Cover
Cover - shares | 9 Months Ended | |
Dec. 31, 2020 | Feb. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39010 | |
Entity Registrant Name | Dynatrace, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-2386428 | |
Entity Address, Address Line One | 1601 Trapelo Road, Suite 116 | |
Entity Address, Postal Zip Code | 02451 | |
Entity Address, City or Town | Waltham | |
Entity Address, State or Province | MA | |
City Area Code | 617 | |
Local Phone Number | 530-1000 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | DT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 282,593,803 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001773383 | |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 299,505 | $ 213,170 |
Accounts receivable, net | 200,849 | 157,058 |
Deferred commissions, current | 45,645 | 38,509 |
Prepaid expenses and other current assets | 28,505 | 61,188 |
Total current assets | 574,504 | 469,925 |
Property and equipment, net | 35,384 | 31,508 |
Operating lease right-of-use asset, net | 43,530 | |
Goodwill | 1,272,574 | 1,270,733 |
Other intangible assets, net | 162,882 | 201,592 |
Deferred tax assets, net | 25,259 | 20,460 |
Deferred commissions, non-current | 43,575 | 39,736 |
Other assets | 8,850 | 8,126 |
Total assets | 2,166,558 | 2,042,080 |
Current liabilities: | ||
Accounts payable | 12,146 | 11,112 |
Accrued expenses, current | 104,788 | 93,728 |
Deferred revenue, current | 424,001 | 384,060 |
Operating lease liabilities, current | 9,368 | |
Total current liabilities | 550,303 | 488,900 |
Deferred revenue, non-current | 47,849 | 60,711 |
Accrued expenses, non-current | 18,408 | 20,987 |
Operating lease liabilities, non-current | 38,829 | |
Long-term debt | 451,427 | 509,985 |
Total liabilities | 1,106,816 | 1,080,583 |
Commitments and contingencies (Note 10) | ||
Par value (in dollars per share) | $ 0.001 | $ 0.001 |
Shareholders' equity: | ||
Common shares | $ 281 | $ 281 |
Additional paid-in capital | 1,632,446 | 1,573,347 |
Accumulated deficit | (544,960) | (594,026) |
Accumulated other comprehensive loss | (28,025) | (18,105) |
Total shareholders' equity | 1,059,742 | 961,497 |
Total liabilities and shareholders' equity | $ 2,166,558 | $ 2,042,080 |
Common Stock, Shares, Issued | 282,542,649 | 280,853,040 |
Common Stock, Shares, Outstanding | 282,542,649 | 280,853,040 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 |
Common shares, issued (in shares) | 282,542,649 | 280,853,040 |
Common shares, outstanding (in shares) | 282,542,649 | 280,853,040 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | ||||
Total revenue | $ 182,911 | $ 143,298 | $ 507,005 | $ 395,226 |
Cost of revenue: | ||||
Amortization of acquired technology | 3,831 | 3,824 | 11,487 | 12,624 |
Total cost of revenue | 33,120 | 28,705 | 92,373 | 97,794 |
Gross profit | 149,791 | 114,593 | 414,632 | 297,432 |
Operating expenses: | ||||
Research and development | 28,730 | 22,517 | 79,747 | 94,772 |
Sales and marketing | 64,829 | 52,400 | 170,682 | 210,581 |
General and administrative | 23,442 | 21,883 | 67,079 | 140,718 |
Amortization of other intangibles | 8,685 | 10,039 | 26,057 | 30,242 |
Restructuring and other | (2) | 199 | 23 | 1,093 |
Total operating expenses | 125,684 | 107,038 | 343,588 | 477,406 |
Income (loss) from operations | 24,107 | 7,555 | 71,044 | (179,974) |
Interest expense, net | (3,455) | (5,995) | (11,170) | (39,715) |
Other income, net | 2,526 | 67 | 2,744 | 307 |
Income (loss) before income taxes | 23,178 | 1,627 | 62,618 | (219,382) |
Income tax (expense) benefit | (4,762) | 136 | (13,858) | (245,344) |
Net income (loss) | $ 18,416 | $ 1,763 | $ 48,760 | $ (464,726) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.07 | $ 0.01 | $ 0.17 | $ (1.78) |
Diluted (in dollars per share) | $ 0.06 | $ 0.01 | $ 0.17 | $ (1.78) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 281,010 | 277,926 | 280,057 | 260,383 |
Diluted (in shares) | 286,427 | 280,156 | 285,884 | 260,383 |
Subscription | ||||
Revenue: | ||||
Total revenue | $ 170,308 | $ 128,518 | $ 472,338 | $ 352,451 |
Cost of revenue: | ||||
Cost of revenues | 20,382 | 16,297 | 55,415 | 55,930 |
License | ||||
Revenue: | ||||
Total revenue | 257 | 3,895 | 1,337 | 10,424 |
Service | ||||
Revenue: | ||||
Total revenue | 12,346 | 10,885 | 33,330 | 32,351 |
Cost of revenue: | ||||
Cost of revenues | $ 8,907 | $ 8,584 | $ 25,471 | $ 29,240 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 18,416 | $ 1,763 | $ 48,760 | $ (464,726) |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustment | (4,786) | (2,363) | (9,920) | 2,165 |
Change of ownership interest in subsidiary | 0 | 0 | 0 | 6,623 |
Total other comprehensive (loss) income | (4,786) | (2,363) | (9,920) | 8,788 |
Comprehensive income (loss) | $ 13,630 | $ (600) | $ 38,840 | $ (455,938) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity / Members' Deficit - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Shares | Additional Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2019 | 0 | ||||||
Beginning balance at Mar. 31, 2019 | $ (390,258) | $ 0 | $ (184,546) | $ (176,002) | $ (29,710) | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Foreign currency translation | 2,165 | 2,165 | |||||
Reclassification of related party payable upon reorganization | 600,622 | 600,622 | |||||
Issuance of common stock in connection with initial public offering, net of underwriters' discounts and commissions and issuance costs (in shares) | 38,873,000 | ||||||
Issuance of common stock in connection with initial public offering, net of underwriters' discounts and commissions and issuance costs | 585,297 | $ 39 | 585,258 | ||||
Effect of reorganization (in shares) | 241,547,000 | ||||||
Effect of reorganization | 278,248 | $ 242 | 271,383 | 6,623 | |||
Contribution for taxes associated with reorganization | 265,000 | 265,000 | |||||
Restricted stock units vested (in shares) | 393,000 | ||||||
Restricted stock awards forfeited (in shares) | (28,000) | ||||||
Share-based compensation | 22,992 | 22,992 | |||||
Equity repurchases | (150) | (150) | |||||
Net income (loss) | (464,726) | (464,726) | |||||
Ending balance (in shares) at Dec. 31, 2019 | 280,785,000 | ||||||
Ending balance at Dec. 31, 2019 | 899,190 | $ 281 | 1,560,559 | (640,728) | (20,922) | ||
Beginning balance (in shares) at Sep. 30, 2019 | 280,509,000 | ||||||
Beginning balance at Sep. 30, 2019 | 886,282 | $ 281 | 1,547,051 | (642,491) | (18,559) | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Foreign currency translation | (2,363) | (2,363) | |||||
Restricted stock units vested (in shares) | 304,000 | ||||||
Restricted stock awards forfeited (in shares) | (28,000) | ||||||
Share-based compensation | 13,513 | 13,513 | |||||
Equity repurchases | (5) | (5) | |||||
Net income (loss) | 1,763 | 1,763 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 280,785,000 | ||||||
Ending balance at Dec. 31, 2019 | 899,190 | $ 281 | 1,560,559 | (640,728) | (20,922) | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Shareholders' equity | $ 961,497 | $ 306 | $ 281 | 1,573,347 | (594,026) | $ 306 | (18,105) |
Beginning balance (in shares) at Mar. 31, 2020 | 280,853,040 | 280,853,000 | |||||
Beginning balance at Mar. 31, 2020 | $ 961,497 | 306 | $ 281 | 1,573,347 | (594,026) | 306 | (18,105) |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Foreign currency translation | (9,920) | (9,920) | |||||
Restricted stock units vested (in shares) | 1,035,000 | ||||||
Restricted stock awards forfeited (in shares) | (103,000) | ||||||
Issuance of common stock related to employee stock purchase plan (in shares) | 331,000 | ||||||
Issuance of common stock related to employee stock purchase plan | $ 9,195 | 9,195 | |||||
Exercise of stock options (in shares) | 427,000 | 427,000 | |||||
Exercise of stock options | $ 6,849 | 6,849 | |||||
Share-based compensation | 43,091 | 43,091 | |||||
Equity repurchases | (36) | (36) | |||||
Shareholders' equity | $ 1,059,742 | $ 306 | $ 281 | 1,632,446 | (594,026) | $ 306 | (18,105) |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Net income (loss) | $ 48,760 | 48,760 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 282,542,649 | 282,543,000 | |||||
Ending balance at Dec. 31, 2020 | $ 1,059,742 | $ 281 | 1,632,446 | (544,960) | (28,025) | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Shareholders' equity | 1,022,912 | $ 281 | 1,609,246 | (563,376) | (23,239) | ||
Beginning balance (in shares) at Sep. 30, 2020 | 282,024,000 | ||||||
Beginning balance at Sep. 30, 2020 | 1,022,912 | $ 281 | 1,609,246 | (563,376) | (23,239) | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Foreign currency translation | (4,786) | (4,786) | |||||
Restricted stock units vested (in shares) | 229,000 | ||||||
Restricted stock awards forfeited (in shares) | (7,000) | ||||||
Issuance of common stock related to employee stock purchase plan (in shares) | 172,000 | ||||||
Issuance of common stock related to employee stock purchase plan | 5,603 | 5,603 | |||||
Exercise of stock options (in shares) | 125,000 | ||||||
Exercise of stock options | 2,020 | 2,020 | |||||
Share-based compensation | 15,588 | 15,588 | |||||
Equity repurchases | (11) | (11) | |||||
Shareholders' equity | 1,059,742 | $ 281 | 1,632,446 | (544,960) | (28,025) | ||
Net income (loss) | $ 18,416 | 18,416 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 282,542,649 | 282,543,000 | |||||
Ending balance at Dec. 31, 2020 | $ 1,059,742 | $ 281 | 1,632,446 | (544,960) | (28,025) | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Shareholders' equity | $ 1,059,742 | $ 281 | $ 1,632,446 | $ (544,960) | $ (28,025) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 48,760 | $ (464,726) |
Adjustments to reconcile net income (loss) to cash provided by (used in) operations: | ||
Depreciation | 6,589 | 5,977 |
Amortization | 39,046 | 44,098 |
Share-based compensation | 43,091 | 209,684 |
Deferred income taxes | (3,014) | (45,686) |
Other | (1,240) | 4,006 |
Net change in operating assets and liabilities: | ||
Accounts receivable | (37,693) | (49,022) |
Deferred commissions | (6,380) | (13,484) |
Prepaid expenses and other assets | 25,920 | (244) |
Accounts payable and accrued expenses | 14,891 | 37,396 |
Operating leases, net | 599 | |
Deferred revenue | 3,996 | 64,905 |
Net cash provided by (used in) operating activities | 134,565 | (207,096) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (8,868) | (15,143) |
Capitalized software additions | (248) | (729) |
Net cash used in investing activities | (9,116) | (15,872) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net of underwriters' discounts and commissions | 0 | 590,297 |
Settlement of deferred offering costs | 0 | (5,000) |
Repayment of term loans | (60,000) | (485,189) |
Contribution for tax associated with reorganization | 0 | 265,000 |
Proceeds from employee stock purchase plan | 9,195 | 0 |
Proceeds from exercise of stock options | 6,849 | 0 |
Equity repurchases | (36) | (150) |
Installments related to acquisition | 0 | (4,694) |
Net cash (used in) provided by financing activities | (43,992) | 360,264 |
Effect of exchange rates on cash and cash equivalents | 4,878 | (55) |
Net increase in cash and cash equivalents | 86,335 | 137,241 |
Cash and cash equivalents, beginning of period | 213,170 | 51,314 |
Cash and cash equivalents, end of period | 299,505 | 188,555 |
Supplemental cash flow data: | ||
Cash paid for interest | 9,914 | 34,001 |
Cash (received from) paid for tax | (14,472) | 268,281 |
Non-cash financing activities: | ||
Reclassification of related party payable upon reorganization | $ 0 | $ (600,622) |
Description of the Business
Description of the Business | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Business Dynatrace, Inc. (“Dynatrace”, or the “Company”) offers a software intelligence platform, purpose-built for multicloud environments. The Company’s all-in-one intelligence platform is designed to address the growing complexity faced by technology and digital business teams as these enterprises further embrace the cloud to effect their digital transformation. The Company’s platform does so by utilizing artificial intelligence at its core and continuous automation to provide answers, not just data, about the performance of applications, the underlying hybrid cloud infrastructure, and the experience of its customers’ users. The Company designed its software intelligence platform to allow its customers to modernize and automate IT operations, develop and release high quality software faster, and improve user experiences for better business outcomes. Thoma Bravo (“TB”), a private equity investment firm, completed its acquisition of Compuware Corporation on December 15, 2014. Following the acquisition, Compuware Corporation was restructured following which Compuware Parent, LLC became the owner of Dynatrace Holding Corporation (“DHC”), under which the Compuware and Dynatrace businesses were separated, establishing Dynatrace as a standalone business. Following the corporate reorganization described below, Dynatrace became wholly owned by Dynatrace, Inc. (formerly Dynatrace Holdings LLC). Fiscal year The Company’s fiscal year ends on March 31. References to fiscal 2021, for example, refer to the fiscal year ended March 31, 2021. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of presentation and consolidation Prior to July 30, 2019, Dynatrace Holdings LLC, a Delaware limited liability company, was an indirect equity holder of DHC that indirectly and wholly owned Dynatrace, LLC. On July 31, 2019, Dynatrace Holdings LLC (i) converted into a Delaware corporation with the name Dynatrace, Inc. and (ii) through a series of corporate reorganization steps, became the parent company of DHC. Additionally, as part of the reorganization, two wholly owned subsidiaries of DHC, Compuware Corporation (“Compuware”) and SIGOS LLC (“SIGOS”), were spun out from the corporate structure to the DHC shareholders. As a result of these transactions, DHC is a wholly owned indirect subsidiary of Dynatrace, Inc. These reorganization steps are collectively referred to as the “reorganization.” In connection with the reorganization, the equity holders of Compuware Parent, LLC received 222,021,708 units of Dynatrace Holdings LLC in exchange for their equity interests in Compuware Parent, LLC based on the fair value of a unit of Dynatrace Holdings LLC on July 30, 2019, which was determined to be $16.00 per unit by a committee of the board of managers of Dynatrace Holdings LLC, and all of the outstanding units of Dynatrace Holdings LLC then converted into shares of Dynatrace, Inc. Additionally, 19,525,510 units of Dynatrace Holdings LLC were issued upon exchange of Dynatrace, LLC Management Incentive Units (“MIUs”) and Appreciation Units (“AUs”) for a total of 241,547,218 outstanding units in Dynatrace Holdings LLC immediately prior to the closing of the Company’s initial public offering (“IPO”). The reorganization was completed between entities that have been under common control since December 15, 2014. Therefore, these condensed consolidated financial statements retroactively reflect DHC and Dynatrace, Inc. on a consolidated basis for the periods presented. The spin-offs of Compuware Corporation and SIGOS LLC from DHC have been accounted for retroactively as a change in reporting entity and accordingly, these condensed consolidated financial statements exclude their accounts and results. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. All intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements. As described in Note 14, prior to the reorganization the condensed consolidated financial statements reflected the debt and debt service associated with subordinated demand promissory notes payable to a related party. The condensed consolidated financial statements also reflect certain expenses incurred by the Company for certain functions including shared services for the periods prior to the reorganization, which are immaterial to these condensed consolidated financial statements. These expenses were allocated to Dynatrace on the basis of direct usage when identifiable, and for resources indirectly used by Dynatrace. Allocations were based on a proportional cost allocation methodology to reflect estimated usage by Dynatrace. Management considers the allocation methodology and results to be reasonable for all periods presented. However, the financial information presented in these condensed consolidated financial statements may not reflect the consolidated financial position, operating results and cash flows of Dynatrace had the Dynatrace business been a separate stand-alone entity during all of the periods presented. Actual costs that would have been incurred if Dynatrace had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas. Initial Public Offering On August 1, 2019, the Company completed its initial public offering, in which it sold and issued 38,873,174 shares of common stock, inclusive of the underwriters’ option to purchase additional shares that was exercised in full, at an issue price of $16.00 per share. The Company received a total of $622.0 million in gross proceeds from the offering, or approximately $585.3 million in net proceeds after deducting approximately $36.7 million for underwriting discounts, commissions and offering-related expenses. Prior to the closing of the IPO, the 241,547,218 outstanding units of Dynatrace Holdings LLC were converted on a one-for-one basis into shares of common stock in accordance with the terms of the certificate of incorporation. Follow-on offerings by selling stockholders On June 5, 2020, the Company completed a follow-on offering for the sale of 34,500,000 shares of common stock by selling stockholders, inclusive of the underwriters’ option to purchase additional shares that was exercised in full, at an offering price of $35.00 per share. The Company did not receive any proceeds from the sale of common stock by the selling stockholders. On August 5, 2020, the Company completed a follow-on offering for the sale of 25,000,000 shares of common stock by selling stockholders at an offering price of $41.10 per share. The Company did not receive any proceeds from the sale of common stock by the selling stockholders. Unaudited interim consolidated financial information The accompanying interim condensed consolidated balance sheet as of December 31, 2020 and the interim condensed consolidated statements of operations, statements of comprehensive income (loss), and statements of shareholders’ equity / member’s deficit for the three and nine months ended December 31, 2020 and 2019, statements of cash flows for the nine months ended December 31, 2020 and 2019, and the related disclosures, are unaudited. In management’s opinion, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and includes all normal and recurring adjustments necessary for the fair presentation of the Company’s financial position as of December 31, 2020, its results of operations for the three and nine months ended December 31, 2020 and 2019, and its cash flows for the nine months ended December 31, 2020 and 2019 in accordance with U.S. GAAP. The results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (“Annual Report”). Use of estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Management periodically evaluates such estimates and assumptions for continued reasonableness. In particular, the Company makes estimates with respect to the stand-alone selling price for each distinct performance obligation in customer contracts with multiple performance obligations, the uncollectible accounts receivable, the fair value of tangible and intangible assets acquired, valuation of long-lived assets, the period of benefit for deferred commissions and material rights, equity-based compensation expense, income taxes, and the determination of the incremental borrowing rate used for operating lease liabilities, among other things. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. Actual results could differ from those estimates. In March 2020, the World Health Organization declared the recent outbreak of the novel coronavirus disease, or COVID-19, a global pandemic. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and impact on the Company’s customers and its sales cycles, which are uncertain and cannot be predicted. As of the date of the condensed consolidated financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates, judgments or a revision of the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our condensed consolidated financial statements. Significant accounting policies The Company’s significant accounting policies are discussed in Note 2, “Significant Accounting Policies” in the Company’s Annual Report. There have been no changes to the Company’s significant accounting policies described in the Company’s Annual Report that have had a material impact on its condensed consolidated financial statements and related notes except for updates resulting from the adoption of Topic 842, as discussed below. Leases Leases arise from contractual obligations that convey the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. At the inception of the contract, the Company determines if an arrangement contains a lease based on whether there is an identified asset and whether the Company controls the use of the identified asset. The Company also determines the classification of that lease, between financing and operating, at the lease commencement date. The Company accounts for and allocates consideration to the lease and non-lease components as a single lease component. A right-of-use asset represents the Company's right to use an underlying asset and a lease liability represents the Company's obligation to make payments during the lease term. Right-of-use assets are recorded and recognized at commencement for the lease liability amount, adjusted for initial direct costs incurred and lease incentives received. Lease liabilities are recorded at the present value of the future lease payments over the lease term at commencement. The discount rate used to determine the present value is the incremental borrowing rate unless the interest rate implicit in the lease is readily determinable. As the implicit rate for the operating leases is generally not determinable, the Company uses an incremental borrowing rate as the discount rate at the lease commencement date to determine the present value of lease payments. The Company determines the discount rate of the leases by considering various factors, such as the credit rating, interest rates of similar debt instruments of entities with comparable credit ratings, jurisdictions, and the lease term. The Company’s operating leases typically include non-lease components such as common-area maintenance costs, utilities, and other maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company's lease terms may include options to extend or terminate the lease. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the Company will exercise those options. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company's right-of-use assets are included in “Operating lease right-of-use asset, net” and the current and non-current portions of the lease liabilities are included in “Operating lease liabilities, current” and “Operating lease liabilities, non-current,” respectively, on the condensed consolidated balance sheets. The Company does not record leases with terms of 12 months or less on the condensed consolidated balance sheets. Lease expense is recognized on a straight-line basis over the expected lease term. Reclassification Certain reclassifications of prior period amounts have been made in the Company’s condensed consolidated statements of cash flows to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The amendments supersede current lease requirements in Topic 840 which require lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. This new guidance is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those periods, except for certain emerging growth companies and smaller reporting companies who may elect to adopt the standard for annual reporting periods beginning after December 15, 2020. The Company early adopted the new standard as of April 1, 2020 and recognized a cumulative-effect adjustment to the opening balance of accumulated deficit as of the adoption date. The Company elected the optional transition approach to not apply Topic 842 in the comparative periods presented. The Company elected the package of practical expedients to not 1) reassess whether any expired or existing contracts are considered or contain leases; (2) reassess the lease classification for any expired or existing leases; and (3) reassess the initial direct costs for any existing leases. The adoption of Topic 842 resulted in the recognition of total right-of-use assets of $50.6 million, total lease liabilities of $50.7 million, and a cumulative effect adjustment to accumulated deficit of $0.3 million as of the adoption date, with the most significant impact related to the office space leases. Additionally, the Company derecognized $3.3 million in deferred rent upon adoption of this standard which was offset against the right-of-use asset. The adoption of Topic 842 did not have a material impact to the consolidated statements of operations or consolidated statements of cash flows. The Company has updated the accounting policies, systems, processes and internal controls, and have allocated internal and external resources to assist during the implementation efforts. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. ASU 2016-13 is effective for annual periods, and interim periods within those years, beginning after December 15, 2019, except for emerging growth companies who may elect to adopt the standard for annual reporting periods beginning after December 15, 2022. The Company expects to adopt the standard on a modified retrospective basis during the fourth quarter of fiscal 2021 and does not expect the standard to have a material effect on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements, which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual periods, and interim periods within those years, beginning after December 15, 2019, except for emerging growth companies who may elect to adopt the standard for annual reporting periods beginning after December 15, 2020, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company expects to adopt the standard on a prospective basis during the fourth quarter of fiscal 2021 and does not expect the standard to have a material effect on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 is effective for annual periods, and interim periods within those years, beginning after December 15, 2020. The Company is currently evaluating the effects the standard will have on its condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of revenue The following table is a summary of the Company’s total revenues by geographic region (in thousands, except percentages): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Amount % Amount % Amount % Amount % North America $ 100,918 55 % $ 82,946 58 % $ 281,806 56 % $ 231,388 59 % Europe, Middle East and Africa 55,945 31 % 39,676 28 % 154,868 30 % 107,494 27 % Asia Pacific 20,643 11 % 16,231 11 % 56,854 11 % 44,414 11 % Latin America 5,405 3 % 4,445 3 % 13,477 3 % 11,930 3 % Total revenue $ 182,911 $ 143,298 $ 507,005 $ 395,226 For the three and nine months ended December 31, 2020 and 2019, the United States was the only country that represented more than 10% of the Company’s revenues in any period, constituting $94.2 million and 51%, and $77.7 million and 54% of total revenue during the three months ended December 31, 2020 and 2019, respectively, and $263.3 million and 52%, and $218.1 million and 55% of total revenue for the nine months ended December 31, 2020 and 2019, respectively. Deferred revenue Revenues recognized from amounts included in deferred revenue as of March 31, 2020 were $123.7 million and $407.0 million during the three and nine months ended December 31, 2020, respectively. Revenues recognized from amounts included in deferred revenue as of March 31, 2019 were $60.7 million and $235.0 million during the three and nine months ended December 31, 2019, respectively. Remaining performance obligations As of December 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,050.6 million, which consists of both billed consideration in the amount of $471.9 million and unbilled consideration in the amount of $578.7 million that the Company expects to recognize as subscription and service revenue. The Company expects to recognize 58% of this amount as revenue over the next twelve months and the remainder thereafter. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consists of the following (in thousands): December 31, 2020 March 31, 2020 Prepaid expenses $ 18,126 $ 13,189 Income taxes refundable 9,996 47,489 Other 383 510 Prepaid expenses and other current assets $ 28,505 $ 61,188 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Changes in the carrying amount of goodwill on a consolidated basis for the nine months ended December 31, 2020 consists of the following (in thousands): December 31, 2020 Balance, beginning of period $ 1,270,733 Foreign currency impact 1,841 Balance, end of period $ 1,272,574 Intangible assets, net excluding goodwill consists of the following (in thousands): Weighted December 31, 2020 March 31, 2020 Capitalized software 107 $ 189,967 $ 189,554 Customer relationships 120 351,555 351,555 Trademarks and tradenames 120 55,003 55,003 Total intangible assets 596,525 596,112 Less: accumulated amortization (433,643) (394,520) Total intangible assets, net $ 162,882 $ 201,592 |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its interim provision for income taxes by applying the estimated annual effective tax rate to income (loss) from operations and adjusts the provision for discrete tax items occurring in the period. The Company’s effective tax rate for the three months ended December 31, 2020 was 21% compared to negative 8% for the three months ended December 31, 2019. The Company’s effective tax rate for the nine months ended December 31, 2020 was 22% compared to negative 112% for the nine months ending December 31, 2019. The effective tax rate for both the three and nine months ended December 31, 2019 differed substantially from the U.S. statutory rate due to significant taxes on the Company’s reorganization transactions. Based on the Company’s review of both positive and negative evidence regarding the realizability of deferred tax assets at December 31, 2020, a valuation allowance continues to be recorded against certain deferred tax assets based upon the conclusion that it was more likely than not that these assets would not be realized. The valuation allowance at December 31, 2020 relates primarily to share-based compensation, capitalized development costs, and foreign tax credits. Other Matters On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. The Company previously reviewed the CARES Act in the U.S. and determined that there was no significant impact on the Company’s tax provision. The Company continues to analyze these legislative developments and believes they have not had a material impact on the Company’s provision for income taxes for the three and nine months ended December 31, 2020. The Company files its Federal and state income tax returns related to its fiscal year ended March 31, 2020 during the quarter ended March 31, 2021. Given the number of estimates and the size of the original tax, it is possible that changes in these estimates could result in a reduction of the Company’s income tax for the returns filed during the quarter ended March 31, 2021. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses, current consists of the following (in thousands): December 31, 2020 March 31, 2020 Accrued employee - related expenses $ 53,328 $ 40,687 Accrued tax liabilities 22,412 13,350 Accrued restructuring — 1,065 Accrued professional fees 2,996 2,103 Income taxes payable 8,165 20,756 Other 17,887 15,767 Total accrued expenses, current $ 104,788 $ 93,728 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consists of the following (in thousands, except percentages): December 31, 2020 March 31, 2020 Amount Effective Rate Amount Effective Rate First Lien Term Loan $ 461,125 2.4 % $ 521,125 3.2 % Revolving credit facility — — Total principal 461,125 521,125 Unamortized discount and debt issuance costs (9,698) (11,140) Total debt 451,427 509,985 Less: Current portion of long-term debt — — Long-term debt $ 451,427 $ 509,985 First lien credit facilities The Company’s First Lien Credit Agreement, as amended, provides for a term loan facility, or the First Lien Term Loan, in an aggregate principal amount of $950.0 million and a senior secured revolving credit facility, or the Revolving Facility, in an aggregate amount of $60.0 million. The Revolving Facility includes a $25.0 million letter of credit sub-facility. The First Lien Term Loan and Revolving Facility mature on August 23, 2025 and August 23, 2023, respectively. As of December 31, 2020 and March 31, 2020, there were $15.8 million and $15.3 million letters of credit issued, respectively. The Company had $44.2 million and $44.7 million of availability under the Revolving Facility as of December 31, 2020 and March 31, 2020, respectively. Borrowings under the First Lien Term Loan and the Revolving Facility currently bear interest, at the Company’s election, at either (i) the Alternative Base Rate, as defined per the credit agreement, plus 1.25% per annum, or (ii) LIBOR plus 2.25% per annum. The Company has satisfied all required principal payments under the First Lien Term Loan and the remainder is due at maturity. Interest payments are due quarterly, or more frequently, based on the terms of the credit agreement. The Company incurs fees with respect to the Revolving Facility, including (i) a commitment fee of 0.25% per annum of unused commitments under the Revolving Facility, (ii) facility fees equal to the applicable margin in effect for Eurodollar Rate Loans, as defined per the credit agreement, times the average daily stated amount of letters of credit, (iii) a fronting fee equal to either (a) 0.125% per annum on the stated amount of each letter of credit or (b) such other rate per annum as agreed to by the parties subject to the letters of credit, and (iv) customary administrative fees. All of the indebtedness under the First Lien Credit Agreement is and will be guaranteed by the Company’s existing and future material domestic subsidiaries and is and will be secured by substantially all of the assets of the Company and such guarantors. The First Lien |
Leases
Leases | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space under non-cancelable operating leases which expire at various dates from fiscal 2021 to 2032. As of December 31, 2020, the weighted average remaining lease term was 5.7 years and the weighted average discount rate was 7.6%. The Company does not have any finance leases as of December 31, 2020. The Company also has subleases of former offices which expire at various dates from fiscal 2021 to fiscal 2025. Sublease income from operating leases, which is recorded as a reduction of rental expense, was $1.0 million and $1.2 million for the three months ended December 31, 2020 and 2019, respectively, and $3.3 million and $3.4 million for the nine months ended December 31, 2020 and 2019, respectively. The following table presents information about leases on the condensed consolidated statements of operations (in thousands): Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Operating lease expense (1) $ 2,640 $ 8,022 Short-term lease expense $ 174 $ 524 Variable lease expense $ 205 $ 549 _________________ (1) Presented gross of sublease income. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Nine Months Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities $ 10,251 Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 2,600 _________________ (1) Includes the impact of new leases as well as remeasurements and modifications of existing leases. As of December 31, 2020, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2021 $ 3,181 2022 12,073 2023 11,406 2024 10,412 2025 7,196 Thereafter 14,795 Total operating lease payments (1) 59,063 Less: imputed interest (10,866) Total operating lease liabilities $ 48,197 _________________ (1) Presented gross of sublease income. As of December 31, 2020, the Company had commitments of $8.1 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use assets or operating lease liabilities. These operating leases are expected to commence during the fiscal years ended March 31, 2021 and March 31, 2022, with lease terms ranging from 1 to 10 years. As previously disclosed in the Company’s Annual Report, and under previous lease accounting standard ASC 840, the aggregate future non-cancelable minimum rental payments on its operating leases, as of March 31, 2020, were as follows (in thousands): Fiscal Years Ending March 31, Amount 2021 $ 14,210 2022 11,663 2023 11,235 2024 10,864 2025 8,020 Thereafter 16,331 Total future contractual payments (1) $ 72,323 _________________ (1) Presented gross of sublease income. Under ASC 840, total rent expense under operating leases during the three and nine months ended December 31, 2019 were $3.5 million and $10.2 million, respectively. |
Leases | Leases The Company leases office space under non-cancelable operating leases which expire at various dates from fiscal 2021 to 2032. As of December 31, 2020, the weighted average remaining lease term was 5.7 years and the weighted average discount rate was 7.6%. The Company does not have any finance leases as of December 31, 2020. The Company also has subleases of former offices which expire at various dates from fiscal 2021 to fiscal 2025. Sublease income from operating leases, which is recorded as a reduction of rental expense, was $1.0 million and $1.2 million for the three months ended December 31, 2020 and 2019, respectively, and $3.3 million and $3.4 million for the nine months ended December 31, 2020 and 2019, respectively. The following table presents information about leases on the condensed consolidated statements of operations (in thousands): Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Operating lease expense (1) $ 2,640 $ 8,022 Short-term lease expense $ 174 $ 524 Variable lease expense $ 205 $ 549 _________________ (1) Presented gross of sublease income. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Nine Months Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities $ 10,251 Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 2,600 _________________ (1) Includes the impact of new leases as well as remeasurements and modifications of existing leases. As of December 31, 2020, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2021 $ 3,181 2022 12,073 2023 11,406 2024 10,412 2025 7,196 Thereafter 14,795 Total operating lease payments (1) 59,063 Less: imputed interest (10,866) Total operating lease liabilities $ 48,197 _________________ (1) Presented gross of sublease income. As of December 31, 2020, the Company had commitments of $8.1 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use assets or operating lease liabilities. These operating leases are expected to commence during the fiscal years ended March 31, 2021 and March 31, 2022, with lease terms ranging from 1 to 10 years. As previously disclosed in the Company’s Annual Report, and under previous lease accounting standard ASC 840, the aggregate future non-cancelable minimum rental payments on its operating leases, as of March 31, 2020, were as follows (in thousands): Fiscal Years Ending March 31, Amount 2021 $ 14,210 2022 11,663 2023 11,235 2024 10,864 2025 8,020 Thereafter 16,331 Total future contractual payments (1) $ 72,323 _________________ (1) Presented gross of sublease income. Under ASC 840, total rent expense under operating leases during the three and nine months ended December 31, 2019 were $3.5 million and $10.2 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal matters From time to time, the Company may be a party to lawsuits and legal proceedings arising in the ordinary course of business. In the opinion of the Company’s management, these matters, individually and in the aggregate, will not have a material adverse effect on the financial condition and results of the future operations of the Company. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Management Incentive Unit Plan Under the Management Incentive Unit Plan (the “MIU Plan”), Compuware Parent LLC’s board of managers had authorized the issuance of MIUs and AUs to certain executive officers and key employees. The MIUs and AUs consisted of two types of units which were classified as performance-vested units and time-vested units. In connection with the reorganization transactions described in Note 2, outstanding awards granted under the MIU Plan were converted into shares of common stock, restricted stock, and restricted stock units which were granted under the 2019 Plan (as defined below). Upon conversion, the MIUs and AUs were modified and ceased to be classified as liability awards. This modification impacted 306 participants and resulted in the recognition of incremental share-based compensation expense of $145.3 million to record the liability awards at fair value immediately prior to the modification during the nine months ended December 31, 2019. Upon modification, the liability balance of $278.2 million related to these MIUs and AUs was reclassified into additional paid-in capital. 2019 Equity Incentive Plan In July 2019, the Company’s board of directors (the “Board”), upon the recommendation of the compensation committee of the board of directors, adopted the 2019 Equity Incentive Plan, or the 2019 Plan, which was subsequently approved by the Company’s shareholders. The Company initially reserved 52,000,000 shares of common stock, or the Initial Limit, for the issuance of awards under the 2019 Plan. The 2019 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each April 1, beginning on April 1, 2020, by 4% of the outstanding number of shares of the Company’s common stock on the immediately preceding March 31 or such lesser number determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. As of December 31, 2020, 29,969,596 shares of common stock were available for future issuance under the 2019 Plan. Stock options The following table summarizes activity for stock options during the period ended December 31, 2020: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (per share) (years) (in thousands) Balance, March 31, 2020 7,147 $ 16.26 9.3 $ 54,423 Granted 2,305 33.55 Exercised (427) 16.05 Forfeited (300) 17.91 Balance, December 31, 2020 8,725 $ 20.78 8.8 $ 196,185 Options vested and exercisable at December 31, 2020 1,718 $ 16.18 8.6 $ 46,538 As of December 31, 2020, the total unrecognized compensation expense related to non-vested stock options is $53.8 million and is expected to be recognized over a weighted average period of 2.9 years. The Company recognized $4.5 million and $2.7 million of share-based compensation expense related to stock options for the three months ended December 31, 2020 and 2019, respectively, and $12.3 million and $4.5 million of share-based compensation expense related to stock options for the nine months ended December 31, 2020 and 2019, respectively. Restricted shares and units During the first nine months of fiscal 2021, the Company granted an aggregate of 1,285,474 restricted stock units to certain key employees and non-employee directors. The total grants consisted of: (i) 1,250,474 time-based restricted stock units that vest 25% one year after the grant date and the remaining 75% vest ratably on a quarterly basis over 3 years and (ii) 35,000 time-based restricted shares that vest on August 25, 2021 or at the annual shareholder meeting, if earlier. The following table provides a summary of the changes in the number of restricted shares for the period ended December 31, 2020: Number of Shares of Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average (in thousands) (per share) (in thousands) (per share) Balance, March 31, 2020 1,984 $ 16.00 3,123 $ 16.39 Granted — — 1,285 33.73 Vested (1,009) 16.00 (1,036) 16.15 Forfeited (103) 16.00 (148) 18.70 Balance, December 31, 2020 872 $ 16.00 3,224 $ 23.27 As of December 31, 2020, the total unrecognized compensation expense related to unvested restricted stock is $11.4 million and is expected to be recognized over a weighted average period of 1.3 years. As of December 31, 2020, the total unrecognized compensation expense related to unvested restricted stock units is $66.5 million and is expected to be recognized over a weighted average period of 2.8 years. The Company recognized $9.6 million and $10.6 million of share-based compensation expense related to restricted shares and units for the three months ended December 31, 2020 and 2019, respectively, and $28.3 million and $18.3 million of share-based compensation expense related to restricted shares and units for the nine months ended December 31, 2020 and 2019, respectively. Employee Stock Purchase Plan In July 2019, the board of directors adopted, and the Company’s shareholders approved, the 2019 Employee Stock Purchase Plan (“ESPP”). The Company expects to offer, sell and issue shares of common stock under this ESPP from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under this ESPP. The ESPP provides for six six As of December 31, 2020, there was approximately $1.7 million of unrecognized share-based compensation related to the ESPP that is expected to be recognized over the remaining term of the current offering period. The Company recognized $1.5 million and $0.2 million of share-based compensation expense related to the ESPP for the three months ended December 31, 2020 and 2019, respectively, and $2.5 million and $0.2 million of share-based compensation expense related to the ESPP for the nine months ended December 31, 2020 and 2019, respectively. Share-based compensation The following table summarizes the components of total share-based compensation expense included in the condensed consolidated financial statements for each period presented (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Cost of revenue $ 2,066 $ 1,317 $ 5,430 $ 17,346 Research and development 3,259 2,173 8,666 36,679 Sales and marketing 6,480 6,707 18,007 78,592 General and administrative 3,783 3,316 10,988 77,067 Total share-based compensation expense $ 15,588 $ 13,513 $ 43,091 $ 209,684 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) for the period by the weighted-average number of common shares outstanding during the period, without consideration of potentially dilutive securities. Diluted net income (loss) per share includes the dilutive effect of common share equivalents and is calculated using the weighted-average number of common shares and the common share equivalents outstanding during the reporting period. An anti-dilutive impact is an increase in net income per share or a reduction in net loss per share resulting from the conversion, exercise, or contingent issuance of certain securities. On August 1, 2019, the Company completed its IPO in which the Company issued and sold 38,873,174 shares of common stock at a price to the public of $16.00 per share. These shares are included in the common stock outstanding as of that date. For the three and nine months ended December 31, 2019, basic and diluted net income (loss) per share have been retrospectively adjusted to reflect the conversion of equity in connection with the reorganization transactions described in Note 2. Basic and diluted net income (loss) per share was derived from a unit conversion factor of $16.00 per share as determined by the board of managers of Dynatrace Holdings LLC on July 30, 2019. The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Numerator: Net income (loss) $ 18,416 $ 1,763 $ 48,760 $ (464,726) Denominator: Weighted average shares outstanding, basic 281,010 277,926 280,057 260,383 Dilutive effect of stock-based awards 5,417 2,230 5,827 — Weighted average shares outstanding, diluted 286,427 280,156 285,884 260,383 Net income (loss) per share, basic $ 0.07 $ 0.01 $ 0.17 $ (1.78) Net income (loss) per share, diluted $ 0.06 $ 0.01 $ 0.17 $ (1.78) The effect of certain common share equivalents were excluded from the computation of weighted average diluted shares outstanding for the three and nine months ended December 31, 2020 and 2019 as inclusion would have resulted in anti-dilution. A summary of these weighted-average anti-dilutive common share equivalents is provided in the table below (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Stock options 2,185 79 1,777 3,970 Unvested restricted stock and RSUs 6 10 31 3,334 Shares committed under ESPP 2 15 2 21 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company had agreements with Thoma Bravo, LLC for financial and management advisory services that terminated on August 1, 2019. The Company did not incur any expense related to these services during the three and nine months ended December 31, 2020. The Company incurred zero and $1.6 million during the three and nine months ended December 31, 2019, respectively. The related expense is reflected in “General and administrative” expense in the condensed consolidated statements of operations.Related Party DebtOn April 1, 2015, the Company entered into $1.8 billion in subordinated demand promissory notes payable to Compuware, a former related party. The promissory notes were established in connection with Compuware’s external debt financing. Interest expense on the promissory notes was zero for the three and nine months ended December 31, 2020, and zero and $4.1 million for the three and nine months ended December 31, 2019, respectively, and is included in the condensed consolidated statements of operations in “Interest expense, net.” In connection with the reorganization during the second quarter of fiscal 2020, the corresponding receivable at Compuware was contributed to the Company and the payable to related party was eliminated. |
Related Party Debt
Related Party Debt | 9 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Debt | Related Party TransactionsThe Company had agreements with Thoma Bravo, LLC for financial and management advisory services that terminated on August 1, 2019. The Company did not incur any expense related to these services during the three and nine months ended December 31, 2020. The Company incurred zero and $1.6 million during the three and nine months ended December 31, 2019, respectively. The related expense is reflected in “General and administrative” expense in the condensed consolidated statements of operations.Related Party DebtOn April 1, 2015, the Company entered into $1.8 billion in subordinated demand promissory notes payable to Compuware, a former related party. The promissory notes were established in connection with Compuware’s external debt financing. Interest expense on the promissory notes was zero for the three and nine months ended December 31, 2020, and zero and $4.1 million for the three and nine months ended December 31, 2019, respectively, and is included in the condensed consolidated statements of operations in “Interest expense, net.” In connection with the reorganization during the second quarter of fiscal 2020, the corresponding receivable at Compuware was contributed to the Company and the payable to related party was eliminated. |
Geographic Information
Geographic Information | 9 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue Revenues by geography are based on legal jurisdiction. Refer to Note 3, “Revenue Recognition” for a disaggregation of revenue by geographic region. Property and equipment, net The following tables present property and equipment by geographic region for the periods presented (in thousands): December 31, 2020 March 31, 2020 North America $ 12,028 $ 11,296 Europe, Middle East and Africa 21,687 18,590 Asia Pacific 1,611 1,564 Latin America 58 58 Total property and equipment, net $ 35,384 $ 31,508 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Fiscal year | The Company’s fiscal year ends on March 31. References to fiscal 2021, for example, refer to the fiscal year ended March 31, 2021. |
Consolidation | Prior to July 30, 2019, Dynatrace Holdings LLC, a Delaware limited liability company, was an indirect equity holder of DHC that indirectly and wholly owned Dynatrace, LLC. On July 31, 2019, Dynatrace Holdings LLC (i) converted into a Delaware corporation with the name Dynatrace, Inc. and (ii) through a series of corporate reorganization steps, became the parent company of DHC. Additionally, as part of the reorganization, two wholly owned subsidiaries of DHC, Compuware Corporation (“Compuware”) and SIGOS LLC (“SIGOS”), were spun out from the corporate structure to the DHC shareholders. As a result of these transactions, DHC is a wholly owned indirect subsidiary of Dynatrace, Inc. These reorganization steps are collectively referred to as the “reorganization.” In connection with the reorganization, the equity holders of Compuware Parent, LLC received 222,021,708 units of Dynatrace Holdings LLC in exchange for their equity interests in Compuware Parent, LLC based on the fair value of a unit of Dynatrace Holdings LLC on July 30, 2019, which was determined to be $16.00 per unit by a committee of the board of managers of Dynatrace Holdings LLC, and all of the outstanding units of Dynatrace Holdings LLC then converted into shares of Dynatrace, Inc. Additionally, 19,525,510 units of Dynatrace Holdings LLC were issued upon exchange of Dynatrace, LLC Management Incentive Units (“MIUs”) and Appreciation Units (“AUs”) for a total of 241,547,218 outstanding units in Dynatrace Holdings LLC immediately prior to the closing of the Company’s initial public offering (“IPO”). The reorganization was completed between entities that have been under common control since December 15, 2014. Therefore, these condensed consolidated financial statements retroactively reflect DHC and Dynatrace, Inc. on a consolidated basis for the periods presented. The spin-offs of Compuware Corporation and SIGOS LLC from DHC have been accounted for retroactively as a change in reporting entity and accordingly, these condensed consolidated financial statements exclude their accounts and results. |
Basis of presentation | The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. All intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements. Unaudited interim consolidated financial information The accompanying interim condensed consolidated balance sheet as of December 31, 2020 and the interim condensed consolidated statements of operations, statements of comprehensive income (loss), and statements of shareholders’ equity / member’s deficit for the three and nine months ended December 31, 2020 and 2019, statements of cash flows for the nine months ended December 31, 2020 and 2019, and the related disclosures, are unaudited. In management’s opinion, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and includes all normal and recurring adjustments necessary for the fair presentation of the Company’s financial position as of December 31, 2020, its results of operations for the three and nine months ended December 31, 2020 and 2019, and its cash flows for the nine months ended December 31, 2020 and 2019 in accordance with U.S. GAAP. The results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (“Annual Report”). |
Use of estimates | Use of estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Management periodically evaluates such estimates and assumptions for continued reasonableness. In particular, the Company makes estimates with respect to the stand-alone selling price for each distinct performance obligation in customer contracts with multiple performance obligations, the uncollectible accounts receivable, the fair value of tangible and intangible assets acquired, valuation of long-lived assets, the period of benefit for deferred commissions and material rights, equity-based compensation expense, income taxes, and the determination of the incremental borrowing rate used for operating lease liabilities, among other things. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. Actual results could differ from those estimates. In March 2020, the World Health Organization declared the recent outbreak of the novel coronavirus disease, or COVID-19, a global pandemic. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and impact on the Company’s customers and its sales cycles, which are uncertain and cannot be predicted. As of the date of the condensed consolidated financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates, judgments or a revision of the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our condensed consolidated financial statements. |
Leases | Leases Leases arise from contractual obligations that convey the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. At the inception of the contract, the Company determines if an arrangement contains a lease based on whether there is an identified asset and whether the Company controls the use of the identified asset. The Company also determines the classification of that lease, between financing and operating, at the lease commencement date. The Company accounts for and allocates consideration to the lease and non-lease components as a single lease component. A right-of-use asset represents the Company's right to use an underlying asset and a lease liability represents the Company's obligation to make payments during the lease term. Right-of-use assets are recorded and recognized at commencement for the lease liability amount, adjusted for initial direct costs incurred and lease incentives received. Lease liabilities are recorded at the present value of the future lease payments over the lease term at commencement. The discount rate used to determine the present value is the incremental borrowing rate unless the interest rate implicit in the lease is readily determinable. As the implicit rate for the operating leases is generally not determinable, the Company uses an incremental borrowing rate as the discount rate at the lease commencement date to determine the present value of lease payments. The Company determines the discount rate of the leases by considering various factors, such as the credit rating, interest rates of similar debt instruments of entities with comparable credit ratings, jurisdictions, and the lease term. The Company’s operating leases typically include non-lease components such as common-area maintenance costs, utilities, and other maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company's lease terms may include options to extend or terminate the lease. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the Company will exercise those options. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company's right-of-use assets are included in “Operating lease right-of-use asset, net” and the current and non-current portions of the lease liabilities are included in “Operating lease liabilities, current” and “Operating lease liabilities, non-current,” respectively, on the condensed consolidated balance sheets. The Company does not record leases with terms of 12 months or less on the condensed consolidated balance sheets. Lease expense is recognized on a straight-line basis over the expected lease term. |
Reclassification | Reclassification Certain reclassifications of prior period amounts have been made in the Company’s condensed consolidated statements of cash flows to conform to the current period presentation. These reclassifications had no effect on the reported results of operations. |
Recently adopted and recently issued accounting pronouncements | Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The amendments supersede current lease requirements in Topic 840 which require lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. This new guidance is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those periods, except for certain emerging growth companies and smaller reporting companies who may elect to adopt the standard for annual reporting periods beginning after December 15, 2020. The Company early adopted the new standard as of April 1, 2020 and recognized a cumulative-effect adjustment to the opening balance of accumulated deficit as of the adoption date. The Company elected the optional transition approach to not apply Topic 842 in the comparative periods presented. The Company elected the package of practical expedients to not 1) reassess whether any expired or existing contracts are considered or contain leases; (2) reassess the lease classification for any expired or existing leases; and (3) reassess the initial direct costs for any existing leases. The adoption of Topic 842 resulted in the recognition of total right-of-use assets of $50.6 million, total lease liabilities of $50.7 million, and a cumulative effect adjustment to accumulated deficit of $0.3 million as of the adoption date, with the most significant impact related to the office space leases. Additionally, the Company derecognized $3.3 million in deferred rent upon adoption of this standard which was offset against the right-of-use asset. The adoption of Topic 842 did not have a material impact to the consolidated statements of operations or consolidated statements of cash flows. The Company has updated the accounting policies, systems, processes and internal controls, and have allocated internal and external resources to assist during the implementation efforts. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. ASU 2016-13 is effective for annual periods, and interim periods within those years, beginning after December 15, 2019, except for emerging growth companies who may elect to adopt the standard for annual reporting periods beginning after December 15, 2022. The Company expects to adopt the standard on a modified retrospective basis during the fourth quarter of fiscal 2021 and does not expect the standard to have a material effect on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements, which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual periods, and interim periods within those years, beginning after December 15, 2019, except for emerging growth companies who may elect to adopt the standard for annual reporting periods beginning after December 15, 2020, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. The Company expects to adopt the standard on a prospective basis during the fourth quarter of fiscal 2021 and does not expect the standard to have a material effect on its condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 is effective for annual periods, and interim periods within those years, beginning after December 15, 2020. The Company is currently evaluating the effects the standard will have on its condensed consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table is a summary of the Company’s total revenues by geographic region (in thousands, except percentages): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Amount % Amount % Amount % Amount % North America $ 100,918 55 % $ 82,946 58 % $ 281,806 56 % $ 231,388 59 % Europe, Middle East and Africa 55,945 31 % 39,676 28 % 154,868 30 % 107,494 27 % Asia Pacific 20,643 11 % 16,231 11 % 56,854 11 % 44,414 11 % Latin America 5,405 3 % 4,445 3 % 13,477 3 % 11,930 3 % Total revenue $ 182,911 $ 143,298 $ 507,005 $ 395,226 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consists of the following (in thousands): December 31, 2020 March 31, 2020 Prepaid expenses $ 18,126 $ 13,189 Income taxes refundable 9,996 47,489 Other 383 510 Prepaid expenses and other current assets $ 28,505 $ 61,188 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill on a consolidated basis for the nine months ended December 31, 2020 consists of the following (in thousands): December 31, 2020 Balance, beginning of period $ 1,270,733 Foreign currency impact 1,841 Balance, end of period $ 1,272,574 |
Schedule of Intangible Assets | Intangible assets, net excluding goodwill consists of the following (in thousands): Weighted December 31, 2020 March 31, 2020 Capitalized software 107 $ 189,967 $ 189,554 Customer relationships 120 351,555 351,555 Trademarks and tradenames 120 55,003 55,003 Total intangible assets 596,525 596,112 Less: accumulated amortization (433,643) (394,520) Total intangible assets, net $ 162,882 $ 201,592 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses, current consists of the following (in thousands): December 31, 2020 March 31, 2020 Accrued employee - related expenses $ 53,328 $ 40,687 Accrued tax liabilities 22,412 13,350 Accrued restructuring — 1,065 Accrued professional fees 2,996 2,103 Income taxes payable 8,165 20,756 Other 17,887 15,767 Total accrued expenses, current $ 104,788 $ 93,728 |
Long-term Debt Schedule of Long
Long-term Debt Schedule of Long-Term Debt (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following (in thousands, except percentages): December 31, 2020 March 31, 2020 Amount Effective Rate Amount Effective Rate First Lien Term Loan $ 461,125 2.4 % $ 521,125 3.2 % Revolving credit facility — — Total principal 461,125 521,125 Unamortized discount and debt issuance costs (9,698) (11,140) Total debt 451,427 509,985 Less: Current portion of long-term debt — — Long-term debt $ 451,427 $ 509,985 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The following table presents information about leases on the condensed consolidated statements of operations (in thousands): Three Months Ended December 31, 2020 Nine Months Ended December 31, 2020 Operating lease expense (1) $ 2,640 $ 8,022 Short-term lease expense $ 174 $ 524 Variable lease expense $ 205 $ 549 _________________ (1) Presented gross of sublease income. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Nine Months Ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities $ 10,251 Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 2,600 _________________ (1) Includes the impact of new leases as well as remeasurements and modifications of existing leases. |
Schedule of Maturities of Lease Liabilities | As of December 31, 2020, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2021 $ 3,181 2022 12,073 2023 11,406 2024 10,412 2025 7,196 Thereafter 14,795 Total operating lease payments (1) 59,063 Less: imputed interest (10,866) Total operating lease liabilities $ 48,197 _________________ (1) Presented gross of sublease income. |
Schedule of Future Minimum Rental Payments for Operating Leases | As previously disclosed in the Company’s Annual Report, and under previous lease accounting standard ASC 840, the aggregate future non-cancelable minimum rental payments on its operating leases, as of March 31, 2020, were as follows (in thousands): Fiscal Years Ending March 31, Amount 2021 $ 14,210 2022 11,663 2023 11,235 2024 10,864 2025 8,020 Thereafter 16,331 Total future contractual payments (1) $ 72,323 _________________ (1) Presented gross of sublease income. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Activity for Stock Options | The following table summarizes activity for stock options during the period ended December 31, 2020: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (per share) (years) (in thousands) Balance, March 31, 2020 7,147 $ 16.26 9.3 $ 54,423 Granted 2,305 33.55 Exercised (427) 16.05 Forfeited (300) 17.91 Balance, December 31, 2020 8,725 $ 20.78 8.8 $ 196,185 Options vested and exercisable at December 31, 2020 1,718 $ 16.18 8.6 $ 46,538 |
Summary of Activity for Restricted Shares | The following table provides a summary of the changes in the number of restricted shares for the period ended December 31, 2020: Number of Shares of Weighted Average Grant Date Fair Value Number of Restricted Stock Units Weighted Average (in thousands) (per share) (in thousands) (per share) Balance, March 31, 2020 1,984 $ 16.00 3,123 $ 16.39 Granted — — 1,285 33.73 Vested (1,009) 16.00 (1,036) 16.15 Forfeited (103) 16.00 (148) 18.70 Balance, December 31, 2020 872 $ 16.00 3,224 $ 23.27 |
Schedule of Share-based Compensation Expense | The following table summarizes the components of total share-based compensation expense included in the condensed consolidated financial statements for each period presented (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Cost of revenue $ 2,066 $ 1,317 $ 5,430 $ 17,346 Research and development 3,259 2,173 8,666 36,679 Sales and marketing 6,480 6,707 18,007 78,592 General and administrative 3,783 3,316 10,988 77,067 Total share-based compensation expense $ 15,588 $ 13,513 $ 43,091 $ 209,684 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Numerator: Net income (loss) $ 18,416 $ 1,763 $ 48,760 $ (464,726) Denominator: Weighted average shares outstanding, basic 281,010 277,926 280,057 260,383 Dilutive effect of stock-based awards 5,417 2,230 5,827 — Weighted average shares outstanding, diluted 286,427 280,156 285,884 260,383 Net income (loss) per share, basic $ 0.07 $ 0.01 $ 0.17 $ (1.78) Net income (loss) per share, diluted $ 0.06 $ 0.01 $ 0.17 $ (1.78) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | A summary of these weighted-average anti-dilutive common share equivalents is provided in the table below (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Stock options 2,185 79 1,777 3,970 Unvested restricted stock and RSUs 6 10 31 3,334 Shares committed under ESPP 2 15 2 21 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Property and Equipment by Geographical Region | The following tables present property and equipment by geographic region for the periods presented (in thousands): December 31, 2020 March 31, 2020 North America $ 12,028 $ 11,296 Europe, Middle East and Africa 21,687 18,590 Asia Pacific 1,611 1,564 Latin America 58 58 Total property and equipment, net $ 35,384 $ 31,508 |
Significant Accounting Polici_3
Significant Accounting Policies - Basis of Presentation and Consolidation (Details) | Jul. 31, 2019subsidiary | Jul. 30, 2019$ / sharesshares |
Class of Stock [Line Items] | ||
Number of wholly owned subsidiaries | subsidiary | 2 | |
Share of equity interest (in dollars per unit) | $ / shares | $ 16 | |
Dynatrace Holdings LLC | ||
Class of Stock [Line Items] | ||
Common units issued (in shares) | 19,525,510 | |
Common units, outstanding (in shares) | 241,547,218 | |
Compuware Parent, LLC, Equity Holders | Dynatrace Holdings LLC | ||
Class of Stock [Line Items] | ||
Common units issued (in shares) | 222,021,708 |
Significant Accounting Polici_4
Significant Accounting Policies - Initial Public Offering and Follow-Up Offering By Selling Stockholders (Details) $ / shares in Units, $ in Thousands | Aug. 05, 2020$ / sharesshares | Jun. 05, 2020$ / sharesshares | Aug. 01, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 31, 2019shares |
Subsidiary, Sale of Stock [Line Items] | ||||||
Gross proceeds received in public offering | $ 0 | $ 590,297 | ||||
Payment of underwriting discounts, commissions and estimated offering related expense | $ 0 | $ 5,000 | ||||
IPO | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of shares sold and issued (in shares) | shares | 38,873,174 | |||||
Sale of stock price per share (in dollars per share) | $ / shares | $ 16 | |||||
Gross proceeds received in public offering | $ 622,000 | |||||
Proceeds from sale of stock, net of offering costs | 585,300 | |||||
Payment of underwriting discounts, commissions and estimated offering related expense | $ 36,700 | |||||
IPO, Sale of Stockholders | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of shares sold and issued (in shares) | shares | 25,000,000 | 34,500,000 | ||||
Sale of stock price per share (in dollars per share) | $ / shares | $ 41.10 | $ 35 | ||||
Common Class A | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion of stock, conversion ratio | 1 | |||||
Dynatrace Holdings LLC | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Common stock, issued during the exchange (in shares) | shares | 241,547,218 |
Significant Accounting Polici_5
Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Apr. 01, 2020 | Mar. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Recognition of total right-of-use assets | $ 43,530 | ||||||
Total operating lease liabilities | 48,197 | ||||||
Shareholders' equity | 1,059,742 | $ 1,022,912 | $ 961,497 | ||||
Derecognized deferred rent | $ (3,500) | $ (10,200) | |||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | 306 | ||||||
Accumulated Deficit | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ (544,960) | $ (563,376) | (594,026) | ||||
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ 306 | ||||||
Accounting Standards Update 2016-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Recognition of total right-of-use assets | $ 50,600 | ||||||
Total operating lease liabilities | 50,700 | ||||||
Derecognized deferred rent | $ 3,300 | ||||||
Accounting Standards Update 2016-02 | Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Shareholders' equity | $ 300 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Amount | $ 182,911 | $ 143,298 | $ 507,005 | $ 395,226 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Amount | 100,918 | 82,946 | 281,806 | 231,388 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Amount | 55,945 | 39,676 | 154,868 | 107,494 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Amount | 20,643 | 16,231 | 56,854 | 44,414 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Amount | 5,405 | 4,445 | 13,477 | 11,930 |
Geographic Concentration Risk | Revenue Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Amount | $ 94,200 | $ 77,700 | $ 263,300 | $ 218,100 |
% | 51.00% | 54.00% | 52.00% | 55.00% |
Geographic Concentration Risk | Revenue Benchmark | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
% | 55.00% | 58.00% | 56.00% | 59.00% |
Geographic Concentration Risk | Revenue Benchmark | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
% | 31.00% | 28.00% | 30.00% | 27.00% |
Geographic Concentration Risk | Revenue Benchmark | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
% | 11.00% | 11.00% | 11.00% | 11.00% |
Geographic Concentration Risk | Revenue Benchmark | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
% | 3.00% | 3.00% | 3.00% | 3.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue and Deferred Revenue Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 182,911 | $ 143,298 | $ 507,005 | $ 395,226 |
Revenue recognized | 123,700 | 60,700 | 407,000 | 235,000 |
Remaining performance obligation, amount | 1,050,600 | 1,050,600 | ||
Billed consideration | ||||
Disaggregation of Revenue [Line Items] | ||||
Remaining performance obligation, amount | 471,900 | 471,900 | ||
Unbilled consideration | ||||
Disaggregation of Revenue [Line Items] | ||||
Remaining performance obligation, amount | 578,700 | 578,700 | ||
Revenue Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 94,200 | $ 77,700 | $ 263,300 | $ 218,100 |
Concentration risk percentage | 51.00% | 54.00% | 52.00% | 55.00% |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Narrative) (Details) | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 58.00% |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 42.00% |
Remaining performance obligation, expected timing of satisfaction, period |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 18,126 | $ 13,189 |
Income taxes refundable | 9,996 | 47,489 |
Other | 383 | 510 |
Prepaid expenses and other current assets | $ 28,505 | $ 61,188 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of period | $ 1,270,733 |
Foreign currency impact | 1,841 |
Balance, end of period | $ 1,272,574 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 596,525 | $ 596,112 |
Less: accumulated amortization | (433,643) | (394,520) |
Total intangible assets, net | $ 162,882 | 201,592 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in months) | 107 years | |
Total intangible assets | $ 189,967 | 189,554 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in months) | 120 months | |
Total intangible assets | $ 351,555 | 351,555 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in months) | 120 months | |
Total intangible assets | $ 55,003 | $ 55,003 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of other intangibles | $ 13,000 | $ 14,300 | $ 39,046 | $ 44,098 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 21.00% | (8.00%) | 22.00% | (112.00%) |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Accrued Expenses, Current | ||
Accrued employee - related expenses | $ 53,328 | $ 40,687 |
Accrued tax liabilities | 22,412 | 13,350 |
Accrued restructuring | 0 | 1,065 |
Accrued professional fees | 2,996 | 2,103 |
Income taxes payable | 8,165 | 20,756 |
Other | 17,887 | 15,767 |
Total accrued expenses, current | $ 104,788 | $ 93,728 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Total principal | $ 461,125 | $ 521,125 |
Unamortized discount and debt issuance costs | (9,698) | (11,140) |
Total debt | 451,427 | 509,985 |
Less: Current portion of long-term debt | 0 | 0 |
Long-term debt | $ 451,427 | $ 509,985 |
Secured Debt | First Lien Term Loan | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.40% | 3.20% |
Total principal | $ 461,125 | $ 521,125 |
Revolving Credit Facility | Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total principal | $ 0 | $ 0 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | |
First Lien Term Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 950,000,000 | |
Revolving credit facility | Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 60,000,000 | |
Available borrowing capacity | $ 44,200,000 | $ 44,700,000 |
Commitment fee percentage | 0.25% | |
Fronting fee percentage | 0.125% | |
Revolving credit facility | Line of Credit | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 25,000,000 | |
Letters of credit issued | $ 15,800,000 | $ 15,300,000 |
Alternative Base Rate | First Lien Term Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Basis spread on variable interest rate | 1.25% | |
London Interbank Offered Rate (LIBOR) | First Lien Term Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Basis spread on variable interest rate | 2.25% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 5 years 8 months 12 days | 5 years 8 months 12 days | ||
Weighted average discount rate | 7.60% | 7.60% | ||
Sublease Income | $ 1 | $ 1.2 | $ 3.3 | $ 3.4 |
Operating lease that has not yet commenced | $ 8.1 | $ 8.1 | ||
Total rent expense under ASC 840 | $ 3.5 | $ 10.2 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease that has not yet commenced, term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease that has not yet commenced, term | 10 years | 10 years |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 2,640 | $ 8,022 |
Short-term lease expense | 174 | 524 |
Variable lease expense | $ 205 | $ 549 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 10,251 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 2,600 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Operating Leases, After Adoption of 842: | ||
2021 | $ 3,181 | |
2022 | 12,073 | |
2023 | 11,406 | |
2024 | 10,412 | |
2025 | 7,196 | |
Thereafter | 14,795 | |
Total operating lease payments | 59,063 | |
Less: imputed interest | (10,866) | |
Total operating lease liabilities | $ 48,197 | |
Capital Leases, Before Adoption of 842: | ||
2021 | $ 14,210 | |
2022 | 11,663 | |
2023 | 11,235 | |
2024 | 10,864 | |
2025 | 8,020 | |
Thereafter | 16,331 | |
Total future contractual payments | $ 72,323 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)awardTypeshares | Dec. 31, 2019USD ($)participant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of award types | awardType | 2 | ||||
Effect of reorganization | $ 278,248 | ||||
Total unrecognized compensation cost | $ 53,800 | $ 53,800 | |||
Stock compensation expense | 15,588 | $ 13,513 | $ 43,091 | $ 209,684 | |
Management Incentive Units and Appreciation Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of participants impacted by the plan modification | participant | 306 | ||||
Incremental stock compensation expense recognized from the plan modification | $ 145,300 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of recognition | 2 years 10 months 24 days | ||||
Stock compensation expense | 4,500 | 2,700 | $ 12,300 | 4,500 | |
Unvested restricted stock and RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | 9,600 | 10,600 | $ 28,300 | 18,300 | |
Number of units granted (in shares) | shares | 1,285,474 | ||||
Time-based restricted units | Share-based Payment Arrangement, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of units granted (in shares) | shares | 1,250,474 | ||||
Vesting percentage | 25.00% | ||||
Award vesting period | 1 year | ||||
Time-based restricted units | Share-based Payment Arrangement, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 75.00% | ||||
Award vesting period | 3 years | ||||
Time-based restricted units | Share-based Payment Arrangement, Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of units granted (in shares) | shares | 35,000 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of recognition | 1 year 3 months 18 days | ||||
Number of units granted (in shares) | shares | 0 | ||||
Total unrecognized compensation cost | $ 11,400 | $ 11,400 | |||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of recognition | 2 years 9 months 18 days | ||||
Number of units granted (in shares) | shares | 1,285,000 | ||||
Total unrecognized compensation cost | $ 66,500 | $ 66,500 | |||
Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
ESPP offering period | 6 months | ||||
ESPP purchase period | 6 months | ||||
Employee Stock | Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
ESPP, maximum percentage of the common stock available for purchase | 85.00% | ||||
Equity Incentive Plan 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units authorized for issuance (in shares) | shares | 52,000,000 | 29,969,596 | 29,969,596 | ||
Annual increase in shares reserved for future issuance based off of shares outstanding | 4.00% | ||||
2019 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation expense | $ 1,500 | $ 200 | $ 2,500 | $ 200 | |
Total unrecognized compensation cost | $ 1,700 | $ 1,700 | |||
2019 Employee Stock Purchase Plan | Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units authorized for issuance (in shares) | shares | 8,727,792 | 8,727,792 | |||
Issuance of common stock related to employee stock purchase plan (in shares) | shares | 330,738 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | |
Number of Options | ||
Beginning balance (in shares) | shares | 7,147 | |
Granted (in shares) | shares | 2,305 | |
Exercised (in shares) | shares | (427) | |
Forfeited (in shares) | shares | (300) | |
Ending balance (in shares) | shares | 8,725 | 7,147 |
Options vested and exercisable at December 31, 2020 (in shares) | shares | 1,718 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ / shares | $ 16.26 | |
Granted (in dollars per share) | $ / shares | 33.55 | |
Exercised (in dollars per share) | $ / shares | 16.05 | |
Forfeited (in dollars per share) | $ / shares | 17.91 | |
Ending valance (in dollars per share) | $ / shares | 20.78 | $ 16.26 |
Options vested and exercisable at December 31, 2020 (in dollars per share) | $ / shares | $ 16.18 | |
Weighted average remaining contractual term | 8 years 9 months 18 days | 9 years 3 months 18 days |
Weighted average remaining contractual term, options vested and exercisable at December 31, 2020 | 8 years 7 months 6 days | |
Aggregate intrinsic value | $ | $ 196,185 | $ 54,423 |
Aggregate intrinsic value, options vested and exercisable at December 31, 2020 | $ | $ 46,538 | |
Restricted Stock | ||
Number of Restricted Shares | ||
Balance, March 31, 2020 (in shares) | shares | 1,984 | |
Granted (in shares) | shares | 0 | |
Vested (in shares) | shares | (1,009) | |
Forfeited (in shares) | shares | (103) | |
Balance, December 31, 2020 (in shares) | shares | 872 | 1,984 |
Weighted Average Grant Date Fair Value | ||
Balance, March 31, 2020 (in dollars per share) | $ / shares | $ 16 | |
Granted (in dollars per share) | $ / shares | 0 | |
Vested (in dollars per share) | $ / shares | 16 | |
Forfeited (in dollars per share) | $ / shares | 16 | |
Balance, December 31, 2020 (in dollars per share) | $ / shares | $ 16 | $ 16 |
Restricted Stock Units (RSUs) | ||
Number of Restricted Shares | ||
Balance, March 31, 2020 (in shares) | shares | 3,123 | |
Granted (in shares) | shares | 1,285 | |
Vested (in shares) | shares | (1,036) | |
Forfeited (in shares) | shares | (148) | |
Balance, December 31, 2020 (in shares) | shares | 3,224 | 3,123 |
Weighted Average Grant Date Fair Value | ||
Balance, March 31, 2020 (in dollars per share) | $ / shares | $ 16.39 | |
Granted (in dollars per share) | $ / shares | 33.73 | |
Vested (in dollars per share) | $ / shares | 16.15 | |
Forfeited (in dollars per share) | $ / shares | 18.70 | |
Balance, December 31, 2020 (in dollars per share) | $ / shares | $ 23.27 | $ 16.39 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 15,588 | $ 13,513 | $ 43,091 | $ 209,684 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 2,066 | 1,317 | 5,430 | 17,346 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 3,259 | 2,173 | 8,666 | 36,679 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 6,480 | 6,707 | 18,007 | 78,592 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 3,783 | $ 3,316 | $ 10,988 | $ 77,067 |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Narrative (Details) - $ / shares | Aug. 01, 2019 | Jul. 30, 2019 |
Subsidiary, Sale of Stock [Line Items] | ||
Conversion of stock, conversion price (in dollars per share) | $ 16 | |
IPO | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of shares sold and issued (in shares) | 38,873,174 | |
Sale of stock price per share (in dollars per share) | $ 16 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||||
Net income (loss) | $ 18,416 | $ 1,763 | $ 48,760 | $ (464,726) |
Denominator: | ||||
Weighted average shares outstanding, basic (in shares) | 281,010 | 277,926 | 280,057 | 260,383 |
Dilutive effect of stock-based awards (in shares) | 5,417 | 2,230 | 5,827 | 0 |
Weighted average shares outstanding, diluted (in shares) | 286,427 | 280,156 | 285,884 | 260,383 |
Net income (loss) per share, basic (in dollars per share) | $ 0.07 | $ 0.01 | $ 0.17 | $ (1.78) |
Net income (loss) per share, diluted (in dollars per share) | $ 0.06 | $ 0.01 | $ 0.17 | $ (1.78) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 2,185 | 79 | 1,777 | 3,970 |
Unvested restricted stock and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 6 | 10 | 31 | 3,334 |
Shares committed under ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 2 | 15 | 2 | 21 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Affiliated Entity | Financial And Management Advisory Services | ||||
Related Party Transaction [Line Items] | ||||
Transfers to related parties | $ 0 | $ 0 | $ 0 | $ 1,600,000 |
Related Party Debt (Details)
Related Party Debt (Details) - Subordinated Debt - Subordinated Demand Promissory Notes - Affiliated Entity - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 01, 2015 | |
Related Party Transaction [Line Items] | |||||
Debt instrument, face amount | $ 1,800,000,000 | ||||
Interest expense | $ 0 | $ 0 | $ 0 | $ 4,100,000 |
Geographic Information - Summar
Geographic Information - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 35,384 | $ 31,508 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 12,028 | 11,296 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 21,687 | 18,590 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 1,611 | 1,564 |
Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 58 | $ 58 |