Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2022 | May 22, 2022 | Sep. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2022 | ||
Current Fiscal Year End Date | --03-31 | ||
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, City or Town | Waltham | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02451 | ||
City Area Code | 781 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14.1 | ||
Entity Common Stock, Shares Outstanding | 286,843,026 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated by reference in Part III of this Annual Report on Form 10-K. Such Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ending March 31, 2022. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement is not deemed to be filed as part of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001773383 |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, LLP |
Auditor Location | Troy, MI |
Auditor Firm ID | 243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 462,967 | $ 324,962 |
Accounts receivable, net | 350,666 | 242,079 |
Deferred commissions, current | 62,601 | 48,986 |
Prepaid expenses and other current assets | 72,188 | 64,255 |
Total current assets | 948,422 | 680,282 |
Property and equipment, net | 45,271 | 36,916 |
Operating lease right-of-use asset, net | 58,849 | 42,959 |
Goodwill | 1,281,876 | 1,271,195 |
Other intangible assets, net | 105,736 | 149,484 |
Deferred tax assets, net | 28,106 | 16,811 |
Deferred commissions, non-current | 63,435 | 48,638 |
Other assets | 9,615 | 9,933 |
Total assets | 2,541,310 | 2,256,218 |
Current liabilities: | ||
Accounts payable | 22,715 | 9,621 |
Accrued expenses, current | 141,556 | 119,527 |
Deferred revenue, current | 688,554 | 509,272 |
Operating lease liabilities, current | 12,774 | 9,491 |
Total current liabilities | 865,599 | 647,911 |
Deferred revenue, non-current | 25,783 | 47,504 |
Accrued expenses, non-current | 19,409 | 16,072 |
Operating lease liabilities, non-current | 52,070 | 38,203 |
Deferred tax liabilities | 85 | 1,014 |
Long-term debt, net | 273,918 | 391,913 |
Total liabilities | 1,236,864 | 1,142,617 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common shares, $0.001 par value, 600,000,000 shares authorized, 286,053,276 and 283,130,238 shares issued and outstanding at March 31, 2022 and 2021, respectively | 286 | 283 |
Additional paid-in capital | 1,792,197 | 1,653,328 |
Accumulated deficit | (461,348) | (513,799) |
Accumulated other comprehensive loss | (26,689) | (26,211) |
Total shareholders' equity | 1,304,446 | 1,113,601 |
Total liabilities and shareholders' equity | $ 2,541,310 | $ 2,256,218 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 |
Common shares, issued (in shares) | 286,053,276 | 283,130,238 |
Common shares, outstanding (in shares) | 286,053,276 | 283,130,238 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | |||
Total revenue | $ 929,445 | $ 703,509 | $ 545,803 |
Cost of revenue: | |||
Amortization of acquired technology | 15,513 | 15,317 | 16,449 |
Total cost of revenue | 172,876 | 127,708 | 128,931 |
Gross profit | 756,569 | 575,801 | 416,872 |
Operating expenses: | |||
Research and development | 156,342 | 111,415 | 119,281 |
Sales and marketing | 362,116 | 245,487 | 266,175 |
General and administrative | 126,622 | 92,219 | 161,983 |
Amortization of other intangibles | 30,157 | 34,744 | 40,280 |
Restructuring and other | 25 | 40 | 1,092 |
Total operating expenses | 675,262 | 483,905 | 588,811 |
Income (loss) from operations | 81,307 | 91,896 | (171,939) |
Interest expense, net | (10,192) | (14,205) | (45,397) |
Other income (expense), net | 544 | 162 | (1,197) |
Income (loss) before income taxes | 71,659 | 77,853 | (218,533) |
Income tax expense | (19,208) | (2,139) | (195,284) |
Net income (loss) | $ 52,451 | $ 75,714 | $ (413,817) |
Net income (loss) per share: | |||
Net income (loss) per share, basic (in dollars per share) | $ 0.18 | $ 0.27 | $ (1.56) |
Net income (loss) per share, diluted (in dollars per share) | $ 0.18 | $ 0.26 | $ (1.56) |
Weighted average shares outstanding: | |||
Weighted average shares outstanding, basic (in shares) | 284,161 | 280,469 | 264,933 |
Weighted average shares outstanding, diluted (in shares) | 290,903 | 286,509 | 264,933 |
Subscription | |||
Revenue: | |||
Total revenue | $ 870,385 | $ 655,180 | $ 487,817 |
Cost of revenue: | |||
Cost of revenues | 111,646 | 77,488 | 73,193 |
License | |||
Revenue: | |||
Total revenue | 54 | 1,446 | 12,686 |
Service | |||
Revenue: | |||
Total revenue | 59,006 | 46,883 | 45,300 |
Cost of revenue: | |||
Cost of revenues | $ 45,717 | $ 34,903 | $ 39,289 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 52,451 | $ 75,714 | $ (413,817) |
Other comprehensive (loss) income | |||
Foreign currency translation adjustment | (478) | (8,106) | 4,982 |
Effect of reorganization | 0 | 0 | 6,623 |
Total other comprehensive (loss) income | (478) | (8,106) | 11,605 |
Comprehensive income (loss) | $ 51,973 | $ 67,608 | $ (402,212) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity/Member’S 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 Stockholders' Equity [Roll Forward] | |||||||
Foreign currency translation | 4,982 | 4,982 | |||||
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) | 503,000 | ||||||
Restricted stock awards forfeited (in shares) | (70,000) | ||||||
Exercise of stock options (in shares) | 0 | ||||||
Share-based compensation | $ 35,786 | 35,786 | |||||
Equity repurchases | (156) | (156) | |||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-02 [Member] | ||||||
Net income (loss) | (413,817) | (413,817) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 280,853,000 | ||||||
Ending balance at Mar. 31, 2020 | 965,704 | $ 306 | $ 281 | 1,573,347 | (589,819) | $ 306 | (18,105) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Foreign currency translation | (8,106) | (8,106) | |||||
Restricted stock units vested (in shares) | 1,256,000 | ||||||
Restricted stock units vested | 1 | $ 1 | |||||
Restricted stock awards forfeited (in shares) | (110,000) | ||||||
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) | 800,000 | ||||||
Exercise of stock options | 13,052 | $ 1 | 13,051 | ||||
Share-based compensation | 57,784 | 57,784 | |||||
Equity repurchases | (49) | (49) | |||||
Net income (loss) | $ 75,714 | 75,714 | |||||
Ending balance (in shares) at Mar. 31, 2021 | 283,130,238 | 283,130,000 | |||||
Ending balance at Mar. 31, 2021 | $ 1,113,601 | $ 283 | 1,653,328 | (513,799) | (26,211) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Foreign currency translation | (478) | (478) | |||||
Restricted stock units vested (in shares) | 1,305,000 | ||||||
Restricted stock units vested | 0 | $ 1 | (1) | ||||
Restricted stock awards forfeited (in shares) | (20,000) | ||||||
Issuance of common stock related to employee stock purchase plan (in shares) | 372,000 | ||||||
Issuance of common stock related to employee stock purchase plan | $ 13,913 | $ 1 | 13,912 | ||||
Exercise of stock options (in shares) | 1,266,000 | 1,266,000 | |||||
Exercise of stock options | $ 25,489 | $ 1 | 25,488 | ||||
Share-based compensation | 99,536 | 99,536 | |||||
Equity repurchases | (66) | (66) | |||||
Net income (loss) | $ 52,451 | 52,451 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 286,053,276 | 286,053,000 | |||||
Ending balance at Mar. 31, 2022 | $ 1,304,446 | $ 286 | $ 1,792,197 | $ (461,348) | $ (26,689) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 52,451 | $ 75,714 | $ (413,817) |
Adjustments to reconcile net income (loss) to cash provided by (used in) operations: | |||
Depreciation | 10,638 | 9,022 | 7,864 |
Amortization | 46,238 | 51,942 | 58,457 |
Share-based compensation | 99,536 | 57,784 | 222,478 |
Deferred income taxes | (12,401) | (7,036) | (46,221) |
Other | 1,486 | 1,845 | 6,129 |
Net change in operating assets and liabilities: | |||
Accounts receivable | (108,848) | (81,992) | (44,021) |
Deferred commissions | (29,533) | (16,323) | (20,107) |
Prepaid expenses and other assets | (8,108) | 5,669 | (57,588) |
Accounts payable and accrued expenses | 35,946 | 26,592 | 53,004 |
Operating leases, net | 1,353 | 731 | 0 |
Deferred revenue | 162,159 | 96,488 | 91,367 |
Net cash provided by (used in) operating activities | 250,917 | 220,436 | (142,455) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (17,695) | (14,076) | (19,721) |
Capitalized software costs | 0 | 197 | (892) |
Acquisition of businesses, net of cash acquired | (13,195) | 0 | 0 |
Net cash used in investing activities | (30,890) | (13,879) | (20,613) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriters' discounts and commissions | 0 | 0 | 590,297 |
Settlement of deferred offering costs | 0 | 0 | (5,000) |
Debt issuance costs | 0 | 0 | (866) |
Repayment of term loans | (120,000) | (120,000) | (515,189) |
Contribution for tax associated with reorganization | 0 | 0 | 265,000 |
Proceeds from employee stock purchase plan | 13,913 | 9,195 | 0 |
Proceeds from exercise of stock options | 25,489 | 13,052 | 0 |
Equity repurchases | (66) | (49) | (156) |
Installments related to acquisitions | 0 | 0 | (4,694) |
Net cash (used in) provided by financing activities | (80,664) | (97,802) | 329,392 |
Effect of exchange rates on cash and cash equivalents | (1,358) | 3,037 | (4,468) |
Net increase in cash and cash equivalents | 138,005 | 111,792 | 161,856 |
Cash and cash equivalents, beginning of year | 324,962 | 213,170 | 51,314 |
Cash and cash equivalents, end of year | 462,967 | 324,962 | 213,170 |
Supplemental cash flow data: | |||
Cash paid for interest | 8,375 | 12,475 | 39,568 |
Cash paid for (received from) tax, net | 24,247 | (7,337) | 266,708 |
Noncash investing and financing activities: | |||
Reclassification of related party payable upon reorganization | 0 | 0 | 600,622 |
Modification of MIU Plan awards | $ 0 | $ 0 | $ 278,248 |
Description of the Business
Description of the Business | 12 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Business Dynatrace, Inc. (“Dynatrace”, or the “Company”) designed its all-in-one Dynatrace ® Software Intelligence Platform 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 deliver precise answers about the performance and security of applications, the underlying infrastructure, and the experience of its customers’ users that enables organizations to innovate faster, operate more efficiently, and improve user experiences for consistently 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 2022, for example, refer to the fiscal year ended March 31, 2022. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2022 | |
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 were under common control since December 15, 2014. Therefore, these 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 consolidated financial statements exclude their accounts and results. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in the accompanying consolidated financial statements. The income tax amounts in the accompanying consolidated financial statements have been calculated based on a separate return methodology and presented as if the Company’s operations were separate taxpayers in the respective jurisdictions. As described in Note 15, prior to the reorganization the consolidated financial statements reflected the debt and debt service associated with subordinated demand promissory notes payable to a related party. The 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 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 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. The IPO also included the sale of 2.1 million shares of common stock, by selling stockholders, inclusive of the underwriters’ option to purchase additional shares that was exercised in full. The Company did not receive any proceeds from the sale of common stock by the selling stockholders. 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. Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of the Company’s principal foreign subsidiaries is the currency of the country in which each entity operates. Accordingly, assets and liabilities in the consolidated balance sheets have been translated at the rate of exchange at the balance sheet date, and revenues and expenses have been translated at average exchange rates prevailing during the period the transactions occurred. Translation adjustments have been excluded from the results of operations and are reported as accumulated other comprehensive loss within the consolidated statements of shareholders’ equity / member’s deficit. Transaction gains and losses generated by the effect of changes in foreign currency exchange rates on recorded assets and liabilities denominated in a currency different than the functional currency of the applicable entity are recorded in “Other income (expense), net” in the consolidated statements of operations. Use of estimates The preparation of 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 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, income taxes, equity-based compensation expense, 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. Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis, for purposes of making operating decisions, assessing financial performance and allocating resources. Business combinations When the Company acquires a business, management allocates the purchase price to the net tangible and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted average cost of capital and the cost savings expected to be derived from acquiring an asset. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in “Other income (expense), net” in the consolidated statement of operations. In fiscal 2022, the Company completed acquisitions of entities in the software intelligence and automation business for total cash consideration, net of cash acquired, of $13.2 million. As a result, the Company recognized goodwill of $11.0 million and intangible assets of $2.6 million related to technology with an estimated useful life of 9 years. Goodwill generated from the acquisitions is attributable to increased synergies that are expected to be achieved from the integration of the acquired developed technology into the Dynatrace ® platform, and is not deductible for tax purposes. The results of operations of the acquired entities have been included within the Company’s consolidated statements of operations from the acquisition date. The acquisitions were not material to the consolidated financial statements. Revenue recognition The Company sells software licenses, subscriptions, maintenance and support, and professional services together in contracts with its customers, which include end-customers and channel partners. The Company’s software license agreements provide customers with a right to use software perpetually or for a defined term. As required under applicable accounting principles, the goods and services that the Company promises to transfer to a customer are accounted for separately if they are distinct from one another. Promised items that are not distinct are bundled as a combined performance obligation. The transaction price is allocated to the performance obligations based on the relative estimated standalone selling prices of those performance obligations. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with a customer The Company considers the terms and conditions of the contract in identifying the contracts. The Company determines a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, it has been determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company will evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit, and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the services and the products that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. In identifying performance obligations, the Company reviews contractual terms, considers whether any implied rights exist, and evaluates published product and marketing information. The Company’s performance obligations consist of (i) software licenses, (ii) subscription services, (ii) maintenance and support for software licenses, and (iv) professional services. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company’s contracts do not contain a significant financing component. 4. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) for arrangements not including software licenses or subscription services. The Company has determined that its pricing for software licenses and subscription services is highly variable and therefore allocates the transaction price to those performance obligations using the residual approach. 5. Recognition of revenue when, or as a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized when control of the service is transferred to the customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. Subscription Subscription revenue relates to performance obligations for which the Company recognizes revenue over time as control of the product or service is transferred to the customer. Subscription revenue includes arrangements that permit customers to access and utilize the Company’s hosted software delivered on a SaaS basis, term-based and perpetual licenses of the Company’s Dynatrace Software, as well as maintenance. The when-and-if available updates of the Dynatrace Software, which are part of the maintenance agreement, are critical to the continued utility of the Dynatrace Software; therefore, the Company has determined the Dynatrace Software and the related when-and-if available updates to be a combined performance obligation. Accordingly, when Dynatrace Software is sold under a term-based license, the revenue associated with this combined performance obligation is recognized ratably over the license term as maintenance is included for the duration of the license term. The Company has determined that perpetual licenses of Dynatrace Software provide customers with a material right to acquire additional goods or services that they would not receive without entering into the initial contract as the renewal option for maintenance services allows the customer to extend the utility of the Dynatrace Software without having to again make the initial payment of the perpetual software license fee. The associated material right is deferred and recognized ratably over the term of the expected optional maintenance renewals. Subscription revenue also includes maintenance services relating to the Company’s Classic offerings as that revenue is recognized over time given that the obligation is a stand-ready obligation to provide customer support and when-and-if available updates to the Classic software as well as certain other stand-ready obligations. License License revenue relates to performance obligations for which the Company recognizes revenue at the point that the license is transferred to the customer. License revenue includes these perpetual and term-based licenses that relate to the Company’s Classic offerings (“Classic Software Licenses”), which are focused on traditional customer approaches to building, operating and monitoring software in less dynamic environments. The Company requires customers purchasing perpetual licenses of Classic Software and Dynatrace Software, as defined below, to also purchase maintenance services covering at least one year from the beginning of the perpetual license. The Company has determined that the Classic Software Licenses and the related maintenance services are separate performance obligations with different patterns of recognition. Revenue from Classic Software Licenses is recognized upon delivery of the license. Revenue from maintenance is recognized over the period of time of the maintenance agreement and is included in “Subscription”. Service The Company offers implementation, consulting and training services for the Company’s software solutions and SaaS offerings. Services fees are generally based on hourly rates. Revenues from services are recognized in the period the services are performed, provided that collection of the related receivable is reasonably assured. Deferred commissions Deferred sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new contracts are deferred and then amortized on a straight-line basis over a period of benefit which the Company has estimated to be three years. The period of benefit has been determined by taking into consideration the duration of customer contracts, the life of the technology, renewals of maintenance and other factors. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. Amortization expense is included in “Sales and marketing” expenses on the consolidated statements of operations. The Company periodically reviews these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred commissions. There were no impairment losses recorded during the periods presented. Deferred revenue Deferred revenue consists primarily of billed subscription and maintenance fees related to the future service period of subscription and maintenance agreements in effect at the reporting date. Deferred licenses are also included in deferred revenue for those billed arrangements that are being recognized over time. Short-term deferred revenue represents the unearned revenue that will be earned within twelve months of the balance sheet date; whereas, long-term deferred revenue represents the unearned revenue that will be earned after twelve months from the balance sheet date. Payment terms Payment terms and conditions vary by contract type, although the Company’s terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of payment, the Company has determined that its contracts do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing products and services, not to receive financing from customers or to provide customers with financing. Contract modification Contract modifications are assessed to determine (i) if the additional goods and services are distinct from the goods and services in the original arrangement; and (ii) if the amount of the consideration expected for the added goods and services reflects the stand-alone selling price of those goods and services, as adjusted for contract-specific circumstances. The Company’s additional goods and services offered have historically been distinct. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract, which the Company accounts for on a prospective basis as the termination of the existing contract and the creation of a new contract. Cost of revenue Cost of subscription Cost of subscription revenue includes all direct costs to deliver the Company’s subscription products including salaries, benefits, share-based compensation and related expenses such as employer taxes, third-party hosting fees related to the Company’s cloud services, allocated overhead for facilities, IT, and amortization of internally developed capitalized software technology. The Company recognizes these expenses as they are incurred. Cost of service Cost of service revenue includes salaries, benefits, share-based compensation and related expenses such as employer taxes for our services organization, allocated overhead for depreciation of equipment, facilities and IT, and amortization of acquired intangible assets. The Company recognizes expense related to its services organization as they are incurred. Amortization of acquired technology Amortization of acquired technology includes amortization expense for technology acquired in business combinations. Research and development Research and development (“R&D”) costs primarily include the cost of programming personnel including share-based compensation. R&D costs related to the Company’s software solutions are reported as “Research and development” in the consolidated statements of operations. Advertising Advertising costs are expensed as incurred and are included in “Sales and marketing” expense in the consolidated statements of operations. Advertising expense was $49.9 million, $26.4 million, and $5.7 million during the years ended March 31, 2022, 2021 and 2020, respectively. 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 consolidated balance sheets. The Company does not record leases with terms of 12 months or less on the consolidated balance sheets. Lease expense is recognized on a straight-line basis over the expected lease term. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. There is presently no concentration of credit risk for customers as no individual entity represented more than 10% of the balance in accounts receivable as of March 31, 2022, 2021 and 2020 or 10% of revenue for the years ended March 31, 2022, 2021 and 2020. Cash and cash equivalents All highly-liquid investments with a maturity of three months or less when purchased are considered cash and cash equivalents. Accounts receivable, net Trade accounts receivable are recorded at the invoiced amount. Accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company’s customers’ financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates. Allowance for credit losses was $3.2 million and $1.3 million and is classified as “Accounts receivable, net” in the consolidated balance sheets as of March 31, 2022 and 2021, respectively. Property and equipment, net The Company states property and equipment, net, at the acquisition cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are depreciated over the shorter of the useful lives of the assets or the related lease. The following table presents the estimated useful lives of the Company’s property and equipment: Computer equipment and software 3 - 5 years Furniture and fixtures 5 - 10 years Leasehold improvements Shorter of 10 years or the lease term Property and equipment are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if an impairment exists. If the asset is determined to be impaired, the impairment loss is measured based on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of carrying value or net realizable value. There was no impairment of property and equipment during the years ended March 31, 2022, 2021 and 2020. Goodwill and other intangible assets The Company’s goodwill and intangible assets primarily relate to the push-down of such assets relating to Thoma Bravo’s December 15, 2014 acquisition of Compuware Corporation based on their relative fair values at the date of acquisition. Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. Goodwill is evaluated for impairment annually in the fourth quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. Since the Company’s acquisition by Thoma Bravo through March 31, 2022, the Company has not had any goodwill impairment. Intangible assets consist primarily of customer relationships, developed technology, tradenames and trademarks, all of which have a finite useful life, as well as goodwill. Intangible assets are amortized based on either the pattern in which the economic benefits of the intangible assets are estimated to be realized or on a straight-line basis, which approximates the manner in which the economic benefits of the intangible asset will be consumed. Capitalized software The Company’s capitalized software includes the costs of internally developed software technology and software technology purchased through acquisition. Internally developed software technology consists of development costs associated with software products to be sold (“software products”) and internal use software associated with hosted software. Costs associated with the development of software technology are expensed prior to the establishment of technological feasibility and capitalized thereafter until the related software technology is available for general release to customers. Technological feasibility is established when management has authorized and committed to funding a project and it is probable that the project will be completed, and the software will be used to perform the function intended. For internal use software, capitalization begins during the application development stage. Internally developed software technology is recorded within “Other intangible assets, net” in the consolidated balance sheets. During the year ended March 31, 2022, the Company did not capitalize any costs for internally developed software technology. The Company capitalized $0.3 million, offset by $0.5 million of derecognized software costs, and $0.9 million for internally developed software technology during the years ended March 31, 2021 and 2020, respectively. The amortization of capitalized software technology is computed on a project-by-project basis. The annual amortization is the greater of the amount computed using (a) the ratio of current gross revenues compared with the total of current and anticipated future revenues for the software technology or (b) the straight-line method over the remaining estimated economic life of the software technology, including the period being reported on. Amortization begins when the software technology is available for general release to customers. The amortization period for capitalized software is generally three Impairment of long-lived assets Long-lived assets, including amortized intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is estimated by the Company using discounted cash flows and other market-related valuation models, including earnings multiples and comparable asset market values. If circumstances change or events occur to indicate that the Company’s fair market value has fallen below book value, the Company will compare the estimated fair value of long-lived assets (including goodwill) to its book value. If the book value exceeds the estimated fair value, the Company will recognize the difference as an impairment loss in the consolidated statements of operations. The Company has not incurred any impairment losses during the years ended March 31, 2022, 2021 and 2020. Income taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax ra |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of revenue The following table is a summary of the Company’s total revenue by geographic region (in thousands, except percentages): Fiscal Year Ended March 31, 2022 2021 2020 Amount % Amount % Amount % North America $ 512,946 56 % $ 388,188 55 % $ 318,299 58 % Europe, Middle East and Africa 278,902 30 % 216,647 31 % 150,418 28 % Asia Pacific 96,454 10 % 78,295 11 % 60,418 11 % Latin America 41,143 4 % 20,379 3 % 16,668 3 % Total revenue $ 929,445 $ 703,509 $ 545,803 For the years ended March 31, 2022, 2021, and 2020, the United States was the only country that represented more than 10% of the Company’s revenues in any period, constituting $477.2 million and 51%, $362.1 million and 51%, and $299.5 million and 55% of total revenue, respectively. Deferred commissions The following table represents a rollforward of the Company’s deferred commissions (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Beginning balance $ 97,624 $ 78,245 $ 59,250 Additions to deferred commissions 89,899 63,627 54,969 Amortization of deferred commissions (61,487) (44,248) (35,974) Ending Balance $ 126,036 $ 97,624 $ 78,245 Deferred commissions, current 62,601 48,986 38,509 Deferred commissions, non-current 63,435 48,638 39,736 Total deferred commissions $ 126,036 $ 97,624 $ 78,245 Deferred revenue Revenue recognized during the years ended March 31, 2022, 2021, and 2020 which was included in the deferred revenue balances at the beginning of each respective period, was $502.4 million, $381.6 million, and $274.7 million. Remaining performance obligations As of March 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,566.3 million, which consists of both billed consideration in the amount of $714.3 million and unbilled consideration in the amount of $852.0 million that the Company expects to recognize as subscription and service revenue. The Company expects to recognize 58% of this amount as revenue in the year ended March 31, 2023 and the remainder thereafter. |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business CombinationsIn November 2017, the Company completed the acquisition of Qumram AG (Qumram), a Swiss company whose technology allows organizations to gain insight into user behavior and enhance customer experience by recording, analyzing and visually replaying user sessions, for an aggregate purchase price of $20.8 million. Total cash consideration net of cash acquired was $11.3 million. The Company recorded a payment obligation of $8.5 million, of which $0.0 million was classified as “Accrued expenses, current” in its consolidated balance sheet for the year ended March 31, 2021 and no purchase obligations are outstanding as of March 31, 2022. Of the total purchase price, $1.7 million was allocated to acquired technology and an immaterial amount to net tangible assets acquired, with the excess $18.7 million of the purchase price over the fair value of net tangible and intangible assets acquired recorded as goodwill. The Company also recognized transaction costs of approximately $0.2 million, which are included in “General and administrative” expense in its consolidated statement of operations for the year ended March 31, 2018. The acquired technology has an estimated useful life of 6 years and is recorded within “Other intangible assets, net” in the consolidated balance sheets. The acquisition has been accounted for as a business combination under the acquisition method. Goodwill generated from the acquisition is attributable to expected synergies from future growth and potential future monetization opportunities, and is not deductible for tax purposes. Pro forma revenue and results of operations have not been presented because the historical results of Qumram were not material to the Company’s consolidated financial statements in any period presented. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 2021 Prepaid expenses $ 24,791 $ 20,308 Income taxes refundable 40,723 41,875 Other 6,674 2,072 Prepaid expenses and other current assets $ 72,188 $ 64,255 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following table summarizes, by major classification, the components of property and equipment (in thousands): March 31, 2022 2021 Computer equipment and software $ 30,387 $ 23,134 Furniture and fixtures 10,729 9,804 Leasehold improvements 29,927 27,961 Other 7,663 864 Total property and equipment 78,706 61,763 Less: accumulated depreciation and amortization (33,435) (24,847) Property and equipment, net $ 45,271 $ 36,916 Depreciation and amortization of property and equipment totaled $10.6 million, $9.0 million, and $7.9 million for the years ended March 31, 2022, 2021, and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2022 | |
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 fiscal 2022 consists of the following (in thousands): March 31, 2022 Balance, beginning of year $ 1,271,195 Goodwill from acquisitions 10,965 Foreign currency impact (284) Balance, end of year $ 1,281,876 Other intangible assets, net excluding goodwill consists of the following (in thousands): Weighted Average Useful Life (in months) March 31, 2022 2021 Capitalized software 107 $ 191,900 $ 189,398 Customer relationships 120 351,555 351,555 Trademarks and tradenames 120 55,003 55,003 Total intangible assets 598,458 595,956 Less: accumulated amortization (492,722) (446,472) Total other intangible assets, net $ 105,736 $ 149,484 Amortization of other intangible assets totaled $46.2 million, $51.9 million, and $58.5 million for the years ended March 31, 2022, 2021, and 2020, respectively. As of March 31, 2022, the estimated future amortization expense of the Company’s other intangible assets in the table above is as follows (in thousands): Fiscal Year Ended March 31, 2023 2024 2025 2026 2027 Thereafter Capitalized software $ 15,802 $ 15,499 $ 10,906 $ 274 $ 274 $ 909 Customer relationships 20,794 17,534 10,473 — — — Trademarks and tradenames 5,501 4,753 3,017 — — — Total amortization $ 42,097 $ 37,786 $ 24,396 $ 274 $ 274 $ 909 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provision Income (loss) before income taxes and the income tax expense includes the following (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Domestic $ (2,977) $ 37,368 $ (245,177) Foreign 74,636 40,485 26,644 Total $ 71,659 $ 77,853 $ (218,533) The income tax provision includes the following (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Income tax expense (benefit) Federal $ 8,290 $ (3,835) $ 180,402 State 2,257 (2,071) 48,045 Foreign 21,406 15,110 13,058 Total current tax position 31,953 9,204 241,505 Federal (1,341) (3,027) (37,731) State — (615) (5,689) Foreign (11,404) (3,423) (2,801) Total deferred tax provision (12,745) (7,065) (46,221) Total income tax expense $ 19,208 $ 2,139 $ 195,284 The Company’s income tax expense of $19.2 million for the year ended March 31, 2022 differed from the amount computed on pre-tax income at the U.S. federal income tax rate of 21%, primarily due to foreign earnings taxed at rates higher than the U.S. statutory tax rate, foreign withholding taxes, and the inability to realize certain tax benefits subject to a valuation allowance in the U.S. This was partially offset by the vesting of share-based compensation that generated excess tax benefits, the foreign-derived intangible income deduction, and the utilization of U.S. foreign tax credits generated in the current year. The Company’s income tax expense of $2.1 million for the year ended March 31, 2021 differed from the amount computed on pre-tax loss at the U.S. federal income tax rate of 21%, primarily due to the impact of tax return to provision true-ups resulting from changes in estimates to the reorganization transaction tax and the corresponding impact to the uncertain tax positions. In addition, the difference was due to the vesting of share-based compensation that generated excess tax benefits, the foreign-derived intangible income deduction, and the utilization of U.S. foreign tax credits generated in the current year as well as the carryforward from previous years. The Company’s income tax expense of $195.3 million for the year ended March 31, 2020 differed from the amount computed on pre-tax loss at the U.S. federal income tax rate of 21% because of the effects of the reorganization transaction, non-deductible share-based compensation, and the foreign-derived intangible income deduction. The transaction produced a gain on the difference between the fair market value of the Compuware assets distributed and the adjusted tax basis in such assets, generating a tax liability that was only partially offset by U.S. foreign tax credits that previously were subject to a valuation allowance. The tax rate reconciliation is as follows (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Income tax expense (benefit) at U.S. federal statutory income tax rate $ 15,048 $ 16,349 $ (45,892) State and local tax expense (3,065) (580) (2,897) Foreign tax rate differential 3,181 1,939 3,521 Branch income 11,016 4,830 1,601 Non-deductible expenses 976 3,459 5,976 Tax credits (27,983) (9,316) (57,277) Foreign-derived intangible income deduction (2,708) (4,775) (3,901) Tax associated with reorganization — — 239,990 Share-based compensation (17,258) (6,424) 48,129 Prior year tax return to provision true-ups (178) (11,464) — Changes in uncertain tax positions 501 (1,102) 13,204 Changes in valuation allowance 32,026 2,091 (9,472) Foreign withholding tax 9,312 6,992 4,231 Effects of changes in tax laws (859) — — Other adjustments (801) 140 (1,929) Total income tax expense $ 19,208 $ 2,139 $ 195,284 Deferred tax assets and liabilities Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the U.S. cumulative loss incurred over the three-year period ended March 31, 2022. Such objective evidence limits the ability to consider other subjective evidence such as the Company’s projections for future growth. Based on this evaluation, a valuation allowance of $56.3 million and $24.3 million has been recorded as of March 31, 2022 and 2021, respectively. Only the portion of the deferred tax asset that is more likely than not to be realized has been recorded. Given the Company’s current earnings and anticipated future earnings, it is reasonably possible that within the next twelve months sufficient positive evidence may become available to allow the Company to conclude that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets. However, the exact timing and amount of the valuation allowance release are subject to change based on the Company’s ability to generate U.S. taxable earnings. Temporary differences and carryforwards that give rise to a significant portion of deferred tax assets and liabilities are as follows (in thousands): March 31, 2022 2021 Deferred revenue $ 23,686 $ 17,050 Capitalized research and development costs 13,374 10,834 Accrued expenses 10,361 8,882 Share-based compensation 23,484 8,367 Lease liabilities 12,835 8,321 Net operating loss carryforwards 6,591 4,637 Other tax carryforwards, primarily foreign tax credits 30,692 20,479 Other 2,403 2,272 Total deferred tax assets before valuation allowance 123,426 80,842 Less: valuation allowance (56,323) (24,297) Net deferred tax assets 67,103 56,545 Intangible assets 23,878 30,525 Right-of-use assets 11,183 7,388 Other 4,021 2,835 Total deferred tax liabilities 39,082 40,748 Net deferred tax assets $ 28,021 $ 15,797 At March 31, 2022, the Company had non-U.S. net operating loss carryforwards of $18.2 million of which $17.6 million may be carried forward indefinitely. The Company had U.S. federal, state and local net operating loss carryforwards and tax credit carryforwards of $71.2 million of which $66.1 million expire in periods through 2040 if not utilized, and the remaining balance of $5.1 million may be carried forward indefinitely. The deferred tax assets on U.S. net operating loss and tax credit carryforwards are subject to valuation allowances as of March 31, 2022. The Company has not provided for taxes on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, these earnings will be treated as previously taxed income from either the one-time transition tax or Global Intangible Low Taxed Income (“GILTI”), or they will be offset with a 100% dividend received deduction. The income taxes applicable to repatriating such earnings are not readily determinable. As of March 31, 2022, the Company had no plans which would subject these basis differences to income taxes in the United States or elsewhere. Uncertain tax positions The amount of gross unrecognized tax benefits was $15.0 million and $15.1 million as of March 31, 2022 and 2021, respectively, all of which would favorably affect the Company’s effective tax rate if recognized in future periods. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended March 31, 2022, 2021, and 2020 (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Gross unrecognized tax benefit, beginning of year $ 15,075 $ 16,648 $ 9,653 Gross increases to tax positions for prior periods 255 1,223 438 Gross decreases to tax positions for prior periods — (2,654) (6,986) Gross increases to tax positions for current period — — 13,543 Settlements — (10) — Lapse of statutes of limitations (313) (132) — Gross unrecognized tax benefit, end of year $ 15,017 $ 15,075 $ 16,648 As of March 31, 2022 and 2021, the net interest and penalties payable associated with its uncertain tax positions was $1.5 million and $0.9 million, respectively. During the years ended March 31, 2022, 2021, and 2020, the Company recognized expense related to interest and penalties of $0.6 million, $0.6 million, and $0.2 million, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses, current consists of the following (in thousands): March 31, 2022 2021 Accrued employee - related expenses $ 76,283 $ 63,890 Accrued tax liabilities 22,531 23,001 Income taxes payable 14,291 9,117 Other 28,451 23,519 Total accrued expenses, current $ 141,556 $ 119,527 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consists of the following (in thousands, except percentages): March 31, 2022 March 31, 2021 Amount Effective Rate Amount Effective Rate First Lien Term Loan $ 281,125 2.7 % $ 401,125 2.4 % Revolving credit facility — — Total principal 281,125 401,125 Unamortized discount and debt issuance costs (7,207) (9,212) Total debt 273,918 391,913 Less: Current portion of long-term debt — — Long-term debt, net $ 273,918 $ 391,913 First lien credit facilities The Company’s First Lien Credit Agreement, as amended, provides for a term loan facility (the “First Lien Term Loan”) in an aggregate principal amount of $950.0 million and a senior secured revolving credit facility (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 March 31, 2022 and 2021, there were $15.6 million of letters of credit issued. The Company had $44.4 million of availability under the Revolving Facility as of March 31, 2022 and 2021. Debt issuance costs and original issuance discount were incurred in connection with the First Lien Credit Agreement. These debt issuance costs and original issuance discount are included as a reduction of the debt balance in the consolidated balance sheets and will be amortized into interest expense over the contractual term of the loans. The Company recognized $2.0 million, $1.9 million, and $1.7 million of amortization of debt issuance costs and original issuance discount for the years ended March 31, 2022, 2021 and 2020, respectively, which is included in the accompanying consolidated statements of operations. 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. The First Lien Term Loan requires prepayments in the case of certain events including: property or asset sale in excess of $5.0 million, proceeds in excess of $5.0 million from an insurance settlement, or proceeds from a new debt agreement. An additional prepayment may be required under the First Lien Term Loan related to excess cash flow for the respective measurement periods. 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 Credit Agreement contains customary negative covenants. At March 31, 2022, the Company was in compliance with all applicable covenants. Second lien credit facility On August 23, 2018, the Company entered into the Second Lien Credit Agreement (the “Second Lien Term Loan”) in which the Company borrowed an aggregate principal amount of $170.0 million. Borrowings under the Second Lien Term Loan bore interest, at the Company’s election, at either (i) the Alternative Base Rate, as defined per the credit agreement, plus 6.00% per annum, or (ii) LIBOR plus 7.00% per annum. The maturity date on the Second Lien Term Loan was August 23, 2026, with principal payment due in full on the maturity date. Interest payments were due quarterly, or more frequently, based on the terms of the credit agreement. The Company recognized $0.1 million of amortization of debt issuance costs and original issuance discount for the year ended March 31, 2020, which is included in the accompanying consolidated statements of operations. During the second quarter of fiscal 2020, the Company repaid all outstanding borrowings, including accrued interest, under the Second Lien Term Loan and the remaining unamortized debt issuance costs and original issuance discount, aggregating to $2.7 million, was recognized as a loss on debt extinguishment within “Interest expense, net” in the consolidated statements of operations during the year ended March 31, 2020. Debt maturities The maturities of outstanding debt are as follows (in thousands): Fiscal year Amount 2023 $ — 2024 — 2025 — 2026 281,125 2027 — Thereafter — Total future payments $ 281,125 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space under non-cancelable operating leases which expire at various dates from fiscal 2023 to 2032. As of March 31, 2022, the weighted average remaining lease term was 6.0 years and the weighted average discount rate was 5.2%. The Company does not have any finance leases. The Company has a sublease of a former office which expires in fiscal 2025. Sublease income from operating leases, which is recorded as a reduction of rental expense, was $2.5 million, $3.9 million and $4.5 million for the years ended March 31, 2022, 2021, and 2020, respectively. The following table presents information about leases on the consolidated statements of operations (in thousands): Fiscal Year Ended March 31, 2022 2021 Operating lease expense (1) $ 10,899 $ 10,436 Short-term lease expense $ 1,009 $ 752 Variable lease expense $ 793 $ 674 _________________ (1) Presented gross of sublease income. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Fiscal Year Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities $ 13,466 $ 13,478 Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 29,112 $ 5,260 _________________ (1) Includes the impact of new leases as well as remeasurements and modifications of existing leases. As of March 31, 2022, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2023 $ 15,524 2024 14,940 2025 11,900 2026 8,940 2027 8,001 Thereafter 14,186 Total operating lease payments (1) 73,491 Less: imputed interest (8,647) Total operating lease liabilities $ 64,844 _________________ (1) Presented gross of sublease income. As of March 31, 2022, the Company had commitments of $26.2 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, 2023 through March 31, 2025, with lease terms ranging from 3 to 10 years. Under previous lease accounting standard ASC 840, total rent expense under operating leases during the year ended March 31, 2020 was $14.0 million. |
Leases | Leases The Company leases office space under non-cancelable operating leases which expire at various dates from fiscal 2023 to 2032. As of March 31, 2022, the weighted average remaining lease term was 6.0 years and the weighted average discount rate was 5.2%. The Company does not have any finance leases. The Company has a sublease of a former office which expires in fiscal 2025. Sublease income from operating leases, which is recorded as a reduction of rental expense, was $2.5 million, $3.9 million and $4.5 million for the years ended March 31, 2022, 2021, and 2020, respectively. The following table presents information about leases on the consolidated statements of operations (in thousands): Fiscal Year Ended March 31, 2022 2021 Operating lease expense (1) $ 10,899 $ 10,436 Short-term lease expense $ 1,009 $ 752 Variable lease expense $ 793 $ 674 _________________ (1) Presented gross of sublease income. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Fiscal Year Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities $ 13,466 $ 13,478 Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 29,112 $ 5,260 _________________ (1) Includes the impact of new leases as well as remeasurements and modifications of existing leases. As of March 31, 2022, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2023 $ 15,524 2024 14,940 2025 11,900 2026 8,940 2027 8,001 Thereafter 14,186 Total operating lease payments (1) 73,491 Less: imputed interest (8,647) Total operating lease liabilities $ 64,844 _________________ (1) Presented gross of sublease income. As of March 31, 2022, the Company had commitments of $26.2 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, 2023 through March 31, 2025, with lease terms ranging from 3 to 10 years. Under previous lease accounting standard ASC 840, total rent expense under operating leases during the year ended March 31, 2020 was $14.0 million. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring ActivitiesThe Company has undertaken various restructuring activities to achieve its strategic and financial objectives. Restructuring activities include, but are not limited to product offering cancellation and termination of related employees, office relocation, administrative cost structure realignment and consolidation of resources. The Company expects to finance restructuring programs through cash on hand and cash generated from operations. Restructuring costs are estimated based on information available at the time such charges are recorded. In general, management anticipates that restructuring activities will be completed within a time frame such that significant changes to the plan are not likely. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. The Company recorded no restructuring expenses during years ended March 31, 2022 and 2021. The Company recorded restructuring expenses of $0.9 million during the year ended March 31, 2020, within “Restructuring and other” on the consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2022 | |
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 | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Amended and Restated 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, as amended and restated (the “2019 Plan”) which was subsequently approved by the Company’s shareholders and was later amended and restated by the Board in January 2021. 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 March 31, 2022, 37,458,426 shares of common stock were available for future issuance under the 2019 Plan. The awards granted under the 2019 Plan have varying terms but generally vest over a four-year period, upon satisfaction of a service-based vesting condition, with 25% vesting one year after the grant date and the remaining 75% vesting ratably on a quarterly basis over 3 years. From time to time, the Company also grants performance-based shares to certain key employees that generally vest over a three four Stock options The following table summarizes activity for stock options during the period ended March 31, 2022: 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, 2021 8,393 $ 21.31 8.6 $ 226,438 Granted 115 52.86 Exercised (1,266) 20.13 Forfeited (274) 25.62 Balance, March 31, 2022 6,968 $ 21.87 7.6 $ 176,839 Options vested and expected to vest at March 31, 2022 6,968 $ 21.87 7.6 $ 176,839 Options vested and exercisable at March 31, 2022 3,136 $ 20.06 7.5 $ 84,920 The weighted average grant-date fair value of options granted during fiscal 2022, 2021, and 2020 was $20.90, $13.08, and $6.43, respectively. The aggregate intrinsic value of options exercised during fiscal 2022 and 2021 was $52.6 million and $23.7 million, respectively. No stock options were exercised during fiscal 2020. As of March 31, 2022, the total unrecognized compensation expense related to non-vested stock options is $32.3 million and is expected to be recognized over a weighted average period of 1.7 years. The Company recognized $18.9 million, $16.8 million and $7.2 million of share-based compensation expense related to stock options for the years ended March 31, 2022, 2021, and 2020, respectively. The fair value for the Company’s stock options granted during the years ended March 31, 2022, 2021, and 2020 were estimated at the date of grant using a Black-Scholes option-pricing model using the following assumptions: Fiscal Year Ended March 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 39.5% - 39.8% 39.3% - 39.8% 37.1% - 38.9% Expected term (years) 6.1 6.1 6.1 Risk-free interest rate 0.9% - 1.1% 0.4% - 1.1% 0.8% - 1.9% The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. The computation of expected volatility is based on a calculation using the historical volatility of a group of publicly traded peer companies. The Company expects to continue to do so until such time as it has adequate historical data regarding the volatility of the Company’s traded stock price. The computation of expected term was based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options’ remaining vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the award. Restricted shares and units The following table provides a summary of the changes in the number of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) for the year ended March 31, 2022: Number of RSAs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value (in thousands) (per share) (in thousands) (per share) Balance, March 31, 2021 728 $ 16.00 3,041 $ 24.44 Granted — — 3,718 50.19 Vested (506) 16.00 (1,305) 24.07 Forfeited (20) 16.00 (274) 35.57 Balance, March 31, 2022 202 $ 16.00 5,180 $ 42.43 RSUs outstanding as of March 31, 2022 were comprised of 4.1 million RSUs with only service conditions and 1.0 million RSUs with both service and performance conditions (“PSUs”). During the year ended March 31, 2022, the Company granted PSUs to certain key employees that generally vest in three equal installments, with one-third of the PSUs eligible to vest on each of the first three During the year ended March 31, 2022, the Company granted PSUs to certain key employees that vest 25% one year after the grant date and the remaining 75% vest ratably on a quarterly basis over the following three years (the “Annual PSUs”). The number of shares that may be earned pursuant to the Annual PSUs is based on specific company metrics related to the Company’s fiscal year ending March 31, 2022. No Annual PSUs will be earned with respect to any metric if the applicable “threshold” percentage of the specific metric is not achieved, and the overall number of shares that may be earned shall not exceed 150% of the target award. Once the Annual PSUs are earned, they are then also subject to time-based vesting, with 25% of the earned Annual PSUs vesting on the first anniversary of the grant date, and with the remaining 75% vesting in twelve equal quarterly installments over the following three years, and provided that the executive officer remains employed by the Company through the applicable vesting date. The weighted average grant-date fair value of RSAs granted during fiscal 2020 was $16.00. There were no RSAs granted during the years ended March 31, 2022 and 2021. The weighted average grant-date fair value of RSUs granted during fiscal 2022, 2021, and 2020 was $50.19, $34.69, and $16.33, respectively. The aggregate fair value of RSAs vested during fiscal 2022, 2021, and 2020 was $27.7 million, $42.1 million, and $19.3 million, respectively. The aggregate fair value of RSUs vested during fiscal 2022, 2021, and 2020 was $72.2 million, $50.1 million, and $11.7 million, respectively. As of March 31, 2022, the total unrecognized compensation expense related to unvested restricted stock awards is $1.9 million and is expected to be recognized over a weighted average period of 0.8 years. As of March 31, 2022, the total unrecognized compensation expense related to unvested restricted stock units is $174.9 million and is expected to be recognized over a weighted average period of 2.4 years. The Company recognized $75.6 million, $37.3 million, and $27.9 million of share-based compensation expense related to restricted shares and units for the years ended March 31, 2022, 2021, and 2020, 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. 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 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 lesser of (i) 1% of the outstanding number of shares of the Company’s common stock on the immediately preceding March 31, (ii) 3,500,000 shares of common stock, or (iii) such lesser number determined by the compensation committee. The ESPP provides for six-month offering periods beginning May 15 and November 15 of each year, and each offering period will consist of six-month purchase periods. On each purchase date, eligible employees will purchase shares of the Company’s common stock at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock on the offering date or (2) the fair market value of the Company’s common stock on the purchase date. For the year ended March 31, 2022, 371,740 shares of common stock were purchased under the ESPP. As of March 31, 2022, 11,187,354 shares of common stock were available for future issuance under the ESPP. As of March 31, 2022, there was approximately $0.9 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 $5.0 million, $3.7 million, $0.8 million of share-based compensation expense related to the ESPP for the years ended March 31, 2022, 2021, and 2020, respectively. The Company estimated the fair value of the ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Fiscal Year Ended March 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 35.4% - 40.6% 35.9% - 55.5% 35.9 % Expected term (years) 0.5 0.5 0.5 Risk-free interest rate 0.04% - 0.1% 0.1% - 1.6% 1.6% The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. The computation of expected volatility is based on a calculation using the historical volatility of a group of publicly traded peer companies. The Company expects to continue to do so until such time as it has adequate historical data regarding the volatility of the Company’s traded stock price. The computation of expected term was based on the offering period, which is six months. The risk-free interest rate is based on the U.S. Treasury yield curve that corresponds with the expected term at the time of grant. 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 above). 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 year ended March 31, 2020. Upon modification, the liability balance of $278.2 million related to these MIUs and AUs was reclassified into additional paid-in capital. The fair value of the equity units underlying the MIUs and AUs had historically been determined by the board of directors as there was no public market for the equity units. The board of directors determined the fair value of the Company’s equity units by considering a number of objective and subjective factors including: the valuation of comparable companies, the Company’s operating and financial performance, the lack of liquidity of common stock, and general and industry specific economic outlook, amongst other factors. The participation threshold was determined by the board of directors, based on the fair market value on the grant issuance date upon vesting or settlement, the value associated with the MIUs and AUs was the difference between the fair value of the unit and the associated participation threshold. Prior to the modification, the awards were marked to market at the balance sheet date. Upon modification, the awards were marked to market immediately prior to the modification. The weighted average grant date fair value of units granted during the year ended March 31, 2020 was $7.71. The total fair value of vested units during the year ended March 31, 2020 was $278.2 million. The following key assumptions were used to determine the fair value of the MIUs and AUs for fiscal 2020: March 31, 2020 Expected dividend yield — Expected volatility 35% - 55% Expected term (years) 0.5 - 1.25 Risk-free interest rate 1.86% - 2.09% Share-based compensation The following table summarizes the components of total share-based compensation expense included in the consolidated financial statements for each period presented (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Cost of revenue $ 12,863 $ 7,307 $ 18,685 Research and development 21,316 11,684 38,670 Sales and marketing 35,957 24,153 84,698 General and administrative 29,400 14,640 80,425 Total share-based compensation expense $ 99,536 $ 57,784 $ 222,478 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share 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 year ended March 31, 2020, basic and diluted net income (loss) per share has 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): Fiscal Year Ended March 31, 2022 2021 2020 Numerator: Net income (loss) $ 52,451 $ 75,714 $ (413,817) Denominator: Weighted average shares outstanding, basic 284,161 280,469 264,933 Dilutive effect of stock-based awards 6,742 6,040 — Weighted average shares outstanding, diluted 290,903 286,509 264,933 Net income (loss) per share, basic $ 0.18 $ 0.27 $ (1.56) Net income (loss) per share, diluted $ 0.18 $ 0.26 $ (1.56) The effect of certain common share equivalents were excluded from the computation of weighted average diluted shares outstanding for the years ended March 31, 2022, 2021, and 2020 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): Fiscal Year Ended March 31, 2022 2021 2020 Stock options 170 1,901 4,763 Unvested RSAs and RSUs 119 11 3,819 Shares committed under ESPP — — 64 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company had agreements with Thoma Bravo, LLC for financial and management advisory services that terminated on August 1, 2019. During the year ended March 31, 2020, the Company incurred $1.6 million related to these services. The related expense is reflected in “General and administrative” expense in the consolidated statements of operations. During the year ended March 31, 2020, Compuware distributed $265.0 million to the Company to fund a tax liability incurred in connection with the reorganization transactions described in Note 2. |
Related Party Debt
Related Party Debt | 12 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Debt | Related Party Transactions The Company had agreements with Thoma Bravo, LLC for financial and management advisory services that terminated on August 1, 2019. During the year ended March 31, 2020, the Company incurred $1.6 million related to these services. The related expense is reflected in “General and administrative” expense in the consolidated statements of operations. During the year ended March 31, 2020, Compuware distributed $265.0 million to the Company to fund a tax liability incurred in connection with the reorganization transactions described in Note 2. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company has established a 401(k) tax-deferred savings plan (the “401(k) Plan”), which permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Code. The Company is responsible for administrative costs of the 401(k) Plan and may, at its discretion, make matching contributions to the 401(k) Plan. In addition, the Company offers defined contribution plans to employees in certain countries outside the U.S. For the years ended March 31, 2022, 2021, and 2020, the Company made contributions of $4.6 million, $3.6 million and $3.1 million to the U.S. 401(k) Plan, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 2021 North America $ 15,462 $ 12,129 Europe, Middle East and Africa 28,195 23,124 Asia Pacific 1,429 1,619 Latin America 185 44 Total property and equipment, net $ 45,271 $ 36,916 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal year | Fiscal year The Company’s fiscal year ends on March 31. References to fiscal 2022, for example, refer to the fiscal year ended March 31, 2022. |
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 were under common control since December 15, 2014. Therefore, these 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 consolidated financial statements exclude their accounts and results. |
Basis of presentation | The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in the accompanying consolidated financial statements. The income tax amounts in the accompanying consolidated financial statements have been calculated based on a separate return methodology and presented as if the Company’s operations were separate taxpayers in the respective jurisdictions. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD”). The functional currency of the Company’s principal foreign subsidiaries is the currency of the country in which each entity operates. Accordingly, assets and liabilities in the consolidated balance sheets have been translated at the rate of exchange at the balance sheet date, and revenues and expenses have been translated at average exchange rates prevailing during the period the transactions occurred. Translation adjustments have been excluded from the results of operations and are reported as accumulated other comprehensive loss within the consolidated statements of shareholders’ equity / member’s deficit. Transaction gains and losses generated by the effect of changes in foreign currency exchange rates on recorded assets and liabilities denominated in a currency different than the functional currency of the applicable entity are recorded in “Other income (expense), net” in the consolidated statements of operations. |
Use of estimates | Use of estimates The preparation of 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 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, income taxes, equity-based compensation expense, 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. |
Segment information | Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis, for purposes of making operating decisions, assessing financial performance and allocating resources. |
Business combinations | Business combinations When the Company acquires a business, management allocates the purchase price to the net tangible and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted average cost of capital and the cost savings expected to be derived from acquiring an asset. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in “Other income (expense), net” in the consolidated statement of operations. In fiscal 2022, the Company completed acquisitions of entities in the software intelligence and automation business for total cash consideration, net of cash acquired, of $13.2 million. As a result, the Company recognized goodwill of $11.0 million and intangible assets of $2.6 million related to technology with an estimated useful life of 9 years. Goodwill generated from the acquisitions is attributable to increased synergies that are expected to be achieved from the integration of the acquired developed technology into the Dynatrace ® platform, and is not deductible for tax purposes. The results of operations of the acquired entities have been included within the Company’s consolidated statements of operations from the acquisition date. The acquisitions were not material to the consolidated financial statements. |
Revenue recognition | Revenue recognition The Company sells software licenses, subscriptions, maintenance and support, and professional services together in contracts with its customers, which include end-customers and channel partners. The Company’s software license agreements provide customers with a right to use software perpetually or for a defined term. As required under applicable accounting principles, the goods and services that the Company promises to transfer to a customer are accounted for separately if they are distinct from one another. Promised items that are not distinct are bundled as a combined performance obligation. The transaction price is allocated to the performance obligations based on the relative estimated standalone selling prices of those performance obligations. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with a customer The Company considers the terms and conditions of the contract in identifying the contracts. The Company determines a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, it has been determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company will evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit, and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the services and the products that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. In identifying performance obligations, the Company reviews contractual terms, considers whether any implied rights exist, and evaluates published product and marketing information. The Company’s performance obligations consist of (i) software licenses, (ii) subscription services, (ii) maintenance and support for software licenses, and (iv) professional services. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company’s contracts do not contain a significant financing component. 4. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) for arrangements not including software licenses or subscription services. The Company has determined that its pricing for software licenses and subscription services is highly variable and therefore allocates the transaction price to those performance obligations using the residual approach. 5. Recognition of revenue when, or as a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized when control of the service is transferred to the customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. Subscription Subscription revenue relates to performance obligations for which the Company recognizes revenue over time as control of the product or service is transferred to the customer. Subscription revenue includes arrangements that permit customers to access and utilize the Company’s hosted software delivered on a SaaS basis, term-based and perpetual licenses of the Company’s Dynatrace Software, as well as maintenance. The when-and-if available updates of the Dynatrace Software, which are part of the maintenance agreement, are critical to the continued utility of the Dynatrace Software; therefore, the Company has determined the Dynatrace Software and the related when-and-if available updates to be a combined performance obligation. Accordingly, when Dynatrace Software is sold under a term-based license, the revenue associated with this combined performance obligation is recognized ratably over the license term as maintenance is included for the duration of the license term. The Company has determined that perpetual licenses of Dynatrace Software provide customers with a material right to acquire additional goods or services that they would not receive without entering into the initial contract as the renewal option for maintenance services allows the customer to extend the utility of the Dynatrace Software without having to again make the initial payment of the perpetual software license fee. The associated material right is deferred and recognized ratably over the term of the expected optional maintenance renewals. Subscription revenue also includes maintenance services relating to the Company’s Classic offerings as that revenue is recognized over time given that the obligation is a stand-ready obligation to provide customer support and when-and-if available updates to the Classic software as well as certain other stand-ready obligations. License License revenue relates to performance obligations for which the Company recognizes revenue at the point that the license is transferred to the customer. License revenue includes these perpetual and term-based licenses that relate to the Company’s Classic offerings (“Classic Software Licenses”), which are focused on traditional customer approaches to building, operating and monitoring software in less dynamic environments. The Company requires customers purchasing perpetual licenses of Classic Software and Dynatrace Software, as defined below, to also purchase maintenance services covering at least one year from the beginning of the perpetual license. The Company has determined that the Classic Software Licenses and the related maintenance services are separate performance obligations with different patterns of recognition. Revenue from Classic Software Licenses is recognized upon delivery of the license. Revenue from maintenance is recognized over the period of time of the maintenance agreement and is included in “Subscription”. Service The Company offers implementation, consulting and training services for the Company’s software solutions and SaaS offerings. Services fees are generally based on hourly rates. Revenues from services are recognized in the period the services are performed, provided that collection of the related receivable is reasonably assured. Deferred commissions Deferred sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new contracts are deferred and then amortized on a straight-line basis over a period of benefit which the Company has estimated to be three years. The period of benefit has been determined by taking into consideration the duration of customer contracts, the life of the technology, renewals of maintenance and other factors. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. Amortization expense is included in “Sales and marketing” expenses on the consolidated statements of operations. The Company periodically reviews these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred commissions. There were no impairment losses recorded during the periods presented. Deferred revenue Deferred revenue consists primarily of billed subscription and maintenance fees related to the future service period of subscription and maintenance agreements in effect at the reporting date. Deferred licenses are also included in deferred revenue for those billed arrangements that are being recognized over time. Short-term deferred revenue represents the unearned revenue that will be earned within twelve months of the balance sheet date; whereas, long-term deferred revenue represents the unearned revenue that will be earned after twelve months from the balance sheet date. Payment terms Payment terms and conditions vary by contract type, although the Company’s terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of payment, the Company has determined that its contracts do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing products and services, not to receive financing from customers or to provide customers with financing. Contract modification Contract modifications are assessed to determine (i) if the additional goods and services are distinct from the goods and services in the original arrangement; and (ii) if the amount of the consideration expected for the added goods and services reflects the stand-alone selling price of those goods and services, as adjusted for contract-specific circumstances. The Company’s additional goods and services offered have historically been distinct. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract, which the Company accounts for on a prospective basis as the termination of the existing contract and the creation of a new contract. Cost of revenue Cost of subscription Cost of subscription revenue includes all direct costs to deliver the Company’s subscription products including salaries, benefits, share-based compensation and related expenses such as employer taxes, third-party hosting fees related to the Company’s cloud services, allocated overhead for facilities, IT, and amortization of internally developed capitalized software technology. The Company recognizes these expenses as they are incurred. Cost of service Cost of service revenue includes salaries, benefits, share-based compensation and related expenses such as employer taxes for our services organization, allocated overhead for depreciation of equipment, facilities and IT, and amortization of acquired intangible assets. The Company recognizes expense related to its services organization as they are incurred. |
Amortization of acquired technology | Amortization of acquired technology Amortization of acquired technology includes amortization expense for technology acquired in business combinations. |
Research and development | Research and development Research and development (“R&D”) costs primarily include the cost of programming personnel including share-based compensation. R&D costs related to the Company’s software solutions are reported as “Research and development” in the consolidated statements of operations. |
Advertising | AdvertisingAdvertising costs are expensed as incurred and are included in “Sales and marketing” expense in the consolidated statements of operations. |
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 consolidated balance sheets. The Company does not record leases with terms of 12 months or less on the consolidated balance sheets. Lease expense is recognized on a straight-line basis over the expected lease term. |
Concentration of credit risk | Concentration of credit riskFinancial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. |
Cash and cash equivalents | Cash and cash equivalents All highly-liquid investments with a maturity of three months or less when purchased are considered cash and cash equivalents. |
Accounts receivable, net | Accounts receivable, netTrade accounts receivable are recorded at the invoiced amount. Accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company’s customers’ financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates. |
Property and equipment, net | Property and equipment, net The Company states property and equipment, net, at the acquisition cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are depreciated over the shorter of the useful lives of the assets or the related lease. The following table presents the estimated useful lives of the Company’s property and equipment: Computer equipment and software 3 - 5 years Furniture and fixtures 5 - 10 years Leasehold improvements Shorter of 10 years or the lease term |
Goodwill and other intangible assets | Goodwill and other intangible assets The Company’s goodwill and intangible assets primarily relate to the push-down of such assets relating to Thoma Bravo’s December 15, 2014 acquisition of Compuware Corporation based on their relative fair values at the date of acquisition. Goodwill represents the excess of the purchase price of an acquired business over the fair value of the underlying net tangible and intangible assets. Goodwill is evaluated for impairment annually in the fourth quarter of the Company’s fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. Since the Company’s acquisition by Thoma Bravo through March 31, 2022, the Company has not had any goodwill impairment. Intangible assets consist primarily of customer relationships, developed technology, tradenames and trademarks, all of which have a finite useful life, as well as goodwill. Intangible assets are amortized based on either the pattern in which the economic benefits of the |
Capitalized software | Capitalized software The Company’s capitalized software includes the costs of internally developed software technology and software technology purchased through acquisition. Internally developed software technology consists of development costs associated with software products to be sold (“software products”) and internal use software associated with hosted software. Costs associated with the development of software technology are expensed prior to the establishment of technological feasibility and capitalized thereafter until the related software technology is available for general release to customers. Technological feasibility is established when management has authorized and committed to funding a project and it is probable that the project will be completed, and the software will be used to perform the function intended. For internal use software, capitalization begins during the application development stage. Internally developed software technology is recorded within “Other intangible assets, net” in the consolidated balance sheets. During the year ended March 31, 2022, the Company did not capitalize any costs for internally developed software technology. The Company capitalized $0.3 million, offset by $0.5 million of derecognized software costs, and $0.9 million for internally developed software technology during the years ended March 31, 2021 and 2020, respectively. three |
Impairment of long-lived assets | Impairment of long-lived assetsLong-lived assets, including amortized intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is estimated by the Company using discounted cash flows and other market-related valuation models, including earnings multiples and comparable asset market values. If circumstances change or events occur to indicate that the Company’s fair market value has fallen below book value, the Company will compare the estimated fair value of long-lived assets (including goodwill) to its book value. If the book value exceeds the estimated fair value, the Company will recognize the difference as an impairment loss in the consolidated statements of operations. |
Income taxes | Income taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. The Company has the ability to permanently reinvest any earnings in its foreign subsidiaries and therefore does not recognize any deferred tax liabilities that arise from outside basis differences in its investment in subsidiaries. The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. These deferred tax assets are subject to periodic assessments as to recoverability and if it is determined that it is more likely than not that the benefits will not be realized, valuation allowances are recorded that would reduce deferred tax assets. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. Interest and penalties related to uncertain income tax positions are included in the income tax provision. |
Fair value of assets and liabilities | Fair value of assets and liabilities Assets and liabilities recorded at fair value in the financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: • Level 1: Observable inputs that reflect quoted prices for identical assets or liabilities in active markets; • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The Company’s carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities approximate their fair values due to their short maturities. The Company’s term loan credit facilities are not recorded at fair value and the carrying value approximates fair value due to its floating interest rate, which is considered a level 2 measurement. |
Share-based compensation | Share-based compensation Prior to the IPO, certain employees were granted management incentive units and appreciation units which made a holder eligible to participate in distributions of cash, property, or securities of Compuware Parent LLC made in respect of the Company. The MIUs and AUs were settled in cash and were accounted for as liability-based awards. Liabilities for awards under these plans were required to be measured at fair value at each reporting date until the date of settlement. The fair value of the equity units underlying the MIUs and AUs was determined by the board of managers as there was no public market for the equity units. The board of managers determined the fair value of the Company’s equity units by considering a number of objective and subjective factors including: the valuation of comparable companies, the Company’s operating and financial performance, the lack of liquidity of common stock, and general and industry specific economic outlook, amongst other factors. In connection with the reorganization during the second quarter of fiscal 2020, the Company converted all outstanding MIUs and AUs into common stock, restricted stock, or restricted stock units (“RSUs”) of Dynatrace, Inc. After the IPO, the Company measures the cost of employee services received in exchange for an award of equity instruments, including stock options, restricted stock, RSUs, and the purchase rights under the employee stock purchase plan (the “ESPP”), based on the estimated grant-date fair value of the award. The Company calculates the fair value of stock options and the purchase rights under the ESPP using the Black-Scholes option-pricing model. This requires the input of assumptions, including the fair value of the Company’s underlying common stock, the expected term of stock options and purchase rights, the expected volatility of the price of the Company’s common stock, risk-free interest rates, and the expected dividend yield of the Company’s common stock. The fair value of restricted stock and RSUs is determined by the closing price on the date of grant of the Company’s common stock as reported on the NYSE. The Company recognizes the fair value as share-based compensation expense following the straight-line attribution method over the requisite service period of the entire award for stock options, restricted stock, and RSUs; and over the offering period for the purchase rights issued under the ESPP. For performance-based RSUs that vest based upon continued service and achievement of certain performance conditions, share-based compensation expense is recognized over the requisite service period following the accelerated attribution method if it is probable that the performance condition will be satisfied. The probability of achievement is assessed periodically to determine whether the performance condition continues to be probable. When there is a change in the probability of achievement, any cumulative effect of the change in requisite service period is recognized in the period of the change with the change to be amortized over the respective vesting period. Forfeitures are accounted for in the period in which the awards are forfeited. |
Net income (loss) per share | Net income (loss) per shareBasic 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. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 adopted the new standard on a prospective basis as of April 1, 2021. The adoption did not have a material impact on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. ASU 2021-08 is effective for annual periods beginning after December 15, 2022, and interim periods within those years, with early adoption permitted. The Company early adopted this standard in the fourth quarter of fiscal 2022 and applied the amendments retrospectively to all business combinations that took place in fiscal 2022. The adoption did not have a material effect on the consolidated financial statements. |
Restructuring expense | The Company has undertaken various restructuring activities to achieve its strategic and financial objectives. Restructuring activities include, but are not limited to product offering cancellation and termination of related employees, office relocation, administrative cost structure realignment and consolidation of resources. The Company expects to finance restructuring programs through cash on hand and cash generated from operations. Restructuring costs are estimated based on information available at the time such charges are recorded. In general, management anticipates that restructuring activities will be completed within a time frame such that significant changes to the plan are not likely. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of the Company's Property and Equipment | The following table presents the estimated useful lives of the Company’s property and equipment: Computer equipment and software 3 - 5 years Furniture and fixtures 5 - 10 years Leasehold improvements Shorter of 10 years or the lease term The following table summarizes, by major classification, the components of property and equipment (in thousands): March 31, 2022 2021 Computer equipment and software $ 30,387 $ 23,134 Furniture and fixtures 10,729 9,804 Leasehold improvements 29,927 27,961 Other 7,663 864 Total property and equipment 78,706 61,763 Less: accumulated depreciation and amortization (33,435) (24,847) Property and equipment, net $ 45,271 $ 36,916 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table is a summary of the Company’s total revenue by geographic region (in thousands, except percentages): Fiscal Year Ended March 31, 2022 2021 2020 Amount % Amount % Amount % North America $ 512,946 56 % $ 388,188 55 % $ 318,299 58 % Europe, Middle East and Africa 278,902 30 % 216,647 31 % 150,418 28 % Asia Pacific 96,454 10 % 78,295 11 % 60,418 11 % Latin America 41,143 4 % 20,379 3 % 16,668 3 % Total revenue $ 929,445 $ 703,509 $ 545,803 |
Schedule of Capitalized Contract Cost | The following table represents a rollforward of the Company’s deferred commissions (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Beginning balance $ 97,624 $ 78,245 $ 59,250 Additions to deferred commissions 89,899 63,627 54,969 Amortization of deferred commissions (61,487) (44,248) (35,974) Ending Balance $ 126,036 $ 97,624 $ 78,245 Deferred commissions, current 62,601 48,986 38,509 Deferred commissions, non-current 63,435 48,638 39,736 Total deferred commissions $ 126,036 $ 97,624 $ 78,245 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 2021 Prepaid expenses $ 24,791 $ 20,308 Income taxes refundable 40,723 41,875 Other 6,674 2,072 Prepaid expenses and other current assets $ 72,188 $ 64,255 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment by Major Class | The following table presents the estimated useful lives of the Company’s property and equipment: Computer equipment and software 3 - 5 years Furniture and fixtures 5 - 10 years Leasehold improvements Shorter of 10 years or the lease term The following table summarizes, by major classification, the components of property and equipment (in thousands): March 31, 2022 2021 Computer equipment and software $ 30,387 $ 23,134 Furniture and fixtures 10,729 9,804 Leasehold improvements 29,927 27,961 Other 7,663 864 Total property and equipment 78,706 61,763 Less: accumulated depreciation and amortization (33,435) (24,847) Property and equipment, net $ 45,271 $ 36,916 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill on a consolidated basis for fiscal 2022 consists of the following (in thousands): March 31, 2022 Balance, beginning of year $ 1,271,195 Goodwill from acquisitions 10,965 Foreign currency impact (284) Balance, end of year $ 1,281,876 |
Schedule of Intangible Assets | Other intangible assets, net excluding goodwill consists of the following (in thousands): Weighted Average Useful Life (in months) March 31, 2022 2021 Capitalized software 107 $ 191,900 $ 189,398 Customer relationships 120 351,555 351,555 Trademarks and tradenames 120 55,003 55,003 Total intangible assets 598,458 595,956 Less: accumulated amortization (492,722) (446,472) Total other intangible assets, net $ 105,736 $ 149,484 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2022, the estimated future amortization expense of the Company’s other intangible assets in the table above is as follows (in thousands): Fiscal Year Ended March 31, 2023 2024 2025 2026 2027 Thereafter Capitalized software $ 15,802 $ 15,499 $ 10,906 $ 274 $ 274 $ 909 Customer relationships 20,794 17,534 10,473 — — — Trademarks and tradenames 5,501 4,753 3,017 — — — Total amortization $ 42,097 $ 37,786 $ 24,396 $ 274 $ 274 $ 909 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income (loss) before income taxes and the income tax expense includes the following (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Domestic $ (2,977) $ 37,368 $ (245,177) Foreign 74,636 40,485 26,644 Total $ 71,659 $ 77,853 $ (218,533) |
Schedule of Income Tax Provision | The income tax provision includes the following (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Income tax expense (benefit) Federal $ 8,290 $ (3,835) $ 180,402 State 2,257 (2,071) 48,045 Foreign 21,406 15,110 13,058 Total current tax position 31,953 9,204 241,505 Federal (1,341) (3,027) (37,731) State — (615) (5,689) Foreign (11,404) (3,423) (2,801) Total deferred tax provision (12,745) (7,065) (46,221) Total income tax expense $ 19,208 $ 2,139 $ 195,284 |
Schedule of Tax Rate Reconciliation | The tax rate reconciliation is as follows (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Income tax expense (benefit) at U.S. federal statutory income tax rate $ 15,048 $ 16,349 $ (45,892) State and local tax expense (3,065) (580) (2,897) Foreign tax rate differential 3,181 1,939 3,521 Branch income 11,016 4,830 1,601 Non-deductible expenses 976 3,459 5,976 Tax credits (27,983) (9,316) (57,277) Foreign-derived intangible income deduction (2,708) (4,775) (3,901) Tax associated with reorganization — — 239,990 Share-based compensation (17,258) (6,424) 48,129 Prior year tax return to provision true-ups (178) (11,464) — Changes in uncertain tax positions 501 (1,102) 13,204 Changes in valuation allowance 32,026 2,091 (9,472) Foreign withholding tax 9,312 6,992 4,231 Effects of changes in tax laws (859) — — Other adjustments (801) 140 (1,929) Total income tax expense $ 19,208 $ 2,139 $ 195,284 |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards that give rise to a significant portion of deferred tax assets and liabilities are as follows (in thousands): March 31, 2022 2021 Deferred revenue $ 23,686 $ 17,050 Capitalized research and development costs 13,374 10,834 Accrued expenses 10,361 8,882 Share-based compensation 23,484 8,367 Lease liabilities 12,835 8,321 Net operating loss carryforwards 6,591 4,637 Other tax carryforwards, primarily foreign tax credits 30,692 20,479 Other 2,403 2,272 Total deferred tax assets before valuation allowance 123,426 80,842 Less: valuation allowance (56,323) (24,297) Net deferred tax assets 67,103 56,545 Intangible assets 23,878 30,525 Right-of-use assets 11,183 7,388 Other 4,021 2,835 Total deferred tax liabilities 39,082 40,748 Net deferred tax assets $ 28,021 $ 15,797 |
Schedule of Reconciliation of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended March 31, 2022, 2021, and 2020 (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Gross unrecognized tax benefit, beginning of year $ 15,075 $ 16,648 $ 9,653 Gross increases to tax positions for prior periods 255 1,223 438 Gross decreases to tax positions for prior periods — (2,654) (6,986) Gross increases to tax positions for current period — — 13,543 Settlements — (10) — Lapse of statutes of limitations (313) (132) — Gross unrecognized tax benefit, end of year $ 15,017 $ 15,075 $ 16,648 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses, current consists of the following (in thousands): March 31, 2022 2021 Accrued employee - related expenses $ 76,283 $ 63,890 Accrued tax liabilities 22,531 23,001 Income taxes payable 14,291 9,117 Other 28,451 23,519 Total accrued expenses, current $ 141,556 $ 119,527 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following (in thousands, except percentages): March 31, 2022 March 31, 2021 Amount Effective Rate Amount Effective Rate First Lien Term Loan $ 281,125 2.7 % $ 401,125 2.4 % Revolving credit facility — — Total principal 281,125 401,125 Unamortized discount and debt issuance costs (7,207) (9,212) Total debt 273,918 391,913 Less: Current portion of long-term debt — — Long-term debt, net $ 273,918 $ 391,913 |
Schedule of Maturities of Outstanding Debt | The maturities of outstanding debt are as follows (in thousands): Fiscal year Amount 2023 $ — 2024 — 2025 — 2026 281,125 2027 — Thereafter — Total future payments $ 281,125 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The following table presents information about leases on the consolidated statements of operations (in thousands): Fiscal Year Ended March 31, 2022 2021 Operating lease expense (1) $ 10,899 $ 10,436 Short-term lease expense $ 1,009 $ 752 Variable lease expense $ 793 $ 674 _________________ (1) Presented gross of sublease income. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Fiscal Year Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities $ 13,466 $ 13,478 Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 29,112 $ 5,260 _________________ (1) Includes the impact of new leases as well as remeasurements and modifications of existing leases. |
Schedule of Maturities of Lease Liabilities | As of March 31, 2022, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2023 $ 15,524 2024 14,940 2025 11,900 2026 8,940 2027 8,001 Thereafter 14,186 Total operating lease payments (1) 73,491 Less: imputed interest (8,647) Total operating lease liabilities $ 64,844 _________________ (1) Presented gross of sublease income. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Activity for Stock Options | The following table summarizes activity for stock options during the period ended March 31, 2022: 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, 2021 8,393 $ 21.31 8.6 $ 226,438 Granted 115 52.86 Exercised (1,266) 20.13 Forfeited (274) 25.62 Balance, March 31, 2022 6,968 $ 21.87 7.6 $ 176,839 Options vested and expected to vest at March 31, 2022 6,968 $ 21.87 7.6 $ 176,839 Options vested and exercisable at March 31, 2022 3,136 $ 20.06 7.5 $ 84,920 |
Schedule of Fair value Assumptions for Stock Options | The fair value for the Company’s stock options granted during the years ended March 31, 2022, 2021, and 2020 were estimated at the date of grant using a Black-Scholes option-pricing model using the following assumptions: Fiscal Year Ended March 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 39.5% - 39.8% 39.3% - 39.8% 37.1% - 38.9% Expected term (years) 6.1 6.1 6.1 Risk-free interest rate 0.9% - 1.1% 0.4% - 1.1% 0.8% - 1.9% |
Schedule of Restricted Stock Activity | The following table provides a summary of the changes in the number of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) for the year ended March 31, 2022: Number of RSAs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value (in thousands) (per share) (in thousands) (per share) Balance, March 31, 2021 728 $ 16.00 3,041 $ 24.44 Granted — — 3,718 50.19 Vested (506) 16.00 (1,305) 24.07 Forfeited (20) 16.00 (274) 35.57 Balance, March 31, 2022 202 $ 16.00 5,180 $ 42.43 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The Company estimated the fair value of the ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Fiscal Year Ended March 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 35.4% - 40.6% 35.9% - 55.5% 35.9 % Expected term (years) 0.5 0.5 0.5 Risk-free interest rate 0.04% - 0.1% 0.1% - 1.6% 1.6% The following key assumptions were used to determine the fair value of the MIUs and AUs for fiscal 2020: March 31, 2020 Expected dividend yield — Expected volatility 35% - 55% Expected term (years) 0.5 - 1.25 Risk-free interest rate 1.86% - 2.09% |
Schedule of Share-based Compensation Expense | The following table summarizes the components of total share-based compensation expense included in the consolidated financial statements for each period presented (in thousands): Fiscal Year Ended March 31, 2022 2021 2020 Cost of revenue $ 12,863 $ 7,307 $ 18,685 Research and development 21,316 11,684 38,670 Sales and marketing 35,957 24,153 84,698 General and administrative 29,400 14,640 80,425 Total share-based compensation expense $ 99,536 $ 57,784 $ 222,478 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule 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): Fiscal Year Ended March 31, 2022 2021 2020 Numerator: Net income (loss) $ 52,451 $ 75,714 $ (413,817) Denominator: Weighted average shares outstanding, basic 284,161 280,469 264,933 Dilutive effect of stock-based awards 6,742 6,040 — Weighted average shares outstanding, diluted 290,903 286,509 264,933 Net income (loss) per share, basic $ 0.18 $ 0.27 $ (1.56) Net income (loss) per share, diluted $ 0.18 $ 0.26 $ (1.56) |
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): Fiscal Year Ended March 31, 2022 2021 2020 Stock options 170 1,901 4,763 Unvested RSAs and RSUs 119 11 3,819 Shares committed under ESPP — — 64 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment by Geographical Region | The following tables present property and equipment by geographic region for the periods presented (in thousands): March 31, 2022 2021 North America $ 15,462 $ 12,129 Europe, Middle East and Africa 28,195 23,124 Asia Pacific 1,429 1,619 Latin America 185 44 Total property and equipment, net $ 45,271 $ 36,916 |
Significant Accounting Polici_4
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 units) | 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_5
Significant Accounting Policies - Initial Public Offering (Details) $ / shares in Units, $ in Thousands | Aug. 01, 2019USD ($)$ / sharesshares | Jul. 31, 2019shares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Subsidiary, Sale of Stock [Line Items] | |||||
Proceeds from initial public offering, net of underwriters' discounts and commissions | $ 0 | $ 0 | $ 590,297 | ||
Payment of underwriting discounts, commissions and estimated offering related expense | $ 0 | $ 0 | $ 5,000 | ||
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 units, issued during the exchange (in shares) | shares | 241,547,218 | ||||
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 | ||||
Proceeds from initial public offering, net of underwriters' discounts and commissions | $ 622,000 | ||||
Consideration received on sale of stock | 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 | 2,100,000 |
Significant Accounting Polici_6
Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Mar. 31, 2022segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Significant Accounting Polici_7
Significant Accounting Policies - Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Business Combination Segment Allocation [Line Items] | |||
Acquisition of businesses, net of cash acquired | $ (13,195) | $ 0 | $ 0 |
Goodwill from acquisitions | 10,965 | ||
Total intangible assets | 598,458 | 595,956 | |
Capitalized software | |||
Business Combination Segment Allocation [Line Items] | |||
Total intangible assets | 191,900 | $ 189,398 | |
Software Intelligence and Automation Business Entities | |||
Business Combination Segment Allocation [Line Items] | |||
Acquisition of businesses, net of cash acquired | (13,200) | ||
Goodwill from acquisitions | 11,000 | ||
Software Intelligence and Automation Business Entities | Capitalized software | |||
Business Combination Segment Allocation [Line Items] | |||
Total intangible assets | $ 2,600 | ||
Estimated useful live of acquired intangibles | 9 years |
Significant Accounting Polici_8
Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Mar. 31, 2022USD ($) | |
Disaggregation of Revenue [Line Items] | |
Minimum period covered by maintenance service contracts from the beginning of the perpetual license | 1 year |
Estimated term to defer sales commissions | 3 years |
Impairment losses recorded on deferred commissions | $ 0 |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 60 days |
Significant Accounting Polici_9
Significant Accounting Policies Significant Accounting Policies - Advertising (Details) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 49.9 | $ 26.4 | $ 5.7 |
Significant Accounting Polic_10
Significant Accounting Policies - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2021 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 3.2 | $ 1.3 |
Significant Accounting Polic_11
Significant Accounting Policies - Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of property and equipment | $ 0 | $ 0 | $ 0 |
Computer equipment and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 3 | ||
Computer equipment and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 5 years | ||
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 5 | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 10 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment | 10 years |
Significant Accounting Polic_12
Significant Accounting Policies - Capitalized Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized software | $ 0.3 | $ 0.9 | |
Derecognized software costs | 0.5 | ||
Capitalized software, amortization | $ 0.6 | $ 1.9 | $ 1.7 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Amortization period for capitalized software | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Amortization period for capitalized software | 5 years |
Significant Accounting Polic_13
Significant Accounting Policies - Impairment of Long-lived Assets (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | |||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Significant Accounting Polic_14
Significant Accounting Policies - Share-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | |||
Total share-based compensation expense | $ 99,536 | $ 57,784 | $ 222,478 |
Income tax benefit recognized on shares-based compensation arrangements | 43,100 | 21,300 | 3,900 |
Tax benefit recognized on stock option exercise | $ 14,900 | $ 8,400 | $ 600 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 929,445 | $ 703,509 | $ 545,803 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 512,946 | 388,188 | 318,299 |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 278,902 | 216,647 | 150,418 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 96,454 | 78,295 | 60,418 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 41,143 | $ 20,379 | $ 16,668 |
Geographic Concentration Risk | Revenue Benchmark | North America | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 56.00% | 55.00% | 58.00% |
Geographic Concentration Risk | Revenue Benchmark | Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 30.00% | 31.00% | 28.00% |
Geographic Concentration Risk | Revenue Benchmark | Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 10.00% | 11.00% | 11.00% |
Geographic Concentration Risk | Revenue Benchmark | Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 4.00% | 3.00% | 3.00% |
Geographic Concentration Risk | Revenue Benchmark | United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 477,200 | $ 362,100 | $ 299,500 |
Concentration risk percentage | 51.00% | 51.00% | 55.00% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Deferred Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Capitalized Contract Cost [Roll Forward] | |||
Beginning balance | $ 97,624 | $ 78,245 | $ 59,250 |
Additions to deferred commissions | 89,899 | 63,627 | 54,969 |
Amortization of deferred commissions | (61,487) | (44,248) | (35,974) |
Ending Balance | 126,036 | 97,624 | 78,245 |
Deferred commissions, current | 62,601 | 48,986 | 38,509 |
Deferred commissions, non-current | 63,435 | 48,638 | 39,736 |
Total deferred commissions | $ 126,036 | $ 97,624 | $ 78,245 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized | $ 502.4 | $ 381.6 | $ 274.7 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Narrative) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remaining performance obligation, amount | $ 1,566.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
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]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | |
Extended Recognition Period | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction, period | 3 years |
Billed consideration | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remaining performance obligation, amount | $ 714.3 |
Unbilled consideration | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remaining performance obligation, amount | $ 852 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Mar. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,281,876,000 | $ 1,271,195,000 | ||
Qumram | ||||
Business Acquisition [Line Items] | ||||
Aggregate purchase price | $ 20,800,000 | |||
Cash consideration paid | 11,300,000 | |||
Payment obligation | 8,500,000 | |||
Current accrued expenses | $ 0 | $ 0 | ||
Goodwill | 18,700,000 | |||
Acquisition transaction costs | $ 200,000 | |||
Qumram | Acquired Technology | ||||
Business Acquisition [Line Items] | ||||
Purchase price allocated to intangibles | $ 1,700,000 | |||
Estimated useful live of acquired intangibles | 6 years |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 24,791 | $ 20,308 |
Income taxes refundable | 40,723 | 41,875 |
Other | 6,674 | 2,072 |
Prepaid expenses and other current assets | $ 72,188 | $ 64,255 |
Property and Equipment, Net - T
Property and Equipment, Net - Table (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 78,706 | $ 61,763 |
Less: accumulated depreciation and amortization | (33,435) | (24,847) |
Property and equipment, net | 45,271 | 36,916 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 30,387 | 23,134 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 10,729 | 9,804 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 29,927 | 27,961 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 7,663 | $ 864 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 10.6 | $ 9 | $ 7.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of year | $ 1,271,195 |
Goodwill from acquisitions | 10,965 |
Foreign currency impact | (284) |
Balance, end of year | $ 1,281,876 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 598,458 | $ 595,956 |
Less: accumulated amortization | (492,722) | (446,472) |
Total other intangible assets, net | $ 105,736 | 149,484 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in months) | 107 months | |
Total intangible assets | $ 191,900 | 189,398 |
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 | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangibles | $ 46,238 | $ 51,942 | $ 58,457 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Schedule of Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2023 | $ 42,097 |
2024 | 37,786 |
2025 | 24,396 |
2026 | 274 |
2027 | 274 |
Thereafter | 909 |
Capitalized software | |
Finite-Lived Intangible Assets [Line Items] | |
2023 | 15,802 |
2024 | 15,499 |
2025 | 10,906 |
2026 | 274 |
2027 | 274 |
Thereafter | 909 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
2023 | 20,794 |
2024 | 17,534 |
2025 | 10,473 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Trademarks and tradenames | |
Finite-Lived Intangible Assets [Line Items] | |
2023 | 5,501 |
2024 | 4,753 |
2025 | 3,017 |
2026 | 0 |
2027 | 0 |
Thereafter | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (2,977) | $ 37,368 | $ (245,177) |
Foreign | 74,636 | 40,485 | 26,644 |
Income (loss) before income taxes | $ 71,659 | $ 77,853 | $ (218,533) |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 8,290 | $ (3,835) | $ 180,402 |
State | 2,257 | (2,071) | 48,045 |
Foreign | 21,406 | 15,110 | 13,058 |
Total current tax position | 31,953 | 9,204 | 241,505 |
Federal | (1,341) | (3,027) | (37,731) |
State | 0 | (615) | (5,689) |
Foreign | (11,404) | (3,423) | (2,801) |
Total deferred tax provision | (12,745) | (7,065) | (46,221) |
Total income tax expense | $ 19,208 | $ 2,139 | $ 195,284 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Total income tax expense (benefit) | $ 19,208 | $ 2,139 | $ 195,284 | |
Effective income tax rate | 21.00% | 21.00% | 21.00% | |
Less: valuation allowance | $ 56,323 | $ 24,297 | ||
Net tax carryforwards | 66,100 | |||
Indefinite net operating losses | 5,100 | |||
Net operating loss carryforwards | 6,591 | 4,637 | ||
Gross unrecognized tax benefits | 15,017 | 15,075 | $ 16,648 | $ 9,653 |
Net interest and penalties payable associated with uncertain tax positions | 1,500 | 900 | ||
Interest and penalties recognized | 600 | $ 600 | $ 200 | |
Non-U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 18,200 | |||
Indefinite net operating losses | 17,600 | |||
U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 71,200 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) at U.S. federal statutory income tax rate | $ 15,048 | $ 16,349 | $ (45,892) |
State and local tax expense | (3,065) | (580) | (2,897) |
Foreign tax rate differential | 3,181 | 1,939 | 3,521 |
Branch income | 11,016 | 4,830 | 1,601 |
Non-deductible expenses | 976 | 3,459 | 5,976 |
Tax credits | (27,983) | (9,316) | (57,277) |
Foreign-derived intangible income deduction | (2,708) | (4,775) | (3,901) |
Tax associated with reorganization | 0 | 0 | 239,990 |
Share-based compensation | (17,258) | (6,424) | 48,129 |
Prior year tax return to provision true-ups | (178) | (11,464) | 0 |
Changes in uncertain tax positions | 501 | (1,102) | 13,204 |
Changes in valuation allowance | 32,026 | 2,091 | (9,472) |
Foreign withholding tax | 9,312 | 6,992 | 4,231 |
Effects of changes in tax laws | (859) | 0 | 0 |
Other adjustments | (801) | 140 | (1,929) |
Total income tax expense | $ 19,208 | $ 2,139 | $ 195,284 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred revenue | $ 23,686 | $ 17,050 |
Capitalized research and development costs | 13,374 | 10,834 |
Accrued expenses | 10,361 | 8,882 |
Share-based compensation | 23,484 | 8,367 |
Lease liabilities | 12,835 | 8,321 |
Net operating loss carryforwards | 6,591 | 4,637 |
Other tax carryforwards, primarily foreign tax credits | 30,692 | 20,479 |
Other | 2,403 | 2,272 |
Total deferred tax assets before valuation allowance | 123,426 | 80,842 |
Less: valuation allowance | (56,323) | (24,297) |
Net deferred tax assets | 67,103 | 56,545 |
Intangible assets | 23,878 | 30,525 |
Right-of-use assets | 11,183 | 7,388 |
Other | 4,021 | 2,835 |
Total deferred tax liabilities | 39,082 | 40,748 |
Net deferred tax assets | $ 28,021 | $ 15,797 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefit, beginning of year | $ 15,017 | $ 15,075 | $ 16,648 |
Gross increases to tax positions for prior periods | 255 | 1,223 | 438 |
Gross decreases to tax positions for prior periods | 0 | (2,654) | (6,986) |
Gross increases to tax positions for current period | 0 | 0 | 13,543 |
Settlements | 0 | (10) | 0 |
Lapse of statutes of limitations | (313) | (132) | 0 |
Gross unrecognized tax benefit, end of year | $ 15,075 | $ 16,648 | $ 9,653 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Accrued Expenses, Current | ||
Accrued employee - related expenses | $ 76,283 | $ 63,890 |
Accrued tax liabilities | 22,531 | 23,001 |
Income taxes payable | 14,291 | 9,117 |
Other | 28,451 | 23,519 |
Total accrued expenses, current | $ 141,556 | $ 119,527 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||
Total principal | $ 281,125 | $ 401,125 |
Unamortized discount and debt issuance costs | (7,207) | (9,212) |
Total debt | 273,918 | 391,913 |
Current portion of long-term debt | 0 | 0 |
Long-term debt, net | $ 273,918 | $ 391,913 |
Secured Debt | First Lien Term Loan | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.70% | 2.40% |
Total principal | $ 281,125 | $ 401,125 |
Line of Credit | Revolving credit facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total principal | $ 0 | $ 0 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | Aug. 23, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs and original issuance discount | $ 100,000 | |||
Secured Debt | First Lien Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 950,000,000 | |||
Secured Debt | First Lien Term Loan | Alternative Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 1.25% | |||
Secured Debt | First Lien Term Loan | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 2.25% | |||
Secured Debt | First And Second Lien Term Loans | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs and original issuance discount | $ 2,000,000 | $ 1,900,000 | 1,700,000 | |
Threshold of sale of property or assets that requires loan prepayments | 5,000,000 | |||
Threshold of proceeds received from insurance settlement or new debt agreements that require loan prepayments | 5,000,000 | |||
Secured Debt | Second Lien Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 170,000,000 | |||
Loss on debt extinguishment | $ 2,700,000 | |||
Secured Debt | Second Lien Term Loan | Alternative Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 6.00% | |||
Secured Debt | Second Lien Term Loan | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 7.00% | |||
Revolving credit facility | Line of Credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 60,000,000 | |||
Available borrowing capacity | $ 44,400,000 | 44,400,000 | ||
Commitment fee percentage | 0.25% | |||
Fronting fee percentage | 0.125% | |||
Letter of Credit | Line of Credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 25,000,000 | |||
Letters of credit issued | $ 15,600,000 | $ 15,600,000 |
Long-term Debt - Maturities of
Long-term Debt - Maturities of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 281,125 | |
2027 | 0 | |
Thereafter | 0 | |
Total future payments | $ 281,125 | $ 401,125 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 6 years | ||
Weighted average discount rate | 5.20% | ||
Sublease Income | $ 2.5 | $ 3.9 | $ 4.5 |
Operating lease that has not yet commenced | $ 26.2 | ||
Operating lease agreement, rent payment | $ 14 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease that has not yet commenced, term | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease that has not yet commenced, term | 10 years |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 10,899 | $ 10,436 |
Short-term lease expense | 1,009 | 752 |
Variable lease expense | $ 793 | $ 674 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 13,466 | $ 13,478 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 29,112 | $ 5,260 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases, After Adoption of 842: | |
2023 | $ 15,524 |
2024 | 14,940 |
2025 | 11,900 |
2026 | 8,940 |
2027 | 8,001 |
Thereafter | 14,186 |
Total operating lease payments | 73,491 |
Less: imputed interest | (8,647) |
Total operating lease liabilities | $ 64,844 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring expenses | $ 0 | $ 0.9 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | Jul. 31, 2019shares | Jul. 31, 2019shares | Mar. 31, 2022USD ($)awardTypeinstallment$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($)participant$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of award types | awardType | 2 | ||||
Effect of reorganization | $ 278,248 | ||||
Weighted average grant date fair value of units granted (in dollars per share) | $ / shares | $ 7.71 | ||||
Total fair value of units vested | $ 278,200 | ||||
Granted (in dollars per share) | $ / shares | $ 52.86 | ||||
Aggregate intrinsic value of options exercised | $ 52,600 | $ 23,700 | |||
Exercise of stock options (in shares) | shares | 1,266,000 | 0 | |||
Share-based compensation expense | $ 99,536 | 57,784 | $ 222,478 | ||
Granted (in shares) | shares | 115,000 | ||||
2019 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future issuance (in shares) | shares | 52,000,000 | 52,000,000 | 37,458,426 | ||
Annual increase in shares reserved for future issuance based off of shares outstanding | 4.00% | ||||
Award vesting period | 4 years | ||||
2019 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 5,000 | $ 3,700 | $ 800 | ||
Total unrecognized compensation cost | $ 900 | ||||
2019 Employee Stock Purchase Plan | Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future issuance (in shares) | shares | 11,187,354 | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | shares | 371,740 | ||||
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 | ||||
Restricted Stock And Restricted Stock Units, Time-Based | 2019 Equity Incentive Plan | Award Period One | Share-based Payment Arrangement, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Restricted Stock And Restricted Stock Units, Time-Based | 2019 Equity Incentive Plan | Award Period One | Share-based Payment Arrangement, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Vesting percentage | 75.00% | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in dollars per share) | $ / shares | $ 20.90 | $ 13.08 | $ 6.43 | ||
Share based compensation cost not yet recognized | $ 32,300 | ||||
Weighted average period of recognition | 1 year 8 months 12 days | ||||
Share-based compensation expense | $ 18,900 | $ 16,800 | $ 7,200 | ||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in dollars per share) | $ / shares | $ 50.19 | $ 34.69 | $ 16.33 | ||
Weighted average period of recognition | 2 years 4 months 24 days | ||||
RSUs outstanding were comprised | shares | 5,180,000 | 3,041,000 | |||
Number of awards granted (in shares) | shares | 3,718,000 | ||||
Aggregate fair value vested | $ 72,200 | $ 50,100 | $ 11,700 | ||
Total unrecognized compensation cost | $ 174,900 | ||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSUs outstanding were comprised | shares | 4,100,000 | ||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of awards granted (in shares) | shares | 1,000,000 | ||||
Performance Based Restricted Stock Units Annual PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based compensation arrangement by share based payment award maximum percentage of shares issued based on performance target award | 1.50 | ||||
Performance Based Restricted Stock Units Annual PSUs | Share-based Payment Arrangement, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Vesting percentage | 25.00% | ||||
Performance Based Restricted Stock Units Annual PSUs | Share-based Payment Arrangement, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Vesting percentage | 75.00% | ||||
Share based compensation arrangement by share based payment award vesting number of equal installments | installment | 12 | ||||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in dollars per share) | $ / shares | $ 16 | ||||
Weighted average period of recognition | 9 months 18 days | ||||
RSUs outstanding were comprised | shares | 202,000 | 728,000 | |||
Number of awards granted (in shares) | shares | 0 | ||||
Granted (in shares) | shares | 0 | 0 | |||
Aggregate fair value vested | $ 27,700 | $ 42,100 | $ 19,300 | ||
Total unrecognized compensation cost | 1,900 | ||||
Unvested RSAs and RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 75,600 | $ 37,300 | $ 27,900 | ||
Shares committed under ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares reserved and available for issuance as a percentage of shares outstanding (in percent) | 1.00% | ||||
Increase In the number of shares reserved and available for issuance (in shares) | shares | 3,500,000 | ||||
ESPP offering period | 6 months | ||||
Purchase period | 6 months | ||||
Shares committed under ESPP | 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% | ||||
Performance-Based Restricted Stock Units, Incentive PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Share based compensation arrangement by share based payment award vesting number of equal installments | installment | 3 | ||||
Share based compensation arrangement by share based payment award terms of award minimum performance target percentage | 0.95 | ||||
Share based compensation arrangement by share based payment award maximum percentage of shares issued based on performance target award | 1.50 | ||||
Performance Shares | 2019 Equity Incentive Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Performance Shares | 2019 Equity Incentive Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years |
Share-based Compensation - Opti
Share-based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Number of Options | |||
Beginning balance (in shares) | 8,393,000 | ||
Granted (in shares) | 115,000 | ||
Exercised (in shares) | (1,266,000) | 0 | |
Forfeited (in shares) | (274,000) | ||
Ending balance (in shares) | 6,968,000 | 8,393,000 | |
Options vested and expected to vest (in shares) | 6,968,000 | ||
Options vested and exercisable (in shares) | 3,136,000 | ||
Weighted Average Exercise Price | |||
Weighted average exercise price, beginning of period (in dollars per share) | $ 21.31 | ||
Granted (in dollars per share) | 52.86 | ||
Exercised (in dollars per share) | 20.13 | ||
Forfeited (in dollars per share) | 25.62 | ||
Weighted average exercise price, end of period (in dollars per share) | 21.87 | $ 21.31 | |
Vested and expected to vest, weighted average exercise price (in dollars per share) | 21.87 | ||
Vested and exercisable, weighted average exercise price (in dollars per share) | $ 20.06 | ||
Weighted average remaining contractual term, options outstanding | 7 years 7 months 6 days | 8 years 7 months 6 days | |
Weighted average remaining contractual term, options vested and expected to vest | 7 years 7 months 6 days | ||
Weighted average remaining contractual term, options vested and exercisable | 7 years 6 months | ||
Aggregate intrinsic value, options outstanding | $ 176,839 | $ 226,438 | |
Aggregate intrinsic value, options vested and expected to vest | 176,839 | ||
Aggregate intrinsic value, options vested and exercisable | $ 84,920 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Fair Value Assumptions (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
2019 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | $ 0 | $ 0 | $ 0 |
Expected volatility | 35.90% | ||
Expected term (years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 160.00% | ||
2019 Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 35.40% | 35.90% | |
Risk-free interest rate | 0.04% | 0.10% | |
2019 Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 40.60% | 55.50% | |
Risk-free interest rate | 0.10% | 1.60% | |
Management Incentive Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | $ 0 | ||
Management Incentive Unit | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 35.00% | ||
Expected term (years) | 6 months | ||
Risk-free interest rate | 1.86% | ||
Management Incentive Unit | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 55.00% | ||
Expected term (years) | 1 year 3 months | ||
Risk-free interest rate | 2.09% | ||
Appreciation Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | $ 0 | ||
Appreciation Unit | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 35.00% | ||
Expected term (years) | 6 months | ||
Risk-free interest rate | 1.86% | ||
Appreciation Unit | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 55.00% | ||
Expected term (years) | 1 year 3 months | ||
Risk-free interest rate | 2.09% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | $ 0 | $ 0 | $ 0 |
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 39.50% | 39.30% | 37.10% |
Risk-free interest rate | 0.90% | 0.40% | 0.80% |
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 39.80% | 39.80% | 38.90% |
Risk-free interest rate | 1.10% | 1.10% | 1.90% |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Restricted Activity (Details) shares in Thousands | 12 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number of awards, beginning balance (in shares) | shares | 728 |
Number of awards granted (in shares) | shares | 0 |
Number of awards vested (in shares) | shares | (506) |
Number of units forfeited/repurchased (in shares) | shares | (20) |
Number of awards, ending balance (in shares) | shares | 202 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, units outstanding (in dollars per share) | $ / shares | $ 16 |
Weighted average participation threshold, granted (in dollars per share) | $ / shares | 0 |
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 16 |
Weighted average participation threshold, forfeited/repurchased (in dollars per share) | $ / shares | 16 |
Weighted average grant date fair value, units outstanding (in dollars per share) | $ / shares | $ 16 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number of awards, beginning balance (in shares) | shares | 3,041 |
Number of awards granted (in shares) | shares | 3,718 |
Number of awards vested (in shares) | shares | (1,305) |
Number of units forfeited/repurchased (in shares) | shares | (274) |
Number of awards, ending balance (in shares) | shares | 5,180 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, units outstanding (in dollars per share) | $ / shares | $ 24.44 |
Weighted average participation threshold, granted (in dollars per share) | $ / shares | 50.19 |
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 24.07 |
Weighted average participation threshold, forfeited/repurchased (in dollars per share) | $ / shares | 35.57 |
Weighted average grant date fair value, units outstanding (in dollars per share) | $ / shares | $ 42.43 |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 99,536 | $ 57,784 | $ 222,478 |
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 12,863 | 7,307 | 18,685 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 21,316 | 11,684 | 38,670 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 35,957 | 24,153 | 84,698 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 29,400 | $ 14,640 | $ 80,425 |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Narrative (Details) - $ / shares | Aug. 01, 2019 | Jul. 30, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Conversion of stock, conversion price (in dollars per share) | $ 16 | |
IPO | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [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 | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | |||
Net income (loss) | $ 52,451 | $ 75,714 | $ (413,817) |
Denominator: | |||
Weighted average shares outstanding, basic (in shares) | 284,161 | 280,469 | 264,933 |
Dilutive effect of stock-based awards (in shares) | 6,742 | 6,040 | 0 |
Weighted average shares outstanding, diluted (in shares) | 290,903 | 286,509 | 264,933 |
Net income (loss) per share, basic (in dollars per share) | $ 0.18 | $ 0.27 | $ (1.56) |
Net income (loss) per share, diluted (in dollars per share) | $ 0.18 | $ 0.26 | $ (1.56) |
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 | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 170 | 1,901 | 4,763 |
Unvested RSAs and RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 119 | 11 | 3,819 |
Shares committed under ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 0 | 0 | 64 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |
Contribution for taxes associated with reorganization | $ 265,000 |
Financial And Management Advisory Services | Affiliated Entity | |
Related Party Transaction [Line Items] | |
Transfers to related parties | $ 1,600 |
Related Party Debt (Details)
Related Party Debt (Details) - Subordinated Debt - Subordinated Demand Promissory Notes - Affiliated Entity - USD ($) | 12 Months Ended | |
Mar. 31, 2020 | Apr. 01, 2015 | |
Related Party Transaction [Line Items] | ||
Debt instrument, face amount | $ 1,800,000,000 | |
Interest expense | $ 4,100,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Employer discretionary contribution amount | $ 4.6 | $ 3.6 | $ 3.1 |
Geographic Information - Summar
Geographic Information - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 45,271 | $ 36,916 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 15,462 | 12,129 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 28,195 | 23,124 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 1,429 | 1,619 |
Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 185 | $ 44 |