Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MIME | |
Title of 12(b) Security | Ordinary Shares, nominal value $0.012 per share | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | MIMECAST LIMITED | |
Entity Central Index Key | 0001644675 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 62,515,514 | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-37637 | |
Entity Incorporation, State or Country Code | Y9 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 1 Finsbury Avenue | |
Entity Address, City or Town | London | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | EC2M 2PF | |
City Area Code | 781 | |
Local Phone Number | 996-5340 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 189,863 | $ 137,576 |
Short-term investments | 35,941 | |
Accounts receivable, net | 80,168 | 80,953 |
Deferred contract costs, net | 10,705 | 8,140 |
Prepaid expenses and other current assets | 14,119 | 25,871 |
Total current assets | 294,855 | 288,481 |
Property and equipment, net | 86,053 | 94,202 |
Operating lease right-of-use assets | 125,076 | |
Intangible assets, net | 34,799 | 30,623 |
Goodwill | 130,677 | 107,575 |
Deferred contract costs, net of current portion | 35,533 | 28,250 |
Other assets | 7,638 | 5,156 |
Total assets | 714,631 | 554,287 |
Current liabilities | ||
Accounts payable | 12,750 | 9,457 |
Accrued expenses and other current liabilities | 40,253 | 44,309 |
Deferred revenue | 179,535 | 163,102 |
Current portion of finance lease obligations | 961 | 844 |
Current portion of operating lease liabilities | 29,873 | |
Current portion of long-term debt | 5,947 | 4,059 |
Total current liabilities | 269,319 | 221,771 |
Deferred revenue, net of current portion | 12,686 | 12,472 |
Long-term finance lease obligations | 592 | 1,381 |
Operating lease liabilities | 115,559 | |
Long-term debt | 88,056 | 92,797 |
Construction financing lease obligations | 36,650 | |
Other non-current liabilities | 3,771 | 15,581 |
Total liabilities | 489,983 | 380,652 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity | ||
Ordinary shares, $0.012 par value, 300,000,000 shares authorized; 62,485,632 and 61,158,051 shares issued and outstanding as of December 31, 2019 and March 31, 2019, respectively | 750 | 734 |
Additional paid-in capital | 311,191 | 263,388 |
Accumulated deficit | (86,185) | (83,632) |
Accumulated other comprehensive loss | (1,108) | (6,855) |
Total shareholders' equity | 224,648 | 173,635 |
Total liabilities and shareholders' equity | $ 714,631 | $ 554,287 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2019 | Mar. 31, 2019 |
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 | 62,485,632 | 61,158,051 |
Ordinary shares, outstanding | 62,485,632 | 61,158,051 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 110,158 | $ 87,611 | $ 312,746 | $ 248,184 |
Cost of revenue | 28,455 | 23,258 | 80,056 | 66,172 |
Gross profit | 81,703 | 64,353 | 232,690 | 182,012 |
Operating expenses | ||||
Research and development | 20,801 | 14,693 | 59,506 | 41,950 |
Sales and marketing | 42,753 | 34,463 | 127,288 | 103,371 |
General and administrative | 16,520 | 13,625 | 48,723 | 38,287 |
Restructuring | (170) | |||
Total operating expenses | 80,074 | 62,781 | 235,517 | 183,438 |
Income (loss) from operations | 1,629 | 1,572 | (2,827) | (1,426) |
Other income (expense) | ||||
Interest income | 727 | 653 | 2,823 | 1,640 |
Interest expense | (1,106) | (1,961) | (3,581) | (4,056) |
Foreign exchange (expense) income and other, net | (93) | 705 | 159 | 762 |
Total other income (expense), net | (472) | (603) | (599) | (1,654) |
Income (loss) before income taxes | 1,157 | 969 | (3,426) | (3,080) |
Provision for income taxes | 951 | 511 | 1,299 | 1,991 |
Net income (loss) | $ 206 | $ 458 | $ (4,725) | $ (5,071) |
Net income (loss) per ordinary share | ||||
Basic | $ 0 | $ 0.01 | $ (0.08) | $ (0.08) |
Diluted | $ 0 | $ 0.01 | $ (0.08) | $ (0.08) |
Weighted-average number of ordinary shares outstanding | ||||
Basic | 62,189 | 60,141 | 61,822 | 59,707 |
Diluted | 63,996 | 62,537 | 61,822 | 59,707 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 206 | $ 458 | $ (4,725) | $ (5,071) |
Other comprehensive income (loss): | ||||
Net unrealized (losses) gains on investments, net of tax | (21) | (10) | (28) | 86 |
Change in foreign currency translation adjustment | 3,220 | (3,717) | 5,775 | (5,581) |
Total other comprehensive income (loss) | 3,199 | (3,727) | 5,747 | (5,495) |
Comprehensive income (loss) | $ 3,405 | $ (3,269) | $ 1,022 | $ (10,566) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Mar. 31, 2018 | $ 101,692 | $ 707 | $ 212,839 | $ (106,507) | $ (5,347) |
Beginning balance, Shares at Mar. 31, 2018 | 58,950,000 | ||||
Net income (loss) | (5,071) | (5,071) | |||
Foreign currency translation adjustment | (5,581) | (5,581) | |||
Unrealized gain (losses) on investments | 86 | 86 | |||
Issuance of ordinary shares | 13,406 | $ 17 | 13,389 | ||
Issuance of ordinary shares, Shares | 1,400,000 | ||||
Share-based compensation | 18,449 | 18,449 | |||
Ending balance at Dec. 31, 2018 | 152,857 | $ 724 | 244,677 | (81,702) | (10,842) |
Ending balance, Shares at Dec. 31, 2018 | 60,350,000 | ||||
Beginning balance at Sep. 30, 2018 | 144,748 | $ 721 | 233,302 | (82,160) | (7,115) |
Beginning balance, Shares at Sep. 30, 2018 | 60,043,000 | ||||
Net income (loss) | 458 | 458 | |||
Foreign currency translation adjustment | (3,717) | (3,717) | |||
Unrealized gain (losses) on investments | (10) | (10) | |||
Issuance of ordinary shares | 4,195 | $ 3 | 4,192 | ||
Issuance of ordinary shares, Shares | 307,000 | ||||
Share-based compensation | 7,183 | 7,183 | |||
Ending balance at Dec. 31, 2018 | 152,857 | $ 724 | 244,677 | (81,702) | (10,842) |
Ending balance, Shares at Dec. 31, 2018 | 60,350,000 | ||||
Cumulative effect adjustment | ASU 2014-09 [Member] | 29,876 | 29,876 | |||
Beginning balance at Mar. 31, 2019 | $ 173,635 | $ 734 | 263,388 | (83,632) | (6,855) |
Beginning balance, Shares at Mar. 31, 2019 | 61,158,051 | 61,158,000 | |||
Net income (loss) | $ (4,725) | (4,725) | |||
Foreign currency translation adjustment | 5,775 | 5,775 | |||
Unrealized gain (losses) on investments | (28) | (28) | |||
Issuance of ordinary shares | 19,720 | $ 16 | 19,704 | ||
Issuance of ordinary shares, Shares | 1,328,000 | ||||
Share-based compensation | 29,655 | 29,655 | |||
Tax withholding on vesting of restricted share units | (1,556) | (1,556) | |||
Ending balance at Dec. 31, 2019 | $ 224,648 | $ 750 | 311,191 | (86,185) | (1,108) |
Ending balance, Shares at Dec. 31, 2019 | 62,485,632 | 62,486,000 | |||
Beginning balance at Sep. 30, 2019 | $ 202,620 | $ 743 | 292,575 | (86,391) | (4,307) |
Beginning balance, Shares at Sep. 30, 2019 | 61,953,000 | ||||
Net income (loss) | 206 | 206 | |||
Foreign currency translation adjustment | 3,220 | 3,220 | |||
Unrealized gain (losses) on investments | (21) | (21) | |||
Issuance of ordinary shares | 8,913 | $ 7 | 8,906 | ||
Issuance of ordinary shares, Shares | 533,000 | ||||
Share-based compensation | 9,732 | 9,732 | |||
Tax withholding on vesting of restricted share units | (22) | (22) | |||
Ending balance at Dec. 31, 2019 | $ 224,648 | $ 750 | $ 311,191 | (86,185) | $ (1,108) |
Ending balance, Shares at Dec. 31, 2019 | 62,485,632 | 62,486,000 | |||
Cumulative effect adjustment | ASU 2016-02 [Member] | $ 2,172 | $ 2,172 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Operating activities | ||
Net loss | $ (4,725) | $ (5,071) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 23,411 | 22,043 |
Share-based compensation expense | 29,673 | 18,486 |
Amortization of deferred contract costs | 6,878 | 4,530 |
Amortization of debt issuance costs | 386 | 239 |
Amortization of operating lease right-of-use assets | 24,108 | |
Other non-cash items | (6) | (365) |
Unrealized currency (gains) losses on foreign denominated transactions | (496) | 183 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,287 | (2,966) |
Prepaid expenses and other current assets | 10,603 | 630 |
Deferred contract costs | (16,524) | (13,594) |
Other assets | (1,980) | (1,314) |
Accounts payable | 1,455 | 2,460 |
Deferred revenue | 15,688 | 20,574 |
Operating lease liabilities | (17,969) | |
Accrued expenses and other liabilities | (6,299) | 2,072 |
Net cash provided by operating activities | 65,490 | 47,907 |
Investing activities | ||
Purchases of strategic investments | (3,025) | |
Purchases of investments | (20,940) | |
Maturities of investments | 36,000 | 59,000 |
Purchases of property, equipment and capitalized software | (40,283) | (23,879) |
Payments for acquisitions, net of cash acquired | (21,130) | (108,913) |
Net cash used in investing activities | (28,438) | (94,732) |
Financing activities | ||
Proceeds from issuance of ordinary shares | 19,720 | 13,406 |
Withholding taxes related to net share settlement of restricted share units | (1,556) | |
Payments on debt | (3,125) | (1,250) |
Payments on finance lease obligations | (673) | (685) |
Payments on construction financing lease obligations | (1,647) | |
Proceeds from issuance of debt, net of issuance costs | 97,748 | |
Net cash provided by financing activities | 14,366 | 107,572 |
Effect of foreign exchange rates on cash | 869 | (3,402) |
Net increase in cash and cash equivalents | 52,287 | 57,345 |
Cash and cash equivalents at beginning of period | 137,576 | 78,339 |
Cash and cash equivalents at end of period | 189,863 | 135,684 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 3,244 | 1,867 |
Cash paid during the period for income taxes | 1,300 | 1,374 |
Supplemental disclosure of non-cash investing and financing activities | ||
Unpaid purchases of property, equipment and capitalized software | 11,403 | 5,182 |
Construction costs capitalized under financing lease obligations | 22,847 | |
Operating lease right-of-use assets exchanged for lease obligations | $ 7,957 | |
Amounts due from seller for acquisitions | $ 455 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | 1. Summary of Business and Significant Accounting Policies Description of Business Mimecast Limited (Mimecast or the Company) is a public limited company organized under the laws of the Bailiwick of Jersey on July 28, 2015 and is headquartered in London, England. The principal activity of the Company is the provision of email management services. Mimecast delivers a software-as-a-service (SaaS) enterprise email management service for archiving, continuity, and security, as well as web security and awareness training. 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 North America, Europe, 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, 2019 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, 2019. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information, pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the financial information and footnotes required by GAAP for complete financial statements. 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, 2019 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 December 31, 2019, and for the three and nine months ended December 31, 2019 and 2018. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. 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 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, valuation at fair value of assets acquired or sold, including intangibles, goodwill, tangible assets, and liabilities assumed, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, construction financing lease obligations, determination of incremental borrowing rates, 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 estima tes are recorded in the period in which they become known. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes certain changes in equity that are excluded from net income (loss). As of December 31, 2019 and March 31, 2019, 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. Accounting Policies 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 December 31, 2019, 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. Lease Policy In accordance with ASU 2016-02, effective April 1, 2019, the Company classifies leases at the lease commencement date. At the commencement date, the Company will recognize a right-of-use asset (ROUA) and a lease liability on the balance sheet for all leases with the exception of facilities leases with a lease term of 12 months or less. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has elected to account for lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROUAs are recorded based on the present value of lease payments over the expected lease term. The implicit rate within the Company’s leases are generally not determinable and therefore the Company uses the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The Company determines its incremental borrowing rate for each lease based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Certain of the Company’s leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROUA and lease liability when it is reasonably certain the Company will exercise that option. An option to terminate is considered unless it is reasonably certain the Company will not exercise the option. Refer to Note 6 for further information. 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, 2019, the Company adopted ASU 2016-02, which requires a lessee to recognize most leases on the balance sheet but recognize expenses on the income statement in a manner similar to historical practice. The update states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying assets for the lease term. The Company adopted ASU 2016-02 utilizing the modified retrospective transition method in the first quarter of fiscal 2020 and did not restate comparative periods. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward the historical lease classification. Refer to Note 6 for further information on the impact of the adoption of ASU 2016-02 on the Company’s consolidated financial statements. On April 1, 2019, the Company adopted ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting The adoption of this standard had no impact on the Company’s consolidated financial statements Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) modified retrospective basis In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 9 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Deferred Revenue | 2. Revenue and Deferred Revenue Revenue recognized during the three and nine months ended December 31, 2019 from amounts included in deferred revenue at the beginning of the respective periods was approximately $73.1 million and $143.5 million, respectively. Revenue recognized during the three and nine months ended December 31, 2019 from performance obligations satisfied or partially satisfied in previous periods was not material. Contracted revenue as of December 31, 2019 that has not yet been recognized (contracted and not recognized) was $97.4 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 54% 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. |
Concentration of Credit Risk an
Concentration of Credit Risk and Off-Balance Sheet Risk | 9 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk and Off-Balance Sheet Risk | 3. 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 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 December 31, 2019 and March 31, 2019, no individual customer represented more than 10% of the Company’s accounts receivable. During the three and nine months ended December 31, 2019 and 2018, no individual customer represented more than 10% of the Company’s revenue. The Company diversifies its investment portfolio by investing in multiple types of investment-grade securities and attempts to mitigate a risk of loss by using a third-party investment manager. As of December 31, 2019, the Company did not hold any investments. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | 4. 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 in the condensed consolidated statements of operations. The Company did not hold any debt investments as of December 31, 2019. When the Company holds debt investments classified as available-for-sale pursuant to Accounting Standard Codification (ASC) 320, Investments – Debt 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. As of December 31, 2019, the Company did not hold any investments. As of March 31, 2019, the aggregate fair value of investments held by the Company in an unrealized loss position for less than twelve months was $10.0 million. As of December 31, 2019 and March 31, 2019, 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 December 31, 2019 and March 31, 2019: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019: Cash and cash equivalents due in 90 days or less $ 189,863 $ — $ — $ 189,863 Total cash, cash equivalents and investments $ 189,863 $ — $ — $ 189,863 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2019: Cash and cash equivalents due in 90 days or less $ 137,576 $ — $ — $ 137,576 Investments: U.S. treasury securities due in one year or less 1,993 1 — 1,994 Non-U.S. government securities due in one year or less 7,969 12 — 7,981 Corporate securities due in one year or less 25,951 24 (9 ) 25,966 Total investments 35,913 37 (9 ) 35,941 Total cash, cash equivalents and investments $ 173,489 $ 37 $ (9 ) $ 173,517 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments The Company’s financial instruments include cash, cash equivalents, investments, accounts receivable, accounts payable, accrued expenses and borrowings under the Company’s long-term debt arrangements. The carrying amount of the Company’s long-term debt arrangements approximates its fair values due to the interest rates the Company believes it could obtain for arrangements with similar terms. The Company’s investments are classified as available-for-sale and reported at fair value in accordance with the market approach utilizing quoted prices that were directly or indirectly observable. The carrying amount of the remainder of the Company’s financial instruments approximated their fair values as of December 31, 2019 and March 31, 2019, due to the short-term nature of those instruments. Strategic investments consist of non-controlling equity investments in privately held companies. The Company elected the measurement alternative for these investments without readily determinable fair values and for which the Company does not have the ability to exercise significant influence. These non-marketable equity securities are carried at cost less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which is recorded within the condensed consolidated statements of operations. As of December 31, 2019, the Company held $3.0 million of strategic investments without readily determinable fair values. These investments are included in other assets on the condensed consolidated balance sheets. There have been no adjustments to the carrying value of strategic investments resulting from impairments or observable price changes. 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 December 31, 2019 and March 31, 2019, the Company 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 and nine months ended December 31, 2019 and the year ended March 31, 2019. 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 December 31, 2019 and March 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 14,350 $ — $ 14,350 Total assets $ 14,350 $ — $ 14,350 March 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 8,348 $ — $ 8,348 U.S. treasury securities — 1,994 1,994 Non-U.S. government securities — 7,981 7,981 Corporate securities — 25,966 25,966 Total assets $ 8,348 $ 35,941 $ 44,289 |
Leases
Leases | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases The Company has operating and finance leases for data centers, facilities, and certain equipment. The leases have remaining lease terms of less than a year to 10 years, some of which include options to extend the leases for up to 10 years. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. Variable costs, which are based on actual usage, are not included in the measurement of ROUAs and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. Amortization expense of the ROUA for finance leases is recognized on a straight-line basis over the lease term and interest expense for finance leases is recognized based on the effective interest method using an incremental borrowing rate. Adoption of ASU 2016-02 resulted in the recording of additional net lease assets and lease liabilities of approximately $141.3 million and $154.7 million, respectively, as of April 1, 2019. Incremental borrowing rates as of April 1, 2019, the date the new standard was adopted, were used to calculate the present value of the Company’s lease portfolio as of that date. As noted below, leases previously identified as build-to-suit leases were derecognized pursuant to the transition guidance provided for build-to-suit leases in ASU 2016-02. The impact of the derecognition of the build-to-suit lease was a net reduction of $2.2 million to accumulated deficit as of April 1, 2019. The Company recorded the deferred tax impact associated with the cumulative-effect adjustment of adopting ASU 2016-02 to retained earnings with an equal and offsetting adjustment to our valuation allowance. The standard did not materially impact the consolidated net earnings or operating cash flows. The impact of the adoption of ASC 842 is as follows: Balance as of March 31, 2019 Adjustments Due to Adoption of ASC 842 Balance as of April 1, 2019 Assets Prepaid expenses and other current assets $ 25,871 $ (939 ) $ 24,932 Property and equipment, net 94,202 (30,963 ) 63,239 Operating lease right-of-use assets — 141,280 141,280 Other assets 5,156 (2,566 ) 2,590 Liabilities Accrued expenses and other current liabilities 44,309 (3,248 ) 41,061 Current portion of operating lease liabilities — 27,611 27,611 Construction financing lease obligations 36,650 (36,650 ) - Operating lease liabilities — 127,119 127,119 Other non-current liabilities 15,581 (10,192 ) 5,389 Shareholders' equity Accumulated deficit (83,632 ) 2,172 (81,460 ) The components of lease expense were as follows: Three months ended December 31, Nine months ended December 31, 2019 2019 Short-term lease cost $ 70 $ 211 Variable lease cost 973 2,824 Operating lease cost 9,779 28,714 Finance lease cost: Amortization of lease assets 309 928 Interest on lease liabilities 22 75 Total finance lease cost $ 331 $ 1,003 Supplemental cash flow information related to leases was as follows: Three months ended December 31, Nine months ended December 31, 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 9,550 $ 23,046 Operating cash outflows from finance leases $ 20 $ 62 Financing cash outflows from finance leases $ 255 $ 673 Weighted-average remaining lease term and discount rate: As of December 31, 2019 Weighted-average remaining lease term (in years) Operating leases 6.63 Finance leases 1.56 Weighted-average discount rate Operating leases 4.72 % Finance leases 4.83 % Maturities of lease liabilities as of December 31, 2019 were as follows: Year Ending March 31, Operating Leases Finance Leases Remainder of 2020 $ 9,696 $ 184 2021 34,940 1,102 2022 29,139 326 2023 18,182 — 2024 15,419 — Thereafter 62,523 — Total lease payments 169,899 1,612 Less: imputed interest (24,467 ) (59 ) Total lease liabilities $ 145,432 $ 1,553 As of December 31, 2019, the Company had no additional operating or finance leases that have not yet commenced. Rent expense related to the Company’s office facilities was $3.9 million and $1.1 million for the three months ended December 31, 2019 and 2018, respectively. Rent expense related to the Company’s office facilities was $11.8 million and $3.5 million for the nine months ended December 31, 2019 and 2018, respectively. As previously disclosed in the Company’s Annual Report on Form 10-K and under the previous lease accounting standard, future minimum payments for capital leases, facility operating leases (including Lexington MA – U.S. build-to-suit lease) and data center operating leases as of March 31, 2019 were as follows: Year Ending March 31, Capital Leases Facility Leases Data Centers 2020 $ 918 $ 10,649 $ 21,216 2021 1,102 15,186 17,427 2022 326 14,111 13,010 2023 — 13,825 2,774 2024 — 13,686 356 Thereafter — 59,502 — Total minimum lease payments 2,346 $ 126,959 $ 54,783 Less: Amount representing interest (121 ) Present value of capital lease obligations 2,225 Less: Current portion (844 ) Long-term portion of capital lease obligations $ 1,381 As previously disclosed in the Company’s Annual Report on Form 10-K and under the previous lease accounting standard, property and equipment acquired under capital leases as of March 31, 2019 consisted of $4.8 million of computer equipment, net of accumulated amortization of $2.2 million. Depreciation and amortization expense in the three and nine months ended December 31, 2018 included $0.3 million and $0.9 million, respectively related to property and equipment acquired under capital leases. Lexington, MA - U.S. Headquarters Prior to the adoption of ASU 2016-02, the Company established assets and liabilities for the estimated construction costs incurred under certain lease arrangements where it was considered the owner for accounting purposes only, or build-to-suit leases, to the extent it was involved in the construction of structural improvements or took construction risk prior to commencement of a lease. Upon occupancy of facilities under build-to-suit leases, the Company assessed whether these arrangements qualified for sales recognition under the sale-leaseback accounting guidance. In February 2017, the Company entered into a lease agreement for a new U.S. headquarters located in a building (the Building) under construction at 191 Spring Street, Lexington, Massachusetts (191 Spring Lease) and determined that it would account for the 191 Spring Lease as a build-to-suit lease as of March 31, 2017. In the year ended March 31, 2018, the construction of the Building was substantially completed. The Company concluded that it did not meet the sale-leaseback criteria and the Company continued to be the deemed owner of the building for accounting purposes. Upon the adoption of ASU 2016-02, the Company derecognized the build-to-suit asset and related liability |
Internal-use Software Costs
Internal-use Software Costs | 9 Months Ended |
Dec. 31, 2019 | |
Research And Development [Abstract] | |
Internal-use Software Costs | 7. Internal-use Software Costs Software Development Costs Costs incurred to develop software applications used in the Company’s SaaS platform consist of certain direct costs of materials and services incurred in developing or obtaining internal-use computer software, and payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding, and testing activities. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs incurred for maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. During the three and nine months ended December 31, 2019 and 2018, 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. Implementation Costs on Cloud-computing Arrangements As of December 31, 2019 and March 31, 2019, the net carrying value of capitalized implementation costs related to hosting arrangements that were incurred during the application development stage were $3.2 million and $1.6 million, respectively. These capitalized implementation costs will be amortized over the expected term of the arrangement and are amortized in the same line item in the condensed consolidated statements of operations as the expense for fees for the associated hosting arrangement. |
Net Income (Loss) Per Ordinary
Net Income (Loss) Per Ordinary Share | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Ordinary Share | 8. Net Income (Loss) Per Ordinary Share The Company calculates basic and diluted net income (loss) per ordinary share by dividing net income (loss) by the weighted-average number of ordinary shares outstanding during the period. For periods that net losses are incurred, the Company has excluded other potentially dilutive shares, which include The following table presents the calculation of basic and diluted net income (loss) per share for the periods presented (in thousands, except per share data): Three months ended December 31, Nine months ended December 31, 2019 2018 2019 2018 Numerator: Net income (loss) $ 206 $ 458 $ (4,725 ) $ (5,071 ) Denominator: Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders - basic 62,189 60,141 61,822 59,707 Dilutive effect of share equivalents resulting from share options, RSUs and ESPP shares 1,807 2,396 — — Weighted-average number of ordinary shares used in computing net income (loss) per share - diluted 63,996 62,537 61,822 59,707 Net income (loss) per share applicable to ordinary shareholders: Basic $ 0.00 $ 0.01 $ (0.08 ) $ (0.08 ) Diluted $ 0.00 $ 0.01 $ (0.08 ) $ (0.08 ) The following potentially dilutive ordinary share equivalents have been excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive for the periods presented (in thousands): Three months ended December 31, Nine months ended December 31, 2019 2018 2019 2018 Share options outstanding 3,750 792 6,450 6,870 Unvested RSUs 138 — 1,247 438 ESPP shares — 69 165 138 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation As of December 31, 2019, the Company has four share-based compensation plans and an ESPP. Prior to November 19, 2015, the Company had 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). Subsequent to November 19, 2015, the Mimecast Limited 2015 Share Option and Incentive Plan (the 2015 Plan) and the 2015 Employee Share Purchase Plan (the ESPP) became effective and all grants of share-based awards have been made under these plans and no further grants under the Historical Plans were permitted. 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: Nine months ended December 31, 2019 2018 Expected term (in years) 6.1 6.1 Risk-free interest rate 2.2 % 2.8 % Expected volatility 42.8 % 41.4 % Expected dividend yield — % — % Estimated grant date fair value per ordinary share $ 46.18 $ 36.79 The weighted-average per share fair value of options granted to employees during the nine months ended December 31, 2019 and 2018 was $20.50 and $16.32, respectively. As of December 31, 2019, the number of options and awards available for future grant under the 2015 Plan was 7,027,884. Share option activity under the 2015 Plan and the Historical Plans for the nine months ended December 31, 2019 was as follows: Number of Awards Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of March 31, 2019 6,208,964 $ 23.47 7.58 $ 148,313 Options granted 1,845,018 $ 46.18 Options exercised (1,077,617 ) $ 13.76 Options forfeited and cancelled (526,066 ) $ 34.32 Outstanding as of December 31, 2019 6,450,299 $ 30.71 7.73 $ 87,453 Exercisable as of December 31, 2019 2,487,130 $ 19.20 6.34 $ 60,171 (1) Certain of the Company’s option grants have an exercise price denominated in British pounds. The weighted-average exercise price at the end of each reporting period was translated into U.S. dollars using the exchange rate at the end of the period. The weighted-average exercise price for the options granted, exercised, forfeited and cancelled was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or cancellation, as appropriate. The total intrinsic value of options exercised was $32.8 million for the nine months ended December 31, 2019. Total cash proceeds from option exercises for the nine months ended December 31, 2019 and 2018 was $14.8 million and $10.1 million, respectively. As of December 31, 2019, there was approximately $57.1 million of unrecognized share-based compensation related to unvested share-based awards subject to service-based vesting conditions, which is expected to be recognized over a weighted-average period of 2.81 years. ESPP 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 As of December 31, 2019, there were 0.8 million shares of the Company's ordinary shares available for future issuance under the ESPP. RSUs The Company grants RSUs to its non-employee directors and its employees. Non-employee directors receive an initial RSU grant upon joining the board of directors that vests over three 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 generally vest in four equal annual installments. RSU activity under the 2015 Plan for the nine months ended December 31, 2019 was as follows: Number of Awards Weighted Average Grant Date Fair Value Intrinsic Value Unvested RSUs as of March 31, 2019 549,853 $ 37.15 $ 26,036 RSUs granted 929,640 $ 46.00 RSUs vested (126,443 ) $ 37.05 RSUs forfeited (105,815 ) $ 44.28 Unvested RSUs as of December 31, 2019 1,247,235 $ 43.15 $ 54,105 As of December 31, 2019, there was approximately $44.1 million of unrecognized share-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 3.11 years. Share-based compensation expense recognized under the 2015 Plan, Historical Plans and the ESPP in the accompanying condensed consolidated statements of operations was as follows: Three months ended December 31, Nine months ended December 31, 2019 2018 2019 2018 Cost of revenue $ 851 $ 433 $ 2,544 $ 1,257 Research and development 2,788 1,560 8,030 4,461 Sales and marketing 2,856 2,045 10,169 5,841 General and administrative 3,206 3,158 8,930 6,927 Total share-based compensation expense $ 9,701 $ 7,196 $ 29,673 $ 18,486 In certain situations, the board of directors has approved modifications to employee share option agreements, including acceleration of vesting or 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 December 31, 2019 and 2018 was $0.1 million and $1.2 million, respectively. The total modification expense included in the table above for the nine months ended December 31, 2019 and 2018 was $0.1 million and $2.0 million, respectively. |
Acquisitions
Acquisitions | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 10. Acquisitions The following acquisitions have been accounted for as business combinations in accordance with ASC 805, Business Combinations Fiscal 2020 Acquisition DMARC Analyzer B.V. On November 13, 2019, the Company acquired DMARC Analyzer B.V., a company organized under the laws of the Netherlands (DMARC Analyzer), for cash consideration of approximately $21.1 million, net of cash acquired of $0.4 million. DMARC Analyzer is a SaaS-based solution provider that offers user-friendly Domain-based Message Authentication, Reporting and Conformance (DMARC) setup, management and analysis. This acquisition further addresses threats at the email perimeter, inside the email network, and beyond their immediate purview. The purchase price allocation primarily consisted of $3.4 million of identifiable intangible assets and approximately $19.0 million of goodwill that is not deductible for tax purposes. The identifiable intangible assets primarily include developed technology of $3.2 million and customer relationships of $0.2 million, with estimated useful lives of 7.5 years and 5.5 years, respectively. The goodwill reflects the value of the synergies the Company expects to realize and the assembled workforce. The preliminary purchase price and allocations are subject to finalization of amounts for potential working capital adjustments. The Company has not presented pro forma results of operations for the DMARC Analyzer acquisition because it is not material to the Company's condensed consolidated results of operations, financial position, or cash flows. Fiscal 2019 Acquisitions Solebit LABS Ltd. On July 31, 2018, the Company entered into a share purchase agreement (the Purchase Agreement) pursuant to which it acquired Solebit LABS Ltd. (Solebit), a company organized under the laws of the State of Israel, that provides security software. Solebit’s technology enhances security for the Company’s customers and adds to its ability to detect and prevent cyber-attacks, zero day threats and malware across email and the web in real time. This acquisition further enhanced the Company’s cyber resilience platform architecture. The total purchase price of $96.5 million included cash payments of approximately $95.7 million. The following table summarizes the final purchase price allocation: Purchase consideration: Total cash paid, net of acquired cash $ 85,258 Cash and cash equivalents acquired 10,410 Fair value of previously held asset 828 Total purchase price consideration $ 96,496 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 10,410 Prepaid expenses and other current assets 76 Intangible assets 16,964 Goodwill 74,469 Total assets acquired 101,919 Accounts payable (18 ) Accrued expenses and other current liabilities (2,345 ) Deferred revenue (663 ) Other non-current liabilities (2,397 ) Total fair value of assets acquired and liabilities assumed $ 96,496 The significant intangible assets identified in the purchase price allocation discussed above include developed technology and customer relationships, which are amortized over their respective useful lives on a straight-line basis when the pattern in which their economic benefits will be consumed cannot be reliably determined. To value the developed technology asset, the Company utilized the income approach, specifically a discounted cash-flow method known as the multi-period excess earnings method. Customer relationships represent the underlying relationships with certain customers to provide ongoing services for products sold. The Company utilized the income approach, specifically the distribution method, a subset of the excess-earnings method to value the customer relationships. The fair value of the assets acquired and liabilities assumed reflected in the tables above is less than the purchase price, resulting in the recognition of goodwill. The goodwill is not deductible for tax purposes and reflects the value of the synergies the Company expects to realize and the assembled workforce. The following table presents the estimated fair values and useful lives of the identifiable intangible assets acquired: Amount Estimated Useful Life (in years) Developed technology $ 16,689 10 Customer relationships 235 7 Trade names 40 1 Total identifiable intangible assets $ 16,964 Pro Forma Financial Information (unaudited) The following unaudited pro forma information presents the combined results of operations of the Company and Solebit for the three and nine months ended December 31, 2018 as if the acquisition of Solebit had been completed on April 1, 2017. These pro forma financial results have been prepared for comparative purposes only and include certain adjustments that reflect pro forma results of operations such as fair value adjustments (step-downs) for deferred revenue, increased amortization for the fair value of acquired intangible assets and adjustments to eliminate transaction costs incurred by the Company and Solebit. The unaudited pro fo rma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of the Company and Solebit. Accordingly, these unaudited pro forma results are presented for informational purposes on ly and are not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred as of April 1, 2017, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amounts): Three Nine months ended December 31, 2018 2018 Revenue $ 87,611 $ 248,631 Net income (loss) 482 (5,803 ) Basic net income (loss) per share $ 0.01 $ (0.10 ) Diluted net income (loss) per share $ 0.01 $ (0.10 ) Weighted average number of ordinary shares outstanding Basic 60,141 59,707 Diluted 62,537 59,707 ATAATA, Inc. On July 9, 2018, the Company acquired ATAATA, Inc. (Ataata), a privately-owned company based in the United States, for cash consideration of approximately $23.2 million, net of cash acquired of $1.9 million. Ataata is a cybersecurity 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. The acquisition allows customers to measure cyber risk training effectiveness by converting behavior observations into actionable risk metrics for security professionals. The addition of security awareness training and risk scoring and analysis strengthened the Company’s cyber resilience for email capabilities. The purchase price allocation primarily consisted of $1.5 million of identifiable intangible assets and approximately $22.6 million of goodwill that is not deductible for tax purposes. The identifiable intangible assets primarily include developed technology of $1.4 million and customer relationships of $0.1 million, with estimated useful lives of ten years and six years, respectively. The goodwill balance is primarily attributed to the expanded market opportunities when combining Ataata's awareness training technology with the Company’s other offerings. The Company has not presented pro forma results of operations for the Ataata acquisition because it is not material to the Company's condensed consolidated results of operations, financial position, or cash flows. Simply Migrate Ltd. On January 25, 2019, the Company acquired Simply Migrate Ltd. (Simply Migrate), a provider of archive data migration technology, for cash consideration of approximately $7.2 million, net of cash acquired of $0.1 million. With this acquisition, the Company expanded its data migration services with a rich portfolio of connectors, combined with a deeper experience in helping organizations get out of the business of managing expensive, unreliable legacy archives so they can move to a next-generation data protection strategy in the Mimecast cloud. The purchase price allocation primarily consisted of $3.3 million of identifiable intangible assets, specifically developed technology, with an estimated useful life of eight years and approximately $4.3 million of goodwill that is not deductible for tax purposes. The goodwill balance is primarily attributed to the expanded market opportunities when combining Simply Migrate's archive data migration technology with the Company’s other offerings. The Company has not presented pro forma results of operations for the Simply Migrate acquisition because it is not material to the Company's consolidated results of operations, financial position, or cash flows. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 11. Goodwill and Intangible Assets The following is a rollforward of the Company’s goodwill balance: Goodwill Balance as of March 31, 2019 $ 107,575 Goodwill acquired 19,032 Effect of foreign exchange rates 4,070 Balance as of December 31, 2019 $ 130,677 Purchased intangible assets consist of the following: Weighted- Average December 31, 2019 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 8 $ 27,676 $ (3,752 ) $ 23,924 Customer relationships 5 719 (131 ) 588 Trade names < 1 58 (58 ) — Capitalized software and other (1) (2) 3 17,360 (7,073 ) 10,287 $ 45,813 $ (11,014 ) $ 34,799 Weighted- Average March 31, 2019 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 9 $ 23,577 $ (1,707 ) $ 21,870 Customer relationships 6 455 (73 ) 382 Trade names 1 56 (34 ) 22 Capitalized software (1) 3 12,431 (4,082 ) 8,349 $ 36,519 $ (5,896 ) $ 30,623 (1) As of December 31, 2019 and March 31, 2019, the net carrying value of capitalized software and other includes $1.0 million and $0.5 million, respectively, of costs capitalized related to video production costs. (2) As of December 31, 2019, the net carrying value of capitalized software and other includes $0.3 million of costs capitalized related to IP addresses. The Company recorded amortization expense of $1.9 million and $1.3 million for the three months ended December 31, 2019 and 2018, respectively. The Company recorded amortization expense of $4.9 million and $3.3 million for the nine months ended December 31, 2019 and 2018, respectively. Amortization relating to developed technology and capitalized software was recorded within cost of revenue and amortization of customer relationships and trade names was recorded within sales and marketing expenses. Future estimated amortization expense of intangible assets as of December 31, 2019, is as follows: Purchased Intangible Assets Capitalized Software Remainder of 2020 $ 783 $ 1,231 2021 3,132 4,140 2022 3,132 2,760 2023 3,132 1,670 2024 3,074 308 Thereafter 11,259 178 Total $ 24,512 $ 10,287 |
Debt
Debt | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt In July 2018, the Company entered into a credit agreement that provided the Company with a $100.0 million senior secured term loan (the Term Loan) and a $50.0 million senior secured revolving credit facility (the Revolving Facility, and together with the Term Loan, the Credit Facility). The term of the Credit Facility is five years, maturing on July 23, 2023. As of December 31, 2019 and March 31, 2019, the effective interest rate under the Credit Facility was 3.47% and 4.12%, respectively. The Credit Facility requires the Company to maintain compliance with certain debt covenants, all of which the Company was in compliance with as of December 31, 2019. As of December 31, 2019, the Company had $95.0 million outstanding on the Term Loan and had no outstanding borrowings under the Revolving Facility. Total availability under the Revolving Facility is reduced by outstanding letters of credit of $2.0 million. As of December 31, 2019, total availability under the Revolving Facility was $48.0 million. Future minimum principal payment obligations under the Term Loan are as follows: Year Ending March 31, Debt Remainder of 2020 $ 1,250 2021 6,875 2022 9,375 2023 10,000 2024 67,500 Total minimum debt payments 95,000 Less: Debt issuance costs (997 ) Less: Current portion of long-term debt (5,947 ) Long-term debt $ 88,056 As of December 31, 2019 and March 31, 2019, the balance of debt issuance costs recorded as a reduction of debt was $1.0 million and $1.3 million, respectively. As of December 31, 2019 and March 31, 2019, the balance of debt issuance costs recorded in other assets was $0.5 million and $0.6 million, respectively. Total interest expense under the Credit Facility for the three months ended December 31, 2019 and 2018 was $1.0 million and $1.1 million, respectively. Total interest expense under the Credit Facility for the nine months ended December 31, 2019 and 2018 was $3.1 million and $1.9 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Litigation The Company had been engaged in discussions over the last several months with a non-practicing patent entity (NPE) regarding the entity’s patented technology and allegations regarding the Company’s past infringement of that technology. On September 30, 2019, the Company entered into confidential global patent license agreements with the NPE and certain of its affiliates that provided patent licenses to the Company related to the NPE’s global patent portfolio, resolved all claims of past infringement and provided mutual covenants not to sue for a certain number of years. Under the terms of the patent license agreements, the Company made an aggregate payment of $5.9 million to the NPE. The Company evaluated the transaction as a multiple-element arrangement and allocated the payment of $5.9 million to each identifiable element using its relative fair value. Based on estimates of fair value, the Company determined that the primary benefit of the arrangement is the avoidance of litigation costs and the release of any potential past infringement claims, with a portion of the value attributable to future use or benefit of the global patent license. The Company recorded an incremental expense of $2.35 million within general and administrative expenses during the three months ended September 30, 2019. Previously, the Company had recorded expenses of $1.0 in the fiscal year ended March 31, 2019 and $0.35 million in the three months ended June 30, 2019 to general and administrative expense. The remaining $2.2 million will be amortized over its expected useful life of 3.5 years. On September 10, 2019, ZapFraud, Inc. (ZapFraud), filed a complaint in the U.S. District Court for the District of Delaware against the Company’s wholly owned subsidiaries, Mimecast North America, Inc., Mimecast Services Limited and Mimecast UK Limited. The complaint alleges that certain elements of the Company’s email security technology infringe a patent held by ZapFraud. ZapFraud seeks an award for damages in an unspecified amount, attorney’s fees and injunctive relief. On November 22, 2019, the Company filed a Motion to Dismiss for Failure to State a Claim. The Company has requested that a hearing be held on this motion, but no court date has been set. This litigation is in its very early stages. As a result, neither the ultimate outcome of this litigation nor an estimate of a probable loss or any reasonably possible losses can be assessed at this time. The Company intends to defend the lawsuit vigorously. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and potential settlement costs, diversion of management resources and other factors. From time to time, the Company may be involved in legal proceedings and subject to claims in the ordinary course of business. Although the results of these proceedings and claims cannot be predicted with certainty, excep t as described above, the Company does not believe the ultimate cost to resolve these matters would individually, or taken together, have a material adverse effect on the Company’s business, operating results, cash flows or financial condition. Regardless of the outcome, such proceedings can have an adverse impact on the Company because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained. Except as described above, the Company was not subject to any material legal proceedings during the three and nine months ended December 31, 2019 and 2018, 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 December 31, 2019 and March 31, 2019, the Company has not incurred any costs for the above 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 | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31, Nine months ended December 31, 2019 2018 2019 2018 Revenue: United States $ 56,214 $ 43,973 $ 160,442 $ 123,041 United Kingdom 32,063 26,399 90,578 76,069 South Africa 13,335 11,611 38,560 34,247 Other 8,546 5,628 23,166 14,827 Total revenue $ 110,158 $ 87,611 $ 312,746 $ 248,184 Property and equipment, net, by geographic location consists of the following: As of December 31, As of March 31, 2019 2019 United States (1) $ 38,618 $ 62,455 United Kingdom 30,554 17,402 South Africa 8,395 6,170 Australia 3,515 3,481 Other 4,971 4,694 Total $ 86,053 $ 94,202 (1) Includes construction costs capitalized under financing lease obligations related to the Company’s U.S. build-to-suit facility of $41.8 million as of March 31, 2019. In April 2019, the Company derecognized the U.S. build-to-suit facility upon adoption of ASU 2016-02. Refer to Note 6 for further information |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The provision for income taxes for the three months ended December 31, 2019 and 2018 was $1.0 million and $0.5 million, respectively, on income before income taxes of $1.2 million and $1.0 million, respectively. The provision for income taxes for the nine months ended December 31, 2019 and 2018 was $1.3 million and $2.0 million, respectively, on losses before income taxes of $3.4 million and $3.1 million, respectively. The provision for income taxes for the three and nine months ended December 31, 2019 was primarily attributable to the tax provision recorded on the earnings of the Company’s U.S. and South African entities, partially offset by the tax benefit provided on the loss of the Company’s Israeli entity and a discrete tax benefit of $1.6 million and $3.3 million, respectively, related to excess tax benefits on share option exercises by U.S. employees. The provision for income taxes for the three and nine months ended December 31, 2018 was primarily attributable to the tax provision recorded on the earnings of the Company’s U.S. and South African entities, partially offset by the tax benefit provided on the loss of the Company’s Israeli entity. The provision for income taxes for the three months ended December 31, 2018 included a discrete tax benefit $1.9 million related to excess tax benefits on share option exercises by U.S. employees. The provision for income taxes for the nine months ended December 31, 2018 included a discrete tax benefit of $1.9 million related to excess tax benefits on share option exercises by U.S. employees and a discrete tax benefit of $0.4 million for the release of a portion of the Company’s pre-existing U.S. valuation allowance as a result of the Ataata business combination. 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 December 31, 2019. During the three and nine months ended December 31, 2019, the Company did not have a material change to the Company’s liabilities for uncertain tax positions. As of December 31, 2019, none of the Company’s uncertain tax positions, if recognized, would impact the 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 December 31, 2019 and March 31, 2019, accrued interest or penalties related to uncertain tax positions were immaterial. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On January 3, 2020, the Company acquired all of the outstanding equity of Segasec Labs Ltd. (Segasec), other than equity already owned by Mimecast Services Limited. See Note 5 for further information. Segasec is a provider of digital threat protection and was acquired for the preliminary purchase price of approximately $27.1 million, net of cash acquired |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [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, 2019 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, 2019. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information, pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the financial information and footnotes required by GAAP for complete financial statements. 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, 2019 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 December 31, 2019, and for the three and nine months ended December 31, 2019 and 2018. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. |
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, valuation at fair value of assets acquired or sold, including intangibles, goodwill, tangible assets, and liabilities assumed, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, construction financing lease obligations, determination of incremental borrowing rates, 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 estima tes are recorded in the period in which they become known. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes certain changes in equity that are excluded from net income (loss). As of December 31, 2019 and March 31, 2019, 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. |
Lease Policy | Lease Policy In accordance with ASU 2016-02, effective April 1, 2019, the Company classifies leases at the lease commencement date. At the commencement date, the Company will recognize a right-of-use asset (ROUA) and a lease liability on the balance sheet for all leases with the exception of facilities leases with a lease term of 12 months or less. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has elected to account for lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROUAs are recorded based on the present value of lease payments over the expected lease term. The implicit rate within the Company’s leases are generally not determinable and therefore the Company uses the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The Company determines its incremental borrowing rate for each lease based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Certain of the Company’s leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROUA and lease liability when it is reasonably certain the Company will exercise that option. An option to terminate is considered unless it is reasonably certain the Company will not exercise the option. Refer to Note 6 for further information. |
Recently Issued and Adopted 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, 2019, the Company adopted ASU 2016-02, which requires a lessee to recognize most leases on the balance sheet but recognize expenses on the income statement in a manner similar to historical practice. The update states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying assets for the lease term. The Company adopted ASU 2016-02 utilizing the modified retrospective transition method in the first quarter of fiscal 2020 and did not restate comparative periods. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward the historical lease classification. Refer to Note 6 for further information on the impact of the adoption of ASU 2016-02 on the Company’s consolidated financial statements. On April 1, 2019, the Company adopted ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting The adoption of this standard had no impact on the Company’s consolidated financial statements Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) modified retrospective basis In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue and Deferred Revenue | Revenue and Deferred Revenue Revenue recognized during the three and nine months ended December 31, 2019 from amounts included in deferred revenue at the beginning of the respective periods was approximately $73.1 million and $143.5 million, respectively. Revenue recognized during the three and nine months ended December 31, 2019 from performance obligations satisfied or partially satisfied in previous periods was not material. Contracted revenue as of December 31, 2019 that has not yet been recognized (contracted and not recognized) was $97.4 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 54% 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. |
Concentration Of Credit Risk And Off Balance Sheet Risk | Concentration of Credit Risk and Off-Balance Sheet Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments, which potentially subject 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 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 December 31, 2019 and March 31, 2019, no individual customer represented more than 10% of the Company’s accounts receivable. During the three and nine months ended December 31, 2019 and 2018, no individual customer represented more than 10% of the Company’s revenue. The Company diversifies its investment portfolio by investing in multiple types of investment-grade securities and attempts to mitigate a risk of loss by using a third-party investment manager. As of December 31, 2019, the Company did not hold any investments. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments The Company considers all highly liquid instruments purchased with an original maturity date of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks, amounts held in interest-bearing money market funds and investments with maturities of 90 days or less from the date of purchase. Cash equivalents are carried at cost, which approximates their fair market value. Investments not classified as cash equivalents are presented as either short-term or long-term investments based on both their stated maturities as well as the time period the Company intends to hold such securities. The Company determines the appropriate classification of investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company adjusts the cost of investments for amortization of premiums and accretion of discounts to maturity. The Company includes such amortization and accretion in interest income in the condensed consolidated statements of operations. The Company did not hold any debt investments as of December 31, 2019. When the Company holds debt investments classified as available-for-sale pursuant to Accounting Standard Codification (ASC) 320, Investments – Debt 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. As of December 31, 2019, the Company did not hold any investments. As of March 31, 2019, the aggregate fair value of investments held by the Company in an unrealized loss position for less than twelve months was $10.0 million. As of December 31, 2019 and March 31, 2019, 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 December 31, 2019 and March 31, 2019: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019: Cash and cash equivalents due in 90 days or less $ 189,863 $ — $ — $ 189,863 Total cash, cash equivalents and investments $ 189,863 $ — $ — $ 189,863 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2019: Cash and cash equivalents due in 90 days or less $ 137,576 $ — $ — $ 137,576 Investments: U.S. treasury securities due in one year or less 1,993 1 — 1,994 Non-U.S. government securities due in one year or less 7,969 12 — 7,981 Corporate securities due in one year or less 25,951 24 (9 ) 25,966 Total investments 35,913 37 (9 ) 35,941 Total cash, cash equivalents and investments $ 173,489 $ 37 $ (9 ) $ 173,517 |
Internal-use Software Costs | Internal-use Software Costs Software Development Costs Costs incurred to develop software applications used in the Company’s SaaS platform consist of certain direct costs of materials and services incurred in developing or obtaining internal-use computer software, and payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding, and testing activities. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs incurred for maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. During the three and nine months ended December 31, 2019 and 2018, 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. Implementation Costs on Cloud-computing Arrangements As of December 31, 2019 and March 31, 2019, the net carrying value of capitalized implementation costs related to hosting arrangements that were incurred during the application development stage were $3.2 million and $1.6 million, respectively. These capitalized implementation costs will be amortized over the expected term of the arrangement and are amortized in the same line item in the condensed consolidated statements of operations as the expense for fees for the associated hosting arrangement. |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and March 31, 2019: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019: Cash and cash equivalents due in 90 days or less $ 189,863 $ — $ — $ 189,863 Total cash, cash equivalents and investments $ 189,863 $ — $ — $ 189,863 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2019: Cash and cash equivalents due in 90 days or less $ 137,576 $ — $ — $ 137,576 Investments: U.S. treasury securities due in one year or less 1,993 1 — 1,994 Non-U.S. government securities due in one year or less 7,969 12 — 7,981 Corporate securities due in one year or less 25,951 24 (9 ) 25,966 Total investments 35,913 37 (9 ) 35,941 Total cash, cash equivalents and investments $ 173,489 $ 37 $ (9 ) $ 173,517 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and March 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 14,350 $ — $ 14,350 Total assets $ 14,350 $ — $ 14,350 March 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 8,348 $ — $ 8,348 U.S. treasury securities — 1,994 1,994 Non-U.S. government securities — 7,981 7,981 Corporate securities — 25,966 25,966 Total assets $ 8,348 $ 35,941 $ 44,289 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Three months ended December 31, Nine months ended December 31, 2019 2019 Short-term lease cost $ 70 $ 211 Variable lease cost 973 2,824 Operating lease cost 9,779 28,714 Finance lease cost: Amortization of lease assets 309 928 Interest on lease liabilities 22 75 Total finance lease cost $ 331 $ 1,003 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Three months ended December 31, Nine months ended December 31, 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 9,550 $ 23,046 Operating cash outflows from finance leases $ 20 $ 62 Financing cash outflows from finance leases $ 255 $ 673 |
Schedule of Weighted-average Remaining Lease Term and Discount Rate | Weighted-average remaining lease term and discount rate: As of December 31, 2019 Weighted-average remaining lease term (in years) Operating leases 6.63 Finance leases 1.56 Weighted-average discount rate Operating leases 4.72 % Finance leases 4.83 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2019 were as follows: Year Ending March 31, Operating Leases Finance Leases Remainder of 2020 $ 9,696 $ 184 2021 34,940 1,102 2022 29,139 326 2023 18,182 — 2024 15,419 — Thereafter 62,523 — Total lease payments 169,899 1,612 Less: imputed interest (24,467 ) (59 ) Total lease liabilities $ 145,432 $ 1,553 |
Future Minimum Payments for Capital Leases, Facility Operating Leases and Data Center Operating Leases | As previously disclosed in the Company’s Annual Report on Form 10-K and under the previous lease accounting standard, future minimum payments for capital leases, facility operating leases (including Lexington MA – U.S. build-to-suit lease) and data center operating leases as of March 31, 2019 were as follows: Year Ending March 31, Capital Leases Facility Leases Data Centers 2020 $ 918 $ 10,649 $ 21,216 2021 1,102 15,186 17,427 2022 326 14,111 13,010 2023 — 13,825 2,774 2024 — 13,686 356 Thereafter — 59,502 — Total minimum lease payments 2,346 $ 126,959 $ 54,783 Less: Amount representing interest (121 ) Present value of capital lease obligations 2,225 Less: Current portion (844 ) Long-term portion of capital lease obligations $ 1,381 |
ASU 2016-02 [Member] | |
Schedule of Impact of Adoption of ASC 842 | The impact of the adoption of ASC 842 is as follows: Balance as of March 31, 2019 Adjustments Due to Adoption of ASC 842 Balance as of April 1, 2019 Assets Prepaid expenses and other current assets $ 25,871 $ (939 ) $ 24,932 Property and equipment, net 94,202 (30,963 ) 63,239 Operating lease right-of-use assets — 141,280 141,280 Other assets 5,156 (2,566 ) 2,590 Liabilities Accrued expenses and other current liabilities 44,309 (3,248 ) 41,061 Current portion of operating lease liabilities — 27,611 27,611 Construction financing lease obligations 36,650 (36,650 ) - Operating lease liabilities — 127,119 127,119 Other non-current liabilities 15,581 (10,192 ) 5,389 Shareholders' equity Accumulated deficit (83,632 ) 2,172 (81,460 ) |
Net Income (Loss) Per Ordinar_2
Net Income (Loss) Per Ordinary Share (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule for Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net income (loss) per share for the periods presented (in thousands, except per share data): Three months ended December 31, Nine months ended December 31, 2019 2018 2019 2018 Numerator: Net income (loss) $ 206 $ 458 $ (4,725 ) $ (5,071 ) Denominator: Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders - basic 62,189 60,141 61,822 59,707 Dilutive effect of share equivalents resulting from share options, RSUs and ESPP shares 1,807 2,396 — — Weighted-average number of ordinary shares used in computing net income (loss) per share - diluted 63,996 62,537 61,822 59,707 Net income (loss) per share applicable to ordinary shareholders: Basic $ 0.00 $ 0.01 $ (0.08 ) $ (0.08 ) Diluted $ 0.00 $ 0.01 $ (0.08 ) $ (0.08 ) |
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 as their effect would have been anti-dilutive for the periods presented (in thousands): Three months ended December 31, Nine months ended December 31, 2019 2018 2019 2018 Share options outstanding 3,750 792 6,450 6,870 Unvested RSUs 138 — 1,247 438 ESPP shares — 69 165 138 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
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: Nine months ended December 31, 2019 2018 Expected term (in years) 6.1 6.1 Risk-free interest rate 2.2 % 2.8 % Expected volatility 42.8 % 41.4 % Expected dividend yield — % — % Estimated grant date fair value per ordinary share $ 46.18 $ 36.79 |
Schedule of Share-Based Compensation, Stock Options, Activity | Share option activity under the 2015 Plan and the Historical Plans for the nine months ended December 31, 2019 was as follows: Number of Awards Weighted Average Exercise Price (1) Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of March 31, 2019 6,208,964 $ 23.47 7.58 $ 148,313 Options granted 1,845,018 $ 46.18 Options exercised (1,077,617 ) $ 13.76 Options forfeited and cancelled (526,066 ) $ 34.32 Outstanding as of December 31, 2019 6,450,299 $ 30.71 7.73 $ 87,453 Exercisable as of December 31, 2019 2,487,130 $ 19.20 6.34 $ 60,171 (1) Certain of the Company’s option grants have an exercise price denominated in British pounds. The weighted-average exercise price at the end of each reporting period was translated into U.S. dollars using the exchange rate at the end of the period. The weighted-average exercise price for the options granted, exercised, forfeited and cancelled was translated into U.S. dollars using the exchange rate at the applicable date of grant, exercise, forfeiture or cancellation, as appropriate. |
Schedule of Share-Based Compensation, RSUs, Activity | RSU activity under the 2015 Plan for the nine months ended December 31, 2019 was as follows: Number of Awards Weighted Average Grant Date Fair Value Intrinsic Value Unvested RSUs as of March 31, 2019 549,853 $ 37.15 $ 26,036 RSUs granted 929,640 $ 46.00 RSUs vested (126,443 ) $ 37.05 RSUs forfeited (105,815 ) $ 44.28 Unvested RSUs as of December 31, 2019 1,247,235 $ 43.15 $ 54,105 |
Share-Based Compensation Expense Recognized in Statements of Operations | Share-based compensation expense recognized under the 2015 Plan, Historical Plans and the ESPP in the accompanying condensed consolidated statements of operations was as follows: Three months ended December 31, Nine months ended December 31, 2019 2018 2019 2018 Cost of revenue $ 851 $ 433 $ 2,544 $ 1,257 Research and development 2,788 1,560 8,030 4,461 Sales and marketing 2,856 2,045 10,169 5,841 General and administrative 3,206 3,158 8,930 6,927 Total share-based compensation expense $ 9,701 $ 7,196 $ 29,673 $ 18,486 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Final Purchase Price Allocation | The following table summarizes the final purchase price allocation: Purchase consideration: Total cash paid, net of acquired cash $ 85,258 Cash and cash equivalents acquired 10,410 Fair value of previously held asset 828 Total purchase price consideration $ 96,496 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 10,410 Prepaid expenses and other current assets 76 Intangible assets 16,964 Goodwill 74,469 Total assets acquired 101,919 Accounts payable (18 ) Accrued expenses and other current liabilities (2,345 ) Deferred revenue (663 ) Other non-current liabilities (2,397 ) Total fair value of assets acquired and liabilities assumed $ 96,496 |
Summary of Estimated Fair Values and Useful Lives of Identifiable Intangible | The following table presents the estimated fair values and useful lives of the identifiable intangible assets acquired: Amount Estimated Useful Life (in years) Developed technology $ 16,689 10 Customer relationships 235 7 Trade names 40 1 Total identifiable intangible assets $ 16,964 |
Summary of Pro Forma Financial Information (unaudited) | Accordingly, these unaudited pro forma results are presented for informational purposes on ly and are not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred as of April 1, 2017, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amounts): Three Nine months ended December 31, 2018 2018 Revenue $ 87,611 $ 248,631 Net income (loss) 482 (5,803 ) Basic net income (loss) per share $ 0.01 $ (0.10 ) Diluted net income (loss) per share $ 0.01 $ (0.10 ) Weighted average number of ordinary shares outstanding Basic 60,141 59,707 Diluted 62,537 59,707 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Balance | The following is a rollforward of the Company’s goodwill balance: Goodwill Balance as of March 31, 2019 $ 107,575 Goodwill acquired 19,032 Effect of foreign exchange rates 4,070 Balance as of December 31, 2019 $ 130,677 |
Schedule of Purchased Intangible Assets | Purchased intangible assets consist of the following: Weighted- Average December 31, 2019 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 8 $ 27,676 $ (3,752 ) $ 23,924 Customer relationships 5 719 (131 ) 588 Trade names < 1 58 (58 ) — Capitalized software and other (1) (2) 3 17,360 (7,073 ) 10,287 $ 45,813 $ (11,014 ) $ 34,799 Weighted- Average March 31, 2019 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 9 $ 23,577 $ (1,707 ) $ 21,870 Customer relationships 6 455 (73 ) 382 Trade names 1 56 (34 ) 22 Capitalized software (1) 3 12,431 (4,082 ) 8,349 $ 36,519 $ (5,896 ) $ 30,623 (1) As of December 31, 2019 and March 31, 2019, the net carrying value of capitalized software and other includes $1.0 million and $0.5 million, respectively, of costs capitalized related to video production costs. (2) As of December 31, 2019, the net carrying value of capitalized software and other includes $0.3 million of costs capitalized related to IP addresses. |
Schedule of Future Estimated Amortization Expense of Acquired Intangible Assets | Future estimated amortization expense of intangible assets as of December 31, 2019, is as follows: Purchased Intangible Assets Capitalized Software Remainder of 2020 $ 783 $ 1,231 2021 3,132 4,140 2022 3,132 2,760 2023 3,132 1,670 2024 3,074 308 Thereafter 11,259 178 Total $ 24,512 $ 10,287 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Principal Payment Obligations | Future minimum principal payment obligations under the Term Loan are as follows: Year Ending March 31, Debt Remainder of 2020 $ 1,250 2021 6,875 2022 9,375 2023 10,000 2024 67,500 Total minimum debt payments 95,000 Less: Debt issuance costs (997 ) Less: Current portion of long-term debt (5,947 ) Long-term debt $ 88,056 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31, Nine months ended December 31, 2019 2018 2019 2018 Revenue: United States $ 56,214 $ 43,973 $ 160,442 $ 123,041 United Kingdom 32,063 26,399 90,578 76,069 South Africa 13,335 11,611 38,560 34,247 Other 8,546 5,628 23,166 14,827 Total revenue $ 110,158 $ 87,611 $ 312,746 $ 248,184 |
Summary of Property and Equipment, Net by Geographic Location | Property and equipment, net, by geographic location consists of the following: As of December 31, As of March 31, 2019 2019 United States (1) $ 38,618 $ 62,455 United Kingdom 30,554 17,402 South Africa 8,395 6,170 Australia 3,515 3,481 Other 4,971 4,694 Total $ 86,053 $ 94,202 (1) Includes construction costs capitalized under financing lease obligations related to the Company’s U.S. build-to-suit facility of $41.8 million as of March 31, 2019. In April 2019, the Company derecognized the U.S. build-to-suit facility upon adoption of ASU 2016-02. Refer to Note 6 for further information |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | ||
Revenue recognized included in deferred revenue | $ 73.1 | $ 143.5 |
Contracted revenue not yet recognized | $ 97.4 | $ 97.4 |
Contracted revenue not yet recognized, expected timing of satisfaction, explanation | The Company expects 54% 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. |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Additional Information (Detail 1) | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, percentage | 54.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, percentage | 44.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Concentration of Credit Risk _2
Concentration of Credit Risk and Off-Balance Sheet Risk - Additional Information (Detail) - Customer | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Risks And Uncertainties [Abstract] | |||||
Number of customers representing more than 10% of accounts receivable | 0 | 0 | 0 | ||
Number of customers representing more than 10% of revenue | 0 | 0 | 0 | 0 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |||||
Realized gains or losses on investments | $ 0 | $ 0 | $ 0 | $ 0 | |
Investments hold in unrealized loss position for less than twelve months | $ 0 | $ 0 | $ 10,000,000 |
Cash, Cash Equivalents and In_4
Cash, Cash Equivalents and Investments - Schedule of Cash, Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents due in 90 days or less, Cost | $ 189,863 | $ 137,576 |
Cash and cash equivalents due in 90 days or less, Estimated fair value | 189,863 | 137,576 |
Investments, Cost | 35,913 | |
Investments, Gross unrealized gains | 37 | |
Investments, Gross unrealized losses | (9) | |
Investments, Estimated fair value | 35,941 | |
Total cash, cash equivalents and investments, Amortized Cost | 189,863 | 173,489 |
Total cash, cash equivalents and investments, Gross unrealized gains | 37 | |
Total cash, cash equivalents and investments, Gross unrealized Losses | (9) | |
Total cash, cash equivalents and investments, Estimated fair value | $ 189,863 | 173,517 |
U.S. Treasury Securities Due in One Year or Less [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Investments, Cost | 1,993 | |
Investments, Gross unrealized gains | 1 | |
Investments, Estimated fair value | 1,994 | |
Non-U.S. Government Securities Due in One Year or Less [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Investments, Cost | 7,969 | |
Investments, Gross unrealized gains | 12 | |
Investments, Estimated fair value | 7,981 | |
Corporate Securities Due in One Year or Less [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Investments, Cost | 25,951 | |
Investments, Gross unrealized gains | 24 | |
Investments, Gross unrealized losses | (9) | |
Investments, Estimated fair value | $ 25,966 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a recurring basis | $ 14,350,000 | $ 44,289,000 |
Fair Value, Measurements, Recurring [Member] | 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 |
Strategic Investments [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Equity securities without readily determinable fair value | 3,000,000 | |
Adjustments to carrying value of strategic investment from impairments | $ 0 |
Fair Value of Financial Instr_4
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 | Dec. 31, 2019 | Mar. 31, 2019 |
Assets: | ||
Total assets | $ 14,350 | $ 44,289 |
Money Market Funds [Member] | ||
Assets: | ||
Total assets | 14,350 | 8,348 |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Total assets | 1,994 | |
Non-U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 7,981 | |
Corporate Securities [Member] | ||
Assets: | ||
Total assets | 25,966 | |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) [Member] | ||
Assets: | ||
Total assets | 14,350 | 8,348 |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Total assets | $ 14,350 | 8,348 |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | ||
Assets: | ||
Total assets | 35,941 | |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Total assets | 1,994 | |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | Non-U.S. Government Securities [Member] | ||
Assets: | ||
Total assets | 7,981 | |
Significant Other Observable Inputs (Level 2 Inputs) [Member] | Corporate Securities [Member] | ||
Assets: | ||
Total assets | $ 25,966 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2019 | Mar. 31, 2019 | |
Lessee Lease Description [Line Items] | ||||||
Operating and finance leases, existence of option to extend [true false] | true | |||||
Operating and finance leases, option to extend, description | some of which include options to extend the leases for up to 10 years. | |||||
Operating lease right-of-use assets | $ 125,076,000 | $ 125,076,000 | ||||
Operating lease liabilities | 145,432,000 | $ 145,432,000 | ||||
Operating or finance lease, lease not yet commenced, description | the Company had no additional operating or finance leases that have not yet commenced. | |||||
Finance lease, lease not yet commenced, value | 0 | $ 0 | ||||
Operating lease, lease not yet commenced, value | 0 | 0 | ||||
Rent expense | 3,900,000 | $ 1,100,000 | $ 11,800,000 | $ 3,500,000 | ||
Depreciation and amortization related to property and equipment acquired under capital leases | $ 300,000 | $ 900,000 | ||||
Computer Equipment [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Property and equipment acquired under capital leases | $ 4,800,000 | |||||
Property and equipment acquired under capital leases net of accumulated depreciation and amortization | $ 2,200,000 | |||||
Minimum [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating and finance leases, remaining lease term | 1 year | |||||
Maximum [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating and finance leases, remaining lease term | 10 years | |||||
Operating and finance leases, renewal term | 10 years | |||||
ASU 2016-02 [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease right-of-use assets | $ 141,280,000 | |||||
Cumulative effect adjustment | $ 2,172,000 | $ 2,172,000 | 2,200,000 | |||
ASU 2016-02 [Member] | Adjustments [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease right-of-use assets | 141,280,000 | |||||
Operating lease liabilities | $ 154,700,000 |
Leases - Schedule of Impact of
Leases - Schedule of Impact of Adoption of ASC 842 (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Assets | |||
Prepaid expenses and other current assets | $ 14,119 | $ 25,871 | |
Property and equipment, net | 86,053 | 94,202 | |
Operating lease right-of-use assets | 125,076 | ||
Other assets | 7,638 | 5,156 | |
Liabilities | |||
Accrued expenses and other current liabilities | 40,253 | 44,309 | |
Current portion of operating lease liabilities | 29,873 | ||
Construction financing lease obligations | 36,650 | ||
Operating lease liabilities | 115,559 | ||
Other non-current liabilities | 3,771 | 15,581 | |
Shareholders' equity | |||
Accumulated deficit | $ (86,185) | $ (83,632) | |
ASU 2016-02 [Member] | |||
Assets | |||
Prepaid expenses and other current assets | $ 24,932 | ||
Property and equipment, net | 63,239 | ||
Operating lease right-of-use assets | 141,280 | ||
Other assets | 2,590 | ||
Liabilities | |||
Accrued expenses and other current liabilities | 41,061 | ||
Current portion of operating lease liabilities | 27,611 | ||
Operating lease liabilities | 127,119 | ||
Other non-current liabilities | 5,389 | ||
Shareholders' equity | |||
Accumulated deficit | (81,460) | ||
ASU 2016-02 [Member] | Adjustments [Member] | |||
Assets | |||
Prepaid expenses and other current assets | (939) | ||
Property and equipment, net | (30,963) | ||
Operating lease right-of-use assets | 141,280 | ||
Other assets | (2,566) | ||
Liabilities | |||
Accrued expenses and other current liabilities | (3,248) | ||
Current portion of operating lease liabilities | 27,611 | ||
Construction financing lease obligations | (36,650) | ||
Operating lease liabilities | 127,119 | ||
Other non-current liabilities | (10,192) | ||
Shareholders' equity | |||
Accumulated deficit | $ 2,172 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Short-term lease cost | $ 70 | $ 211 |
Variable lease cost | 973 | 2,824 |
Operating lease cost | 9,779 | 28,714 |
Finance lease cost: | ||
Amortization of lease assets | 309 | 928 |
Interest on lease liabilities | 22 | 75 |
Total finance lease cost | $ 331 | $ 1,003 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflows from operating leases | $ 9,550 | $ 23,046 | |
Operating cash outflows from finance leases | 20 | 62 | |
Financing cash outflows from finance leases | $ 255 | $ 673 | $ 685 |
Leases - Schedule of Weighted-a
Leases - Schedule of Weighted-average Remaining Lease Term and Discount Rate (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating leases, Weighted-average remaining lease term | 6 years 7 months 17 days |
Finance leases, Weighted-average remaining lease term | 1 year 6 months 21 days |
Operating leases, Weighted-average discount rate | 4.72% |
Finance leases, Weighted-average discount rate | 4.83% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
Remainder of 2020 | $ 9,696 |
2021 | 34,940 |
2022 | 29,139 |
2023 | 18,182 |
2024 | 15,419 |
Thereafter | 62,523 |
Total lease payments | 169,899 |
Less: imputed interest | (24,467) |
Total lease liabilities | 145,432 |
Finance Leases | |
Remainder of 2020 | 184 |
2021 | 1,102 |
2022 | 326 |
Total lease payments | 1,612 |
Less: imputed interest | (59) |
Total lease liabilities | $ 1,553 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments for Capital Leases, Facility Operating Leases and Data Center Operating Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Capital Leases Operating Leases And Data Centers [Line Items] | |
Capital Leases, 2020 | $ 918 |
Capital Leases, 2021 | 1,102 |
Capital Leases, 2022 | 326 |
Total minimum lease payments | 2,346 |
Less: Amount representing interest | (121) |
Present value of capital lease obligations | 2,225 |
Less: Current portion | (844) |
Long-term portion of capital lease obligations | 1,381 |
Facility Leases, 2020 | 10,649 |
Facility Leases, 2021 | 15,186 |
Facility Leases, 2022 | 14,111 |
Facility Leases, 2023 | 13,825 |
Facility Leases, 2024 | 13,686 |
Facility Leases, Thereafter | 59,502 |
Total minimum lease payments | 126,959 |
Data Centers [Member] | |
Capital Leases Operating Leases And Data Centers [Line Items] | |
Data Centers, 2020 | 21,216 |
Data Centers, 2021 | 17,427 |
Data Centers, 2022 | 13,010 |
Data Centers, 2023 | 2,774 |
Data Centers, 2024 | 356 |
Total minimum lease payments | $ 54,783 |
Internal-use Software Costs - A
Internal-use Software Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Capitalized costs | $ 0 | $ 0 | $ 0 | $ 0 | |
Implementation Costs [Member] | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Net carrying value of implementation costs capitalized | $ 3,200,000 | $ 3,200,000 | $ 1,600,000 |
Net Income (Loss) Per Ordinar_3
Net Income (Loss) Per Ordinary Share - Schedule for Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 206 | $ 458 | $ (4,725) | $ (5,071) |
Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders - basic | 62,189 | 60,141 | 61,822 | 59,707 |
Dilutive effect of share equivalents resulting from share options, RSUs and ESPP shares | 1,807 | 2,396 | ||
Weighted-average number of ordinary shares used in computing net income (loss) per share - diluted | 63,996 | 62,537 | 61,822 | 59,707 |
Net income (loss) per share applicable to ordinary shareholders: | ||||
Basic | $ 0 | $ 0.01 | $ (0.08) | $ (0.08) |
Diluted | $ 0 | $ 0.01 | $ (0.08) | $ (0.08) |
Net Income (Loss) Per Ordinar_4
Net Income (Loss) Per Ordinary Share - Dilutive Ordinary Shares Excluded from Calculation of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Options [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 | 3,750 | 792 | 6,450 | 6,870 |
Unvested Restricted Share Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive ordinary share equivalents excluded from calculation of diluted weighted-average shares outstanding | 138 | 1,247 | 438 | |
ESPP Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive ordinary share equivalents excluded from calculation of diluted weighted-average shares outstanding | 69 | 165 | 138 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019USD ($)CompensationPlanshares | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)CompensationPlanInstallment$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans | CompensationPlan | 4 | 4 | ||
Weighted average per share fair value of options granted to employees | $ / shares | $ 20.50 | $ 16.32 | ||
Total intrinsic value of options exercised | $ 32,800 | |||
Proceeds from exercises of share-based awards | 14,800 | $ 10,100 | ||
Share-based compensation expense recognized | $ 9,701 | $ 7,196 | 29,673 | 18,486 |
Employee share option agreements, modification expense | 100 | 1,200 | 100 | 2,000 |
Service-Based Vesting Conditions [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense | 57,100 | $ 57,100 | ||
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 2 years 9 months 21 days | |||
Unvested Restricted Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense | $ 44,100 | $ 44,100 | ||
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 3 years 1 month 9 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 | 7,027,884 | 7,027,884 | ||
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 | 800,000 | 800,000 | ||
Authorized payroll deductions percentage | 10.00% | 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 | $ 500 | 400 | $ 1,400 | 900 |
Cash proceeds from shares purchase | $ 2,700 | $ 1,900 | $ 4,900 | $ 3,300 |
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 | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 2.20% | 2.80% |
Expected volatility | 42.80% | 41.40% |
Estimated grant date fair value per ordinary share | $ 46.18 | $ 36.79 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation, Stock Options, Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Awards, Beginning balance | 6,208,964 | |
Number of Awards, Options granted | 1,845,018 | |
Number of Awards, Options exercised | (1,077,617) | |
Number of Awards, Options forfeited and cancelled | (526,066) | |
Number of Awards, Ending balance | 6,450,299 | 6,208,964 |
Number of Awards, Exercisable | 2,487,130 | |
Weighted Average Exercise Price, Beginning balance | $ 23.47 | |
Weighted Average Exercise Price, Options granted | 46.18 | |
Weighted Average Exercise Price, Options exercised | 13.76 | |
Weighted Average Exercise Price, Options forfeited and cancelled | 34.32 | |
Weighted Average Exercise Price, Ending balance | 30.71 | $ 23.47 |
Weighted Average Exercise Price Exercisable | $ 19.20 | |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 8 months 23 days | 7 years 6 months 29 days |
Weighted Average Remaining Contractual Term, Exercisable | 6 years 4 months 2 days | |
Aggregate Intrinsic Value, Outstanding | $ 87,453 | $ 148,313 |
Aggregate Intrinsic Value, Exercisable | $ 60,171 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Share-Based Compensation, RSUs, Activity (Detail) - Restricted Share Units (RSUs) [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Awards Unvested, RSUs Beginning balance | shares | 549,853 |
Number of Awards, RSUs granted | shares | 929,640 |
Number of Awards, RSUs vested | shares | (126,443) |
Number of Awards, RSUs forfeited | shares | (105,815) |
Number of Awards, Unvested RSUs, Ending balance | shares | 1,247,235 |
Weighted Average Grant Date Fair Value, Unvested RSUs, Beginning balance | $ / shares | $ 37.15 |
Weighted Average Grant Date Fair Value, RSUs granted | $ / shares | 46 |
Weighted Average Grant Date Fair Value, RSUs vested | $ / shares | 37.05 |
Weighted Average Grant Date Fair Value, RSUs forfeited | $ / shares | 44.28 |
Weighted Average Grant Date Fair Value, Unvested RSUs, Ending balance | $ / shares | $ 43.15 |
Intrinsic Value, Unvested RSUs, Beginning balance | $ | $ 26,036 |
Intrinsic Value, Unvested RSUs, Ending Balance | $ | $ 54,105 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense Recognized in Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | $ 9,701 | $ 7,196 | $ 29,673 | $ 18,486 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | 851 | 433 | 2,544 | 1,257 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | 2,788 | 1,560 | 8,030 | 4,461 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | 2,856 | 2,045 | 10,169 | 5,841 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | $ 3,206 | $ 3,158 | $ 8,930 | $ 6,927 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 13, 2019 | Jan. 25, 2019 | Jul. 31, 2018 | Jul. 09, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Cash payment, net | $ 21,130 | $ 108,913 | |||||
Goodwill | $ 130,677 | $ 107,575 | |||||
Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Useful Life (in years) | 8 years | 9 years | |||||
Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Useful Life (in years) | 5 years | 6 years | |||||
DMARC Analyzer B.V. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, effective date of acquisition | Nov. 13, 2019 | ||||||
Cash payment, net | $ 21,100 | ||||||
Cash acquired amount | 400 | ||||||
Estimated fair values of identifiable intangible assets, amount | 3,400 | ||||||
Goodwill | 19,000 | ||||||
DMARC Analyzer B.V. [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated fair values of identifiable intangible assets, amount | $ 3,200 | ||||||
Estimated Useful Life (in years) | 7 years 6 months | ||||||
DMARC Analyzer B.V. [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated fair values of identifiable intangible assets, amount | $ 200 | ||||||
Estimated Useful Life (in years) | 5 years 6 months | ||||||
Solebit Labs Ltd. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment, net | $ 85,258 | ||||||
Cash acquired amount | 10,410 | ||||||
Estimated fair values of identifiable intangible assets, amount | 16,964 | ||||||
Goodwill | $ 74,469 | ||||||
Business acquisition, agreement date of acquisition | Jul. 31, 2018 | ||||||
Purchase price | $ 96,496 | ||||||
Cash payment | 95,700 | ||||||
Solebit Labs Ltd. [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated fair values of identifiable intangible assets, amount | $ 16,689 | ||||||
Estimated Useful Life (in years) | 10 years | ||||||
Solebit Labs Ltd. [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated fair values of identifiable intangible assets, amount | $ 235 | ||||||
Estimated Useful Life (in years) | 7 years | ||||||
Ataata [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, effective date of acquisition | Jul. 9, 2018 | ||||||
Cash payment, net | $ 23,200 | ||||||
Cash acquired amount | 1,900 | ||||||
Estimated fair values of identifiable intangible assets, amount | 1,500 | ||||||
Goodwill | 22,600 | ||||||
Ataata [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated fair values of identifiable intangible assets, amount | $ 1,400 | ||||||
Estimated Useful Life (in years) | 10 years | ||||||
Ataata [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated fair values of identifiable intangible assets, amount | $ 100 | ||||||
Estimated Useful Life (in years) | 6 years | ||||||
Simply Migrate [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, effective date of acquisition | Jan. 25, 2019 | ||||||
Cash payment, net | $ 100 | ||||||
Estimated fair values of identifiable intangible assets, amount | 3,300 | ||||||
Goodwill | 4,300 | ||||||
Cash payment | $ 7,200 | ||||||
Simply Migrate [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Useful Life (in years) | 8 years |
Acquisitions - Summary of Final
Acquisitions - Summary of Final Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Purchase consideration: | ||||
Total cash paid, net of acquired cash | $ 21,130 | $ 108,913 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Goodwill | $ 130,677 | $ 107,575 | ||
Solebit Labs Ltd. [Member] | ||||
Purchase consideration: | ||||
Total cash paid, net of acquired cash | $ 85,258 | |||
Cash and cash equivalents acquired | 10,410 | |||
Fair value of previously held asset | 828 | |||
Total purchase price consideration | 96,496 | |||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 10,410 | |||
Prepaid expenses and other current assets | 76 | |||
Intangible assets | 16,964 | |||
Goodwill | 74,469 | |||
Total assets acquired | 101,919 | |||
Accounts payable | (18) | |||
Accrued expenses and other current liabilities | (2,345) | |||
Deferred revenue | (663) | |||
Other non-current liabilities | (2,397) | |||
Total fair value of assets acquired and liabilities assumed | $ 96,496 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values and Useful Lives of Identifiable Intangible (Detail) - USD ($) $ in Thousands | Jul. 31, 2018 | Dec. 31, 2019 | Mar. 31, 2019 |
Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 8 years | 9 years | |
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 5 years | 6 years | |
Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 1 year | ||
Solebit Labs Ltd. [Member] | |||
Business Acquisition [Line Items] | |||
Estimated fair values of identifiable intangible assets, Amount | $ 16,964 | ||
Solebit Labs Ltd. [Member] | Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Estimated fair values of identifiable intangible assets, Amount | $ 16,689 | ||
Estimated Useful Life (in years) | 10 years | ||
Solebit Labs Ltd. [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Estimated fair values of identifiable intangible assets, Amount | $ 235 | ||
Estimated Useful Life (in years) | 7 years | ||
Solebit Labs Ltd. [Member] | Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Estimated fair values of identifiable intangible assets, Amount | $ 40 | ||
Estimated Useful Life (in years) | 1 year |
Acquisitions - Summary of Pro F
Acquisitions - Summary of Pro Forma Financial Information (unaudited) (Detail) - Solebit Labs Ltd. [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 87,611 | $ 248,631 |
Net income (loss) | $ 482 | $ (5,803) |
Basic net income (loss) per share | $ 0.01 | $ (0.10) |
Diluted net income (loss) per share | $ 0.01 | $ (0.10) |
Weighted average number of ordinary shares outstanding | ||
Basic | 60,141 | 59,707 |
Diluted | 62,537 | 59,707 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill Balance (Detail) $ in Thousands | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill Roll Forward | |
Beginning balance | $ 107,575 |
Goodwill acquired | 19,032 |
Effect of foreign exchange rates | 4,070 |
Ending balance | $ 130,677 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Value | $ 45,813 | $ 36,519 |
Accumulated Amortization | (11,014) | (5,896) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 34,799 | $ 30,623 |
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 | $ 27,676 | $ 23,577 |
Accumulated Amortization | (3,752) | (1,707) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 23,924 | $ 21,870 |
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 | $ 719 | $ 455 |
Accumulated Amortization | (131) | (73) |
Finite-Lived Intangible Assets, Net Carrying Value | 588 | $ 382 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 1 year | |
Finite-Lived Intangible Assets, Gross Carrying Value | 58 | $ 56 |
Accumulated Amortization | $ (58) | (34) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 22 | |
Trade Names [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 1 year | |
Capitalized Software and Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 3 years | |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 17,360 | |
Accumulated Amortization | (7,073) | |
Finite-Lived Intangible Assets, Net Carrying Value | 10,287 | |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 3 years | |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 12,431 | |
Accumulated Amortization | (4,082) | |
Finite-Lived Intangible Assets, Net Carrying Value | $ 10,287 | $ 8,349 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Video Production Costs [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Capitalized software and other cost | $ 1 | $ 0.5 |
IP Addresses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Capitalized software and other cost | $ 0.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1.9 | $ 1.3 | $ 4.9 | $ 3.3 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Expense of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net Carrying Value | $ 34,799 | $ 30,623 |
Purchased Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remainder of 2020 | 783 | |
2021 | 3,132 | |
2022 | 3,132 | |
2023 | 3,132 | |
2024 | 3,074 | |
Thereafter | 11,259 | |
Finite-Lived Intangible Assets, Net Carrying Value | 24,512 | |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remainder of 2020 | 1,231 | |
2021 | 4,140 | |
2022 | 2,760 | |
2023 | 1,670 | |
2024 | 308 | |
Thereafter | 178 | |
Finite-Lived Intangible Assets, Net Carrying Value | $ 10,287 | $ 8,349 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jul. 23, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Senior Secured Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 95,000,000 | $ 95,000,000 | ||||
Debt issuance costs | 997,000 | 997,000 | $ 1,300,000 | |||
Senior Secured Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | 0 | 0 | ||||
Amount available under credit facility | 48,000,000 | 48,000,000 | ||||
Interest expense | 1,000,000 | $ 1,100,000 | 3,100,000 | $ 1,900,000 | ||
Senior Secured Revolving Credit Facility [Member] | Other Assets [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | 500,000 | 500,000 | $ 600,000 | |||
Senior Secured Revolving Credit Facility [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 2,000,000 | $ 2,000,000 | ||||
Credit Agreement with Certain Lenders [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility term | 5 years | |||||
Credit facility maturity date | Jul. 23, 2023 | |||||
Effective Interest rate | 3.47% | 3.47% | 4.12% | |||
Credit Agreement with Certain Lenders [Member] | Senior Secured Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility amount | $ 100,000,000 | |||||
Credit Agreement with Certain Lenders [Member] | Senior Secured Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility amount | $ 50,000,000 |
Debt - Schedule of Future Minim
Debt - Schedule of Future Minimum Principal Payment Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Less: Current portion of long-term debt | $ (5,947) | $ (4,059) |
Long-term debt | 88,056 | 92,797 |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Remainder of 2020 | 1,250 | |
2021 | 6,875 | |
2022 | 9,375 | |
2023 | 10,000 | |
2024 | 67,500 | |
Total minimum debt payments | 95,000 | |
Less: Debt issuance costs | (997) | $ (1,300) |
Less: Current portion of long-term debt | (5,947) | |
Long-term debt | $ 88,056 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Commitments And Contingencies [Line Items] | ||||
Incremental expense | $ 2,350 | $ 350 | $ 1,000 | |
Patented Technology [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Aggregate payment of litigation settlement | $ 5,900 | |||
Remaining amortization expense | $ 2,200 | |||
Weighted-Average Remaining Useful Life (in years) | 3 years 6 months |
Segment and Geographic Inform_3
Segment and Geographic Information - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | $ 110,158 | $ 87,611 | $ 312,746 | $ 248,184 |
United States [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 56,214 | 43,973 | 160,442 | 123,041 |
United Kingdom [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 32,063 | 26,399 | 90,578 | 76,069 |
South Africa [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 13,335 | 11,611 | 38,560 | 34,247 |
Other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | $ 8,546 | $ 5,628 | $ 23,166 | $ 14,827 |
Segment and Geographic Inform_4
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 86,053 | $ 94,202 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 38,618 | 62,455 |
United Kingdom [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 30,554 | 17,402 |
South Africa [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 8,395 | 6,170 |
Australia [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 3,515 | 3,481 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 4,971 | $ 4,694 |
Segment and Geographic Inform_5
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Parenthetical) (Detail) $ in Millions | Mar. 31, 2019USD ($) |
United States [Member] | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Construction costs capitalized related to build-to-suit facility | $ 41.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 951,000 | $ 511,000 | $ 1,299,000 | $ 1,991,000 |
Income (loss) before income taxes | 1,157,000 | 969,000 | (3,426,000) | (3,080,000) |
Excess tax benefits on share option exercises | 1,600,000 | $ 1,900,000 | 3,300,000 | 1,900,000 |
Discrete tax benefit | $ 400,000 | |||
Liabilities for uncertain tax positions | 0 | 0 | ||
Liabilities for uncertain tax positions, if recognized, that would impact effective tax rate | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Jan. 03, 2020USD ($) |
Segasec Labs Ltd [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Preliminary purchase price, net of cash acquired | $ 27.1 |