Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | May 12, 2023 | Sep. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | NEXTGEN HEALTHCARE, INC. | ||
Trading Symbol | NXGN | ||
Entity Central Index Key | 0000708818 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2023 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 975,390,000 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity File Number | 001-12537 | ||
Entity Tax Identification Number | 95-2888568 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 65,980,532 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Irvine, California | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement related to the 2023 Annual Shareholders' Meeting to be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended March 31, 2023 are incorporated herein by reference in Part III of this Annual Report on Form 10-K where indicated. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 98,719 | $ 59,829 | |
Restricted cash and cash equivalents | 7,269 | 6,918 | |
Marketable securities | 139,612 | ||
Accounts receivable, net | 88,498 | 76,057 | |
Contract assets | 19,561 | 25,157 | |
Income taxes receivable | 5,248 | 6,507 | |
Prepaid expenses and other current assets | 42,916 | 37,102 | |
Total current assets | 401,823 | 211,570 | |
Equipment and improvements, net | 6,421 | 9,120 | |
Capitalized software costs, net | 54,516 | 43,958 | |
Operating lease assets | 3,335 | 11,316 | |
Deferred income taxes, net | 29,472 | 19,259 | |
Contract assets, net of current | 5,572 | 1,910 | |
Intangibles, net | 28,968 | 24,303 | |
Goodwill | 321,756 | 267,212 | |
Other assets | 44,238 | 39,026 | |
Total assets | 896,101 | 627,674 | |
Current liabilities: | |||
Accounts payable | 12,022 | 9,125 | |
Contract liabilities | 61,601 | 61,280 | |
Accrued compensation and related benefits | 36,241 | 48,736 | |
Income taxes payable | 622 | 99 | |
Operating lease liabilities | 3,826 | 8,089 | |
Other current liabilities | 83,799 | 53,533 | |
Total current liabilities | 198,111 | 180,862 | |
Contract liabilities, net of current | 10,310 | ||
Deferred compensation | 8,033 | 7,230 | |
Convertible senior notes, net, noncurrent | 266,843 | ||
Operating lease liabilities, net of current | 4,095 | 11,934 | |
Other noncurrent liabilities | 8,274 | 4,570 | |
Total liabilities | 495,666 | 204,596 | |
Commitments and contingencies (Note 17) | |||
Shareholders' equity: | |||
Common stock, $0.01 par value; authorized 100,000 shares; 70,875 shares and 69,245 shares issued at March 31, 2023 and March 31, 2022, respectively; 66,026 shares and 67,075 shares outstanding at March 31, 2023 and March 31, 2022, respectively | 709 | 692 | |
Treasury stock, at cost, 4,849 shares and 2,170 shares at March 31, 2023 and March 31, 2022, respectively | (85,752) | (35,874) | |
Additional paid-in capital | 359,342 | 329,917 | |
Accumulated other comprehensive loss | (1,462) | (1,909) | |
Retained earnings | 127,598 | 130,252 | |
Total shareholders' equity | 400,435 | 423,078 | |
Total liabilities and shareholders' equity | $ 896,101 | $ 627,674 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 70,875,000 | 69,245,000 |
Common stock, shares outstanding | 66,026,000 | 67,075,000 |
Treasury stock, shares | 4,849,000 | 2,170,000 |
Consolidated Statements of Net
Consolidated Statements of Net Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | |||
Total revenues | $ 653,172 | $ 596,350 | $ 556,821 |
Cost of revenue: | |||
Amortization of capitalized software costs and acquired intangible assets | 27,941 | 31,889 | 36,768 |
Total cost of revenue | 342,013 | 295,404 | 275,424 |
Gross profit | 311,159 | 300,946 | 281,397 |
Operating expenses: | |||
Selling, general and administrative | 223,424 | 209,661 | 180,529 |
Research and development costs, net | 82,300 | 76,657 | 75,501 |
Amortization of acquired intangible assets | 3,665 | 3,525 | 4,449 |
Impairment of assets | 3,163 | 3,906 | 5,539 |
Restructuring costs | 2,473 | 539 | 2,562 |
Total operating expenses | 315,025 | 294,288 | 268,580 |
Income (loss) from operations | (3,866) | 6,658 | 12,817 |
Interest income | 3,541 | 101 | 38 |
Interest expense | (6,298) | (1,499) | (3,516) |
Other income (expense), net | 10,927 | (64) | (64) |
Income before provision for (benefit of) income taxes | 4,304 | 5,196 | 9,275 |
Provision for (benefit of) income taxes | 6,958 | 3,578 | (240) |
Net income (loss) | (2,654) | 1,618 | 9,515 |
Other comprehensive income: | |||
Foreign currency translation, net of tax | 405 | 15 | 219 |
Unrealized gain on marketable securities, net of tax | 42 | ||
Comprehensive income | $ (2,207) | $ 1,633 | $ 9,734 |
Net income (loss) per share: | |||
Basic | $ (0.04) | $ 0.02 | $ 0.14 |
Diluted | $ (0.04) | $ 0.02 | $ 0.14 |
Weighted-average shares outstanding: | |||
Basic | 67,005 | 67,370 | 66,739 |
Diluted | 67,005 | 67,788 | 66,885 |
Recurring | |||
Revenues: | |||
Total revenues | $ 593,918 | $ 539,713 | $ 502,819 |
Cost of revenue: | |||
Cost of revenue excluding amortization of capitalized software costs and acquired intangible assets | 269,191 | 232,481 | 212,199 |
Software, hardware, and other non-recurring | |||
Revenues: | |||
Total revenues | 59,254 | 56,637 | 54,002 |
Cost of revenue: | |||
Cost of revenue excluding amortization of capitalized software costs and acquired intangible assets | $ 44,881 | $ 31,034 | $ 26,457 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ||
Balance at Mar. 31, 2020 | $ 400,494 | $ 661 | $ 282,857 | $ 119,119 | $ (2,143) | |||
Balance, Shares at Mar. 31, 2020 | 66,134,000 | |||||||
Common stock issued under stock plans, net of shares withheld for taxes | (1,294) | $ 10 | (1,304) | |||||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 935,000 | |||||||
Stock-based compensation | 22,710 | 22,710 | ||||||
Components of other comprehensive income: | ||||||||
Translation adjustments | 219 | 219 | ||||||
Net income (loss) | 9,515 | 9,515 | ||||||
Balance at Mar. 31, 2021 | 431,644 | $ 671 | 304,263 | 128,634 | (1,924) | |||
Balance, Shares at Mar. 31, 2021 | 67,069,000 | |||||||
Common stock issued under stock plans, net of shares withheld for taxes | (877) | $ 21 | (898) | |||||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 2,176,000 | |||||||
Stock-based compensation | 26,552 | 26,552 | ||||||
Repurchase of common stock | [1] | $ (35,874) | $ (35,874) | |||||
Repurchase of common stock, Shares | (2,169,896) | (2,170,000) | [1] | |||||
Components of other comprehensive income: | ||||||||
Translation adjustments | $ 15 | 15 | ||||||
Net income (loss) | 1,618 | 1,618 | ||||||
Balance at Mar. 31, 2022 | 423,078 | $ 692 | (35,874) | 329,917 | 130,252 | (1,909) | ||
Balance, Shares at Mar. 31, 2022 | 67,075,000 | |||||||
Common stock issued under stock plans, net of shares withheld for taxes | (4,016) | $ 17 | (4,033) | |||||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 1,630,000 | |||||||
Stock-based compensation | 33,458 | 33,458 | ||||||
Repurchase of common stock | [2] | $ (49,878) | (49,878) | |||||
Repurchase of common stock, Shares | (2,679,336) | (2,679,000) | [2] | |||||
Components of other comprehensive income: | ||||||||
Unrealized gain on marketable securities | $ 42 | 42 | ||||||
Translation adjustments | 405 | 405 | ||||||
Net income (loss) | (2,654) | (2,654) | ||||||
Balance at Mar. 31, 2023 | $ 400,435 | $ 709 | $ (85,752) | $ 359,342 | $ 127,598 | $ (1,462) | ||
Balance, Shares at Mar. 31, 2023 | 66,026,000 | |||||||
[1] Weighted-average repurchase price (dollars per share) for the year ended March 31, 2022 was $ 16.53 . Weighted-average repurchase price (dollars per share) for the year ended March 31, 2023 was $ 18.62 . |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Weighted-average share repurchase price | $ 18.62 | $ 16.53 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (2,654) | $ 1,618 | $ 9,515 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of capitalized software costs | 22,571 | 23,016 | 20,108 |
Amortization and write-off of debt issuance costs | 834 | 508 | 1,026 |
Amortization of other intangibles | 9,035 | 12,397 | 21,109 |
Net amortization (accretion) of premiums/discounts on marketable securities | (476) | ||
Change in fair value of contingent consideration | 100 | 7 | (1,367) |
Deferred income taxes | (9,076) | 215 | (8,854) |
Depreciation | 5,088 | 6,902 | 7,997 |
Excess tax deficiency (benefit) from share-based compensation | (1,052) | 643 | 798 |
Impairment of assets | 3,163 | 3,906 | 5,539 |
Loss on disposal of equipment and improvements | 90 | 97 | 12 |
Loss on foreign currency exchange rates | 17 | ||
Non-cash operating lease costs | 2,716 | 5,732 | 6,786 |
Provision for bad debts | 1,914 | 1,915 | 2,834 |
Restructuring costs, net of amounts paid | 1,990 | ||
Share-based compensation | 33,458 | 26,552 | 22,710 |
Gain on disposition of Commercial Dental assets | (10,296) | ||
Changes in assets and liabilities, net of amounts acquired: | |||
Accounts receivable | (12,379) | (431) | (369) |
Contract assets | 5,930 | (5,610) | (5,921) |
Accounts payable | 333 | (2,329) | 615 |
Contract liabilities | (6,739) | 8,417 | (3,923) |
Accrued compensation and related benefits | (13,142) | (1,638) | 26,582 |
Income taxes | 2,790 | (5,650) | 1,615 |
Deferred compensation | 803 | 610 | 1,320 |
Operating lease liabilities | (8,808) | (12,734) | (16,736) |
Other assets and liabilities | 17,450 | (10,598) | 7,122 |
Net cash provided by operating activities | 43,660 | 53,545 | 98,518 |
Cash flows from investing activities: | |||
Additions to capitalized software costs | (34,987) | (25,500) | (24,578) |
Additions to equipment and improvements | (2,277) | (2,582) | (3,761) |
Acquisition related working capital adjustment payments | (206) | ||
Payments for acquisitions, net of cash acquired | (51,302) | ||
Proceeds from disposition of Commercial Dental assets | 11,253 | ||
Proceeds from sales of marketable securities | 506 | ||
Purchases of marketable securities | (140,087) | ||
Net cash used in investing activities | (216,894) | (28,082) | (28,545) |
Cash flows from financing activities: | |||
Proceeds from convertible senior notes | 275,000 | ||
Proceeds from line of credit | 50,000 | 50,000 | |
Repayments on line of credit | (50,000) | (179,000) | |
Payment of debt issuance costs | (8,483) | (1,423) | |
Proceeds from issuance of shares under employee plans | 6,835 | 5,014 | 3,479 |
Repurchase of common stock | (49,878) | (35,874) | |
Payment of contingent consideration related to acquisitions | (540) | ||
Payments for taxes related to net share settlement of equity awards | (10,851) | (5,891) | (4,773) |
Net cash provided by (used in) financing activities | 212,623 | (37,291) | (131,717) |
Effect of exchange rate changes on cash and cash equivalents | (148) | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 39,241 | (11,828) | (61,744) |
Cash, cash equivalents, and restricted cash at beginning of period | 66,747 | 78,575 | 140,319 |
Cash, cash equivalents, and restricted cash at end of period | 105,988 | 66,747 | 78,575 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 12,619 | 8,774 | 6,206 |
Cash refunds from income taxes | 9 | 125 | 155 |
Cash paid for interest | 1,190 | 573 | 2,708 |
Non-cash investing and financing activities: | |||
Unrealized gain on marketable securities, net of $0 tax | 42 | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 9,451 | 13,766 | 18,651 |
Operating lease assets obtained in exchange for operating lease liabilities | 957 | 1,610 | 3,107 |
Accrued purchases of equipment and improvements | $ 800 | $ 76 | $ 242 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Unrealized gain on marketable securities, tax | $ 0 | $ 0 | $ 0 |
Organization of Business
Organization of Business | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization of Business | 1. Organizati on of Business Description of Business NextGen Healthcare is a leading provider of innovative, cloud-based, healthcare technology solutions that empower ambulatory healthcare providers to manage the risk and complexity of delivering care in the United States healthcare system. Our combination of technological breadth, depth, and domain expertise positions us as a preferred solution provider and trusted advisor for our clients. In addition to highly configurable core clinical and financial capabilities, our portfolio includes tightly integrated solutions that deliver on ambulatory healthcare imperatives, including consumerism, digitization, risk allocation, regulatory influence, and integrated care and health equity. We serve clients across all 50 states. Over 100,000 providers use NextGen Healthcare solutions to deliver care in nearly every medical specialty in a wide variety of practice models including accountable care organizations (“ACOs”), independent physician associations (“IPAs”), managed service organizations (“MSOs”), veterans service organizations (“VSOs”), and dental service organizations (“DSOs”). Our clients range from some of the largest and most progressive multi-specialty groups in the country to sole practitioners with a wide variety of business models. With the addition of behavioral health to our medical and oral health capabilities, we continue to extend our share not only in federally qualified health centers (“FQHCs”) but also in the growing integrated care market. Our company was incorporated in California in 1974. Previously named Quality Systems, Inc., we changed our corporate name to NextGen Healthcare, Inc. in September 2018, and in 2021, we changed our state of incorporation to Delaware. As a remote-first company, we no longer maintain a principal executive office. Our principal website is www.nextgen.com. We operate on a fiscal year ending on March 31. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Signific ant Accounting Policies Principles of Consolidation. The consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “NextGen Healthcare,” “NextGen,” “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. Business Segments. We operated as one segment for the years ended March 31, 2023 and 2022. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. Basis of Presentation. Certain prior period amounts have been reclassified to conform to current period presentation. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. Refer to Note 3, “Revenue from Contracts with Customers” for additional information. Use of Estimates. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and recording revenue and expenses during the period. Revenue Recognition . Refer to Note 3, "Revenue from Contracts with Customers" for additional information regarding our revenue recognition policies. Cash and Cash Equivalents. Cash and cash equivalents consist primarily of cash and money market funds with original maturities of less than 90 days. At March 31, 2023 and March 31, 2022, we had cash and cash equivalents of $ 98,719 and $ 59,829 , respectively. We also had cash deposits held at United States banks and financial institutions at March 31, 2023 of which $ 76,786 was in excess of the Federal Deposit Insurance Corporation insurance limit of $ 250 per owner. Our cash deposits are exposed to credit loss for amounts in excess of insured limits in the event of nonperformance by the institutions; however, we do not anticipate nonperformance by these institutions. Money market funds in which we hold a portion of our excess cash are invested in very high grade commercial and governmental instruments, and therefore bear low market risk. Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents consist of cash that is being held by the Company acting as an agent for the disbursement of certain state social and care services programs. We record an offsetting liability when we initially receive such cash from the programs. We relieve both restricted cash and cash equivalents and the related liability when amounts are disbursed. We earn an administrative fee based on a percentage of the funds disbursed on behalf of the government social and care service programs. Marketable securities. Our marketable securities primarily consist of United States treasury securities, corporate notes and bonds, agency securities, and commercial paper. We determine the appropriate classification of our marketable securities at the time of purchase and reevaluate such classification at each reporting period. We classify and account for our marketable securities as available-for-sale securities as we may sell these securities at any time for use in our current operations or for other purposes, as needed, even prior to maturity. As a result, we classify our marketable securities within current assets. Our marketable securities are reported at fair value and adjusted for amortization of premiums and accretion of discounts until maturity. Amortization and accretion are included in other income (expense), net in the consolidated statements of net income and comprehensive income. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of net income and comprehensive income. Unrealized gains are reported as a separate component of accumulated other comprehensive loss on the consolidated balance sheets until realized. Refer to Note 6, "Marketable Securities" for additional information. Reserves on Accounts Receivable. We maintain reserves for estimated potential sales returns and allowances for credit losses on our accounts receivable. Accounts receivable are reported net of an allowance for credit losses on our consolidated balance sheets. Our standard contracts generally do not contain provisions for clients to return products or services. However, we historically have accepted sales returns under limited circumstances. We estimate expected sales returns and other forms of variable consideration considering our customary business practice and contract-specific facts and circumstances, and we consider such estimated potential returns as variable consideration when allocating the transaction price to the extent it is probable that there will not be a significant reversal of cumulative revenue recognized. Allowance for credit losses are reserves related to estimated losses resulting from our clients’ inability to make required payments and are established based on our assessment of the collectability of client accounts, including review of our historical experience of bad debt expense and the aging of our accounts receivable balances, net of specifically reserved accounts and amounts billed prior to revenue recognition. Specific reserves are based on our estimate of the probability of collection for certain accounts. As part of our assessment of the adequacy of the allowance for credit losses, we consider a number of factors including, but not limited to, historical credit loss experience and adjustments for certain asset-specific risk characteristics, such as bankruptcy filings, internal assessments of client credit quality, age of the client receivable balances, review of major third-party credit-rating agencies, and evaluation of external factors such as economic conditions that may affect a client’s ability to pay, or other client-specific factors. Accounts are written off as uncollectible only after we have expended extensive collection efforts. Refer to Note 4, “Accounts Receivable” for additional information. Leases. We adopted ASU 2016-02, Leases (Topic 842) , and its subsequent amendments (together “ASC 842”) using the cumulative-effect adjustment transition method, which is the additional transition method described within ASU 2018-11, Leases (Topic 842): Targeted Improvements , issued by the FASB in July 2018, which allowed us to apply the new lease standard as of April 1, 2019 . Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. We determine whether an arrangement is a lease at inception and classify it as finance or operating. All of our existing material leases are classified as operating leases. Our leases do not contain any residual value guarantees. Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. We have certain insignificant short-term leases with an initial term of twelve months or less that are not recorded in our consolidated balance sheets. Operating right-of-use lease assets are classified as operating lease assets on our consolidated balance sheets. Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We have applied the practical expedient to combine fixed payments for non-lease components with our lease payments for all of our leases and account for them together as a single lease component, which increases the amount of our lease assets and corresponding liabilities. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Operating lease costs are recognized on a straight-line basis over the lease term and included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. Refer to Note 7, "Leases" for additional information. Equipment and Improvements. Equipment and improvements are stated at cost less accumulated depreciation and amortization. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation and amortization of equipment and improvements are recorded over the estimated useful lives of the assets, or the related lease terms if shorter, by the straight-line method. Useful lives generally have the following ranges: • Computer equipment and software - 3 to 5 years • Furniture and fixtures - 3 to 7 years • Leasehold improvements - lesser of lease term or estimated useful life of asset Depreciation expense related to our equipment and improvements was $ 5,088 , $ 6,902 , and $ 7,997 for the years ended March 31, 2023, 2022, and 2021, respectively. Capitalized Software Costs. Software development costs, consisting primarily of employee salaries and benefits and certain third party costs, incurred in the development of new software solutions and enhancements to existing software solutions for external sale are expensed as incurred, and reported as net research and development costs in the consolidated statements of net income and comprehensive income, until technological feasibility has been established. After technological feasibility is established, the incremental software development costs are capitalized until general release occurs. Amortization of capitalized software begins upon general release and is recorded on a straight-line basis over the estimated economic life of the related product, which is typically three years . The total of capitalized software costs incurred in the development of products for external sale are reported as capitalized software costs within our consolidated balance sheets. We also incur costs related to the development of software applications for our internal-use and for the development of software-as-a-service ("SaaS") based solutions sold to our clients. The development costs of our SaaS-based solutions are considered internal-use for accounting purposes. Our internal-use capitalized development costs are stated at cost and amortized on a straight-line basis over the estimated useful lives of the assets, which is typically three years . Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs related to the preliminary project stage and post-implementation activities are expensed as incurred. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized software costs for the development of SaaS-based solutions are reported as capitalized software costs within our consolidated balance sheets and capitalized software costs for the development of our internal-use software applications are reported as equipment and improvements within our consolidated balance sheets. We periodically reassess the estimated economic life and the recoverability of our capitalized software costs. If we determine that capitalized amounts are not recoverable based on the expected net cash flows to be generated from sales of the applicable software solutions, the amount by which the unamortized capitalized costs exceed the net realizable value is written off as a charge to earnings. The net realizable value is estimated as the expected future gross revenues from that product reduced by the estimated future costs of completing and disposing of that product, including the costs of performing maintenance and client support required to satisfy our responsibility at the time of sale. In addition to the assessment of net realizable value, we review and adjust the remaining estimated lives of our capitalized software costs, if necessary. We also perform a periodic review of our software solutions and dispose of fully amortized capitalized software costs after such products are determined to no longer be used by our clients. Business Combinations. In accordance with the accounting for business combinations, we allocate the purchase price of the acquired business to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent our best estimate of fair value. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type and nature of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. The purchase price allocation methodology contains uncertainties as it requires us to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities, including, but not limited to, intangible assets, goodwill, and contingent consideration liabilities. We estimate the fair value of the contingent consideration liabilities based on our projection of expected results, as needed. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. Any adjustments to fair value subsequent to the measurement period are reflected in the consolidated statements of net income and comprehensive income. Goodwill. Goodwill acquired in a business combination is measured as the excess of the purchase price, or consideration transferred, over the net acquisition date fair values of the assets acquired and the liabilities assumed. Goodwill is not amortized as it has been determined to have an indefinite useful life. We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). We operate as one segment and have a single reporting unit. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. As part of our annual goodwill impairment test, we may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount. We assess events or changes in circumstances in totality, including macroeconomic and industry conditions, market and competitive environment, changes in customers or customer mix, cost factors, loss of key personnel, significant changes in legislative environment or other legal factors, changes in the use of our acquired assets, changes in our strategic direction, significant changes in projected future results of operations, changes in the composition or carrying amount of our net assets, and changes in our stock price. Based on our assessment, if we conclude that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then additional impairment testing is not required. Otherwise, if we determine that a quantitative impairment test should be performed, we then evaluate goodwill for impairment by comparing the estimated fair value of the reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. Intangible Assets. Intangible assets consist of trade names, customer relationships, re-acquired rights, data health database, and software technology, all of which are associated with our business acquisitions. The intangible assets are recorded at fair value and are reported net of accumulated amortization. We currently amortize the intangible assets over periods ranging from 3 to 11 years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed. We assess the recoverability of intangible assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. Impairment is deemed to have occurred if the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, and a loss is recognized to reduce the carrying value of the intangible assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our intangible assets and record adjustments, if deemed necessary. Long-Lived Assets. We assess our long-lived assets for potential impairment periodically or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If necessary, recoverability of the assets is evaluated based on the future undiscounted cash flows expected to result from the use of the related assets compared to the carrying value of such assets. If impairment is deemed to have occurred, a loss is recognized to reduce the carrying value of the long-lived assets to fair value, which is determined by discounting the estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our long-lived assets and record adjustments, if deemed necessary. Convertible Senior Notes. We account for our convertible senior notes as a single liability measured at its amortized cost and reported as noncurrent liabilities on our consolidated balance sheets. Debt issuance costs incurred in connection with the issuance of our convertible senior notes are reflected as a direct deduction from the carrying amount of the outstanding convertible senior notes. These costs are amortized as interest expense using the effective interest rate method over the contractual term of the convertible senior notes and is included within other income (expense), net on our consolidated statements of net income and comprehensive income. Refer to Note 12, “Debt” for additional information. Income Taxes. Income taxes are estimated based on current taxable income and the future tax consequences of temporary differences between the basis of assets and liabilities for financial and tax reporting. The deferred income tax assets and liabilities represent the future state and federal tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future income taxes. At each reporting period, we assess the realizable value of deferred tax assets based on, among other things, estimates of future taxable income and adjust the related valuation allowance as necessary. We make a number of assumptions and estimates in determining the appropriate amount of expense to record for income taxes. The assumptions and estimates consider the taxing jurisdiction in which we operate as well as current tax regulations. We also evaluate our uncertain tax positions and only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest benefit that has a greater than 50 percentage likelihood of being realized upon settlement. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Advertising Costs. Advertising costs are expensed as incurred. We do not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $ 10,270 , $ 6,780 , and $ 3,902 for the years ended March 31, 2023, 2022, and 2021, respectively, and were included in selling, general and administrative expenses in the consolidated statements of net income and comprehensive income. Earnings per Share. We provide a dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. Fiscal Year Ended March 31, 2023 2022 2021 Earnings per share — Basic: Net income (loss) $ ( 2,654 ) $ 1,618 $ 9,515 Weighted-average shares outstanding — Basic 67,005 67,370 66,739 Net income per common share — Basic $ ( 0.04 ) $ 0.02 $ 0.14 Earnings per share — Diluted: Net income (loss) $ ( 2,654 ) $ 1,618 $ 9,515 Weighted-average shares outstanding 67,005 67,370 66,739 Effect of potentially dilutive securities — 418 146 Weighted-average shares outstanding — Diluted 67,005 67,788 66,885 Net income (loss) per common share — Diluted $ ( 0.04 ) $ 0.02 $ 0.14 The computation of diluted net income (loss) per share does not include 642 , 194 and 1,949 options for the years ended March 31, 2023, 2022, and 2021, respectively, because their inclusion would have an anti-dilutive effect on net income (loss) per share. The dilutive effect of potentially dilutive common shares is reflected in diluted net income per share by application of the if-converted method for the Convertible Senior Notes due 2027 (“Notes”), as described further in Note 12, “Debt” of our notes to consolidated financial statements included elsewhere in this Report for further information. The shares issuable upon conversion of the Notes, subject to adjustment in some events, are not considered in the calculation of diluted net income (loss) per share for the year ended March 31, 2023 because their inclusion would have an anti-dilutive effect on net income per share. Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which clarifies the application of certain optional expedients and exceptions. Topic 848 may be applied prospectively through December 31, 2022. The adoption of Topic 848 did not have a material impact on our consolidated financial statements as our amended and restated revolving credit agreement contains provisions to accommodate the replacement of the existing LIBOR-based rate with a successor Secured Overnight Financing Rate (“SOFR”) based rate upon a triggering event. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. We have applied the amendments in ASU 2020-06 for the accounting of the convertible senior notes issued on November 1, 2022 (see Note 12). In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with ASU 2016-10, Revenue from Contracts with Customers (Topic 606) , at fair value on the acquisition date. ASU 2021-08 requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in ASU 2021-08 should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. We have elected to early adopt this guidance as of July 1, 2022 and have applied the amendments in ASU 2021-08 prospectively for the accounting of our acquisition of TSI Healthcare, LLC (see Note 8). Recent Accounting Standards Not Yet Adopted. Recent accounting pronouncements requiring implementation in current or future periods are discussed below or in the notes, where applicable. We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Cont racts with Customers Revenue Recognition and Performance Obligations We generate revenue from sales of licensing rights and subscriptions to our software solutions, hardware and third-party software products, support and maintenance, managed services, transactional and data services, and other non-recurring services, including implementation, training, and consulting services. Our contracts with customers may include multiple performance obligations that consist of various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation within a contract based on estimated standalone selling prices. We generally determine standalone selling prices based on the prices charged to customers, except for certain software licenses that are based on the residual approach because their standalone selling prices are highly variable and certain maintenance customers that are based on substantive renewal rates. In instances where standalone selling price is not sufficiently observable, such as revenue cycle management ("RCM") services and software licenses included in our RCM arrangements, we estimate standalone selling price utilizing an expected cost plus a margin approach. When standalone selling prices are not observable, significant judgment is required in estimating the standalone selling price for each performance obligation. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We exclude sales tax from the measurement of the transaction price and record revenue net of taxes collected from customers and subsequently remitted to governmental authorities. The following table presents our revenues disaggregated by our major revenue categories and by occurrence: Fiscal Year Ended March 31, 2023 2022 2021 Recurring revenues: Subscription services $ 184,047 $ 162,636 $ 148,403 Support and maintenance 153,520 155,623 152,956 Managed services 129,115 111,377 97,400 Transactional and data services 127,236 110,077 104,060 Total recurring revenues 593,918 539,713 502,819 Software, hardware, and other non-recurring revenues: Software license and hardware 27,860 31,347 28,825 Other non-recurring services 31,394 25,290 25,177 Total software, hardware and other non-recurring revenues 59,254 56,637 54,002 Total revenues $ 653,172 $ 596,350 $ 556,821 Recurring revenues consists of subscription services, support and maintenance, managed services, and transactional and data services. Software, hardware, and other non-recurring revenues consists of revenue from sales of software license and hardware and certain non-recurring services, such as implementation, training, and consulting performed for clients who use our products. We generally recognize revenue for our most significant performance obligations as follows: Subscription services. Performance obligations involving subscription services, which include annual libraries, are satisfied over time as the customer simultaneously receives and consumes the benefits of the services throughout the contract period. Our subscription services primarily include our software-as-a-service (“SaaS”) based offerings, such as our electronic health records and practice management, mobile, patient portal, and population health management solutions. Our SaaS-based offerings may include multiple goods and services, such as providing access to our technology-based solutions together with our managed cloud hosting services. These offerings are concurrently delivered with the same pattern of transfer to our customers and are accounted for as a single performance obligation because the technology-based solutions and other goods and services included within our overall SaaS-based offerings are each individually not capable of being distinct as the customer receives benefits based on the combined offering. Our annual libraries primarily consist of providing stand-ready access to certain content, knowledgebase, databases, and SaaS-based educational tools, which are frequently updated to meet the most current standards and requirements, to be utilized in conjunction with our core solutions. We recognize revenue related to these subscription services, including annual libraries, ratably over the respective noncancelable contract term. Support and maintenance. Performance obligations involving support and maintenance are satisfied over time as the customer simultaneously receives and consumes the benefits of the maintenance services provided. Our support and maintenance services may consist of separate performance obligations, such as unspecified upgrades or enhancements and technical support, which are considered stand-ready in nature and can be offered at various points during the service period. Since the efforts associated with the combined support and maintenance services are rendered concurrently and provided evenly throughout the service period, we consider the series of support and maintenance services to be a single performance obligation. Therefore, we recognize revenue related to these services ratably over the respective noncancelable contract term. Managed services. Managed services consist primarily of RCM and related services, but also includes our hosting services, which we refer to as managed cloud services, transcription services, and certain other recurring services. Performance obligations associated with RCM services are satisfied over time as the customer simultaneously receives and consumes the benefits of the services executed throughout the contract period. The majority of service fees under our RCM arrangements are variable consideration contingent upon collections by our clients. We estimate the variable consideration which we expect to be entitled to over the noncancelable contract term associated with our RCM service arrangements. The estimate of variable consideration included in the transaction price typically involves estimating the amounts we will ultimately collect on behalf of our clients and the relative fee we charge that is generally calculated as a percentage of those collections. Inputs to these estimates include, but are not limited to, historical service fees and collections amounts, timing of historical collections relative to the timing of when claims are submitted by our clients to their respective payers, macroeconomic trends, and anticipated changes in the number of providers. Significant judgment is required when estimating the total transaction price based on the variable consideration. We may apply certain constraints when appropriate whereby we include in the transaction price estimated variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such estimates are assessed at the contract level. RCM and related services may not be rendered evenly over the contract period as the timing of services are based on customer collections, which may vary throughout the service period. We recognize revenue for RCM based on the amount of collections received throughout the contract term as it most closely depicts our efforts to transfer our service obligations to the customer. Our managed cloud services represent a single performance obligation to provide cloud hosting services to our customers and related revenue is recognized ratably over the respective noncancelable contract term. Performance obligations related to the transcription services, and other recurring services are satisfied as the corresponding services are provided and revenue is recognized as such services are rendered. Transactional and data services. Performance obligations related to transactional and data services, including electronic data interchange (“EDI”), patient pay, and other transaction processing services are satisfied at the point in time the services are rendered or delivered. The transfer of control occurs when the transactional and data services are delivered and the customer receives the benefits from the services provided. Revenue is recognized as such services are rendered. Beginning in fiscal year 2023, to align the presentation of disaggregated revenue with the manner in which management reviews such information, the presentation of disaggregated revenues by major revenue categories was revised to reclassify revenues related to patient pay services and certain other services from the managed services category into the transactional and data services category, which replaced the prior EDI and data services category. The prior period presentation of revenues disaggregated by major revenue categories and by occurrence above has been reclassified to conform with current period presentation. Software license and hardware. Software license and hardware are considered point-in-time performance obligations as control is transferred to customers upon the delivery of the software license and hardware. Our software licenses are considered functional licenses, and revenue recognition generally occurs on the date of contract execution as the customer is provided with immediate access to the license. We generally determine the amount of consideration allocated to the software license performance obligation using the residual approach, except for certain RCM arrangements where the amount allocated to the software license performance obligation is determined based on estimated relative standalone selling prices. For hardware, we recognize revenue upon transfer of such hardware or devices to the customer. Other non-recurring services. Performance obligations related to other non-recurring services, including implementation, training, and consulting services, are generally satisfied as the corresponding services are provided. Once the services have been provided to the customer, the transfer of control has occurred. Therefore, we recognize revenue as such services are rendered. Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2023, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $ 599,600 of which we expect to recognize approximately 9 % as services are rendered or goods are delivered, 53 % over the next 12 months, and the remainder thereafter. As of March 31, 2022, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $ 608,400 of which we expect to recognize approximately 10 % as services are rendered or goods are delivered, 51 % over the next 12 months, and the remainder thereafter. Contract Balances Contract balances result from the timing differences between our revenue recognition, invoicing, and cash collections. Such contract balances include accounts receivables, contract assets and liabilities, and other customer deposits and liabilities balances. Accounts receivables include invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Contract assets, consisting of unbilled receivables, include amounts where revenue recognized exceeds the amount invoiced to the customer and the right to payment is not solely subject to the passage of time. Contract assets are generally associated with our sales of software licenses, but may also be associated with other performance obligations such as subscription services, support and maintenance, annual libraries, and professional services, where control has been transferred to our customers but the associated payments are based on future customer collections (in the case of our RCM service arrangements) or based on future milestone payment due dates. In such instances, the revenue recognized may exceed the amount invoiced to the customer and such balances are included in contract assets since our right to receive payment is not unconditional, but rather is conditional upon customer collections or the continued functionality of the software and our ongoing support and maintenance obligations. Contract liabilities consist mainly of fees invoiced or paid by our clients for which the associated services have not been performed and revenues have not been recognized. Contract assets and contract liabilities are reported in a net position on an individual contract basis at the end of each reporting period. Contract assets are classified as current or long-term on our consolidated balance sheets based on the timing of when we expect to complete the related performance obligations and invoice the customer. Contract liabilities are classified as current on our consolidated balance sheets since the revenue recognition associated with the related customer payments and invoicing is expected to occur within the next twelve months. During the years ended March 31, 2023 and 2022, we recognized $ 69,868 and $ 69,062 , respectively, of revenues that were included in the contract liability balance or invoiced to customers since the beginning of the corresponding periods. Our contracts with customers do not include any major financing components. Costs to Obtain or Fulfill a Contract We capitalize all incremental costs of obtaining a contract with a customer to the extent that such costs are directly related to a contract and expected to be recoverable. Our sales commissions and related sales incentives are considered incremental costs requiring capitalization. Capitalized contract costs are amortized to expense utilizing a method that is consistent with the transfer of the related goods or services to the customer. The amortization period ranges from less than one year up to five years , based on the period over which the related goods and services are transferred, including consideration of the expected customer renewals and the related useful lives of the products. Capitalized commissions costs were $ 39,917 as of March 31, 2023, of which $ 13,813 is classified as current and included as prepaid expenses and other current assets and $ 26,104 is classified as long-term and included within other assets on our consolidated balance sheets, based on the expected timing of expense recognition. Capitalized commissions costs were $ 33,352 as of March 31, 2022, of which $ 11,698 was classified as current and $ 21,654 was classified as long-term. During the years ended March 31, 2023, 2022, and 2021, we recognized $ 14,834 , $ 12,044 , and $ 11,236 , respectively, of commissions expense. Commissions expense primarily relates to the amortization of capitalized commissions costs, which is included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable Accounts receivable includes invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Allowance for credit losses are reported as a component of accounts receivable as summarized below: March 31, 2023 March 31, 2022 Accounts receivable, gross $ 92,360 $ 79,945 Allowance for credit losses ( 3,862 ) ( 3,888 ) Accounts receivable, net $ 88,498 $ 76,057 The following table represents the changes in the allowance for credit losses, as of and for the twelve months ended March 31, 2023 and 2022: Balance as of March 31, 2021 $ ( 4,205 ) Additions charged to costs and expenses ( 1,915 ) Deductions 2,232 Balance as of March 31, 2022 $ ( 3,888 ) Additions charged to costs and expenses ( 1,914 ) Deductions 1,940 Balance as of March 31, 2023 $ ( 3,862 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Valu e Measurements The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2023 and March 31, 2022: Balance At Quoted Prices Significant Other Unobservable March 31, 2023 (Level 1) (Level 2) (Level 3) ASSETS Cash and money market funds $ 73,754 $ 73,754 $ — $ — Commercial paper 10,795 — 10,795 — United States treasury securities 9,979 — 9,979 — Corporate notes and bonds 3,349 — 3,349 — Agency securities 842 — 842 — Total cash and cash equivalents 98,719 73,754 24,965 — Restricted cash and cash equivalents 7,269 7,269 — — United States treasury securities 56,890 — 56,890 — Agency securities 37,991 — 37,991 — Corporate notes and bonds 26,590 — 26,590 — Commercial paper 18,141 — 18,141 — Total marketable securities 139,612 — 139,612 — TOTAL ASSETS $ 245,600 $ 81,023 $ 164,577 $ — LIABILITIES Contingent consideration related to acquisitions $ 3,800 $ — $ — $ 3,800 Convertible senior notes, net, noncurrent 266,843 — 266,843 — TOTAL LIABILITIES $ 270,643 $ — $ 266,843 $ 3,800 Balance At Quoted Prices Significant Other Unobservable March 31, 2022 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 59,829 $ 59,829 $ — $ — Restricted cash and cash equivalents 6,918 6,918 — — TOTAL ASSETS $ 66,747 $ 66,747 $ — $ — (1) Cash equivalents consist primarily of money market funds. We classify our highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify our United States treasury securities, corporate notes and bonds, agency securities, and commercial paper within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. During the year ended March 31, 2022, we recorded a fair value adjustment of $ 7 for the contingent consideration liability related to the acquisition of Topaz based on actual earnout achievement. The contingent consideration liability of $ 540 was fully settled as of March 31, 2022. The following table presents activity in our financial assets and liabilities measured at fair value using significant observable inputs (Level 2), as of and for the year ended March 31, 2022. Total Liabilities Balance at March 31, 2021 $ 533 Fair value adjustments 7 Payment of Topaz contingent consideration ( 540 ) Balance at March 31, 2022 $ — As of March 31, 2023, the contingent consideration liability balance of $ 3,800 relates to the acquisition of TSI Healthcare, LLC (See Note 8) and reflects a $ 100 post-acquisition fair value adjustment. The following table presents activity in our financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the year ended March 31, 2023: Total Liabilities Balance at March 31, 2022 $ — Acquisition 3,700 Fair value adjustments 100 Balance at March 31, 2023 $ 3,800 The categorization of the framework used to measure fair value of the contingent consideration liability is within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. We assess the fair value of the contingent consideration liability on a recurring basis and any adjustments to fair value subsequent to the measurement period are reflected in the consolidated statements of net income and comprehensive income. Key assumptions included probability-adjusted achievement estimates of applicable revenue targets that were not observable in the market. The fair value adjustments to contingent consideration liabilities are included as a component of selling, general and administrative expense in the consolidated statements of net income and comprehensive income. There are no other assets or liabilities accounted for utilizing unobservable inputs (Level 3). We believe that the fair value of our other financial assets and liabilities, including accounts receivable, accounts payable, and line of credit, approximate their respective carrying values due to their nominal credit risk. Non-Recurring Fair Value Measurements We have certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. |
Investments
Investments | 12 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 6. Investments The following table summarizes the fair value of our investments and marketable securities as of March 31, 2023: March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 10,795 $ — $ — $ 10,795 United States treasury securities 9,977 2 — 9,979 Money market funds 5,976 — — 5,976 Corporate notes and bonds 3,349 — — 3,349 Agency securities 842 — — 842 Total cash and cash equivalents 30,939 2 — 30,941 United States treasury securities 56,795 99 ( 4 ) 56,890 Agency securities 37,999 16 ( 24 ) 37,991 Corporate notes and bonds 26,631 14 ( 55 ) 26,590 Commercial paper 18,147 — ( 6 ) 18,141 Total marketable securities 139,572 129 ( 89 ) 139,612 Total investments $ 170,511 $ 131 $ ( 89 ) $ 170,553 We do not intend to sell, nor is it more likely than not that we will be required to sell, any investments in unrealized loss positions prior to the recovery of their amortized cost basis. We did not recognize any credit losses related to our investments during the year ended March 31, 2023. The unrealized losses on our investments were due to changes in interest rates and market conditions subsequent to initial purchase. None of the investments held as of March 31, 2023 were in a continuous unrealized loss position for greater than 12 months. Realized gains from the sale of our investments that were reclassified out of accumulated other comprehensive loss were not significant during the year ended March 31, 2023. The following table presents the contractual maturities of our investments and marketable securities as of March 31, 2023: Amortized Cost Fair Value Due within one year $ 126,062 $ 126,068 Due after one year through five years 44,449 44,485 Total 170,511 170,553 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 7. Le ases Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. Operating right-of-use lease assets are classified as operating lease assets on our consolidated balance sheets. We determine whether an arrangement is a lease at inception and classify it as finance or operating. All of our existing material leases are classified as operating leases. Our leases do not contain any residual value guarantees. Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We have applied the practical expedient to combine fixed payments for non-lease components with our lease payments for all of our leases and account for them together as a single lease component, which increases the amount of our lease assets and corresponding liabilities. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Operating lease costs are recognized on a straight-line basis over the lease term and included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. Total operating lease costs were $ 2,487 , $ 6,549 , and $ 9,190 for the years ended March 31, 2023, 2022, and 2021, respectively. Components of operating lease costs are summarized as follows: Twelve Months Ended March 31, 2023 2022 Operating lease costs $ 2,800 $ 6,328 Short-term lease costs — 8 Variable lease costs 649 774 Less: Sublease income ( 962 ) ( 561 ) Total operating lease costs $ 2,487 $ 6,549 Supplemental cash flow information related to operating leases is summarized as follows: Twelve Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 9,451 $ 13,766 Operating lease assets obtained in exchange for operating lease liabilities 957 1,610 We have operating lease agreements for our offices in the United States and India with lease periods expiring between 2023 and 2025 . As of March 31, 2023, our operating leases had a weighted average remaining lease term of 2.0 years and a weighted average discount rate of 4.2 % . Future minimum aggregate lease payments under operating leases as of March 31, 2023 are summarized as follows: For the year ended March 31, 2024 $ 4,077 2025 3,667 2026 528 Total future lease payments 8,272 Less interest ( 351 ) Total lease liabilities $ 7,921 As of March 31, 2023, we have entered into a lease that has not yet commenced with future lease payments of $ 686 that are not reflected in the table above. This lease is primarily related to office real estate and will commence in fiscal 2024 with a lease term of up to five years . During the year ended March 31, 2023, we vacated portions of certain leased locations and recorded impairments of $ 3,163 to our right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in St. Louis, Atlanta, Horsham, Hunt Valley, Chapel Hill, Irvine and Bangalore based on projected sublease rental income and estimated sublease commencement dates and the remeasurement of our operating lease liabilities associated with the modification and early termination of certain leases. The impairment analyses were performed at the asset group level and the impairment charges were estimated by comparing the fair value of each asset group based on the expected cash flows to its respective book value. We determined the discount rate for each asset group based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the impairment date. Significant judgment was required to estimate the fair value of each asset group and actual results could vary from the estimates, resulting in potential future adjustments to amounts previously recorded. During the year ended March 31, 2022, we vacated portions of certain leased locations and recorded impairments of $ 3,906 to our right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in Irvine, Horsham, Atlanta, Fairport, Hunt Valley, Bangalore, and St. Louis based on projected sublease rental income and estimated sublease commencement dates. During the year ended March 31, 2021, as part of our response to the COVID-19 pandemic and ongoing cost reduction efforts, we vacated our Cary office, portions of our Irvine and Horsham offices, and the remainder of our San Diego office. We recorded impairments of $ 5,539 to our operating right-of-use assets and certain related fixed assets associated with the vacated locations based on projected sublease rental income and estimated sublease commencement dates and the remeasurement of our operating lease liabilities associated with the modification of certain lease expiration dates. |
Business Combinations and Dispo
Business Combinations and Disposals | 12 Months Ended |
Mar. 31, 2023 | |
Business Disposition [Abstract] | |
Business Combinations and Disposals | 8. Business Combinations and Disposals Acquisition of TSI Healthcare, LLC On November 30, 2022 , we completed the acquisition of TSI Healthcare, LLC ("TSI") pursuant to a securities purchase agreement dated November 30, 2022. TSI is based in Chapel Hill, NC and is a value-added reseller of NextGen Practice Management and Electronic Health Record software and solutions. The preliminary purchase price was $ 50,449 , subject to customary working capital and other adjustments. Additionally, under the provisions of the securities purchase agreement, we may pay up to an additional $ 22,000 of cash contingent consideration in the form of an earnout, subject to TSI achieving certain revenue targets through March 2025. The initial fair value of the contingent consideration was $ 3,700 , which was estimated using a Monte Carlo simulation in a risk-neutral framework. The preliminary purchase price of TSI is summarized in the table below. The acquisition of TSI was funded by cash flows from operations and cash proceeds from our convertible senior notes (see Note 12). We accounted for the acquisition as a business combination using the acquisition method of accounting. The purchase price allocation of TSI is deemed to be preliminary. The preliminary purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The preliminary fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are subject to change as we finalize the valuation or if additional information about the facts and circumstances that existed at the acquisition date become available. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. Identifiable intangible assets acquired from TSI include re-acquired rights, customer relationships, and data health database. The fair values of the acquired intangible assets were determined using the distributor method of the income approach for customer relationships and the multi-period excess earnings method of the income approach for re-acquired rights and the data health database. The valuation model inputs involved the use of significant assumptions, such as distributor margin and discount rate for customer relationships and revenue forecasts, cost of sales and operating expenses as a percentage of revenue, distributor margin, and discount rate for re-acquired rights, which required the application of significant judgment by management. Goodwill represents the excess of the purchase price over the net identifiable assets acquired and liabilities assumed. Goodwill primarily represents, among other factors, the value of synergies expected to be realized and the assemblage of all assets that enable us to create new client relationships, neither of which qualify as separate amortizable intangible assets. Goodwill arising from the acquisition of TSI is considered deductible for tax purposes. Preliminary Purchase Price Initial purchase price $ 50,449 Fair value of contingent consideration 3,700 Payment for option to early terminate lease 2,000 Working capital adjustment ( 430 ) Total preliminary purchase price $ 55,719 Preliminary fair value of the net tangible assets acquired and liabilities assumed: Cash and cash equivalents $ 717 Accounts receivable 2,011 Contract assets 1,415 Prepaid expense and other assets 308 Equipment and improvements 879 Contract assets, net of current 2,581 Operating lease assets 957 Deferred income tax asset 1,274 Other assets 50 Accounts payable ( 1,773 ) Accrued compensation and related benefits ( 917 ) Contract liabilities ( 6,247 ) Operating lease liabilities ( 533 ) Other current liabilities ( 964 ) Contract liabilities, net of current ( 11,644 ) Operating lease liabilities, net of current ( 639 ) Total preliminary net tangible assets acquired and liabilities assumed ( 12,525 ) Preliminary fair value of identifiable intangible assets acquired: Goodwill 54,544 Re-acquired rights 6,250 Customer relationships 5,500 Data health database 1,950 Total identifiable intangible assets acquired 68,244 Total preliminary purchase price $ 55,719 The re-acquired rights intangible asset will be amortized over 4 years, the acquired customer relationships intangible assets will be amortized over 11 years, and the acquired data health database intangible asset will be amortized over 3 years. The weighted average amortization period for the acquired TSI intangible assets is 6.8 years. We incurred $ 2,004 of acquisition related costs during the year ended March 31, 2023, which are included as a component of selling, general and administrative expense in the consolidated statements of net income and comprehensive income. The results of operations of TSI have been included in our consolidated results of operations since the date of acquisition. The results of operations of TSI were not material to our consolidated results of operations for the year ended March 31, 2023. Disposition of Commercial Dental Assets On July 26, 2022, we executed an Asset Purchase Agreement for the sale of certain non-strategic dental related (“Commercial Dental”) assets for $ 12,000 , subject to certain holdback and other adjustments. Total consideration consisted of $ 11,253 in cash received and $ 600 additional cash expected to be received approximately twelve months from the close date. We recognized a preliminary gain on disposition of $ 10,296 in our consolidated statement of net income and comprehensive income as a component of other income (expense). The gain was measured as the total consideration received and expected to be received, less net assets and liabilities included in the transaction, consisting primarily of previously capitalized dental related software development costs, and contract liabilities, less direct incremental transaction costs. The impact of the disposition was not significant and does not qualify for reporting as a discontinued operation because it did not represent a strategic shift that would have a major effect on our operations and financial results. |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. G oodwill We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). We operate as one segment and have a single reporting unit. The measures evaluated by our chief operating decision maker (“CODM”), consisting of the Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. During the quarter ended June 30, 2022, we performed a qualitative assessment, which indicated that it was more likely than not that the fair value of goodwill exceeded its net carrying value and, therefore, additional impairment testing was not deemed necessary. We also did not identify any events or circumstances that would require an interim goodwill impairment test. We do not amortize goodwill as it has been determined to have an indefinite useful life. The carrying amount of goodwill as of March 31, 2023 was $ 321,756 . The carrying amount of goodwill as of March 31, 2022 was $ 267,212 . The increase in our goodwill balance in the current fiscal year was due to our acquisition of TSI (see Note 8). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 10. Intang ible Assets Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: March 31, 2023 Customer Trade Names Software Re-acquired Rights Data Health Database Total Gross carrying amount $ 44,700 $ 250 $ 25,700 $ 6,250 $ 1,950 $ 78,850 Accumulated amortization ( 32,918 ) ( 166 ) ( 16,060 ) ( 521 ) ( 217 ) ( 49,882 ) Net intangible assets $ 11,782 $ 84 $ 9,640 $ 5,729 $ 1,733 $ 28,968 March 31, 2022 Customer Trade Names Software Total Gross carrying amount $ 39,200 $ 250 $ 49,000 $ 88,450 Accumulated amortization ( 29,824 ) ( 116 ) ( 34,207 ) ( 64,147 ) Net intangible assets $ 9,376 $ 134 $ 14,793 $ 24,303 Amortization expense related to the customer relationships, trade names, and re-acquired rights intangible assets recorded as operating expenses in the consolidated statements of net income and comprehensive income was $ 3,665 , $ 3,525 , and $ 4,449 for the years ended March 31, 2023, 2022 and 2021, respectively. Amortization expense related to the software technology and data health database intangible assets recorded as cost of revenue was $ 5,370 , $ 8,872 , and $ 16,660 for the years ended March 31, 2023, 2022, and 2021, respectively. During the year ended March 31, 2023, we retired $ 10,500 of fully amortized software technology related to our Entrada acquisition and $ 12,800 of fully amortized software technology related to our EagleDream acquisition. The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of March 31, 2023: Estimated Remaining Amortization Expense Operating Cost of Total For the year ended March 31, 2024 $ 4,754 $ 4,223 $ 8,977 2025 4,180 4,223 8,403 2026 3,596 2,684 6,280 2027 2,232 243 2,475 2028 and beyond 2,833 — 2,833 Total $ 17,595 $ 11,373 $ 28,968 |
Capitalized Software Costs
Capitalized Software Costs | 12 Months Ended |
Mar. 31, 2023 | |
Research and Development [Abstract] | |
Capitalized Software Costs | 11. Capitalize d Software Costs Our capitalized software costs are summarized as follows: March 31, 2023 March 31, 2022 Gross carrying amount $ 131,791 $ 110,155 Accumulated amortization ( 77,275 ) ( 66,197 ) Net capitalized software costs $ 54,516 $ 43,958 Amortization expense related to capitalized software costs was $ 22,571 , $ 23,016 , and $ 20,108 for the years ended March 31, 2023, 2022, and 2021, respectively, and is recorded as cost of revenue in the consolidated statements of net income and comprehensive income. During the year ended March 31, 2023, we retired $ 10,562 of fully amortized capitalized software costs that are no longer being utilized by our client base. The following table presents the remaining estimated amortization of capitalized software costs as of March 31, 2023. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. For the year ended March 31, 2024 $ 27,600 2025 16,200 2026 8,900 2027 1,816 Total $ 54,516 |
Debt
Debt | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 12. D ebt Convertible Senior Notes On November 1, 2022, we issued $ 275,000 in aggregate principal amount of 3.75 % Convertible Senior Notes due 2027 (“Notes”). The Notes were issued pursuant to, and are governed by, an indenture, dated as of November 1, 2022 (“Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee. Net proceeds from the issuance of the Notes were approximately $ 266,517 , after deducting issuance costs totaling $ 8,483 . The Notes will accrue interest at a rate of 3.75 % per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2023. The Notes will mature on November 15, 2027 , unless earlier repurchased, redeemed or converted. Noteholders may convert their notes at their option only in the following circumstances: • during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on December 31, 2022, if the last reported sale price per share of our common stock exceeds 130 % of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; • during the five consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) in which the trading price per $ 1 principal amount of notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; • upon the occurrence of certain corporate events or distributions on our common stock, as described in the Indenture; • if we call such notes for redemption; and • at any time from, and including, August 16, 2027 until the close of business on the second scheduled trading day immediately before the maturity date. We will settle conversions by paying or delivering, as applicable, cash and, if applicable, shares of common stock, at our election, based on the applicable conversion rate(s). However, upon conversion of any Notes, the conversion value, which will be determined over an observation period consisting of 60 trading days, will be paid in cash up to at least the principal amount of the Notes being converted. The initial conversion rate is 38.9454 shares of common stock per $ 1 principal amount of Notes, which represents an initial conversion price of approximately $ 25.68 per share of common stock. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. The customary make-whole adjustments were designed in a manner such that the additional number of shares is consistent with the lost time value of the conversion option. Notwithstanding anything to the contrary, in no event will the conversion rate be increased to a number that exceeds 52.5762 shares of our common stock per $ 1 principal amount of Notes. The Notes will be redeemable, in whole or in part (subject to certain limitations described below), at our option at any time, and from time to time, on or after November 20, 2025, and before the 61st scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of our common stock exceeds 130 % of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. However, we may not redeem less than all of the outstanding Notes unless at least $ 100,000 aggregate principal amount of Notes are outstanding and not called for redemption as of the time we send the related redemption notice. The redemption price will be a cash amount equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, calling any Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted with a conversion date that is on or after the date we send the related redemption notice and on or before the second business day immediately before the related redemption date. If we elect to redeem less than all of the outstanding Notes, then the redemption will not constitute a make-whole fundamental change with respect to the Notes not called for redemption, and holders of the Notes not called for redemption will not be entitled to an increased conversion rate for such Notes on account of the redemption. If certain corporate events that constitute a “Fundamental Change” (as defined in the Indenture) occur, then, subject to certain exceptions, noteholders may require us to repurchase their Notes at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to our common stock. The Notes will be our senior, unsecured obligations and will be (i) equal in right of payment with our existing and future senior, unsecured indebtedness; (ii) senior in right of payment to our existing and future indebtedness that is expressly subordinated to the Notes; (iii) effectively subordinated to our existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables. The Notes are recorded net of issuance costs as noncurrent liabilities in the consolidated balance sheets. The net carrying value of the Notes as of March 31, 2023 is as follows: March 31, 2023 Principal amount $ 275,000 Unamortized issuance costs ( 8,157 ) Carrying value, net $ 266,843 The debt issuance costs of the Notes are being amortized using the effective interest method. The effective interest rate of the Notes is 4.48 %. Interest expense related to the Notes was $ 4,240 for the year ended March 31, 2023. Amortization of debt issuance costs related to the Notes was $ 326 for the year ended March 31, 2023. Line of Credit On March 12, 2021, we entered into a $ 300,000 second amended and restated revolving credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”), U.S. Bank National Association and Bank of the West, as co-syndication agents, and certain other agents and lenders. The Credit Agreement replaces our prior $ 300,000 amended and restated revolving credit agreement, originally entered into on January 4, 2016 and amended on March 29, 2018. The Credit Agreement provides a subfacility of up to $ 10,000 for letters of credit and a subfacility of up to $ 10,000 for swing-line loans. The Credit Agreement also provides us with the ability to obtain up to $ 150,000 in the aggregate of additional revolving credit commitments and/or term loans thereunder (i.e., in excess of $ 300,000 ) upon satisfaction of certain conditions, including receipt of commitments from new or existing lenders to provide such additional revolving credit commitments and/or term loans. The Credit Agreement contains provisions to accommodate the replacement of the existing LIBOR-based rate with a SOFR based rate upon a triggering event. On May 17, 2022, we entered into that certain Amendment No. 1 to Credit Agreement (the “First Amendment”) with the Administrative Agent and the lenders party thereto to amend the existing Credit Agreement. The First Amendment modifies the Credit Agreement to increase our net leverage ratio maintenance covenant from 3.75 x to 4.00 x and increase the related adjusted covenant period option (available upon the consummation of certain acquisitions) from 4.25 x to 4.75 x, in each case, commencing with the reporting period ending June 30, 2022. The First Amendment also makes certain updates to the conditions restricting the making of certain dividends, distributions, and other restricted payments by the Company so that such conditions are based on the our net leverage ratio (as set forth in the Credit Agreement) rather than our total leverage ratio, to increase the dollar cap for such restricted payments that can be made without satisfying leverage conditions from $ 11,500 to $ 25,000 , and to increase flexibility in cash netting calculations in connection with the making of restricted payments. On October 27, 2022, the Company entered into that certain Amendment No. 2 to Credit Agreement (the “Second Amendment”) with the Administrative Agent and the lenders party thereto. The Second Amendment modifies the Credit Agreement to make certain updates to the conditions restricting the making of certain dividends, distributions, and other restricted payments by the Company so that the Company’s compliance with the net leverage ratio governor contained in such conditions is calculated net of the net cash proceeds of the Notes issued pursuant to the Indenture. The Credit Agreement matures on March 12, 2026 and the full balance of the revolving loans and all other obligations under the Credit Agreement must be paid at that time. In addition, we are required to prepay the revolving loan balance if at any time the aggregate principal amount outstanding under the Credit Agreement exceeds the aggregate commitments thereunder. The Credit Agreement is secured by substantially all of our existing and future property and our material domestic subsidiaries. The revolving loans under the Credit Agreement will be available for letters of credit, permitted acquisitions, working capital and general corporate purposes. We were in compliance with all financial and non-financial covenants under the Credit Agreement as of March 31, 2023. As of March 31, 2023 and 2022, we had no outstanding loans and $ 300,000 of unused credit under the Credit Agreement. During the years ended March 31, 2023, 2022, and 2021, we recorded $ 1,004 , $ 791 , and $ 2,541 of interest expense (excluding amortization of deferred debt issuance costs), respectively. The weighted average interest rates were approximately 5.3 %, 0.0 %, and 2.2 % for the years ended March 31, 2023, 2022, and 2021, respectively. Costs incurred in connection with securing the Credit Agreement, including fees paid to legal advisors and third parties, are deferred and amortized to interest expense over the term of the Credit Agreement. Deferred debt issuance costs are reported as a component of other assets on the consolidated balance sheets. As of March 31, 2023, total unamortized debt issuance costs were $ 1,498 . As of March 31, 2022, total unamortized debt issuance costs were $ 2,006 . During the years ended March 31, 2023, 2022, and 2021, we recorded $ 508 , $ 508 , and $ 1,026 , respectively, in amortization of deferred debt issuance costs, including amounts written off for the year ended March 31, 2021. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | 13. Composition of Certain Financial Statement Captions Cash, cash equivalents, and restricted cash are summarized as follows: March 31, 2023 March 31, 2022 Cash and cash equivalents $ 98,719 $ 59,829 Restricted cash and cash equivalents 7,269 6,918 Cash, cash equivalents, and restricted cash $ 105,988 $ 66,747 Prepaid expenses and other current assets are summarized as follows: March 31, 2023 March 31, 2022 Prepaid expenses $ 26,365 $ 24,229 Capitalized commissions costs 13,813 11,698 Accrued interest on marketable securities 699 — Other current assets 2,039 1,175 Prepaid expenses and other current assets $ 42,916 $ 37,102 Equipment and improvements are summarized as follows: March 31, 2023 March 31, 2022 Computer equipment $ 35,019 $ 36,293 Internal-use software 20,064 19,001 Leasehold improvements 7,067 13,227 Furniture and fixtures 4,871 9,579 Equipment and improvements, gross 67,021 78,100 Accumulated depreciation and amortization ( 60,600 ) ( 68,980 ) Equipment and improvements, net $ 6,421 $ 9,120 Other assets are summarized as follows: March 31, 2023 March 31, 2022 Capitalized commission costs $ 26,104 $ 21,654 Deposits 7,447 5,793 Debt issuance costs 1,498 2,006 Other noncurrent assets 9,189 9,573 Other assets $ 44,238 $ 39,026 Accrued compensation and related benefits are summarized as follows: March 31, 2023 March 31, 2022 Accrued bonus $ 15,550 $ 27,311 Accrued vacation 13,271 11,785 Accrued commissions 5,166 5,353 Accrued payroll and other 2,254 470 Deferred payroll taxes — 3,817 Accrued compensation and related benefits $ 36,241 $ 48,736 Other current and noncurrent liabilities are summarized as follows: March 31, 2023 March 31, 2022 Accrued legal settlement (1) $ 33,990 $ — Care services liabilities 7,269 6,918 Customer credit balances and deposits 5,417 4,622 Sales returns reserves and other customer liabilities 5,390 5,725 Accrued interest payable 4,244 — Accrued consulting and outside services 3,957 4,799 Accrued royalties 3,248 3,557 Accrued employee benefits and withholdings 3,195 3,535 Accrued EDI expense 3,064 2,168 Accrued outsourcing costs 3,023 2,264 Accrued self insurance expense 2,359 2,208 Accrued taxes payable 1,746 540 Accrued hosting costs 873 12,510 Accrued legal expense 782 1,439 Other accrued expenses 5,242 3,248 Other current liabilities $ 83,799 $ 53,533 Uncertain tax positions $ 3,950 $ 4,196 Contingent consideration related to acquisitions, noncurrent 3,800 — Other liabilities 524 374 Other noncurrent liabilities $ 8,274 $ 4,570 (1) Refer to Note 17, "Commitments, Guarantees and Contingencies" for more details. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Inco me Taxes The provision for (benefit of) income taxes consist of the following components: Fiscal Year Ended March 31, 2023 2022 2021 Current: Federal taxes $ 13,857 $ 1,090 $ 6,562 State taxes 259 1,081 1,226 Foreign taxes 1,781 1,192 826 Total current taxes 15,897 3,363 8,614 Deferred: Federal taxes $ ( 9,562 ) $ 43 $ ( 6,053 ) State taxes 311 ( 379 ) ( 2,068 ) Foreign taxes 312 551 ( 733 ) Total deferred taxes ( 8,939 ) 215 ( 8,854 ) Provision for (benefit of) income taxes $ 6,958 $ 3,578 $ ( 240 ) The provision for (benefit of) income taxes differs from the amount computed at the federal statutory rate as follows: Fiscal Year Ended March 31, 2023 2022 2021 Tax expense at United States federal statutory rate (1) $ 904 $ 1,091 $ 1,948 Items affecting federal income tax rate: Impact of legal and audit settlements 3,339 — ( 56 ) Impact of foreign withholding tax 2,811 — — Executive compensation limitation 2,575 2,068 775 Impact of net operating loss adjustment 1,814 ( 100 ) ( 220 ) State income taxes 1,473 950 572 Impact of foreign operations 311 356 ( 1,203 ) Compensation 66 1,059 865 Non-deductible expenses — ( 27 ) ( 258 ) Impact of deferred adjustments ( 11 ) 188 ( 31 ) Impact of amended returns ( 122 ) 163 ( 9 ) Impact of valuation allowance ( 259 ) ( 882 ) 563 Impact of uncertain tax positions ( 366 ) 1,620 278 Return to provision true-ups ( 511 ) ( 152 ) ( 15 ) Research and development tax credits ( 5,066 ) ( 2,756 ) ( 3,449 ) Provision for (benefit of) income taxes $ 6,958 $ 3,578 $ ( 240 ) (1) Federal statutory rate was 21.0 % for March 31, 2023, 2022 and 2021. The net deferred tax assets and liabilities in the consolidated balance sheets consist of the following: March 31, 2023 March 31, 2022 Deferred tax assets: Compensation and benefits $ 14,506 $ 17,494 Capitalized software 14,226 ( 647 ) Deferred revenue 9,923 9,245 Research and development credit 7,297 7,165 Accrued legal settlement 4,035 — Net operating losses 2,470 6,018 Operating lease liabilities 1,937 3,774 Foreign deferred taxes 1,444 1,755 Allowance for credit losses 1,383 1,658 Accounts receivable 47 511 Total deferred tax assets 57,268 46,973 Deferred tax liabilities: Prepaid expense $ ( 11,656 ) $ ( 10,895 ) Intangibles assets ( 8,845 ) ( 8,703 ) Other ( 1,254 ) ( 630 ) Operating right-of-use assets ( 816 ) ( 1,713 ) Accelerated depreciation ( 351 ) ( 640 ) Valuation allowance ( 4,874 ) ( 5,133 ) Deferred tax assets, net $ 29,472 $ 19,259 The deferred tax assets and liabilities have been shown net in the consolidated balance sheets as noncurrent. As of March 31, 2023 and 2022, we had federal net operating loss (“NOL”) carryforwards of $ 5,709 and $ 10,801 , respectively. The federal NOL carryforwards were inherited in connection with our acquisitions of HealthFusion in January 2016, Gennius in March 2015, Entrada in April 2017, EagleDream in August 2017, and Medfusion in December 2019. The NOL carryforwards expire in various amounts starting in fiscal 2030 for both federal and state tax purposes. As of March 31, 2023, we had state NOL carryforwards of approximately $ 1,272 (tax effected), related to the HealthFusion, Entrada, EagleDream, and Medfusion acquisitions. The utilization of the federal NOL carryforwards is subject to limitations under the rules regarding changes in stock ownership as determined by the Internal Revenue Code. As of March 31, 2023 and 2022, the research and development tax credit carryforward available to offset future federal and state taxes was $ 8,450 and $ 8,155 , respectively. The federal credits include credits inherited in connection with our acquisition of Medfusion in December 2019. The credits expire in various amounts starting in fiscal 2034. We expect to receive the full benefit of the deferred tax assets recorded with the exception of certain foreign and state credits and state NOL carryforwards for which we have recorded a valuation allowance. A one-time transition tax was recognized on our United States income tax on the deemed repatriated cumulative foreign earnings as a result of the Tax Reforms of the Tax Cut and Jobs Act’s (TCJA) during fiscal year March 31, 2018. The Company has historically intended and asserted a business practice of indefinite reinvestment of the earnings of its foreign subsidiaries. During the last quarter of fiscal year March 31, 2023 the foreign business operations influenced the Company’s reevaluation of its historic assertion of indefinite reinvestment. At March 31, 2023, the Company has a tax provision for United States state and/or foreign withholding taxes on approximately $ 24,729 of the offshore foreign earnings, a declared dividend and the initial recognition of a deferred tax liability resulting from the change in the indefinite reversal assertion. The Company will continue to assess its future assertion regarding its intent and ability to reinvest its foreign earnings. The Taxation Laws (Amendment) Act, 2019 was enacted on December 12, 2019 to lower corporate tax rates in India. Beginning March 31, 2023, we opted to elect for the reduced tax rate. The election was not made for various factors for the year ended 2022. Uncertain tax positions A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities and deferred income taxes, net in our consolidated balance sheet, is as follows: Balance as of March 31, 2020 $ 4,192 Additions for prior year tax positions 220 Additions for current year tax positions 635 Reductions for prior year tax positions ( 621 ) Balance as of March 31, 2021 4,426 Additions for prior year tax positions 1,184 Additions for current year tax positions 763 Reductions for prior year tax positions ( 261 ) Balance as of March 31, 2022 6,112 Additions for prior year tax positions 311 Additions for current year tax positions 941 Reductions for prior year tax positions ( 1,453 ) Balance as of March 31, 2023 $ 5,911 During the year ended March 31, 2023, we recorded additional net receivables of $ 365 related to various federal, foreign, and state tax planning benefits recorded in the current year for current and prior year tax positions. If recognized, the total amount of unrecognized tax benefit that would decrease the income tax provision is $ 5,911 . Our practice is to recognize interest related to income tax matters as interest expense in the consolidated statements of net income and comprehensive income. We had approximately $ 461 and $ 286 of accrued interest related to income tax matters as of March 31, 2023 and 2022, respectively. We recognized interest expense of $ 174 , interest expense of $ 199 , and interest income of $ 85 in the years ended March 31, 2023, 2022 and 2021, respectively, related to income tax matters in the consolidated statements of net income and comprehensive income. No penalties related to income tax matters were accrued or recognized in our consolidated financial statements for all periods presented. We are subject to taxation in federal, various state, India, and United Kingdom jurisdictions. We are no longer subject to United States federal income tax examinations or other foreign tax authorities for tax years before fiscal year ended 2019. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2018. We do not anticipate the total unrecognized tax benefits to significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months . Expected timing of cash payments related to the settlement of unrecognized tax benefits is noncurrent and/or unknown. Inflation Reduction Act of 2022 Changes in tax law and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. On August 16, 2022, the United States government enacted the Inflation Reduction Act of 2022 that includes changes to the United States corporate income tax system, including a fifteen percent minimum tax based on “adjusted financial statement income,” which is effective for tax years beginning after December 31, 2022, and a one percent excise tax on repurchases of stock after December 31, 2022. The Company has completed its evaluation of the Inflation Reduction Act and its requirements, as well as its application to our business and determined there were no material impacts at March 31, 2023. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans We provide a 401(k) plan to substantially all of our employees. Participating employees may defer up to the Internal Revenue Service limit per year based on the Internal Revenue Code. The annual contribution is determined by a formula set by our Board of Directors ("Board") and may include matching and/or discretionary contributions. The amount of the Company match is discretionary and subject to change. The retirement plans may be amended or discontinued at the discretion of the Board. Net contributions of $ 5,973 , $ 6,922 and $ 4,625 were made by the Company to the 401(k) plan for the years ended March 31, 2023, 2022, and 2021, respectively. Net contributions for the year ended March 31, 2022 reflect an additional discretionary Company contribution made to eligible employees. We have a deferred compensation plan (the “Deferral Plan”) for the benefit of those employees who qualify. Participating employees may defer up to 75 % of their salary and 100 % of their annual bonus for a Deferral Plan year. In addition, we may, but are not required to, make contributions into the Deferral Plan on behalf of participating employees, and the amount of the Company match is discretionary and subject to change. Each employee's deferrals together with earnings thereon are accrued as part of our long-term liabilities. Investment decisions are made by each participating employee from a family of mutual funds. The deferred compensation liability was $ 8,033 and $ 7,230 at March 31, 2023 and 2022, respectively. To offset this liability, we have purchased life insurance policies on some of the participants. The Company is the owner and beneficiary of the policies and the cash values are intended to produce cash needed to help make the benefit payments to employees when they retire or otherwise leave the Company. We intend to hold the life insurance policy until the death of the plan participant. The cash surrender value of the life insurance policies for deferred compensation was $ 8,060 and $ 8,098 at March 31, 2023 and 2022, respectively. The values of the life insurance policies and our related obligations are included on the consolidated balance sheets in long-term other assets and long-term deferred compensation, respectively. We made contributions of $ 129 , $ 116 and $ 79 to the Deferral Plan for the years ended March 31, 2023, 2022, and 2021, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 16. Stockh olders’ Equity Equity Incentive Plans In October 2005, our shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that our employees and directors may, at the discretion of the Board of Directors (“Board”) or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the 2005 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the 2005 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the 2005 Plan, awards under the 2005 Plan will fully vest under certain circumstances. The 2005 Plan expired on May 25, 2015 . As of March 31, 2023, there were 6,200 outstanding options under the 2005 Plan. In August 2015, our shareholders approved a stock option and incentive plan (the “2015 Plan”) under which 11,500,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance stock awards and other share-based awards. In August 2017, our shareholders approved an amendment to the 2015 Plan, to, among other items, increase the number of shares of common stock reserved for issuance thereunder by 6,000,000 shares, which was further amended in August 2019 as approved by our shareholders, to, among other items, increase the number of shares of common stock reserved for issuance thereunder by an additional 3,575,000 shares. In October 2021, our shareholders approved an amendment and restatement of the Company’s 2015 Equity Incentive Plan (the “Amended 2015 Plan”), to, among other items, increase the number of common stock reserved for issuance thereunder by an additional 1,850,000 shares. The Amended 2015 Plan provides that our employees and directors may, at the discretion of the Board or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the Amended 2015 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the Amended 2015 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the Amended 2015 Plan, awards under the Amended 2015 Plan will fully vest under certain circumstances. As of March 31, 2023, there were 1,124,613 outstanding options, 2,622,317 outstanding shares of restricted stock awards, certain outstanding performance stock unit awards as described further below, and 1,525,929 shares available for future grant under the Amended 2015 Plan. In September 2021, the Board adopted the 2021 Employment Inducement Equity Incentive Plan (the “Inducement Plan”) and initially reserved 1,500,000 shares of common stock for issuance under the Inducement Plan. The Inducement Plan was adopted by the Board without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. In accordance with Rule 5635(c)(4) of the Nasdaq Listing Rules, awards under the Inducement Plan may only be made to an employee who has not previously been an employee or member of the Board or the Board of Directors or any parent or subsidiary, or following a bona fide period of non-employment by the Company or a parent or subsidiary, if he or she is granted such award in connection with his or her commencement of employment with the Company or a subsidiary and such grant is an inducement material to his or her entering into employment with the Company or such subsidiary. The terms of the Inducement Plan are substantially similar to the terms of our Amended 2015 Plan, with the exception that incentive stock options may not be granted under the Inducement Plan. As of March 31, 2023, there were 675,195 outstanding shares of restricted stock awards, 425,666 outstanding performance stock unit awards, and 159,384 shares available for future grant under the Inducement Plan. Stock-Based Compensation The following table summarizes total share-based compensation expense included in the consolidated statements of net income and comprehensive income for the fiscal years ended March 31, 2023, 2022 and 2021: Fiscal Year Ended March 31, 2023 2022 2021 Costs and expenses: Cost of revenue $ 3,082 $ 2,183 $ 1,991 Research and development costs 4,243 4,508 4,036 Selling, general and administrative 26,133 19,861 16,683 Total share-based compensation 33,458 26,552 22,710 Income tax benefit ( 7,641 ) ( 6,221 ) ( 5,415 ) Decrease in net income $ 25,817 $ 20,331 $ 17,295 Share-based compensation expense under our equity incentive plans is based on the number awards that ultimately vest and forfeitures are accounted for as they occur. Stock Options The following table summarizes the stock option transactions during the years ended March 31, 2023, 2022, and 2021: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2020 3,001,350 14.83 4.7 $ — Exercised ( 116,916 ) 16.21 3.3 $ 303 Forfeited/Canceled ( 47,350 ) 18.58 3.7 Expired ( 46,000 ) 29.17 Outstanding, March 31, 2021 2,791,084 $ 14.47 3.7 $ 10,303 Exercised ( 1,248,525 ) 13.76 2.7 $ 2,638 Forfeited/Canceled ( 32,320 ) 19.51 3.0 Expired ( 56,500 ) 18.85 Outstanding, March 31, 2022 1,453,739 $ 14.80 2.9 $ 8,886 Exercised ( 300,926 ) 14.57 1.6 $ 1,623 Forfeited/Canceled ( 20,000 ) 21.27 Expired ( 2,000 ) 15.99 Outstanding, March 31, 2023 1,130,813 $ 14.75 1.7 $ 3,011 Vested and expected to vest, March 31, 2023 1,130,813 $ 14.75 1.7 $ 3,011 Exercisable, March 31, 2023 1,130,813 $ 14.75 1.7 $ 3,011 Share-based compensation expense related to stock options was $ 82 , $ 1,251 and $ 2,536 for the years ended March 31, 2023, 2022, and 2021, respectively. There were no stock options granted during the years ended March 31, 2023, 2022 and 2021. Non-vested stock option award activity during the years ended March 31, 2023, 2022, and 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2020 1,091,672 $ 5.67 Vested ( 605,433 ) 5.40 Forfeited/Canceled ( 26,900 ) 6.80 Outstanding, March 31, 2021 459,339 $ 5.96 Vested ( 391,457 ) 5.74 Forfeited/Canceled ( 17,500 ) 7.96 Outstanding, March 31, 2022 50,382 $ 6.98 Vested ( 50,382 ) 6.98 Outstanding, March 31, 2023 — $ — The total fair value of options vested during the years ended March 31, 2023, 2022, and 2021 was $ 352 , $ 2,248 , and $ 3,272 , respectively. Restricted Stock Awards Restricted stock awards activity during the years ended March 31, 2023, 2022, and 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2020 2,312,780 $ 16.74 Granted 1,222,863 12.04 Vested ( 1,053,792 ) 16.22 Canceled ( 218,282 ) 15.30 Outstanding, March 31, 2021 2,263,569 $ 14.58 Granted 2,391,578 15.87 Vested ( 1,109,520 ) 15.17 Canceled ( 302,864 ) 14.94 Outstanding, March 31, 2022 3,242,763 $ 15.30 Granted 1,840,211 18.23 Vested ( 1,479,453 ) 15.45 Canceled ( 306,009 ) 16.82 Outstanding, March 31, 2023 3,297,512 $ 16.72 Share-based compensation expense related to restricted stock awards was $ 24,925 , $ 20,821 , and $ 16,371 for the years ended March 31, 2023, 2022, and 2021, respectively. The weighted-average grant date fair value for the restricted stock awards was estimated using the market price of the common stock on the date of grant. The fair value of the restricted stock awards is amortized on a straight-line basis over the vesting period, which is generally between one to three years . As of March 31, 2023, $ 39,407 of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of 1.8 years. This amount does not include the cost of new restricted stock awards that may be granted in future periods. The total fair value of restricted stock awards vested as of the vesting dates were $ 26,929 , $ 18,156 and $ 14,138 for the years ended March 31, 2023, 20221, and 2021. Net Share Settlements Restricted stock awards and performance stock units are generally net share-settled upon vesting to cover the required withholding taxes, and the remaining share amount is transferred to the employee. The majority of restricted stock awards and performance stock units that vested during the years ended March 31, 2023, 2022 and 2021 were net-share settled such that we withheld shares with value equivalent to the employees’ applicable income tax obligations for the applicable income and other employment taxes and remitted the equivalent amount of cash to the appropriate taxing authorities. Total payments for the employees’ applicable income tax obligations are reflected as a financing activity within the consolidated statements of cash flows. The total shares withheld during the years ended March 31, 2023, 2022 and 2021 were 592,165 , 356,490 and 349,895 , respectively, and were based on the value of the restricted stock awards and performance stock units on their vesting date as determined by our closing stock price. These net-share settlements had the effect of share repurchases by us as they reduced the number of shares that would have otherwise been issued at the vesting date. Performance Stock Units and Awards On December 29, 2016, the Compensation Committee of the Board granted 123,082 performance stock awards to certain executive officers, of which no shares are currently outstanding and 102,813 shares were ultimately earned and issued during the performance period. The performance stock awards vested in four equal increments on each of the first four anniversaries of the grant date, subject in each case to the executive officer’s continued service and achievement of certain Company performance goals, including strong stock price performance. On October 23, 2018, the Compensation Committee of the Board approved 248,140 performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team, of which no shares are currently outstanding and no shares were ultimately earned or issued during the performance period. Approximately 34 % of the performance stock units were tied to our cumulative 3-year total shareholder return, 33 % were tied to our fiscal year 2021 revenue, and 33 % were tied to our fiscal year 2021 adjusted earnings per share goals, each as specifically defined in the equity award agreements. The number of shares to be issued was to vary between 50 % and 200 % of the number of performance stock units depending on performance, and no such shares were to be issued if threshold performance was not achieved. The weighted-average grant date fair value of the awards was $ 17.84 per share, which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return and using a probability-adjusted achievement rate combined with the market price of the common stock on the date of grant for the awards based on revenue and earnings per share targets. On December 26, 2019 and January 27, 2020, the Compensation Committee of the Board approved a total of 279,587 performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team, which vest only in the event certain performance goals are achieved and with continuous service through the date the goals are certified. Approximately 80 % of the performance stock units are tied to the Company’s fiscal year 2021 revenue goal and 20 % are tied to the Company’s fiscal year 2022 revenue goal. Performance stock unit awards funded for fiscal year 2021 and fiscal year 2022 revenue performance will be modified for cumulative 3-year total shareholder return (“TSR”) on the three-year grant anniversary, which is also the cliff vest date. The number of shares to be issued may vary between 42.5 % and 172.5 % of the number of performance stock units depending on performance, and no such shares will be issued if threshold performance is not achieved. The weighted-average grant date fair value of the awards was $ 16.02 per share, which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return and using a probability-adjusted achievement rate combined with the market price of the common stock on the date of grant for the awards based on revenue targets. The performance period for these awards ended December 27, 2022 and 157,735 units were earned and issued as shares during the year ended March 31, 2023. No further shares will be issued under this grant. On October 26, 2020, the Compensation Committee of the Board approved 408,861 performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team, which vest only in the event certain performance goals are achieved and with continuous service through the date the goals are certified. Approximately 80 % of the performance stock units are tied to the Company’s fiscal year 2022 revenue goal and 20 % are tied to the Company’s fiscal year 2023 revenue goal. Performance stock unit awards funded for fiscal year 2022 and fiscal year 2023 revenue performance will be modified for cumulative 3-year TSR on the three-year grant date anniversary, which is also the cliff vest date. The number of shares to be issued may vary between 8.5 % and 199.5 % of the number of target performance stock units depending on performance, and no such shares will be issued if threshold performance is not achieved. The weighted-average grant date fair value of the awards was $ 16.25 per share, which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return and using a probability adjusted achievement rate combined with the market price of the common stock on the date of grant for the awards based on revenue targets. On September 20, 2021, the Compensation Committee of the Board approved an award of 450,000 performance stock units to be granted to our Chief Executive Officer under the Inducement Plan. The award has a grant date of September 22, 2021 and portions of the award vest upon both the attainment of five separate pre-determined stock price milestones during a five-year performance period and continued service over a period of three years following the grant date. The fair value and derived service period for each share-price milestone tranche was estimated separately using a Monte-Carlo based valuation model. The expense for each share-price milestone tranche is amortized over the longer of the derived service period or the explicit service period. The weighted-average grant date fair value of the award was $ 10.52 per share. During the year ended March 31, 2023, 24,334 units were earned and issued as shares. On October 26, 2021, the Compensation Committee of the Board approved 476,713 performance stock units to be granted to certain members of the executive leadership team. The awards have a grant date of November 2, 2021 and portions of the award vest upon both the attainment of four separate pre-determined stock price milestones through September 22, 2026 and continued service over a period of three years following the grant date. The fair value and derived service period for each share-price milestone tranche was estimated separately using a Monte-Carlo based valuation model. The expense for each share-price milestone tranche is amortized over the longer of the derived service period or the explicit service period. The weighted-average grant date fair value of the award was $ 13.02 per share. During the year ended March 31, 2023, 33,998 units were earned and issued as shares. On October 25, 2022, the Compensation Committee of the Board approved 475,337 target performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team. The awards have a grant date of October 28, 2022 and vest only in the event certain performance goals are achieved and with continuous service through the date the goals are certified. Approximately 50 % of the performance stock units are tied to the Company’s fiscal year 2025 revenue goal and 50 % are tied to the Company’s fiscal year 2025 EBITDA goal. Performance stock unit awards funded will be modified for cumulative 3-year TSR on the three-year grant date anniversary, which is also the cliff vest date. The number of shares to be issued may vary between 0 % and 210 % of the number of target performance stock units depending on performance, and no such shares will be issued if threshold performance is not achieved. The weighted-average grant date fair value of the awards was $ 22.81 per share, which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return and using a probability adjusted achievement rate combined with the market price of the common stock on the date of grant. Share-based compensation expense related to the performance stock units and awards was $ 7,798 , $ 3,827 and $ 3,284 for the years ended March 31, 2023, 2022 and 2021, respectively. The expense for the year ended March 31, 2022 includes a benefit recognized primarily due to the cancellation of awards associated with the resignation of our former Chief Executive Officer. As of March 31, 2023, $ 5,182 of total estimated unrecognized compensation costs related to performance stock units and awards is expected to be recognized over a weighted-average period of 2.2 years. This amount does not include the cost of new performance stock units and awards that may be granted in future periods. Employee Share Purchase Plan On August 11, 2014, our shareholders approved an Employee Share Purchase Plan (the “Purchase Plan”) under which 4,000,000 shares of common stock were reserved for future grant. The Purchase Plan allows eligible employees to purchase shares through payroll deductions of up to 15 % of total base salary at a price equal to 90 % of the lower of the fair market values of the shares as of the beginning or the end of the corresponding offering period. Any shares purchased under the Purchase Plan are subject to a six-month holding period. Employees are limited to purchasing no more than 1,500 shares on any single purchase date and no more than $ 25,000 in total fair market value of shares during any one calendar year. As of March 31, 2023, we have issued 1,050,990 shares under the Purchase Plan and 2,949,010 shares are available for future issuance. Share-based compensation expense recorded for the employee share purchase plan was $ 653 , $ 553 , and $ 519 for the years ended March 31, 2023, 2022, and 2021, respectively. Share Repurchase Program In October 2021, the Board authorized a share repurchase program under which we may repurchase up to $ 60,000 of our outstanding shares of common stock through March 2023. In October 2022, the Board authorized a new share repurchase program under which we may repurchase up to an additional $ 100,000 of outstanding shares of our common stock through March 2025. The timing and amount of any share repurchases under the share repurchase programs will be determined by our management at its discretion based on ongoing assessments of the capital needs of the business, the market price of our common stock and general market conditions. Share repurchases under the programs may be made through a variety of methods, which may include open market purchases, in block trades, accelerated share repurchase transactions, exchange transactions, or any combination of such methods. Repurchases may also be made under Rule 10b5-1 plans, which permit shares of common stock to be repurchased through pre-determined criteria. The programs do not obligate the Company to acquire any particular amount of our common stock, and the share repurchase programs may be suspended or discontinued at any time at our discretion. During the year ended March 31, 2023, we repurchased 2,679,336 shares of common stock for a total of $ 49,878 at a weighted-average share repurchase price of approximately $ 18.62 . During the year ended March 31, 2022, we repurchased 2,169,896 shares of common stock for a total of $ 35,874 at a weighted-average share repurchase price of approximately $ 16.53 . As of March 31, 2023, $ 74,303 remained available for share repurchases pursuant to the share repurchase programs. Of the shares repurchased in the year ended March 31, 2022, a total of 2,000,000 shares were purchased from a shareholder who previously owned 7.4 % of our total shares of common stock for an aggregate purchase price of approximately $ 33,100 . The shares repurchased represented approximately 3.0 % of our total shares of common stock outstanding at March 31, 2022. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 17. Commitments, Guara ntees and Contingencies Commitments and Guarantees Our software license agreements include a performance guarantee that our software products will substantially operate as described in the applicable program documentation for a period of 365 days after delivery. To date, we have not incurred any significant costs associated with our performance guarantee or other related warranties and do not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. Certain arrangements also include performance guarantees related to response time, availability for operational use, and other performance-related guarantees. Certain arrangements also include penalties in the form of maintenance credits should the performance of the software fail to meet the performance guarantees. To date, we have not incurred any significant costs associated with these warranties and do not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. We historically have accepted sales returns under limited circumstances. We estimate expected sales returns and other forms of variable consideration considering our customary business practice and contract-specific facts and circumstances, and we consider such estimated potential returns as variable consideration when allocating the transaction price to the extent it is probable that there will not be a significant reversal of cumulative revenue recognized. Our standard sales agreements contain an indemnification provision pursuant to which we shall indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any United States patent, any copyright or other intellectual property infringement claim by any third-party with respect to our software. As we have not incurred any significant costs to defend lawsuits or settle claims related to these indemnification agreements, we believe that our estimated exposure on these agreements is currently minimal. Accordingly, we have no liabilities recorded for these indemnification obligations. We also have contingent consideration liabilities related to our acquisitions. Refer to Note 8, “Business Combinations and Disposals” and Note 5, “Fair Value Measurements” of our notes to consolidated financial statements included elsewhere in this Report for further information. Contingencies In addition to commitments and obligations in the ordinary course of business and routine legal proceedings, we are currently subject to various non-ordinary course legal proceedings, claims and investigations, as described below. We accrue estimates for resolution of any legal proceeding and other contingencies when losses are probable and reasonably estimable in accordance with ASC 450, Contingencies (“ASC 450”) . No less than quarterly, and as facts and circumstances change, we review the status of each significant matter underlying a legal proceeding or claim and assess our potential financial exposure. We accrue a liability for an estimated loss if the potential loss from any legal proceeding or claim is considered probable and the amount can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable, and accruals are based only on the information available to our management at the time the judgment is made, which may prove to be incomplete, or inaccurate or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. The outcome of legal proceedings is inherently uncertain, and we may incur substantial defense costs and expenses defending any of these matters. If one or more of these legal proceedings were resolved against or settled by us in a reporting period for amounts in excess of our management’s expectations, our consolidated financial statements for that and subsequent reporting periods could be materially adversely affected. In addition, we could be forced to incur increased compliance costs or change the manner in which we operate our business, which could have a material adverse impact on our business, results of operations, cash flows or financial condition. DOJ Investigation Commencing in April 2017, we have received requests for documents and information from the United States Attorney's Office for the District of Vermont ("DOJ") and other government agencies in connection with an investigation concerning the certification we obtained for our software under the United States Department of Health and Human Services' Electronic Health Record (EHR) Incentive Program. The requests for information relate to, among other things: (a) data used to determine objectives and measures under the Meaningful Use (MU) and the Physician Quality Reporting System (PQRS) programs, (b) our EHR product and its performance, including defects that relate to patient safety or meaningful use certifications, (c) the software code used in certifying our EHR software and information, and (d) marketing programs and payments provided for the referral of EHR business. We continue to respond to the government’s requests and are engaged in discussions on the status and potential resolution of their ongoing investigation. In late 2022, the United States Attorney’s Office informed NextGen of the existence of a sealed qui tam lawsuit concerning the issues NextGen has been discussing with their Office. While we have not yet reached a final, binding settlement agreement with the DOJ, we have reached an agreement in principle and have recorded legal settlement expense to reflect the anticipated payment to the DOJ if the settlement currently being negotiated is consummated. We also recorded an estimated amount of expense associated with attorneys’ fees that upon a final settlement would be paid to the private law firm that brought the original qui tam lawsuit. Total expenses recorded in the consolidated statements of net income and comprehensive income was $ 35,095 , which consists of approximately $ 32,400 in settlement expenses and $ 2,695 in legal fees related to the mediation and settlement, and $ 33,990 is reflected as accrued legal settlement within other current liabilities in the consolidated balance sheets as of March 31, 2023. Despite the above, the Company may not be able to reach final agreement with the DOJ on any settlement or otherwise consummate a settlement. If the Company is unable to consummate the settlement, it may face litigation which could lead to material damages, penalties, fines, judgments, or other liabilities. In addition, any potential litigation would require time and effort, which would result in additional costs to us including substantial attorneys’ fees. The unfavorable resolution of any litigation related to the above could have a material adverse effect on our business, results of operations, financial condition or cash flows. Security Incident On April 28, 2023, the Company issued written notification to approximately 1 million individuals notifying them that NextGen Healthcare, Inc. had discovered that certain of their personal information (name, address, date of birth, and social security number) had been accessed without authorization during a recent data security incident impacting the NextGen Office system. Following notification of the data breach, NextGen Healthcare, Inc. was named as a defendant in thirteen putative class action lawsuits in the United States District Court for the Northern District of Georgia, all of which assert various claims stemming from the data breach and NextGen Healthcare’s alleged failure to safeguard personal information. These lawsuits seek monetary damages, injunctive and declaratory relief, and attorneys’ fees and costs. We believe we have meritorious defenses to these actions and intend to vigorously oppose the claims asserted in these complaints. We cannot reasonably estimate the range of potential losses that may be associated with these lawsuits because of the early stage of each lawsuit. We also cannot assure you that we will not become subject to other lawsuits, inquiries, or claims relating to or arising from the March incident. Although we maintain cyber-technology liability insurance, it is possible that the ultimate amount paid by us, if we are unsuccessful in defending all of the litigation, will be in excess of our cyber-technology liability insurance coverage applicable to claims of this nature. Hussein Litigation On October 7, 2013, a complaint was filed against our Company and certain of our officers and directors in the Superior Court of the State of California for the County of Orange, captioned Ahmed D. Hussein v. Sheldon Razin, Steven Plochocki, Quality Systems, Inc. and Does 1-10, inclusive, No. 30-2013-00679600-CU-NP-CJC, by Ahmed Hussein, a former director and significant shareholder of our Company. The amended complaint generally alleges fraud and deceit, constructive fraud, negligent misrepresentation and breach of fiduciary duty in connection with statements made to our shareholders regarding our financial condition and projected future performance. The amended complaint seeks actual damages, exemplary and punitive damages and costs. Hussein’s breach of fiduciary duty claims were dismissed on demurrer, and we filed an answer and cross-complaint against Hussein, alleging that he breached fiduciary duties owed to the Company. On September 16, 2015, the Court granted summary judgment with respect to Hussein’s remaining claims, dismissing all claims against us. The cross-complaint against Hussein went to trial, but the Court granted judgment in favor of Hussein on our cross-complaint. Final judgment over Hussein’s claims and our cross-claims was entered on January 9, 2018. Hussein appealed the order granting summary judgment over his claims, and we appealed the court’s decision granting Hussein’s motion for judgment on our cross-complaint. On October 8, 2019, the California State Court of Appeal for the Fourth Appellate District, Division Three, reversed the Superior Court’s grant of summary judgment on Hussein’s affirmative claims and affirmed the trial court’s judgment on the Company’s breach of fiduciary duty claims against Hussein. As a result, the case returned to the trial court for resolution of Hussein’s claims against us. On July 29, 2021, the jury rendered a verdict in favor of the Company and the individual defendants on all counts. Hussein filed a Motion for New Trial, which the Court denied. Hussein has appealed the jury verdict in favor of the Company and the individual defendants. Hussein, the Company, and the individual defendants have appealed the trial court’s denial of requests for recovery of costs arising from the litigation. The parties have completed briefing on the various appeals. We expect the California State Court of Appeal for the Fourth Appellate District, Division Three, to hear arguments and issue its ruling on the various appeals in 2023. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Mar. 31, 2023 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | 18. Restruc turing Costs During the year ended March 31, 2023, we implemented a business restructuring plan as part of our continued efforts to preserve and grow the value of the Company through client-focused innovations while reducing our cost structure. We recorded restructuring costs of $ 2,473 , consisting of payroll-related costs, such as severance, outplacement costs, and continuing healthcare coverage, associated with the involuntary separation of employees pursuant to a one-time benefit arrangement, within operating expenses in our consolidated statements of net income and comprehensive income. As of March 31, 2023, the remaining restructuring liability associated with payroll-related costs was $ 1,990 . During the year ended March 31, 2022, we recorded restructuring costs of $ 539 , consisting of payroll-related costs, such as severance, outplacement costs, and continuing healthcare coverage, associated with the involuntary separation of employees pursuant to a one-time benefit arrangement, within operating expenses in our consolidated statements of net income and comprehensive income. The payroll-related costs were substantially paid as of March 31, 2023. During the year ended March, 31, 2021, we recorded $ 2,562 of restructuring costs, consisting of payroll-related costs, such as severance, outplacement costs, and continuing healthcare coverage, associated with the involuntary separation of employees pursuant to a one-time benefit arrangement within operating expenses in our consolidated statements of net income and comprehensive income, which was related to our decision to execute a reduction in our workforce of less than 3 % and other temporary cost reductions in response to the COVID-19 pandemic that we announced in May 2020. These amounts were accrued when it was probable that the benefits would be paid, and the amounts were reasonably estimable. The payroll-related costs were substantially paid as of March 31, 2021. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Sales Return Reserve (in thousands) Balance at Additions Deductions Balance at March 31, 2023 $ 3,378 $ 6,248 $ ( 6,904 ) $ 2,722 March 31, 2022 $ 3,593 $ 5,381 $ ( 5,596 ) $ 3,378 March 31, 2021 $ 4,191 $ 6,595 $ ( 7,193 ) $ 3,593 Allowance for Credit Losses (in thousands) Balance at Additions Deductions Balance at March 31, 2023 $ 3,888 $ 1,914 $ ( 1,940 ) $ 3,862 March 31, 2022 $ 4,205 $ 1,915 $ ( 2,232 ) $ 3,888 March 31, 2021 $ 3,549 $ 2,834 $ ( 2,178 ) $ 4,205 Valuation Allowance for Deferred Taxes (in thousands) Balance at Additions to Acquisition Deductions Balance at Year March 31, 2023 $ 5,133 $ 1,500 $ — $ ( 1,759 ) $ 4,874 March 31, 2022 $ 6,015 $ 7 $ — $ ( 889 ) $ 5,133 March 31, 2021 $ 5,452 $ 877 $ — $ ( 314 ) $ 6,015 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business NextGen Healthcare is a leading provider of innovative, cloud-based, healthcare technology solutions that empower ambulatory healthcare providers to manage the risk and complexity of delivering care in the United States healthcare system. Our combination of technological breadth, depth, and domain expertise positions us as a preferred solution provider and trusted advisor for our clients. In addition to highly configurable core clinical and financial capabilities, our portfolio includes tightly integrated solutions that deliver on ambulatory healthcare imperatives, including consumerism, digitization, risk allocation, regulatory influence, and integrated care and health equity. We serve clients across all 50 states. Over 100,000 providers use NextGen Healthcare solutions to deliver care in nearly every medical specialty in a wide variety of practice models including accountable care organizations (“ACOs”), independent physician associations (“IPAs”), managed service organizations (“MSOs”), veterans service organizations (“VSOs”), and dental service organizations (“DSOs”). Our clients range from some of the largest and most progressive multi-specialty groups in the country to sole practitioners with a wide variety of business models. With the addition of behavioral health to our medical and oral health capabilities, we continue to extend our share not only in federally qualified health centers (“FQHCs”) but also in the growing integrated care market. Our company was incorporated in California in 1974. Previously named Quality Systems, Inc., we changed our corporate name to NextGen Healthcare, Inc. in September 2018, and in 2021, we changed our state of incorporation to Delaware. As a remote-first company, we no longer maintain a principal executive office. Our principal website is www.nextgen.com. We operate on a fiscal year ending on March 31. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “NextGen Healthcare,” “NextGen,” “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. |
Business Segments | Business Segments. We operated as one segment for the years ended March 31, 2023 and 2022. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. |
Basis of Presentation | Basis of Presentation. Certain prior period amounts have been reclassified to conform to current period presentation. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. Refer to Note 3, “Revenue from Contracts with Customers” for additional information. |
Use of Estimates | Use of Estimates. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and recording revenue and expenses during the period. |
Revenue Recognition | Revenue Recognition . Refer to Note 3, "Revenue from Contracts with Customers" for additional information regarding our revenue recognition policies. Recurring revenues consists of subscription services, support and maintenance, managed services, and transactional and data services. Software, hardware, and other non-recurring revenues consists of revenue from sales of software license and hardware and certain non-recurring services, such as implementation, training, and consulting performed for clients who use our products. We generally recognize revenue for our most significant performance obligations as follows: Subscription services. Performance obligations involving subscription services, which include annual libraries, are satisfied over time as the customer simultaneously receives and consumes the benefits of the services throughout the contract period. Our subscription services primarily include our software-as-a-service (“SaaS”) based offerings, such as our electronic health records and practice management, mobile, patient portal, and population health management solutions. Our SaaS-based offerings may include multiple goods and services, such as providing access to our technology-based solutions together with our managed cloud hosting services. These offerings are concurrently delivered with the same pattern of transfer to our customers and are accounted for as a single performance obligation because the technology-based solutions and other goods and services included within our overall SaaS-based offerings are each individually not capable of being distinct as the customer receives benefits based on the combined offering. Our annual libraries primarily consist of providing stand-ready access to certain content, knowledgebase, databases, and SaaS-based educational tools, which are frequently updated to meet the most current standards and requirements, to be utilized in conjunction with our core solutions. We recognize revenue related to these subscription services, including annual libraries, ratably over the respective noncancelable contract term. Support and maintenance. Performance obligations involving support and maintenance are satisfied over time as the customer simultaneously receives and consumes the benefits of the maintenance services provided. Our support and maintenance services may consist of separate performance obligations, such as unspecified upgrades or enhancements and technical support, which are considered stand-ready in nature and can be offered at various points during the service period. Since the efforts associated with the combined support and maintenance services are rendered concurrently and provided evenly throughout the service period, we consider the series of support and maintenance services to be a single performance obligation. Therefore, we recognize revenue related to these services ratably over the respective noncancelable contract term. Managed services. Managed services consist primarily of RCM and related services, but also includes our hosting services, which we refer to as managed cloud services, transcription services, and certain other recurring services. Performance obligations associated with RCM services are satisfied over time as the customer simultaneously receives and consumes the benefits of the services executed throughout the contract period. The majority of service fees under our RCM arrangements are variable consideration contingent upon collections by our clients. We estimate the variable consideration which we expect to be entitled to over the noncancelable contract term associated with our RCM service arrangements. The estimate of variable consideration included in the transaction price typically involves estimating the amounts we will ultimately collect on behalf of our clients and the relative fee we charge that is generally calculated as a percentage of those collections. Inputs to these estimates include, but are not limited to, historical service fees and collections amounts, timing of historical collections relative to the timing of when claims are submitted by our clients to their respective payers, macroeconomic trends, and anticipated changes in the number of providers. Significant judgment is required when estimating the total transaction price based on the variable consideration. We may apply certain constraints when appropriate whereby we include in the transaction price estimated variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Such estimates are assessed at the contract level. RCM and related services may not be rendered evenly over the contract period as the timing of services are based on customer collections, which may vary throughout the service period. We recognize revenue for RCM based on the amount of collections received throughout the contract term as it most closely depicts our efforts to transfer our service obligations to the customer. Our managed cloud services represent a single performance obligation to provide cloud hosting services to our customers and related revenue is recognized ratably over the respective noncancelable contract term. Performance obligations related to the transcription services, and other recurring services are satisfied as the corresponding services are provided and revenue is recognized as such services are rendered. Transactional and data services. Performance obligations related to transactional and data services, including electronic data interchange (“EDI”), patient pay, and other transaction processing services are satisfied at the point in time the services are rendered or delivered. The transfer of control occurs when the transactional and data services are delivered and the customer receives the benefits from the services provided. Revenue is recognized as such services are rendered. Beginning in fiscal year 2023, to align the presentation of disaggregated revenue with the manner in which management reviews such information, the presentation of disaggregated revenues by major revenue categories was revised to reclassify revenues related to patient pay services and certain other services from the managed services category into the transactional and data services category, which replaced the prior EDI and data services category. The prior period presentation of revenues disaggregated by major revenue categories and by occurrence above has been reclassified to conform with current period presentation. Software license and hardware. Software license and hardware are considered point-in-time performance obligations as control is transferred to customers upon the delivery of the software license and hardware. Our software licenses are considered functional licenses, and revenue recognition generally occurs on the date of contract execution as the customer is provided with immediate access to the license. We generally determine the amount of consideration allocated to the software license performance obligation using the residual approach, except for certain RCM arrangements where the amount allocated to the software license performance obligation is determined based on estimated relative standalone selling prices. For hardware, we recognize revenue upon transfer of such hardware or devices to the customer. Other non-recurring services. Performance obligations related to other non-recurring services, including implementation, training, and consulting services, are generally satisfied as the corresponding services are provided. Once the services have been provided to the customer, the transfer of control has occurred. Therefore, we recognize revenue as such services are rendered. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents consist primarily of cash and money market funds with original maturities of less than 90 days. At March 31, 2023 and March 31, 2022, we had cash and cash equivalents of $ 98,719 and $ 59,829 , respectively. We also had cash deposits held at United States banks and financial institutions at March 31, 2023 of which $ 76,786 was in excess of the Federal Deposit Insurance Corporation insurance limit of $ 250 per owner. Our cash deposits are exposed to credit loss for amounts in excess of insured limits in the event of nonperformance by the institutions; however, we do not anticipate nonperformance by these institutions. Money market funds in which we hold a portion of our excess cash are invested in very high grade commercial and governmental instruments, and therefore bear low market risk. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents consist of cash that is being held by the Company acting as an agent for the disbursement of certain state social and care services programs. We record an offsetting liability when we initially receive such cash from the programs. We relieve both restricted cash and cash equivalents and the related liability when amounts are disbursed. We earn an administrative fee based on a percentage of the funds disbursed on behalf of the government social and care service programs. |
Marketable securities | Marketable securities. Our marketable securities primarily consist of United States treasury securities, corporate notes and bonds, agency securities, and commercial paper. We determine the appropriate classification of our marketable securities at the time of purchase and reevaluate such classification at each reporting period. We classify and account for our marketable securities as available-for-sale securities as we may sell these securities at any time for use in our current operations or for other purposes, as needed, even prior to maturity. As a result, we classify our marketable securities within current assets. Our marketable securities are reported at fair value and adjusted for amortization of premiums and accretion of discounts until maturity. Amortization and accretion are included in other income (expense), net in the consolidated statements of net income and comprehensive income. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of net income and comprehensive income. Unrealized gains are reported as a separate component of accumulated other comprehensive loss on the consolidated balance sheets until realized. Refer to Note 6, "Marketable Securities" for additional information. |
Reserves on Accounts Receivable | Reserves on Accounts Receivable. We maintain reserves for estimated potential sales returns and allowances for credit losses on our accounts receivable. Accounts receivable are reported net of an allowance for credit losses on our consolidated balance sheets. Our standard contracts generally do not contain provisions for clients to return products or services. However, we historically have accepted sales returns under limited circumstances. We estimate expected sales returns and other forms of variable consideration considering our customary business practice and contract-specific facts and circumstances, and we consider such estimated potential returns as variable consideration when allocating the transaction price to the extent it is probable that there will not be a significant reversal of cumulative revenue recognized. Allowance for credit losses are reserves related to estimated losses resulting from our clients’ inability to make required payments and are established based on our assessment of the collectability of client accounts, including review of our historical experience of bad debt expense and the aging of our accounts receivable balances, net of specifically reserved accounts and amounts billed prior to revenue recognition. Specific reserves are based on our estimate of the probability of collection for certain accounts. As part of our assessment of the adequacy of the allowance for credit losses, we consider a number of factors including, but not limited to, historical credit loss experience and adjustments for certain asset-specific risk characteristics, such as bankruptcy filings, internal assessments of client credit quality, age of the client receivable balances, review of major third-party credit-rating agencies, and evaluation of external factors such as economic conditions that may affect a client’s ability to pay, or other client-specific factors. Accounts are written off as uncollectible only after we have expended extensive collection efforts. Refer to Note 4, “Accounts Receivable” for additional information. |
Leases | Leases. We adopted ASU 2016-02, Leases (Topic 842) , and its subsequent amendments (together “ASC 842”) using the cumulative-effect adjustment transition method, which is the additional transition method described within ASU 2018-11, Leases (Topic 842): Targeted Improvements , issued by the FASB in July 2018, which allowed us to apply the new lease standard as of April 1, 2019 . Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. We determine whether an arrangement is a lease at inception and classify it as finance or operating. All of our existing material leases are classified as operating leases. Our leases do not contain any residual value guarantees. Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. We have certain insignificant short-term leases with an initial term of twelve months or less that are not recorded in our consolidated balance sheets. Operating right-of-use lease assets are classified as operating lease assets on our consolidated balance sheets. Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We have applied the practical expedient to combine fixed payments for non-lease components with our lease payments for all of our leases and account for them together as a single lease component, which increases the amount of our lease assets and corresponding liabilities. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Operating lease costs are recognized on a straight-line basis over the lease term and included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. Refer to Note 7, "Leases" for additional information. |
Equipment and Improvements | Equipment and Improvements. Equipment and improvements are stated at cost less accumulated depreciation and amortization. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation and amortization of equipment and improvements are recorded over the estimated useful lives of the assets, or the related lease terms if shorter, by the straight-line method. Useful lives generally have the following ranges: • Computer equipment and software - 3 to 5 years • Furniture and fixtures - 3 to 7 years • Leasehold improvements - lesser of lease term or estimated useful life of asset Depreciation expense related to our equipment and improvements was $ 5,088 , $ 6,902 , and $ 7,997 for the years ended March 31, 2023, 2022, and 2021, respectively. |
Capitalized Software Costs | Capitalized Software Costs. Software development costs, consisting primarily of employee salaries and benefits and certain third party costs, incurred in the development of new software solutions and enhancements to existing software solutions for external sale are expensed as incurred, and reported as net research and development costs in the consolidated statements of net income and comprehensive income, until technological feasibility has been established. After technological feasibility is established, the incremental software development costs are capitalized until general release occurs. Amortization of capitalized software begins upon general release and is recorded on a straight-line basis over the estimated economic life of the related product, which is typically three years . The total of capitalized software costs incurred in the development of products for external sale are reported as capitalized software costs within our consolidated balance sheets. We also incur costs related to the development of software applications for our internal-use and for the development of software-as-a-service ("SaaS") based solutions sold to our clients. The development costs of our SaaS-based solutions are considered internal-use for accounting purposes. Our internal-use capitalized development costs are stated at cost and amortized on a straight-line basis over the estimated useful lives of the assets, which is typically three years . Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs related to the preliminary project stage and post-implementation activities are expensed as incurred. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized software costs for the development of SaaS-based solutions are reported as capitalized software costs within our consolidated balance sheets and capitalized software costs for the development of our internal-use software applications are reported as equipment and improvements within our consolidated balance sheets. We periodically reassess the estimated economic life and the recoverability of our capitalized software costs. If we determine that capitalized amounts are not recoverable based on the expected net cash flows to be generated from sales of the applicable software solutions, the amount by which the unamortized capitalized costs exceed the net realizable value is written off as a charge to earnings. The net realizable value is estimated as the expected future gross revenues from that product reduced by the estimated future costs of completing and disposing of that product, including the costs of performing maintenance and client support required to satisfy our responsibility at the time of sale. In addition to the assessment of net realizable value, we review and adjust the remaining estimated lives of our capitalized software costs, if necessary. We also perform a periodic review of our software solutions and dispose of fully amortized capitalized software costs after such products are determined to no longer be used by our clients. |
Business Combinations | Business Combinations. In accordance with the accounting for business combinations, we allocate the purchase price of the acquired business to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent our best estimate of fair value. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type and nature of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. The purchase price allocation methodology contains uncertainties as it requires us to make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities, including, but not limited to, intangible assets, goodwill, and contingent consideration liabilities. We estimate the fair value of the contingent consideration liabilities based on our projection of expected results, as needed. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. Any adjustments to fair value subsequent to the measurement period are reflected in the consolidated statements of net income and comprehensive income. |
Goodwill | Goodwill. Goodwill acquired in a business combination is measured as the excess of the purchase price, or consideration transferred, over the net acquisition date fair values of the assets acquired and the liabilities assumed. Goodwill is not amortized as it has been determined to have an indefinite useful life. We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). We operate as one segment and have a single reporting unit. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. As part of our annual goodwill impairment test, we may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount. We assess events or changes in circumstances in totality, including macroeconomic and industry conditions, market and competitive environment, changes in customers or customer mix, cost factors, loss of key personnel, significant changes in legislative environment or other legal factors, changes in the use of our acquired assets, changes in our strategic direction, significant changes in projected future results of operations, changes in the composition or carrying amount of our net assets, and changes in our stock price. Based on our assessment, if we conclude that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then additional impairment testing is not required. Otherwise, if we determine that a quantitative impairment test should be performed, we then evaluate goodwill for impairment by comparing the estimated fair value of the reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. |
Intangible Assets | Intangible Assets. Intangible assets consist of trade names, customer relationships, re-acquired rights, data health database, and software technology, all of which are associated with our business acquisitions. The intangible assets are recorded at fair value and are reported net of accumulated amortization. We currently amortize the intangible assets over periods ranging from 3 to 11 years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed. We assess the recoverability of intangible assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. Impairment is deemed to have occurred if the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, and a loss is recognized to reduce the carrying value of the intangible assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our intangible assets and record adjustments, if deemed necessary. |
Long-Lived Assets | Long-Lived Assets. We assess our long-lived assets for potential impairment periodically or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If necessary, recoverability of the assets is evaluated based on the future undiscounted cash flows expected to result from the use of the related assets compared to the carrying value of such assets. If impairment is deemed to have occurred, a loss is recognized to reduce the carrying value of the long-lived assets to fair value, which is determined by discounting the estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our long-lived assets and record adjustments, if deemed necessary. |
Convertible Senior Notes | Convertible Senior Notes. We account for our convertible senior notes as a single liability measured at its amortized cost and reported as noncurrent liabilities on our consolidated balance sheets. Debt issuance costs incurred in connection with the issuance of our convertible senior notes are reflected as a direct deduction from the carrying amount of the outstanding convertible senior notes. These costs are amortized as interest expense using the effective interest rate method over the contractual term of the convertible senior notes and is included within other income (expense), net on our consolidated statements of net income and comprehensive income. Refer to Note 12, “Debt” for additional information. |
Income Taxes | Income Taxes. Income taxes are estimated based on current taxable income and the future tax consequences of temporary differences between the basis of assets and liabilities for financial and tax reporting. The deferred income tax assets and liabilities represent the future state and federal tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future income taxes. At each reporting period, we assess the realizable value of deferred tax assets based on, among other things, estimates of future taxable income and adjust the related valuation allowance as necessary. We make a number of assumptions and estimates in determining the appropriate amount of expense to record for income taxes. The assumptions and estimates consider the taxing jurisdiction in which we operate as well as current tax regulations. We also evaluate our uncertain tax positions and only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest benefit that has a greater than 50 percentage likelihood of being realized upon settlement. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. |
Advertising Costs | Advertising Costs. Advertising costs are expensed as incurred. We do not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $ 10,270 , $ 6,780 , and $ 3,902 for the years ended March 31, 2023, 2022, and 2021, respectively, and were included in selling, general and administrative expenses in the consolidated statements of net income and comprehensive income. |
Earnings per Share | Earnings per Share. We provide a dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. Fiscal Year Ended March 31, 2023 2022 2021 Earnings per share — Basic: Net income (loss) $ ( 2,654 ) $ 1,618 $ 9,515 Weighted-average shares outstanding — Basic 67,005 67,370 66,739 Net income per common share — Basic $ ( 0.04 ) $ 0.02 $ 0.14 Earnings per share — Diluted: Net income (loss) $ ( 2,654 ) $ 1,618 $ 9,515 Weighted-average shares outstanding 67,005 67,370 66,739 Effect of potentially dilutive securities — 418 146 Weighted-average shares outstanding — Diluted 67,005 67,788 66,885 Net income (loss) per common share — Diluted $ ( 0.04 ) $ 0.02 $ 0.14 The computation of diluted net income (loss) per share does not include 642 , 194 and 1,949 options for the years ended March 31, 2023, 2022, and 2021, respectively, because their inclusion would have an anti-dilutive effect on net income (loss) per share. The dilutive effect of potentially dilutive common shares is reflected in diluted net income per share by application of the if-converted method for the Convertible Senior Notes due 2027 (“Notes”), as described further in Note 12, “Debt” of our notes to consolidated financial statements included elsewhere in this Report for further information. The shares issuable upon conversion of the Notes, subject to adjustment in some events, are not considered in the calculation of diluted net income (loss) per share for the year ended March 31, 2023 because their inclusion would have an anti-dilutive effect on net income per share. |
Recent Accounting Standards | Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which clarifies the application of certain optional expedients and exceptions. Topic 848 may be applied prospectively through December 31, 2022. The adoption of Topic 848 did not have a material impact on our consolidated financial statements as our amended and restated revolving credit agreement contains provisions to accommodate the replacement of the existing LIBOR-based rate with a successor Secured Overnight Financing Rate (“SOFR”) based rate upon a triggering event. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. We have applied the amendments in ASU 2020-06 for the accounting of the convertible senior notes issued on November 1, 2022 (see Note 12). In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with ASU 2016-10, Revenue from Contracts with Customers (Topic 606) , at fair value on the acquisition date. ASU 2021-08 requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in ASU 2021-08 should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. We have elected to early adopt this guidance as of July 1, 2022 and have applied the amendments in ASU 2021-08 prospectively for the accounting of our acquisition of TSI Healthcare, LLC (see Note 8). Recent Accounting Standards Not Yet Adopted. Recent accounting pronouncements requiring implementation in current or future periods are discussed below or in the notes, where applicable. We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
Revenue Recognition and Performance Obligations | We generate revenue from sales of licensing rights and subscriptions to our software solutions, hardware and third-party software products, support and maintenance, managed services, transactional and data services, and other non-recurring services, including implementation, training, and consulting services. Our contracts with customers may include multiple performance obligations that consist of various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation within a contract based on estimated standalone selling prices. We generally determine standalone selling prices based on the prices charged to customers, except for certain software licenses that are based on the residual approach because their standalone selling prices are highly variable and certain maintenance customers that are based on substantive renewal rates. In instances where standalone selling price is not sufficiently observable, such as revenue cycle management ("RCM") services and software licenses included in our RCM arrangements, we estimate standalone selling price utilizing an expected cost plus a margin approach. When standalone selling prices are not observable, significant judgment is required in estimating the standalone selling price for each performance obligation. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We exclude sales tax from the measurement of the transaction price and record revenue net of taxes collected from customers and subsequently remitted to governmental authorities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share | We provide a dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. Fiscal Year Ended March 31, 2023 2022 2021 Earnings per share — Basic: Net income (loss) $ ( 2,654 ) $ 1,618 $ 9,515 Weighted-average shares outstanding — Basic 67,005 67,370 66,739 Net income per common share — Basic $ ( 0.04 ) $ 0.02 $ 0.14 Earnings per share — Diluted: Net income (loss) $ ( 2,654 ) $ 1,618 $ 9,515 Weighted-average shares outstanding 67,005 67,370 66,739 Effect of potentially dilutive securities — 418 146 Weighted-average shares outstanding — Diluted 67,005 67,788 66,885 Net income (loss) per common share — Diluted $ ( 0.04 ) $ 0.02 $ 0.14 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Major Revenue Categories and by Occurrence | The following table presents our revenues disaggregated by our major revenue categories and by occurrence: Fiscal Year Ended March 31, 2023 2022 2021 Recurring revenues: Subscription services $ 184,047 $ 162,636 $ 148,403 Support and maintenance 153,520 155,623 152,956 Managed services 129,115 111,377 97,400 Transactional and data services 127,236 110,077 104,060 Total recurring revenues 593,918 539,713 502,819 Software, hardware, and other non-recurring revenues: Software license and hardware 27,860 31,347 28,825 Other non-recurring services 31,394 25,290 25,177 Total software, hardware and other non-recurring revenues 59,254 56,637 54,002 Total revenues $ 653,172 $ 596,350 $ 556,821 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | Accounts receivable includes invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Allowance for credit losses are reported as a component of accounts receivable as summarized below: March 31, 2023 March 31, 2022 Accounts receivable, gross $ 92,360 $ 79,945 Allowance for credit losses ( 3,862 ) ( 3,888 ) Accounts receivable, net $ 88,498 $ 76,057 |
Summary of Changes in Allowance for Doubtful Accounts | The following table represents the changes in the allowance for credit losses, as of and for the twelve months ended March 31, 2023 and 2022: Balance as of March 31, 2021 $ ( 4,205 ) Additions charged to costs and expenses ( 1,915 ) Deductions 2,232 Balance as of March 31, 2022 $ ( 3,888 ) Additions charged to costs and expenses ( 1,914 ) Deductions 1,940 Balance as of March 31, 2023 $ ( 3,862 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities on a Recurring Basis | The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2023 and March 31, 2022: Balance At Quoted Prices Significant Other Unobservable March 31, 2023 (Level 1) (Level 2) (Level 3) ASSETS Cash and money market funds $ 73,754 $ 73,754 $ — $ — Commercial paper 10,795 — 10,795 — United States treasury securities 9,979 — 9,979 — Corporate notes and bonds 3,349 — 3,349 — Agency securities 842 — 842 — Total cash and cash equivalents 98,719 73,754 24,965 — Restricted cash and cash equivalents 7,269 7,269 — — United States treasury securities 56,890 — 56,890 — Agency securities 37,991 — 37,991 — Corporate notes and bonds 26,590 — 26,590 — Commercial paper 18,141 — 18,141 — Total marketable securities 139,612 — 139,612 — TOTAL ASSETS $ 245,600 $ 81,023 $ 164,577 $ — LIABILITIES Contingent consideration related to acquisitions $ 3,800 $ — $ — $ 3,800 Convertible senior notes, net, noncurrent 266,843 — 266,843 — TOTAL LIABILITIES $ 270,643 $ — $ 266,843 $ 3,800 Balance At Quoted Prices Significant Other Unobservable March 31, 2022 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 59,829 $ 59,829 $ — $ — Restricted cash and cash equivalents 6,918 6,918 — — TOTAL ASSETS $ 66,747 $ 66,747 $ — $ — (1) Cash equivalents consist primarily of money market funds. |
Financial Assets and Liabilities Measured At Fair Value Using Significant Observable Inputs (Level 2) | The following table presents activity in our financial assets and liabilities measured at fair value using significant observable inputs (Level 2), as of and for the year ended March 31, 2022. Total Liabilities Balance at March 31, 2021 $ 533 Fair value adjustments 7 Payment of Topaz contingent consideration ( 540 ) Balance at March 31, 2022 $ — |
Financial Assets and Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) | The following table presents activity in our financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the year ended March 31, 2023: Total Liabilities Balance at March 31, 2022 $ — Acquisition 3,700 Fair value adjustments 100 Balance at March 31, 2023 $ 3,800 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fair Value of Investments and Marketable Securities | The following table summarizes the fair value of our investments and marketable securities as of March 31, 2023: March 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper $ 10,795 $ — $ — $ 10,795 United States treasury securities 9,977 2 — 9,979 Money market funds 5,976 — — 5,976 Corporate notes and bonds 3,349 — — 3,349 Agency securities 842 — — 842 Total cash and cash equivalents 30,939 2 — 30,941 United States treasury securities 56,795 99 ( 4 ) 56,890 Agency securities 37,999 16 ( 24 ) 37,991 Corporate notes and bonds 26,631 14 ( 55 ) 26,590 Commercial paper 18,147 — ( 6 ) 18,141 Total marketable securities 139,572 129 ( 89 ) 139,612 Total investments $ 170,511 $ 131 $ ( 89 ) $ 170,553 |
Summary of Contractual Maturities of Investments and Marketable Securities | The following table presents the contractual maturities of our investments and marketable securities as of March 31, 2023: Amortized Cost Fair Value Due within one year $ 126,062 $ 126,068 Due after one year through five years 44,449 44,485 Total 170,511 170,553 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of Components of Operating Lease Costs | Components of operating lease costs are summarized as follows: Twelve Months Ended March 31, 2023 2022 Operating lease costs $ 2,800 $ 6,328 Short-term lease costs — 8 Variable lease costs 649 774 Less: Sublease income ( 962 ) ( 561 ) Total operating lease costs $ 2,487 $ 6,549 |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases is summarized as follows: Twelve Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 9,451 $ 13,766 Operating lease assets obtained in exchange for operating lease liabilities 957 1,610 |
Summary of Future Minimum Aggregate Lease Payments Operating Leases | Future minimum aggregate lease payments under operating leases as of March 31, 2023 are summarized as follows: For the year ended March 31, 2024 $ 4,077 2025 3,667 2026 528 Total future lease payments 8,272 Less interest ( 351 ) Total lease liabilities $ 7,921 |
Business Combinations and Dis_2
Business Combinations and Disposals (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Business Disposition [Abstract] | |
Summary of Purchase Price Allocation | Preliminary Purchase Price Initial purchase price $ 50,449 Fair value of contingent consideration 3,700 Payment for option to early terminate lease 2,000 Working capital adjustment ( 430 ) Total preliminary purchase price $ 55,719 Preliminary fair value of the net tangible assets acquired and liabilities assumed: Cash and cash equivalents $ 717 Accounts receivable 2,011 Contract assets 1,415 Prepaid expense and other assets 308 Equipment and improvements 879 Contract assets, net of current 2,581 Operating lease assets 957 Deferred income tax asset 1,274 Other assets 50 Accounts payable ( 1,773 ) Accrued compensation and related benefits ( 917 ) Contract liabilities ( 6,247 ) Operating lease liabilities ( 533 ) Other current liabilities ( 964 ) Contract liabilities, net of current ( 11,644 ) Operating lease liabilities, net of current ( 639 ) Total preliminary net tangible assets acquired and liabilities assumed ( 12,525 ) Preliminary fair value of identifiable intangible assets acquired: Goodwill 54,544 Re-acquired rights 6,250 Customer relationships 5,500 Data health database 1,950 Total identifiable intangible assets acquired 68,244 Total preliminary purchase price $ 55,719 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Other than Capitalized Software Development Costs | Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: March 31, 2023 Customer Trade Names Software Re-acquired Rights Data Health Database Total Gross carrying amount $ 44,700 $ 250 $ 25,700 $ 6,250 $ 1,950 $ 78,850 Accumulated amortization ( 32,918 ) ( 166 ) ( 16,060 ) ( 521 ) ( 217 ) ( 49,882 ) Net intangible assets $ 11,782 $ 84 $ 9,640 $ 5,729 $ 1,733 $ 28,968 March 31, 2022 Customer Trade Names Software Total Gross carrying amount $ 39,200 $ 250 $ 49,000 $ 88,450 Accumulated amortization ( 29,824 ) ( 116 ) ( 34,207 ) ( 64,147 ) Net intangible assets $ 9,376 $ 134 $ 14,793 $ 24,303 |
Estimated Amortization of Intangible Assets with Determinable Lives | The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of March 31, 2023: Estimated Remaining Amortization Expense Operating Cost of Total For the year ended March 31, 2024 $ 4,754 $ 4,223 $ 8,977 2025 4,180 4,223 8,403 2026 3,596 2,684 6,280 2027 2,232 243 2,475 2028 and beyond 2,833 — 2,833 Total $ 17,595 $ 11,373 $ 28,968 |
Capitalized Software Costs (Tab
Capitalized Software Costs (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Research and Development [Abstract] | |
Capitalized Software Development Costs | Our capitalized software costs are summarized as follows: March 31, 2023 March 31, 2022 Gross carrying amount $ 131,791 $ 110,155 Accumulated amortization ( 77,275 ) ( 66,197 ) Net capitalized software costs $ 54,516 $ 43,958 |
Estimated Amortization of Capitalized Software Costs | The following table presents the remaining estimated amortization of capitalized software costs as of March 31, 2023. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. For the year ended March 31, 2024 $ 27,600 2025 16,200 2026 8,900 2027 1,816 Total $ 54,516 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Recorded Net of Issuance Costs | The Notes are recorded net of issuance costs as noncurrent liabilities in the consolidated balance sheets. The net carrying value of the Notes as of March 31, 2023 is as follows: March 31, 2023 Principal amount $ 275,000 Unamortized issuance costs ( 8,157 ) Carrying value, net $ 266,843 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Cash, Cash Equivalents, and Restricted Cash | Cash, cash equivalents, and restricted cash are summarized as follows: March 31, 2023 March 31, 2022 Cash and cash equivalents $ 98,719 $ 59,829 Restricted cash and cash equivalents 7,269 6,918 Cash, cash equivalents, and restricted cash $ 105,988 $ 66,747 |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets are summarized as follows: March 31, 2023 March 31, 2022 Prepaid expenses $ 26,365 $ 24,229 Capitalized commissions costs 13,813 11,698 Accrued interest on marketable securities 699 — Other current assets 2,039 1,175 Prepaid expenses and other current assets $ 42,916 $ 37,102 |
Summary of Equipment and Improvements | Equipment and improvements are summarized as follows: March 31, 2023 March 31, 2022 Computer equipment $ 35,019 $ 36,293 Internal-use software 20,064 19,001 Leasehold improvements 7,067 13,227 Furniture and fixtures 4,871 9,579 Equipment and improvements, gross 67,021 78,100 Accumulated depreciation and amortization ( 60,600 ) ( 68,980 ) Equipment and improvements, net $ 6,421 $ 9,120 |
Summary of Other Assets | Other assets are summarized as follows: March 31, 2023 March 31, 2022 Capitalized commission costs $ 26,104 $ 21,654 Deposits 7,447 5,793 Debt issuance costs 1,498 2,006 Other noncurrent assets 9,189 9,573 Other assets $ 44,238 $ 39,026 |
Summary of Accrued Compensation and Related Benefits | Accrued compensation and related benefits are summarized as follows: March 31, 2023 March 31, 2022 Accrued bonus $ 15,550 $ 27,311 Accrued vacation 13,271 11,785 Accrued commissions 5,166 5,353 Accrued payroll and other 2,254 470 Deferred payroll taxes — 3,817 Accrued compensation and related benefits $ 36,241 $ 48,736 |
Summary of Other Current and Noncurrent Liabilities | Other current and noncurrent liabilities are summarized as follows: March 31, 2023 March 31, 2022 Accrued legal settlement (1) $ 33,990 $ — Care services liabilities 7,269 6,918 Customer credit balances and deposits 5,417 4,622 Sales returns reserves and other customer liabilities 5,390 5,725 Accrued interest payable 4,244 — Accrued consulting and outside services 3,957 4,799 Accrued royalties 3,248 3,557 Accrued employee benefits and withholdings 3,195 3,535 Accrued EDI expense 3,064 2,168 Accrued outsourcing costs 3,023 2,264 Accrued self insurance expense 2,359 2,208 Accrued taxes payable 1,746 540 Accrued hosting costs 873 12,510 Accrued legal expense 782 1,439 Other accrued expenses 5,242 3,248 Other current liabilities $ 83,799 $ 53,533 Uncertain tax positions $ 3,950 $ 4,196 Contingent consideration related to acquisitions, noncurrent 3,800 — Other liabilities 524 374 Other noncurrent liabilities $ 8,274 $ 4,570 (1) Refer to Note 17, "Commitments, Guarantees and Contingencies" for more details. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for (Benefit of) Income Taxes | The provision for (benefit of) income taxes consist of the following components: Fiscal Year Ended March 31, 2023 2022 2021 Current: Federal taxes $ 13,857 $ 1,090 $ 6,562 State taxes 259 1,081 1,226 Foreign taxes 1,781 1,192 826 Total current taxes 15,897 3,363 8,614 Deferred: Federal taxes $ ( 9,562 ) $ 43 $ ( 6,053 ) State taxes 311 ( 379 ) ( 2,068 ) Foreign taxes 312 551 ( 733 ) Total deferred taxes ( 8,939 ) 215 ( 8,854 ) Provision for (benefit of) income taxes $ 6,958 $ 3,578 $ ( 240 ) |
Summary of Provision for (Benefit of) Income Taxes Differs from the Amount Computed at Federal Statutory Rate | The provision for (benefit of) income taxes differs from the amount computed at the federal statutory rate as follows: Fiscal Year Ended March 31, 2023 2022 2021 Tax expense at United States federal statutory rate (1) $ 904 $ 1,091 $ 1,948 Items affecting federal income tax rate: Impact of legal and audit settlements 3,339 — ( 56 ) Impact of foreign withholding tax 2,811 — — Executive compensation limitation 2,575 2,068 775 Impact of net operating loss adjustment 1,814 ( 100 ) ( 220 ) State income taxes 1,473 950 572 Impact of foreign operations 311 356 ( 1,203 ) Compensation 66 1,059 865 Non-deductible expenses — ( 27 ) ( 258 ) Impact of deferred adjustments ( 11 ) 188 ( 31 ) Impact of amended returns ( 122 ) 163 ( 9 ) Impact of valuation allowance ( 259 ) ( 882 ) 563 Impact of uncertain tax positions ( 366 ) 1,620 278 Return to provision true-ups ( 511 ) ( 152 ) ( 15 ) Research and development tax credits ( 5,066 ) ( 2,756 ) ( 3,449 ) Provision for (benefit of) income taxes $ 6,958 $ 3,578 $ ( 240 ) (1) Federal statutory rate was 21.0 % for March 31, 2023, 2022 and 2021. |
Summary of Net Deferred Tax Assets and Liabilities | The net deferred tax assets and liabilities in the consolidated balance sheets consist of the following: March 31, 2023 March 31, 2022 Deferred tax assets: Compensation and benefits $ 14,506 $ 17,494 Capitalized software 14,226 ( 647 ) Deferred revenue 9,923 9,245 Research and development credit 7,297 7,165 Accrued legal settlement 4,035 — Net operating losses 2,470 6,018 Operating lease liabilities 1,937 3,774 Foreign deferred taxes 1,444 1,755 Allowance for credit losses 1,383 1,658 Accounts receivable 47 511 Total deferred tax assets 57,268 46,973 Deferred tax liabilities: Prepaid expense $ ( 11,656 ) $ ( 10,895 ) Intangibles assets ( 8,845 ) ( 8,703 ) Other ( 1,254 ) ( 630 ) Operating right-of-use assets ( 816 ) ( 1,713 ) Accelerated depreciation ( 351 ) ( 640 ) Valuation allowance ( 4,874 ) ( 5,133 ) Deferred tax assets, net $ 29,472 $ 19,259 |
Summary of Reconciliation in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities and deferred income taxes, net in our consolidated balance sheet, is as follows: Balance as of March 31, 2020 $ 4,192 Additions for prior year tax positions 220 Additions for current year tax positions 635 Reductions for prior year tax positions ( 621 ) Balance as of March 31, 2021 4,426 Additions for prior year tax positions 1,184 Additions for current year tax positions 763 Reductions for prior year tax positions ( 261 ) Balance as of March 31, 2022 6,112 Additions for prior year tax positions 311 Additions for current year tax positions 941 Reductions for prior year tax positions ( 1,453 ) Balance as of March 31, 2023 $ 5,911 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes total share-based compensation expense included in the consolidated statements of net income and comprehensive income for the fiscal years ended March 31, 2023, 2022 and 2021: Fiscal Year Ended March 31, 2023 2022 2021 Costs and expenses: Cost of revenue $ 3,082 $ 2,183 $ 1,991 Research and development costs 4,243 4,508 4,036 Selling, general and administrative 26,133 19,861 16,683 Total share-based compensation 33,458 26,552 22,710 Income tax benefit ( 7,641 ) ( 6,221 ) ( 5,415 ) Decrease in net income $ 25,817 $ 20,331 $ 17,295 |
Summary of Stock Option Activity | The following table summarizes the stock option transactions during the years ended March 31, 2023, 2022, and 2021: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2020 3,001,350 14.83 4.7 $ — Exercised ( 116,916 ) 16.21 3.3 $ 303 Forfeited/Canceled ( 47,350 ) 18.58 3.7 Expired ( 46,000 ) 29.17 Outstanding, March 31, 2021 2,791,084 $ 14.47 3.7 $ 10,303 Exercised ( 1,248,525 ) 13.76 2.7 $ 2,638 Forfeited/Canceled ( 32,320 ) 19.51 3.0 Expired ( 56,500 ) 18.85 Outstanding, March 31, 2022 1,453,739 $ 14.80 2.9 $ 8,886 Exercised ( 300,926 ) 14.57 1.6 $ 1,623 Forfeited/Canceled ( 20,000 ) 21.27 Expired ( 2,000 ) 15.99 Outstanding, March 31, 2023 1,130,813 $ 14.75 1.7 $ 3,011 Vested and expected to vest, March 31, 2023 1,130,813 $ 14.75 1.7 $ 3,011 Exercisable, March 31, 2023 1,130,813 $ 14.75 1.7 $ 3,011 |
Schedule of Employee Stock Options and Performance Based Awards by Non-vested Stock Options | Non-vested stock option award activity during the years ended March 31, 2023, 2022, and 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2020 1,091,672 $ 5.67 Vested ( 605,433 ) 5.40 Forfeited/Canceled ( 26,900 ) 6.80 Outstanding, March 31, 2021 459,339 $ 5.96 Vested ( 391,457 ) 5.74 Forfeited/Canceled ( 17,500 ) 7.96 Outstanding, March 31, 2022 50,382 $ 6.98 Vested ( 50,382 ) 6.98 Outstanding, March 31, 2023 — $ — |
Summary of Restricted Stock Awards Activity | Restricted stock awards activity during the years ended March 31, 2023, 2022, and 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2020 2,312,780 $ 16.74 Granted 1,222,863 12.04 Vested ( 1,053,792 ) 16.22 Canceled ( 218,282 ) 15.30 Outstanding, March 31, 2021 2,263,569 $ 14.58 Granted 2,391,578 15.87 Vested ( 1,109,520 ) 15.17 Canceled ( 302,864 ) 14.94 Outstanding, March 31, 2022 3,242,763 $ 15.30 Granted 1,840,211 18.23 Vested ( 1,479,453 ) 15.45 Canceled ( 306,009 ) 16.82 Outstanding, March 31, 2023 3,297,512 $ 16.72 |
Organization of Business - Addi
Organization of Business - Additional Information (Details) | 12 Months Ended |
Mar. 31, 2023 State Provider | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states serving to clients | State | 50 |
Number of providers using healthcare solutions to deliver care | Provider | 100,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 USD ($) Segment shares | Mar. 31, 2022 USD ($) Segment shares | Mar. 31, 2021 USD ($) shares | |
Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | 1 | |
Maturity of time deposits | 90 days | ||
Cash, FDIC insured amount | $ 250 | ||
Cash and cash equivalents | 98,719 | $ 59,829 | |
Cash, uninsured amount | 76,786 | ||
Depreciation | 5,088 | 6,902 | $ 7,997 |
Advertising costs | $ 10,270 | $ 6,780 | $ 3,902 |
Employee Stock Options | |||
Accounting Policies [Line Items] | |||
Options excluded from the computation of diluted net income (loss) per share | shares | 642 | 194 | 1,949 |
Minimum | |||
Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 3 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 11 years | ||
Computer Equipment and Software | Minimum | |||
Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Computer Equipment and Software | Maximum | |||
Accounting Policies [Line Items] | |||
Useful life | 5 years | ||
Furniture and Fixtures | Minimum | |||
Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Furniture and Fixtures | Maximum | |||
Accounting Policies [Line Items] | |||
Useful life | 7 years | ||
Leasehold Improvements | |||
Accounting Policies [Line Items] | |||
Useful life, description | lesser of lease term or estimated useful life of asset | ||
Capitalized Software Costs | |||
Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Accounting Standards Update 2016-02 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 01, 2019 | ||
Accounting Standards Update 2020-06 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Nov. 01, 2022 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
Accounting Standards Update 2021-08 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jul. 01, 2022 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings per share — Basic: | |||
Net income (loss) | $ (2,654) | $ 1,618 | $ 9,515 |
Weighted-average shares outstanding — Basic | 67,005 | 67,370 | 66,739 |
Net income per common share — Basic | $ (0.04) | $ 0.02 | $ 0.14 |
Earnings per share — Diluted: | |||
Net income (loss) | $ (2,654) | $ 1,618 | $ 9,515 |
Weighted-average shares outstanding — Basic | 67,005 | 67,370 | 66,739 |
Effect of potentially dilutive securities | 418 | 146 | |
Weighted-average shares outstanding — Diluted | 67,005 | 67,788 | 66,885 |
Net income (loss) per common share - Diluted | $ (0.04) | $ 0.02 | $ 0.14 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenues Disaggregated by Major Revenue Categories and by Occurrence (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 653,172 | $ 596,350 | $ 556,821 |
Subscription Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 184,047 | 162,636 | 148,403 |
Support And Maintenance | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 153,520 | 155,623 | 152,956 |
Managed Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 129,115 | 111,377 | 97,400 |
Transactional And Data Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 127,236 | 110,077 | 104,060 |
Recurring Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 593,918 | 539,713 | 502,819 |
Software License and Hardware | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 27,860 | 31,347 | 28,825 |
Other Non-recurring Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 31,394 | 25,290 | 25,177 |
Software, Hardware, and Other Non-recurring | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 59,254 | $ 56,637 | $ 54,002 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue From Contract With Customer [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 599,600 | $ 608,400 | |
Percentage of revenue expected to recognize as services rendered and goods delivered | 9% | 10% | |
Percentage of revenue expected to recognize over next 12 months | 53% | 51% | |
Contract liability balance or invoiced to customers | $ 69,868 | $ 69,062 | |
Capitalized commission costs | 39,917 | 33,352 | |
Commission expenses | 14,834 | 12,044 | $ 11,236 |
Prepaid Expenses And Other Current Assets | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized commission costs | 13,813 | 11,698 | |
Other Noncurrent Assets | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized commission costs | $ 26,104 | $ 21,654 | |
Minimum | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized contract cost, amortization period | 1 year | ||
Maximum | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized contract cost, amortization period | 5 years |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Receivables [Abstract] | |||
Accounts receivable, gross | $ 92,360 | $ 79,945 | |
Allowance for credit losses | (3,862) | (3,888) | $ (4,205) |
Accounts receivable, net | $ 88,498 | $ 76,057 |
Accounts Receivable - Summary_2
Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Receivables [Abstract] | |||
Balance | $ (3,888) | $ (4,205) | |
Additions charged to costs and expenses | (1,914) | (1,915) | $ (2,834) |
Deductions | 1,940 | 2,232 | |
Balance | $ (3,862) | $ (3,888) | $ (4,205) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | |
ASSETS | |||
Marketable securities | $ 139,612 | ||
LIABILITIES | |||
Convertible senior notes, net, noncurrent | 266,843 | ||
Agency Securities | |||
ASSETS | |||
Cash and cash equivalents | 842 | ||
Marketable securities | 37,991 | ||
Unobservable Inputs (Level 3) | |||
ASSETS | |||
TOTAL ASSETS | 0 | ||
LIABILITIES | |||
TOTAL LIABILITIES | 0 | ||
Fair Value, Measurements, Recurring | Carrying Value | |||
ASSETS | |||
Cash and cash equivalents | 98,719 | $ 59,829 | [1] |
Restricted cash and cash equivalents | 7,269 | 6,918 | |
Marketable securities | 139,612 | ||
TOTAL ASSETS | 245,600 | 66,747 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 3,800 | ||
Convertible senior notes, net, noncurrent | 266,843 | ||
TOTAL LIABILITIES | 270,643 | ||
Fair Value, Measurements, Recurring | Carrying Value | Cash and Money Market Funds | |||
ASSETS | |||
Cash and cash equivalents | 73,754 | ||
Fair Value, Measurements, Recurring | Carrying Value | Commercial Paper | |||
ASSETS | |||
Cash and cash equivalents | 10,795 | ||
Marketable securities | 18,141 | ||
Fair Value, Measurements, Recurring | Carrying Value | United States Treasury Securities | |||
ASSETS | |||
Cash and cash equivalents | 9,979 | ||
Marketable securities | 56,890 | ||
Fair Value, Measurements, Recurring | Carrying Value | Corporate Notes and Bonds | |||
ASSETS | |||
Cash and cash equivalents | 3,349 | ||
Marketable securities | 26,590 | ||
Fair Value, Measurements, Recurring | Carrying Value | Agency Securities | |||
ASSETS | |||
Cash and cash equivalents | 842 | ||
Marketable securities | 37,991 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | 73,754 | 59,829 | [1] |
Restricted cash and cash equivalents | 7,269 | 6,918 | |
Marketable securities | 0 | ||
TOTAL ASSETS | 81,023 | 66,747 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 0 | ||
Convertible senior notes, net, noncurrent | 0 | ||
TOTAL LIABILITIES | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | Cash and Money Market Funds | |||
ASSETS | |||
Cash and cash equivalents | 73,754 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | Commercial Paper | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | United States Treasury Securities | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | Corporate Notes and Bonds | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | Agency Securities | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | 24,965 | 0 | [1] |
Restricted cash and cash equivalents | 0 | 0 | |
Marketable securities | 139,612 | ||
TOTAL ASSETS | 164,577 | 0 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 0 | ||
Convertible senior notes, net, noncurrent | 266,843 | ||
TOTAL LIABILITIES | 266,843 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair Value | Cash and Money Market Funds | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair Value | Commercial Paper | |||
ASSETS | |||
Cash and cash equivalents | 10,795 | ||
Marketable securities | 18,141 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair Value | United States Treasury Securities | |||
ASSETS | |||
Cash and cash equivalents | 9,979 | ||
Marketable securities | 56,890 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair Value | Corporate Notes and Bonds | |||
ASSETS | |||
Cash and cash equivalents | 3,349 | ||
Marketable securities | 26,590 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fair Value | Agency Securities | |||
ASSETS | |||
Cash and cash equivalents | 842 | ||
Marketable securities | 37,991 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | [1] |
Restricted cash and cash equivalents | 0 | 0 | |
Marketable securities | 0 | ||
TOTAL ASSETS | 0 | $ 0 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 3,800 | ||
Convertible senior notes, net, noncurrent | 0 | ||
TOTAL LIABILITIES | 3,800 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Fair Value | Cash and Money Market Funds | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Fair Value | Commercial Paper | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | 0 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Fair Value | United States Treasury Securities | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | 0 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Fair Value | Corporate Notes and Bonds | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | 0 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Fair Value | Agency Securities | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Marketable securities | $ 0 | ||
[1] Cash equivalents consist primarily of money market funds. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | |||
Change in fair value of contingent consideration | $ 100 | $ 7 | $ (1,367) |
Unobservable Inputs (Level 3) | |||
Business Acquisition [Line Items] | |||
Assets | 0 | ||
Liabilities | 0 | ||
Topaz Information Systems, LLC | |||
Business Acquisition [Line Items] | |||
Change in fair value of contingent consideration | 7 | ||
Payment of contingent consideration | $ 540 | ||
TSI Healthcare, LLC | Unobservable Inputs (Level 3) | |||
Business Acquisition [Line Items] | |||
Change in fair value of contingent consideration | 100 | ||
Fair value of contingent consideration | $ 3,800 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured At Fair Value Using Significant Observable Inputs (Level 2) (Details ) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Beginning balance | $ 0 | $ 533 | |
Fair value adjustments | $ 100 | 7 | $ (1,367) |
Ending balance | 0 | $ 533 | |
Topaz Information Systems, LLC | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value adjustments | 7 | ||
Payment of Topaz contingent consideration | $ (540) |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Assets and Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||
Balance | $ 0 | ||
Acquisition | 3,700 | ||
Fair value adjustments | 100 | $ 7 | $ (1,367) |
Balance | $ 3,800 | $ 0 |
Investments - Summary of Fair V
Investments - Summary of Fair Value of Investments and Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Marketable Securities [Line Items] | ||
Cash and cash equivalents, Amortized Cost | $ 98,719 | $ 59,829 |
Marketable securities, Amortized Cost | 139,572 | |
Marketable securities, Unrealized Gains | 129 | |
Marketable securities, Unrealized Losses | (89) | |
Marketable securities, Fair Value | 139,612 | |
Investments, Amortized Cost | 170,511 | |
Investments, Unrealized Gains | 131 | |
Investments, Unrealized Losses | (89) | |
Investments, Fair Value | 170,553 | |
Commercial Paper | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 10,795 | |
Cash and cash equivalents, Unrealized Gains | 0 | |
Cash and cash equivalents, Unrealized Losses | 0 | |
Cash and cash equivalents, Fair Value | 10,795 | |
Marketable securities, Amortized Cost | 18,147 | |
Marketable securities, Unrealized Gains | 0 | |
Marketable securities, Unrealized Losses | (6) | |
Marketable securities, Fair Value | 18,141 | |
United States Treasury Securities | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 9,977 | |
Cash and cash equivalents, Unrealized Gains | 2 | |
Cash and cash equivalents, Unrealized Losses | 0 | |
Cash and cash equivalents, Fair Value | 9,979 | |
Marketable securities, Amortized Cost | 56,795 | |
Marketable securities, Unrealized Gains | 99 | |
Marketable securities, Unrealized Losses | (4) | |
Marketable securities, Fair Value | 56,890 | |
Money Market Funds | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 5,976 | |
Cash and cash equivalents, Unrealized Gains | 0 | |
Cash and cash equivalents, Unrealized Losses | 0 | |
Cash and cash equivalents, Fair Value | 5,976 | |
Corporate Notes and Bonds | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 3,349 | |
Cash and cash equivalents, Unrealized Gains | 0 | |
Cash and cash equivalents, Unrealized Losses | 0 | |
Cash and cash equivalents, Fair Value | 3,349 | |
Marketable securities, Amortized Cost | 26,631 | |
Marketable securities, Unrealized Gains | 14 | |
Marketable securities, Unrealized Losses | (55) | |
Marketable securities, Fair Value | 26,590 | |
Cash and Cash Equivalents | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 30,939 | |
Cash and cash equivalents, Unrealized Gains | 2 | |
Cash and cash equivalents, Unrealized Losses | 0 | |
Cash and cash equivalents, Fair Value | 30,941 | |
Agency Securities | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, Amortized Cost | 842 | |
Cash and cash equivalents, Unrealized Gains | 0 | |
Cash and cash equivalents, Unrealized Losses | 0 | |
Cash and cash equivalents, Fair Value | 842 | |
Marketable securities, Amortized Cost | 37,999 | |
Marketable securities, Unrealized Gains | 16 | |
Marketable securities, Unrealized Losses | (24) | |
Marketable securities, Fair Value | $ 37,991 |
Investments - Summary of Contra
Investments - Summary of Contractual Maturities of Investments and Marketable Securities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year, Amortized Cost | $ 126,062 |
Due after one year through five years, Amortized Cost | 44,449 |
Total, Amortized Cost | 170,511 |
Due within one year, Fair Value | 126,068 |
Due after one year through five years, Fair Value | 44,485 |
Total, Fair Value | $ 170,553 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee Lease Description [Line Items] | |||
Total operating lease costs | $ 2,487 | $ 6,549 | $ 9,190 |
Operating lease, weighted average remaining lease term | 2 years | ||
Operating lease, weighted average discount rate, percent | 4.20% | ||
Lease not yet commenced, future lease payments | $ 686 | ||
Lease not yet commenced, commencement year | 2024 | ||
Lease Right of Use Assets and Property Plant and Equipment | |||
Lessee Lease Description [Line Items] | |||
Other asset impairment charges | $ 3,163 | $ 3,906 | $ 5,539 |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Lease expiration year | 2023 | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Lease expiration year | 2025 | ||
Lease not yet commenced, lease term | 5 years |
Leases - Summary of Components
Leases - Summary of Components of Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 2,800 | $ 6,328 | |
Short-term lease costs | 8 | ||
Variable lease costs | 649 | 774 | |
Less: Sublease income | (962) | (561) | |
Total operating lease costs | $ 2,487 | $ 6,549 | $ 9,190 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 9,451 | $ 13,766 | $ 18,651 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 957 | $ 1,610 | $ 3,107 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Aggregate Lease Payments Operating Leases (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 4,077 |
2025 | 3,667 |
2026 | 528 |
Total future lease payments | 8,272 |
Less interest | (351) |
Total lease liabilities | $ 7,921 |
Business Combinations and Dis_3
Business Combinations and Disposals - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Jul. 26, 2022 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | |||
Cash consideration | $ 11,253 | ||
Asset Purchase Agreement | |||
Business Acquisition [Line Items] | |||
Proceeds from sale of non-strategic dental related assets | $ 12,000 | ||
Cash consideration | 11,253 | ||
Additional cash expected to be received | 600 | ||
Preliminary gain on disposition of assets | $ 10,296 | ||
Maximum | |||
Business Acquisition [Line Items] | |||
Amortization period of intangible assets | 11 years | ||
TSI Healthcare, LLC ("TSI") | |||
Business Acquisition [Line Items] | |||
Acquisition completed date | Nov. 30, 2022 | ||
Purchase price | $ 50,449 | ||
Fair value of contingent consideration | $ 3,700 | ||
Weighted average amortization period intangible assets | 6 years 9 months 18 days | ||
TSI Healthcare, LLC ("TSI") | Maximum | |||
Business Acquisition [Line Items] | |||
Additional cash contingent consideration | $ 22,000 | ||
TSI Healthcare, LLC ("TSI") | Selling, General and Administrative | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 2,004 | ||
TSI Healthcare, LLC ("TSI") | Re-acquired Rights | |||
Business Acquisition [Line Items] | |||
Amortization period of intangible assets | 4 years | ||
TSI Healthcare, LLC ("TSI") | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Amortization period of intangible assets | 11 years | ||
TSI Healthcare, LLC ("TSI") | Data Health Database | |||
Business Acquisition [Line Items] | |||
Amortization period of intangible assets | 3 years |
Business Combinations and Dis_4
Business Combinations and Disposals - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Mar. 31, 2023 | Mar. 31, 2022 |
Preliminary fair value of identifiable intangible assets acquired: | |||
Goodwill | $ 321,756 | $ 267,212 | |
TSI Healthcare, LLC ("TSI") | |||
Business Acquisition [Line Items] | |||
Initial purchase price | $ 50,449 | ||
Fair value of contingent consideration | 3,700 | ||
Payment for option to early terminate lease | 2,000 | ||
Working capital adjustment | (430) | ||
Total preliminary purchase price | 55,719 | ||
Preliminary fair value of the net tangible assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 717 | ||
Accounts receivable | 2,011 | ||
Contract assets | 1,415 | ||
Prepaid expense and other assets | 308 | ||
Equipment and improvements | 879 | ||
Contract assets, net of current | 2,581 | ||
Operating lease assets | 957 | ||
Deferred income tax asset | 1,274 | ||
Other assets | 50 | ||
Accounts payable | (1,773) | ||
Accrued compensation and related benefits | (917) | ||
Contract liabilities | (6,247) | ||
Operating lease liabilities | (533) | ||
Other current liabilities | (964) | ||
Contract liabilities, net of current | (11,644) | ||
Operating lease liabilities, net of current | (639) | ||
Total preliminary net tangible assets acquired and liabilities assumed | (12,525) | ||
Preliminary fair value of identifiable intangible assets acquired: | |||
Goodwill | 54,544 | ||
Total identifiable intangible assets acquired | 68,244 | ||
Total preliminary purchase price | 55,719 | ||
TSI Healthcare, LLC ("TSI") | Re-acquired Rights | |||
Preliminary fair value of identifiable intangible assets acquired: | |||
Identifiable intangible assets acquired | 6,250 | ||
TSI Healthcare, LLC ("TSI") | Customer Relationships | |||
Preliminary fair value of identifiable intangible assets acquired: | |||
Identifiable intangible assets acquired | 5,500 | ||
TSI Healthcare, LLC ("TSI") | Data Health Database | |||
Preliminary fair value of identifiable intangible assets acquired: | |||
Identifiable intangible assets acquired | $ 1,950 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 USD ($) Segment | Mar. 31, 2022 USD ($) Segment | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Number of operating segments | Segment | 1 | 1 |
Goodwill | $ | $ 321,756 | $ 267,212 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets, Other than Capitalized Software Development Costs (Details) - Intangible Assets Other Than Capitalized Software - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 78,850 | $ 88,450 |
Accumulated amortization | (49,882) | (64,147) |
Total | 28,968 | 24,303 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 44,700 | 39,200 |
Accumulated amortization | (32,918) | (29,824) |
Total | 11,782 | 9,376 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 250 | 250 |
Accumulated amortization | (166) | (116) |
Total | 84 | 134 |
Computer Software, Intangible Asset | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 25,700 | 49,000 |
Accumulated amortization | (16,060) | (34,207) |
Total | 9,640 | $ 14,793 |
Re-acquired Rights | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 6,250 | |
Accumulated amortization | (521) | |
Total | 5,729 | |
Data Health Database | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,950 | |
Accumulated amortization | (217) | |
Total | $ 1,733 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization of other intangibles | $ 9,035 | $ 12,397 | $ 21,109 |
Retired amount of fully amortized capitalized software | 10,562 | ||
Customer Relationships, Trade Names and Re-acquired Rights Intangible Assets | Operating Expense | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of other intangibles | 3,665 | 3,525 | 4,449 |
Software Technology and Data Health Database Intangible Assets | Cost of Revenue | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of other intangibles | 5,370 | $ 8,872 | $ 16,660 |
Computer Software, Intangible Asset | Entrada | |||
Finite Lived Intangible Assets [Line Items] | |||
Retired amount of fully amortized capitalized software | 10,500 | ||
Computer Software, Intangible Asset | EagleDream | |||
Finite Lived Intangible Assets [Line Items] | |||
Retired amount of fully amortized capitalized software | $ 12,800 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization of Intangible Assets with Determinable Lives (Details) - Intangible Assets Other Than Capitalized Software - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
2024 | $ 8,977 | |
2025 | 8,403 | |
2026 | 6,280 | |
2027 | 2,475 | |
2028 and beyond | 2,833 | |
Total | 28,968 | $ 24,303 |
Operating Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
2024 | 4,754 | |
2025 | 4,180 | |
2026 | 3,596 | |
2027 | 2,232 | |
2028 and beyond | 2,833 | |
Total | 17,595 | |
Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
2024 | 4,223 | |
2025 | 4,223 | |
2026 | 2,684 | |
2027 | 243 | |
Total | $ 11,373 |
Capitalized Software Costs - Ca
Capitalized Software Costs - Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Research and Development [Abstract] | ||
Gross carrying amount | $ 131,791 | $ 110,155 |
Accumulated amortization | (77,275) | (66,197) |
Net capitalized software costs | $ 54,516 | $ 43,958 |
Capitalized Software Costs - Ad
Capitalized Software Costs - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Research and Development [Abstract] | |||
Amortization of capitalized software costs | $ 22,571 | $ 23,016 | $ 20,108 |
Retired amount of fully amortized capitalized software | $ 10,562 |
Capitalized Software Costs - Es
Capitalized Software Costs - Estimated Amortization of Capitalized Software Costs (Details) - Capitalized Software Costs $ in Thousands | Mar. 31, 2023 USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2024 | $ 27,600 |
2025 | 16,200 |
2026 | 8,900 |
2027 | 1,816 |
Total | $ 54,516 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | ||||||
Nov. 01, 2022 USD ($) Days UsdNote | May 17, 2022 USD ($) | Mar. 12, 2021 USD ($) | Mar. 31, 2023 USD ($) UsdNote Days $ / shares | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Mar. 29, 2018 USD ($) | |
Debt Instrument [Line Items] | |||||||
Leverage ratio | 4 | 3.75 | |||||
Adjusted covenant period option | 4.75 | 4.25 | |||||
Restricted payments cap | $ 25,000,000 | $ 11,500,000 | |||||
Loans outstanding | $ 0 | $ 0 | |||||
Remaining borrowing capacity | 300,000,000 | 300,000,000 | |||||
Amortization of deferred debt issuance costs, including written off | $ 834,000 | 508,000 | $ 1,026,000 | ||||
3.75% Convertible Senior Notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 275,000,000 | ||||||
Interest rate | 3.75% | ||||||
Net proceeds from issuance of notes | $ 266,517,000 | ||||||
Debt, issuance cost | $ 8,483,000 | ||||||
Debt instrument, payment terms | The Notes will accrue interest at a rate of 3.75% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2023. | ||||||
Debt instrument, frequency of interest payment | semi-annually | ||||||
Conversion price percentage on price per share of common stock | 130% | ||||||
Number of trading days exceeds conversion price percentage | Days | 20 | ||||||
Number of consecutive trading days exceeds conversion price percentage | Days | 30 | ||||||
Number of consecutive trading days | Days | 30 | ||||||
Number of consecutive business days | Days | 5 | ||||||
Number of consecutive trading days | Days | 10 | ||||||
Debt instrument price per principal amount of notes | UsdNote | 1 | 1 | |||||
Percentage of last reported sale price per share common stock | 98% | ||||||
Number of trading days | Days | 60 | ||||||
Conversion rate | 38.9454 | ||||||
Principal amount for conversion into common stock | $ 1,000 | ||||||
Initial conversion Price per common stock | $ / shares | $ 25.68 | ||||||
Conversion price minimum percentage | 130% | ||||||
Effective interest rate | 4.48% | ||||||
Maturity date | Nov. 15, 2027 | ||||||
Interest expense | $ 4,240,000 | ||||||
Debt issuance costs | 8,157,000 | ||||||
Amortization of deferred debt issuance costs, including written off | $ 326,000 | ||||||
3.75% Convertible Senior Notes due 2027 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Number of trading days | Days | 20 | ||||||
Debt instrument, not called for redemption face amount | $ 100,000,000 | ||||||
3.75% Convertible Senior Notes due 2027 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Conversion rate | 52.5762 | ||||||
Other Assets | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ 1,498,000 | 2,006,000 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 300,000,000 | $ 300,000,000 | |||||
Additional revolving credit commitments | 150,000,000 | ||||||
Maturity date | Mar. 12, 2026 | ||||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 10,000,000 | ||||||
Swing-Line Loans | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | $ 1,004,000 | $ 791,000 | $ 2,541,000 | ||||
Debt, weighted average interest rate | 5.30% | 0% | 2.20% | ||||
Amortization of deferred debt issuance costs, including written off | $ 508,000 | $ 508,000 | $ 1,026,000 |
Debt - Schedule of Notes Record
Debt - Schedule of Notes Recorded Net of Issuance Costs (Details) - 3.75% Convertible Senior Notes due 2027 $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Principal amount: | $ 275,000 |
Unamortized issuance costs | (8,157) |
Carrying value, net | $ 266,843 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Summary of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 98,719 | $ 59,829 | ||
Restricted cash and cash equivalents | 7,269 | 6,918 | ||
Cash, cash equivalents, and restricted cash | $ 105,988 | $ 66,747 | $ 78,575 | $ 140,319 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 26,365 | $ 24,229 |
Capitalized commissions costs | 13,813 | 11,698 |
Accrued interest on marketable securities | 699 | |
Other current assets | 2,039 | 1,175 |
Prepaid expenses and other current assets | $ 42,916 | $ 37,102 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions - Summary of Equipment and Improvements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 67,021 | $ 78,100 |
Accumulated depreciation and amortization | (60,600) | (68,980) |
Equipment and improvements, net | 6,421 | 9,120 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 35,019 | 36,293 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 20,064 | 19,001 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 7,067 | 13,227 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 4,871 | $ 9,579 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions - Summary of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Capitalized commission costs | $ 26,104 | $ 21,654 |
Deposits | 7,447 | 5,793 |
Debt issuance costs | 1,498 | 2,006 |
Other noncurrent assets | 9,189 | 9,573 |
Other assets | $ 44,238 | $ 39,026 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions - Summary of Accrued Compensation and Related Benefits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Employee-related Liabilities, Current [Abstract] | ||
Accrued bonus | $ 15,550 | $ 27,311 |
Accrued vacation | 13,271 | 11,785 |
Accrued commissions | 5,166 | 5,353 |
Accrued payroll and other | 2,254 | 470 |
Deferred payroll taxes | 3,817 | |
Accrued compensation and related benefits | $ 36,241 | $ 48,736 |
Composition of Certain Financ_8
Composition of Certain Financial Statement Captions - Summary of Other Current and Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | |
Other Liabilities [Abstract] | |||
Accrued legal settlement | [1] | $ 33,990 | |
Care services liabilities | 7,269 | $ 6,918 | |
Customer credit balances and deposits | 5,417 | 4,622 | |
Sales returns reserves and other customer liabilities | 5,390 | 5,725 | |
Accrued interest payable | 4,244 | ||
Accrued consulting and outside services | 3,957 | 4,799 | |
Accrued royalties | 3,248 | 3,557 | |
Accrued employee benefits and withholdings | 3,195 | 3,535 | |
Accrued EDI expense | 3,064 | 2,168 | |
Accrued outsourcing costs | 3,023 | 2,264 | |
Accrued self insurance expense | 2,359 | 2,208 | |
Accrued taxes payable | 1,746 | 540 | |
Accrued hosting costs | 873 | 12,510 | |
Accrued legal expense | 782 | 1,439 | |
Other accrued expenses | 5,242 | 3,248 | |
Other current liabilities | 83,799 | 53,533 | |
Uncertain tax positions | 3,950 | 4,196 | |
Contingent consideration related to acquisitions, noncurrent | 3,800 | ||
Other liabilities | 524 | 374 | |
Other noncurrent liabilities | $ 8,274 | $ 4,570 | |
[1] Refer to Note 17, "Commitments, Guarantees and Contingencies" for more details. |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for (Benefit of) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Current: | |||
Federal taxes | $ 13,857 | $ 1,090 | $ 6,562 |
State taxes | 259 | 1,081 | 1,226 |
Foreign taxes | 1,781 | 1,192 | 826 |
Total current taxes | 15,897 | 3,363 | 8,614 |
Deferred: | |||
Federal taxes | (9,562) | 43 | (6,053) |
State taxes | 311 | (379) | (2,068) |
Foreign taxes | 312 | 551 | (733) |
Total deferred taxes | (8,939) | 215 | (8,854) |
Provision for (benefit of) income taxes | $ 6,958 | $ 3,578 | $ (240) |
Income Taxes - Summary of Pro_2
Income Taxes - Summary of Provision for (Benefit of) Income Taxes Differs from the Amount Computed at Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at United States federal statutory rate | $ 904 | $ 1,091 | $ 1,948 |
Impact of legal and audit settlements | 3,339 | (56) | |
Impact of foreign withholding tax | 2,811 | ||
Executive compensation limitation | 2,575 | 2,068 | 775 |
Impact of net operating loss adjustment | 1,814 | (100) | (220) |
State income taxes | 1,473 | 950 | 572 |
Impact of foreign operations | 311 | 356 | (1,203) |
Compensation | 66 | 1,059 | 865 |
Non-deductible expenses | (27) | (258) | |
Impact of deferred adjustments | (11) | 188 | (31) |
Impact of amended returns | (122) | 163 | (9) |
Impact of valuation allowance | (259) | (882) | 563 |
Impact of uncertain tax positions | (366) | 1,620 | 278 |
Return to provision true-ups | (511) | (152) | (15) |
Research and development tax credits | (5,066) | (2,756) | (3,449) |
Provision for (benefit of) income taxes | $ 6,958 | $ 3,578 | $ (240) |
Income Taxes - Summary of Pro_3
Income Taxes - Summary of Provision for (Benefit of) Income Taxes Differs from the Amount Computed at Federal Statutory Rate (Parenthetical) (Details) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Compensation and benefits | $ 14,506 | $ 17,494 |
Capitalized software | 14,226 | (647) |
Deferred revenue | 9,923 | 9,245 |
Research and development credit | 7,297 | 7,165 |
Accrued legal settlement | 4,035 | |
Net operating losses | 2,470 | 6,018 |
Operating lease liabilities | 1,937 | 3,774 |
Foreign deferred taxes | 1,444 | 1,755 |
Allowance for credit losses | 1,383 | 1,658 |
Accounts receivable | 47 | 511 |
Total deferred tax assets | 57,268 | 46,973 |
Deferred tax liabilities: | ||
Prepaid expense | (11,656) | (10,895) |
Intangibles assets | (8,845) | (8,703) |
Other | (1,254) | (630) |
Operating right-of-use assets | (816) | (1,713) |
Accelerated depreciation | (351) | (640) |
Valuation allowance | (4,874) | (5,133) |
Deferred tax assets, net | $ 29,472 | $ 19,259 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||
Foreign withholding related taxes | $ 24,729,000 | |||
Unrecognized tax benefits, decrease resulting from prior period tax positions | 365,000 | |||
Liability for unrecognized tax benefits | 5,911,000 | $ 6,112,000 | $ 4,426,000 | $ 4,192,000 |
Income tax examination, interest accrued | 461,000 | 286,000 | ||
Income tax examination, interest expense | 174,000 | 199,000 | ||
Income tax examination, interest income | 85,000 | |||
Income tax examination, penalty accrued | 0 | 0 | 0 | |
Income tax examination, penalty expense | $ 0 | 0 | $ 0 | |
Period within which the company does not anticipate total unrecognized tax benefits to change | within the next twelve months | |||
Research and Development | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward, amount | $ 8,450,000 | 8,155,000 | ||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 5,709,000 | $ 10,801,000 | ||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 1,272,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Liability for unrecognized tax benefits | $ 6,112 | $ 4,426 | $ 4,192 |
Additions for prior year tax positions | 311 | 1,184 | 220 |
Additions for current year tax positions | 941 | 763 | 635 |
Reductions for prior year tax positions | (1,453) | (261) | (621) |
Liability for unrecognized tax benefits | $ 5,911 | $ 6,112 | $ 4,426 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, maximum annual contributions per employee, percent | 75% | ||
Defined contribution plan, maximum annual bonus contributions per employee, percent | 10% | ||
Deferred compensation | $ 8,033 | $ 7,230 | |
Cash surrender value of life insurance | 8,060 | 8,098 | |
401(k) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, net contributions by employer | 5,973 | 6,922 | $ 4,625 |
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, net contributions by employer | $ 129 | $ 116 | $ 79 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
Oct. 25, 2022 | Oct. 26, 2021 | Sep. 20, 2021 | Oct. 26, 2020 | Oct. 23, 2018 | Dec. 29, 2016 | Aug. 11, 2014 | Jan. 27, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2017 | Aug. 31, 2015 | Oct. 31, 2005 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Outstanding stock options | 1,130,813 | 1,453,739 | 2,791,084 | 3,001,350 | |||||||||||||||||
Total share-based compensation | $ 33,458,000 | $ 26,552,000 | $ 22,710,000 | ||||||||||||||||||
Fair value of options vested | $ 352,000 | $ 2,248,000 | 3,272,000 | ||||||||||||||||||
Stock repurchase program, authorized amount | $ 100,000,000 | $ 60,000,000 | |||||||||||||||||||
Stock repurchased during period, shares | 2,679,336 | 2,169,896 | |||||||||||||||||||
Stock repurchased during period, value | $ 49,878,000 | [1] | $ 35,874,000 | [2] | |||||||||||||||||
Weighted-average share repurchase price | $ 18.62 | $ 16.53 | |||||||||||||||||||
Stock repurchased available during period value | $ 74,303,000 | ||||||||||||||||||||
7.4% Previously Owned Shareholder | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Stock repurchased during period, shares | 2,000,000 | ||||||||||||||||||||
Stock repurchased during period, value | $ 33,100,000 | ||||||||||||||||||||
Percentage of shares repurchased on outstanding shares | 3% | ||||||||||||||||||||
Percentage of shares previously owned | 7.40% | ||||||||||||||||||||
Employee Stock Options | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Outstanding stock options | 1,124,613 | ||||||||||||||||||||
Total share-based compensation | $ 82,000 | $ 1,251,000 | 2,536,000 | ||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 2,622,317 | ||||||||||||||||||||
Performance Stock Unit Awards | Units Granted On October 2018 | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 248,140 | ||||||||||||||||||||
Percentage of shares issued, minimum | 50% | ||||||||||||||||||||
Percentage of shares issued, maximum | 200% | ||||||||||||||||||||
Weighted-average grant date fair value | $ 17.84 | ||||||||||||||||||||
Percentage of performance stock units tied to 3-year total shareholder return | 34% | ||||||||||||||||||||
Percentage of performance stock units tied to fiscal year 2021 revenue | 33% | ||||||||||||||||||||
Percentage performance stock units tied to fiscal year 2021 adjusted earnings per share goals | 33% | ||||||||||||||||||||
Performance Stock Unit Awards | Units Granted On December 2019 and January 2020 | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Shares were ultimately earned and issued during the performance period | 157,735 | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 279,587 | 0 | |||||||||||||||||||
Percentage of shares issued, minimum | 42.50% | ||||||||||||||||||||
Percentage of shares issued, maximum | 172.50% | ||||||||||||||||||||
Weighted-average grant date fair value | $ 16.02 | ||||||||||||||||||||
Percentage of performance stock units tied to fiscal year 2021 revenue goal | 80% | ||||||||||||||||||||
Percentage of performance stock units tied to fiscal year 2022 revenue goal | 20% | ||||||||||||||||||||
Vesting period for the 3-year total shareholder return | 3 years | ||||||||||||||||||||
Performance Stock Unit Awards | Units Granted On October 2022 | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Percentage Of Performance Stock Units Tied To Fiscal Year Two Thousand Twenty Five Revenue Goal | 50% | ||||||||||||||||||||
Total share-based compensation | $ 7,798,000 | $ 3,827,000 | $ 3,284,000 | ||||||||||||||||||
Percentage Of Performance Stock Units Tied To Fiscal Year Two Thousand Twenty Five E B I T D A Goal | 50% | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 475,337 | ||||||||||||||||||||
Percentage of shares issued, minimum | 0% | ||||||||||||||||||||
Percentage of shares issued, maximum | 210% | ||||||||||||||||||||
Weighted-average grant date fair value | $ 22.81 | ||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 3,297,512 | 3,242,763 | 2,263,569 | 2,312,780 | |||||||||||||||||
Total share-based compensation | $ 24,925,000 | $ 20,821,000 | $ 16,371,000 | ||||||||||||||||||
Stock option recognized over weighted average period (in years) | 1 year 9 months 18 days | ||||||||||||||||||||
Total unrecognized compensation costs | $ 39,407,000 | ||||||||||||||||||||
Stock awards vested as of vesting | $ 26,929,000 | $ 18,156,000 | $ 14,138,000 | ||||||||||||||||||
Net share-settled upon vesting | 592,165 | 356,490 | 349,895 | ||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 1,840,211 | 2,391,578 | 1,222,863 | ||||||||||||||||||
Restricted Stock | Minimum | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 1 year | ||||||||||||||||||||
Restricted Stock | Maximum | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Performance Stock Units and Awards | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares granted | 123,082 | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 0 | ||||||||||||||||||||
Shares were ultimately earned and issued during the performance period | 102,813 | ||||||||||||||||||||
Performance Stock Units | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Stock option recognized over weighted average period (in years) | 2 years 2 months 12 days | ||||||||||||||||||||
Total unrecognized compensation costs | $ 5,182,000 | ||||||||||||||||||||
Performance Stock Units | Units Granted on September 2021 | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Shares were ultimately earned and issued during the performance period | 24,334 | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 450,000 | ||||||||||||||||||||
Weighted-average grant date fair value | $ 10.52 | ||||||||||||||||||||
Award continued service period | 3 years | ||||||||||||||||||||
Performance Stock Units | Units Granted on October 2020 | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 408,861 | ||||||||||||||||||||
Percentage of shares issued, minimum | 8.50% | ||||||||||||||||||||
Percentage of shares issued, maximum | 199.50% | ||||||||||||||||||||
Weighted-average grant date fair value | $ 16.25 | ||||||||||||||||||||
Percentage of performance stock units tied to fiscal year 2021 revenue goal | 80% | ||||||||||||||||||||
Percentage of performance stock units tied to fiscal year 2022 revenue goal | 20% | ||||||||||||||||||||
Vesting period for the 3-year total shareholder return | 3 years | ||||||||||||||||||||
Performance Stock Units | Units Granted on October 2021 | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Shares were ultimately earned and issued during the performance period | 33,998 | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 476,713 | ||||||||||||||||||||
Weighted-average grant date fair value | $ 13.02 | ||||||||||||||||||||
Award continued service period | 3 years | ||||||||||||||||||||
2005 Employee Stock Option and Incentive Plan | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Common stock reserved for issuance | 4,800,000 | ||||||||||||||||||||
Outstanding stock options | 6,200 | ||||||||||||||||||||
2005 Employee Stock Option and Incentive Plan | Employee Stock Options | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Expiration period (in years) | 10 years | ||||||||||||||||||||
Share-based compensation award plan , expiration date | May 25, 2015 | ||||||||||||||||||||
2015 Plan | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Common stock reserved for issuance | 1,850,000 | 3,575,000 | 6,000,000 | ||||||||||||||||||
Common stock reserved | 11,500,000 | ||||||||||||||||||||
Shares available for future grant | 1,525,929 | ||||||||||||||||||||
2015 Plan | Employee Stock Options | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Expiration period (in years) | 10 years | ||||||||||||||||||||
Number of shares granted | 0 | 0 | 0 | ||||||||||||||||||
Inducement Plan | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Common stock reserved for issuance | 1,500,000 | ||||||||||||||||||||
Shares available for future grant | 159,384 | ||||||||||||||||||||
Inducement Plan | Restricted Stock | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 675,195 | ||||||||||||||||||||
Inducement Plan | Performance Stock Unit Awards | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 425,666 | ||||||||||||||||||||
Employee Share Purchase Plan | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||
Common stock reserved for issuance | 4,000,000 | 2,949,010 | |||||||||||||||||||
Total share-based compensation | $ 653,000 | $ 553,000 | $ 519,000 | ||||||||||||||||||
Maximum percentage of gross payroll deduction | 15% | ||||||||||||||||||||
Purchase price as a percentage of fair market value | 90% | ||||||||||||||||||||
Maximum shares purchase in a single transaction | 1,500 | ||||||||||||||||||||
Maximum amount purchased in a calendar year | $ 25,000,000 | ||||||||||||||||||||
Shares issued | 1,050,990 | ||||||||||||||||||||
[1] Weighted-average repurchase price (dollars per share) for the year ended March 31, 2023 was $ 18.62 . Weighted-average repurchase price (dollars per share) for the year ended March 31, 2022 was $ 16.53 . |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Costs and expenses: | |||
Total share-based compensation | $ 33,458 | $ 26,552 | $ 22,710 |
Income tax benefit | (7,641) | (6,221) | (5,415) |
Decrease in net income | 25,817 | 20,331 | 17,295 |
Cost of Revenue | |||
Costs and expenses: | |||
Total share-based compensation | 3,082 | 2,183 | 1,991 |
Research and Development Costs | |||
Costs and expenses: | |||
Total share-based compensation | 4,243 | 4,508 | 4,036 |
Selling, General and Administrative | |||
Costs and expenses: | |||
Total share-based compensation | $ 26,133 | $ 19,861 | $ 16,683 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding, Beginning | 1,453,739 | 2,791,084 | 3,001,350 | |
Number of Shares, Exercised | (300,926) | (1,248,525) | (116,916) | |
Number of Shares, Forfeited/Canceled | (20,000) | (32,320) | (47,350) | |
Number of Shares, Expired | (2,000) | (56,500) | (46,000) | |
Number of Shares, Outstanding, Ending | 1,130,813 | 1,453,739 | 2,791,084 | 3,001,350 |
Vested and expected to vest, March 31, 2023 | 1,130,813 | |||
Exercisable, March 31, 2023 | 1,130,813 | |||
Weighted- Average Exercise Price per Share | ||||
Weighted-Average Exercise Price per Share, Outstanding, Beginning | $ 14.80 | $ 14.47 | $ 14.83 | |
Weighted-Average Exercise Price per Share, Exercised | 14.57 | 13.76 | 16.21 | |
Weighted-Average Exercise Price per Share, Forfeited/Canceled | 21.27 | 19.51 | 18.58 | |
Weighted-Average Exercise Price per Share, Expired | 15.99 | 18.85 | 29.17 | |
Weighted-Average Exercise Price per Share, Outstanding, Ending | 14.75 | $ 14.80 | $ 14.47 | $ 14.83 |
Vested and expected to vest, March 31, 2023 | 14.75 | |||
Exercisable, March 31, 2023 | $ 14.75 | |||
Weighted- Average Remaining Contractual Life (years) | ||||
Outstanding | 1 year 8 months 12 days | 2 years 10 months 24 days | 3 years 8 months 12 days | 4 years 8 months 12 days |
Exercised | 1 year 7 months 6 days | 2 years 8 months 12 days | 3 years 3 months 18 days | |
Forfeited/Canceled | 3 years | 3 years 8 months 12 days | ||
Vested and expected to vest, March 31, 2023 | 1 year 8 months 12 days | |||
Exercisable, March 31, 2023 | 1 year 8 months 12 days | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 3,011 | $ 8,886 | $ 10,303 | |
Exercised | 1,623 | $ 2,638 | $ 303 | |
Vested and expected to vest, March 31, 2023 | 3,011 | |||
Exercisable, March 31, 2023 | $ 3,011 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Non-vested Stock Option (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-vested, Number of Shares [Roll Forward] | |||
Non-Vested Number of Shares, Beginning Balance | 50,382 | 459,339 | 1,091,672 |
Non-Vested Number of Shares Vested | (50,382) | (391,457) | (605,433) |
Non-Vested Number of Shares Forfeited/Canceled | (17,500) | (26,900) | |
Non-Vested Number of Shares, Ending Balance | 50,382 | 459,339 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-vested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Grant-Date Fair Value per Share, Non-vested, Beginning | $ 6.98 | $ 5.96 | $ 5.67 |
Weighted-Average Grant-Date Fair Value per Share, Vested | $ 6.98 | 5.74 | 5.40 |
Weighted-Average Grant-Date Fair Value per Share, Forfeited/Canceled | 7.96 | 6.80 | |
Weighted-Average Grant-Date Fair Value per Share, Non-vested, Ending | $ 6.98 | $ 5.96 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares Outstanding Beginning Balance | 3,242,763 | 2,263,569 | 2,312,780 |
Granted | 1,840,211 | 2,391,578 | 1,222,863 |
Vested | (1,479,453) | (1,109,520) | (1,053,792) |
Canceled | (306,009) | (302,864) | (218,282) |
Number of Shares Outstanding Ending Balance | 3,297,512 | 3,242,763 | 2,263,569 |
Weighted Average Grant-Date Fair Value per Share, Beginning of Period | $ 15.30 | $ 14.58 | $ 16.74 |
Weighted Average Grant-Date Fair Value per Share, Granted | 18.23 | 15.87 | 12.04 |
Weighted Average Grant-Date Fair Value per Share, Vested | 15.45 | 15.17 | 16.22 |
Weighted Average Grant-Date Fair Value per Share, Canceled | 16.82 | 14.94 | 15.30 |
Weighted Average Grant-Date Fair Value per Share, End of Period | $ 16.72 | $ 15.30 | $ 14.58 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies - Additional Information (Details) $ in Thousands, People in Millions | 12 Months Ended | ||
Mar. 31, 2023 USD ($) | Apr. 28, 2023 People | ||
Gain Contingencies [Line Items] | |||
Applicable program documentation period | 365 days | ||
Legal and settlement expenses | $ 35,095 | ||
Settlement expenses | 32,400 | ||
Legal fees | 2,695 | ||
Accrued legal settlement | [1] | $ 33,990 | |
Subsequent Event | |||
Gain Contingencies [Line Items] | |||
Number of individuals impacted in security incident | People | 1 | ||
[1] Refer to Note 17, "Commitments, Guarantees and Contingencies" for more details. |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 2,473 | $ 539 | $ 2,562 | |
Remaining restructuring liability | $ 1,990 | |||
COVID-19 Pandemic | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring plan, percentage of number of positions eliminated | 3% |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Sales Return Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 3,378 | $ 3,593 | $ 4,191 |
Additions | 6,248 | 5,381 | 6,595 |
Deductions | (6,904) | (5,596) | (7,193) |
Balance at End of Year | 2,722 | 3,378 | 3,593 |
Allowance For Credit Loss | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 3,888 | 4,205 | 3,549 |
Additions | 1,914 | 1,915 | 2,834 |
Deductions | (1,940) | (2,232) | (2,178) |
Balance at End of Year | 3,862 | 3,888 | 4,205 |
Valuation Allowance for Deferred Taxes | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 5,133 | 6,015 | 5,452 |
Additions | 1,500 | 7 | 877 |
Acquisition Related Additions | 0 | 0 | 0 |
Deductions | (1,759) | (889) | (314) |
Balance at End of Year | $ 4,874 | $ 5,133 | $ 6,015 |