,817 — 19,817 Liabilities Deferred revenue 120,612 120,553 59 Deferred revenue, net of current portion 12,002 18,217 (6,215 ) Shareholders' equity Accumulated deficit (80,102 ) (107,418 ) 27,316 Revenue recognized during the three months ended June 30, 2018 from amounts included in deferred revenue at the beginning of the period was approximately $50.8 million. Revenue recognized during the three months ended June 30, 2018 from performance obligations satisfied or partially satisfied in previous periods was immaterial. The adoption of ASC 606 had no impact to net operating cash flows. Contracted revenue as of June 30, 2018 that has not yet been recognized (“contracted not recognized”) was $82.7 million, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenue in future periods and excludes contracts with an original expected length of one year or less. The Company expects 52% of contracted and not recognized revenue to be recognized over the next twelve months, 44% in years two and three, with the remaining balance recognized thereafter. |
Principles of Consolidation | Principles of Consolidation The condensed 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 condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates relied upon in preparing these condensed consolidated financial statements include revenue recognition, variable consideration, 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, the average period of benefit associated with costs capitalized to obtain revenue contracts 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. The Company has evaluated all subsequent events. Refer to Note 17. |
Concentration Of Credit Risk And Off Balance Sheet Risk | 5. 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 the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments and accounts receivable. The Company maintains its cash, cash equivalents and investments 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 States, the United Kingdom 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 June 30, 2018 and March 31, 2018, no individual customer represented more than 10% of our accounts receivable. During the three months ended June 30, 2018 and 2017, no individual customer represented more than 10% of our revenue. As of June 30, 2018, our investments consist primarily of investment-grade fixed income corporate debt securities with maturities ranging from less than 1 month to 5 months, non-U.S. government securities with maturities in approximately 3 months and U.S. treasury securities with maturities in approximately 1 month. We diversify our investment portfolio by investing in multiple types of investment-grade securities and attempt to mitigate a risk of loss by using a third-party investment manager. |
Software Development Costs | 8. 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 three months ended June 30, 2018 and 2017, 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 condensed consolidated statements of operations as research and development expense. |
Recently Issued Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies and adopted by the Company as of the specified effective date. Recently Adopted Accounting Pronouncements On April 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers: Topic 606 . The core principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under legacy GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation . See Note 1 for the impact of the adoption on revenue recognition and a On April 1, 2018 the Company adopted ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities On April 1, 2018 the Company adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments On April 1, 2018 the Company adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory On April 1, 2018 the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash On April 1, 2018 the Company adopted ASU 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business On April 1, 2018 the Company adopted ASU 2017-09, C ompensation-Stock Compensation (Topic 718): Scope of Modification Accounting Recently Issued Accounting Pronouncements 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). The Company is currently in the process of evaluating the impact and timing of adoption of the In January 2017, the FASB issued ASU No. 2017-04 , Simplifying the Test for Goodwill Impairment |
Cash and Cash Equivalents | The Company considers all highly liquid instruments purchased with an original maturity date of 90 days or less from the date of purchase to be cash equivalents. 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. |
Organization and Basis of Pre25
Organization and Basis of Presentation (Tables) - ASU 2014-09 [Member] | 3 Months Ended |
Jun. 30, 2018 | |
Schedule of Cumulative Effect of Changes to Balance Sheet | The cumulative effect of the changes made to our April 1, 2018 balance sheet for the adoption of ASC 606 were as follows: Balance as of March 31, 2018 Adjustments Due to Adoption of ASC 606 Balance as of April 1, 2018 Assets Deferred contract costs, net $ — $ 5,494 $ 5,494 Deferred contract costs, net of current portion — 18,339 18,339 Liabilities Deferred revenue 123,057 (517 ) 122,540 Deferred revenue, net of current portion 18,045 (5,526 ) 12,519 Shareholders' equity Accumulated deficit (106,507 ) 29,876 (76,631 ) |
Schedule of Quantitative Effect and Significant Changes Between ASC 606 and Legacy GAAP on Unaudited Condensed Consolidated Income Statement and Balance Sheet | In accordance with the requirements of ASC 606, the disclosure for the quantitative effect and the significant changes between the reported results under ASC 606 and those that would have been reported under Legacy GAAP on our unaudited condensed Three months ended June 30, 2018 As Reported - ASC 606 Amounts without Adoption of ASC 606 Effect of Change Increase/(Decrease) Income Statement Revenues $ 78,404 $ 78,108 $ 296 Operating expenses Sales and marketing (34,203 ) (36,467 ) (2,264 ) Net loss $ (3,471 ) $ (6,031 ) $ 2,560 As of June 30, 2018 As Reported - ASC 606 Balances without Adoption of ASC 606 Effect of Change Increase/(Decrease) Balance Sheet Assets Deferred contract costs, net $ 5,530 $ — $ 5,530 Deferred contract costs, net of current portion 19,817 — 19,817 Liabilities Deferred revenue 120,612 120,553 59 Deferred revenue, net of current portion 12,002 18,217 (6,215 ) Shareholders' equity Accumulated deficit (80,102 ) (107,418 ) 27,316 |
Cash, Cash Equivalents and In26
Cash, Cash Equivalents and Investments (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Schedule Of Cash, Cash Equivalents And Investments | The following is a summary of cash, cash equivalents and investments as of June 30, 2018 and March 31, 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2018: Cash and cash equivalents due in 90 days or less $ 107,530 $ — $ — $ 107,530 Investments: U.S. treasury securities due in one year or less 3,000 1 — 3,001 Non-U.S. government securities due in one year or less 2,999 — — 2,999 Corporate securities due in one year or less 35,984 24 (50 ) 35,958 Total investments 41,983 25 (50 ) 41,958 Total cash, cash equivalents and investments $ 149,513 $ 25 $ (50 ) $ 149,488 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 |
Disclosure of Fair Value of F27
Disclosure of Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 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 condensed consolidated balance sheets as of June 30, 2018 and March 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 6,091 $ — $ 6,091 U.S. treasury securities — 3,001 3,001 Non-U.S. government securities — 2,999 2,999 Corporate securities — 35,958 35,958 Total assets $ 6,091 $ 41,958 $ 48,049 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 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
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 three months ended June 30, 2018 and 2017 as their effect would have been anti-dilutive for the periods presented (in thousands): Three months ended June 30, 2018 2017 Share options outstanding 7,270 7,803 Unvested restricted share units 318 35 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Weighted Average Assumption Utilized to Determine Fair Value of Option | The fair value of each share option issued under the 2015 Plan was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Three months ended June 30, 2018 2017 Expected term (in years) 6.1 6.1 Risk-free interest rate 2.7 % 2.1 % Expected volatility 40.9 % 40.1 % Expected dividend yield — % — % Estimated grant date fair value per ordinary share $ 35.67 $ 24.42 |
Schedule of Share-Based Compensation, Stock Options, Activity | Share option activity under the 2015 Plan and the Historical Plans for the three months ended June 30, 2018 was as follows: Number of Awards Weighted Average Exercise Price (2) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Outstanding as of March 31, 2018 6,229,860 $ 13.78 7.40 $ 134,859 Options granted 1,668,660 $ 35.67 Options exercised (581,134 ) $ 7.70 Options forfeited and cancelled (46,956 ) $ 24.55 Outstanding as of June 30, 2018 7,270,430 $ 19.22 7.89 $ 160,167 Exercisable as of June 30, 2018 2,226,847 $ 8.88 5.95 $ 72,005 (1) The aggregate intrinsic value for share options outstanding and exercisable as of June 30, 2018 was calculated based on the positive difference, if any, between the closing price of the Company’s ordinary shares on the NASDAQ Global Select Market on June 30, 2018, 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 expired was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or expiration, as appropriate. |
Schedule of Share-Based Compensation, Restricted Share Units, Activity | RSU activity under the 2015 Plan for the three-months ended June 30, 2018 was as follows: Number of Shares Weighted Average Grant Date Fair Value Intrinsic Value (1) (2) Unvested restricted share units as of March 31, 2018 32,763 $ 23.06 $ 1,161 Restricted share units granted 292,747 $ 35.69 10,448 Restricted share units vested (5,168 ) $ 16.93 195 Restricted share units canceled (2,407 ) $ 41.21 99 Unvested restricted share units as of June 30, 2018 317,935 $ 32.60 $ 13,102 (1 ) The intrinsic value of unvested shares as of June 30, 2018 was calculated based on the closing price of the Company’s ordinary shares multiplied by the number of unvested RSUs. (2) The intrinsic value of RSUs granted, vested and canceled is calculated based on the closing price of the Company’s ordinary shares at the respective transaction dates multiplied by the number of RSUs. |
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 condensed consolidated statements of operations was as follows: Three months ended June 30, 2018 2017 Cost of revenue $ 404 $ 206 Research and development 1,330 682 Sales and marketing 1,831 948 General and administrative 1,616 810 Total share-based compensation expense $ 5,181 $ 2,646 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Balance | The following is a rollforward of our goodwill balance: Goodwill Balance as of March 31, 2018 $ 5,631 Effect of foreign exchange rates (29 ) Balance as of June 30, 2018 $ 5,602 |
Schedule of Purchased Intangible Assets | Purchased intangible assets consist of the following: Weighted- Average June 30, 2018 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 8 $ 1,546 $ (251 ) $ 1,295 Customer relationships 5 108 (25 ) 83 Capitalized Software 2 8,625 (1,970 ) 6,655 10,279 (2,246 ) 8,033 In-process research and development (1) N/A 524 — 524 $ 10,803 $ (2,246 ) $ 8,557 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) N/A 557 — 557 $ 11,382 $ (1,563 ) $ 9,819 (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 intangibles as of June 30, 2018, is as follows: Purchased Intangible Assets Capitalized Software Remainder of 2019 $ 128 $ 2,159 2020 170 2,672 2021 170 1,623 2022 170 201 2023 170 — Thereafter 570 — Total $ 1,378 $ 6,655 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Commitments Under Capital Leases | As of June 30, 2018, future minimum commitments for capital leases were as follows: Year Ending March 31, Capital Leases Remainder of 2019 $ 996 2020 1,102 2021 1,102 2022 326 Total minimum lease payments $ 3,526 Less: Amount representing interest (230 ) Present value of capital lease obligations 3,296 Less: Current portion (1,154 ) Long-term portion of capital lease obligations $ 2,142 |
Segment and Geographic Inform32
Segment and Geographic Information (Tables) | 3 Months Ended |
Jun. 30, 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: Three months ended June 30, 2018 2017 Revenue: United States $ 37,932 $ 29,192 United Kingdom 24,556 17,867 South Africa 11,622 8,781 Other 4,294 2,318 Total revenue $ 78,404 $ 58,158 |
Summary of Property and Equipment, Net by Geographic Location | Property and equipment, net by geographic location consists of the following: As of June 30, As of March 31, 2018 2018 United States (1) $ 61,094 $ 62,064 United Kingdom (2) 48,715 46,664 South Africa 5,687 6,512 Australia 3,644 3,953 Other 4,977 4,629 Total $ 124,117 $ 123,822 (1) Includes construction costs capitalized under financing lease obligations related to our U.S. build-to-suit facilities of $39.6 million and $39.4 million as of June 30, 2018 and March 31, 2018, respectively. (2) Includes construction costs capitalized under financing lease obligations related to our U.K. build-to-suit facility of $34.0 million and $31.2 million as of June 30, 2018 and March 31, 2018, respectively. |
Organization and Basis of Pre33
Organization and Basis of Presentation - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Maximum percentage of revenue contribution from professional services and other revenue | 5.00% | 5.00% | ||
Upfront ingestion fee to be recognized over estimated customer benefit period | 6 years | |||
Increase to accumulated deficit | $ (80,102,000) | $ (106,507,000) | ||
Revenue recognized included in deferred revenue | 50,800,000 | |||
Contracted revenue not yet recognized | $ 82,700,000 | |||
ASU 2014-09 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Amortization period of deferred contract costs | 6 years | |||
Payment of commissions related to contract renewals | $ 0 | |||
Increase to accumulated deficit | $ (76,631,000) | |||
ASU 2014-09 [Member] | Adjustments Due to Adoption of Topic 606 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
(Decrease) to deferred revenue | (6,000,000) | |||
Increase in deferred contract costs | 23,800,000 | |||
Increase to accumulated deficit | $ 27,316,000 | $ 29,876,000 |
Organization and Basis of Pre34
Organization and Basis of Presentation - Schedule of Cumulative Effect of Changes to Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Assets | |||
Deferred contract costs, net | $ 5,530 | ||
Deferred contract costs, net of current portion | 19,817 | ||
Liabilities | |||
Deferred revenue | 120,612 | $ 123,057 | |
Deferred revenue, net of current portion | 12,002 | 18,045 | |
Shareholders' equity | |||
Accumulated deficit | (80,102) | $ (106,507) | |
ASU 2014-09 [Member] | |||
Assets | |||
Deferred contract costs, net | $ 5,494 | ||
Deferred contract costs, net of current portion | 18,339 | ||
Liabilities | |||
Deferred revenue | 122,540 | ||
Deferred revenue, net of current portion | 12,519 | ||
Shareholders' equity | |||
Accumulated deficit | (76,631) | ||
ASU 2014-09 [Member] | Adjustments Due to Adoption of Topic 606 | |||
Assets | |||
Deferred contract costs, net | 5,530 | 5,494 | |
Deferred contract costs, net of current portion | 19,817 | 18,339 | |
Liabilities | |||
Deferred revenue | 59 | (517) | |
Deferred revenue, net of current portion | (6,215) | (5,526) | |
Shareholders' equity | |||
Accumulated deficit | $ 27,316 | $ 29,876 |
Organization and Basis of Pre35
Organization and Basis of Presentation - Schedule of Quantitative Effect and Significant Changes Between ASC 606 and Legacy GAAP on Unaudited Condensed Consolidated Income Statement and Balance Sheet (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 78,404 | $ 58,158 | ||
Operating expenses | ||||
Sales and marketing | (34,203) | (27,559) | ||
Net loss | (3,471) | $ (1,900) | ||
Assets | ||||
Deferred contract costs, net | 5,530 | |||
Deferred contract costs, net of current portion | 19,817 | |||
Liabilities | ||||
Deferred revenue | 120,612 | $ 123,057 | ||
Deferred revenue, net of current portion | 12,002 | 18,045 | ||
Shareholders' equity | ||||
Accumulated deficit | (80,102) | $ (106,507) | ||
ASU 2014-09 [Member] | ||||
Assets | ||||
Deferred contract costs, net | $ 5,494 | |||
Deferred contract costs, net of current portion | 18,339 | |||
Liabilities | ||||
Deferred revenue | 122,540 | |||
Deferred revenue, net of current portion | 12,519 | |||
Shareholders' equity | ||||
Accumulated deficit | (76,631) | |||
ASU 2014-09 [Member] | Amounts without Adoption of Topic 606 [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | 78,108 | |||
Operating expenses | ||||
Sales and marketing | (36,467) | |||
Net loss | (6,031) | |||
Liabilities | ||||
Deferred revenue | 120,553 | |||
Deferred revenue, net of current portion | 18,217 | |||
Shareholders' equity | ||||
Accumulated deficit | (107,418) | |||
ASU 2014-09 [Member] | Effect of Change Higher/(Lower) [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | 296 | |||
Operating expenses | ||||
Sales and marketing | (2,264) | |||
Net loss | 2,560 | |||
Assets | ||||
Deferred contract costs, net | 5,530 | 5,494 | ||
Deferred contract costs, net of current portion | 19,817 | 18,339 | ||
Liabilities | ||||
Deferred revenue | 59 | (517) | ||
Deferred revenue, net of current portion | (6,215) | (5,526) | ||
Shareholders' equity | ||||
Accumulated deficit | $ 27,316 | $ 29,876 |
Organization and Basis of Pre36
Organization and Basis of Presentation - Additional Information (Detail 1) | Jun. 30, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-07-01 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Revenue, remaining performance obligation, percentage | 52.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Revenue, remaining performance obligation, percentage | 44.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years |
Concentration of Credit Risk 37
Concentration of Credit Risk and Off-Balance Sheet Risk - Additional Information (Detail) - Customer | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Concentration Risk [Line Items] | |||
Number of customers representing more than 10% of accounts receivable | 0 | 0 | |
Number of customers representing more than 10% of revenue | 0 | 0 | |
Non-U.S. Government Securities [Member] | |||
Concentration Risk [Line Items] | |||
Investment maturity period | 3 months | ||
U.S. Treasury Securities [Member] | |||
Concentration Risk [Line Items] | |||
Investment maturity period | 1 month | ||
Minimum [Member] | Corporate Securities [Member] | |||
Concentration Risk [Line Items] | |||
Investment maturity period | 1 month | ||
Maximum [Member] | Corporate Securities [Member] | |||
Concentration Risk [Line Items] | |||
Investment maturity period | 5 months |
Cash, Cash Equivalents and In38
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash And Cash Equivalents [Abstract] | ||
Realized gains or losses on investments | $ 0 | $ 0 |
Aggregate fair value of investments | $ 19,000,000 |
Cash, Cash Equivalents and In39
Cash, Cash Equivalents and Investments - Schedule of Cash, Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents due in 90 days or less, Cost | $ 107,530 | $ 78,339 |
Investments, Cost | 41,983 | 58,960 |
Total cash, cash equivalents and investments, Cost | 149,513 | 137,299 |
Investments, Gross unrealized gains | 25 | 9 |
Investments, Gross unrealized losses | (50) | (98) |
Investments, Estimated fair value | 41,958 | 58,871 |
Cash and cash equivalents due in 90 days or less, Estimated fair value | 107,530 | 78,339 |
Total cash, cash equivalents and investments, Estimated fair value | 149,488 | 137,210 |
Total cash, cash equivalents and investments, Estimated fair value, Gross unrealized gains | 25 | 9 |
Total cash, cash equivalents and investments, Estimated fair value, Gross unrealized losses | (50) | (98) |
U.S. Treasury Securities Due in One Year or Less [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Investments, Cost | 3,000 | 2,995 |
Investments, Gross unrealized gains | 1 | |
Investments, Gross unrealized losses | (5) | |
Investments, Estimated fair value | 3,001 | 2,990 |
Non-U.S. Government Securities Due in One Year or Less [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Investments, Cost | 2,999 | 5,996 |
Investments, Gross unrealized gains | 1 | |
Investments, Gross unrealized losses | (1) | |
Investments, Estimated fair value | 2,999 | 5,996 |
Corporate Securities Due in One Year or Less [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Investments, Cost | 35,984 | 49,969 |
Investments, Gross unrealized gains | 24 | 8 |
Investments, Gross unrealized losses | (50) | (92) |
Investments, Estimated fair value | $ 35,958 | $ 49,885 |
Disclosure of Fair Value of F40
Disclosure of Fair Value of Financial Instruments - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) | Jun. 30, 2018 | Mar. 31, 2018 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a recurring basis | $ 48,049,000 | $ 69,014,000 |
Fair Value, Inputs, Level 3 [Member] | ||
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 |
Disclosure of Fair Value of F41
Disclosure of Fair Value of Financial Instruments - Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Assets: | ||
Total assets | $ 48,049 | $ 69,014 |
Money Market Funds [Member] | ||
Assets: | ||
Total assets | 6,091 | 10,143 |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Total assets | 3,001 | 2,990 |
Non-U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 2,999 | 5,996 |
Corporate Securities [Member] | ||
Assets: | ||
Total assets | 35,958 | 49,885 |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) [Member] | ||
Assets: | ||
Total assets | 6,091 | 10,143 |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Total assets | 6,091 | 10,143 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | ||
Assets: | ||
Total assets | 41,958 | 58,871 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Total assets | 3,001 | 2,990 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | Non-U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 2,999 | 5,996 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | Corporate Securities [Member] | ||
Assets: | ||
Total assets | $ 35,958 | $ 49,885 |
Software Development Costs - Ad
Software Development Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Research And Development [Abstract] | ||
Capitalized costs | $ 0 | $ 0 |
Net Loss Per Share - Dilutive O
Net Loss Per Share - Dilutive Ordinary Shares Excluded from Calculation of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
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 | 7,270 | 7,803 |
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 | 318 | 35 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018USD ($)CompensationPlanInstallment$ / sharesshares | Jun. 30, 2017USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of share-based compensation plans | CompensationPlan | 4 | |
Weighted average per share fair value of options granted to employees | $ / shares | $ 15.64 | $ 10.26 |
Total intrinsic value of options exercised | $ 20,400 | |
Proceeds from exercises of share-based awards | 4,500 | |
Unrecognized share-based compensation expense | $ 47,400 | |
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 3 years 2 months 1 day | |
Share-based compensation expense recognized | $ 5,181 | $ 2,646 |
Employee share option agreements, modification expense | 200 | $ 300 |
Unvested Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense | $ 10,100 | |
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 3 years 8 months 19 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 | |
Unvested Restricted Share Units [Member] | Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of vesting installment for equity granted | Installment | 4 | |
2015 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options available for future grant | shares | 6,849,866 | |
2015 Employee Share Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options available for future grant | shares | 1,000,000 | |
Ordinary shares reserved and authorized for issuance | shares | 1,100,000 | |
Authorized payroll deductions percentage | 10.00% | |
Share-based compensation arrangement by share-based payment award, term | 6 months | |
Percentage of fair market value of shares to be considered as share price | 85.00% | |
Share-based compensation expense recognized | $ 200 | |
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 - Summ
Share-Based Compensation - Summary of Weighted-Average Assumption Utilized to Determine Fair Value of Option (Detail) - $ / shares | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
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 |
Risk-free interest rate | 2.70% | 2.10% |
Expected volatility | 40.90% | 40.10% |
Estimated grant date fair value per ordinary share | $ 35.67 | $ 24.42 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation, Stock Options, Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Awards, Beginning balance | 6,229,860 | |
Number of Awards, Options granted | 1,668,660 | |
Number of Awards, Options exercised | (581,134) | |
Number of Awards, Options forfeited and cancelled | (46,956) | |
Number of Awards, Ending balance | 7,270,430 | 6,229,860 |
Number of Awards, Exercisable | 2,226,847 | |
Weighted Average Exercise Price, Beginning balance | $ 13.78 | |
Weighted Average Exercise Price, Options granted | 35.67 | |
Weighted Average Exercise Price, Options exercised | 7.70 | |
Weighted Average Exercise Price, Options forfeited and cancelled | 24.55 | |
Weighted Average Exercise Price, Ending balance | 19.22 | $ 13.78 |
Weighted Average Exercise Price Exercisable | $ 8.88 | |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 10 months 20 days | 7 years 4 months 24 days |
Weighted Average Remaining Contractual Term, Exercisable | 5 years 11 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ 160,167 | $ 134,859 |
Aggregate Intrinsic Value, Exercisable | $ 72,005 |
Share-Based Compensation - Sc47
Share-Based Compensation - Schedule of Share-Based Compensation, Restricted Share Units, Activity (Detail) - Restricted Share Units (RSUs) [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Jun. 30, 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, Beginning balance | shares | 32,763 |
Number of Shares, Restricted share units granted | shares | 292,747 |
Number of Shares, Restricted share units vested | shares | (5,168) |
Number of Shares, Restricted share units canceled | shares | (2,407) |
Number of Shares, Unvested restricted share units, Ending balance | shares | 317,935 |
Weighted Average Grant Date Fair Value, Unvested restricted share units, Beginning balance | $ / shares | $ 23.06 |
Weighted Average Grant Date Fair Value, Restricted share units granted | $ / shares | 35.69 |
Weighted Average Grant Date Fair Value, Restricted share units vested | $ / shares | 16.93 |
Weighted Average Grant Date Fair Value, Restricted share units canceled | $ / shares | 41.21 |
Weighted Average Grant Date Fair Value, Unvested restricted share units, Ending balance | $ / shares | $ 32.60 |
Intrinsic Value, Unvested restricted share units | $ | $ 1,161 |
Intrinsic Value, Restricted share units granted | $ | 10,448 |
Intrinsic Value, Restricted share units vested | $ | 195 |
Intrinsic Value, Restricted share units canceled | $ | 99 |
Intrinsic Value, Unvested restricted share units | $ | $ 13,102 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense Recognized in Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | $ 5,181 | $ 2,646 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | 404 | 206 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | 1,330 | 682 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | 1,831 | 948 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | $ 1,616 | $ 810 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets - Schedule of Goodwill Balance (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill Roll Forward | |
Beginning balance | $ 5,631 |
Effect of foreign exchange rates | (29) |
Ending balance | $ 5,602 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Mar. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross Carrying Value | $ 10,803 | $ 11,382 |
Intangible assets, net | 8,557 | 9,819 |
Finite-Lived Intangible Assets, Gross Carrying Value | 10,279 | 10,825 |
Accumulated Amortization | (2,246) | (1,563) |
Finite-Lived Intangible Assets, Net Carrying Value | 8,033 | 9,262 |
In-Process Research and Development [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets, Net Carrying Value | $ 524 | $ 557 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 8 years | 9 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 1,546 | $ 1,546 |
Accumulated Amortization | (251) | (213) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 1,295 | $ 1,333 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 5 years | 6 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 108 | $ 108 |
Accumulated Amortization | (25) | (21) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 83 | $ 87 |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 2 years | 3 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 8,625 | $ 9,171 |
Accumulated Amortization | (1,970) | (1,329) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 6,655 | $ 7,842 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization expense | $ 0.8 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Expense of Acquired Intangibles (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net Carrying Value | $ 8,033 | $ 9,262 |
Purchased Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remainder of 2019 | 128 | |
2,020 | 170 | |
2,021 | 170 | |
2,022 | 170 | |
2,023 | 170 | |
Thereafter | 570 | |
Finite-Lived Intangible Assets, Net Carrying Value | 1,378 | |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remainder of 2019 | 2,159 | |
2,020 | 2,672 | |
2,021 | 1,623 | |
2,022 | 201 | |
Finite-Lived Intangible Assets, Net Carrying Value | $ 6,655 | $ 7,842 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Commitments Under Capital Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Contractual Obligation Fiscal Year Maturity Schedule [Abstract] | ||
Capital Leases, Remainder of 2019 | $ 996 | |
Capital Leases, 2020 | 1,102 | |
Capital Leases, 2021 | 1,102 | |
Capital Leases, 2022 | 326 | |
Total minimum lease payments | 3,526 | |
Less: Amount representing interest | (230) | |
Present value of capital lease obligations | 3,296 | |
Less: Current portion | (1,154) | $ (1,125) |
Long-term capital lease obligations | $ 2,142 | $ 2,390 |
Commitments and Contingencies54
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018USD ($)ft²Gbp_Per_Square_Foot | Mar. 31, 2018USD ($) | |
Commitments And Contingencies [Line Items] | ||
Letters of credit outstanding relating to operating leases | $ 1,300 | |
Interest expense on lease financial obligation | 500 | |
Financial obligation of future estimate commitments, Principal | 38,800 | |
Financial obligation of future estimate commitments, interest | 10,700 | |
Construction financing lease obligation | $ 69,613 | $ 67,205 |
Agreement For Lease [Member] | United Kingdom [Member] | ||
Commitments And Contingencies [Line Items] | ||
Area of office space leased | ft² | 113,000 | |
Price per square foot per year | Gbp_Per_Square_Foot | 56.50 | |
Lease term | 10 years | |
Lease commenced period | February 2,019 | |
Agreement For Lease [Member] | United Kingdom [Member] | Building [Member] | ||
Commitments And Contingencies [Line Items] | ||
Construction financing lease obligation | $ 33,200 | |
Agreement For Lease [Member] | United Kingdom [Member] | Building [Member] | Property and equipment, net [Member] | ||
Commitments And Contingencies [Line Items] | ||
Construction costs | $ 34,000 |
Segment and Geographic Inform55
Segment and Geographic Information - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 78,404 | $ 58,158 |
United States [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 37,932 | 29,192 |
United Kingdom [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 24,556 | 17,867 |
South Africa [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 11,622 | 8,781 |
Other [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 4,294 | $ 2,318 |
Segment and Geographic Inform56
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 124,117 | $ 123,822 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 61,094 | 62,064 |
United Kingdom [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 48,715 | 46,664 |
South Africa [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 5,687 | 6,512 |
Australia [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 3,644 | 3,953 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 4,977 | $ 4,629 |
Segment and Geographic Inform57
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Construction costs capitalized related to build-to-suit facilities | $ 39.6 | $ 39.4 |
United Kingdom [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Construction costs capitalized related to build-to-suit facilities | $ 34 | $ 31.2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Income Taxes [Line Items] | |||
Provision for income taxes | $ 858,000 | $ 457,000 | |
Loss before income taxes | (2,613,000) | (1,443,000) | |
Liabilities for uncertain tax positions | 6,000,000 | $ 6,200,000 | |
Liabilities for uncertain tax positions, if recognized, that would impact effective tax rate | $ 0 | $ 0 | |
US and South Africa [Member] | |||
Income Taxes [Line Items] | |||
Excess tax benefits related to exercise of share options | $ 1,200,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Jul. 31, 2018 | Jul. 23, 2018 | Jul. 09, 2018 |
Subsequent Event [Member] | Ataata [Member] | United States [Member] | ||||
Subsequent Event [Line Items] | ||||
Business acquisition, effective date of acquisition | Jul. 9, 2018 | |||
Cash consideration paid for acqusition | $ 24,000,000 | |||
Subsequent Event [Member] | Solebit Labs Ltd. [Member] | Tel-Aviv, Israel [Member] | ||||
Subsequent Event [Line Items] | ||||
Business acquisition, effective date of acquisition | Jul. 31, 2018 | |||
Business acquisition, net of cash acquired | $ 88,000,000 | |||
Credit Agreement with Certain Lenders [Member] | Senior Secured Term Loan and Senior Secured Revolving Credit Facility [Member] | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility financial covenants ratio commencement date | Sep. 30, 2018 | |||
Consolidated interest expense ratio | 300.00% | |||
Credit facility financial covenants | The Credit Agreement has financial covenants that require the Company to maintain a Consolidated Secured Leverage Ratio (as defined in the Credit Agreement), commencing on September 30, 2018, of not more than 3.00 to 1.00 for the four consecutive fiscal quarter period ending on the last day of each fiscal quarter (the Reference Period), with a step-up to 3.50 to 1.00 for any four-quarter period in which the Company consummates a permitted acquisition having an aggregate purchase price in excess of $25,000,000. The Company must also maintain a Consolidated Interest Expense Ratio (as defined in the Credit Agreement) of 3.00 to 1.00 commencing on September 30, 2018 and for each Reference Period thereafter. | |||
Credit Agreement with Certain Lenders [Member] | Senior Secured Term Loan and Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Secured leverage ratio | 300.00% | |||
Aggregate purchase price of acquisition | $ 25,000,000 | |||
Credit Agreement with Certain Lenders [Member] | Senior Secured Term Loan and Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Secured leverage ratio | 350.00% | |||
Credit Agreement with Certain Lenders [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility term | 5 years | |||
Credit facility maturity date | Jul. 23, 2023 | |||
Credit Agreement with Certain Lenders [Member] | Subsequent Event [Member] | LIBOR Plus [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility current interest rate | 1.625% | |||
Credit Agreement with Certain Lenders [Member] | Subsequent Event [Member] | LIBOR Plus [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility interest rate | 1.375% | |||
Credit Agreement with Certain Lenders [Member] | Subsequent Event [Member] | LIBOR Plus [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility interest rate | 1.875% | |||
Credit Agreement with Certain Lenders [Member] | Subsequent Event [Member] | Senior Secured Term Loan [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility amount | $ 100,000,000 | |||
Credit Agreement with Certain Lenders [Member] | Subsequent Event [Member] | Senior Secured Revolving Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Credit facility amount | $ 50,000,000 |