Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | May 20, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 2,754 | ||
Entity Common Stock, Shares Outstanding | 65,169,227 | ||
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 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement relating to the 2021 Annual General Meeting of Shareholders of Mimecast Limited, expected to be held on October 6, 2021, are incorporated by reference into Part III of this Annual Report on Form 10-K. The Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended March 31, 2021. Except with respect to information specifically incorporated by reference into this Annual Report on Form 10-K, the Definitive Proxy Statement is not deemed to be filed as part of this Annual Report on Form 10-K . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 292,949 | $ 173,958 |
Accounts receivable, net | 114,280 | 97,659 |
Deferred contract costs, net | 16,165 | 11,133 |
Prepaid expenses and other current assets | 20,031 | 16,145 |
Total current assets | 443,425 | 298,895 |
Property and equipment, net | 92,891 | 85,178 |
Operating lease right-of-use assets | 128,063 | 116,564 |
Intangible assets, net | 43,193 | 38,394 |
Goodwill | 173,952 | 150,525 |
Deferred contract costs, net of current portion | 50,086 | 36,664 |
Other assets | 3,097 | 3,614 |
Total assets | 934,707 | 729,834 |
Current liabilities | ||
Accounts payable | 10,487 | 14,907 |
Accrued expenses and other current liabilities | 54,676 | 41,607 |
Deferred revenue | 237,749 | 194,151 |
Current portion of finance lease obligations | 323 | 1,058 |
Current portion of operating lease liabilities | 33,447 | 30,379 |
Current portion of long-term debt | 9,090 | 6,573 |
Total current liabilities | 345,772 | 288,675 |
Deferred revenue, net of current portion | 12,936 | 12,816 |
Long-term finance lease obligations | 323 | |
Operating lease liabilities | 112,316 | 105,321 |
Long-term debt | 94,671 | 86,258 |
Other non-current liabilities | 8,143 | 4,386 |
Total liabilities | 573,838 | 497,779 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity | ||
Ordinary shares, $0.012 par value, 300,000,000 shares authorized; 64,562,222 and 62,791,691 shares issued and outstanding as of March 31, 2021 and 2020, respectively | 775 | 754 |
Additional paid-in capital | 408,249 | 325,808 |
Accumulated deficit | (53,915) | (83,660) |
Accumulated other comprehensive income (loss) | 5,760 | (10,847) |
Total shareholders' equity | 360,869 | 232,055 |
Total liabilities and shareholders' equity | $ 934,707 | $ 729,834 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
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 | 64,562,222 | 62,791,691 |
Ordinary shares, outstanding | 64,562,222 | 62,791,691 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 501,399 | $ 426,963 | $ 340,377 |
Cost of revenue | 121,709 | 109,382 | 90,874 |
Gross profit | 379,690 | 317,581 | 249,503 |
Operating expenses | |||
Research and development | 97,498 | 80,790 | 57,939 |
Sales and marketing | 179,315 | 169,179 | 139,194 |
General and administrative | 68,354 | 65,314 | 53,759 |
Restructuring | 3,264 | (170) | |
Total operating expenses | 348,431 | 315,283 | 250,722 |
Income (loss) from operations | 31,259 | 2,298 | (1,219) |
Other income (expense) | |||
Interest income | 760 | 3,446 | 2,515 |
Interest expense | (2,804) | (4,507) | (5,940) |
Foreign exchange income (expense) and other, net | 2,226 | (1,078) | (356) |
Total other income (expense), net | 182 | (2,139) | (3,781) |
Income (loss) before income taxes | 31,441 | 159 | (5,000) |
Provision for income taxes | 1,696 | 2,359 | 2,001 |
Net income (loss) | $ 29,745 | $ (2,200) | $ (7,001) |
Net income (loss) per ordinary share | |||
Basic | $ 0.47 | $ (0.04) | $ (0.12) |
Diluted | $ 0.45 | $ (0.04) | $ (0.12) |
Weighted-average number of ordinary shares outstanding | |||
Basic | 63,739 | 62,024 | 59,960 |
Diluted | 65,631 | 62,024 | 59,960 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 29,745 | $ (2,200) | $ (7,001) |
Other comprehensive income (loss): | |||
Net unrealized (losses) gains on investments, net of tax | (28) | 117 | |
Change in foreign currency translation adjustment | 16,607 | (3,964) | (1,625) |
Total other comprehensive income (loss) | 16,607 | (3,992) | (1,508) |
Comprehensive income (loss) | $ 46,352 | $ (6,192) | $ (8,509) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Beginning balance at Mar. 31, 2018 | $ 101,692 | $ 707 | $ 212,839 | $ (106,507) | $ (5,347) | |||
Beginning balance (ASU 2014-09 [Member]) at Mar. 31, 2018 | [1] | $ 29,876 | $ 29,876 | |||||
Beginning balance, Shares at Mar. 31, 2018 | 58,950,000 | |||||||
Net income (loss) | (7,001) | (7,001) | ||||||
Foreign currency translation adjustment | (1,625) | (1,625) | ||||||
Unrealized gain (losses) on investments | 117 | 117 | ||||||
Issuance of ordinary shares upon exercise of share options | 21,353 | $ 25 | 21,328 | |||||
Issuance of ordinary shares upon exercise of share options, Shares | 2,055,000 | |||||||
Share-based compensation | 25,929 | 25,929 | ||||||
Employee share purchase plan (ESPP) purchases | 3,633 | $ 2 | 3,631 | |||||
Employee share purchase plan (ESPP) purchase, Shares | 138,000 | |||||||
Tax withholding on ESPP purchases and vesting of RSUs | (339) | (339) | ||||||
Tax withholding on ESPP purchases and vesting of RSUs, Shares | (9,000) | |||||||
Vesting of restricted share units (RSUs), Shares | 24,000 | |||||||
Ending balance at Mar. 31, 2019 | 173,635 | $ 734 | 263,388 | (83,632) | (6,855) | |||
Ending balance (ASU 2016-02 [Member]) at Mar. 31, 2019 | [2] | $ 2,172 | $ 2,172 | |||||
Ending balance, Shares at Mar. 31, 2019 | 61,158,000 | |||||||
Net income (loss) | (2,200) | (2,200) | ||||||
Foreign currency translation adjustment | (3,964) | (3,964) | ||||||
Unrealized gain (losses) on investments | (28) | (28) | ||||||
Issuance of ordinary shares upon exercise of share options | 20,144 | $ 16 | 20,128 | |||||
Issuance of ordinary shares upon exercise of share options, Shares | 1,360,000 | |||||||
Share-based compensation | 39,488 | 39,488 | ||||||
Employee share purchase plan (ESPP) purchases | 5,284 | $ 2 | 5,282 | |||||
Employee share purchase plan (ESPP) purchase, Shares | 165,000 | |||||||
Tax withholding on ESPP purchases and vesting of RSUs | (2,476) | (2,476) | ||||||
Tax withholding on ESPP purchases and vesting of RSUs, Shares | (52,000) | |||||||
Vesting of restricted share units (RSUs) | $ 2 | (2) | ||||||
Vesting of restricted share units (RSUs), Shares | 161,000 | |||||||
Ending balance at Mar. 31, 2020 | $ 232,055 | $ 754 | 325,808 | (83,660) | (10,847) | |||
Ending balance, Shares at Mar. 31, 2020 | 62,791,691 | 62,792,000 | ||||||
Net income (loss) | $ 29,745 | 29,745 | ||||||
Foreign currency translation adjustment | 16,607 | 16,607 | ||||||
Issuance of ordinary shares upon exercise of share options | $ 27,629 | $ 16 | 27,613 | |||||
Issuance of ordinary shares upon exercise of share options, Shares | 1,324,659 | 1,325,000 | ||||||
Share-based compensation | $ 53,749 | 53,749 | ||||||
Employee share purchase plan (ESPP) purchases | 6,416 | $ 2 | 6,414 | |||||
Employee share purchase plan (ESPP) purchase, Shares | 178,000 | |||||||
Tax withholding on ESPP purchases and vesting of RSUs | (5,332) | $ (2) | (5,330) | |||||
Tax withholding on ESPP purchases and vesting of RSUs, Shares | (135,000) | |||||||
Vesting of restricted share units (RSUs) | $ 5 | (5) | ||||||
Vesting of restricted share units (RSUs), Shares | 402,000 | |||||||
Ending balance at Mar. 31, 2021 | $ 360,869 | $ 775 | $ 408,249 | $ (53,915) | $ 5,760 | |||
Ending balance, Shares at Mar. 31, 2021 | 64,562,222 | 64,562,000 | ||||||
[1] | ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 | |||||||
[2] | ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02 or ASC 842) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | |||
Net income (loss) | $ 29,745 | $ (2,200) | $ (7,001) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 38,098 | 32,245 | 29,953 |
Share-based compensation expense | 53,648 | 39,544 | 25,954 |
Amortization of deferred contract costs | 13,269 | 9,587 | 6,390 |
Amortization of debt issuance costs | 455 | 501 | 336 |
Amortization of operating lease right-of-use assets | 30,380 | 31,940 | |
Deferred income tax benefit | (840) | (580) | (1,492) |
Other non-cash items | 14 | (54) | (400) |
Unrealized currency (gains) losses on foreign denominated transactions | (2,399) | 1,567 | 880 |
Changes in assets and liabilities: | |||
Accounts receivable | (10,538) | (20,467) | (18,771) |
Prepaid expenses and other current assets | (2,567) | 8,808 | (2,046) |
Deferred contract costs | (28,730) | (22,751) | (20,219) |
Other assets | 663 | (1,146) | (1,087) |
Accounts payable | (3,669) | 4,215 | 2,093 |
Deferred revenue | 30,691 | 38,457 | 45,901 |
Operating lease liabilities | (33,274) | (25,941) | |
Accrued expenses and other liabilities | 12,088 | (3,187) | 5,744 |
Net cash provided by operating activities | 127,034 | 90,538 | 66,235 |
Investing activities | |||
Purchases of property, equipment and capitalized software | (38,597) | (53,234) | (28,795) |
Purchases of strategic investments | (3,025) | ||
Purchases of investments | (42,856) | ||
Maturities of investments | 36,000 | 66,000 | |
Payments for acquisitions, net of cash acquired | (16,970) | (45,280) | (115,673) |
Net cash used in investing activities | (55,567) | (65,539) | (121,324) |
Financing activities | |||
Proceeds from issuance of ordinary shares | 34,045 | 25,428 | 24,986 |
Withholding taxes related to net share settlement of ESPP purchases and vesting of RSUs | (5,332) | (2,476) | (298) |
Payments on debt | (6,875) | (4,375) | (1,875) |
Payments on finance lease obligations | (1,057) | (844) | (1,275) |
Payments on construction financing lease obligations | (2,301) | ||
Proceeds from long-term debt including revolving credit facilities | 17,500 | 97,748 | |
Net cash provided by financing activities | 38,281 | 17,733 | 116,985 |
Effect of foreign exchange rates on cash | 9,243 | (6,350) | (2,659) |
Net increase in cash and cash equivalents | 118,991 | 36,382 | 59,237 |
Cash and cash equivalents at beginning of period | 173,958 | 137,576 | 78,339 |
Cash and cash equivalents at end of period | 292,949 | 173,958 | 137,576 |
Supplemental disclosure of cash flow information | |||
Cash paid during the period for interest | 2,603 | 4,114 | 4,598 |
Cash paid during the period for income taxes | 1,825 | 2,489 | 3,010 |
Supplemental disclosure of non-cash investing and financing activities | |||
Unpaid purchases of property, equipment and capitalized software | 11,317 | 13,232 | 7,634 |
Operating lease right-of-use assets exchanged for lease obligations | $ 32,234 | $ 13,982 | |
Construction costs capitalized under financing lease obligations | 27,903 | ||
Derecognition of building upon completion of construction period | (56,794) | ||
Withholding taxes payable upon RSU vesting | $ 41 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Mimecast Limited (Mimecast Jersey) is a public limited company organized under the laws of the Bailiwick of Jersey on July 28, 2015. On November 4, 2015, Mimecast Jersey changed its corporate structure whereby it became the holding company of Mimecast Limited (Mimecast UK), a private limited company incorporated in 2003 under the laws of England and Wales, and its wholly-owned subsidiaries by way of a share-for-share exchange in which the shareholders of Mimecast UK exchanged their shares in Mimecast UK for an identical number of shares of the same class in Mimecast Jersey. Upon the exchange, the historical consolidated financial statements of Mimecast UK became the historical consolidated financial statements of Mimecast Jersey. Mimecast Jersey and its subsidiaries (together, the Group, the Company, or Mimecast) is headquartered in London, England. The principal activity of the Group is the provision of cloud security and risk management services for email and corporate information. Delivered as a software-as-a-service (SaaS), Mimecast’s Email Security 3.0 offerings and Cyber Resilience Extension offerings include email security; email continuity and sync & recover; email archiving; awareness training; web security; DMARC analyzer; brand exploit protection; and threat intelligence and our API ecosystem The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, customer concentration, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the consolidated financial statements. The Company believes that a significant accounting policy is one that is both important to the portrayal of the Company’s financial condition and results, and requires management’s most difficult, subjective, or complex judgments, often as the result of the need to make estimates about the effect of matters that are inherently uncertain. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). The Company reclassified certain amounts within its consolidated statements of cash flows to conform to current period presentation. The reclassifications include $1.0 million from other assets to deferred income tax benefit for the year ended March 31, 2019 and $0.6 million and $0.5 million from accrued expenses and other liabilities to deferred income tax benefit for the years ended March 31, 2020 and 2019, respectively. These reclassifications had no impact on the Company’s previously reported results of operations or its balance sheets. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition, variable consideration, valuation at fair value of assets acquired or sold, including intangible asset s, goodwill, tangible assets, and liabilities assumed, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, 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. Due to the global COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of March 31, 2021. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Changes in estimates are recorded in the period in which they become known. Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. See Note 18. 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 consolidated statements of operations. As of March 31, 2021 and 2020, cash and cash equivalents of $292.9 million and $174.0 million, respectively, were carried at amortized cost, which approximates their market value. The Company did not hold any debt investments as of March 31, 2021 or 2020. When the Company holds debt investments classified as available-for-sale pursuant to ASC 320, Investments – Debt Securities, On April 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) and ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815 Derivatives and Hedging and Topic 825, Financial Instruments . Under these standards, t he Company reviews available-for-sale securities for impairment whenever the fair value of the security is less than its amortized cost . If impairment exists and the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, the Company will write down the amortized cost basis to its fair value at the reporting date, recognizing the difference as a loss within foreign exchange (expense) income and other, net in the consolidated statements of operations. If the Company does not intend to sell the security nor is it more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, the Company will determine if any portion of the unrealized loss on the security is due to credit loss. If the impairment is entirely or partially due to credit loss, the Company will measure the credit loss up to the amount of the difference between fair value and amortized cost, and recognize an allowance for credit losses along with the related charge against earnings within foreign exchange income (expense) and other, net in the consolidated statements of operations. The remaining impairment amount due to all other factors is recognized in accumulated other comprehensive income (loss) in the consolidated balance sheets. Subsequent changes to the Company’s estimate of credit loss will be recorded as adjustments to the allowance for credit losses and net income . As of March 31, 202 1 and 2020 , the Company did no t hold any investments. For the years ended March 31, 202 1 , 20 20 and 201 9 , the Company determined that no impairments were required to be recognized in the consolidated statements of operations. Revenue Recognition Revenue Recognition Policy The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the Company satisfies a performance obligation. The Company derives its revenue from two sources: (1) subscription revenue, which are comprised of subscription fees from customers accessing the Company’s cloud services and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. In the years ended March 31, 2021, 2020 and 2019, subscription revenue made up the substantial majority of the Company’s revenue and professional services and other revenue made up less than 5% of the Company’s revenue. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. The Company sells its products and services directly through the Company’s sales force and also indirectly through third-party resellers. In accordance with the provisions of ASC 606, the Company has considered certain factors in determining whether the end-user or the third-party reseller is the customer in arrangements involving resellers. The Company concluded that in the majority of transactions with resellers, the reseller is the customer. In these arrangements, the Company considered that it is the reseller, and not the Company, that has the relationship with the end-user. Specifically, the reseller has the ability to set pricing with the end-user and the credit risk with the end-user is borne by the reseller. Further, the reseller is not obligated to report its transaction price with the end-user to the Company, and in the majority of transactions, the Company is unable to determine the amount paid by the end-user customer to the reseller in these transactions. As a result of such considerations, revenue for these transactions is presented in the accompanying consolidated statements of operations based upon the amount billed to the reseller. For transactions where the Company has determined that the end-user is the ultimate customer, revenue is presented in the accompanying consolidated statements of operations based on the transaction price with the end-user. The Company recognizes subscription and support revenue ratably over the term of the contract, typically one year in duration, beginning on the date the customer is provided access to the Company’s service. For performance obligations related to set-up and ingestion, including implementation assistance and data migration services, respectively, the Company recognizes revenue using output measures of performance that reflect the transfer of promised services to the customer consistent with progress to completion. The Company considers training, consulting, and other professional services contracts as separate performance obligations and recognizes revenue using output measures of performance as services are completed. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. The Company primarily bills and collects payments from customers for its services in advance on a monthly and annual basis. In some instances, the Company receives non-refundable upfront payments for activities that do not constitute a promise to transfer a service and therefore are considered administrative tasks, not separate performance obligations. The upfront payments are evaluated to determine whether a material right to a discount upon renewal of the subscription exists. When the Company concludes a material right does not exist, the Company recognizes revenue related to the upfront payment over the initial contract term. When the Company concludes a material right does exist, the Company recognizes revenue related to the upfront payment, under the look-through method, over the estimated customer benefit period, which has been determined to be six years. All of the Company’s performance obligations, and associated revenue, are generally transferred to customers over time, with the exception of training, consulting and other professional services, which are generally transferred to the customer at a point in time. Revenue is presented net of any taxes collected from customers. Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on the Company’s overall pricing objectives, taking into consideration market conditions and other factors, including the value of the Company’s contracts, the products sold, customer demographics, the Company’s sales channel, and the number and size of users within the Company’s contracts. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription and other services described above and is recognized as the revenue recognition criteria are met. Deferred revenue that is expected to be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current in the accompanying consolidated balance sheets. Deferred Cost Policy T he Company capitalizes incremental costs of obtaining revenue contracts, which primarily consist of commissions paid to its sales representatives. The Company amortizes these commissions over six years on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. Six years represents the estimated benefit period of the customer relationship taking into account factors such as peer estimates of technology lives and customer lives as well as the Company's own historical data. The current and noncurrent portions of deferred commissions are included in deferred contract costs, net, and deferred contract costs, net of current portion, respectively, in the accompanying consolidated balance sheets. Cost of Revenue Cost of revenue primarily consists of expenses related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and share-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services team. In addition to these costs, the Company incurs third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of capitalized software and acquired 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 the Company’s large number of customers. The Company’s accounts receivable are derived from revenue earned from customers primarily located in the United States, the United Kingdom, and South Africa. The Company generally does not require its customers to provide collateral or other security to support accounts receivable. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. 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. The Company will continue to actively monitor the impact of the global COVID-19 pandemic on expected credit losses. As of March 31, 2021 and 2020, no individual customer represented more than 10% of the Company’s accounts receivable. During the years ended March 31, 2021, 2020 and 2019, 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 March 31, 2021 and 2020, the Company did not hold any investments. Allowance for Doubtful Accounts The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. The Company makes judgments as to its ability to collect outstanding receivables and provide allowances for the portion of receivables when a loss is reasonably expected to occur. The Company estimates credit losses at the reporting date resulting from the inability of its customers to make required payments, including its historical experience of actual losses and the aging of such receivables. These receivables have been pooled by shared risk characteristics. Based on known information the Company may also establish specific allowances for customers in an adverse financial condition or adjust its expectations of changes in conditions that may impact the collectability of outstanding receivables . The Company considers current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, the Company’s estimates of the recoverability of receivables could be further adjusted. For the years ended March 31, 2021, 2020 and 2019, credit loss expense was $0.4 million, $0.3 million and $0.2 million, respectively. The allowance for doubtful accounts as of March 31, 2021 and 2020 was not material. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful life of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Property and equipment acquired under finance leases is amortized over the lease term or, in circumstances where ownership is transferred by the end of the lease or there is a bargain purchase option, over the useful life that would be assigned if the asset were owned. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net loss in the period of retirement or sale. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. Business Combinations In accordance with ASC 805, Business Combinations The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair value of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired that are not individually identified and separately recognized. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. Assumptions may be incomplete or inaccurate, and unanticipated events or circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Goodwill and acquired intangible assets Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company’s market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The annual goodwill impairment test is performed as of January 1 st Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment, right-of-use assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. During this review, the Company re-evaluates the significant assumptions used in determining the original cost and estimated lives of long-lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long-lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the recoverability of these assets. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. For the years ended March 31, 2021, 2020 and 2019, the Company did not identify any indicators of impairment of its long-lived assets Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: • Level 1 inputs—Unadjusted observable quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 inputs—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs—Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and nonrecurring basis to determine the appropriate level to classify them for each reporting period. The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities and did not elect the fair value option for any financial assets and liabilities transacted in the years ended March 31, 2021, 2020 and 2019. Software Development Costs Costs incurred to develop software applications used in the Company’s SaaS platform consist of certain direct costs of materials and services incurred in developing or obtaining internal-use computer software, and payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the project. These costs generally consist of internal labor during configuration, coding, and testing activities. Research and development costs incurred during the preliminary project stage or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the application is substantially complete and ready for its intended use. Qualified costs incurred during the operating stage of the Company’s software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs incurred for maintenance of, and minor upgrades and enhancements to, internal-use software are expensed as incurred. During the years ended March 31, 202 1 , 20 20 and 201 9 , the Company believes the substantial majority of its development efforts were either in the preliminary project stage of development or in the operation stage (post-implementation), and accordingly, no costs have been capitalized during these periods. These costs are included in the accompanying consolidated statements of operations as research and development expense. Capitalized software and Cloud-computing Arrangements (CCA) The Company accounts for acquired internal-use software licenses and certain costs related to video content production related to its awareness training offering within the scope of ASC 350-40, Intangibles – Goodwill and Other – Internal-Use Software Additionally, the Company evaluates its accounting for fees paid in a CCA to determine whether the CCA includes a license to internal-use software. If the CCA includes a software license, the Company accounts for the software license as an intangible asset. Acquired software licenses are recognized and measured at cost, which includes the present value of the license obligation if the license is to be paid for over time. If the CCA does not include a software license, the Company accounts for the arrangement as a service contract (hosting arrangement) and hosting costs are generally expensed as incurred. Since the adoption of ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-24): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract on Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The Company determines the functional currency for its non-U.S. subsidiaries by reviewing the currencies in which its respective operating activities occur. The functional currency of the Company’s non-U.S. subsidiaries is generally the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (i) asset and liability accounts at period-end rates, (ii) income statement accounts at weighted-average exchange rates for the period, and (iii) shareholders’ equity accounts at historical exchange rates. Foreign exchange transaction gains and losses are included in foreign exchange income (expense) and other, net in the accompanying consolidated statements of operations. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. 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 share options outstanding, unvested restricted share units (RSUs) and estimated employee share purchase plan (ESPP) shares, from the weighted-average number of ordinary shares outstanding as their inclusion in the computation would be anti-dilutive due to net losses incurred. 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): Year Ended March 31, 2021 2020 2019 Numerator: Net income (loss) $ 29,745 $ (2,200 ) $ (7,001 ) Denominator: Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders – basic 63,739 62,024 59,960 Dilutive effect of share equivalents resulting from share options, RSUs and ESPP shares 1,892 — — Weighted average number of ordinary shares used in computing net income (loss) per share – diluted 65,631 62,024 59,960 Net income (loss) per share applicable to ordinary shareholders: Basic $ 0.47 $ (0.04 ) $ (0.12 ) Diluted $ 0.45 $ (0.04 ) $ (0.12 ) 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): Year Ended March 31, 2021 2020 2019 Share options outstanding 3,108 6,271 6,209 Unvested RSUs 523 1,277 550 ESPP Shares 83 82 85 Advertising and Promotion Costs Expenses related to advertising and promotion of solutions is charged to sales and marketing expense as incurred. The Company incurred advertising expenses of $19.5 million, $12.5 million and $12.5 million during the years ended March 31, 2021, 2020 and 2019, respectively. Income Taxes The Company is subject to income tax in the United Kingdom, the United States and other international jurisdictions, and uses estimates in determining its pro |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 12 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Deferred Revenue | 3. Revenue and Deferred Revenue Revenue recognized during the years ended March 31, 2021 and 2020 from amounts included in deferred revenue at the beginning of the period was approximately $195.6 million and $158.8 million, respectively. Revenue recognized during the years ended March 31, 2021 and 2020 from performance obligations satisfied or partially satisfied in previous periods was not material. Contracted revenue as of March 31, 2021 and 2020 that has not yet been recognized (contracted and not recognized) was $117.5 million and $97.2 million, respectively, 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 year, 45% in years two and three, with the remaining balance recognized thereafter. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components Prepaid expenses and other current assets consisted of the following: As of March 31, 2021 2020 Prepaid expenses $ 14,370 $ 11,498 Research and development investment tax credits 3,868 2,665 Other current assets 1,793 1,982 Total prepaid expenses and other current assets $ 20,031 $ 16,145 Property and equipment, net, consisted of the following: As of March 31, 2021 2020 Computer equipment (1) $ 166,524 $ 131,920 Leasehold improvements 33,452 34,031 Furniture and fixtures 5,573 5,793 Office equipment 2,339 2,084 207,888 173,828 Less: Accumulated depreciation and amortization (1) (114,997 ) (88,650 ) Property and equipment, net $ 92,891 $ 85,178 ( 1 ) Includes property and equipment acquired under finance leases: As of March 31, 2021 2020 Computer equipment $ 4,001 $ 4,714 Less: Accumulated amortization (3,694 ) (3,407 ) $ 307 $ 1,307 Depreciation and amortization expense was $28.6 million, $25.2 million, and $25.2 million for the years ended March 31, 2021, 2020 and 2019, respectively. Depreciation and amortization expense in the years ended March 31, 2021, 2020 and 2019 included $1.0 million, $1.2 million and $1.2 million, respectively related to property and equipment acquired under finance leases. Accrued expenses and other current liabilities consisted of the following: As of March 31, 2021 2020 Accrued payroll and related benefits $ 32,094 $ 23,465 Accrued taxes payable 7,587 5,809 Restructuring liability 398 — Other accrued expenses 14,597 12,333 Total accrued expenses and other current liabilities $ 54,676 $ 41,607 |
Restructuring
Restructuring | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 5. Restructuring Fiscal 2021 Restructuring On January 28, 2021, the Board of Directors of the Company approved a restructuring plan designed to align the Company’s resources with its strategy. The restructuring plan, which included a reduction of the Company’s workforce by approximately 4%, permitted the Company to increase investment in strategic growth areas. During the year ended March 31, 2021, the Company recognized total pre-tax restructuring charges of $3.3 million, consisting of $3.7 million of severance and other one-time termination benefits, and other restructuring related costs, partially offset by $0.4 million of other adjustments. These charges were primarily cash-based and were recognized in the fourth quarter of fiscal 2021 in Restructuring in the consolidated statements of operations. The actions associated with the restructuring plan are expected to be completed by the end of the first quarter of fiscal 2022 and the Company does not expect any material costs to be incurred in fiscal 2022. The following is a rollforward of the Company’s restructuring liability balance: Severance and related costs Balance as of March 31, 2020 $ — Restructuring charges 3,655 Cash payments (2,866 ) Other adjustments (391 ) Balance as of March 31, 2021 $ 398 |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions The following acquisitions have been accounted for as business combinations in accordance with ASC 805. The Company has recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition dates. Fiscal 2021 Acquisition eTorch Inc. On July 29, 2020, the Company acquired eTorch Inc. (MessageControl), a company incorporated under the laws of the State of Delaware, for cash consideration of approximately $17.0 million, net of cash acquired of $0.4 million. MessageControl is a messaging security provider with solutions designed to help stop social engineering and human identity attacks with the use of machine learning technology. The preliminary purchase price allocation primarily consisted of $3.8 million of identifiable intangible assets and approximately $14.1 million of goodwill that is not deductible for tax purposes. The identifiable intangible assets primarily include developed technology of $3.5 million, customer relationships of $0.2 million, and patent licenses of $0.1 million, with estimated useful lives of 9.7 years, 6.7 years, and 5.0 years respectively. The goodwill reflects the value of the synergies the Company expects to realize and the assembled workforce. The preliminary purchase price allocation is subject to finalization of amounts for potential indemnification adjustments. The significant intangible assets identified in the preliminary 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 distributor method, a subset of the excess-earnings method to value the customer relationships. The significant assumptions used to estimate the value of the intangible assets included the discount rate, revenue growth rates, and technology migration curves. The Company has not presented pro forma results of operations for the MessageControl acquisition because it is not material to the Company's condensed consolidated results of operations, financial position, or cash flows. Fiscal 2020 Acquisitions Segasec Labs Ltd. On January 3, 2020, the Company acquired Segasec Labs Ltd. (Segasec), a company incorporated under the laws of the State of Israel, that provides digital threat protection. Prior to the closing of the acquisition, the Company held an ownership interest of approximately 15.4%. The fair value of the previously held interest at the acquisition date approximated its original cost of $3.0 million (see Note 8). The Company acquired the remaining interest in Segasec for cash consideration of $24.2 million, net of cash acquired of $4.3 million. The purchase price allocation primarily consisted of $6.8 million of identifiable intangible assets and approximately $24.0 million of goodwill that is not deductible for tax purposes. The identifiable intangible assets primarily include developed technology of $6.7 million and customer relationships of $0.1 million, with estimated useful lives of 8.3 years and 6.3 years, respectively. The goodwill reflects the value of the synergies the Company expects to realize and the assembled workforce. The Company has not presented pro forma results of operations for the Segasec acquisition because it is not material to the Company's consolidated results of operations, financial position, or cash flows. 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 $18.9 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 Company has not presented pro forma results of operations for the DMARC Analyzer acquisition because it is not material to the Company's 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 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 years ended March 31, 2019 and 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 forma results do not reflect any operating efficiencies or potential cost savings which may result from the consolidation of the operations of the Company and Solebit. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred as of April 1, 2017, nor are they intended to represent or be indicative of future results of operations (in thousands, except per share amounts): Year ended March 31, 2019 Revenue $ 340,824 Net loss (7,729 ) Basic and diluted net loss per share $ (0.13 ) Weighted average number of ordinary shares outstanding Basic and diluted 59,960 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 consolidated results of operations, financial position, or cash flows. Simply Migrate Ltd. On January 25, 2019, the Company acquired Simply Migrate Ltd., a provider of archive data migration technology, . 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 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 | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets The following is a rollforward of the Company’s goodwill balance for each of the periods presented: Year ended March 31, 2021 2020 Beginning balance $ 150,525 $ 107,575 Goodwill acquired 14,143 42,927 Effect of foreign exchange rates 9,284 23 Ending balance $ 173,952 $ 150,525 Purchased intangible assets consisted of the following: Weighted- Average March 31, 2021 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 7 $ 39,180 $ (9,114 ) $ 30,066 Customer relationships 4 984 (318 ) 666 Capitalized software and other (1) (2) 3 25,161 (12,700 ) 12,461 $ 65,325 $ (22,132 ) $ 43,193 Weighted- Average March 31, 2020 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 8 $ 33,269 $ (4,547 ) $ 28,722 Customer relationships 5 771 (159 ) 612 Trade names N/A 41 (41 ) — Capitalized software and other (1) (2) 3 16,849 (7,789 ) 9,060 $ 50,930 $ (12,536 ) $ 38,394 (1) As of March 31, 2021 and 2020, the net carrying value of capitalized software and other includes $2.1 million and $1.4 million, respectively of costs capitalized related to video production costs. See Note 2 for further information. (2) As of March 31, 2021 and 2020, the net carrying value of capitalized software and other includes $0.3 million and $0.2 million, respectively of costs capitalized related to IP addresses. The Company recorded amortization expense of $9.5 million, $7.0 million and $4.8 million for the years ended March 31, 2021, 2020 and 2019, 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 March 31, 2021 was as follows: Purchased Intangible Capitalized Assets Software 2022 $ 4,493 $ 5,039 2023 4,493 3,837 2024 4,433 2,078 2025 4,355 1,114 2026 4,278 347 Thereafter 8,680 46 Total $ 30,732 $ 12,461 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 8. Fair Value Measurement 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 Strategic investments consist of non-controlling equity investments in privately held companies. As of March 31, 2021 and 2020, the Company did not hold any strategic investments. During the year ended March 31, 2020, the Company held strategic investments of $3.0 million for which the Company did not have the ability to exercise significant influence (see Note 6). The Company elected the measurement alternative for these investments as they did not have readily determinable fair values. These non-marketable equity securities were included in other assets on the consolidated balance sheets and were carried at cost. Any adjustments resulting from impairment or observable price changes in orderly transactions for identical or similar investment of the same issuer are recorded within the consolidated statements of operations. In the years ended March 31, 2020 and 2019, there were 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 the Company has the ability to access. Fair values determined using "Level 2 inputs" utilize quoted prices that are directly or indirectly observable. Fair values determined using “Level 3 inputs” utilize unobservable inputs for determining fair values of assets or liabilities that reflect an entity's own assumptions in pricing assets or liabilities. As of March 31, 2021 and 2020, the Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The following table summarizes financial assets measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of March 31, 2021 and 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 15,366 $ — $ 15,366 March 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 17,495 $ — $ 17,495 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 9. Leases The Company has operating leases for data centers and facilities and finance leases for certain equipment. The leases have remaining lease terms of less than one year to 8 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. The components of lease expense were as follows: Year ended March 31, 2021 2020 Short-term lease cost $ 169 $ 308 Variable lease cost 6,554 4,144 Operating lease cost 36,449 37,906 Finance lease cost: Amortization of lease assets 1,000 1,179 Interest on lease liabilities 43 93 Total finance lease cost $ 1,043 $ 1,272 Supplemental cash flow information related to leases was as follows: Year ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 39,580 $ 32,816 Operating cash outflows from finance leases $ 43 $ 74 Financing cash outflows from finance leases $ 1,057 $ 844 Weighted-average remaining lease term and discount rate: As of March 31, As of March 31, 2021 2020 Weighted-average remaining lease term (in years) Operating leases 5.76 6.46 Finance leases 0.35 1.31 Weighted-average discount rate Operating leases 4.58 % 4.74 % Finance leases 4.83 % 4.83 % Maturities of lease liabilities as of March 31, 2021 were as follows: Year Ending March 31, Operating Leases Finance Leases 2022 $ 39,328 $ 326 2023 31,795 — 2024 23,149 — 2025 21,736 — 2026 17,437 — Thereafter 32,281 — Total lease payments 165,726 326 Less: imputed interest (19,963 ) (3 ) Total lease liabilities $ 145,763 $ 323 As of March 31, 2021, the Company had additional leases with future lease payments of $10.5 million, the terms of which have not yet commenced. These leases are expected to commence in the next fiscal year with lease terms of approximately three to five years. Rent expense related to the Company’s office facilities was $5.3 million for the year ended March 31, 2019. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt In July 2018, the Company entered into that certain credit agreement (the Credit Agreement), dated as of July 23, 2018 by and among the Company, certain of the Company’s subsidiaries party thereto, as guarantors, certain financial institutions party thereto from time to time, as lenders, and JPMorgan Chase Bank, N.A., as administrative agent (the Administrative Agent). The Credit Agreement 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). In June 2020, the Credit Agreement was amended to permit the Company to issue letters of credit in certain additional foreign currencies beyond the U.S. dollar and the British pound (as amended, the Credit Agreement, the Term Loan and the Revolving Facility are referred to herein as the Credit Facility). Interest under the Credit Facility accrues at a rate between LIBOR plus 1.375% and LIBOR plus 1.875%, based on the Company’s ratio of indebtedness to earnings before interest, taxes, depreciation, amortization and certain other adjustments (Consolidated EBITDA). Based on this ratio, the effective interest rate as of March 31, 2021 and 2020 under the Credit Facility is LIBOR plus 1.375% and LIBOR plus 1.375%, respectively. The term of the Credit Facility is five years, maturing on July 23, 2023. At the time the Company entered into the Credit Agreement, there was no outstanding debt. The Company was in compliance with all covenants as of March 31, 2021 and 2020. The Company allocated debt issuance costs for the Credit Facility on a pro-rata basis between the Term Loan and Revolving Facility. The debt issuance costs on the Term Loan are recorded as a reduction of debt and are amortized and recognized as additional interest expense over the life of the debt instrument using the effective interest method. The debt issuance costs on the Revolving Facility are recorded in other assets and are amortized and recognized as additional interest expense over the life of the Revolving Facility on a straight-line basis. As of March 31, 2021 and 2020, the balance of debt issuance costs recorded as a reduction of debt was $0.6 million and $0.9 million, respectively and the balance of debt issuance costs recorded in other assets was $0.3 million and $0.5 million, respectively. All obligations under the Credit Agreement are unconditionally guaranteed by all of the Company’s material direct and indirect subsidiaries organized under the laws of the United States, the United Kingdom, the Bailiwick of Jersey, and other jurisdictions agreed to by the Company and the Administrative Agent, with certain exceptions. These guarantees are secured by substantially all of the present and future property and assets of the guarantors, with certain exclusions. As of March 31, 2021 and 2020, the Company had $86.9 million and $93.8 million, respectively, outstanding on the Term Loan and had $17.5 million and nil outstanding borrowings under the Revolving Facility, respectively, which was drawn down in July 2020. As of March 31, 2021 and 2020, total availability under the Revolving Facility was reduced by outstanding letters of credit of $2.2 million and $2.0 million, respectively. As of March 31, 2021 and 2020, total availability under the Revolving Facility was $30.3 million and $48.0 million, respectively. Future minimum principal payment obligations under the Term Loan are as follows: Fiscal Year Ending March 31, Debt 2022 $ 9,375 2023 10,000 2024 85,000 Total minimum debt payments 104,375 Less: Debt issuance costs (614 ) Less: Current portion of long-term debt (9,090 ) Long-term debt $ 94,671 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11 . Related Party Transactions Certain of the Company’s shareholders and certain companies affiliated with our directors and executive officers were also customers of the Company during the periods included in the consolidated financial statements. Revenue recognized during the years ended March 31, 2021, 2020 and 2019 and accounts receivable outstanding as of March 31, 2021 and 2020 related to these transactions were not material. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | 12. Shareholders’ Equity The following ordinary shares were reserved for future issuance under the 2015 Plan, Historical Plans and ESPP (as defined below in Note 13): As of March 31, 2021 Options outstanding under share option plans 5,322,599 Unvested RSUs 2,630,359 Options and awards available for future grant under the 2015 Plan 11,311,233 Shares reserved for issuance under ESPP 579,973 Total authorized ordinary shares reserved for future issuance 19,844,164 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 13. Share-Based Compensation For the years ended March 31, 2021, 2020 and 2019, all grants of share-based awards have been made under the Mimecast Limited 2015 Share Option and Incentive Plan (the 2015 Plan) and the 2015 Employee Share Purchase Plan (the ESPP). Additionally, the Company has two pre-IPO share-based compensation plans including the Mimecast Limited 2010 EMI Share Option Scheme (the 2010 Plan), and the Mimecast Limited Approved Share Option Plan (the Approved Plan) (the 2010 Plan and the Approved Plan, collectively, the Historical Plans). Subsequent to November 19, 2015, the IPO date, no further grants under the Historical Plans were permitted. The 2015 Plan allows the compensation committee of the board of directors to make equity-based incentive awards to the Company’s officers, employees, non-employee directors and consultants. Initially, a total of 5.5 million ordinary shares were reserved for the issuance of awards under the 2015 Plan. This number is subject to adjustment in the event of a share split, share dividend or other change in our capitalization. The 2015 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1 st Under the 2015 Plan, the share option price may not be less than the fair market value of the ordinary shares on the date of grant and the term of each share option may not exceed 10 years from the date of grant. Share options typically vest over 4 years, but vesting provisions can vary based on the discretion of the board of directors. The Company settles share option exercises and RSU releases under the 2015 Plan through newly issued shares. The Company’s ordinary shares underlying any awards that are forfeited, canceled, withheld upon exercise of an option, or settlement of an award to cover the exercise price or tax withholding, or otherwise terminated other than by exercise will be added back to the shares available for issuance under the 2015 Plan. Initially, a total of 1.1 million shares of the Company's ordinary shares were reserved for future issuance under the ESPP. This number is subject to change in the event of a share split, share dividend or other change in capitalization. The ESPP may be terminated or amended by the board of directors at any time. The ESPP permits eligible employees to purchase shares by authorizing payroll deductions from 1% to 10% of his or her eligible compensation during each six-month Share-based compensation expense recognized under the 2015 Plan, Historical Plans and ESPP in the accompanying consolidated statements of operations was as follows: Year ended March 31, 2021 2020 2019 Cost of revenue $ 4,619 $ 3,445 $ 1,684 Research and development 15,446 10,900 6,199 Sales and marketing 17,380 13,141 7,856 General and administrative 16,203 12,058 10,215 Total share-based compensation expense $ 53,648 $ 39,544 $ 25,954 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. There was no material modification expense recognized in the years ended March 31, 2021 and 2020. The total modification expense recognized in the year ended March 31, 2019 was $3.2 million. Share Options Share option activity under the 2015 Plan and Historical Plans for the year ended March 31, 2021 was as follows: Number of Awards Weighted Exercise Price Weighted Remaining Contractual Term (in years) Aggregate Intrinsic Outstanding as of March 31, 2020 6,271,111 $ 31.61 7.55 $ 47,621 Options granted 878,257 $ 35.17 Options exercised (1,324,659 ) $ 20.88 Options forfeited and cancelled (502,110 ) $ 39.60 Outstanding as of March 31, 2021 5,322,599 $ 34.13 6.81 $ 43,683 Exercisable as of March 31, 2021 2,908,817 $ 29.40 5.87 $ 36,050 For the years ended March 31, 2021, 2020 and 2019, the total intrinsic value of options exercised was $33.3 million, $40.0 million and $66.4 million, respectively. For the years ended March 31, 2021, 2020 and 2019, total cash proceeds from option exercises were $27.6 million, $20.1 million and $21.4 million, respectively. As of March 31, 2021, there was approximately $36.0 million of unrecognized share-based compensation related to unvested share options, which is expected to be recognized over a weighted-average period of 2.23 years. ESPP In the years ended March 31, 2021, 2020 and 2019, the Company issued 178 thousand, 165 thousand and 138 thousand shares, respectively, in connection with its ESPP offerings and the cash proceeds from shares purchased were $6.4 million, $5.3 million and $3.6 million, respectively. In the years ended March 31, 2021, 2020 and 2019, the Company recognized $2.4 million, $1.8 million and $1.3 million of share-based compensation expense under the ESPP, respectively. 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 employees generally vest in four equal annual installments. RSU activity under the 2015 Plan for the year ended March 31, 2021 was as follows: Number of Awards Weighted Average Grant Date Fair Value Intrinsic Value (in thousands) Unvested RSUs as of March 31, 2020 1,276,840 $ 43.64 $ 45,072 RSUs granted 2,089,168 $ 36.33 RSUs vested (402,149 ) $ 42.22 RSUs forfeited (333,500 ) $ 39.22 Unvested RSUs as of March 31, 2021 2,630,359 $ 38.62 $ 105,767 As of March 31, 2021, there was approximately $77.9 million of unrecognized share-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.79 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Litigation 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. On April 24, 2020, ZapFraud amended its complaint by alleging that the Company’s email security technology infringes an additional patent that was recently issued to ZapFraud. On May 22, 2020, the Company filed a revised Motion to Dismiss for Failure to State a Claim that responds to ZapFraud’s amended complaint. On September 18, 2020, the court held a hearing on the motion and on November 20, 2020 the magistrate judge issued a recommendation that the court grant the Company’s motion. On December 11, 2020, ZapFraud filed objections to the magistrate judge’s recommendation and the Company responded to those objections on January 4, 2021. On March 25, 2021, the court adopted the recommendation of the magistrate judge, and granted the Company’s motion to dismiss. There are no pending motions and no appeal has been filed. 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. During fiscal 2019 and 2020, the Company engaged in discussions 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. In the fiscal years ended March 31, 2020 and 2019, the Company recorded expense of $2.7 million and $1.0 million, respectively within general and administrative expenses. The remaining $2.2 million is being amortized over its expected useful life of 3.5 years. 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, 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, t he Company was not subject to any material legal proceedings during the years ended March 31, 202 1 , 20 20 and 201 9 , and, to the best of its knowledge, except as described above, no material legal proceedings are currently pending or threatened. Indemnification In the ordinary course of business, the Company provides indemnifications of varying scope and terms to customers, business partners, vendors, lessors, directors, officers, employees, and other parties with respect to certain matters. Indemnification may include losses from intellectual property infringement claims made by third parties, the Company’s breach of certain agreements, and other liabilities relating to or arising from the Company’s acts or omissions. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular indemnification. Based on historical experience and information known as of March 31, 2021, 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. Security Incident In January 2021, the Company became aware of a security incident later determined to be conducted by the same sophisticated threat actor responsible for the SolarWinds supply chain attack. The Company immediately launched an internal forensic investigation. The investigation was supported by leading third-party forensics and cyber incident response experts at Mandiant, a division of FireEye, Inc., and in coordination with law enforcement to aid their investigation into this threat actor. During the investigation, the Company learned that the threat actor used the SolarWinds supply-chain compromise to gain access to part of its production grid environment. Using this entry point, the threat actor accessed certain Mimecast-issued certificates and related customer server connection information. The threat actor also accessed a subset of email addresses and other contact information, as well as encrypted and/or hashed and salted credentials. In addition, the threat actor accessed and downloaded a limited number of the Company’s source code repositories, but the Company found no evidence of any modifications to its source code nor does it believe there was any impact on its products. As the investigation progressed, the Company issued a series of advisories to affected customers, including recommended precautionary steps to mitigate risk and, in some cases, to address regulatory requirements. The forensic investigation was completed in March 2021 and the Company has eliminated the threat actor’s access to its environment. The Company has taken a number of actions to prevent future access to its environment and will continue to monitor for threats and take precautionary steps as needed. The Company is subject to risk and significant uncertainties as a result of this security incident, including those described in Part I, Item 1A, “Risk Factors” in this Annual Report on Form 10-K. While the investigation is complete, there can be no assurance as to what the overall impact of these events will be. These types of events often have cascading impacts that unfold over time and may result in a loss of revenue, a diminution of the Company’s business prospects and incremental costs, including costs associated with litigation or investigations by regulatory authorities, any of which may adversely impact the Company’s financial results. The Company has incurred and expects to incur significant costs related to the security incident. For the period ended March 31, 2021, the Company recorded $0.8 million of pre-tax expenses related to the security incident, net of anticipated insurance recoveries. Expenses include costs of the forensic investigation, remediation costs, and legal and other professional services. It is also expected that the Company will continue to incur costs related to its response, remediation, and investigatory efforts relating to this security incident. While the Company has cyber insurance coverage, the amount of such insurance may be insufficient to compensate for any expenses or losses that may result from the security incident or the insurance carrier may refuse to reimburse the Company for certain costs under the terms of the policy. The full scope of the costs and related impacts of the security incident, including the availability of insurance to offset some of these costs, cannot be estimated at this time. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans The Company maintains a defined contribution savings plan under Section 401(k) of the U.S. Internal Revenue Code of 1986 (the 401(k) Plan), covering all U.S. employees who satisfy certain eligibility requirements. The 401(k) Plan allows each participant to contribute a percentage of their eligible compensation subject to applicable annual limits pursuant to the limits established by the Internal Revenue Service. The Company’s matching contributions were $2.1 million, $1.6 million and $1.2 million for the years ended March 31, 2021, 2020 and 2019, respectively. The Company contributes to a defined contribution savings plan for its employees in the United Kingdom who satisfy certain eligibility requirements. The plan allows each participant to contribute a percentage of their compensation and the Company contributes an additional 3.5 % of all earnings for those employees in the scheme on a monthly basis. The Company’s contributions were $ million, $ million and $ million for the years ended March 31, 202 1 , 20 20 , and 201 9 , respectively. Beginning in fiscal year 2020, the Company contributes to defined contribution savings plans for its employees in South Africa, Germany, and the Netherlands, who satisfy certain eligibility requirements. The plans allow each participant to contribute a percentage of their compensation and the Company contributes an additional 5%, 3%, and 3%, respectively of all earnings for those employees in the scheme on a monthly basis subject to applicable national limits. The Company’s contributions were $0.4 million for each of the years ended March 31, 2021 and 2020. Beginning in fiscal year 2021, the Company contributes to a defined contribution savings plan for its employees in Canada who satisfy certain eligibility requirements. The plan allows each participant to contribute a percentage of their compensation and the Company contributes up to an additional 2% of all earning for those employees in the scheme subject to applicable national limits. The Company’s contributions were immaterial for the year ended March 31, 2021. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 16. Segment and Geographic Information Disclosure requirements about segments of an enterprise and related information establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in interim financial reports issued to shareholders. Operating segments are defined as components of an enterprise about which separate discrete financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer. The Company and the chief executive officer view the Company’s operations and manage its business as one operating segment. Geographic Data The Company allocates, for the purpose of geographic data reporting, its revenue based upon the location of the contracting subsidiary. Total revenue by geographic area was as follows: Year ended March 31, 2021 2020 2019 United States $ 256,979 $ 219,423 $ 169,286 United Kingdom 143,978 123,620 103,900 South Africa 51,601 51,549 46,275 Other 48,841 32,371 20,916 Total revenue $ 501,399 $ 426,963 $ 340,377 Property and equipment, net by geographic location consisted of the following: As of March 31, 2021 2020 United States $ 40,129 $ 39,193 United Kingdom 28,892 29,644 South Africa 7,942 7,093 Other 15,928 9,248 Total $ 92,891 $ 85,178 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes Income (loss) before income taxes consisted of the following: Year ended March 31, 2021 2020 2019 United Kingdom $ 15,487 $ (20,528 ) $ (4,626 ) Foreign 15,954 20,687 (374 ) Income (loss) before income taxes $ 31,441 $ 159 $ (5,000 ) The provision for income taxes in the accompanying consolidated financial statements is comprised of the following: As of March 31, 2021 2020 2019 Current tax expense: Foreign $ 2,536 $ 2,939 $ 3,493 Total current tax expense 2,536 2,939 3,493 Deferred tax expense (benefit): Domestic — — (578 ) Foreign (840 ) (580 ) (914 ) Total deferred tax benefit (840 ) (580 ) (1,492 ) Total provision for income taxes $ 1,696 $ 2,359 $ 2,001 The reconciliation of the United Kingdom statutory tax rate to the Company’s effective tax rate included in the accompanying consolidated statements of operations is as follows: Year ended March 31, 2021 2020 2019 Tax at statutory rate 19.0 % 19.0 % 19.0 % U.S. state taxes, net of federal (0.2 ) 558.0 31.1 Foreign rate differential 1.0 291.5 26.3 Meals and entertainment 0.2 432.6 (11.4 ) Branch income 0.1 (69.9 ) (0.6 ) Share-based compensation (4.4 ) (2,341.9 ) 172.3 Tax credits (3.1 ) (375.5 ) 7.7 Unremitted earnings 0.4 101.3 (3.8 ) Change in valuation allowance (6.6 ) (1,456.8 ) (249.9 ) Deferred tax true-ups 1.9 116.2 (3.5 ) Tax reserves 2.7 3,147.4 (4.9 ) Provision to return 0.6 37.6 (0.1 ) Withholding taxes 2.4 323.5 (2.6 ) Non-deductible expenses 0.4 197.7 (5.2 ) Deferred tax rate change (9.4 ) 473.1 (6.3 ) Acquisition-related costs 0.4 91.7 (7.6 ) Foreign exchange — (59.5 ) — Other — (2.4 ) (0.5 ) Effective Tax Rate 5.4 % 1,483.6 % (40.0 )% Although the Company’s parent entity is organized under Jersey law, our affairs are, and are intended to be, managed and controlled in the United Kingdom for tax purposes. Therefore, the Company is resident in the United Kingdom for tax purposes. The Group’s parent entity is domiciled in the United Kingdom and its earnings are subject to 19% statutory tax rates for the years ended March 31, 2021, 2020 and 2019, respectively. The Company’s effective tax rate differs from the statutory rate each year primarily due to windfall tax benefits on equity award exercises and vests, the valuation allowance maintained against the Company’s net deferred tax assets, the jurisdictional earnings mix, generation of tax credits, withholding taxes, an increase in uncertain tax positions, and deferred tax rate changes. In addition, during the year ended March 31, 2021, the Company recognized a tax benefit of $0.7 million for the release of a portion of the Company’s pre-existing U.S. valuation allowance as a result of the MessageControl Deferred tax assets and liabilities reflect the net tax effects of net operating loss carryovers and the temporary differences between the assets and liabilities carrying value for financial reporting and the amounts used for income tax purposes. T As of March 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 30,438 $ 30,879 Share-based compensation 14,418 9,501 Deferred revenue 1,891 2,315 Fixed assets 5,275 4,718 Lease liability 20,266 19,622 Accrued compensation 3,527 1,786 Income tax credits 2,719 2,311 Other 1,612 2,042 Gross deferred tax assets 80,146 73,174 Deferred tax liabilities: Fixed assets (7,818 ) (7,414 ) Unremitted earnings (574 ) (362 ) Intangible assets (5,308 ) (6,453 ) Capitalized commissions (12,830 ) (9,751 ) Right-of-use asset (18,537 ) (17,113 ) Other (737 ) (262 ) Gross deferred tax liabilities (45,804 ) (41,355 ) Valuation allowance (36,746 ) (34,224 ) Deferred tax liabilities, net $ (2,404 ) $ (2,405 ) In assessing the ability to realize the Company’s net deferred tax assets, management considers various factors including taxable income in carryback years, future reversals of existing taxable temporary differences, tax planning strategies, and future taxable income projections to determine whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Based on the negative evidence, the Company has determined that the uncertainty regarding realizing its deferred tax assets is sufficient to warrant the need for a full valuation allowance against its worldwide net deferred tax assets. The $2.5 million net increase in the valuation allowance from 2020 to 2021 is primarily attributable to the increase in the United Kingdom corporate income tax rate from 17% to 19% in 2021. Additionally, the change in valuation allowance is impacted by the operating results in jurisdictions in which we maintain a valuation allowance, including the impact of shared based compensation windfall tax deductions and currency translation adjustments in jurisdictions where the functional currency is not the U.S. dollar. As of March 31, 2021, the Company had U.K. net operating loss carryforwards of approximately $68.6 million that do not expire. As of March 31, 2021, the Company had U.S. federal net operating loss carryforwards of approximately $63.3 million. U.S. federal net operating loss carryforwards generated through March 31, 2018 of approximately $39.2 million expire at various dates through 2038, and U.S. federal net operating loss carryforwards generated in the tax years beginning after March 31, 2018 of approximately As of March 31, 2021, the Company had Israeli net operating loss carryforwards of approximately $8.0 million that do not expire. As of March 31, 2021, the Company had Canadian net operating loss carryforwards of approximately $2.2 million that expire in 2041. As of March 31, 2021, the Company had an Israeli income tax credit carryforward of $0.5 million that expires at various dates from 2024 through 2026 Under Section 382 of the U.S. Internal Revenue Code of 1986, if a corporation undergoes an ownership change, the corporation’s ability to use its pre-change net operating loss carryforwards to offset its post-change income and taxes may be limited. In general, an ownership change occurs if there is a 50 percent cumulative change in ownership of the Company over a rolling three-year period. Similar rules may apply under U.S. state tax laws. The Company believes that it has experienced an ownership change in the past and may experience ownership changes in the future resulting from future transactions in our share capital, some of which may be outside the Company’s control. The Company’s ability to utilize its net operating loss carryforwards or other tax attributes to offset U.S. federal and state taxable income in the future may be subject to future limitations. As of March 31, 2021 and 2020, the Company had liabilities for uncertain tax positions of $12.4 million and $10.4 million, respectively, none of which, if recognized, would materially impact the Company’s effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year ended March 31, 2021 2020 Beginning balance $ 10,355 $ 6,016 Additions based on tax positions related to current year 324 535 Additions for tax positions of prior years 1,242 4,235 Additions (reductions) due to change in foreign exchange rate 937 (431 ) Expiration of statutes of limitation (307 ) — Reductions due to tax positions of prior years (169 ) — Ending balance $ 12,382 $ 10,355 Interest and penalty charges, if any, related to uncertain tax positions are classified as income tax expense in the accompanying consolidated statements of operations. As of March 31, 2021 and 2020, the Company had immaterial accrued interest or penalties related to uncertain tax positions. The Company is subject to taxation in the United Kingdom and several foreign jurisdictions. As of March 31, 2021, the Company is no longer subject to examination by taxing authorities in the United Kingdom for years prior to March 31, 2019. The significant foreign jurisdictions in which the Company operates are no longer subject to examination by taxing authorities for years prior to March 31, 2017. In addition, net operating loss carryforwards in certain jurisdictions may be subject to adjustments by taxing authorities in future years when they are utilized. The Company had approximately $59.2 million of unremitted foreign earnings as of March 31, 2021. Income taxes have been provided, if applicable, on approximately $16.7 million of the unremitted foreign earnings. Income taxes have not been provided on approximately $42.5 million of unremitted foreign earnings because they are considered to be indefinitely reinvested. The tax payable on the earnings that are indefinitely reinvested would be immaterial. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events Share Option and RSU Grants On April 1, 2021, the Company granted approximately 0.7 million share options and 1.5 million RSUs to its employees as part of its annual share-based award grant. The grant date fair value per share for share options and RSUs was $18.80 and $40.85, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). The Company reclassified certain amounts within its consolidated statements of cash flows to conform to current period presentation. The reclassifications include $1.0 million from other assets to deferred income tax benefit for the year ended March 31, 2019 and $0.6 million and $0.5 million from accrued expenses and other liabilities to deferred income tax benefit for the years ended March 31, 2020 and 2019, respectively. These reclassifications had no impact on the Company’s previously reported results of operations or its balance sheets. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition, variable consideration, valuation at fair value of assets acquired or sold, including intangible asset s, goodwill, tangible assets, and liabilities assumed, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, contingent liabilities, 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. Due to the global COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of March 31, 2021. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Changes in estimates are recorded in the period in which they become known. |
Subsequent Events Considerations | Subsequent Events Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. See Note 18. |
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 consolidated statements of operations. As of March 31, 2021 and 2020, cash and cash equivalents of $292.9 million and $174.0 million, respectively, were carried at amortized cost, which approximates their market value. The Company did not hold any debt investments as of March 31, 2021 or 2020. When the Company holds debt investments classified as available-for-sale pursuant to ASC 320, Investments – Debt Securities, On April 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) and ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815 Derivatives and Hedging and Topic 825, Financial Instruments . Under these standards, t he Company reviews available-for-sale securities for impairment whenever the fair value of the security is less than its amortized cost . If impairment exists and the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, the Company will write down the amortized cost basis to its fair value at the reporting date, recognizing the difference as a loss within foreign exchange (expense) income and other, net in the consolidated statements of operations. If the Company does not intend to sell the security nor is it more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, the Company will determine if any portion of the unrealized loss on the security is due to credit loss. If the impairment is entirely or partially due to credit loss, the Company will measure the credit loss up to the amount of the difference between fair value and amortized cost, and recognize an allowance for credit losses along with the related charge against earnings within foreign exchange income (expense) and other, net in the consolidated statements of operations. The remaining impairment amount due to all other factors is recognized in accumulated other comprehensive income (loss) in the consolidated balance sheets. Subsequent changes to the Company’s estimate of credit loss will be recorded as adjustments to the allowance for credit losses and net income . As of March 31, 202 1 and 2020 , the Company did no t hold any investments. For the years ended March 31, 202 1 , 20 20 and 201 9 , the Company determined that no impairments were required to be recognized in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition Revenue Recognition Policy The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the Company satisfies a performance obligation. The Company derives its revenue from two sources: (1) subscription revenue, which are comprised of subscription fees from customers accessing the Company’s cloud services and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. In the years ended March 31, 2021, 2020 and 2019, subscription revenue made up the substantial majority of the Company’s revenue and professional services and other revenue made up less than 5% of the Company’s revenue. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. The Company sells its products and services directly through the Company’s sales force and also indirectly through third-party resellers. In accordance with the provisions of ASC 606, the Company has considered certain factors in determining whether the end-user or the third-party reseller is the customer in arrangements involving resellers. The Company concluded that in the majority of transactions with resellers, the reseller is the customer. In these arrangements, the Company considered that it is the reseller, and not the Company, that has the relationship with the end-user. Specifically, the reseller has the ability to set pricing with the end-user and the credit risk with the end-user is borne by the reseller. Further, the reseller is not obligated to report its transaction price with the end-user to the Company, and in the majority of transactions, the Company is unable to determine the amount paid by the end-user customer to the reseller in these transactions. As a result of such considerations, revenue for these transactions is presented in the accompanying consolidated statements of operations based upon the amount billed to the reseller. For transactions where the Company has determined that the end-user is the ultimate customer, revenue is presented in the accompanying consolidated statements of operations based on the transaction price with the end-user. The Company recognizes subscription and support revenue ratably over the term of the contract, typically one year in duration, beginning on the date the customer is provided access to the Company’s service. For performance obligations related to set-up and ingestion, including implementation assistance and data migration services, respectively, the Company recognizes revenue using output measures of performance that reflect the transfer of promised services to the customer consistent with progress to completion. The Company considers training, consulting, and other professional services contracts as separate performance obligations and recognizes revenue using output measures of performance as services are completed. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. The Company primarily bills and collects payments from customers for its services in advance on a monthly and annual basis. In some instances, the Company receives non-refundable upfront payments for activities that do not constitute a promise to transfer a service and therefore are considered administrative tasks, not separate performance obligations. The upfront payments are evaluated to determine whether a material right to a discount upon renewal of the subscription exists. When the Company concludes a material right does not exist, the Company recognizes revenue related to the upfront payment over the initial contract term. When the Company concludes a material right does exist, the Company recognizes revenue related to the upfront payment, under the look-through method, over the estimated customer benefit period, which has been determined to be six years. All of the Company’s performance obligations, and associated revenue, are generally transferred to customers over time, with the exception of training, consulting and other professional services, which are generally transferred to the customer at a point in time. Revenue is presented net of any taxes collected from customers. Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on the Company’s overall pricing objectives, taking into consideration market conditions and other factors, including the value of the Company’s contracts, the products sold, customer demographics, the Company’s sales channel, and the number and size of users within the Company’s contracts. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription and other services described above and is recognized as the revenue recognition criteria are met. Deferred revenue that is expected to be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as non-current in the accompanying consolidated balance sheets. Deferred Cost Policy T he Company capitalizes incremental costs of obtaining revenue contracts, which primarily consist of commissions paid to its sales representatives. The Company amortizes these commissions over six years on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. Six years represents the estimated benefit period of the customer relationship taking into account factors such as peer estimates of technology lives and customer lives as well as the Company's own historical data. The current and noncurrent portions of deferred commissions are included in deferred contract costs, net, and deferred contract costs, net of current portion, respectively, in the accompanying consolidated balance sheets. Revenue recognized during the years ended March 31, 2021 and 2020 from amounts included in deferred revenue at the beginning of the period was approximately $195.6 million and $158.8 million, respectively. Revenue recognized during the years ended March 31, 2021 and 2020 from performance obligations satisfied or partially satisfied in previous periods was not material. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of expenses related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and share-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services team. In addition to these costs, the Company incurs third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of capitalized software and acquired |
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 the Company’s large number of customers. The Company’s accounts receivable are derived from revenue earned from customers primarily located in the United States, the United Kingdom, and South Africa. The Company generally does not require its customers to provide collateral or other security to support accounts receivable. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. 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. The Company will continue to actively monitor the impact of the global COVID-19 pandemic on expected credit losses. As of March 31, 2021 and 2020, no individual customer represented more than 10% of the Company’s accounts receivable. During the years ended March 31, 2021, 2020 and 2019, 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 March 31, 2021 and 2020, the Company did not hold any investments. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. The Company makes judgments as to its ability to collect outstanding receivables and provide allowances for the portion of receivables when a loss is reasonably expected to occur. The Company estimates credit losses at the reporting date resulting from the inability of its customers to make required payments, including its historical experience of actual losses and the aging of such receivables. These receivables have been pooled by shared risk characteristics. Based on known information the Company may also establish specific allowances for customers in an adverse financial condition or adjust its expectations of changes in conditions that may impact the collectability of outstanding receivables . The Company considers current economic trends when evaluating the adequacy of the allowance for doubtful accounts. If circumstances relating to specific customers change or unanticipated changes occur in the general business environment, the Company’s estimates of the recoverability of receivables could be further adjusted. For the years ended March 31, 2021, 2020 and 2019, credit loss expense was $0.4 million, $0.3 million and $0.2 million, respectively. The allowance for doubtful accounts as of March 31, 2021 and 2020 was not material. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful life of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Property and equipment acquired under finance leases is amortized over the lease term or, in circumstances where ownership is transferred by the end of the lease or there is a bargain purchase option, over the useful life that would be assigned if the asset were owned. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net loss in the period of retirement or sale. The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to property and equipment. |
Business Combinations | Business Combinations In accordance with ASC 805, Business Combinations The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair value of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired that are not individually identified and separately recognized. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. Assumptions may be incomplete or inaccurate, and unanticipated events or circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. |
Goodwill and acquired intangible assets | Goodwill and acquired intangible assets Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company’s market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The annual goodwill impairment test is performed as of January 1 st Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment, right-of-use assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. During this review, the Company re-evaluates the significant assumptions used in determining the original cost and estimated lives of long-lived assets. Although the assumptions may vary from asset to asset, they generally include operating results, changes in the use of the asset, cash flows, and other indicators of value. Management then determines whether the remaining useful life continues to be appropriate, or whether there has been an impairment of long-lived assets based primarily upon whether expected future undiscounted cash flows are sufficient to support the recoverability of these assets. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. For the years ended March 31, 2021, 2020 and 2019, the Company did not identify any indicators of impairment of its long-lived assets |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: • Level 1 inputs—Unadjusted observable quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 inputs—Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs—Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and nonrecurring basis to determine the appropriate level to classify them for each reporting period. The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities and did not elect the fair value option for any financial assets and liabilities transacted in the years ended March 31, 2021, 2020 and 2019. |
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 years ended March 31, 202 1 , 20 20 and 201 9 , the Company believes the substantial majority of its development efforts were either in the preliminary project stage of development or in the operation stage (post-implementation), and accordingly, no costs have been capitalized during these periods. These costs are included in the accompanying consolidated statements of operations as research and development expense. Capitalized software and Cloud-computing Arrangements (CCA) The Company accounts for acquired internal-use software licenses and certain costs related to video content production related to its awareness training offering within the scope of ASC 350-40, Intangibles – Goodwill and Other – Internal-Use Software Additionally, the Company evaluates its accounting for fees paid in a CCA to determine whether the CCA includes a license to internal-use software. If the CCA includes a software license, the Company accounts for the software license as an intangible asset. Acquired software licenses are recognized and measured at cost, which includes the present value of the license obligation if the license is to be paid for over time. If the CCA does not include a software license, the Company accounts for the arrangement as a service contract (hosting arrangement) and hosting costs are generally expensed as incurred. Since the adoption of ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-24): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract on |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The Company determines the functional currency for its non-U.S. subsidiaries by reviewing the currencies in which its respective operating activities occur. The functional currency of the Company’s non-U.S. subsidiaries is generally the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (i) asset and liability accounts at period-end rates, (ii) income statement accounts at weighted-average exchange rates for the period, and (iii) shareholders’ equity accounts at historical exchange rates. Foreign exchange transaction gains and losses are included in foreign exchange income (expense) and other, net in the accompanying consolidated statements of operations. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. |
Net Income (Loss) Per Ordinary Share | 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 share options outstanding, unvested restricted share units (RSUs) and estimated employee share purchase plan (ESPP) shares, from the weighted-average number of ordinary shares outstanding as their inclusion in the computation would be anti-dilutive due to net losses incurred. 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): Year Ended March 31, 2021 2020 2019 Numerator: Net income (loss) $ 29,745 $ (2,200 ) $ (7,001 ) Denominator: Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders – basic 63,739 62,024 59,960 Dilutive effect of share equivalents resulting from share options, RSUs and ESPP shares 1,892 — — Weighted average number of ordinary shares used in computing net income (loss) per share – diluted 65,631 62,024 59,960 Net income (loss) per share applicable to ordinary shareholders: Basic $ 0.47 $ (0.04 ) $ (0.12 ) Diluted $ 0.45 $ (0.04 ) $ (0.12 ) 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): Year Ended March 31, 2021 2020 2019 Share options outstanding 3,108 6,271 6,209 Unvested RSUs 523 1,277 550 ESPP Shares 83 82 85 |
Advertising and Promotion Costs | Advertising and Promotion Costs Expenses related to advertising and promotion of solutions is charged to sales and marketing expense as incurred. The Company incurred advertising expenses of $19.5 million, $12.5 million and $12.5 million during the years ended March 31, 2021, 2020 and 2019, respectively. |
Income Taxes | Income Taxes The Company is subject to income tax in the United Kingdom, the United States and other international jurisdictions, and uses estimates in determining its provision for income taxes. The Company accounts for income taxes in accordance with ASC 740, Income Taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such position are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. As of March 31, 2021 and 2020, the Company did not have any material uncertain tax positions that would impact the Company’s tax provision if recognized. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation awards in accordance with the provisions of ASC 718, Compensation—Stock Compensation statements of operations. For service-based awards, the Company recognizes share-based compensation expense on a straight-line basis over the requisite service period of the award with actual forfeitures recognized as they occur. See Note 13 for further description of the Company’s share-based compensation plans and a summary of the share-based award activity for the year ended March 31, 2021. Share Options The Company estimates the fair value of employee share options on the date of grant using the Black-Scholes option-pricing model, which requires the use of highly subjective estimates and assumptions. The Company estimates the expected term of share options for service-based awards utilizing the “Simplified Method,” as it does not have sufficient historical share option exercise information on which to base its estimate. The Simplified Method is based on the average of the vesting tranches and the contractual life of each grant. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the share option. Since there was no public market for the Company’s ordinary shares prior to the Company’s initial public offering and as its ordinary shares have been publicly traded for a limited time, the Company determined the expected volatility for options granted based on an analysis of reported data for a peer group of companies that issue options with substantially similar terms. The expected volatility of options granted has been determined using an average of the historical volatility measures of this peer group of companies and the Company’s historical volatility. The Company uses an expected dividend rate of zero as it currently has no history or expectation of paying dividends on its ordinary shares. The fair value of the Company’s ordinary shares at the time of each share option grant is based on the closing market value of its ordinary shares on the grant date. The fair value of each share option issued under the 2015 Plan was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Year ended March 31, 2021 2020 2019 Expected term (in years) 6.1 6.1 6.1 Risk-free interest rate 0.5 % 2.1 % 2.7 % Expected volatility 44.6 % 42.6 % 41.5 % Expected dividend yield — % — % — % Grant date fair value per ordinary share $ 35.17 $ 46.29 $ 37.15 The weighted-average per share fair value of share options granted to employees during the years ended March 31, 2021, 2020 and 2019 was $15.07, $20.43 and $16.48 per share, respectively. Employee Share Purchase Plan The Company estimates the fair value of its ESPP share options on the date of grant using the Black-Scholes option-pricing model, which requires the use of highly subjective estimates and assumptions. The Company estimates the expected term of ESPP share options based on the length of each offering period, which is six months. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the ESPP share option. Expected volatility is based on an average of the historical volatility measures of the peer group of companies noted above and the Company’s historical volatility. The Company uses an expected dividend rate of zero as it currently has no history or expectation of paying dividends on its ordinary shares. The grant date fair value per ordinary share is based on the closing market value of its ordinary shares on the first day of each ESPP offering period. The first authorized offering period under the ESPP commenced on July 1, 2017. The fair value of each ESPP option grant was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Year ended March 31, 2021 2020 2019 Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 0.1 % 1.8 % 2.3 % Expected volatility 51.5 % 37.4 % 39.1 % Expected dividend yield — % — % — % Grant date fair value per ordinary share $ 48.63 $ 45.41 $ 36.69 The weighted-average per share fair value of ESPP share options granted to employees during the years ended March 31, 2021, 2020 and 2019, was $14.15, $11.73 and $9.58, respectively. RSUs For RSUs issued under the Company’s share-based compensation plans, the fair value of each grant is calculated based on the closing market value of its ordinary shares on the date of grant. |
Leases | Leases 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 9 for further information. |
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 March 31, 2021 and 2020, accumulated other comprehensive income (loss) is presented separately on the consolidated balance sheets and consists of cumulative foreign currency translation adjustments. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Recently Adopted Accounting Pronouncements On January 1, 2021, the Company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes On April 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) On April 1, 2020, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: Estimated Useful Life Computer equipment 3 to 5 Leasehold improvements Lesser of asset life or lease term Furniture and fixtures 5 Office equipment 3 |
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): Year Ended March 31, 2021 2020 2019 Numerator: Net income (loss) $ 29,745 $ (2,200 ) $ (7,001 ) Denominator: Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders – basic 63,739 62,024 59,960 Dilutive effect of share equivalents resulting from share options, RSUs and ESPP shares 1,892 — — Weighted average number of ordinary shares used in computing net income (loss) per share – diluted 65,631 62,024 59,960 Net income (loss) per share applicable to ordinary shareholders: Basic $ 0.47 $ (0.04 ) $ (0.12 ) Diluted $ 0.45 $ (0.04 ) $ (0.12 ) |
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): Year Ended March 31, 2021 2020 2019 Share options outstanding 3,108 6,271 6,209 Unvested RSUs 523 1,277 550 ESPP Shares 83 82 85 |
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: Year ended March 31, 2021 2020 2019 Expected term (in years) 6.1 6.1 6.1 Risk-free interest rate 0.5 % 2.1 % 2.7 % Expected volatility 44.6 % 42.6 % 41.5 % Expected dividend yield — % — % — % Grant date fair value per ordinary share $ 35.17 $ 46.29 $ 37.15 |
Summary of Assumptions Used in Black-Scholes Option Pricing Model to Estimate Fair Value of Shares Under the ESPP | The fair value of each ESPP option grant was estimated using the Black-Scholes option-pricing model that used the following weighted-average assumptions: Year ended March 31, 2021 2020 2019 Expected term (in years) 0.5 0.5 0.5 Risk-free interest rate 0.1 % 1.8 % 2.3 % Expected volatility 51.5 % 37.4 % 39.1 % Expected dividend yield — % — % — % Grant date fair value per ordinary share $ 48.63 $ 45.41 $ 36.69 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of March 31, 2021 2020 Prepaid expenses $ 14,370 $ 11,498 Research and development investment tax credits 3,868 2,665 Other current assets 1,793 1,982 Total prepaid expenses and other current assets $ 20,031 $ 16,145 |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following: As of March 31, 2021 2020 Computer equipment (1) $ 166,524 $ 131,920 Leasehold improvements 33,452 34,031 Furniture and fixtures 5,573 5,793 Office equipment 2,339 2,084 207,888 173,828 Less: Accumulated depreciation and amortization (1) (114,997 ) (88,650 ) Property and equipment, net $ 92,891 $ 85,178 ( 1 ) Includes property and equipment acquired under finance leases: As of March 31, 2021 2020 Computer equipment $ 4,001 $ 4,714 Less: Accumulated amortization (3,694 ) (3,407 ) $ 307 $ 1,307 |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of March 31, 2021 2020 Accrued payroll and related benefits $ 32,094 $ 23,465 Accrued taxes payable 7,587 5,809 Restructuring liability 398 — Other accrued expenses 14,597 12,333 Total accrued expenses and other current liabilities $ 54,676 $ 41,607 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Liability Balance | The following is a rollforward of the Company’s restructuring liability balance: Severance and related costs Balance as of March 31, 2020 $ — Restructuring charges 3,655 Cash payments (2,866 ) Other adjustments (391 ) Balance as of March 31, 2021 $ 398 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
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 only 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): Year ended March 31, 2019 Revenue $ 340,824 Net loss (7,729 ) Basic and diluted net loss per share $ (0.13 ) Weighted average number of ordinary shares outstanding Basic and diluted 59,960 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Balance | The following is a rollforward of the Company’s goodwill balance for each of the periods presented: Year ended March 31, 2021 2020 Beginning balance $ 150,525 $ 107,575 Goodwill acquired 14,143 42,927 Effect of foreign exchange rates 9,284 23 Ending balance $ 173,952 $ 150,525 |
Schedule of Purchased Intangible Assets | Purchased intangible assets consisted of the following: Weighted- Average March 31, 2021 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 7 $ 39,180 $ (9,114 ) $ 30,066 Customer relationships 4 984 (318 ) 666 Capitalized software and other (1) (2) 3 25,161 (12,700 ) 12,461 $ 65,325 $ (22,132 ) $ 43,193 Weighted- Average March 31, 2020 Remaining Gross Net Useful Life Carrying Accumulated Carrying (in years) Value Amortization Value Developed technology 8 $ 33,269 $ (4,547 ) $ 28,722 Customer relationships 5 771 (159 ) 612 Trade names N/A 41 (41 ) — Capitalized software and other (1) (2) 3 16,849 (7,789 ) 9,060 $ 50,930 $ (12,536 ) $ 38,394 (1) As of March 31, 2021 and 2020, the net carrying value of capitalized software and other includes $2.1 million and $1.4 million, respectively of costs capitalized related to video production costs. See Note 2 for further information. (2) As of March 31, 2021 and 2020, the net carrying value of capitalized software and other includes $0.3 million and $0.2 million, respectively 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 March 31, 2021 was as follows: Purchased Intangible Capitalized Assets Software 2022 $ 4,493 $ 5,039 2023 4,493 3,837 2024 4,433 2,078 2025 4,355 1,114 2026 4,278 347 Thereafter 8,680 46 Total $ 30,732 $ 12,461 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis | The following table summarizes financial assets measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of March 31, 2021 and 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 15,366 $ — $ 15,366 March 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) Total Assets: Money market funds $ 17,495 $ — $ 17,495 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Year ended March 31, 2021 2020 Short-term lease cost $ 169 $ 308 Variable lease cost 6,554 4,144 Operating lease cost 36,449 37,906 Finance lease cost: Amortization of lease assets 1,000 1,179 Interest on lease liabilities 43 93 Total finance lease cost $ 1,043 $ 1,272 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 39,580 $ 32,816 Operating cash outflows from finance leases $ 43 $ 74 Financing cash outflows from finance leases $ 1,057 $ 844 |
Schedule of Weighted-average Remaining Lease Term and Discount Rate | Weighted-average remaining lease term and discount rate: As of March 31, As of March 31, 2021 2020 Weighted-average remaining lease term (in years) Operating leases 5.76 6.46 Finance leases 0.35 1.31 Weighted-average discount rate Operating leases 4.58 % 4.74 % Finance leases 4.83 % 4.83 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2021 were as follows: Year Ending March 31, Operating Leases Finance Leases 2022 $ 39,328 $ 326 2023 31,795 — 2024 23,149 — 2025 21,736 — 2026 17,437 — Thereafter 32,281 — Total lease payments 165,726 326 Less: imputed interest (19,963 ) (3 ) Total lease liabilities $ 145,763 $ 323 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Principal Payment Obligations | Future minimum principal payment obligations under the Term Loan are as follows: Fiscal Year Ending March 31, Debt 2022 $ 9,375 2023 10,000 2024 85,000 Total minimum debt payments 104,375 Less: Debt issuance costs (614 ) Less: Current portion of long-term debt (9,090 ) Long-term debt $ 94,671 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Ordinary Share Reserved for Future Issuance under 2015 Plan, Historical Plans and ESPP | The following ordinary shares were reserved for future issuance under the 2015 Plan, Historical Plans and ESPP (as defined below in Note 13): As of March 31, 2021 Options outstanding under share option plans 5,322,599 Unvested RSUs 2,630,359 Options and awards available for future grant under the 2015 Plan 11,311,233 Shares reserved for issuance under ESPP 579,973 Total authorized ordinary shares reserved for future issuance 19,844,164 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Expense Recognized in Statements of Operations | Share-based compensation expense recognized under the 2015 Plan, Historical Plans and ESPP in the accompanying consolidated statements of operations was as follows: Year ended March 31, 2021 2020 2019 Cost of revenue $ 4,619 $ 3,445 $ 1,684 Research and development 15,446 10,900 6,199 Sales and marketing 17,380 13,141 7,856 General and administrative 16,203 12,058 10,215 Total share-based compensation expense $ 53,648 $ 39,544 $ 25,954 |
Schedule of Share-Based Compensation, Stock Options, Activity | Share option activity under the 2015 Plan and Historical Plans for the year ended March 31, 2021 was as follows: Number of Awards Weighted Exercise Price Weighted Remaining Contractual Term (in years) Aggregate Intrinsic Outstanding as of March 31, 2020 6,271,111 $ 31.61 7.55 $ 47,621 Options granted 878,257 $ 35.17 Options exercised (1,324,659 ) $ 20.88 Options forfeited and cancelled (502,110 ) $ 39.60 Outstanding as of March 31, 2021 5,322,599 $ 34.13 6.81 $ 43,683 Exercisable as of March 31, 2021 2,908,817 $ 29.40 5.87 $ 36,050 |
Schedule of Share-Based Compensation, RSUs, Activity | RSU activity under the 2015 Plan for the year ended March 31, 2021 was as follows: Number of Awards Weighted Average Grant Date Fair Value Intrinsic Value (in thousands) Unvested RSUs as of March 31, 2020 1,276,840 $ 43.64 $ 45,072 RSUs granted 2,089,168 $ 36.33 RSUs vested (402,149 ) $ 42.22 RSUs forfeited (333,500 ) $ 39.22 Unvested RSUs as of March 31, 2021 2,630,359 $ 38.62 $ 105,767 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Area | The Company allocates, for the purpose of geographic data reporting, its revenue based upon the location of the contracting subsidiary. Total revenue by geographic area was as follows: Year ended March 31, 2021 2020 2019 United States $ 256,979 $ 219,423 $ 169,286 United Kingdom 143,978 123,620 103,900 South Africa 51,601 51,549 46,275 Other 48,841 32,371 20,916 Total revenue $ 501,399 $ 426,963 $ 340,377 |
Summary of Property and Equipment, Net by Geographic Location | Property and equipment, net by geographic location consisted of the following: As of March 31, 2021 2020 United States $ 40,129 $ 39,193 United Kingdom 28,892 29,644 South Africa 7,942 7,093 Other 15,928 9,248 Total $ 92,891 $ 85,178 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Income (Loss) Before Income Taxes | Income (loss) before income taxes consisted of the following: Year ended March 31, 2021 2020 2019 United Kingdom $ 15,487 $ (20,528 ) $ (4,626 ) Foreign 15,954 20,687 (374 ) Income (loss) before income taxes $ 31,441 $ 159 $ (5,000 ) |
Schedule of Provision for Income Taxes | The provision for income taxes in the accompanying consolidated financial statements is comprised of the following: As of March 31, 2021 2020 2019 Current tax expense: Foreign $ 2,536 $ 2,939 $ 3,493 Total current tax expense 2,536 2,939 3,493 Deferred tax expense (benefit): Domestic — — (578 ) Foreign (840 ) (580 ) (914 ) Total deferred tax benefit (840 ) (580 ) (1,492 ) Total provision for income taxes $ 1,696 $ 2,359 $ 2,001 |
Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate | The reconciliation of the United Kingdom statutory tax rate to the Company’s effective tax rate included in the accompanying consolidated statements of operations is as follows: Year ended March 31, 2021 2020 2019 Tax at statutory rate 19.0 % 19.0 % 19.0 % U.S. state taxes, net of federal (0.2 ) 558.0 31.1 Foreign rate differential 1.0 291.5 26.3 Meals and entertainment 0.2 432.6 (11.4 ) Branch income 0.1 (69.9 ) (0.6 ) Share-based compensation (4.4 ) (2,341.9 ) 172.3 Tax credits (3.1 ) (375.5 ) 7.7 Unremitted earnings 0.4 101.3 (3.8 ) Change in valuation allowance (6.6 ) (1,456.8 ) (249.9 ) Deferred tax true-ups 1.9 116.2 (3.5 ) Tax reserves 2.7 3,147.4 (4.9 ) Provision to return 0.6 37.6 (0.1 ) Withholding taxes 2.4 323.5 (2.6 ) Non-deductible expenses 0.4 197.7 (5.2 ) Deferred tax rate change (9.4 ) 473.1 (6.3 ) Acquisition-related costs 0.4 91.7 (7.6 ) Foreign exchange — (59.5 ) — Other — (2.4 ) (0.5 ) Effective Tax Rate 5.4 % 1,483.6 % (40.0 )% |
Components of Deferred Tax Assets and (Liabilities) | Deferred tax assets and liabilities reflect the net tax effects of net operating loss carryovers and the temporary differences between the assets and liabilities carrying value for financial reporting and the amounts used for income tax purposes. T As of March 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 30,438 $ 30,879 Share-based compensation 14,418 9,501 Deferred revenue 1,891 2,315 Fixed assets 5,275 4,718 Lease liability 20,266 19,622 Accrued compensation 3,527 1,786 Income tax credits 2,719 2,311 Other 1,612 2,042 Gross deferred tax assets 80,146 73,174 Deferred tax liabilities: Fixed assets (7,818 ) (7,414 ) Unremitted earnings (574 ) (362 ) Intangible assets (5,308 ) (6,453 ) Capitalized commissions (12,830 ) (9,751 ) Right-of-use asset (18,537 ) (17,113 ) Other (737 ) (262 ) Gross deferred tax liabilities (45,804 ) (41,355 ) Valuation allowance (36,746 ) (34,224 ) Deferred tax liabilities, net $ (2,404 ) $ (2,405 ) |
Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year ended March 31, 2021 2020 Beginning balance $ 10,355 $ 6,016 Additions based on tax positions related to current year 324 535 Additions for tax positions of prior years 1,242 4,235 Additions (reductions) due to change in foreign exchange rate 937 (431 ) Expiration of statutes of limitation (307 ) — Reductions due to tax positions of prior years (169 ) — Ending balance $ 12,382 $ 10,355 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Mar. 31, 2021USD ($)Customer$ / shares | Mar. 31, 2020USD ($)Customer$ / shares | Mar. 31, 2019USD ($)Customer$ / shares | |
Summary Of Significant Accounting Policies [Line Items] | |||
Reclassified from accrued expenses and other liabilities to deferred income tax benefit | $ 600,000 | $ 500,000 | |
Reclassified from other assets to deferred income tax benefit | 1,000,000 | ||
Cash and cash equivalents | $ 292,949,000 | 173,958,000 | |
Realized gains or losses on investments | 0 | 0 | 0 |
Investments hold | 0 | 0 | 0 |
Impairments of available-for-sale securities | $ 0 | $ 0 | $ 0 |
Maximum percentage of revenue contribution from professional services and other revenue | 5.00% | 5.00% | 5.00% |
Upfront ingestion fee to be recognized over estimated customer benefit period | 6 years | ||
Number of customers representing more than 10% of accounts receivable | Customer | 0 | 0 | |
Number of customers representing more than 10% of revenue | Customer | 0 | 0 | 0 |
Investments | $ 0 | $ 0 | |
Credit loss expense | $ 400,000 | 300,000 | $ 200,000 |
Annual goodwill impairment test date | January 1st of each year | ||
Impairment of long-lived assets | $ 0 | 0 | 0 |
Capitalized costs | 0 | 0 | 0 |
Implementation costs capitalized | 2,900,000 | 2,900,000 | |
Advertising expenses incurred | 19,500,000 | 12,500,000 | $ 12,500,000 |
Uncertain tax positions impact to net tax provision | $ 0 | $ 0 | |
Weighted-average per share fair value of share options granted to employees | $ / shares | $ 15.07 | $ 20.43 | $ 16.48 |
2015 Employee Share Purchase Plan [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Expected dividend rate | 0.00% | ||
Weighted-average per share fair value of share options granted to employees | $ / shares | $ 14.15 | $ 11.73 | $ 9.58 |
Share Options [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Expected dividend rate | 0.00% | ||
Capitalized Software Video Production Costs [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated Useful Life (in years) | 5 years | ||
ASU 2014-09 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Amortization period of deferred contract costs | 6 years | ||
Accounting Standards Update 2019-12 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, immaterial effect | true | ||
Accounting Standards Update 2016-13 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted | true | ||
Change in accounting principle, accounting standards update, adoption date | Apr. 1, 2020 | ||
Change in accounting principle, accounting standards update, immaterial effect | true | ||
Accounting Standards Update 2017-04 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted | true | ||
Change in accounting principle, accounting standards update, adoption date | Apr. 1, 2020 | ||
Change in accounting principle, accounting standards update, immaterial effect | true |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Mar. 31, 2021 | |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Lesser of asset life or lease term |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule for Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 29,745 | $ (2,200) | $ (7,001) |
Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders – basic | 63,739 | 62,024 | 59,960 |
Dilutive effect of share equivalents resulting from share options, RSUs and ESPP shares | 1,892 | ||
Weighted average number of ordinary shares used in computing net income (loss) per share – diluted | 65,631 | 62,024 | 59,960 |
Net income (loss) per share applicable to ordinary shareholders: | |||
Basic | $ 0.47 | $ (0.04) | $ (0.12) |
Diluted | $ 0.45 | $ (0.04) | $ (0.12) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Dilutive Ordinary Shares Excluded from Calculation of Diluted Weighted-Average Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
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 | 3,108 | 6,271 | 6,209 |
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 | 523 | 1,277 | 550 |
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 | 83 | 82 | 85 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Weighted-Average Assumption Utilized to Determine Fair Value of Option (Detail) - Share Options [Member] - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 0.50% | 2.10% | 2.70% |
Expected volatility | 44.60% | 42.60% | 41.50% |
Expected dividend yield | 0.00% | ||
Grant date fair value per ordinary share | $ 35.17 | $ 46.29 | $ 37.15 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Assumptions Used in Black-Scholes Option Pricing Model to Estimate Fair Value of Shares Under the ESPP (Detail) - 2015 Employee Share Purchase Plan [Member] - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.10% | 1.80% | 2.30% |
Expected volatility | 51.50% | 37.40% | 39.10% |
Expected dividend yield | 0.00% | ||
Grant date fair value per ordinary share | $ 48.63 | $ 45.41 | $ 36.69 |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Revenue recognized included in deferred revenue | $ 195.6 | $ 158.8 |
Contracted revenue not yet recognized | $ 117.5 | $ 97.2 |
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 year, 45% in years two and three, with the remaining balance recognized thereafter. |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Additional Information (Detail 1) | Mar. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
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: 2022-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, percentage | 45.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 14,370 | $ 11,498 |
Research and development investment tax credits | 3,868 | 2,665 |
Other current assets | 1,793 | 1,982 |
Total prepaid expenses and other current assets | $ 20,031 | $ 16,145 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 207,888 | $ 173,828 |
Less: Accumulated depreciation and amortization | (114,997) | (88,650) |
Property and equipment, net | 92,891 | 85,178 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 166,524 | 131,920 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 33,452 | 34,031 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,573 | 5,793 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,339 | $ 2,084 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment, Net (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 207,888 | $ 173,828 |
Less: Accumulated depreciation and amortization | (114,997) | (88,650) |
Property and equipment, net | 92,891 | 85,178 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,001 | 4,714 |
Less: Accumulated depreciation and amortization | (3,694) | (3,407) |
Property and equipment, net | $ 307 | $ 1,307 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization | $ 28,600 | $ 25,200 | $ 25,200 |
Depreciation and amortization related to property and equipment acquired under finance leases | $ 1,000 | $ 1,179 | $ 1,200 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related benefits | $ 32,094 | $ 23,465 |
Accrued taxes payable | 7,587 | 5,809 |
Restructuring liability | 398 | |
Other accrued expenses | 14,597 | 12,333 |
Total accrued expenses and other current liabilities | $ 54,676 | $ 41,607 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | Jan. 28, 2021 | Mar. 31, 2021 |
Restructuring And Related Activities [Abstract] | ||
Restructuring plan, percentage reduction in workforce | 4.00% | |
Total pre-tax restructuring charges | $ 3.3 | |
Restructuring charges | 3.7 | |
Restructuring charges, other adjustments | $ 0.4 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Liability Balance (Detail) $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring charges | $ 3,700 |
Other adjustments | 400 |
Severance and Related Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring charges | 3,655 |
Cash payments | (2,866) |
Other adjustments | (391) |
Balance | $ 398 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 29, 2020 | Jan. 03, 2020 | Nov. 13, 2019 | Jan. 25, 2019 | Jul. 31, 2018 | Jul. 09, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||||||
Net of cash acquired | $ 16,970 | $ 45,280 | $ 115,673 | ||||||
Goodwill | $ 173,952 | $ 150,525 | $ 107,575 | ||||||
Developed Technology [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated Useful Life (in years) | 7 years | 8 years | |||||||
Customer Relationships [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated Useful Life (in years) | 4 years | 5 years | |||||||
eTorch Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 3,800 | ||||||||
Goodwill | 14,100 | ||||||||
eTorch Inc. [Member] | Developed Technology [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 3,500 | ||||||||
Estimated Useful Life (in years) | 9 years 8 months 12 days | ||||||||
eTorch Inc. [Member] | Customer Relationships [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 200 | ||||||||
Estimated Useful Life (in years) | 6 years 8 months 12 days | ||||||||
eTorch Inc. [Member] | Patent Licenses [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 100 | ||||||||
Estimated Useful Life (in years) | 5 years | ||||||||
eTorch Inc. [Member] | Delaware [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, effective date of acquisition | Jul. 29, 2020 | ||||||||
Cash payment | $ 17,000 | ||||||||
Net of cash acquired | $ 400 | ||||||||
Segasec Labs Ltd. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 6,800 | ||||||||
Goodwill | 24,000 | ||||||||
Segasec Labs Ltd. [Member] | Developed Technology [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 6,700 | ||||||||
Estimated Useful Life (in years) | 8 years 3 months 18 days | ||||||||
Segasec Labs Ltd. [Member] | Customer Relationships [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 100 | ||||||||
Estimated Useful Life (in years) | 6 years 3 months 18 days | ||||||||
Segasec Labs Ltd. [Member] | Israel [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, effective date of acquisition | Jan. 3, 2020 | ||||||||
Cash payment | $ 24,200 | ||||||||
Net of cash acquired | $ 4,300 | ||||||||
Ownership interest before acquisition | 15.40% | ||||||||
Fair value of previously held asset | $ 3,000 | ||||||||
DMARC Analyzer B.V. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated fair values of identifiable intangible assets, amount | $ 3,400 | ||||||||
Goodwill | 18,900 | ||||||||
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 | ||||||||
DMARC Analyzer B.V. [Member] | Netherlands [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, effective date of acquisition | Nov. 13, 2019 | ||||||||
Cash payment | $ 21,100 | ||||||||
Net of cash acquired | $ 400 | ||||||||
Solebit Labs Ltd. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Net of cash acquired | $ 85,258 | ||||||||
Estimated fair values of identifiable intangible assets, amount | 16,964 | ||||||||
Goodwill | 74,469 | ||||||||
Fair value of previously held asset | 828 | ||||||||
Purchase price | 96,496 | ||||||||
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] | Israel [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash payment | $ 95,700 | ||||||||
Business acquisition, agreement date of acquisition | Jul. 31, 2018 | ||||||||
Purchase price | $ 96,500 | ||||||||
Ataata [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
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 | ||||||||
Ataata [Member] | United States [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, effective date of acquisition | Jul. 9, 2018 | ||||||||
Cash payment | $ 23,200 | ||||||||
Net of cash acquired | $ 1,900 | ||||||||
Simply Migrate [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, effective date of acquisition | Jan. 25, 2019 | ||||||||
Cash payment | $ 7,200 | ||||||||
Net of cash acquired | 100 | ||||||||
Estimated fair values of identifiable intangible assets, amount | 3,300 | ||||||||
Goodwill | $ 4,300 | ||||||||
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 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Purchase consideration: | ||||
Total cash paid, net of acquired cash | $ 16,970 | $ 45,280 | $ 115,673 | |
Fair value of assets acquired and liabilities assumed: | ||||
Goodwill | $ 173,952 | $ 150,525 | $ 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 | Mar. 31, 2021 | Mar. 31, 2020 |
Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 7 years | 8 years | |
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life (in years) | 4 years | 5 years | |
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] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Business Acquisition [Line Items] | |
Revenue | $ 340,824 |
Net loss | $ (7,729) |
Basic and diluted net loss per share | $ / shares | $ (0.13) |
Weighted average number of ordinary shares outstanding | |
Basic and diluted | shares | 59,960 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill Balance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill Roll Forward | ||
Beginning balance | $ 150,525 | $ 107,575 |
Goodwill acquired | 14,143 | 42,927 |
Effect of foreign exchange rates | 9,284 | 23 |
Ending balance | $ 173,952 | $ 150,525 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Value | $ 65,325 | $ 50,930 |
Accumulated Amortization | (22,132) | (12,536) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 43,193 | $ 38,394 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 7 years | 8 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 39,180 | $ 33,269 |
Accumulated Amortization | (9,114) | (4,547) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 30,066 | $ 28,722 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 4 years | 5 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 984 | $ 771 |
Accumulated Amortization | (318) | (159) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 666 | $ 612 |
Capitalized Software and Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life (in years) | 3 years | 3 years |
Finite-Lived Intangible Assets, Gross Carrying Value | $ 25,161 | $ 16,849 |
Accumulated Amortization | (12,700) | (7,789) |
Finite-Lived Intangible Assets, Net Carrying Value | $ 12,461 | 9,060 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Value | 41 | |
Accumulated Amortization | $ (41) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Video Production Costs [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Capitalized software and other cost | $ 2.1 | $ 1.4 |
IP Addresses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Capitalized software and other cost | $ 0.3 | $ 0.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 9.5 | $ 7 | $ 4.8 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Expense of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net Carrying Value | $ 43,193 | $ 38,394 |
Purchased Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
2022 | 4,493 | |
2023 | 4,493 | |
2024 | 4,433 | |
2025 | 4,355 | |
2026 | 4,278 | |
Thereafter | 8,680 | |
Finite-Lived Intangible Assets, Net Carrying Value | 30,732 | |
Capitalized Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
2022 | 5,039 | |
2023 | 3,837 | |
2024 | 2,078 | |
2025 | 1,114 | |
2026 | 347 | |
Thereafter | 46 | |
Finite-Lived Intangible Assets, Net Carrying Value | $ 12,461 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
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 | $ 0 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis (Detail) - Money Market Funds [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Assets: | ||
Total assets | $ 15,366 | $ 17,495 |
Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) [Member] | ||
Assets: | ||
Total assets | $ 15,366 | $ 17,495 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | 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. | |
Leases not yet commenced, description | the Company had additional leases with future lease payments of $10.5 million, the terms of which have not yet commenced. These leases are expected to commence in the next fiscal year with lease terms of approximately three to five years. | |
Leases not yet commenced, value | $ 10.5 | |
Rent expense | $ 5.3 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating and finance leases, remaining lease term | 1 year | |
Leases, expected to commence, lease term | 3 years | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating and finance leases, remaining lease term | 8 years | |
Operating and finance leases, renewal term | 10 years | |
Leases, expected to commence, lease term | 5 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | |||
Short-term lease cost | $ 169 | $ 308 | |
Variable lease cost | 6,554 | 4,144 | |
Operating lease cost | 36,449 | 37,906 | |
Finance lease cost: | |||
Amortization of lease assets | 1,000 | 1,179 | $ 1,200 |
Interest on lease liabilities | 43 | 93 | |
Total finance lease cost | $ 1,043 | $ 1,272 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflows from operating leases | $ 39,580 | $ 32,816 | |
Operating cash outflows from finance leases | 43 | 74 | |
Financing cash outflows from finance leases | $ 1,057 | $ 844 | $ 1,275 |
Leases - Schedule of Weighted-a
Leases - Schedule of Weighted-average Remaining Lease Term and Discount Rate (Detail) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Operating leases, Weighted-average remaining lease term | 5 years 9 months 3 days | 6 years 5 months 15 days |
Finance leases, Weighted-average remaining lease term | 4 months 6 days | 1 year 3 months 21 days |
Operating leases, Weighted-average discount rate | 4.58% | 4.74% |
Finance leases, Weighted-average discount rate | 4.83% | 4.83% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 39,328 |
2023 | 31,795 |
2024 | 23,149 |
2025 | 21,736 |
2026 | 17,437 |
Thereafter | 32,281 |
Total lease payments | 165,726 |
Less: imputed interest | (19,963) |
Total lease liabilities | 145,763 |
Finance Leases | |
2022 | 326 |
Total lease payments | 326 |
Less: imputed interest | (3) |
Total lease liabilities | $ 323 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jul. 23, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 86,900,000 | $ 93,800,000 | ||
Senior Secured Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | 614,000 | 900,000 | ||
Outstanding borrowings | 104,375,000 | |||
Senior Secured Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 2,300,000 | 3,900,000 | $ 3,000,000 | |
Outstanding borrowings | 17,500,000 | 0 | ||
Amount available under credit facility | 30,300,000 | 48,000,000 | ||
Senior Secured Revolving Credit Facility [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | 2,200,000 | 2,000,000 | ||
Senior Secured Revolving Credit Facility [Member] | Other Assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 300,000 | $ 500,000 | ||
Credit Agreement with Certain Lenders [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility term | 5 years | |||
Credit facility maturity date | Jul. 23, 2023 | |||
Credit facility outstanding debt | $ 0 | |||
Credit Agreement with Certain Lenders [Member] | LIBOR Plus [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility current interest rate | 1.375% | 1.375% | ||
Credit Agreement with Certain Lenders [Member] | Minimum [Member] | LIBOR Plus [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate | 1.375% | |||
Credit Agreement with Certain Lenders [Member] | Maximum [Member] | LIBOR Plus [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate | 1.875% | |||
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 | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Less: Current portion of long-term debt | $ (9,090) | $ (6,573) |
Long-term debt | 94,671 | 86,258 |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
2022 | 9,375 | |
2023 | 10,000 | |
2024 | 85,000 | |
Total minimum debt payments | 104,375 | |
Less: Debt issuance costs | (614) | $ (900) |
Less: Current portion of long-term debt | (9,090) | |
Long-term debt | $ 94,671 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Ordinary Share Reserved for Future Issuance (Detail) - shares | Mar. 31, 2021 | Mar. 31, 2020 |
Class of Stock [Line Items] | ||
Options outstanding under share option plans | 5,322,599 | 6,271,111 |
Unvested RSUs | 2,630,359 | |
Total authorized ordinary shares reserved for future issuance | 19,844,164 | |
ESPP [Member] | ||
Class of Stock [Line Items] | ||
Total authorized ordinary shares reserved for future issuance | 579,973 | |
2015 Plan [Member] | ||
Class of Stock [Line Items] | ||
Options and awards available for future grant under the 2015 Plan | 11,311,233 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021USD ($)CompensationPlanInstallmentshares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of share-based compensation plans | CompensationPlan | 2 | ||
Ordinary shares reserved for future issuance | shares | 19,844,164 | ||
Employee share option agreements, modification expense | $ 3,200 | ||
Total intrinsic value of options exercised | $ 33,300 | $ 40,000 | 66,400 |
Proceeds from exercises of share-based awards | 27,600 | 20,100 | 21,400 |
Share-based compensation expense recognized | 53,648 | $ 39,544 | $ 25,954 |
Share Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ 36,000 | ||
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 2 years 2 months 23 days | ||
Unvested Restricted Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ 77,900 | ||
Unrecognized share-based compensation expense, net of estimated forfeiture, period for recognition | 2 years 9 months 14 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 Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Ordinary shares reserved for future issuance | shares | 5,500,000 | ||
Increase in number of shares reserved and available for issuance, percentage | 5.00% | ||
Share-based compensation arrangement by share-based payment award, term | 10 years | ||
Share-based compensation arrangement by share-based payment award, vesting period | 4 years | ||
2015 Employee Share Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, term | 6 months | ||
Ordinary shares reserved and authorized for issuance | shares | 1,100,000 | ||
Authorized payroll deductions percentage | 10.00% | ||
Percentage of fair market value of shares to be considered as share price | 85.00% | ||
Number of shares issued in connection with ESPP | shares | 178,000 | 165,000 | 138,000 |
Cash proceeds from shares purchased in connection with ESPP | $ 6,400 | $ 5,300 | $ 3,600 |
Share-based compensation expense recognized | $ 2,400 | $ 1,800 | $ 1,300 |
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 - Shar
Share-Based Compensation - Share-Based Compensation Expense Recognized in Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 53,648 | $ 39,544 | $ 25,954 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 4,619 | 3,445 | 1,684 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 15,446 | 10,900 | 6,199 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 17,380 | 13,141 | 7,856 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 16,203 | $ 12,058 | $ 10,215 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation, Stock Options, Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Awards, Beginning balance | 6,271,111 | |
Number of Awards, Options granted | 878,257 | |
Number of Awards, Options exercised | (1,324,659) | |
Number of Awards, Options forfeited and cancelled | (502,110) | |
Number of Awards, Ending balance | 5,322,599 | 6,271,111 |
Number of Awards, Exercisable | 2,908,817 | |
Weighted Average Exercise Price, Beginning balance | $ 34.13 | $ 31.61 |
Weighted Average Exercise Price, Options granted | 35.17 | |
Weighted Average Exercise Price, Options exercised | 20.88 | |
Weighted Average Exercise Price, Options forfeited and cancelled | $ 39.60 | |
Weighted Average Exercise Price, Ending balance | 34.13 | |
Weighted Average Exercise Price Exercisable | $ 29.40 | |
Weighted Average Remaining Contractual Term, Outstanding | 6 years 9 months 21 days | 7 years 6 months 18 days |
Weighted Average Remaining Contractual Term, Exercisable | 5 years 10 months 13 days | |
Aggregate Intrinsic Value, Outstanding | $ 43,683 | $ 47,621 |
Aggregate Intrinsic Value, Exercisable | $ 36,050 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Share-Based Compensation, RSUs, Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($)$ / 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 Begining balance | |
Number of Awards, Unvested RSUs, Ending balance | 2,630,359 |
Restricted Share Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Awards Unvested, RSUs Begining balance | 1,276,840 |
Number of Awards, RSUs granted | 2,089,168 |
Number of Awards, RSUs vested | (402,149) |
Number of Awards, RSUs forfeited | (333,500) |
Number of Awards, Unvested RSUs, Ending balance | 2,630,359 |
Weighted Average Grant Date Fair Value, Unvested RSUs, Beginning balance | $ / shares | $ 43.64 |
Weighted Average Grant Date Fair Value, RSUs granted | $ / shares | 36.33 |
Weighted Average Grant Date Fair Value, RSUs vested | $ / shares | 42.22 |
Weighted Average Grant Date Fair Value, RSUs forfeited | $ / shares | 39.22 |
Weighted Average Grant Date Fair Value, Unvested RSUs, Ending balance | $ / shares | $ 38.62 |
Intrinsic Value, Unvested RSUs, Beginning balance | $ | $ 45,072 |
Intrinsic Value, Unvested RSUs, Ending Balance | $ | $ 105,767 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Security Incident [Member] | |||
Commitments And Contingencies [Line Items] | |||
Pre-tax expenses of security incident, net of anticipated insurance recoveries | $ 0.8 | ||
Patented Technology [Member] | |||
Commitments And Contingencies [Line Items] | |||
Incremental expense | $ 2.7 | $ 1 | |
Aggregate payment of litigation settlement | 5.9 | ||
Remaining amortization expense | $ 2.2 | ||
Weighted-Average Remaining Useful Life (in years) | 3 years 6 months |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contributions to 401(k) plan by employer | $ 2.1 | $ 1.6 | $ 1.2 |
Contribution expense | $ 0.4 | 0.4 | |
United Kingdom [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Additional contribution percentage by the company | 3.50% | ||
Contribution expense | $ 2.3 | $ 1.9 | $ 1.5 |
South Africa [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Additional contribution percentage by the company | 5.00% | ||
Germany [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Additional contribution percentage by the company | 3.00% | ||
Netherlands [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Additional contribution percentage by the company | 3.00% | ||
Canada [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Additional contribution percentage by the company | 2.00% |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment and Geographic Inform_4
Segment and Geographic Information - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | $ 501,399 | $ 426,963 | $ 340,377 |
United States [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 256,979 | 219,423 | 169,286 |
United Kingdom [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 143,978 | 123,620 | 103,900 |
South Africa [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | 51,601 | 51,549 | 46,275 |
Other [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue | $ 48,841 | $ 32,371 | $ 20,916 |
Segment and Geographic Inform_5
Segment and Geographic Information - Summary of Property and Equipment, Net by Geographic Location (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 92,891 | $ 85,178 |
United States [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 40,129 | 39,193 |
United Kingdom [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 28,892 | 29,644 |
South Africa [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | 7,942 | 7,093 |
Other [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, plant and equipment, net | $ 15,928 | $ 9,248 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United Kingdom | $ 15,487 | $ (20,528) | $ (4,626) |
Foreign | 15,954 | 20,687 | (374) |
Income (loss) before income taxes | $ 31,441 | $ 159 | $ (5,000) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current tax expense: | |||
Foreign | $ 2,536 | $ 2,939 | $ 3,493 |
Total current tax expense | 2,536 | 2,939 | 3,493 |
Deferred tax expense (benefit): | |||
Domestic | 0 | 0 | (578) |
Foreign | (840) | (580) | (914) |
Total deferred tax benefit | (840) | (580) | (1,492) |
Total provision for income taxes | $ 1,696 | $ 2,359 | $ 2,001 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 19.00% | 19.00% | 19.00% |
U.S. state taxes, net of federal | (0.20%) | 558.00% | 31.10% |
Foreign rate differential | 1.00% | 291.50% | 26.30% |
Meals and entertainment | 0.20% | 432.60% | (11.40%) |
Branch income | 0.10% | (69.90%) | (0.60%) |
Share-based compensation | (4.40%) | (2341.90%) | 172.30% |
Tax credits | (3.10%) | (375.50%) | 7.70% |
Unremitted earnings | 0.40% | 101.30% | (3.80%) |
Change in valuation allowance | (6.60%) | (1456.80%) | (249.90%) |
Deferred tax true-ups | 1.90% | 116.20% | (3.50%) |
Tax reserves | 2.70% | 3147.40% | (4.90%) |
Provision to return | 0.60% | 37.60% | (0.10%) |
Withholding taxes | 2.40% | 323.50% | (2.60%) |
Non-deductible expenses | 0.40% | 197.70% | (5.20%) |
Deferred tax rate change | (9.40%) | 473.10% | (6.30%) |
Acquisition-related costs | 0.40% | 91.70% | (7.60%) |
Foreign exchange | (59.50%) | ||
Other | (2.40%) | (0.50%) | |
Effective Tax Rate | 5.40% | 1483.60% | (40.00%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Line Items] | |||
Tax at statutory rate | 19.00% | 19.00% | 19.00% |
Recognized tax benefit | $ 1,696,000 | $ 2,359,000 | $ 2,001,000 |
Liabilities for uncertain tax positions | 12,400,000 | 10,400,000 | |
Liabilities for uncertain tax positions, if recognized having impact on effective tax rate | 0 | $ 0 | |
Unremitted foreign earnings | 59,200,000 | ||
Unremitted foreign earnings for income taxes have been provided | 16,700,000 | ||
Unremitted foreign earnings for income taxes have not been provided | $ 42,500,000 | ||
U. K. [Member] | |||
Income Taxes [Line Items] | |||
Tax at statutory rate | 19.00% | 17.00% | |
U. K. [Member] | Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 68,600,000 | ||
Tax Credit Carryforward, Amount | 2,100,000 | ||
U.S. Federal [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 63,300,000 | ||
U.S. Federal [Member] | Expires at Various Dates [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 39,200,000 | ||
Net operating loss carryforwards, expiration year | 2038 | ||
U.S. Federal [Member] | Do Not Expire [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 24,100,000 | ||
U.S. State [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 34,300,000 | ||
Net operating loss carryforwards, expiration year | 2041 | ||
Australian [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 26,600,000 | ||
German [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 10,300,000 | ||
Israeli [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 8,000,000 | ||
Tax Credit Carryforward, Amount | $ 500,000 | ||
Israeli [Member] | Minimum [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration year | 2024 | ||
Israeli [Member] | Maximum [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration year | 2026 | ||
Canadian [Member] | Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 2,200,000 | ||
Net operating loss carryforwards, expiration year | 2041 | ||
ASU 2016-09 [Member] | |||
Income Taxes [Line Items] | |||
Net increase in valuation allowance | $ 2,500,000 | ||
MessageControl [Member] | |||
Income Taxes [Line Items] | |||
Recognized tax benefit | $ (700,000) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and (Liabilities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 30,438 | $ 30,879 |
Share-based compensation | 14,418 | 9,501 |
Deferred revenue | 1,891 | 2,315 |
Fixed assets | 5,275 | 4,718 |
Lease liability | 20,266 | 19,622 |
Accrued compensation | 3,527 | 1,786 |
Income tax credits | 2,719 | 2,311 |
Other | 1,612 | 2,042 |
Gross deferred tax assets | 80,146 | 73,174 |
Deferred tax liabilities: | ||
Fixed assets | (7,818) | (7,414) |
Unremitted earnings | (574) | (362) |
Intangible assets | (5,308) | (6,453) |
Capitalized commissions | (12,830) | (9,751) |
Right-of-use asset | (18,537) | (17,113) |
Other | (737) | (262) |
Gross deferred tax liabilities | (45,804) | (41,355) |
Valuation allowance | (36,746) | (34,224) |
Deferred tax liabilities, net | $ (2,404) | $ (2,405) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 10,355 | $ 6,016 |
Additions based on tax positions related to current year | 324 | 535 |
Additions for tax positions of prior years | 1,242 | 4,235 |
Additions (reductions) due to change in foreign exchange rate | 937 | (431) |
Expiration of statutes of limitation | (307) | |
Reductions due to tax positions of prior years | (169) | |
Ending balance | $ 12,382 | $ 10,355 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Apr. 01, 2021 | Mar. 31, 2021 |
Subsequent Event [Line Items] | ||
Options granted | 878,257 | |
Share Options [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Options granted | 700,000 | |
Grant date fair value of options | $ 18.80 | |
Restricted Share Units (RSUs) [Member] | ||
Subsequent Event [Line Items] | ||
Number of Shares, Restricted share units granted | 2,089,168 | |
Restricted Share Units (RSUs) [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of Shares, Restricted share units granted | 1,500,000 | |
Grant date fair value of restricted share units | $ 40.85 |