Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2020 | Jul. 28, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | NEXTGEN HEALTHCARE, INC. | |
Trading Symbol | NXGN | |
Entity Central Index Key | 0000708818 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-12537 | |
Entity Tax Identification Number | 95-2888568 | |
Entity Address, Address Line One | 18111 Von Karman Avenue | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92612 | |
City Area Code | (949) | |
Local Phone Number | 255-2600 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | CA | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 66,669,360 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 192,323 | $ 138,012 |
Restricted cash and cash equivalents | 8,032 | 2,307 |
Accounts receivable, net | 76,851 | 80,006 |
Contract assets | 13,740 | 12,529 |
Income taxes receivable | 579 | 856 |
Prepaid expenses and other current assets | 25,899 | 26,305 |
Total current assets | 317,424 | 260,015 |
Equipment and improvements, net | 18,525 | 19,836 |
Capitalized software costs, net | 37,853 | 37,004 |
Operating lease assets | 29,280 | 31,004 |
Deferred income taxes, net | 10,604 | 10,620 |
Contract assets, net of current | 2,878 | 3,007 |
Intangibles, net | 51,561 | 57,809 |
Goodwill | 267,165 | 267,165 |
Other assets | 34,516 | 33,656 |
Total assets | 769,806 | 720,116 |
Current liabilities: | ||
Accounts payable | 9,199 | 10,521 |
Contract liabilities | 51,160 | 56,786 |
Accrued compensation and related benefits | 22,454 | 23,792 |
Income taxes payable | 1,373 | 148 |
Operating lease liabilities | 10,669 | 10,619 |
Other current liabilities | 43,616 | 41,352 |
Total current liabilities | 138,471 | 143,218 |
Deferred compensation | 5,988 | 5,300 |
Line of credit | 179,000 | 129,000 |
Operating lease liabilities, net of current | 36,135 | 38,823 |
Other noncurrent liabilities | 6,570 | 3,281 |
Total liabilities | 366,164 | 319,622 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity: | ||
Common stock, $0.01 par value; authorized 100,000 shares; issued and outstanding 66,669 and 66,134 shares at June 30, 2020 and March 31, 2020, respectively | 667 | 661 |
Additional paid-in capital | 286,836 | 282,857 |
Accumulated other comprehensive loss | (2,156) | (2,143) |
Retained earnings | 118,295 | 119,119 |
Total shareholders' equity | 403,642 | 400,494 |
Total liabilities and shareholders' equity | $ 769,806 | $ 720,116 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Mar. 31, 2020 |
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 | 66,669,000 | 66,134,000 |
Common stock, shares outstanding | 66,669,000 | 66,134,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||
Total revenues | $ 130,879 | $ 131,861 |
Cost of revenue: | ||
Total cost of revenue | 66,369 | 65,231 |
Amortization of capitalized software costs and acquired intangible assets | 9,899 | 8,413 |
Gross profit | 64,510 | 66,630 |
Operating expenses: | ||
Selling, general and administrative | 40,737 | 40,128 |
Research and development costs, net | 18,222 | 22,051 |
Amortization of acquired intangible assets | 1,112 | 865 |
Impairment of assets | 489 | |
Restructuring costs | 2,562 | 1,707 |
Total operating expenses | 62,633 | 65,240 |
Income from operations | 1,877 | 1,390 |
Interest income | 6 | 79 |
Interest expense | (1,107) | (472) |
Other income (expense), net | 16 | (133) |
Income before provision for (benefit of) income taxes | 792 | 864 |
Provision for (benefit of) income taxes | 1,616 | (380) |
Net income (loss) | (824) | 1,244 |
Other comprehensive income: | ||
Foreign currency translation, net of tax | (13) | 54 |
Comprehensive income (loss) | $ (837) | $ 1,298 |
Net income (loss) per share: | ||
Basic | $ (0.01) | $ 0.02 |
Diluted | $ (0.01) | $ 0.02 |
Weighted-average shares outstanding: | ||
Basic | 66,296 | 65,015 |
Diluted | 66,296 | 65,353 |
Recurring | ||
Revenues: | ||
Total revenues | $ 119,522 | $ 119,447 |
Cost of revenue: | ||
Total cost of revenue | 50,429 | 50,540 |
Software, Hardware, and Other Non-recurring | ||
Revenues: | ||
Total revenues | 11,357 | 12,414 |
Cost of revenue: | ||
Total cost of revenue | $ 6,041 | $ 6,278 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Mar. 31, 2019 | $ 375,946 | $ 648 | $ 264,908 | $ 111,621 | $ (1,231) |
Balance, Shares at Mar. 31, 2019 | 64,838 | ||||
Common stock issued under stock plans, net of shares withheld for taxes | (1,305) | $ 6 | (1,311) | ||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 545 | ||||
Stock-based compensation | 4,891 | 4,891 | |||
Other comprehensive income: | |||||
Translation adjustments | 54 | 54 | |||
Net income (loss) | 1,244 | 1,244 | |||
Balance at Jun. 30, 2019 | 380,830 | $ 654 | 268,488 | 112,865 | (1,177) |
Balance, Shares at Jun. 30, 2019 | 65,383 | ||||
Balance at Mar. 31, 2020 | 400,494 | $ 661 | 282,857 | 119,119 | (2,143) |
Balance, Shares at Mar. 31, 2020 | 66,134 | ||||
Common stock issued under stock plans, net of shares withheld for taxes | (1,408) | $ 6 | (1,414) | ||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 535 | ||||
Stock-based compensation | 5,393 | 5,393 | |||
Other comprehensive income: | |||||
Translation adjustments | (13) | (13) | |||
Net income (loss) | (824) | (824) | |||
Balance at Jun. 30, 2020 | $ 403,642 | $ 667 | $ 286,836 | $ 118,295 | $ (2,156) |
Balance, Shares at Jun. 30, 2020 | 66,669 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (824) | $ 1,244 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of capitalized software costs | 4,763 | 4,125 |
Amortization of debt issuance costs | 177 | 177 |
Amortization of other intangibles | 6,248 | 5,153 |
Change in fair value of contingent consideration | 25 | |
Deferred income taxes | 16 | (13) |
Depreciation | 1,996 | 2,092 |
Excess tax deficiency (benefit) from share-based compensation | 867 | (189) |
Impairment of assets | 489 | |
Loss on disposal of equipment and improvements | 41 | |
Non-cash operating lease costs | 1,683 | 1,815 |
Provision for bad debts | 869 | 606 |
Restructuring costs, net of amounts paid | 1,707 | |
Share-based compensation | 5,393 | 4,891 |
Changes in assets and liabilities, net of amounts acquired: | ||
Accounts receivable | 2,286 | 5,105 |
Contract assets | (1,082) | 1,396 |
Accounts payable | (1,391) | 416 |
Contract liabilities | (5,626) | (2,046) |
Accrued compensation and related benefits | (1,338) | (9,994) |
Income taxes | 635 | 982 |
Deferred compensation | 688 | 141 |
Operating lease liabilities | (2,596) | (2,286) |
Other assets and liabilities | 4,883 | 1,145 |
Net cash provided by operating activities | 17,672 | 16,997 |
Cash flows from investing activities: | ||
Additions to capitalized software costs | (5,612) | (4,735) |
Additions to equipment and improvements | (616) | (3,689) |
Net cash used in investing activities | (6,228) | (8,424) |
Cash flows from financing activities: | ||
Proceeds from line of credit | 50,000 | |
Repayments on line of credit | (5,000) | |
Proceeds from issuance of shares under employee plans | 426 | 1,096 |
Payments for taxes related to net share settlement of equity awards | (1,834) | (2,401) |
Net cash provided by (used in) financing activities | 48,592 | (6,305) |
Net increase in cash, cash equivalents, and restricted cash | 60,036 | 2,268 |
Cash, cash equivalents, and restricted cash at beginning of period | 140,319 | 34,522 |
Cash, cash equivalents, and restricted cash at end of period | 200,355 | 36,790 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 206 | 257 |
Cash refunds from income taxes | 91 | 1,430 |
Cash paid for interest | 947 | 275 |
Cash paid for amounts included in the measurement of operating lease liabilities | 3,133 | 2,617 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 5,324 | |
Accrued purchases of equipment and improvements | $ 69 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Principles of Consolidation. The condensed consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements as of June 30, 2020 and for the three months ended June 30, 2020 have been prepared in accordance with the requirements of Quarterly Report on Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments which are necessary for a fair statement of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. References to amounts in the condensed consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. Use of Estimates. In late 2019, the emergence of a novel coronavirus, or COVID-19, was reported and in January 2020, the World Health Organization (“WHO”), declared it a Public Health Emergency of International Concern. In March 2020, the WHO escalated COVID-19 as a pandemic. The extent to which COVID-19 impacts our business and financial results will depend on numerous evolving factors including, but not limited to, the magnitude and duration of COVID-19; the impact on our employees; the extent to which it will impact worldwide macroeconomic conditions, including interest rates, employment rates, and health insurance coverage; the speed of the anticipated recovery; and governmental and business reactions to the pandemic. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 at June 30, 2020 and through the date of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, our allowances for doubtful accounts and the carrying value of goodwill and other long-lived assets. While there was not a material impact to our consolidated financial statements at and for the quarter ended June 30, 2020, our future assessment of the magnitude and duration of COVID-19, as well as other factors could result in material impacts to our consolidated financial statements in future reporting periods. Share-Based Compensation. The following table summarizes total share-based compensation expense included in the condensed consolidated statements of net income (loss) and comprehensive income (loss) for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Costs and expenses: Cost of revenue $ 424 $ 463 Research and development costs 917 1,028 Selling, general and administrative 4,052 3,400 Total share-based compensation 5,393 4,891 Income tax benefit (1,264 ) (1,215 ) Decrease in net income $ 4,129 $ 3,676 Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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. 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 amended and restated revolving credit agreement e are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our condensed consolidated financial statements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Early adoption is permitted, including adoption in an interim period. ASU 2019-12 is effective for us in the first quarter of fiscal 2022. We are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our condensed consolidated financial statements. We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contract with Customer | 2. Revenue from Contracts 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, EDI, 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. 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: Three Months Ended June 30, 2020 2019 Recurring revenues: Subscription services $ 35,360 $ 30,144 Support and maintenance 38,547 39,652 Managed services 22,493 25,681 Electronic data interchange and data services 23,122 23,970 Total recurring revenues 119,522 119,447 Software, hardware, and other non-recurring revenues: Software license and hardware 4,740 7,095 Other non-recurring services 6,617 5,319 Total software, hardware and other non-recurring revenues 11,357 12,414 Total revenues $ 130,879 $ 131,861 Recurring revenues consists of subscription services, support and maintenance, managed services, and EDI 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, patient pay 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 judgement 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, patient pay services, and other recurring services are satisfied as the corresponding services are provided and revenue is recognized as such services are rendered. Electronic data interchange and data services. Performance obligations related to EDI and other transaction processing services are satisfied at the point in time the services are rendered. The transfer of control occurs when the transaction processing services are delivered and the customer receives the benefits from the services provided. 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 June 30, 2020, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $505,700, of which we expect to recognize approximately 8% as services are rendered or goods are delivered , 54 As of June 30, 2019, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $492,100, of which we expect to recognize approximately 10% as services are rendered or goods are delivered , 50% 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 condensed 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 condensed 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 three months ended June 30, 2020 and 2019, we recognized $20,826 and $19,960, respectively, of revenues that were included in the contract liability balance at 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 $25,105 as of June 30, 2020, of which $7,435 is classified as current and included as prepaid expenses and other current assets and $17,670 is classified as long-term and included within other assets on our condensed consolidated balance sheets, based on the expected timing of expense recognition. During the three months ended June 30, 2020 and 2019, we recognized $2,240 and $1,662, respectively, of commissions expense. Commissions expense primarily relate to the amortization of capitalized commissions costs, which is included as a selling, general and administrative expense in the condensed consolidated statements of net income (loss) and comprehensive income (loss). |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | 3. Accounts Receivable We adopted ASU 2016-13 using the modified retrospective transition approach, which required the recognition of expected credit losses for our accounts receivable and our contract assets, consisting of unbilled receivables. The adoption of the new guidance did not have a material impact on our condensed consolidated financial statements as the expected credit loss model was not significantly different from our prior policy and methodology for determining the allowance for doubtful accounts. As part of our assessment of the adequacy of the allowance for doubtful accounts, we considered 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, including the potential impacts of the COVID-19 pandemic, that may affect a client’s ability to pay, or other client-specific factors Accounts receivable includes invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Allowance for doubtful accounts are reported as a component of accounts receivable as summarized below: June 30, 2020 March 31, 2020 Accounts receivable, gross $ 80,771 $ 83,555 Allowance for doubtful accounts (3,920 ) (3,549 ) Accounts receivable, net $ 76,851 $ 80,006 Changes in the allowance for doubtful accounts are summarized as follows: Balance as of March 31, 2020 $ (3,549 ) Additions charged to costs and expenses 869 Deductions (1,240 ) Balance as of June 30, 2020 $ (3,920 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value 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 June 30, 2020 and March 31, 2020: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs June 30, 2020 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 192,323 $ 192,323 $ — $ — Restricted cash and cash equivalents 8,032 8,032 — — $ 200,355 $ 200,355 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 1,925 $ — $ — $ 1,925 $ 1,925 $ — $ — $ 1,925 Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2020 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 138,012 $ 138,012 $ — $ — Restricted cash and cash equivalents 2,307 2,307 — — $ 140,319 $ 140,319 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 1,900 $ — $ — $ 1,900 $ 1,900 $ — $ — $ 1,900 (1) Cash equivalents consist primarily of money market funds. 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 three months ended June 30, 2020: Total Liabilities Balance at March 31, 2020 $ 1,900 Fair value adjustments 25 Balance at June 30, 2020 $ 1,925 The contingent consideration liability as of June 30, 2020 and March 31, 2020 relates to the acquisition of Topaz Information Systems, LLC (see Note 6) and is reflected within other noncurrent liabilities in our condensed consolidated balance sheets. During the three months ended June 30, 2020, we recorded $25 related to the accretion of the present value discount of the contingent consideration liability. The categorization of the framework used to measure fair value of the contingent consideration liabilities were considered to be 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 liabilities on a recurring basis and any adjustments to fair value subsequent to the initial measurement period are reflected in the condensed consolidated statements of net income (loss) and comprehensive income (loss). Key assumptions included probability-adjusted achievement estimates of applicable bookings targets that were not observable in the market. We believe that the fair value of 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. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 5. Leases We have operating lease agreements for our offices in the United States and India with lease periods expiring between 2020 and 2026. ASC 842 requires the recognition of leasing arrangements 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. 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 condensed consolidated balance sheets. Operating right-of-use lease assets are classified as operating lease assets on our condensed 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 condensed consolidated statements of net income (loss) and Components of operating lease costs are summarized as follows: Three Months Ended Three Months Ended June 30, 2020 June 30, 2019 Operating lease costs $ 2,098 $ 2,163 Short-term lease costs — 26 Variable lease costs 297 139 Less: Sublease income (125 ) (28 ) Total operating lease costs $ 2,270 $ 2,300 Supplemental cash flow information related to operating leases is summarized as follows: Three Months Ended Three Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,133 $ 2,617 Operating lease assets obtained in exchange for operating lease liabilities — 5,324 As of June 30, 2020, our operating leases had a weighted average remaining lease term of 4.4 years and a weighted average discount rate of 4.2%. Future minimum aggregate lease payments under operating leases as of June 30, 2020 are summarized as follows: For the year ended March 31, 2021 (remaining nine months) $ 9,457 2022 12,121 2023 11,504 2024 9,632 2025 7,286 Thereafter 1,784 Total future lease payments 51,784 Less interest (4,980 ) Total lease liabilities $ 46,804 |
Business Combinations
Business Combinations | 3 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | 6. Business Combinations On October 4, 2019, we completed the acquisition of Topaz Information Systems, LLC ("Topaz") pursuant to the Membership Interest Purchase Agreement, dated October 4, 2019. Topaz is based in Phoenix, AZ and provides healthcare solutions to behavioral health and social services organizations that utilize the NextGen platform. Its extensive clinical content and domain expertise has been instrumental in our ability to compete and win. By combining our companies, we are positioned to provide the platform and domain expertise to deliver integrated and collaborative care in a re-energized behavioral health market. The preliminary purchase price of Topaz is summarized in the table below. On December 6, 2019, we completed the acquisition of Medfusion, Inc. (“Medfusion”) pursuant to the Agreement and Plan of Merger, dated November 12, 2019. Headquartered in Cary, North Carolina, Medfusio n provides software application services which enable healthcare providers to better serve its patients through enhanced communication. Services are delivered through a standard web browser and typically include features such as appointment scheduling, patient preregistration, prescription renewal, ask a clinician, website development, patient payment, and online bill payment. Medfusion is a portal and patient pay player with a focu On December 17, 2019, we completed the acquisition of OTTO Health, LLC (“OTTO”), pursuant to the Agreement and Plan of Merger, dated December 11, 2019. Based in Boulder, Colorado, OTTO is a telehealth platform that seamlessly integrates into electronic health records (“EHR") systems allowing providers to have video visits with their patients as part of their normal workflows. OTTO partners closely with EHR providers to create a streamlined user experience, while maintaining the EHR and practice management system as the single source of truth. We accounted for the acquisitions as business combinations using the acquisition method of accounting. The purchase price allocation of the Topaz, Medfusion, and OTTO acquisitions are deemed to be preliminary. The purchase price was allocated to the tangible and intangible assets a cquired 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 if additional information, such as changes to deferred taxes and post-close working capital adjustments , becomes 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. 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 acquisitions of OTTO and Topaz are considered deductible for tax purposes, and goodwill arising from the acquisition of Medfusion is not deductible for tax purposes. The total preliminary purchase price for the acquisitions of Topaz, Medfusion, and OTTO are summarized as follows: Topaz Medfusion OTTO Preliminary Preliminary Preliminary Purchase Price Purchase Price Purchase Price Initial preliminary purchase price $ 8,000 $ 43,000 $ 22,000 Settlement of pre-existing net liabilities 1,671 24 19 Fair value of contingent consideration 1,850 — — Preliminary working capital adjustment (344 ) (247 ) (59 ) Total preliminary purchase price $ 11,177 $ 42,777 $ 21,960 Preliminary fair value of the net tangible assets acquired and liabilities assumed: Acquired cash and cash equivalents $ 353 $ 204 $ 102 Accounts receivable 1,528 986 51 Prepaid expense and other assets 139 387 79 Equipment and improvements 194 434 — Operating lease assets 534 — — Accounts payable (224 ) (1,360 ) (2 ) Accrued compensation and related benefits (155 ) (270 ) (123 ) Contract liabilities (370 ) (529 ) (11 ) Deferred income tax liability — (953 ) — Operating lease liabilities (240 ) — — Operating lease liabilities, net of current (360 ) — — Other liabilities (102 ) (496 ) (26 ) Total preliminary net tangible assets acquired and liabilities assumed 1,297 (1,597 ) 70 Preliminary fair value of identifiable intangible assets acquired: Goodwill 5,380 23,524 19,490 Software technology 4,500 13,800 2,400 Customer relationships — 6,800 — Trade names — 250 — Total preliminary identifiable intangible assets acquired 9,880 44,374 21,890 Total preliminary purchase price $ 11,177 $ 42,777 $ 21,960 Under the provisions of the Topaz acquisition, we may pay up to an additional $2,000 of cash contingent consideration in the form of an earnout, subject to Topaz achieving certain operational targets through April 2021. The initial fair value of contingent consideration of $1,850 reflects an estimated earnout payment of $2,000 on a present value basis and was estimated based on the weighted probability of achieving the operational targets utilizing assumptions and inputs from Topaz management. As of June 30, 2020, the fair value of the contingent consideration was $1,925, which reflects an adjustment of $75 related to accretion of the present value discount. Additionally, the preliminary purchase price of Topaz includes $1,671 for the settlement of pre-existing liabilities related to pre-acquisition amounts due for products and services previously purchased from us and recognized by Topaz as accounts payable. As a result of the acquisition, these accounts payable balances were effectively settled and accounted for as additional purchase consideration. The software technology intangible assets acquired from Topaz will be amortized over 6 years. In connection with the Medfusion acquisition, the acquired software technology intangible assets will be amortized over 6 years, acquired customer relationships intangible assets will be amortized over 10 years, and acquired trade names intangible assets will be amortized over 5 years. The weighted average amortization period for the acquired Medfusion intangible assets is 7.3 years. The software technology intangible assets acquired from OTTO will be amortized over 7 years. The revenues, earnings, and pro forma effects of the Topaz, Medfusion, and OTTO acquisitions are not, and would not have been, material to our results of operations, individually and in aggregate, and the disclosure of such information is impracticable as we have already integrated certain aspects of each acquisition within our overall operations and expect for each acquisition to be fully integrated within a short timeframe. |
Goodwill
Goodwill | 3 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 7. Goodwill 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. During the quarter ended June 30, 2020, we elected to bypass the optional qualitative step of the goodwill impairment assessment and proceed directly with the quantitative step, whereby we compared the fair value of our reporting unit with its carrying amount. A goodwill impairment charge, if any, would be recognized in the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. We determined the fair value of our reporting unit utilizing the average of two valuation methods, consisting of the income approach (based upon estimates of future discounted cash flows for each reporting unit) and a market comparable approach (based upon valuation multiples of companies that operate in similar industries with similar operating characteristics). The cash flows used to determine fair value under the income approach represent Management's best estimates of projected operating results and assumed terminal growth rates that are dependent on a number of significant assumptions based on historical experience, expectations of future performance, and the expected macro-economic environment, which are subject to change given the inherent uncertainty in predicting future results. We also considered our stock price and market capitalization as a corroborative step in assessing the reasonableness of the fair values estimated for the reporting unit as part of the goodwill impairment assessment. The results of the goodwill impairment assessment established that the fair value of our reporting unit exceeded its net carrying amount, indicating that no goodwill impairment existed as of the annual test date. We do not amortize goodwill as it has been determined to have an indefinite useful life. The carrying amount of goodwill as of June 30, 2020 and March 31, 2020 was $267,165. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: June 30, 2020 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 113,700 $ 153,150 Accumulated amortization (23,051 ) (29 ) (78,509 ) (101,589 ) Net intangible assets $ 16,149 $ 221 $ 35,191 $ 51,561 March 31, 2020 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 113,700 $ 153,150 Accumulated amortization (21,951 ) (17 ) (73,373 ) (95,341 ) Net intangible assets $ 17,249 $ 233 $ 40,327 $ 57,809 Amortization expense related to customer relationships and trade names recorded as operating expenses in the condensed consolidated statements of net income (loss) and comprehensive income (loss) was $1,112 and $865 for the three months ended June 30, 2020 and 2019, respectively. Amortization expense related to software technology recorded as cost of revenue was $5,136 and $4,288 for the three months ended June 30, 2020 and 2019, respectively. The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of June 30, 2020: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 2021 (remaining nine months) $ 3,336 $ 11,525 $ 14,861 2022 3,525 8,873 12,398 2023 2,820 5,154 7,974 2024 2,279 3,573 5,852 2025 1,846 3,573 5,419 2026 and beyond 2,564 2,493 5,057 Total $ 16,370 $ 35,191 $ 51,561 |
Capitalized Software Costs
Capitalized Software Costs | 3 Months Ended |
Jun. 30, 2020 | |
Research And Development [Abstract] | |
Capitalized Software Costs | 9. Capitalized Software Costs Our capitalized software costs are summarized as follows: June 30, 2020 March 31, 2020 Gross carrying amount $ 78,974 $ 75,212 Accumulated amortization (41,121 ) (38,208 ) Net capitalized software costs $ 37,853 $ 37,004 Amortization expense related to capitalized software costs was $4,763 and $4,125 for the three months ended June 30, 2020 and 2019, respectively, and is recorded as cost of revenue in the condensed consolidated statements of net income (loss) and comprehensive income (loss). The following table presents the remaining estimated amortization of capitalized software costs as of June 30, 2020. 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, 2021 (remaining nine months) $ 18,200 2022 12,700 2023 5,800 2024 1,153 Total $ 37,853 |
Line of Credit
Line of Credit | 3 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Line of Credit | 10. Line of Credit On March 29, 2018, we entered into a $300,000 amended and restated revolving credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, U.S. Bank National Association, as syndication agent, and certain other agents and lenders. The Credit Agreement replaces our prior . also includes a $100,000 accordion feature that provides us with the ability to obtain up to $400,000 in the aggregate of revolving credit commitments and/or term loans upon satisfaction of certain conditions. The Credit Agreement matures on March 29, 2023 and the full balance of the revolving loans and all other obligations under the 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. The revolving loans under the Credit Agreement will be available for letters of credit, permitted acquisitions, working capital and general corporate purposes. As of June 30, 2020, we had $179,000 outstanding loans and $121,000 of unused credit under the Credit Agreement. As of March 31, 2020, we had $129,000 in outstanding loans under the Credit Agreement. Interest expense related to the Credit Agreement was $928 and $294 for the three months ended June 30, 2020 and 2019, respectively. Amortization of deferred debt issuance costs was $177 and $177 for the three months ended June 30, 2020 and 2019, respectively. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 3 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | 11. Composition of Certain Financial Statement Captions Cash, cash equivalents, and restricted cash are summarized as follows: June 30, 2020 March 31, 2020 Cash and cash equivalents $ 192,323 $ 138,012 Restricted cash and cash equivalents 8,032 2,307 Cash, cash equivalents, and restricted cash $ 200,355 $ 140,319 Prepaid expenses and other current assets are summarized as follows: June 30, 2020 March 31, 2020 Prepaid expenses $ 16,285 $ 18,025 Capitalized commissions costs 7,435 7,053 Other current assets 2,179 1,227 Prepaid expenses and other current assets $ 25,899 $ 26,305 Equipment and improvements are summarized as follows: June 30, 2020 March 31, 2020 Computer equipment $ 33,769 $ 34,756 Internal-use software 17,882 17,796 Furniture and fixtures 12,735 12,477 Leasehold improvements 14,964 13,681 Equipment and improvements, gross 79,350 78,710 Accumulated depreciation and amortization (60,825 ) (58,874 ) Equipment and improvements, net $ 18,525 $ 19,836 Other assets are summarized as follows: June 30, 2020 March 31, 2020 Capitalized commission costs $ 17,670 $ 17,537 Deposits 6,105 6,074 Debt issuance costs 1,946 2,124 Other noncurrent assets 8,795 7,921 Other assets $ 34,516 $ 33,656 Accrued compensation and related benefits are summarized as follows: June 30, 2020 March 31, 2020 Accrued vacation $ 11,241 $ 10,469 Accrued bonus 8,178 10,396 Accrued commissions 1,469 2,087 Accrued payroll 1,566 840 Accrued compensation and related benefits $ 22,454 $ 23,792 Other current liabilities are summarized as follows: June 30, 2020 March 31, 2020 Care services liabilities $ 8,032 $ 2,307 Sales returns reserves and other customer liabilities 7,633 6,395 Accrued hosting costs 5,834 4,652 Customer credit balances and deposits 4,243 4,260 Accrued employee benefits and withholdings 3,058 3,002 Accrued self insurance expense 2,324 2,054 Accrued outsourcing costs 2,233 2,378 Accrued consulting and outside services 2,141 2,520 Accrued EDI expense 1,981 3,511 Accrued legal expense 1,300 2,119 Sales tax payable 560 1,222 Accrued royalties 527 3,113 Other accrued expenses 3,750 3,819 Other current liabilities $ 43,616 $ 41,352 Deferred payroll taxes $ 3,263 — Contingent consideration related to acquisitions 1,925 $ 1,900 Uncertain tax positions 1,203 1,203 Other liabilities 179 178 Other noncurrent liabilities $ 6,570 $ 3,281 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The provision for income taxes in the three months ended June 30, 2020 was $1,616, or an effective tax rate of 204.0%. The benefit of income taxes in the three months ended June 30, 2019 was $380, or an effective tax rate benefit of 44.0%. The increase in the effective tax rate for the three months ended June 30, 2020 compared to the prior year was primarily due to the decrease in pre-tax book income and increase in tax benefit for research and development credits offset with additional tax expense related to higher nondeductible officer’s compensation and an increase in stock option discrete items. The deferred tax assets and liabilities are presented net in the accompanying condensed consolidated balance sheets as noncurrent. We expect to receive the full benefit of the deferred tax assets recorded, with the exception of certain state credits and state net operating loss carryforwards, for which we have recorded a valuation allowance. Uncertain tax positions We had unrecognized tax benefits of $4,748 and $4,192 related to various federal, state and local income tax matters as of June 30, 2020 and March 31, 2020, respectively. The unrecognized benefits consisted of liabilities of $1,103 and $1,203 and reserves against deferred tax assets of $3,645 and $2,989 as of June 30, 2020 and March 31, 2020, respectively. If recognized, this amount would reduce our effective tax rate. We are no longer subject to United States federal income tax examinations for tax years before fiscal year ended 2016. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2015. 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. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), signed into law on March 27, 2020, has resulted in significant changes to the U.S. federal corporate tax law. Additionally, several state and foreign jurisdictions have enacted additional legislation and or comply with federal changes. We have considered the applicable tax law changes in our current and deferred income tax expense and recognized the impact in our income tax provision, as applicable. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings per Share The dual presentation of “basic” and “diluted” earnings per share is provided below. Share amounts below are in thousands. Three Months Ended June 30, 2020 2019 Earnings per share — Basic: Net income (loss) $ (824 ) $ 1,244 Weighted-average shares outstanding — Basic 66,296 65,015 Net income (loss) per common share — Basic $ (0.01 ) $ 0.02 Earnings per share — Diluted: Net income (loss) $ (824 ) $ 1,244 Weighted-average shares outstanding 66,296 65,015 Effect of potentially dilutive securities — 338 Weighted-average shares outstanding — Diluted 66,296 65,353 Net income (loss) per common share — Diluted $ (0.01 ) $ 0.02 The computation of diluted net income (loss) per share does not include 2,979 and 639 options to acquire shares of common stock for the three months ended June 30, 2020 and 2019, respectively, because their inclusion would have an anti-dilutive effect on net income (loss) per share. |
Share-Based Awards
Share-Based Awards | 3 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Awards | 14. Share-Based Awards Employee Stock Option and 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 June 30, 2020, there were 178,270 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 our 2015 Equity Incentive Plan, (the “Amended 2015 Plan”), to, among other items, increase the number of shares of common stock reserved for issuance thereunder by 6,000,000, 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. 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 June 30, 2020, there were 2,761,830 outstanding options, 2,431,306 outstanding shares of restricted stock awards, 23,186 outstanding shares of performance stock awards, and 5,165,192 shares available for future grant under the Amended 2015 Plan. The following table summarizes the stock option transactions during the three months ended June 30, 2020: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Employee Stock Options Summary Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2020 3,001,350 $ 14.83 4.7 $ — Forfeited/Canceled (15,250 ) 16.56 2.9 Expired (46,000 ) 29.17 Outstanding, June 30, 2020 2,940,100 $ 14.60 4.5 $ — Vested and expected to vest, June 30, 2020 2,807,384 $ 14.59 4.5 $ — Exercisable, June 30, 2020 2,111,911 $ 14.50 4.2 $ — Share-based compensation expense related to stock options was $732 and $974 for the three months ended June 30, 2020 and Non-vested stock option award activity during the three months ended June 30, 2020 is summarized as follows: Weighted- Average Grant-Date Non-Vested Stock Option Award Summary Number of Fair Value Shares per Share Outstanding, March 31, 2020 1,091,672 $ 5.67 Vested (249,183 ) 5.53 Forfeited/Canceled (14,300 ) 10.37 Outstanding, June 30, 2020 828,189 $ 5.71 As of June 30, 2020 June 30, 2020 and Restricted stock awards activity during the three months ended June 30, 2020 Weighted- Average Grant-Date Restricted Stock Number of Fair Value Shares per Share Outstanding, March 31, 2020 2,312,780 $ 16.74 Granted 720,186 10.29 Vested (524,268 ) 17.18 Canceled (77,392 ) 17.24 Outstanding, March 31, 2020 2,431,306 $ 14.72 Share-based compensation expense related to restricted stock awards was $4,039 and $3,296 for the three months ended June 30, 2020 and 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 June 30, 2020 On December 29, 2016, the Compensation Committee of the Board granted 123,082 performance stock awards to certain executive officers, of which 23,186 shares are currently outstanding. The performance stock awards vest 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 Company stock price performance. Share-based compensation expense related to the performance stock awards was $61 for the three months ended June 30, 2020 and 2019. 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, which vest only in the event certain performance goals are achieved and with continuous service through the date the goals are certified. Approximately 34% of the performance stock units are tied to our cumulative 3-year total shareholder return, 33% are tied to our fiscal year 2021 revenue, and 33% are 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 may vary between 50% and 200% 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 related to the cumulative 3-year total shareholder return was $17.84 per share, which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return. The fair value of the awards related to the revenue and adjusted earnings per share goals was estimated using a probability-adjusted target achievement rate combined with the market price of the common stock on the date of grant for the awards. Share-based compensation expense related to the performance stock unit awards tied to the revenue and adjusted earnings per share goals was not significant. Share-based compensation expense related to the performance stock unit awards tied to total shareholder return was $114 for the three months ended June 30, 2020 and 2019. On December 26, 2019 and January 27, 2020, the Compensation Committee of the Board approved 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 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 in total fair market value of shares during any one calendar year. As of June 30, 2020 Share-based compensation expense recorded for the employee share purchase plan was $164 and $122 for the three months ended June 30, 2020 and |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Jun. 30, 2020 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | 15. Concentration of Credit Risk We had cash deposits at United States banks and financial institutions which exceeded federally insured limits at June 30, 2020 |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 3 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 16. Commitments, Guarantees 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. 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. We filed a demurrer to the complaint, which the Court granted on April 10, 2014. An amended complaint was filed on April 25, 2014. 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. We filed a demurrer to the amended complaint. On July 29, 2014, the Court sustained the demurrer with respect to the breach of fiduciary duty claim, and overruled the demurrer with respect to the fraud and deceit claims. On August 28, 2014, we filed an answer and also filed a cross-complaint against Hussein, alleging that he breached fiduciary duties owed to the Company, Mr. Razin and Mr. Plochocki. Mr. Razin and Mr. Plochocki dismissed their claims against Hussein, leaving the Company as the sole plaintiff in the cross-complaint. On June 26, 2015, we filed a motion for summary judgment with respect to Hussein’s claims, which the Court granted on September 16, 2015, dismissing all of Hussein’s claims against us. On September 23, 2015, Hussein filed an application for reconsideration of the Court's summary judgment order, which the Court denied. Hussein filed a renewed application for reconsideration of the Court’s summary judgment order on August 3, 2017. The Court again denied Hussein’s application. On October 28, 2015, May 9, 2016, and August 5, 2016, Hussein filed a motion for summary judgment, motion for summary adjudication, and motion for judgment on the pleadings, respectively, seeking to dismiss our cross-complaint. The Court denied each motion. Trial on our cross-complaint began June 12, 2017. On July 26, 2017, the Court issued a statement of decision granting Hussein’s motion for judgment on our cross-complaint. Final judgment over Hussein’s claims and our cross-claims was entered on January 9, 2018. Hussein has noticed his appeal of the order granting summary judgment over his claims, and we noticed a cross-appeal on the court’s statement of 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 against Hussein’s affirmative claims and affirmed the trial court’s judgement after a bench trial against the Company on its breach of fiduciary duty claims against Hussein. We petitioned the California Court of Appeal to rehear the matter with respect to Hussein’s affirmative claims. The Court modified its opinion but denied the Company’s rehearing petition on November 7, 2019. We filed a petition for review with the Supreme Court of California on November 18, 2019, which was denied on January 15, 2020. As a result, the case has returned to the trial court for resolution. Trial is now scheduled to begin on November 6 2020. Separately, Hussein has issued an arbitration demand seeking indemnification for the fees he incurred defending against our cross-complaint. Other Regulatory Matters Commencing in April 2017, we have received requests for documents and information from the United States Attorney's Office for the District of Vermont 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) EHR software code used in certifying our software and information, and (c) payments provided for the referral of EHR business. We continue to cooperate in this investigation. Requests and investigations of this nature may lead to future requests for information and ultimately the assertion of claims or the commencement of legal proceedings against us, as well as other material liabilities. In addition, our responses to these and any future requests require time and effort, which can result in additional cost to us. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this matter. Given the highly-regulated nature of our industry, we may, from time to time, be subject to subpoenas, requests for information, or investigations from various government agencies. It is our practice to respond to such matters in a cooperative, thorough and timely manner. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this matter. |
Restructuring Plan
Restructuring Plan | 3 Months Ended |
Jun. 30, 2020 | |
Restructuring Costs [Abstract] | |
Restructuring Plan | 17. Restructuring Plan In May 2020, we announced a decision to execute a reduction in our workforce of less than 3% as well as other temporary cost reductions in response to the COVID-19 pandemic. 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, in the three months ended June 30, 2020 within operating expenses in our condensed consolidated statements of net income (loss) and comprehensive income (loss). These amounts were accrued when it was probable that the benefits would be paid, and the amounts were reasonably estimable. The payroll-related costs have been substantially paid as of June 30, 2020. In the three months ended June 30, 2019, we recorded $1,707 of restructuring costs, consisting primarily 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, as part of a business restructuring plan implemented in June 2019. In connection with the June 2019 restructuring plan, we also vacated portions of certain leased locations and recorded impairments of $489 in the three months ended June 30, 2019 to our operating right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in Horsham, St. Louis, and Irvine based on projected sublease rental income and estimated sublease commencement dates. The impairment analysis was performed at the asset group level and the impairment charge was 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events In July 2020, we paid down $50,000 against the Credit Agreement and our total outstanding borrowings was $129,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. The condensed consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements as of June 30, 2020 and for the three months ended June 30, 2020 have been prepared in accordance with the requirements of Quarterly Report on Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments which are necessary for a fair statement of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. References to amounts in the condensed consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. |
Use of Estimates | Use of Estimates. In late 2019, the emergence of a novel coronavirus, or COVID-19, was reported and in January 2020, the World Health Organization (“WHO”), declared it a Public Health Emergency of International Concern. In March 2020, the WHO escalated COVID-19 as a pandemic. The extent to which COVID-19 impacts our business and financial results will depend on numerous evolving factors including, but not limited to, the magnitude and duration of COVID-19; the impact on our employees; the extent to which it will impact worldwide macroeconomic conditions, including interest rates, employment rates, and health insurance coverage; the speed of the anticipated recovery; and governmental and business reactions to the pandemic. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 at June 30, 2020 and through the date of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, our allowances for doubtful accounts and the carrying value of goodwill and other long-lived assets. While there was not a material impact to our consolidated financial statements at and for the quarter ended June 30, 2020, our future assessment of the magnitude and duration of COVID-19, as well as other factors could result in material impacts to our consolidated financial statements in future reporting periods. |
Share-Based Compensation | Share-Based Compensation. The following table summarizes total share-based compensation expense included in the condensed consolidated statements of net income (loss) and comprehensive income (loss) for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Costs and expenses: Cost of revenue $ 424 $ 463 Research and development costs 917 1,028 Selling, general and administrative 4,052 3,400 Total share-based compensation 5,393 4,891 Income tax benefit (1,264 ) (1,215 ) Decrease in net income $ 4,129 $ 3,676 |
Recent Accounting Standards | Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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. 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 amended and restated revolving credit agreement e are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our condensed consolidated financial statements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Early adoption is permitted, including adoption in an interim period. ASU 2019-12 is effective for us in the first quarter of fiscal 2022. We are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our condensed consolidated financial statements. We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our condensed consolidated financial statements. |
Revenue Recognition and Performance Obligations | 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, EDI, 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. 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. |
Revenue Recognition | Recurring revenues consists of subscription services, support and maintenance, managed services, and EDI 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, patient pay 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 judgement 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, patient pay services, and other recurring services are satisfied as the corresponding services are provided and revenue is recognized as such services are rendered. Electronic data interchange and data services. Performance obligations related to EDI and other transaction processing services are satisfied at the point in time the services are rendered. The transfer of control occurs when the transaction processing services are delivered and the customer receives the benefits from the services provided. 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. |
Non-Recurring Fair Value Measurements | 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes total share-based compensation expense included in the condensed consolidated statements of net income (loss) and comprehensive income (loss) for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Costs and expenses: Cost of revenue $ 424 $ 463 Research and development costs 917 1,028 Selling, general and administrative 4,052 3,400 Total share-based compensation 5,393 4,891 Income tax benefit (1,264 ) (1,215 ) Decrease in net income $ 4,129 $ 3,676 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
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: Three Months Ended June 30, 2020 2019 Recurring revenues: Subscription services $ 35,360 $ 30,144 Support and maintenance 38,547 39,652 Managed services 22,493 25,681 Electronic data interchange and data services 23,122 23,970 Total recurring revenues 119,522 119,447 Software, hardware, and other non-recurring revenues: Software license and hardware 4,740 7,095 Other non-recurring services 6,617 5,319 Total software, hardware and other non-recurring revenues 11,357 12,414 Total revenues $ 130,879 $ 131,861 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
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 doubtful accounts are reported as a component of accounts receivable as summarized below: June 30, 2020 March 31, 2020 Accounts receivable, gross $ 80,771 $ 83,555 Allowance for doubtful accounts (3,920 ) (3,549 ) Accounts receivable, net $ 76,851 $ 80,006 |
Summary of Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts are summarized as follows: Balance as of March 31, 2020 $ (3,549 ) Additions charged to costs and expenses 869 Deductions (1,240 ) Balance as of June 30, 2020 $ (3,920 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and March 31, 2020: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs June 30, 2020 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 192,323 $ 192,323 $ — $ — Restricted cash and cash equivalents 8,032 8,032 — — $ 200,355 $ 200,355 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 1,925 $ — $ — $ 1,925 $ 1,925 $ — $ — $ 1,925 Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2020 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 138,012 $ 138,012 $ — $ — Restricted cash and cash equivalents 2,307 2,307 — — $ 140,319 $ 140,319 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 1,900 $ — $ — $ 1,900 $ 1,900 $ — $ — $ 1,900 (1) Cash equivalents consist primarily of money market funds. |
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 three months ended June 30, 2020: Total Liabilities Balance at March 31, 2020 $ 1,900 Fair value adjustments 25 Balance at June 30, 2020 $ 1,925 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary of Components of Operating Lease Costs | Components of operating lease costs are summarized as follows: Three Months Ended Three Months Ended June 30, 2020 June 30, 2019 Operating lease costs $ 2,098 $ 2,163 Short-term lease costs — 26 Variable lease costs 297 139 Less: Sublease income (125 ) (28 ) Total operating lease costs $ 2,270 $ 2,300 |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases is summarized as follows: Three Months Ended Three Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,133 $ 2,617 Operating lease assets obtained in exchange for operating lease liabilities — 5,324 |
Summary of Future Minimum Aggregate Lease Payments Operating Leases | Future minimum aggregate lease payments under operating leases as of June 30, 2020 are summarized as follows: For the year ended March 31, 2021 (remaining nine months) $ 9,457 2022 12,121 2023 11,504 2024 9,632 2025 7,286 Thereafter 1,784 Total future lease payments 51,784 Less interest (4,980 ) Total lease liabilities $ 46,804 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation | The total preliminary purchase price for the acquisitions of Topaz, Medfusion, and OTTO are summarized as follows: Topaz Medfusion OTTO Preliminary Preliminary Preliminary Purchase Price Purchase Price Purchase Price Initial preliminary purchase price $ 8,000 $ 43,000 $ 22,000 Settlement of pre-existing net liabilities 1,671 24 19 Fair value of contingent consideration 1,850 — — Preliminary working capital adjustment (344 ) (247 ) (59 ) Total preliminary purchase price $ 11,177 $ 42,777 $ 21,960 Preliminary fair value of the net tangible assets acquired and liabilities assumed: Acquired cash and cash equivalents $ 353 $ 204 $ 102 Accounts receivable 1,528 986 51 Prepaid expense and other assets 139 387 79 Equipment and improvements 194 434 — Operating lease assets 534 — — Accounts payable (224 ) (1,360 ) (2 ) Accrued compensation and related benefits (155 ) (270 ) (123 ) Contract liabilities (370 ) (529 ) (11 ) Deferred income tax liability — (953 ) — Operating lease liabilities (240 ) — — Operating lease liabilities, net of current (360 ) — — Other liabilities (102 ) (496 ) (26 ) Total preliminary net tangible assets acquired and liabilities assumed 1,297 (1,597 ) 70 Preliminary fair value of identifiable intangible assets acquired: Goodwill 5,380 23,524 19,490 Software technology 4,500 13,800 2,400 Customer relationships — 6,800 — Trade names — 250 — Total preliminary identifiable intangible assets acquired 9,880 44,374 21,890 Total preliminary purchase price $ 11,177 $ 42,777 $ 21,960 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 113,700 $ 153,150 Accumulated amortization (23,051 ) (29 ) (78,509 ) (101,589 ) Net intangible assets $ 16,149 $ 221 $ 35,191 $ 51,561 March 31, 2020 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 113,700 $ 153,150 Accumulated amortization (21,951 ) (17 ) (73,373 ) (95,341 ) Net intangible assets $ 17,249 $ 233 $ 40,327 $ 57,809 |
Estimated Amortization of Intangible Assets with Determinable Lives | The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of June 30, 2020: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 2021 (remaining nine months) $ 3,336 $ 11,525 $ 14,861 2022 3,525 8,873 12,398 2023 2,820 5,154 7,974 2024 2,279 3,573 5,852 2025 1,846 3,573 5,419 2026 and beyond 2,564 2,493 5,057 Total $ 16,370 $ 35,191 $ 51,561 |
Capitalized Software Costs (Tab
Capitalized Software Costs (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | Our capitalized software costs are summarized as follows: June 30, 2020 March 31, 2020 Gross carrying amount $ 78,974 $ 75,212 Accumulated amortization (41,121 ) (38,208 ) Net capitalized software costs $ 37,853 $ 37,004 |
Estimated Amortization of Capitalized Software Costs | The following table presents the remaining estimated amortization of capitalized software costs as of June 30, 2020. 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, 2021 (remaining nine months) $ 18,200 2022 12,700 2023 5,800 2024 1,153 Total $ 37,853 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 March 31, 2020 Cash and cash equivalents $ 192,323 $ 138,012 Restricted cash and cash equivalents 8,032 2,307 Cash, cash equivalents, and restricted cash $ 200,355 $ 140,319 |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets are summarized as follows: June 30, 2020 March 31, 2020 Prepaid expenses $ 16,285 $ 18,025 Capitalized commissions costs 7,435 7,053 Other current assets 2,179 1,227 Prepaid expenses and other current assets $ 25,899 $ 26,305 |
Summary of Equipment and Improvements | Equipment and improvements are summarized as follows: June 30, 2020 March 31, 2020 Computer equipment $ 33,769 $ 34,756 Internal-use software 17,882 17,796 Furniture and fixtures 12,735 12,477 Leasehold improvements 14,964 13,681 Equipment and improvements, gross 79,350 78,710 Accumulated depreciation and amortization (60,825 ) (58,874 ) Equipment and improvements, net $ 18,525 $ 19,836 |
Summary of Other Assets | Other assets are summarized as follows: June 30, 2020 March 31, 2020 Capitalized commission costs $ 17,670 $ 17,537 Deposits 6,105 6,074 Debt issuance costs 1,946 2,124 Other noncurrent assets 8,795 7,921 Other assets $ 34,516 $ 33,656 |
Summary of Accrued Compensation and Related Benefits | Accrued compensation and related benefits are summarized as follows: June 30, 2020 March 31, 2020 Accrued vacation $ 11,241 $ 10,469 Accrued bonus 8,178 10,396 Accrued commissions 1,469 2,087 Accrued payroll 1,566 840 Accrued compensation and related benefits $ 22,454 $ 23,792 |
Summary of Other Current Liabilities | Other current liabilities are summarized as follows: June 30, 2020 March 31, 2020 Care services liabilities $ 8,032 $ 2,307 Sales returns reserves and other customer liabilities 7,633 6,395 Accrued hosting costs 5,834 4,652 Customer credit balances and deposits 4,243 4,260 Accrued employee benefits and withholdings 3,058 3,002 Accrued self insurance expense 2,324 2,054 Accrued outsourcing costs 2,233 2,378 Accrued consulting and outside services 2,141 2,520 Accrued EDI expense 1,981 3,511 Accrued legal expense 1,300 2,119 Sales tax payable 560 1,222 Accrued royalties 527 3,113 Other accrued expenses 3,750 3,819 Other current liabilities $ 43,616 $ 41,352 Deferred payroll taxes $ 3,263 — Contingent consideration related to acquisitions 1,925 $ 1,900 Uncertain tax positions 1,203 1,203 Other liabilities 179 178 Other noncurrent liabilities $ 6,570 $ 3,281 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share | The dual presentation of “basic” and “diluted” earnings per share is provided below. Share amounts below are in thousands. Three Months Ended June 30, 2020 2019 Earnings per share — Basic: Net income (loss) $ (824 ) $ 1,244 Weighted-average shares outstanding — Basic 66,296 65,015 Net income (loss) per common share — Basic $ (0.01 ) $ 0.02 Earnings per share — Diluted: Net income (loss) $ (824 ) $ 1,244 Weighted-average shares outstanding 66,296 65,015 Effect of potentially dilutive securities — 338 Weighted-average shares outstanding — Diluted 66,296 65,353 Net income (loss) per common share — Diluted $ (0.01 ) $ 0.02 |
Share Based Awards (Tables)
Share Based Awards (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the stock option transactions during the three months ended June 30, 2020: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Employee Stock Options Summary Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2020 3,001,350 $ 14.83 4.7 $ — Forfeited/Canceled (15,250 ) 16.56 2.9 Expired (46,000 ) 29.17 Outstanding, June 30, 2020 2,940,100 $ 14.60 4.5 $ — Vested and expected to vest, June 30, 2020 2,807,384 $ 14.59 4.5 $ — Exercisable, June 30, 2020 2,111,911 $ 14.50 4.2 $ — |
Schedule of Employee Stock Options and Performance Based Awards by Non-vested Stock Options | Non-vested stock option award activity during the three months ended June 30, 2020 is summarized as follows: Weighted- Average Grant-Date Non-Vested Stock Option Award Summary Number of Fair Value Shares per Share Outstanding, March 31, 2020 1,091,672 $ 5.67 Vested (249,183 ) 5.53 Forfeited/Canceled (14,300 ) 10.37 Outstanding, June 30, 2020 828,189 $ 5.71 |
Summary of Restricted Stock Awards Activity | Restricted stock awards activity during the three months ended June 30, 2020 Weighted- Average Grant-Date Restricted Stock Number of Fair Value Shares per Share Outstanding, March 31, 2020 2,312,780 $ 16.74 Granted 720,186 10.29 Vested (524,268 ) 17.18 Canceled (77,392 ) 17.24 Outstanding, March 31, 2020 2,431,306 $ 14.72 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Costs and expenses: | ||
Total share-based compensation | $ 5,393 | $ 4,891 |
Income tax benefit | (1,264) | (1,215) |
Decrease in net income | 4,129 | 3,676 |
Cost of Revenue | ||
Costs and expenses: | ||
Total share-based compensation | 424 | 463 |
Research and Development Costs | ||
Costs and expenses: | ||
Total share-based compensation | 917 | 1,028 |
Selling, General and Administrative | ||
Costs and expenses: | ||
Total share-based compensation | $ 4,052 | $ 3,400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | Jun. 30, 2020 |
ASU 2018-15 | |
Accounting Policies [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
ASU 2018-13 | |
Accounting Policies [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
ASU 2017-04 | |
Accounting Policies [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
ASU 2016-13 | |
Accounting Policies [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2020 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
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 | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 130,879 | $ 131,861 |
Subscription Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 35,360 | 30,144 |
Support And Maintenance | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 38,547 | 39,652 |
Managed Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 22,493 | 25,681 |
Electronic Data Interchange And Data Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 23,122 | 23,970 |
Recurring Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 119,522 | 119,447 |
Software License and Hardware | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 4,740 | 7,095 |
Other Non-recurring Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 6,617 | 5,319 |
Software, Hardware, and Other Non-recurring | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 11,357 | $ 12,414 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue From Contract With Customer [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 505,700 | $ 492,100 |
Percentage of revenue expected to recognize as services rendered and goods delivered | 8.00% | 10.00% |
Percentage of revenue expected to recognize over next 12 months | 54.00% | 50.00% |
Contract liability, revenue recognized | $ 20,826 | $ 19,960 |
Capitalized commission costs | 25,105 | |
Commission expenses | 2,240 | $ 1,662 |
Prepaid Expenses And Other Current Assets | ||
Revenue From Contract With Customer [Line Items] | ||
Capitalized commission costs | 7,435 | |
Other Noncurrent Assets | ||
Revenue From Contract With Customer [Line Items] | ||
Capitalized commission costs | $ 17,670 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 80,771 | $ 83,555 |
Allowance for doubtful accounts | (3,920) | (3,549) |
Accounts receivable, net | $ 76,851 | $ 80,006 |
Accounts Receivable - Summary_2
Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Receivables [Abstract] | ||
Balance as of March 31, 2020 | $ (3,549) | |
Additions charged to costs and expenses | 869 | $ 606 |
Deductions | (1,240) | |
Balance as of June 30, 2020 | $ (3,920) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | |
Carrying Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | $ 192,323 | $ 138,012 |
Restricted cash and cash equivalents | 8,032 | 2,307 | |
Total | 200,355 | 140,319 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 1,925 | 1,900 | |
Total | 1,925 | 1,900 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 192,323 | 138,012 |
Restricted cash and cash equivalents | 8,032 | 2,307 | |
Total | 200,355 | 140,319 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 0 | 0 | |
Total | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 | |
Total | 0 | 0 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 0 | 0 | |
Total | 0 | 0 | |
Unobservable Inputs (Level 3) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 | |
Total | 0 | 0 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 1,925 | 1,900 | |
Total | $ 1,925 | $ 1,900 | |
[1] | Cash equivalents consist primarily of money market funds. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) (Details ) $ in Thousands | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Company's assets measured at fair value using significant unobservable inputs (Level 3) | |
Balance at March 31, 2020 | $ 1,900 |
Fair value adjustments | 25 |
Balance at June 30, 2020 | $ 1,925 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Topaz Information Systems, LLC | Other Noncurrent Liabilities | |
Business Acquisition [Line Items] | |
Fair value of contingent consideration adjustment to accretion of present value discount | $ 25 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Lessee Lease Description [Line Items] | ||
Total operating lease costs | $ 2,270 | $ 2,300 |
Operating lease, weighted average remaining lease term | 4 years 4 months 24 days | |
Operating lease, weighted average discount rate, percent | 4.20% | |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Lease expiration year | 2020 | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Lease expiration year | 2026 |
Leases - Summary of Components
Leases - Summary of Components of Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 2,098 | $ 2,163 |
Short-term lease costs | 26 | |
Variable lease costs | 297 | 139 |
Less: Sublease income | (125) | (28) |
Total operating lease costs | $ 2,270 | $ 2,300 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3,133 | $ 2,617 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 5,324 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Aggregate Lease Payments Operating Leases (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2021 (remaining nine months) | $ 9,457 |
2022 | 12,121 |
2023 | 11,504 |
2024 | 9,632 |
2025 | 7,286 |
Thereafter | 1,784 |
Total future lease payments | 51,784 |
Less interest | (4,980) |
Total lease liabilities | $ 46,804 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Dec. 17, 2019 | Dec. 06, 2019 | Oct. 04, 2019 | Jun. 30, 2020 |
Topaz | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, effective date of acquisition | Oct. 4, 2019 | |||
Business acquisition, date of acquisition agreement | Oct. 4, 2019 | |||
Business combination, additional cash in form of earnout | $ 2,000 | |||
Contingent consideration related to acquisitions | 1,850 | $ 1,925 | ||
Fair value of contingent consideration adjustment to accretion of present value discount | $ 75 | |||
Settlement of pre-existing liabilities related to pre-acquisition amounts | $ 1,671 | |||
Topaz | Computer Software, Intangible Asset | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 6 years | |||
Medfusion | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, effective date of acquisition | Dec. 6, 2019 | |||
Business acquisition, date of acquisition agreement | Nov. 12, 2019 | |||
Settlement of pre-existing liabilities related to pre-acquisition amounts | $ 24 | |||
Acquired finite-lived intangible assets, weighted average useful life | 7 years 3 months 18 days | |||
Medfusion | Computer Software, Intangible Asset | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 6 years | |||
Medfusion | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Medfusion | Trade Names | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
OTTO | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, effective date of acquisition | Dec. 17, 2019 | |||
Business acquisition, date of acquisition agreement | Dec. 11, 2019 | |||
Settlement of pre-existing liabilities related to pre-acquisition amounts | $ 19 | |||
OTTO | Computer Software, Intangible Asset | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible asset, useful life | 7 years |
Business Combinations - Summary
Business Combinations - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 17, 2019 | Dec. 06, 2019 | Oct. 04, 2019 | Jun. 30, 2020 | Mar. 31, 2020 |
Preliminary fair value of identifiable intangible assets acquired: | |||||
Goodwill | $ 267,165 | $ 267,165 | |||
Topaz | |||||
Business Acquisition [Line Items] | |||||
Initial preliminary purchase price | $ 8,000 | ||||
Settlement of pre-existing net liabilities | 1,671 | ||||
Fair value of contingent consideration | 1,850 | ||||
Preliminary working capital adjustment | (344) | ||||
Total preliminary purchase price | 11,177 | ||||
Preliminary fair value of the net tangible assets acquired and liabilities assumed: | |||||
Acquired cash and cash equivalents | 353 | ||||
Accounts receivable | 1,528 | ||||
Prepaid expense and other assets | 139 | ||||
Equipment and improvements | 194 | ||||
Operating lease assets | 534 | ||||
Accounts payable | (224) | ||||
Accrued compensation and related benefits | (155) | ||||
Contract liabilities | (370) | ||||
Operating lease liabilities | (240) | ||||
Operating lease liabilities, net of current | (360) | ||||
Other liabilities | (102) | ||||
Total preliminary net tangible assets acquired and liabilities assumed | 1,297 | ||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Goodwill | 5,380 | ||||
Total preliminary identifiable intangible assets acquired | 9,880 | ||||
Total preliminary purchase price | 11,177 | ||||
Medfusion | |||||
Business Acquisition [Line Items] | |||||
Initial preliminary purchase price | $ 43,000 | ||||
Settlement of pre-existing net liabilities | 24 | ||||
Preliminary working capital adjustment | (247) | ||||
Total preliminary purchase price | 42,777 | ||||
Preliminary fair value of the net tangible assets acquired and liabilities assumed: | |||||
Acquired cash and cash equivalents | 204 | ||||
Accounts receivable | 986 | ||||
Prepaid expense and other assets | 387 | ||||
Equipment and improvements | 434 | ||||
Accounts payable | (1,360) | ||||
Accrued compensation and related benefits | (270) | ||||
Contract liabilities | (529) | ||||
Deferred income tax liability | (953) | ||||
Other liabilities | (496) | ||||
Total preliminary net tangible assets acquired and liabilities assumed | (1,597) | ||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Goodwill | 23,524 | ||||
Total preliminary identifiable intangible assets acquired | 44,374 | ||||
Total preliminary purchase price | 42,777 | ||||
OTTO | |||||
Business Acquisition [Line Items] | |||||
Initial preliminary purchase price | $ 22,000 | ||||
Settlement of pre-existing net liabilities | 19 | ||||
Preliminary working capital adjustment | (59) | ||||
Total preliminary purchase price | 21,960 | ||||
Preliminary fair value of the net tangible assets acquired and liabilities assumed: | |||||
Acquired cash and cash equivalents | 102 | ||||
Accounts receivable | 51 | ||||
Prepaid expense and other assets | 79 | ||||
Accounts payable | (2) | ||||
Accrued compensation and related benefits | (123) | ||||
Contract liabilities | (11) | ||||
Other liabilities | (26) | ||||
Total preliminary net tangible assets acquired and liabilities assumed | 70 | ||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Goodwill | 19,490 | ||||
Total preliminary identifiable intangible assets acquired | 21,890 | ||||
Total preliminary purchase price | 21,960 | ||||
Computer Software, Intangible Asset | Topaz | |||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Total preliminary identifiable intangible assets acquired | $ 4,500 | ||||
Computer Software, Intangible Asset | Medfusion | |||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Total preliminary identifiable intangible assets acquired | 13,800 | ||||
Computer Software, Intangible Asset | OTTO | |||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Total preliminary identifiable intangible assets acquired | $ 2,400 | ||||
Customer Relationships | Medfusion | |||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Total preliminary identifiable intangible assets acquired | 6,800 | ||||
Trade Names | Medfusion | |||||
Preliminary fair value of identifiable intangible assets acquired: | |||||
Total preliminary identifiable intangible assets acquired | $ 250 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 3 Months Ended | |
Jun. 30, 2020USD ($)segment | Mar. 31, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Number of operating segment | segment | 1 | |
Impairment of goodwill | $ 0 | |
Goodwill | $ 267,165,000 | $ 267,165,000 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets, Other than Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 153,150 | $ 153,150 |
Accumulated amortization | (101,589) | (95,341) |
Net intangible assets | 51,561 | 57,809 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 39,200 | 39,200 |
Accumulated amortization | (23,051) | (21,951) |
Net intangible assets | 16,149 | 17,249 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 250 | 250 |
Accumulated amortization | (29) | (17) |
Net intangible assets | 221 | 233 |
Computer Software, Intangible Asset | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 113,700 | 113,700 |
Accumulated amortization | (78,509) | (73,373) |
Net intangible assets | $ 35,191 | $ 40,327 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization of other intangibles | $ 6,248 | $ 5,153 |
Customer Relationships and Trade Names | Operating Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of other intangibles | 1,112 | 865 |
Computer Software, Intangible Asset | Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of other intangibles | $ 5,136 | $ 4,288 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization of Intangible Assets with Determinable Lives (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
2021 (remaining nine months) | $ 14,861 | |
2022 | 12,398 | |
2023 | 7,974 | |
2024 | 5,852 | |
2025 | 5,419 | |
2026 and beyond | 5,057 | |
Net intangible assets | 51,561 | $ 57,809 |
Operating Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
2021 (remaining nine months) | 3,336 | |
2022 | 3,525 | |
2023 | 2,820 | |
2024 | 2,279 | |
2025 | 1,846 | |
2026 and beyond | 2,564 | |
Net intangible assets | 16,370 | |
Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
2021 (remaining nine months) | 11,525 | |
2022 | 8,873 | |
2023 | 5,154 | |
2024 | 3,573 | |
2025 | 3,573 | |
2026 and beyond | 2,493 | |
Net intangible assets | $ 35,191 |
Capitalized Software Costs - Ca
Capitalized Software Costs - Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Research And Development [Abstract] | ||
Gross carrying amount | $ 78,974 | $ 75,212 |
Accumulated amortization | (41,121) | (38,208) |
Net capitalized software costs | $ 37,853 | $ 37,004 |
Capitalized Software Costs - Ad
Capitalized Software Costs - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Research And Development [Abstract] | ||
Amortization of capitalized software costs | $ 4,763 | $ 4,125 |
Capitalized Software Costs - Es
Capitalized Software Costs - Estimated Amortization of Capitalized Software Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
2021 (remaining nine months) | $ 14,861 | |
2022 | 12,398 | |
2023 | 7,974 | |
2024 | 5,852 | |
Net intangible assets | 51,561 | $ 57,809 |
Capitalized Software Costs | ||
Finite Lived Intangible Assets [Line Items] | ||
2021 (remaining nine months) | 18,200 | |
2022 | 12,700 | |
2023 | 5,800 | |
2024 | 1,153 | |
Net intangible assets | $ 37,853 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) - USD ($) | Mar. 29, 2018 | Jan. 04, 2016 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 |
Line Of Credit Facility [Line Items] | |||||
Line of credit | $ 179,000,000 | $ 129,000,000 | |||
Remaining borrowing capacity | 121,000,000 | ||||
Interest expense | 928,000 | $ 294,000 | |||
Amortization of debt issuance costs | 177,000 | $ 177,000 | |||
Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 300,000,000 | $ 250,000,000 | $ 400,000,000 | ||
Credit agreement maturity date | Mar. 29, 2018 | Jan. 4, 2016 | Mar. 29, 2023 | ||
Additional borrowing capacity | $ 100,000,000 | ||||
Letter of Credit | |||||
Line Of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 10,000,000 | ||||
Swing-Line Loans | |||||
Line Of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 10,000,000 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Summary of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 192,323 | $ 138,012 | ||
Restricted cash and cash equivalents | 8,032 | 2,307 | ||
Cash, cash equivalents, and restricted cash | $ 200,355 | $ 140,319 | $ 36,790 | $ 34,522 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 16,285 | $ 18,025 |
Capitalized commissions costs | 7,435 | 7,053 |
Other current assets | 2,179 | 1,227 |
Prepaid expenses and other current assets | $ 25,899 | $ 26,305 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions - Summary of Equipment and Improvements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 79,350 | $ 78,710 |
Accumulated depreciation and amortization | (60,825) | (58,874) |
Equipment and improvements, net | 18,525 | 19,836 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 33,769 | 34,756 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 17,882 | 17,796 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 12,735 | 12,477 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 14,964 | $ 13,681 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions - Summary of Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Capitalized commission costs | $ 17,670 | $ 17,537 |
Deposits | 6,105 | 6,074 |
Debt issuance costs | 1,946 | 2,124 |
Other noncurrent assets | 8,795 | 7,921 |
Other assets | $ 34,516 | $ 33,656 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions - Summary of Accrued Compensation and Related Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Employee Related Liabilities Current [Abstract] | ||
Accrued vacation | $ 11,241 | $ 10,469 |
Accrued bonus | 8,178 | 10,396 |
Accrued commissions | 1,469 | 2,087 |
Accrued payroll | 1,566 | 840 |
Accrued compensation and related benefits | $ 22,454 | $ 23,792 |
Composition of Certain Financ_8
Composition of Certain Financial Statement Captions - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Other Liabilities [Abstract] | ||
Care services liabilities | $ 8,032 | $ 2,307 |
Sales returns reserves and other customer liabilities | 7,633 | 6,395 |
Accrued hosting costs | 5,834 | 4,652 |
Customer credit balances and deposits | 4,243 | 4,260 |
Accrued employee benefits and withholdings | 3,058 | 3,002 |
Accrued self insurance expense | 2,324 | 2,054 |
Accrued outsourcing costs | 2,233 | 2,378 |
Accrued consulting and outside services | 2,141 | 2,520 |
Accrued EDI expense | 1,981 | 3,511 |
Accrued legal expense | 1,300 | 2,119 |
Sales tax payable | 560 | 1,222 |
Accrued royalties | 527 | 3,113 |
Other accrued expenses | 3,750 | 3,819 |
Other current liabilities | 43,616 | 41,352 |
Deferred payroll taxes | 3,263 | |
Contingent consideration related to acquisitions | 1,925 | 1,900 |
Uncertain tax positions | 1,203 | 1,203 |
Other liabilities | 179 | 178 |
Other noncurrent liabilities | $ 6,570 | $ 3,281 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision for (benefit of) income taxes | $ 1,616 | $ (380) | |
Effective tax rate (benefit) and expenses (as a percentage) | 204.00% | (44.00%) | |
Liability for unrecognized tax benefits | $ 4,748 | $ 4,192 | |
Unrecognized tax benefits consisted of liability | 1,103 | 1,203 | |
Unrecognized tax benefits reserves against deferred tax assets | $ 3,645 | $ 2,989 | |
Period within which the company does not anticipate total unrecognized tax benefits to change | within the next twelve months |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings per share — Basic: | ||
Net income (loss) | $ (824) | $ 1,244 |
Weighted-average shares outstanding — Basic | 66,296 | 65,015 |
Net income (loss) per common share — Basic | $ (0.01) | $ 0.02 |
Earnings per share — Diluted: | ||
Net income (loss) | $ (824) | $ 1,244 |
Weighted-average shares outstanding — Basic | 66,296 | 65,015 |
Effect of potentially dilutive securities | 338 | |
Weighted-average shares outstanding — Diluted | 66,296 | 65,353 |
Net income (loss) per common share — Diluted | $ (0.01) | $ 0.02 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Stock Options | ||
Options excluded from the computation of diluted net income (loss) per share | 2,979 | 639 |
Share Based Awards - Additional
Share Based Awards - Additional Information (Details) - USD ($) | Oct. 23, 2018 | Dec. 29, 2016 | Aug. 11, 2014 | Jan. 27, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | 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 | 2,940,100 | 3,001,350 | |||||||||
Total share-based compensation | $ 5,393,000 | $ 4,891,000 | |||||||||
Fair value of options vested | $ 1,378,000 | 1,494,000 | |||||||||
Percentage of performance stock units tied to 3-year total shareholder return | 34.00% | ||||||||||
Percentage of performance stock units tied to fiscal year 2021 revenue | 33.00% | ||||||||||
Percentage performance stock units tied to fiscal year 2021 adjusted earnings per share goals | 33.00% | ||||||||||
Percentage of performance stock units tied to fiscal year 2021 revenue goal | 80.00% | ||||||||||
Percentage of performance stock units tied to fiscal year 2022 revenue goal | 20.00% | ||||||||||
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 | 178,270 | ||||||||||
2015 Plan | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance | 3,575,000 | 6,000,000 | |||||||||
Common stock reserved | 11,500,000 | ||||||||||
Shares available for future grant | 5,165,192 | ||||||||||
Employee Share Purchase Plan | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance | 4,000,000 | 3,343,432 | |||||||||
Total share-based compensation | $ 164,000 | 122,000 | |||||||||
Maximum percentage of gross payroll deduction | 15.00% | ||||||||||
Purchase price as a percentage of fair market value | 90.00% | ||||||||||
Maximum shares purchase in a single transaction | 1,500 | ||||||||||
Maximum amount purchased in a calendar year | $ 25,000 | ||||||||||
Shares issued | 656,568 | ||||||||||
Employee Stock Options | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Outstanding stock options | 2,761,830 | ||||||||||
Total share-based compensation | $ 732,000 | 974,000 | |||||||||
Total unrecognized compensation costs | $ 3,372,000 | ||||||||||
Stock option recognized over weighted average period (in years) | 1 year 3 months 18 days | ||||||||||
Employee Stock Options | 2005 Employee Stock Option and Incentive Plan | |||||||||||
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 | ||||||||||
Employee Stock Options | 2015 Plan | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Expiration period (in years) | 10 years | ||||||||||
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 | 2,431,306 | ||||||||||
Performance Shares | 2015 Plan | |||||||||||
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 | 23,186 | ||||||||||
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 | 2,431,306 | 2,312,780 | |||||||||
Total share-based compensation | $ 4,039,000 | 3,296,000 | |||||||||
Stock option recognized over weighted average period (in years) | 2 years 1 month 6 days | ||||||||||
Total unrecognized compensation costs | $ 30,271,000 | ||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 720,186 | ||||||||||
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 Awards | Awards Granted On December 2016 | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Total share-based compensation | $ 61,000 | 61,000 | |||||||||
Vesting period | 4 years | ||||||||||
Number of shares granted | 123,082 | ||||||||||
Performance Stock Awards | 2015 Plan | Awards Granted On December 2016 | |||||||||||
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 | 23,186 | ||||||||||
Performance Stock Units | Units Granted On October 2018 | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Total share-based compensation | $ 114,000 | $ 114,000 | |||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 248,140 | ||||||||||
Percentage of shares issued, minimum | 50.00% | ||||||||||
Percentage of shares issued, maximum | 200.00% | ||||||||||
Weighted-average grant date fair value | $ 17.84 | ||||||||||
Performance Stock Units | Units Granted On December 2019 and January 2020 | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Total share-based compensation | $ 281,000 | ||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 279,587 | ||||||||||
Percentage of shares issued, minimum | 50.00% | ||||||||||
Percentage of shares issued, maximum | 150.00% | ||||||||||
Weighted-average grant date fair value | $ 16.02 | ||||||||||
Vesting period for the 3-year total shareholder return | 3 years |
Share Based Awards - Summary of
Share Based Awards - Summary of Stock Option Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Shares, Outstanding, Beginning | 3,001,350 | |
Number of Shares, Forfeited/Canceled | (15,250) | |
Number of Shares, Expired | (46,000) | |
Number of Shares, Outstanding, Ending | 2,940,100 | 3,001,350 |
Vested and expected to vest, June 30, 2020 | 2,807,384 | |
Exercisable, June 30, 2020 | 2,111,911 | |
Weighted- Average Exercise Price per Share | ||
Weighted-Average Exercise Price per Share, Outstanding, Beginning | $ 14.83 | |
Weighted-Average Exercise Price per Share, Forfeited/Cancelled | 16.56 | |
Weighted-Average Exercise Price per Share, Expired | 29.17 | |
Weighted-Average Exercise Price per Share, Outstanding, Ending | 14.60 | $ 14.83 |
Vested and expected to vest, June 30, 2020 (in dollars per share) | 14.59 | |
Exercisable, June 30, 2020 (in dollars per share) | $ 14.50 | |
Weighted- Average Remaining Contractual Life (years) | ||
Outstanding | 4 years 6 months | 4 years 8 months 12 days |
Forfeited/Canceled | 2 years 10 months 24 days | |
Vested and expected to vest, June 30, 2020 | 4 years 6 months | |
Exercisable, June 30, 2020 | 4 years 2 months 12 days |
Share Based Awards - Summary _2
Share Based Awards - Summary of Non-vested Stock Option (Details) | 3 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Non-Vested Number of Shares, Beginning Balance | shares | 1,091,672 |
Non-Vested Number of Shares Vested | shares | (249,183) |
Non-Vested Number of Shares Forfeited | shares | (14,300) |
Non-Vested Number of Shares, Ending Balance | shares | 828,189 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-Average Grant-Date Fair Value per Share, Nonvested, Beginning | $ / shares | $ 5.67 |
Weighted-Average Grant-Date Fair Value per Share, Vested | $ / shares | 5.53 |
Weighted-Average Grant-Date Fair Value per Share, Forfeited | $ / shares | 10.37 |
Weighted-Average Grant-Date Fair Value per Share, Nonvested, Ending | $ / shares | $ 5.71 |
Share Based Awards - Summary _3
Share Based Awards - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock | 3 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Outstanding Beginning Balance | shares | 2,312,780 |
Granted | shares | 720,186 |
Vested | shares | (524,268) |
Canceled | shares | (77,392) |
Number of Shares Outstanding Ending Balance | shares | 2,431,306 |
Weighted Average Grant-Date Fair Value per Share, Beginning of Period | $ / shares | $ 16.74 |
Weighted Average Grant-Date Fair Value per Share, Granted | $ / shares | 10.29 |
Weighted Average Grant-Date Fair Value per Share, Vested | $ / shares | 17.18 |
Weighted Average Grant-Date Fair Value per Share, Canceled | $ / shares | 17.24 |
Weighted Average Grant-Date Fair Value per Share, End of Period | $ / shares | $ 14.72 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies - Additional Information (Details) | 3 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Applicable program documentation period | 365 days |
Restructuring Plan - Additional
Restructuring Plan - Additional Information (Details) - USD ($) $ in Thousands | May 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | $ 2,562 | $ 1,707 | |
Lease Right of Use Assets and Property Plant and Equipment | |||
Restructuring Cost And Reserve [Line Items] | |||
Other asset impairment charges | $ 489 | ||
COVID-19 Pandemic | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring plan, percentage of number of positions eliminated | 3.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Amount paid against credit agreement | $ 5,000,000 | |||
Loans outstanding | $ 179,000,000 | $ 129,000,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Amount paid against credit agreement | $ 50,000 | |||
Loans outstanding | $ 129,000 |