Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2024 | May 20, 2024 | Sep. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11.3 | ||
Entity Common Stock, Shares Outstanding | 297,338,732 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement for the 2024 Annual Meeting of Stockholders 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 ended March 31, 2024. 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 | 2024 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001773383 |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young, LLP |
Auditor Location | Detroit, MI |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 778,983 | $ 555,348 |
Short-term investments | 57,891 | 0 |
Accounts receivable, net | 602,739 | 442,518 |
Deferred commissions, current | 98,935 | 83,029 |
Prepaid expenses and other current assets | 66,749 | 37,289 |
Total current assets | 1,605,297 | 1,118,184 |
Long-term investments | 46,350 | 0 |
Property and equipment, net | 53,325 | 53,576 |
Operating lease right-of-use asset, net | 61,390 | 68,074 |
Goodwill | 1,335,494 | 1,281,812 |
Intangible assets, net | 50,995 | 63,599 |
Deferred tax assets, net | 138,836 | 79,822 |
Deferred commissions, non-current | 93,310 | 86,232 |
Other assets | 24,782 | 14,048 |
Total assets | 3,409,779 | 2,765,347 |
Current liabilities: | ||
Accounts payable | 21,410 | 21,953 |
Accrued expenses, current | 233,675 | 188,380 |
Deferred revenue, current | 987,953 | 811,058 |
Operating lease liabilities, current | 15,513 | 15,652 |
Total current liabilities | 1,258,551 | 1,037,043 |
Deferred revenue, non-current | 62,308 | 34,423 |
Accrued expenses, non-current | 18,404 | 29,212 |
Operating lease liabilities, non-current | 54,013 | 59,520 |
Deferred tax liabilities | 1,013 | 280 |
Total liabilities | 1,394,289 | 1,160,478 |
Commitments and contingencies (Note 13) | ||
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 | 297 | 290 |
Additional paid-in capital | 2,249,349 | 1,989,797 |
Accumulated deficit | (198,757) | (353,389) |
Accumulated other comprehensive loss | (35,399) | (31,829) |
Total shareholders' equity | 2,015,490 | 1,604,869 |
Total liabilities and shareholders' equity | $ 3,409,779 | $ 2,765,347 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common shares, 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) | 296,962,547 | 290,411,108 |
Common shares, outstanding (in shares) | 296,962,547 | 290,411,108 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | |||
Total revenue | $ 1,430,530 | $ 1,158,530 | $ 929,445 |
Cost of revenue: | |||
Amortization of acquired technology | 16,265 | 15,564 | 15,513 |
Total cost of revenue | 266,453 | 222,891 | 172,876 |
Gross profit | 1,164,077 | 935,639 | 756,569 |
Operating expenses: | |||
Research and development | 304,739 | 218,349 | 156,342 |
Sales and marketing | 534,233 | 448,015 | 362,116 |
General and administrative | 174,412 | 150,172 | 126,647 |
Amortization of other intangibles | 22,293 | 26,292 | 30,157 |
Total operating expenses | 1,035,677 | 842,828 | 675,262 |
Income from operations | 128,400 | 92,811 | 81,307 |
Interest income (expense), net | 37,284 | (3,409) | (10,192) |
Other (expense) income, net | (10,769) | 565 | 544 |
Income before income taxes | 154,915 | 89,967 | 71,659 |
Income tax (expense) benefit | (283) | 17,992 | (19,208) |
Net income | $ 154,632 | $ 107,959 | $ 52,451 |
Net income per share: | |||
Basic (in dollars per share) | $ 0.53 | $ 0.38 | $ 0.18 |
Diluted (in dollars per share) | $ 0.52 | $ 0.37 | $ 0.18 |
Weighted average shares outstanding: | |||
Basic (in shares) | 294,051 | 287,700 | 284,161 |
Diluted (in shares) | 299,280 | 291,617 | 290,903 |
Subscription | |||
Revenue: | |||
Total revenue | $ 1,359,354 | $ 1,083,330 | $ 870,439 |
Cost of revenue: | |||
Cost of revenues | 184,765 | 144,445 | 111,646 |
Service | |||
Revenue: | |||
Total revenue | 71,176 | 75,200 | 59,006 |
Cost of revenue: | |||
Cost of revenues | $ 65,423 | $ 62,882 | $ 45,717 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 154,632 | $ 107,959 | $ 52,451 |
Other comprehensive loss | |||
Foreign currency translation adjustment | (3,397) | (5,140) | (478) |
Unrealized losses on available-for-sale investments, net of taxes | (173) | 0 | 0 |
Total other comprehensive loss | (3,570) | (5,140) | (478) |
Comprehensive income | $ 151,062 | $ 102,819 | $ 51,973 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2021 | 283,130,000 | ||||
Beginning balance at Mar. 31, 2021 | $ 1,113,601 | $ 283 | $ 1,653,328 | $ (513,799) | $ (26,211) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other comprehensive loss | (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 | ||||
Exercise of stock options | 25,489 | $ 1 | 25,488 | ||
Share-based compensation | 99,536 | 99,536 | |||
Equity repurchases | (66) | (66) | |||
Net income | 52,451 | 52,451 | |||
Ending balance (in shares) at Mar. 31, 2022 | 286,053,000 | ||||
Ending balance at Mar. 31, 2022 | 1,304,446 | $ 286 | 1,792,197 | (461,348) | (26,689) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other comprehensive loss | (5,140) | (5,140) | |||
Restricted stock units vested (in shares) | 2,139,000 | ||||
Restricted stock units vested | 0 | $ 2 | (2) | ||
Restricted stock awards forfeited (in shares) | (15,000) | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 553,000 | ||||
Issuance of common stock related to employee stock purchase plan | 17,806 | 17,806 | |||
Exercise of stock options (in shares) | 1,681,000 | ||||
Exercise of stock options | 32,939 | $ 2 | 32,937 | ||
Share-based compensation | 146,874 | 146,874 | |||
Equity repurchases | (15) | (15) | |||
Net income | $ 107,959 | 107,959 | |||
Ending balance (in shares) at Mar. 31, 2023 | 290,411,108 | 290,411,000 | |||
Ending balance at Mar. 31, 2023 | $ 1,604,869 | $ 290 | 1,989,797 | (353,389) | (31,829) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other comprehensive loss | (3,570) | (3,570) | |||
Restricted stock units vested (in shares) | 4,376,000 | ||||
Restricted stock units vested | 0 | $ 4 | (4) | ||
Restricted stock awards granted (in shares) | 142,000 | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 534,000 | ||||
Issuance of common stock related to employee stock purchase plan | $ 19,472 | $ 1 | 19,471 | ||
Exercise of stock options (in shares) | 1,500,000 | 1,500,000 | |||
Exercise of stock options | $ 31,191 | $ 2 | 31,189 | ||
Share-based compensation | 208,896 | 208,896 | |||
Net income | $ 154,632 | 154,632 | |||
Ending balance (in shares) at Mar. 31, 2024 | 296,962,547 | 296,963,000 | |||
Ending balance at Mar. 31, 2024 | $ 2,015,490 | $ 297 | $ 2,249,349 | $ (198,757) | $ (35,399) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 154,632 | $ 107,959 | $ 52,451 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation | 15,499 | 12,541 | 10,638 |
Amortization | 39,441 | 42,070 | 46,238 |
Share-based compensation | 208,896 | 146,874 | 99,536 |
Loss on extinguishment of debt | 0 | 5,925 | 0 |
Deferred income taxes | (59,915) | (53,534) | (12,401) |
Other | 11,216 | 988 | 1,486 |
Net change in operating assets and liabilities: | |||
Accounts receivable | (161,888) | (94,910) | (108,848) |
Deferred commissions | (23,520) | (45,191) | (29,533) |
Prepaid expenses and other assets | (47,401) | 26,753 | (8,108) |
Accounts payable and accrued expenses | 37,896 | 58,680 | 35,946 |
Operating leases, net | 1,026 | 1,186 | 1,353 |
Deferred revenue | 202,227 | 145,544 | 162,159 |
Net cash provided by operating activities | 378,109 | 354,885 | 250,917 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (26,459) | (21,540) | (17,695) |
Capitalized software additions | (5,268) | 0 | 0 |
Acquisition of businesses, net of cash acquired | (57,111) | 0 | (13,195) |
Purchases of investments | (104,210) | 0 | 0 |
Net cash used in investing activities | (193,048) | (21,540) | (30,890) |
Cash flows from financing activities: | |||
Repayment of term loans | 0 | (281,125) | (120,000) |
Debt issuance costs | 0 | (1,949) | 0 |
Proceeds from employee stock purchase plan | 19,472 | 17,806 | 13,913 |
Proceeds from exercise of stock options | 31,191 | 32,939 | 25,489 |
Equity repurchases | 0 | (15) | (66) |
Net cash provided by (used in) financing activities | 50,663 | (232,344) | (80,664) |
Effect of exchange rates on cash and cash equivalents | (12,089) | (8,620) | (1,358) |
Net increase in cash and cash equivalents | 223,635 | 92,381 | 138,005 |
Cash and cash equivalents, beginning of year | 555,348 | 462,967 | 324,962 |
Cash and cash equivalents, end of year | 778,983 | 555,348 | 462,967 |
Supplemental cash flow data: | |||
Cash paid for interest | 851 | 7,109 | 8,375 |
Cash paid for tax (received from), net | 81,360 | (14,311) | 24,247 |
Non-cash investing and financing activities: | |||
Capitalized software additions in accounts payable and accrued expenses | $ 6,073 | $ 0 | $ 0 |
Description of the Business
Description of the Business | 12 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Business Dynatrace, Inc. (“Dynatrace” or the “Company”) offers the only end-to-end platform that combines broad and deep observability and continuous runtime application security with advanced artificial intelligence (“AI”) for IT operations to provide answers and intelligent automation from data at an enormous scale. The Company’s comprehensive solutions help IT, development, security, and business operations teams at global organizations modernize and automate cloud operations, deliver software faster and more securely, and provide significantly improved digital experiences. Fiscal year The Company’s fiscal year ends on March 31. References to fiscal 2024, for example, refer to the fiscal year ended March 31, 2024. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of presentation and consolidation 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. During fiscal 2023, the Company refined its methodology used to allocate depreciation expense for certain property and equipment to better align the expense with the related use of property and equipment. This change in allocating depreciation expense had no impact on the Company’s income from operations and net income and was applied retrospectively to fiscal 2023. Fiscal 2022 has not been reclassified to conform to the current period presentation as the impact is not material. Foreign currency translation The reporting currency of the Company is the U.S. dollar. 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. 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 (expense) income, 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 amounts reported in the consolidated financial statements and accompanying notes. Management evaluates such estimates and assumptions on an ongoing basis. 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 allowance for credit losses, the fair value of assets acquired and liabilities assumed in business combinations, the 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. Management bases these estimates on historical experiences and on various other assumptions that we believe are reasonable. 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 fair value of the purchase price to the assets acquired and liabilities assumed. The excess of the purchase price over the fair values of the identifiable assets and liabilities is recorded as goodwill. Determining the fair values of identifiable assets and liabilities requires management to make estimates and assumptions, 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 weighted average cost of capital, the cost savings expected to be derived from acquiring an asset and the useful lives of intangible assets. 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. Acquisition-related transactions are expensed as incurred. Revenue recognition The Company sells subscriptions, software licenses, 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 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 (a) subscription services, (b) software licenses, (c) maintenance and support for software licenses, and (d) 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 subscription services or software licenses. The Company has determined that its pricing for subscription services and software licenses 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 Software-as-a-Service (“SaaS”) basis, term-based and perpetual licenses of the Dynatrace platform, as well as maintenance. The when-and-if available updates of the Dynatrace platform, which are part of the maintenance agreement, are critical to the continued utility of the Dynatrace platform; therefore, the Company has determined the Dynatrace platform and the related when-and-if available updates to be a combined performance obligation. Accordingly, when Dynatrace platform 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 platform 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 platform 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. 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 a period of benefit which the Company has estimated to be three years. 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 12 months of the balance sheet date; whereas, long-term deferred revenue represents the unearned revenue that will be earned after 12 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 modifications 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 depreciation of equipment, 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 the Company’s services organization and allocated overhead for depreciation of equipment, facilities and IT. 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 the Thoma Bravo Funds’ acquisition of the Company in 2014, business combinations and asset acquisitions. Research and development Research and development costs are expensed as incurred. Research and development costs primarily include the cost of programming personnel, including share-based compensation, and allocated overhead for deprecation of equipment, facilities and IT. Advertising Advertising costs are expensed as incurred and are included in “Sales and marketing” expense in the consolidated statements of operations. Advertising expense was $37.7 million, $36.2 million, and $49.9 million during the years ended March 31, 2024, 2023 and 2022, 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 for the lease term and a lease liability represents the Company’s obligation to make payments during the lease term. Right-of-use assets are recognized at the lease commencement date for the lease liability, 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. The discount rate used to determine the present value is the incremental borrowing rate as the implicit rate for the operating leases is generally not determinable. The Company determines the incremental borrowing 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 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 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, investments and accounts receivable. The Company maintains the majority of its cash, cash equivalents and investments with major financial institutions that the Company believes to be of high credit standing. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. The Company provides credit to customers in the normal course of business. The Company’s customer base consists of a large number of geographically-dispersed customers across multiple industries. As of March 31, 2024, there was one customer with a balance greater than 10% of accounts receivable. No customer represented more than 10% of the accounts receivable balance as of March 31, 2023 or 10% of revenue for the years ended March 31, 2024, 2023 and 2022. Cash and cash equivalents All highly liquid investments with an original maturity of three months or less when purchased are considered cash and cash equivalents. Investments The Company’s investments consist of U.S. treasury securities. These investments are classified as available-for-sale and recorded at fair value in the consolidated balance sheet. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield. Interest income is recognized when earned. Unrealized gains and losses on available-for-sale investments, net of tax, are included within accumulated other comprehensive income in the consolidated balance sheets. The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as credit ratings, issuer-specific factors, current economic conditions, and reasonable and supportable forecasts. The Company does not intent to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of their amortized cost basis. Based on the evaluation of available evidence, the Company does not believe any unrealized losses on its investments as of March 31, 2024 represent credit losses. Accounts receivable, net 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 $4.5 million and $3.8 million as of March 31, 2024 and 2023, respectively. Property and equipment, net The Company states property and equipment, net, at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. 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 Lesser of 10 years or the lease term Goodwill and intangible assets Goodwill represents the excess of the purchase price of an acquired business over the fair value of the assets acquired and liabilities assumed. Goodwill is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company has elected to first assess the qualitative factors to determine if it is more likely than not that the fair value of the underlying assets is less than its carrying amount. If the Company determines that it is more likely than not that the underlying assets’ fair value is less than its carrying amount in the qualitative analysis, then a quantitative goodwill impairment test will be performed by comparing the fair value of the assets to their carrying value. For the purposes of impairment testing, the Company is evaluated as one reporting unit. Intangible assets consist primarily of customer relationships, developed technology, tradenames and trademarks, all of which have a finite useful life. 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. There was no impairment of goodwill during the years ended March 31, 2024, 2023 and 2022. Capitalized software Software development costs associated with software developed, acquired or modified for internal use is capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation stages of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. These capitalized costs consist of internal compensation related costs and direct external costs. The amortization period for these capitalized costs is generally three During the year ended March 31, 2024, the Company entered into a license agreement with an application security provider, resulting in $10.3 million of capitalized costs related to software developed for internal use. During the years ended March 31, 2023 and 2022, the Company did not capitalize costs for software developed for internal use. Amortization of software developed for internal use was $0.9 million, $0.2 million, and $0.6 million during the years ended March 31, 2024, 2023 and 2022, respectively, and is recorded within “Cost of subscription” in the consolidated statements of operations. Costs related to software developed for sale are expensed as research and development until technological feasibility has been established for the product. Once technological feasibility has been established for the product, all software costs are capitalized until the product is available for general release to customers. To date, the software development costs have not been capitalized as the cost incurred and time between technological feasibility and general product release was insignificant. As such, these costs are expensed as incurred and recorded in “Research and development” in the consolidated statements of operations. Impairment of long-lived assets Long-lived assets 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 or asset group 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. The Company has not incurred any impairment losses during the years ended March 31, 2024, 2023 and 2022. 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 consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and income tax bases of assets and liabilities and net operating loss and tax 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. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all of the deferred taxes will not be realized. 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. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line the accompanying consolidated statement of operations. The Company treats Global Intangible Low Taxed Income ("GILT") as a period cost. Fair value of assets and liabilities Assets and liabilities recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The hierarchical levels 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 financial instruments including cash equivalents, investments, accounts receivable, accounts payable and other current liabilities are stated at their carrying value, which approximates their fair values due to their short maturities. Share-based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments, including stock options, restricted stock awards (“RSAs”), time-based and performance-based restricted stock units (“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 RSAs and RSUs is determined by the closing price on the date of grant of the Company’s common stock. The Company recognizes share-based compensation expense following the straight-line attribution method over the requisite service period of the entire award for stock options, RSAs 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 based upon the probability that the performance condition will be satisfied. Forfeitures are accounted for in the period in which the awards are forfeited. Net income per share Basic net income per share is calculated by dividing the net income for the period by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed by giving effect to all potentially dilutive securities, including stock options, RSUs, RSAs, and the impact of the purchase rights of the ESPP. Recently issued accounting pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and application of all segment disclosure requirement to entities with a single reportable segment. ASU 2023-07 is effective for the Company’s fiscal 2025 and interim periods thereafter. The Company is evaluating the impact of the ASU on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in the income tax rate reconciliation table and disaggregates the income taxes paid by jurisdiction. ASU 2023-09 will be effective for the Company’s fiscal 2026. The Company is currently evaluating the impact of the ASU on its income tax disclosures within the consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 2022 Amount % Amount % Amount % North America $ 852,497 60 % $ 690,899 60 % $ 512,946 56 % Europe, Middle East and Africa 354,793 25 % 292,176 25 % 278,902 30 % Asia Pacific 130,611 9 % 111,339 10 % 96,454 10 % Latin America 92,629 6 % 64,116 5 % 41,143 4 % Total revenue $ 1,430,530 $ 1,158,530 $ 929,445 For the years ended March 31, 2024, 2023, and 2022, the United States was the only country that represented more than 10% of the Company’s revenues in any period, constituting $807.7 million and 56%, $652.0 million and 56%, and $477.2 million and 51% 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, 2024 2023 2022 Beginning balance $ 169,261 $ 126,036 $ 97,624 Additions to deferred commissions 121,100 119,233 89,899 Amortization of deferred commissions (98,116) (76,008) (61,487) Ending balance $ 192,245 $ 169,261 $ 126,036 Deferred revenue Revenue recognized during the years ended March 31, 2024, 2023, and 2022 which was included in the deferred revenue balances at the beginning of each respective period was $800.0 million, $670.1 million, and $502.4 million. Remaining performance obligations As of March 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $2,422.9 million, which consists of both billed consideration in the amount of $1,050.3 million and unbilled consideration in the amount of $1,372.6 million that the Company expects to recognize as subscription and service revenue. The Company expects to recognize 54% of this amount as revenue in the year ending March 31, 2025 and the remainder thereafter. Contract assets As of March 31, 2024 and March 31, 2023, contract assets of $5.2 million and $0.4 million, respectively, are included in accounts receivable, net, on the Company’s consolidated balance sheets. |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Rookout, Ltd. On August 31, 2023, the Company acquired 100% of the outstanding equity of Rookout, Ltd. (“Rookout”). Rookout is a provider of enterprise-ready and privacy-aware solutions that enable developers to troubleshoot and debug actively running code in Kubernetes-hosted cloud-native applications. This acquisition expanded the Company’s unified observability and security platform from the addition of Rookout’s technology and experienced team. The purchase consideration of Rookout was $33.4 million, after considering certain adjustments, and was paid from cash on hand. The fair value of the purchase price was allocated to the identifiable assets acquired and liabilities assumed as of the acquisition date, with the excess recorded to goodwill as shown below (in thousands). Assets acquired: Cash and cash equivalents $ 1,152 Accounts receivable, prepaid and other assets 342 Property and equipment 46 Intangible asset 7,800 Total assets acquired $ 9,340 Liabilities assumed: Accounts payable, accrued and other liabilities 2,242 Deferred revenue 1,064 Total liabilities assumed $ 3,306 Net assets acquired 6,034 Fair value of consideration transferred 33,407 Goodwill $ 27,373 These preliminary amounts are subject to subsequent adjustment as additional information is obtained to finalize certain components of working capital and deferred income taxes. Goodwill is primarily attributable to expected synergies and acquired skilled workforce. The goodwill was allocated to the Company’s one reporting unit. The Company identified developed technology as the sole acquired intangible asset. The estimated fair value of the developed technology was $7.8 million, which was based on a valuation using the income approach and was classified as capitalized software on the consolidated balance sheet. The estimated useful life of the developed technology is seven years. The acquired goodwill and intangible asset were not deductible for tax purposes. The operating results of Rookout from the date of acquisition have been included in the Company’s consolidated statements of operations. The revenue and net loss attributable to Rookout for the year ended March 31, 2024 was not material. The transaction costs related to the Rookout acquisition were $2.9 million for the year ended March 31, 2024 and are included in general and administrative expense on the consolidated statements of operations. Runecast Solutions Limited On March 1, 2024, the Company acquired a 100% equity interest in Runecast Solutions Limited (“Runecast”). Runecast is a provider of software solutions that provide insights for security compliance, vulnerability assessment, and configuration management for complex, on-premises, hybrid and multi-cloud IT environments. This acquisition expanded the Company’s unified observability and security platform from the addition of Runecast’s technology and experienced team. The preliminary purchase consideration consisted of $26.1 million cash paid at closing and $2.3 million in deferred cash payments. The deferred cash payments will be held by the Company to satisfy indemnification obligations and post-closing purchase price adjustments payable within 15 months after the acquisition date. In connection with the acquisition of Runecast, per the purchase agreement, $9.0 million of RSAs will be issued to the previous owners subject to continuing employment and certain indemnification clauses. The RSAs are considered share-based compensation expense and $0.3 million was recognized in fiscal 2024. The fair value of the purchase price was allocated to the identifiable assets acquired and assumed acquired as of the acquisition date, with the excess recorded to goodwill as shown below (in thousands). Assets acquired: Cash and cash equivalents $ 1,224 Accounts receivable, prepaid and other assets 883 Property and equipment 50 Intangible assets 7,500 Other non-current assets 436 Total assets acquired $ 10,093 Liabilities assumed: Accounts payable, accrued and other liabilities 582 Deferred revenue 5,132 Other non-current liabilities 1,229 Total liabilities assumed $ 6,943 Net assets acquired 3,150 Fair value of consideration transferred 28,390 Goodwill $ 25,240 The preliminary fair value of assets acquired and liabilities assumed may change as additional information is received during the measurement period. Goodwill is primarily attributable to expected synergies and acquired skilled workforce. The goodwill was allocated to the Company’s one reporting unit. The Company identified developed technology and customer relationships as the acquired intangible assets. The estimated fair value of the developed technology and customer relationships was $7.3 million and $0.2 million, respectively, which was based on a valuation using the income approach. The estimated useful lives of the developed technology and customer relationships is seven years and four years, respectively. The acquired goodwill and intangible assets were not deductible for tax purposes. The operating results of Runecast from the date of acquisition have been included in the Company’s consolidated statements of operations. The revenue and net loss attributable to Runecast for the year ended March 31, 2024 was not material. The transaction costs related to the Runecast acquisition were $3.0 million for the year ended March 31, 2024 and are included in the general and administrative expense on the consolidated statement of operations. Fiscal 2022 Acquisitions |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our available-for-sale investments, including those securities classified within “Cash and cash equivalents” in the consolidated balance sheets (in thousands): March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities $ 149,978 $ — $ (229) $ 149,749 As of March 31, 2024, the fair values of available-for-sale investments, excluding those securities classified within “Cash and cash equivalents” in the consolidated balance sheets, by remaining contractual maturity are as follows (in thousands): Due within one year $ 57,891 Due in one year through five years 46,248 Total $ 104,139 Beginning in January 2024, the Company offers the ability to participate in a non-qualified deferred compensation plan to certain eligible employees. The Company holds $0.1 million of mutual funds that are associated with this plan and are classified as restricted trading securities. These securities are not included in the tables above but are included as investments in the consolidated balance sheets. The following tables present the Company’s financial assets that have been measured at fair value on a recurring basis as of March 31, 2024 and 2023, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 477,102 $ — $ — $ 477,102 U.S. treasury securities — 45,610 — 45,610 Investments: Mutual funds 102 — — 102 U.S. treasury securities — 104,139 — 104,139 Total financial assets $ 477,204 $ 149,749 $ — $ 626,953 March 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 338,746 $ — $ — $ 338,746 Total financial assets $ 338,746 $ — $ — $ 338,746 The Company recorded interest income from its cash, cash equivalents, and investments of $38.7 million, $11.1 million, $0.2 million for the years ended March 31, 2024, 2023, and 2022, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Prepaid expenses $ 46,435 $ 30,014 Income taxes refundable 10,839 3,546 Other 9,475 3,729 Prepaid expenses and other current assets $ 66,749 $ 37,289 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Computer equipment and software $ 33,591 $ 32,807 Furniture and fixtures 15,334 13,971 Leasehold improvements 45,742 41,496 Other 9,990 6,469 Total property and equipment 104,657 94,743 Less: accumulated depreciation and amortization (51,332) (41,167) Property and equipment, net $ 53,325 $ 53,576 Depreciation of property and equipment totaled $15.5 million, $12.5 million, and $10.6 million for the years ended March 31, 2024, 2023, and 2022, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill on a consolidated basis for fiscal 2024 consists of the following (in thousands): March 31, 2024 Balance, beginning of year $ 1,281,812 Goodwill from acquisitions 52,613 Foreign currency impact 1,069 Balance, end of year $ 1,335,494 Intangible assets, net, excluding goodwill, consists of the following (in thousands): Weighted Average Useful Life (in months) March 31, 2024 2023 Capitalized software 103 $ 218,529 $ 191,863 Customer relationships 120 351,756 351,555 Trademarks and tradenames 120 55,003 55,003 Total intangible assets 625,288 598,421 Less: accumulated amortization (574,293) (534,822) Total intangible assets, net $ 50,995 $ 63,599 Amortization of intangible assets totaled $39.4 million, $42.1 million, and $46.2 million for the years ended March 31, 2024, 2023, and 2022, respectively. As of March 31, 2024, the estimated future amortization expense of the Company’s intangible assets is as follows (in thousands): Fiscal Year Ended March 31, 2025 2026 2027 2028 2029 Thereafter Capitalized software $ 15,245 $ 4,622 $ 4,622 $ 4,622 $ 3,761 $ 4,437 Customer relationships 10,523 50 50 46 — — Trademarks and tradenames 3,017 — — — — — Total amortization $ 28,785 $ 4,672 $ 4,672 $ 4,668 $ 3,761 $ 4,437 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provision Income (loss) before income taxes includes the following (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Domestic $ 82,033 $ 63,869 $ (2,977) Foreign 72,882 26,098 74,636 Total $ 154,915 $ 89,967 $ 71,659 The income tax provision includes the following (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Current tax position: Federal $ 44,568 $ 11,947 $ 8,290 State (6,236) 8,071 2,257 Foreign 21,839 15,335 21,406 Total current tax position 60,171 35,353 31,953 Deferred tax provision: Federal (52,712) (50,345) (1,341) State (3,500) (1,689) — Foreign (3,676) (1,311) (11,404) Total deferred tax provision (59,888) (53,345) (12,745) Total income tax expense (benefit) $ 283 $ (17,992) $ 19,208 The Company’s income tax (benefit) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended March 31, 2024, 2023 and 2022 to pre-tax income, as a result of the following (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Income tax expense at U.S. federal statutory income tax rate $ 32,532 $ 18,893 $ 15,048 State and local tax expense (benefit) 306 1,421 (3,065) Foreign tax rate differential 3,318 1,770 3,181 U.S. effects of foreign branch income 8,662 1,519 11,016 Non-deductible expenses 1,742 1,216 898 Tax credits (41,740) (26,457) (27,983) GILTI inclusion and FDII deduction (13,905) (10,938) (2,708) Employee compensation (7,188) 5,528 (17,180) Changes in uncertain tax positions (14,835) 10,978 501 Changes in valuation allowance 13,080 (32,629) 32,026 Foreign withholding tax 18,469 12,598 9,312 Effects of changes in tax laws (186) 382 (859) Inflation and currency related adjustments 851 (1,518) (592) Other adjustments (823) (755) (387) Total income tax expense (benefit) $ 283 $ (17,992) $ 19,208 Deferred tax assets and liabilities As of March 31, 2024, the Company continues to maintain a valuation allowance of $32.1 million with respect to certain U.S. federal and state deferred tax assets that, due to their nature, are not likely to be realized. In addition, the Company continues to maintain a valuation allowance of $8.4 million with respect to its deferred tax assets in certain non-U.S. jurisdictions. The net change in the valuation allowance during the year ended March 31, 2024 was $16.9 million. Temporary differences and carryforwards that give rise to a significant portion of deferred tax assets and liabilities are as follows (in thousands): March 31, 2024 2023 Deferred tax assets: Deferred revenue $ 26,088 $ 22,639 Capitalized research and development costs 106,836 51,933 Accrued expenses 20,284 12,714 Share-based compensation 28,518 28,831 Lease liabilities 14,892 15,286 Net operating loss carryforwards 10,998 4,216 Other tax carryforwards, primarily foreign tax credits 29,822 21,853 Other 3,070 7,726 Total deferred tax assets 240,508 165,198 Valuation allowance (40,530) (23,608) Total deferred tax assets, net valuation allowance 199,978 141,590 Deferred tax liabilities: Intangible assets 12,880 17,953 Right-of-use assets 12,826 13,466 Deferred commissions 33,798 28,039 Other 2,651 2,590 Total deferred tax liabilities 62,155 62,048 Net deferred tax assets $ 137,823 $ 79,542 At March 31, 2024, the Company had non-U.S. net operating loss carryforwards of $44.5 million, and non-U.S. tax credit carryforwards of $0.5 million, all of which may be carried forward indefinitely. The Company had U.S. state and local net operating loss carryforwards of $35.9 million, of which $33.0 million expire in periods through 2042 if not utilized, and the remaining balance of $2.9 million may be carried forward indefinitely. The Company had U.S. federal tax credit carryforwards of $29.2 million, which expire in periods through 2034. Deferred tax assets of $28.8 million related to U.S. state net operating losses and federal tax credit carryforwards are subject to valuation allowances as of March 31, 2024. 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 as the Company maintains its assertion that it intends these to be indefinitely reinvested. Generally, these earnings will be treated as previously taxed income from either the one-time transition tax or GILTI, or they will be offset with a 100% dividend received deduction. The income taxes applicable to repatriating such earnings are not readily determinable. Uncertain tax positions The amount of gross unrecognized tax benefits (“UTBs”) was $13.7 million and $29.1 million as of March 31, 2024 and 2023, 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, 2024, 2023, and 2022 (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Gross unrecognized tax benefit, beginning of year $ 29,110 $ 15,017 $ 15,075 Gross increases to tax positions for prior periods 721 16,471 222 Gross decreases to tax positions for prior periods (4,277) (808) — Decreases related to settlements (168) (625) — Decreases due to lapse of statutes of limitations (11,689) (832) (313) Foreign currency translation $ (29) $ (113) $ 33 Gross unrecognized tax benefit, end of year $ 13,668 $ 29,110 $ 15,017 As of March 31, 2024 and 2023, the net interest and penalties payable associated with uncertain tax positions was $1.1 million and $2.5 million, respectively. During the years ended March 31, 2024, 2023, and 2022, the Company recognized a benefit of $1.4 million, and expense of $1.0 million and $0.6 million, respectively, related to interest and penalties. The Company files tax returns in U.S. federal, state, and foreign jurisdictions and the tax returns are subject to examination by various domestic and international tax authorities. As of March 31, 2024, the Company has open U.S. federal tax years back to fiscal year 2021. The Company also has open years in certain significant state jurisdictions back to fiscal year 2019, and foreign jurisdictions back to 2014. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations due to the amount, timing or inclusion of revenue and expenses. It is reasonably possible that approximately $3.0 million of certain U.S. and foreign UTBs may be recognized within the next twelve months as a result of a lapse of the statute of limitations. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses, current consists of the following (in thousands): March 31, 2024 2023 Accrued employee - related expenses $ 127,100 $ 105,990 Accrued tax liabilities 45,234 29,122 Income taxes payable 18,741 18,603 Other 42,600 34,665 Total accrued expenses, current $ 233,675 $ 188,380 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt On December 2, 2022, the Company entered into a Credit Agreement for a senior secured revolving credit facility (the “Credit Facility”) in an aggregate amount of $400.0 million. The Credit Facility has sublimits for swing line loans up to $30.0 million and for the issuance of standby letters of credit in a face amount up to $45.0 million. The Credit Facility will mature on December 2, 2027. As of March 31, 2024 and March 31, 2023, there were no amounts outstanding under the Credit Facility. There were $0.8 million and $15.5 million of letters of credit issued as of March 31, 2024 and March 31, 2023, respectively. The Company had $399.2 million and $384.5 million of availability under the Credit Facility as of March 31, 2024 and March 31, 2023, respectively. Borrowings under the Credit Facility are available in U.S. dollars, Euros, Pounds Sterling and Canadian dollars, with a sublimit of $100.0 million for non-U.S. dollar-denominated borrowings. Borrowings under the Credit Facility currently bear interest at (i) the Term Secured Overnight Financing Rate plus 0.10%, (ii) the Adjusted Euro Interbank Offer Rate, (iii) the Canadian Dollar Offered Rate, (iv) the Base Rate, as defined per the Credit Facility, or (v) the Sterling Overnight Index Average, in each case plus an applicable margin as defined per the Credit Agreement. Interest payments are due quarterly, or more frequently, based on the terms of the Credit Facility. The Company incurs fees with respect to the Credit Facility, including (i) a commitment fee ranging from 0.175% to 0.35% per annum, dependent on the Company’s leverage ratio, as defined per the Credit Facility, of the unused commitment under the Credit Facility, (ii) a fronting fee of 0.125% per annum of the face amount of each letter of credit, (iii) a participation fee equal to the applicable margin, as defined per the Credit Facility, applied to the daily average face amount of letters of credit, and (iv) customary administrative fees. Debt issuance costs of $1.9 million were incurred in connection with the Credit Facility. The debt issuance costs are included within “Other assets” in the consolidated balance sheets and are being amortized into interest expense over the contractual term of the Credit Facility. There were $1.4 million and $1.8 million of unamortized debt issuance costs as of March 31, 2024 and March 31, 2023, respectively. Pursuant to the Credit Facility, obligations owed under the Credit Facility are secured by a first priority security interest on substantially all assets of Dynatrace LLC, a wholly owned subsidiary of the Company, including a pledge of the capital stock and other equity interests of certain subsidiaries. Under certain circumstances, the guarantees may be released without action by, or consent of, the administrative agent of the Credit Facility. The Credit Facility contains customary affirmative and negative covenants, including financial covenants that require the Company to maintain specified financial ratios. At March 31, 2024, the Company was in compliance with all applicable covenants. Former first lien credit facilities The Company’s former First Lien Credit Agreement, as amended, provided 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 included a $25.0 million letter of credit sub-facility. Borrowings under the First Lien Term Loan and the Revolving Facility bore 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 maturity date on the First Lien Term Loan and Revolving Facility was August 23, 2025 and August 23, 2023, respectively, with payment due in full on the maturity date. The incurred debt issuance costs and original issuance discount are recorded as a reduction of the debt balance in the consolidated balance sheets and were amortized into interest expense over the term of the loans. The Company recognized $1.4 million, and $2.0 million of amortization of debt issuance costs and original issuance discount for the years ended March 31, 2023 and 2022, respectively, which is included in the accompanying consolidated statements of operations. During the year ended March 31, 2023, the Company terminated the First Lien Credit Agreement and repaid all outstanding borrowings, including accrued interest. The Company recognized a loss on debt extinguishment of $5.9 million within “Interest income (expense), net” in the consolidated statements of operations for the year ended March 31, 2023. Interest expense For the years ended March 31, 2024, 2023, and 2022, the Company recognized $1.4 million, $8.6 million, and $10.4 million in interest expense and amortization of debt issuance costs and original issuance discount, respectively. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space under non-cancelable operating leases which expire at various dates fro m fiscal 2025 to 2033. A s of March 31, 2024, the weighted average remaining lease term was 5.8 years and the weighted average discount rate was 4.5%. 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, w as $2.3 million for the years ended March 31, 2024 and 2023, and $2.5 million for the year ended March 31, 2022. The following table presents information about leases on the consolidated statements of operations (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Operating lease expense (1) $ 15,522 $ 12,908 $ 10,899 Short-term lease expense $ 2,033 $ 1,847 $ 1,009 Variable lease expense $ 1,585 $ 891 $ 793 _________________ (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, 2024 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 18,908 $ 16,098 $ 13,466 Operating lease assets obtained in exchange for new operating lease liabilities $ 10,470 $ 24,323 $ 29,112 As of March 31, 2024, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2025 $ 18,020 2026 14,602 2027 13,154 2028 8,846 2029 6,719 Thereafter 16,595 Total operating lease payments (1) 77,936 Less: imputed interest (8,410) Total operating lease liabilities $ 69,526 _________________ (1) Presented gross of sublease income. As of March 31, 2024, the Company had commitments of $104.4 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use assets or operating lease liabilit |
Leases | Leases The Company leases office space under non-cancelable operating leases which expire at various dates fro m fiscal 2025 to 2033. A s of March 31, 2024, the weighted average remaining lease term was 5.8 years and the weighted average discount rate was 4.5%. 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, w as $2.3 million for the years ended March 31, 2024 and 2023, and $2.5 million for the year ended March 31, 2022. The following table presents information about leases on the consolidated statements of operations (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Operating lease expense (1) $ 15,522 $ 12,908 $ 10,899 Short-term lease expense $ 2,033 $ 1,847 $ 1,009 Variable lease expense $ 1,585 $ 891 $ 793 _________________ (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, 2024 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 18,908 $ 16,098 $ 13,466 Operating lease assets obtained in exchange for new operating lease liabilities $ 10,470 $ 24,323 $ 29,112 As of March 31, 2024, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2025 $ 18,020 2026 14,602 2027 13,154 2028 8,846 2029 6,719 Thereafter 16,595 Total operating lease payments (1) 77,936 Less: imputed interest (8,410) Total operating lease liabilities $ 69,526 _________________ (1) Presented gross of sublease income. As of March 31, 2024, the Company had commitments of $104.4 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use assets or operating lease liabilit |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal matters The Company is, from time to time, party to legal proceedings and subject to claims in the ordinary course of business. Although the outcome of legal proceedings and claims cannot be predicted with certainty, the Company currently believes that the resolution of any such matters will not have a material adverse effect on its business, operating results, financial condition, or cash flows. Contractual commitments The following table summarizes the Company’s contractual commitments as of March 31, 2024 (in thousands): Total Operating lease payments (1) $ 182,295 Other commitments 239,121 Total contractual commitments $ 421,416 _________________ (1) Presented gross of sublease income and includes commitments for operating leases that have not yet commenced. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Mar. 31, 2024 | |
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 (the “2019 Plan”) which was subsequently approved by the Company’s stockholders and was later amended and restated by the Board in January 2021. The Company initially reserved 52,000,000 shares of common stock 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 automatically increases each April 1 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, 2024, 49,844,520 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 three two three The following table summarizes the components of total share-based compensation expense included in the consolidated statements of operations for each period presented (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 26,622 $ 18,383 $ 12,863 Research and development 69,543 41,406 21,316 Sales and marketing 65,762 51,147 35,957 General and administrative 46,969 35,938 29,400 Total share-based compensation expense $ 208,896 $ 146,874 $ 99,536 The total income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements was $64.1 million, $38.1 million, and $43.1 million for the years ended March 31, 2024, 2023, and 2022, respectively. Stock options The following table summarizes activity for stock options during the period ended March 31, 2024: 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, 2023 4,636 $ 22.25 6.5 $ 94,565 Exercised (1,500) 20.79 Forfeited or expired (73) 39.64 Balance, March 31, 2024 3,063 $ 22.56 5.6 $ 73,903 Options vested and expected to vest at March 31, 2024 3,063 $ 22.56 5.6 $ 73,903 Options vested and exercisable at March 31, 2024 2,936 $ 21.82 5.6 $ 72,848 The weighted average grant date fair value of options granted during fiscal 2022 was $20.90. There were no options granted during fiscal 2024 and 2023. The aggregate intrinsic value of options exercised during fiscal 2024, 2023, and 2022 was $46.1 million, $37.9 million, and $52.6 million, respectively. The grant date fair value of options vested during fiscal 2024, 2023, and 2022 was $9.1 million, $16.7 million, and $23.1 million, respectively. As of March 31, 2024, the total unrecognized compensation expense related to non-vested stock options was $1.4 million and is expected to be recognized over a weighted average period of 0.5 years. The fair value for the Company’s stock options granted during the year ended March 31, 2022 was estimated at the date of grant using a Black-Scholes option-pricing model using the following assumptions: Expected dividend yield — Expected volatility 39.5% - 39.8% Expected term (years) 6.1 Risk-free interest rate 0.9% - 1.1% 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 RSAs and RSUs for the year ended March 31, 2024: 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, 2023 4 $ 16.00 8,836 $ 41.76 Granted 142 49.05 6,193 51.60 Vested (4) 16.00 (4,376) 40.69 Forfeited — — (801) 44.83 Balance, March 31, 2024 142 $ 49.05 9,852 $ 48.17 RSUs outstanding as of March 31, 2024 were comprised of 8.9 million RSUs with only service conditions and 0.9 million RSUs with both service and performance conditions (“PSUs”). During the year ended March 31, 2024, the Company granted PSUs to certain key employees that generally vest 33% one year after the grant date and the remaining 67% vest ratably on a quarterly basis over the following two 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 ended March 31, 2024. No 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 200% of the target award. The weighted average grant-date fair value of RSUs granted during fiscal 2023, and 2022 was $40.42 and $50.19, respectively. There were no RSAs granted during the years ended March 31, 2023, and 2022. The aggregate fair value of RSAs vested during fiscal 2024, 2023, and 2022 was $0.2 million, $6.8 million, and $27.7 million, respectively. The aggregate fair value of RSUs vested during fiscal 2024, 2023, and 2022 was $220.3 million, $82.1 million, and $72.2 million, respectively. As of March 31, 2024, the total unrecognized compensation expense related to unvested RSAs is $8.7 million and is expected to be recognized over a weighted average period of 2.9 years. As of March 31, 2024, the total unrecognized compensation expense related to unvested RSUs was $375.4 million and is expected to be recognized over a weighted average period of 2.1 years. Employee Stock Purchase Plan In July 2019, the board of directors adopted, and the Company’s stockholders approved, the 2019 Employee Stock Purchase Plan. The Company offers, sells and issues 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 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 and each offering period consists of six-month purchase periods. On each purchase date, eligible employees 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, 2024, 534,022 shares of common stock were purchased under the ESPP. As of March 31, 2024, 15,865,787 shares of common stock were available for future issuance under the ESPP. As of March 31, 2024, there was approximately $1.2 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 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, 2024 2023 2022 Expected dividend yield — — — Expected volatility 32.2% - 51.6% 35.4% - 64.3% 35.4% - 40.6% Expected term (years) 0.5 0.5 0.5 Risk-free interest rate 4.7% - 5.4% 0.1% - 4.7% 0.04% - 0.1% The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. Beginning in May 2022, the expected volatility is based on the historical volatility of the Company’s common stock. Prior to May 2022, the computation of expected volatility was based on a calculation using the historical volatility of a group of publicly traded peer companies. 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. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Fiscal Year Ended March 31, 2024 2023 2022 Numerator: Net income $ 154,632 $ 107,959 $ 52,451 Denominator: Weighted average shares outstanding, basic 294,051 287,700 284,161 Dilutive effect of share-based awards 5,229 3,917 6,742 Weighted average shares outstanding, diluted 299,280 291,617 290,903 Net income per share, basic $ 0.53 $ 0.38 $ 0.18 Net income per share, diluted $ 0.52 $ 0.37 $ 0.18 The effect of certain common share equivalents were excluded from the computation of weighted average diluted shares outstanding for the years ended March 31, 2024, 2023, and 2022 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, 2024 2023 2022 Stock options 130 952 170 Unvested RSAs and RSUs 203 776 119 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The 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 Internal Revenue 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 and as of January 2024 a non-qualified deferred compensation plan to certain eligible employees. For the years ended March 31, 2024, 2023, and 2022, the Company made contributions of $7.0 million, $6.3 million and $4.6 million to the U.S. 401(k) Plan, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Mar. 31, 2024 | |
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. Long-lived assets, net The following table present the Company’s net long-lived assets, which consists of property and equipment, net, and operating lease right-of-use asset, net, by geographic region for the periods presented (in thousands): March 31, 2024 2023 North America $ 35,339 $ 43,010 Europe, Middle East and Africa 73,892 71,957 Asia Pacific 5,041 6,525 Latin America 443 158 Total long-lived assets, net $ 114,715 $ 121,650 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 15, 2024, the Company announced that its board of directors authorized a share repurchase program for up to $500 million of common stock. The share repurchase program has no time limit, does not obligate the Company to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net income | $ 154,632 | $ 107,959 | $ 52,451 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 shares | Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Jim Benson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On February 15, 2024, Jim Benson, Executive Vice President, Chief Financial Officer and Treasurer, terminated a Rule 10b5-1 trading arrangement that he previously adopted with respect to the sale of 62,993 shares of the Company’s common stock issuable to him upon vesting of time-based restricted stock units. Mr. Benson’s trading arrangement was adopted on August 16, 2023 and was scheduled to expire on September 30, 2024 (or earlier, if all transactions under the trading arrangement were completed). As of the date of termination of his trading arrangement, Mr. Benson sold 35,996 shares under its terms. Proceeds from sales under Mr. Benson’s trading arrangement were used to cover taxes, including applicable withholding taxes at the time of vesting, in accordance with the Company’s mandatory sell to cover policy. Mr. Benson terminated the trading arrangement in connection with the Company’s adoption of net settlement for restricted stock units for its officers (as defined in Rule 16a-1(f) of the Exchange Act), pursuant to which the Company now withholds shares to cover applicable withholding taxes at the time of vesting. | |
Name | Jim Benson | |
Title | Executive Vice President, Chief Financial Officer and Treasurer | |
Adoption Date | August 16, 2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | February 15, 2024 | |
Aggregate Available | 62,993 | 62,993 |
Stephen Lifshatz [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On March 1, 2024, Stephen Lifshatz, a director of the Company, adopted a Rule 10b5-1 trading arrangement that contemplates the sale of up to 10,000 shares of the Company’s common stock. The duration of the trading arrangement is from June 5, 2024 through June 30, 2025 (or earlier, if all transactions under the trading arrangement are completed). | |
Name | Stephen Lifshatz | |
Title | director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | March 1, 2024 | |
Arrangement Duration | 390 days | |
Aggregate Available | 10,000 | 10,000 |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Mar. 31, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Fiscal year | Fiscal year The Company’s fiscal year ends on March 31. References to fiscal 2024, for example, refer to the fiscal year ended March 31, 2024. |
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. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is the U.S. dollar. 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. 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 (expense) income, 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 amounts reported in the consolidated financial statements and accompanying notes. Management evaluates such estimates and assumptions on an ongoing basis. 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 allowance for credit losses, the fair value of assets acquired and liabilities assumed in business combinations, the 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. Management bases these estimates on historical experiences and on various other assumptions that we believe are reasonable. 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 |
Revenue recognition | Revenue recognition The Company sells subscriptions, software licenses, 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 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 (a) subscription services, (b) software licenses, (c) maintenance and support for software licenses, and (d) 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 subscription services or software licenses. The Company has determined that its pricing for subscription services and software licenses 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 Software-as-a-Service (“SaaS”) basis, term-based and perpetual licenses of the Dynatrace platform, as well as maintenance. The when-and-if available updates of the Dynatrace platform, which are part of the maintenance agreement, are critical to the continued utility of the Dynatrace platform; therefore, the Company has determined the Dynatrace platform and the related when-and-if available updates to be a combined performance obligation. Accordingly, when Dynatrace platform 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 platform 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 platform 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. 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 a period of benefit which the Company has estimated to be three years. 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 12 months of the balance sheet date; whereas, long-term deferred revenue represents the unearned revenue that will be earned after 12 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 modifications 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 depreciation of equipment, 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 the Company’s services organization and allocated overhead for depreciation of equipment, facilities and IT. 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 the Thoma Bravo Funds’ acquisition of the Company in 2014, business combinations and asset acquisitions. |
Research and development | Research and development |
Advertising | Advertising |
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 for the lease term and a lease liability represents the Company’s obligation to make payments during the lease term. Right-of-use assets are recognized at the lease commencement date for the lease liability, 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. The discount rate used to determine the present value is the incremental borrowing rate as the implicit rate for the operating leases is generally not determinable. The Company determines the incremental borrowing 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 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 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 risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, investments and accounts receivable. The Company maintains the majority of its cash, cash equivalents and investments with major financial institutions that the Company believes to be of high credit standing. 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 an original maturity of three months or less when purchased are considered cash and cash equivalents. |
Investments | Investments The Company’s investments consist of U.S. treasury securities. These investments are classified as available-for-sale and recorded at fair value in the consolidated balance sheet. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield. Interest income is recognized when earned. |
Accounts receivable, net | Accounts receivable, net |
Property and equipment, net | Property and equipment, net The Company states property and equipment, net, at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. 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 Lesser of 10 years or the lease term |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price of an acquired business over the fair value of the assets acquired and liabilities assumed. Goodwill is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company has elected to first assess the qualitative factors to determine if it is more likely than not that the fair value of the underlying assets is less than its carrying amount. If the Company determines that it is more likely than not that the underlying assets’ fair value is less than its carrying amount in the qualitative analysis, then a quantitative goodwill impairment test will be performed by comparing the fair value of the assets to their carrying value. For the purposes of impairment testing, the Company is evaluated as one reporting unit. Intangible assets consist primarily of customer relationships, developed technology, tradenames and trademarks, all of which have a finite useful life. 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 | Capitalized software Software development costs associated with software developed, acquired or modified for internal use is capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation stages of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. These capitalized costs consist of internal compensation related costs and direct external costs. The amortization period for these capitalized costs is generally three During the year ended March 31, 2024, the Company entered into a license agreement with an application security provider, resulting in $10.3 million of capitalized costs related to software developed for internal use. During the years ended March 31, 2023 and 2022, the Company did not capitalize costs for software developed for internal use. Amortization of software developed for internal use was $0.9 million, $0.2 million, and $0.6 million during the years ended March 31, 2024, 2023 and 2022, respectively, and is recorded within “Cost of subscription” in the consolidated statements of operations. |
Impairment of long-lived assets | Impairment of long-lived assets |
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 consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and income tax bases of assets and liabilities and net operating loss and tax 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. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all of the deferred taxes will not be realized. 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. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line the accompanying consolidated statement of operations. |
Fair value of assets and liabilities | Fair value of assets and liabilities Assets and liabilities recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The hierarchical levels 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. |
Share-based compensation | Share-based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments, including stock options, restricted stock awards (“RSAs”), time-based and performance-based restricted stock units (“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 RSAs and RSUs is determined by the closing price on the date of grant of the Company’s common stock. The Company recognizes share-based compensation expense following the straight-line attribution method over the requisite service period of the entire award for stock options, RSAs 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 based upon the probability that the performance condition will be satisfied. Forfeitures are accounted for in the period in which the awards are forfeited. |
Net income per share | Net income per share |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and application of all segment disclosure requirement to entities with a single reportable segment. ASU 2023-07 is effective for the Company’s fiscal 2025 and interim periods thereafter. The Company is evaluating the impact of the ASU on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in the income tax rate reconciliation table and disaggregates the income taxes paid by jurisdiction. ASU 2023-09 will be effective for the Company’s fiscal 2026. The Company is currently evaluating the impact of the ASU on its income tax disclosures within the consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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 Lesser of 10 years or the lease term The following table summarizes, by major classification, the components of property and equipment (in thousands): March 31, 2024 2023 Computer equipment and software $ 33,591 $ 32,807 Furniture and fixtures 15,334 13,971 Leasehold improvements 45,742 41,496 Other 9,990 6,469 Total property and equipment 104,657 94,743 Less: accumulated depreciation and amortization (51,332) (41,167) Property and equipment, net $ 53,325 $ 53,576 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 2022 Amount % Amount % Amount % North America $ 852,497 60 % $ 690,899 60 % $ 512,946 56 % Europe, Middle East and Africa 354,793 25 % 292,176 25 % 278,902 30 % Asia Pacific 130,611 9 % 111,339 10 % 96,454 10 % Latin America 92,629 6 % 64,116 5 % 41,143 4 % Total revenue $ 1,430,530 $ 1,158,530 $ 929,445 |
Schedule of Capitalized Contract Cost | The following table represents a rollforward of the Company’s deferred commissions (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Beginning balance $ 169,261 $ 126,036 $ 97,624 Additions to deferred commissions 121,100 119,233 89,899 Amortization of deferred commissions (98,116) (76,008) (61,487) Ending balance $ 192,245 $ 169,261 $ 126,036 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The fair value of the purchase price was allocated to the identifiable assets acquired and liabilities assumed as of the acquisition date, with the excess recorded to goodwill as shown below (in thousands). Assets acquired: Cash and cash equivalents $ 1,152 Accounts receivable, prepaid and other assets 342 Property and equipment 46 Intangible asset 7,800 Total assets acquired $ 9,340 Liabilities assumed: Accounts payable, accrued and other liabilities 2,242 Deferred revenue 1,064 Total liabilities assumed $ 3,306 Net assets acquired 6,034 Fair value of consideration transferred 33,407 Goodwill $ 27,373 The fair value of the purchase price was allocated to the identifiable assets acquired and assumed acquired as of the acquisition date, with the excess recorded to goodwill as shown below (in thousands). Assets acquired: Cash and cash equivalents $ 1,224 Accounts receivable, prepaid and other assets 883 Property and equipment 50 Intangible assets 7,500 Other non-current assets 436 Total assets acquired $ 10,093 Liabilities assumed: Accounts payable, accrued and other liabilities 582 Deferred revenue 5,132 Other non-current liabilities 1,229 Total liabilities assumed $ 6,943 Net assets acquired 3,150 Fair value of consideration transferred 28,390 Goodwill $ 25,240 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Debt Securities, Available-for-Sale | The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our available-for-sale investments, including those securities classified within “Cash and cash equivalents” in the consolidated balance sheets (in thousands): March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities $ 149,978 $ — $ (229) $ 149,749 |
Investments Classified by Contractual Maturity Date | As of March 31, 2024, the fair values of available-for-sale investments, excluding those securities classified within “Cash and cash equivalents” in the consolidated balance sheets, by remaining contractual maturity are as follows (in thousands): Due within one year $ 57,891 Due in one year through five years 46,248 Total $ 104,139 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the Company’s financial assets that have been measured at fair value on a recurring basis as of March 31, 2024 and 2023, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 477,102 $ — $ — $ 477,102 U.S. treasury securities — 45,610 — 45,610 Investments: Mutual funds 102 — — 102 U.S. treasury securities — 104,139 — 104,139 Total financial assets $ 477,204 $ 149,749 $ — $ 626,953 March 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 338,746 $ — $ — $ 338,746 Total financial assets $ 338,746 $ — $ — $ 338,746 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Prepaid expenses $ 46,435 $ 30,014 Income taxes refundable 10,839 3,546 Other 9,475 3,729 Prepaid expenses and other current assets $ 66,749 $ 37,289 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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 Lesser of 10 years or the lease term The following table summarizes, by major classification, the components of property and equipment (in thousands): March 31, 2024 2023 Computer equipment and software $ 33,591 $ 32,807 Furniture and fixtures 15,334 13,971 Leasehold improvements 45,742 41,496 Other 9,990 6,469 Total property and equipment 104,657 94,743 Less: accumulated depreciation and amortization (51,332) (41,167) Property and equipment, net $ 53,325 $ 53,576 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill on a consolidated basis for fiscal 2024 consists of the following (in thousands): March 31, 2024 Balance, beginning of year $ 1,281,812 Goodwill from acquisitions 52,613 Foreign currency impact 1,069 Balance, end of year $ 1,335,494 |
Schedule of Intangible Assets | Intangible assets, net, excluding goodwill, consists of the following (in thousands): Weighted Average Useful Life (in months) March 31, 2024 2023 Capitalized software 103 $ 218,529 $ 191,863 Customer relationships 120 351,756 351,555 Trademarks and tradenames 120 55,003 55,003 Total intangible assets 625,288 598,421 Less: accumulated amortization (574,293) (534,822) Total intangible assets, net $ 50,995 $ 63,599 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2024, the estimated future amortization expense of the Company’s intangible assets is as follows (in thousands): Fiscal Year Ended March 31, 2025 2026 2027 2028 2029 Thereafter Capitalized software $ 15,245 $ 4,622 $ 4,622 $ 4,622 $ 3,761 $ 4,437 Customer relationships 10,523 50 50 46 — — Trademarks and tradenames 3,017 — — — — — Total amortization $ 28,785 $ 4,672 $ 4,672 $ 4,668 $ 3,761 $ 4,437 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income (loss) before income taxes includes the following (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Domestic $ 82,033 $ 63,869 $ (2,977) Foreign 72,882 26,098 74,636 Total $ 154,915 $ 89,967 $ 71,659 |
Schedule of Income Tax Provision | The income tax provision includes the following (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Current tax position: Federal $ 44,568 $ 11,947 $ 8,290 State (6,236) 8,071 2,257 Foreign 21,839 15,335 21,406 Total current tax position 60,171 35,353 31,953 Deferred tax provision: Federal (52,712) (50,345) (1,341) State (3,500) (1,689) — Foreign (3,676) (1,311) (11,404) Total deferred tax provision (59,888) (53,345) (12,745) Total income tax expense (benefit) $ 283 $ (17,992) $ 19,208 |
Schedule of Tax Rate Reconciliation | The Company’s income tax (benefit) differs from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended March 31, 2024, 2023 and 2022 to pre-tax income, as a result of the following (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Income tax expense at U.S. federal statutory income tax rate $ 32,532 $ 18,893 $ 15,048 State and local tax expense (benefit) 306 1,421 (3,065) Foreign tax rate differential 3,318 1,770 3,181 U.S. effects of foreign branch income 8,662 1,519 11,016 Non-deductible expenses 1,742 1,216 898 Tax credits (41,740) (26,457) (27,983) GILTI inclusion and FDII deduction (13,905) (10,938) (2,708) Employee compensation (7,188) 5,528 (17,180) Changes in uncertain tax positions (14,835) 10,978 501 Changes in valuation allowance 13,080 (32,629) 32,026 Foreign withholding tax 18,469 12,598 9,312 Effects of changes in tax laws (186) 382 (859) Inflation and currency related adjustments 851 (1,518) (592) Other adjustments (823) (755) (387) Total income tax expense (benefit) $ 283 $ (17,992) $ 19,208 |
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, 2024 2023 Deferred tax assets: Deferred revenue $ 26,088 $ 22,639 Capitalized research and development costs 106,836 51,933 Accrued expenses 20,284 12,714 Share-based compensation 28,518 28,831 Lease liabilities 14,892 15,286 Net operating loss carryforwards 10,998 4,216 Other tax carryforwards, primarily foreign tax credits 29,822 21,853 Other 3,070 7,726 Total deferred tax assets 240,508 165,198 Valuation allowance (40,530) (23,608) Total deferred tax assets, net valuation allowance 199,978 141,590 Deferred tax liabilities: Intangible assets 12,880 17,953 Right-of-use assets 12,826 13,466 Deferred commissions 33,798 28,039 Other 2,651 2,590 Total deferred tax liabilities 62,155 62,048 Net deferred tax assets $ 137,823 $ 79,542 |
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, 2024, 2023, and 2022 (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Gross unrecognized tax benefit, beginning of year $ 29,110 $ 15,017 $ 15,075 Gross increases to tax positions for prior periods 721 16,471 222 Gross decreases to tax positions for prior periods (4,277) (808) — Decreases related to settlements (168) (625) — Decreases due to lapse of statutes of limitations (11,689) (832) (313) Foreign currency translation $ (29) $ (113) $ 33 Gross unrecognized tax benefit, end of year $ 13,668 $ 29,110 $ 15,017 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses, current consists of the following (in thousands): March 31, 2024 2023 Accrued employee - related expenses $ 127,100 $ 105,990 Accrued tax liabilities 45,234 29,122 Income taxes payable 18,741 18,603 Other 42,600 34,665 Total accrued expenses, current $ 233,675 $ 188,380 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 2022 Operating lease expense (1) $ 15,522 $ 12,908 $ 10,899 Short-term lease expense $ 2,033 $ 1,847 $ 1,009 Variable lease expense $ 1,585 $ 891 $ 793 _________________ (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, 2024 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 18,908 $ 16,098 $ 13,466 Operating lease assets obtained in exchange for new operating lease liabilities $ 10,470 $ 24,323 $ 29,112 |
Schedule of Maturities of Lease Liabilities | As of March 31, 2024, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Amount 2025 $ 18,020 2026 14,602 2027 13,154 2028 8,846 2029 6,719 Thereafter 16,595 Total operating lease payments (1) 77,936 Less: imputed interest (8,410) Total operating lease liabilities $ 69,526 _________________ (1) Presented gross of sublease income. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Contractual Commitments | The following table summarizes the Company’s contractual commitments as of March 31, 2024 (in thousands): Total Operating lease payments (1) $ 182,295 Other commitments 239,121 Total contractual commitments $ 421,416 _________________ (1) Presented gross of sublease income and includes commitments for operating leases that have not yet commenced. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The following table summarizes the components of total share-based compensation expense included in the consolidated statements of operations for each period presented (in thousands): Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 26,622 $ 18,383 $ 12,863 Research and development 69,543 41,406 21,316 Sales and marketing 65,762 51,147 35,957 General and administrative 46,969 35,938 29,400 Total share-based compensation expense $ 208,896 $ 146,874 $ 99,536 |
Schedule of Activity for Stock Options | The following table summarizes activity for stock options during the period ended March 31, 2024: 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, 2023 4,636 $ 22.25 6.5 $ 94,565 Exercised (1,500) 20.79 Forfeited or expired (73) 39.64 Balance, March 31, 2024 3,063 $ 22.56 5.6 $ 73,903 Options vested and expected to vest at March 31, 2024 3,063 $ 22.56 5.6 $ 73,903 Options vested and exercisable at March 31, 2024 2,936 $ 21.82 5.6 $ 72,848 |
Schedule of Fair value Assumptions for Stock Options | The fair value for the Company’s stock options granted during the year ended March 31, 2022 was estimated at the date of grant using a Black-Scholes option-pricing model using the following assumptions: Expected dividend yield — Expected volatility 39.5% - 39.8% Expected term (years) 6.1 Risk-free interest rate 0.9% - 1.1% |
Schedule of Restricted Stock Activity | The following table provides a summary of the changes in the number of RSAs and RSUs for the year ended March 31, 2024: 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, 2023 4 $ 16.00 8,836 $ 41.76 Granted 142 49.05 6,193 51.60 Vested (4) 16.00 (4,376) 40.69 Forfeited — — (801) 44.83 Balance, March 31, 2024 142 $ 49.05 9,852 $ 48.17 |
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, 2024 2023 2022 Expected dividend yield — — — Expected volatility 32.2% - 51.6% 35.4% - 64.3% 35.4% - 40.6% Expected term (years) 0.5 0.5 0.5 Risk-free interest rate 4.7% - 5.4% 0.1% - 4.7% 0.04% - 0.1% |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
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 per share (in thousands, except per share data): Fiscal Year Ended March 31, 2024 2023 2022 Numerator: Net income $ 154,632 $ 107,959 $ 52,451 Denominator: Weighted average shares outstanding, basic 294,051 287,700 284,161 Dilutive effect of share-based awards 5,229 3,917 6,742 Weighted average shares outstanding, diluted 299,280 291,617 290,903 Net income per share, basic $ 0.53 $ 0.38 $ 0.18 Net income per share, diluted $ 0.52 $ 0.37 $ 0.18 |
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, 2024 2023 2022 Stock options 130 952 170 Unvested RSAs and RSUs 203 776 119 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Long-lived Assets by Geographical Region | The following table present the Company’s net long-lived assets, which consists of property and equipment, net, and operating lease right-of-use asset, net, by geographic region for the periods presented (in thousands): March 31, 2024 2023 North America $ 35,339 $ 43,010 Europe, Middle East and Africa 73,892 71,957 Asia Pacific 5,041 6,525 Latin America 443 158 Total long-lived assets, net $ 114,715 $ 121,650 |
Significant Accounting Polici_4
Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Mar. 31, 2024 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Significant Accounting Polici_5
Significant Accounting Policies - Revenue Recognition (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Estimated term to defer sales commissions | 3 years | ||
Impairment losses recorded on deferred commissions | $ 0 | $ 0 | $ 0 |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 60 days |
Significant Accounting Polici_6
Significant Accounting Policies - Advertising (Details) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 37.7 | $ 36.2 | $ 49.9 |
Significant Accounting Polici_7
Significant Accounting Policies - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Accounting Policies [Abstract] | ||
Allowance for credit losses | $ 4.5 | $ 3.8 |
Significant Accounting Polici_8
Significant Accounting Policies - Property and Equipment (Details) | Mar. 31, 2024 |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
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 years |
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 Polici_9
Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) | 12 Months Ended | ||
Mar. 31, 2024 USD ($) unit | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | |||
Number of reporting units | unit | 1 | ||
Impairment of goodwill and other intangible asset | $ | $ 0 | $ 0 | $ 0 |
Significant Accounting Polic_10
Significant Accounting Policies - Capitalized Software (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized costs for software development | $ 10,300,000 | $ 0 | $ 0 |
Amortization of capitalized software | $ 900,000 | $ 200,000 | $ 600,000 |
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_11
Significant Accounting Policies - Impairment of Long-lived Assets (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | |||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 1,430,530 | $ 1,158,530 | $ 929,445 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 852,497 | $ 690,899 | $ 512,946 |
North America | Geographic Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 60% | 60% | 56% |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 354,793 | $ 292,176 | $ 278,902 |
Europe, Middle East and Africa | Geographic Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 25% | 25% | 30% |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 130,611 | $ 111,339 | $ 96,454 |
Asia Pacific | Geographic Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 9% | 10% | 10% |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 92,629 | $ 64,116 | $ 41,143 |
Latin America | Geographic Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 6% | 5% | 4% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,430,530 | $ 1,158,530 | $ 929,445 |
Revenue recognized | 800,000 | 670,100 | 502,400 |
Remaining performance obligation, amount | 2,422,900 | ||
Contract with customer, asset, after allowance for credit loss | $ 5,200 | 400 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, percentage | 54% | ||
Remaining performance obligation, expected timing of satisfaction, period | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, expected timing of satisfaction, period | |||
Billed Consideration | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, amount | $ 1,050,300 | ||
Unbilled Consideration | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, amount | 1,372,600 | ||
Revenue Benchmark | Geographic Concentration Risk | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 807,700 | $ 652,000 | $ 477,200 |
Concentration risk percentage | 56% | 56% | 51% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Deferred Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Capitalized Contract Cost [Roll Forward] | |||
Beginning balance | $ 169,261 | $ 126,036 | $ 97,624 |
Additions to deferred commissions | 121,100 | 119,233 | 89,899 |
Amortization of deferred commissions | (98,116) | (76,008) | (61,487) |
Ending balance | $ 192,245 | $ 169,261 | $ 126,036 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Mar. 01, 2024 USD ($) | Aug. 31, 2023 USD ($) reporting_unit | Mar. 31, 2024 USD ($) unit | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||
Number of reporting units | unit | 1 | ||||
Total share-based compensation expense | $ 208,896 | $ 146,874 | $ 99,536 | ||
Acquisition of business, net of cash acquired | 57,111 | 0 | 13,195 | ||
Goodwill from acquisitions | 52,613 | ||||
Total intangible assets | $ 625,288 | 598,421 | |||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life of intangible assets acquired | 120 months | ||||
Total intangible assets | $ 351,756 | 351,555 | |||
Capitalized software | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life of intangible assets acquired | 103 months | ||||
Total intangible assets | $ 218,529 | $ 191,863 | |||
Rookout | |||||
Business Acquisition [Line Items] | |||||
Equity interest acquired | 100% | ||||
Cash consideration paid | $ 33,400 | ||||
Number of reporting units | reporting_unit | 1 | ||||
Intangible assets | $ 7,800 | ||||
Transaction costs | 2,900 | ||||
Rookout | Developed Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 7,800 | ||||
Estimated useful life of intangible assets acquired | 7 years | ||||
Runecast | |||||
Business Acquisition [Line Items] | |||||
Equity interest acquired | 100% | ||||
Cash consideration paid | $ 26,100 | ||||
Intangible assets | 7,500 | ||||
Transaction costs | 3,000 | ||||
Deferred cash payments to acquire businesses | $ 2,300 | ||||
Indemnification obligations and post-closing purchase price adjustments payable period | 15 months | ||||
Runecast | RSAs | |||||
Business Acquisition [Line Items] | |||||
Fair value of awards granted to previous owners of acquiree | $ 9,000 | ||||
Total share-based compensation expense | $ 300 | ||||
Runecast | Developed Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 7,300 | ||||
Estimated useful life of intangible assets acquired | 7 years | ||||
Runecast | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 200 | ||||
Estimated useful life of intangible assets acquired | 4 years | ||||
Software Intelligence and Automation Business Entities | Capitalized software | |||||
Business Acquisition [Line Items] | |||||
Acquisition of business, net of cash acquired | 13,200 | ||||
Goodwill from acquisitions | 11,000 | ||||
Total intangible assets | $ 2,600 | ||||
Estimated useful live of acquired intangibles | 9 years |
Business Combinations - Schedul
Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 01, 2024 | Aug. 31, 2023 | Mar. 31, 2023 |
Liabilities assumed: | ||||
Goodwill | $ 1,335,494 | $ 1,281,812 | ||
Rookout | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 1,152 | |||
Accounts receivable, prepaid and other assets | 342 | |||
Property and equipment | 46 | |||
Intangible assets | 7,800 | |||
Total assets acquired | 9,340 | |||
Liabilities assumed: | ||||
Accounts payable, accrued and other liabilities | 2,242 | |||
Deferred revenue | 1,064 | |||
Total liabilities assumed | 3,306 | |||
Net assets acquired | 6,034 | |||
Fair value of consideration transferred | 33,407 | |||
Goodwill | $ 27,373 | |||
Runecast | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 1,224 | |||
Accounts receivable, prepaid and other assets | 883 | |||
Property and equipment | 50 | |||
Intangible assets | 7,500 | |||
Other non-current assets | 436 | |||
Total assets acquired | 10,093 | |||
Liabilities assumed: | ||||
Accounts payable, accrued and other liabilities | 582 | |||
Deferred revenue | 5,132 | |||
Other non-current liabilities | 1,229 | |||
Total liabilities assumed | 6,943 | |||
Net assets acquired | 3,150 | |||
Fair value of consideration transferred | 28,390 | |||
Goodwill | $ 25,240 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Schedule of Unrealized Gain (Loss) on Investments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | $ 104,139 |
U.S. treasury securities | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 104,139 |
U.S. treasury securities | U.S. treasury securities | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 149,978 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (229) |
Fair Value | $ 149,749 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Schedule of Debt Securities, Available-for-Sale (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Fair Value Disclosures [Abstract] | |
Due within one year | $ 57,891 |
Due in one year through five years | 46,248 |
Total | $ 104,139 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements- Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||
Investments held and classified as restricted trading securities | $ 104,139 | ||
Interest income from cash, cash equivalents, and investments | 38,700 | $ 11,100 | $ 200 |
Mutual funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments held and classified as restricted trading securities | $ 102 |
Investments and Fair Value Me_6
Investments and Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | $ 104,139 | |
Total financial assets | 626,953 | $ 338,746 |
Mutual funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 102 | |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 104,139 | |
Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | 477,102 | 338,746 |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | 45,610 | |
U.S. treasury securities | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 149,749 | |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total financial assets | 477,204 | 338,746 |
Level 1 | Mutual funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 102 | |
Level 1 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 0 | |
Level 1 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | 477,102 | 338,746 |
Level 1 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | 0 | |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total financial assets | 149,749 | 0 |
Level 2 | Mutual funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 0 | |
Level 2 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 104,139 | |
Level 2 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | 0 | 0 |
Level 2 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | 45,610 | |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total financial assets | 0 | 0 |
Level 3 | Mutual funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 0 | |
Level 3 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investments: | 0 | |
Level 3 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | 0 | $ 0 |
Level 3 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents: | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 46,435 | $ 30,014 |
Income taxes refundable | 10,839 | 3,546 |
Other | 9,475 | 3,729 |
Prepaid expenses and other current assets | $ 66,749 | $ 37,289 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Estimated Useful Lives of the Company's Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 104,657 | $ 94,743 |
Less: accumulated depreciation and amortization | (51,332) | (41,167) |
Property and equipment, net | 53,325 | 53,576 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 33,591 | 32,807 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 15,334 | 13,971 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 45,742 | 41,496 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 9,990 | $ 6,469 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 15,499 | $ 12,541 | $ 10,638 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of year | $ 1,281,812 |
Goodwill from acquisitions | 52,613 |
Foreign currency impact | 1,069 |
Balance, end of year | $ 1,335,494 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 625,288 | $ 598,421 |
Less: accumulated amortization | (574,293) | (534,822) |
Total intangible assets, net | $ 50,995 | 63,599 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in months) | 103 months | |
Total intangible assets | $ 218,529 | 191,863 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (in months) | 120 months | |
Total intangible assets | $ 351,756 | 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 Intangible Asset_5
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other intangibles | $ 39.4 | $ 42.1 | $ 46.2 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Schedule of Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2025 | $ 28,785 |
2026 | 4,672 |
2027 | 4,672 |
2028 | 4,668 |
2029 | 3,761 |
Thereafter | 4,437 |
Capitalized software | |
Finite-Lived Intangible Assets [Line Items] | |
2025 | 15,245 |
2026 | 4,622 |
2027 | 4,622 |
2028 | 4,622 |
2029 | 3,761 |
Thereafter | 4,437 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
2025 | 10,523 |
2026 | 50 |
2027 | 50 |
2028 | 46 |
2029 | 0 |
Thereafter | 0 |
Trademarks and tradenames | |
Finite-Lived Intangible Assets [Line Items] | |
2025 | 3,017 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029 | 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, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 82,033 | $ 63,869 | $ (2,977) |
Foreign | 72,882 | 26,098 | 74,636 |
Income before income taxes | $ 154,915 | $ 89,967 | $ 71,659 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Current tax position: | |||
Federal | $ 44,568 | $ 11,947 | $ 8,290 |
State | (6,236) | 8,071 | 2,257 |
Foreign | 21,839 | 15,335 | 21,406 |
Total current tax position | 60,171 | 35,353 | 31,953 |
Deferred tax provision: | |||
Federal | (52,712) | (50,345) | (1,341) |
State | (3,500) | (1,689) | 0 |
Foreign | (3,676) | (1,311) | (11,404) |
Total deferred tax provision | (59,888) | (53,345) | (12,745) |
Total income tax expense (benefit) | $ 283 | $ (17,992) | $ 19,208 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax rate | 21% | 21% | 21% |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense at U.S. federal statutory income tax rate | $ 32,532 | $ 18,893 | $ 15,048 |
State and local tax expense (benefit) | 306 | 1,421 | (3,065) |
Foreign tax rate differential | 3,318 | 1,770 | 3,181 |
U.S. effects of foreign branch income | 8,662 | 1,519 | 11,016 |
Non-deductible expenses | 1,742 | 1,216 | 898 |
Tax credits | (41,740) | (26,457) | (27,983) |
GILTI inclusion and FDII deduction | (13,905) | (10,938) | (2,708) |
Employee compensation | (7,188) | 5,528 | (17,180) |
Changes in uncertain tax positions | (14,835) | 10,978 | 501 |
Changes in valuation allowance | 13,080 | (32,629) | 32,026 |
Foreign withholding tax | 18,469 | 12,598 | 9,312 |
Effects of changes in tax laws | (186) | 382 | (859) |
Inflation and currency related adjustments | 851 | (1,518) | (592) |
Other adjustments | (823) | (755) | (387) |
Total income tax expense (benefit) | $ 283 | $ (17,992) | $ 19,208 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ 40,530 | $ 23,608 | ||
Net change in valuation allowance | 16,900 | |||
Net operating loss carryforwards | 10,998 | 4,216 | ||
Gross unrecognized tax benefits | 13,668 | 29,110 | $ 15,017 | $ 15,075 |
Net interest and penalties payable associated with uncertain tax positions | 1,100 | 2,500 | ||
Interest and penalties recognized | 1,400 | $ (1,000) | $ (600) | |
Decrease in unrecognized tax benefits is reasonably possible | 3,000 | |||
U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 32,100 | |||
Net operating loss carryforwards | 35,900 | |||
Net operating loss carryforwards, subject to expiration | 33,000 | |||
Indefinite net operating losses | 2,900 | |||
Tax credit carryforwards, subject to expiration | 29,200 | |||
Deferred tax assets, gross, subject to valuation allowance | 28,800 | |||
Non-U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 8,400 | |||
Net operating loss carryforwards | 44,500 | |||
Tax credit carryforwards | $ 500 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Net Deferred Tax Assets | ||
Deferred revenue | $ 26,088 | $ 22,639 |
Capitalized research and development costs | 106,836 | 51,933 |
Accrued expenses | 20,284 | 12,714 |
Share-based compensation | 28,518 | 28,831 |
Lease liabilities | 14,892 | 15,286 |
Net operating loss carryforwards | 10,998 | 4,216 |
Other tax carryforwards, primarily foreign tax credits | 29,822 | 21,853 |
Other | 3,070 | 7,726 |
Total deferred tax assets | 240,508 | 165,198 |
Valuation allowance | (40,530) | (23,608) |
Total deferred tax assets, net valuation allowance | 199,978 | 141,590 |
Net Deferred Tax Liabilities | ||
Intangible assets | 12,880 | 17,953 |
Right-of-use assets | 12,826 | 13,466 |
Deferred commissions | 33,798 | 28,039 |
Other | 2,651 | 2,590 |
Total deferred tax liabilities | 62,155 | 62,048 |
Net deferred tax assets | $ 137,823 | $ 79,542 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefit, beginning of year | $ 29,110 | $ 15,017 | $ 15,075 |
Gross increases to tax positions for prior periods | 721 | 16,471 | 222 |
Gross decreases to tax positions for prior periods | (4,277) | (808) | 0 |
Decreases related to settlements | (168) | (625) | 0 |
Decreases due to lapse of statutes of limitations | (11,689) | (832) | (313) |
Foreign currency translation | (29) | (113) | |
Foreign currency translation | 33 | ||
Gross unrecognized tax benefit, end of year | $ 13,668 | $ 29,110 | $ 15,017 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Accrued Expenses, Current | ||
Accrued employee - related expenses | $ 127,100 | $ 105,990 |
Accrued tax liabilities | 45,234 | 29,122 |
Income taxes payable | 18,741 | 18,603 |
Other | 42,600 | 34,665 |
Total accrued expenses, current | $ 233,675 | $ 188,380 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | 12 Months Ended | |||
Dec. 02, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Line of Credit Facility [Line Items] | ||||
Loss on extinguishment of debt | $ 0 | $ 5,925,000 | $ 0 | |
Interest expense and amortization of debt issuance costs and original issuance discount | 1,400,000 | 8,600,000 | 10,400,000 | |
Line of Credit | Revolving Credit Facility | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 400,000,000 | |||
Long-term line of credit | 0 | 0 | ||
Available borrowing capacity | 399,200,000 | 384,500,000 | ||
Fronting fee percentage | 0.125% | |||
Debt issuance costs, gross | $ 1,900,000 | |||
Debt issuance costs | 1,400,000 | 1,800,000 | ||
Line of Credit | Revolving Credit Facility | Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.175% | |||
Line of Credit | Revolving Credit Facility | Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.35% | |||
Line of Credit | Revolving Credit Facility | Credit Facility | Secured Overnight Financing Rate (SOFR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate | 0.10% | |||
Line of Credit | Revolving Credit Facility | Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 60,000,000 | |||
Line of Credit | Bridge Loan | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 30,000,000 | |||
Line of Credit | Letter of Credit | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | 45,000,000 | |||
Line of Credit | Letter of Credit | Revolving Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 25,000,000 | |||
Letters of credit issued | 800,000 | 15,500,000 | ||
Line of Credit | Foreign Line of Credit | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 | |||
Secured Debt | First Lien Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 950,000,000 | |||
Amortization of debt issuance costs and original issuance discount | 1,400,000 | $ 2,000,000 | ||
Loss on extinguishment of debt | $ 5,900,000 | |||
Secured Debt | First Lien Term Loan | Alternative Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate | 1.25% | |||
Secured Debt | First Lien Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate | 2.25% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 5 years 9 months 18 days | ||
Weighted average discount rate | 4.50% | ||
Sublease income | $ 2.3 | $ 2.3 | $ 2.5 |
Operating lease that has not yet commenced | $ 104.4 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease that has not yet commenced, term | 2 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, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | |||
Operating lease expense | $ 15,522 | $ 12,908 | $ 10,899 |
Short-term lease expense | 2,033 | 1,847 | 1,009 |
Variable lease expense | $ 1,585 | $ 891 | $ 793 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 18,908 | $ 16,098 | $ 13,466 |
Operating lease assets obtained in exchange for new operating lease liabilities | $ 10,470 | $ 24,323 | $ 29,112 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |
2025 | $ 18,020 |
2026 | 14,602 |
2027 | 13,154 |
2028 | 8,846 |
2029 | 6,719 |
Thereafter | 16,595 |
Total operating lease payments | 77,936 |
Less: imputed interest | (8,410) |
Total operating lease liabilities | $ 69,526 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease payments | $ 182,295 |
Other commitments | 239,121 |
Total contractual commitments | $ 421,416 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit recognized on shares-based compensation arrangements | $ 64,100,000 | $ 38,100,000 | $ 43,100,000 | |
Aggregate intrinsic value of options exercised | 46,100,000 | 37,900,000 | 52,600,000 | |
Aggregate fair value of options vested | 9,100,000 | $ 16,700,000 | $ 23,100,000 | |
Total unrecognized compensation expense related to non-vested stock options | $ 1,400,000 | |||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 20.90 | |||
Options granted (in shares) | 0 | 0 | ||
Weighted average period of recognition | 6 months | |||
Expected dividend yield | $ 0 | $ 0 | ||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period of recognition | 2 years 1 month 6 days | |||
RSUs outstanding (in shares) | 9,852,000 | 8,836,000 | ||
Weighted average grant-date fair value of units granted (in dollars per share) | $ 51.60 | $ 40.42 | $ 50.19 | |
Awards granted (in shares) | 6,193,000 | |||
Aggregate fair value of awards/units vested | $ 220,300,000 | $ 82,100,000 | $ 72,200,000 | |
Total unrecognized compensation expense related to unvested awards/units | $ 375,400,000 | |||
Service Condition RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs outstanding (in shares) | 8,900,000 | |||
Service and performance condition RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs outstanding (in shares) | 900,000 | |||
Maximum percentage of shares issued based on performance target award | 2 | |||
RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period of recognition | 2 years 10 months 24 days | |||
RSUs outstanding (in shares) | 142,000 | 4,000 | ||
Weighted average grant-date fair value of units granted (in dollars per share) | $ 49.05 | |||
Awards granted (in shares) | 142,000 | 0 | 0 | |
Aggregate fair value of awards/units vested | $ 200,000 | $ 6,800,000 | $ 27,700,000 | |
Total unrecognized compensation expense related to unvested awards/units | $ 8,700,000 | |||
Shares committed under ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved and available for issuance as a percentage of shares outstanding | 1% | |||
Increase In the number of shares reserved and available for issuance (in 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% | |||
Share-based Payment Arrangement, Tranche One | Service and performance condition RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Vesting percentage | 33% | |||
Share-based Payment Arrangement, Tranche Two | Service and performance condition RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Vesting percentage | 67% | |||
Minimum | Performance-based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Maximum | Performance-based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
2019 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 52,000,000 | 49,844,520 | ||
Annual increase percentage in shares reserved for future issuance based off of shares outstanding | 4% | |||
2019 Plan | Share-based Payment Arrangement, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Vesting percentage | 33% | |||
2019 Plan | Share-based Payment Arrangement, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Vesting percentage | 25% | |||
2019 Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
2019 Plan | Minimum | Share-based Payment Arrangement, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
2019 Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
2019 Plan | Maximum | Share-based Payment Arrangement, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | $ 0 | $ 0 | $ 0 | |
Total unrecognized compensation expense related to unvested awards/units | $ 1,200,000 | |||
ESPP | Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 15,865,787 | |||
Issuance of common stock related to employee stock purchase plan (in shares) | 534,022 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 208,896 | $ 146,874 | $ 99,536 |
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 26,622 | 18,383 | 12,863 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 69,543 | 41,406 | 21,316 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 65,762 | 51,147 | 35,957 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 46,969 | $ 35,938 | $ 29,400 |
Share-based Compensation - Opti
Share-based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Number of Options | ||
Beginning balance (in shares) | 4,636 | |
Exercised (in shares) | (1,500) | |
Forfeited or expired (in shares) | (73) | |
Ending balance (in shares) | 3,063 | 4,636 |
Options vested and expected to vest (in shares) | 3,063 | |
Options vested and exercisable (in shares) | 2,936 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning of period (in dollars per share) | $ 22.25 | |
Exercised (in dollars per share) | 20.79 | |
Forfeited or expired (in dollars per share) | 39.64 | |
Weighted average exercise price, end of period (in dollars per share) | 22.56 | $ 22.25 |
Options vested and expected to vest (in dollars per share) | 22.56 | |
Options vested and exercisable (in dollars per share) | $ 21.82 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term of options outstanding | 5 years 7 months 6 days | 6 years 6 months |
Weighted average remaining contractual term of options vested and expected to vest | 5 years 7 months 6 days | |
Weighted average remaining contractual term of options vested and exercisable | 5 years 7 months 6 days | |
Aggregate intrinsic value of options outstanding | $ 73,903 | $ 94,565 |
Aggregate intrinsic value of options vested and expected to vest | 73,903 | |
Aggregate intrinsic value of options vested and exercisable | $ 72,848 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Fair Value Assumptions (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | $ 0 | $ 0 | $ 0 |
Expected term (years) | 6 months | 6 months | 6 months |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | $ 0 | $ 0 | |
Expected term (years) | 6 years 1 month 6 days | ||
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 32.20% | 35.40% | 35.40% |
Risk-free interest rate | 4.70% | 0.10% | 0.04% |
Minimum | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 39.50% | ||
Risk-free interest rate | 0.90% | ||
Maximum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 51.60% | 64.30% | 40.60% |
Risk-free interest rate | 5.40% | 4.70% | 0.10% |
Maximum | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 39.80% | ||
Risk-free interest rate | 1.10% |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of Restricted Activity (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
RSAs | |||
Number of Awards/Units | |||
Beginning balance (in shares) | 4,000 | ||
Granted (in shares) | 142,000 | 0 | 0 |
Vested (in shares) | (4,000) | ||
Forfeited (in shares) | 0 | ||
Ending balance (in shares) | 142,000 | 4,000 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 16 | ||
Granted (in dollars per share) | 49.05 | ||
Vested (in dollars per share) | 16 | ||
Forfeited (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 49.05 | $ 16 | |
RSUs | |||
Number of Awards/Units | |||
Beginning balance (in shares) | 8,836,000 | ||
Granted (in shares) | 6,193,000 | ||
Vested (in shares) | (4,376,000) | ||
Forfeited (in shares) | (801,000) | ||
Ending balance (in shares) | 9,852,000 | 8,836,000 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 41.76 | ||
Granted (in dollars per share) | 51.60 | $ 40.42 | $ 50.19 |
Vested (in dollars per share) | 40.69 | ||
Forfeited (in dollars per share) | 44.83 | ||
Ending balance (in dollars per share) | $ 48.17 | $ 41.76 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | |||
Net income | $ 154,632 | $ 107,959 | $ 52,451 |
Denominator: | |||
Weighted average shares outstanding, basic (in shares) | 294,051 | 287,700 | 284,161 |
Dilutive effect of share-based awards (in shares) | 5,229 | 3,917 | 6,742 |
Weighted average shares outstanding, diluted (in shares) | 299,280 | 291,617 | 290,903 |
Net income per share, basic (in dollars per share) | $ 0.53 | $ 0.38 | $ 0.18 |
Net income per share, diluted (in dollars per share) | $ 0.52 | $ 0.37 | $ 0.18 |
Net Income Per Share - Antidilu
Net Income Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 130 | 952 | 170 |
Unvested RSAs and RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 203 | 776 | 119 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |||
Employer discretionary contribution amount | $ 7 | $ 6.3 | $ 4.6 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 114,715 | $ 121,650 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 35,339 | 43,010 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 73,892 | 71,957 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | 5,041 | 6,525 |
Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 443 | $ 158 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | May 15, 2024 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Authorized amount of common stock under share repurchase program | $ 500 |