Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2021 | Jul. 27, 2021 | |
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, 2021 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
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 | 3525 Piedmont Rd. | |
Entity Address, Address Line Two | NE | |
Entity Address, Address Line Three | Building 6, Suite 700 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30305 | |
City Area Code | (404) | |
Local Phone Number | 467-1500 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | CA | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 67,265,545 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 63,002 | $ 73,295 |
Restricted cash and cash equivalents | 7,048 | 5,280 |
Accounts receivable, net | 73,495 | 77,541 |
Contract assets | 20,446 | 19,481 |
Income taxes receivable | 765 | 765 |
Prepaid expenses and other current assets | 29,434 | 31,282 |
Total current assets | 194,190 | 207,644 |
Equipment and improvements, net | 13,476 | 14,539 |
Capitalized software costs, net | 41,146 | 41,474 |
Operating lease assets | 16,442 | 18,446 |
Deferred income taxes, net | 19,446 | 19,474 |
Contract assets, net of current | 1,930 | 1,976 |
Intangibles, net | 33,601 | 36,700 |
Goodwill | 267,212 | 267,212 |
Other assets | 37,121 | 37,021 |
Total assets | 624,564 | 644,486 |
Current liabilities: | ||
Accounts payable | 7,213 | 11,378 |
Contract liabilities | 52,281 | 52,863 |
Accrued compensation and related benefits | 28,410 | 50,374 |
Income taxes payable | 872 | 584 |
Operating lease liabilities | 12,002 | 12,735 |
Other current liabilities | 54,284 | 52,699 |
Total current liabilities | 155,062 | 180,633 |
Deferred compensation | 7,363 | 6,620 |
Operating lease liabilities, net of current | 16,423 | 18,453 |
Other noncurrent liabilities | 7,148 | 7,136 |
Total liabilities | 185,996 | 212,842 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: | ||
Common stock$0.01 par value; authorized 100,000 shares; issued and outstanding 67,362 and 67,069 shares at June 30, 2021 and March 31, 2021, respectively | 674 | 671 |
Additional paid-in capital | 308,374 | 304,263 |
Accumulated other comprehensive loss | (1,962) | (1,924) |
Retained earnings | 131,482 | 128,634 |
Total shareholders' equity | 438,568 | 431,644 |
Total liabilities and shareholders' equity | $ 624,564 | $ 644,486 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Mar. 31, 2021 |
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 | 67,362,000 | 67,069,000 |
Common stock, shares outstanding | 67,362,000 | 67,069,000 |
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, 2021 | Jun. 30, 2020 | |
Revenues: | ||
Total revenues | $ 146,084 | $ 130,879 |
Cost of revenue: | ||
Amortization of capitalized software costs and acquired intangible assets | 8,084 | 9,899 |
Total cost of revenue | 72,741 | 66,369 |
Gross profit | 73,343 | 64,510 |
Operating expenses: | ||
Selling, general and administrative | 48,486 | 40,737 |
Research and development costs, net | 19,321 | 18,222 |
Amortization of acquired intangible assets | 881 | 1,112 |
Impairment of assets | 382 | |
Restructuring costs | 539 | 2,562 |
Total operating expenses | 69,609 | 62,633 |
Income from operations | 3,734 | 1,877 |
Interest income | 12 | 6 |
Interest expense | (317) | (1,107) |
Other income (expense), net | (22) | 16 |
Income before provision for income taxes | 3,407 | 792 |
Provision for income taxes | 559 | 1,616 |
Net income (loss) | 2,848 | (824) |
Other comprehensive income: | ||
Foreign currency translation, net of tax | (38) | (13) |
Comprehensive income (loss) | $ 2,810 | $ (837) |
Net income (loss) per share: | ||
Basic | $ 0.04 | $ (0.01) |
Diluted | $ 0.04 | $ (0.01) |
Weighted-average shares outstanding: | ||
Basic | 67,175 | 66,296 |
Diluted | 67,799 | 66,296 |
Recurring | ||
Revenues: | ||
Total revenues | $ 132,381 | $ 119,522 |
Cost of revenue: | ||
Cost of revenue excluding amortization of capitalized software costs and acquired intangible assets | 57,160 | 50,429 |
Software, Hardware, and Other Non-recurring | ||
Revenues: | ||
Total revenues | 13,703 | 11,357 |
Cost of revenue: | ||
Cost of revenue excluding amortization of capitalized software costs and acquired intangible assets | $ 7,497 | $ 6,041 |
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, 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 | ||||
Balance at Mar. 31, 2021 | 431,644 | $ 671 | 304,263 | 128,634 | (1,924) |
Balance, Shares at Mar. 31, 2021 | 67,069 | ||||
Common stock issued under stock plans, net of shares withheld for taxes | (2,298) | $ 3 | (2,301) | ||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 293 | ||||
Stock-based compensation | 6,412 | 6,412 | |||
Other comprehensive income: | |||||
Translation adjustments | (38) | (38) | |||
Net income (loss) | 2,848 | 2,848 | |||
Balance at Jun. 30, 2021 | $ 438,568 | $ 674 | $ 308,374 | $ 131,482 | $ (1,962) |
Balance, Shares at Jun. 30, 2021 | 67,362 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,848 | $ (824) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of capitalized software costs | 5,866 | 4,763 |
Amortization of debt issuance costs | 127 | 177 |
Amortization of other intangibles | 3,099 | 6,248 |
Change in fair value of contingent consideration | 25 | |
Deferred income taxes | 28 | 16 |
Depreciation | 2,108 | 1,996 |
Excess tax deficiency (benefit) from share-based compensation | (176) | 867 |
Impairment of assets | 382 | |
Loss on disposal of equipment and improvements | 38 | |
Non-cash operating lease costs | 1,628 | 1,683 |
Provision for bad debts | 639 | 869 |
Share-based compensation | 6,412 | 5,393 |
Changes in assets and liabilities: | ||
Accounts receivable | 3,407 | 2,286 |
Contract assets | (919) | (1,082) |
Accounts payable | (4,334) | (1,391) |
Contract liabilities | (582) | (5,626) |
Accrued compensation and related benefits | (21,964) | (1,338) |
Income taxes | 464 | 635 |
Deferred compensation | 743 | 688 |
Operating lease liabilities | (2,676) | (2,596) |
Other assets and liabilities | 3,175 | 4,883 |
Net cash provided by operating activities | 313 | 17,672 |
Cash flows from investing activities: | ||
Additions to capitalized software costs | (5,538) | (5,612) |
Additions to equipment and improvements | (1,002) | (616) |
Net cash used in investing activities | (6,540) | (6,228) |
Cash flows from financing activities: | ||
Proceeds from line of credit | 50,000 | |
Proceeds from issuance of shares under employee plans | 671 | 426 |
Payments for taxes related to net share settlement of equity awards | (2,969) | (1,834) |
Net cash provided by (used in) financing activities | (2,298) | 48,592 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (8,525) | 60,036 |
Cash, cash equivalents, and restricted cash at beginning of period | 78,575 | 140,319 |
Cash, cash equivalents, and restricted cash at end of period | 70,050 | 200,355 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 294 | 206 |
Cash refunds from income taxes | 19 | 91 |
Cash paid for interest | 947 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 2,964 | 3,133 |
Accrued purchases of equipment and improvements | $ 169 | $ 69 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 and for the three months ended June 30, 2021 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, 2021. 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. Share-Based Compensation. The following table summarizes total share-based compensation expense included in the condensed consolidated statements of comprehensive income for the three months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 Costs and expenses: Cost of revenue $ 504 $ 424 Research and development costs 1,043 917 Selling, general and administrative 4,865 4,052 Total share-based compensation 6,412 5,393 Income tax benefit (1,582 ) (1,264 ) Decrease in net income $ 4,830 $ 4,129 Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes 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 Reference Rate Reform (Topic 848): Scope Topic 848 amended and restated revolving credit agreement Topic 848 e are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance on our condensed consolidated financial statements |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Jun. 30, 2021 | |
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 The following table presents our revenues disaggregated by our major revenue categories and by occurrence: Three Months Ended June 30, 2021 2020 Recurring revenues: Subscription services $ 38,284 $ 35,360 Support and maintenance 38,486 38,547 Managed services 29,431 22,493 Electronic data interchange and data services 26,180 23,122 Total recurring revenues 132,381 119,522 Software, hardware, and other non-recurring revenues: Software license and hardware 7,214 4,740 Other non-recurring services 6,489 6,617 Total software, hardware and other non-recurring revenues 13,703 11,357 Total revenues $ 146,084 $ 130,879 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, 2021, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $551,200, of which we expect to recognize approximately 10% as services are rendered or goods are delivered , 54 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% 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, 2021 and 2020 , we recognized $ and $ 20,826 , respectively, of revenues that were included in the contract liability balance or invoiced to customers since the beginning of the corresponding periods . Our contracts with customers do not include any major financing components. Costs to Obtain or Fulfill a Contract We capitalize all incremental costs of obtaining a contract with a customer to the extent that such costs are directly related to a contract and expected to be recoverable. Our sales commissions and related sales incentives are considered incremental costs requiring capitalization. Capitalized contract costs are amortized to expense utilizing a method that is consistent with the transfer of the related goods or services to the customer. The amortization period ranges from less than one year up to five years, based on the period over which the related goods and services are transferred, including consideration of the expected customer renewals and the related useful lives of the products. Capitalized commissions costs were $29,092 as of June 30, 2021, of which $9,941 is classified as current and included as prepaid expenses and other current assets and $19,151 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, 2021 and 2020, we recognized $2,926 and $2,240, 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 and comprehensive income. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | 3. 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, 2021 March 31, 2021 Accounts receivable, gross $ 77,594 $ 81,746 Allowance for doubtful accounts (4,099 ) (4,205 ) Accounts receivable, net $ 73,495 $ 77,541 The following table represents the changes in the allowance for doubtful accounts, as of and for the three months ended June 30, 2021: Balance as of March 31, 2021 $ (4,205 ) Additions charged to costs and expenses (639 ) Deductions 745 Balance as of June 30, 2021 $ (4,099 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 and March 31, 2021: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs June 30, 2021 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 63,002 $ 63,002 $ — $ — Restricted cash and cash equivalents 7,048 7,048 — — $ 70,050 $ 70,050 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 533 $ — $ 533 $ — $ 533 $ — $ 533 $ — Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2021 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 73,295 $ 73,295 $ — $ — Restricted cash and cash equivalents 5,280 5,280 — — $ 78,575 $ 78,575 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 533 $ — $ 533 $ — $ 533 $ — $ 533 $ — (1) Cash equivalents consist primarily of money market funds. We believe that the fair value of our other financial assets and liabilities, including accounts receivable, accounts payable, and line of credit, approximate their respective carrying values due to their nominal credit risk. Non-Recurring Fair Value Measurements We have certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 5. Leases Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. 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 comprehensive income. Total operating lease costs were $1,864 and $2,270 for the three months ended June 30, 2021 and 2020, respectively. Components of operating lease costs are summarized as follows: Three Months Ended June 30, 2021 2020 Operating lease costs $ 1,833 $ 2,098 Short-term lease costs 6 — Variable lease costs 157 297 Less: Sublease income (132 ) (125 ) Total operating lease costs $ 1,864 $ 2,270 Supplemental cash flow information related to operating leases is summarized as follows: Three Months Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 2,964 $ 3,133 We have operating lease agreements for our offices in the United States and India with lease periods expiring between 2021 and 2026. As of June 30, 2021, our operating leases had a weighted average remaining lease term of 2.9 years and a weighted average discount rate of 3.5%. Future minimum aggregate lease payments under operating leases as of June 30, 2021 are summarized as follows: For the year ended March 31, 2022 (remaining nine months) $ 10,761 2023 8,220 2024 6,272 2025 3,790 2026 1,257 Total future lease payments 30,300 Less interest (1,875 ) Total lease liabilities $ 28,425 During the three months ended June 30, 2021, we vacated our Fairport, NY office and recorded impairments of $382 to our operating right-of-use assets and certain related fixed assets based on projected sublease rental income and the estimated sublease commencement date. The impairment analysis was performed by operating right-of-use asset and the impairment charge was estimated by comparing the fair value of the operating right-of-use asset based on the expected cash flows to its respective book value. We determined the discount rate for the lease based on the approximate interest rate on a collateralized basis with a similar remaining term and payments as of the impairment date. Significant judgment was required to estimate the fair value of the operating right-of-use asset and actual results could vary from the estimates, resulting in potential future adjustments to amounts previously recorded. |
Goodwill
Goodwill | 3 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 6. 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 and have a single reporting unit. The measures evaluated by our chief operating decision maker ("CODM") to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. In June 2021, upon the departure of the former CODM (Chief Executive Officer), the role of the CODM was assumed by our Chief Financial Officer. As part of our annual goodwill impairment test, we may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount. We assess events or changes in circumstances in totality, including macroeconomic and industry conditions, market and competitive environment, changes in customers or customer mix, cost factors, loss of key personnel, significant changes in legislative environment or other legal factors, changes in the use of our acquired assets, changes in our strategic direction, significant changes in projected future results of operations, changes in the composition or carrying amount of our net assets, and changes in our stock price. Based on our assessment, if we conclude that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then additional impairment testing is not required. Otherwise, if we determine that a quantitative impairment test should be performed, we then evaluate goodwill for impairment by comparing the estimated fair value of the reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. During the quarter ended June 30, 2021, we performed a qualitative assessment, which indicated that it was more likely than not that the fair value of goodwill exceeded its net carrying value and, therefore, additional impairment testing was not deemed necessary. We do not amortize goodwill as it has been determined to have an indefinite useful life. The carrying amount of goodwill as of June 30, 2021 and March 31, 2021 was $267,212. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: June 30, 2021 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 49,000 $ 88,450 Accumulated amortization (27,218 ) (79 ) (27,552 ) (54,849 ) Net intangible assets $ 11,982 $ 171 $ 21,448 $ 33,601 March 31, 2021 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 91,500 $ 130,950 Accumulated amortization (26,349 ) (67 ) (67,834 ) (94,250 ) Net intangible assets $ 12,851 $ 183 $ 23,666 $ 36,700 Amortization expense related to customer relationships and trade names recorded as operating expenses in the condensed consolidated statements of net income and comprehensive income was $881 and $1,112 for the three months ended June 30, 2021 and 2020, respectively. Amortization expense related to software technology recorded as cost of revenue was $2,218 and $5,136 for the three months ended June 30, 2021 and 2020, respectively. The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of June 30, 2021: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 2022 (remaining nine months) $ 2,643 $ 6,655 $ 9,298 2023 2,820 5,154 7,974 2024 2,279 3,573 5,852 2025 1,846 3,573 5,419 2026 1,377 2,251 3,628 2027 and beyond 1,188 242 1,430 Total $ 12,153 $ 21,448 $ 33,601 |
Capitalized Software Costs
Capitalized Software Costs | 3 Months Ended |
Jun. 30, 2021 | |
Research And Development [Abstract] | |
Capitalized Software Costs | 8. Capitalized Software Costs Our capitalized software costs are summarized as follows: June 30, 2021 March 31, 2021 Gross carrying amount $ 101,290 $ 96,908 Accumulated amortization (60,144 ) (55,434 ) Net capitalized software costs $ 41,146 $ 41,474 Amortization expense related to capitalized software costs was $5,866 and $4,763 for the three months ended June 30, 2021 and 2020, respectively, and is recorded as cost of revenue in the condensed consolidated statements of net income and comprehensive income. The following table presents the remaining estimated amortization of capitalized software costs as of June 30, 2021. 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, 2022 (remaining nine months) $ 19,500 2023 14,300 2024 6,300 2025 1,000 2026 46 Total $ 41,146 |
Line of Credit
Line of Credit | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Line of Credit | 9. Line of Credit On March 12, 2021, we entered into a $300,000 second amended and restated revolving credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”), U.S. Bank National Association and Bank of the West, as co-syndication agents, and certain other agents and lenders. The Credit Agreement replaces our prior $300,000 amended and restated revolving credit agreement, originally entered into on January 4, 2016 and amended on March 29, 2018 (“Original Credit Agreement”). The Credit Agreement provides a subfacility of up to $10,000 for letters of credit and a subfacility of up to $10,000 for swing-line loans. The Credit Agreement also provides us with the ability to obtain up to $150,000 in the aggregate of additional revolving credit commitments and/or term loans thereunder (i.e., in excess of $300,000) upon satisfaction of certain conditions, including receipt of commitments from new or existing lenders to provide such additional revolving credit commitments and/or term loans. The Credit Agreement matures on March 12, 2026 and the full balance of the revolving loans and all other obligations under the Credit Agreement must be paid at that time. In addition, we are required to prepay the revolving loan balance if at any time the aggregate principal amount outstanding under the Credit Agreement exceeds the aggregate commitments thereunder. The Credit Agreement is secured by substantially all of our existing and future property and our material domestic subsidiaries. The revolving loans under the Credit Agreement will be available for letters of credit, permitted acquisitions, working capital and general corporate purposes. We were in compliance with all financial and non-financial covenants under the Credit Agreement as of June 30, 2021. As of both June 30, 2021 and March 31, 2021, we had no outstanding loans and $300,000 of unused credit under the Credit Agreement. Interest expense related to the Credit Agreement was $190 and $928 for the three months ended June 30, 2021 and 2020, respectively. Amortization of deferred debt issuance costs was $127 and $177 for the three months ended June 30, 2021 and 2020, respectively. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 3 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | 10. Composition of Certain Financial Statement Captions Cash, cash equivalents, and restricted cash are summarized as follows: June 30, 2021 March 31, 2021 Cash and cash equivalents $ 63,002 $ 73,295 Restricted cash and cash equivalents 7,048 5,280 Cash, cash equivalents, and restricted cash $ 70,050 $ 78,575 Prepaid expenses and other current assets are summarized as follows: June 30, 2021 March 31, 2021 Prepaid expenses $ 18,125 $ 20,679 Capitalized commissions costs 9,941 9,399 Other current assets 1,368 1,204 Prepaid expenses and other current assets $ 29,434 $ 31,282 Equipment and improvements are summarized as follows: June 30, 2021 March 31, 2021 Computer equipment $ 35,563 $ 35,244 Internal-use software 18,699 18,174 Furniture and fixtures 11,182 11,555 Leasehold improvements 14,716 14,418 Equipment and improvements, gross 80,160 79,391 Accumulated depreciation and amortization (66,684 ) (64,852 ) Equipment and improvements, net $ 13,476 $ 14,539 Other assets are summarized as follows: June 30, 2021 March 31, 2021 Capitalized commission costs $ 19,151 $ 19,104 Deposits 5,554 5,505 Debt issuance costs 2,387 2,521 Other noncurrent assets 10,029 9,891 Other assets $ 37,121 $ 37,021 Accrued compensation and related benefits are summarized as follows: June 30, 2021 March 31, 2021 Accrued bonus $ 8,524 $ 29,382 Accrued vacation 12,242 12,038 Accrued commissions 3,302 4,628 Deferred payroll taxes 3,817 3,817 Accrued payroll and other 525 509 Accrued compensation and related benefits $ 28,410 $ 50,374 Other current liabilities are summarized as follows: June 30, 2021 March 31, 2021 Accrued legal expense $ 9,186 $ 6,302 Accrued hosting costs 8,006 6,158 Care services liabilities 7,048 5,280 Sales returns reserves and other customer liabilities 6,813 9,449 Customer credit balances and deposits 4,870 4,638 Accrued employee benefits and withholdings 4,448 4,649 Accrued consulting and outside services 2,428 3,002 Accrued outsourcing costs 2,302 2,266 Accrued EDI expense 1,996 2,020 Accrued self insurance expense 1,954 1,737 Accrued taxes payable 696 586 Contingent consideration related to acquisitions 533 533 Accrued royalties 484 3,125 Other accrued expenses 3,520 2,954 Other current liabilities $ 54,284 $ 52,699 Deferred payroll taxes $ 3,817 3,817 Uncertain tax positions 3,175 3,175 Other liabilities 156 144 Other noncurrent liabilities $ 7,148 $ 7,136 |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The provision for income taxes in the three months ended June 30, 2021 was $559, reflecting an effective tax rate of 16.4%. The provision for income taxes in the three months ended June 30, 2020 was $1,616, reflecting an effective tax rate of 204.0%. The decrease in the effective tax rate for the three months ended June 30, 2021 compared to the prior year period was primarily due to the annualized projected loss before taxes in the prior year, which caused the rate reconciling items to have a more significant impact on the effective tax rate. The decrease in the effective tax rate was also driven from the net benefit of discrete items in the current period compared to the prior year net expense for 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. We had unrecognized tax benefits of $4,518 and $4,426 related to various federal, state, and local income tax matters as of June 30, 2021 and March 31, 2021. The unrecognized benefits consisted of liabilities of $3,225 and $3,175 and reserves as of June 30, 2021 and March 31, 2021, against deferred tax assets of $1,293 and $1,251 as of June 30, 2021 and March 31, 2021. 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 2017. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2016. 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. 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, 2021 2020 Earnings per share — Basic: Net income (loss) $ 2,848 $ (824 ) Weighted-average shares outstanding — Basic 67,175 66,296 Net income (loss) per common share — Basic $ 0.04 $ (0.01 ) Earnings per share — Diluted: Net income (loss) $ 2,848 $ (824 ) Weighted-average shares outstanding 67,175 66,296 Effect of potentially dilutive securities 624 — Weighted-average shares outstanding — Diluted 67,799 66,296 Net income (loss) per common share — Diluted $ 0.04 $ (0.01 ) The computation of diluted net income (loss) per share does not include 238 and 2,979 options to acquire shares of common stock for the three months ended June 30, 2021 and June 30, 2020, 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, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Awards | 13. 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, 2021, there were 102,520 outstanding options under the 2005 Plan. In August 2015, our shareholders approved a stock option and incentive plan (the “2015 Plan”) under which 11,500,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance stock awards and other share-based awards. In August 2017, our shareholders approved an amendment to the 2015 Plan, (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, 2021, there were 2,638,864 outstanding options, 2,172,959 outstanding shares of restricted stock awards, certain outstanding performance stock unit awards as described further below, and 1,592,107 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, 2021: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2021 2,791,084 $ 14.47 3.70 $ 10,303 Exercised (700 ) 15.99 0.93 $ — Forfeited/Canceled (10,000 ) 21.27 5.09 Expired (39,000 ) 17.95 Outstanding, June 30, 2021 2,741,384 $ 14.40 3.54 $ 6,270 Vested and expected to vest, June 30, 2021 2,688,422 $ 14.39 3.52 $ 6,165 Exercisable, June 30, 2021 2,421,002 $ 14.34 3.41 $ 5,636 Share-based compensation expense related to stock options was $709 and $732 for the three months ended June 30, 2021 and 2020, respectively. Non-vested stock option award activity during the three months ended June 30, 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2021 459,339 $ 5.96 Vested (128,957 ) 6.21 Forfeited/Canceled (10,000 ) 8.74 Outstanding, June 30, 2021 320,382 $ 5.78 As of June 30, 2021, $677 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-average period of 0.5 years. This amount does not include the cost of new options that may be granted in future periods or any changes in our forfeiture percentage. The total fair value of options vested during the three months ended June 30, 2021 and 2020 was $800 and $1,378, respectively. Restricted Stock Awards Restricted stock awards activity during the three months ended June 30, 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2021 2,263,569 $ 14.58 Granted 548,768 16.59 Vested (518,519 ) 14.92 Canceled (120,859 ) 14.69 Outstanding, June 30, 2021 2,172,959 $ 15.00 Share-based compensation expense related to restricted stock awards was $6,458 for the three months ended June 30, 2021 and includes the impact of incremental expense incurred from the accelerated vesting of certain equity awards associated with the departure of our Chief Executive Officer. Share-based compensation expense related to restricted stock awards was $4,039 for the three months ended June 30, 2020. 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, 2021, $24,148 of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of 1.9 years. This amount does not include the cost of new restricted stock awards that may be granted in future periods. Performance Stock Units and Awards 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 was $17.84 per share, which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return and using a probability-adjusted achievement rate combined with the market price of the common stock on the date of grant for the awards based on revenue and earnings per share targets. Share-based compensation expense related to the performance stock unit awards was a benefit of $438 for the three months ended June 30, 2021 primarily due to cancellation of awards associated with the departure of our Chief Executive Officer. Share-based compensation expense related to the performance stock unit awards was $114 for the three months ended June 30, 2020. On December 26, 2019 and January 27, 2020, the Compensation Committee of the Board approved a total of 279,587 performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team, which vest only in the event certain performance goals are achieved and with continuous service through the date the goals are certified. Approximately 80% of the performance stock units are tied to the Company’s fiscal year 2021 revenue goal and 20% are tied to the Company’s fiscal year 2022 revenue goal. Performance stock unit awards funded for fiscal year 2021 and fiscal year 2022 revenue performance will be modified for cumulative 3-year total shareholder return (“TSR”) on the three-year $457 for the three months ended June 30, 2021 the resignation of our Chief Executive Officer. Share-based compensation expense related to the perform On October 26, 2020, the Compensation Committee of the Board approved 408,861 performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team, which vest only in the event certain performance goals are achieved and with continuous service through the date the goals are certified. Approximately 80% of the performance stock units are tied to the Company’s fiscal year 2022 revenue goal and 20% are tied to the Company’s fiscal year 2023 revenue goal. Performance stock unit awards funded for fiscal year 2022 and fiscal year 2023 revenue performance will be modified for cumulative 3-year TSR on the three-year which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return and using a probability adjusted achievement rate combined with the market price of the common stock on the date of grant for the awards based on revenue targets. $61 for the three months ended June 30, 2021 the resignation of our Chief Executive Officer. As of June 30, 2021, $5,223 of total estimated unrecognized compensation costs related to performance stock units and awards is expected to be recognized over a weighted-average period of 2.1 years. This amount does not include the cost of new performance stock units and awards that may be granted in future periods. Employee Share Purchase Plan On August 11, 2014, our shareholders approved an Employee Share Purchase Plan (the “Purchase Plan”) under which 4,000,000 shares of common stock were reserved for future grant. The Purchase Plan allows eligible employees to purchase shares through payroll deductions of up to 15% of total base salary at a price equal to 90% of the lower of the fair market values of the shares as of the beginning or the end of the corresponding offering period. Any shares purchased under the Purchase Plan are subject to a six-month holding period. Employees are limited to purchasing no more than 1,500 shares on any single purchase date and no more than $25 in total fair market value of shares during any one calendar year. As of June 30, 2021, we have issued 791,209 shares under the Purchase Plan and 3,208,791 shares are available for future issuance. Share-based compensation expense recorded for the employee share purchase plan was $201 and $164 for the three months ended June 30, 2021 and 2020, respectively. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Jun. 30, 2021 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | 14. Concentration of Credit Risk We had cash deposits at United States banks and financial institutions which exceeded federally insured limits at June 30, 2021. We are exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the institutions; however, we do not anticipate non-performance by these institutions. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 3 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 15. 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. After the court sustained our demurrer to the initial complaint, Hussein filed an amended complaint 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. Hussein’s breach of fiduciary duty claims were dismissed on demurrer, and we filed an answer and cross-complaint against Hussein, alleging that he breached fiduciary duties owed to the Company. On September 16, 2015, the Court granted summary judgment with respect to Hussein’s remaining claims, dismissing all claims against us. The cross-complaint against Hussein went to trial, but the Court granted judgment in favor of Hussein on our cross-complaint. Final judgment over Hussein’s claims and our cross-claims was entered on January 9, 2018. Hussein appealed the order granting summary judgment over his claims, and we appealed the court’s decision granting Hussein’s motion for judgment on our cross-complaint. On October 8, 2019, the California State Court of Appeal for the Fourth Appellate District, Division Three, reversed the Superior Court’s grant of summary judgment on Hussein’s affirmative claims and affirmed the trial court’s judgement on the Company’s breach of fiduciary duty claims against Hussein. As a result, the case has returned to the trial court for resolution of Hussein’s claims against us. Trial commenced on July 6, 2021. On July 29, 2021, the jury rendered a verdict in favor of the Company and the individual defendants on all counts. Separately, Hussein has issued an arbitration demand seeking indemnification for the fees he incurred defending against our cross-complaint. Following briefing and a hearing at the liability phase of the arbitration, the arbitrator held that Hussein is entitled to indemnification for “expenses” (as that term is defined in Hussein’s indemnification agreement with NextGen) incurred in defense of NextGen’s cross-complaint against him. The arbitrator reserved all other claims related to costs and damages for a second phase of the arbitration. On June 10, 2021, the arbitrator heard arguments on the quantum of indemnifiable expenses. The arbitrator has not yet issued a decision and the parties are submitting additional briefing on the remaining issues. At this time, we are unable to estimate the probability or the amount of liability, if any, related to this matter. 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. |
Restructuring Plan
Restructuring Plan | 3 Months Ended |
Jun. 30, 2021 | |
Restructuring Costs [Abstract] | |
Restructuring Plan | 16. Restructuring Plan In the three months ended June 30, 2021 and 2020, we recorded restructuring costs of $539 and $2,562, respectively, These amounts were accrued when it was probable that the benefits would be paid, and the amounts were reasonably estimable. The payroll-related costs for the three months ended June 30, 2021 have been substantially paid. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On July 29, 2021, a jury rendered a verdict in favor of the Company and the individual defendants on all counts in the Hussein Litigation, as described in Note 15, “Commitments, Guarantees and Contingencies.” |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 and for the three months ended June 30, 2021 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, 2021. 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. |
Share-Based Compensation | Share-Based Compensation. The following table summarizes total share-based compensation expense included in the condensed consolidated statements of comprehensive income for the three months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 Costs and expenses: Cost of revenue $ 504 $ 424 Research and development costs 1,043 917 Selling, general and administrative 4,865 4,052 Total share-based compensation 6,412 5,393 Income tax benefit (1,582 ) (1,264 ) Decrease in net income $ 4,830 $ 4,129 |
Recent Accounting Standards | Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes 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 Reference Rate Reform (Topic 848): Scope Topic 848 amended and restated revolving credit agreement Topic 848 e are currently in the process of evaluating the potential impact of adoption of this updated authoritative guidance 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 |
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. |
Leases | Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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 comprehensive income for the three months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 Costs and expenses: Cost of revenue $ 504 $ 424 Research and development costs 1,043 917 Selling, general and administrative 4,865 4,052 Total share-based compensation 6,412 5,393 Income tax benefit (1,582 ) (1,264 ) Decrease in net income $ 4,830 $ 4,129 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Recurring revenues: Subscription services $ 38,284 $ 35,360 Support and maintenance 38,486 38,547 Managed services 29,431 22,493 Electronic data interchange and data services 26,180 23,122 Total recurring revenues 132,381 119,522 Software, hardware, and other non-recurring revenues: Software license and hardware 7,214 4,740 Other non-recurring services 6,489 6,617 Total software, hardware and other non-recurring revenues 13,703 11,357 Total revenues $ 146,084 $ 130,879 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 March 31, 2021 Accounts receivable, gross $ 77,594 $ 81,746 Allowance for doubtful accounts (4,099 ) (4,205 ) Accounts receivable, net $ 73,495 $ 77,541 |
Summary of Changes in Allowance for Doubtful Accounts | The following table represents the changes in the allowance for doubtful accounts, as of and for the three months ended June 30, 2021: Balance as of March 31, 2021 $ (4,205 ) Additions charged to costs and expenses (639 ) Deductions 745 Balance as of June 30, 2021 $ (4,099 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 and March 31, 2021: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs June 30, 2021 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 63,002 $ 63,002 $ — $ — Restricted cash and cash equivalents 7,048 7,048 — — $ 70,050 $ 70,050 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 533 $ — $ 533 $ — $ 533 $ — $ 533 $ — Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2021 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 73,295 $ 73,295 $ — $ — Restricted cash and cash equivalents 5,280 5,280 — — $ 78,575 $ 78,575 $ — $ — LIABILITIES Contingent consideration related to acquisitions $ 533 $ — $ 533 $ — $ 533 $ — $ 533 $ — (1) Cash equivalents consist primarily of money market funds. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Summary of Components of Operating Lease Costs | Components of operating lease costs are summarized as follows: Three Months Ended June 30, 2021 2020 Operating lease costs $ 1,833 $ 2,098 Short-term lease costs 6 — Variable lease costs 157 297 Less: Sublease income (132 ) (125 ) Total operating lease costs $ 1,864 $ 2,270 |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases is summarized as follows: Three Months Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 2,964 $ 3,133 |
Summary of Future Minimum Aggregate Lease Payments Operating Leases | Future minimum aggregate lease payments under operating leases as of June 30, 2021 are summarized as follows: For the year ended March 31, 2022 (remaining nine months) $ 10,761 2023 8,220 2024 6,272 2025 3,790 2026 1,257 Total future lease payments 30,300 Less interest (1,875 ) Total lease liabilities $ 28,425 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 49,000 $ 88,450 Accumulated amortization (27,218 ) (79 ) (27,552 ) (54,849 ) Net intangible assets $ 11,982 $ 171 $ 21,448 $ 33,601 March 31, 2021 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 91,500 $ 130,950 Accumulated amortization (26,349 ) (67 ) (67,834 ) (94,250 ) Net intangible assets $ 12,851 $ 183 $ 23,666 $ 36,700 |
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, 2021: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 2022 (remaining nine months) $ 2,643 $ 6,655 $ 9,298 2023 2,820 5,154 7,974 2024 2,279 3,573 5,852 2025 1,846 3,573 5,419 2026 1,377 2,251 3,628 2027 and beyond 1,188 242 1,430 Total $ 12,153 $ 21,448 $ 33,601 |
Capitalized Software Costs (Tab
Capitalized Software Costs (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | Our capitalized software costs are summarized as follows: June 30, 2021 March 31, 2021 Gross carrying amount $ 101,290 $ 96,908 Accumulated amortization (60,144 ) (55,434 ) Net capitalized software costs $ 41,146 $ 41,474 |
Estimated Amortization of Capitalized Software Costs | The following table presents the remaining estimated amortization of capitalized software costs as of June 30, 2021. 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, 2022 (remaining nine months) $ 19,500 2023 14,300 2024 6,300 2025 1,000 2026 46 Total $ 41,146 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 March 31, 2021 Cash and cash equivalents $ 63,002 $ 73,295 Restricted cash and cash equivalents 7,048 5,280 Cash, cash equivalents, and restricted cash $ 70,050 $ 78,575 |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets are summarized as follows: June 30, 2021 March 31, 2021 Prepaid expenses $ 18,125 $ 20,679 Capitalized commissions costs 9,941 9,399 Other current assets 1,368 1,204 Prepaid expenses and other current assets $ 29,434 $ 31,282 |
Summary of Equipment and Improvements | Equipment and improvements are summarized as follows: June 30, 2021 March 31, 2021 Computer equipment $ 35,563 $ 35,244 Internal-use software 18,699 18,174 Furniture and fixtures 11,182 11,555 Leasehold improvements 14,716 14,418 Equipment and improvements, gross 80,160 79,391 Accumulated depreciation and amortization (66,684 ) (64,852 ) Equipment and improvements, net $ 13,476 $ 14,539 |
Summary of Other Assets | Other assets are summarized as follows: June 30, 2021 March 31, 2021 Capitalized commission costs $ 19,151 $ 19,104 Deposits 5,554 5,505 Debt issuance costs 2,387 2,521 Other noncurrent assets 10,029 9,891 Other assets $ 37,121 $ 37,021 |
Summary of Accrued Compensation and Related Benefits | Accrued compensation and related benefits are summarized as follows: June 30, 2021 March 31, 2021 Accrued bonus $ 8,524 $ 29,382 Accrued vacation 12,242 12,038 Accrued commissions 3,302 4,628 Deferred payroll taxes 3,817 3,817 Accrued payroll and other 525 509 Accrued compensation and related benefits $ 28,410 $ 50,374 |
Summary of Other Current Liabilities | Other current liabilities are summarized as follows: June 30, 2021 March 31, 2021 Accrued legal expense $ 9,186 $ 6,302 Accrued hosting costs 8,006 6,158 Care services liabilities 7,048 5,280 Sales returns reserves and other customer liabilities 6,813 9,449 Customer credit balances and deposits 4,870 4,638 Accrued employee benefits and withholdings 4,448 4,649 Accrued consulting and outside services 2,428 3,002 Accrued outsourcing costs 2,302 2,266 Accrued EDI expense 1,996 2,020 Accrued self insurance expense 1,954 1,737 Accrued taxes payable 696 586 Contingent consideration related to acquisitions 533 533 Accrued royalties 484 3,125 Other accrued expenses 3,520 2,954 Other current liabilities $ 54,284 $ 52,699 Deferred payroll taxes $ 3,817 3,817 Uncertain tax positions 3,175 3,175 Other liabilities 156 144 Other noncurrent liabilities $ 7,148 $ 7,136 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Earnings per share — Basic: Net income (loss) $ 2,848 $ (824 ) Weighted-average shares outstanding — Basic 67,175 66,296 Net income (loss) per common share — Basic $ 0.04 $ (0.01 ) Earnings per share — Diluted: Net income (loss) $ 2,848 $ (824 ) Weighted-average shares outstanding 67,175 66,296 Effect of potentially dilutive securities 624 — Weighted-average shares outstanding — Diluted 67,799 66,296 Net income (loss) per common share — Diluted $ 0.04 $ (0.01 ) |
Share Based Awards (Tables)
Share Based Awards (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
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, 2021: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2021 2,791,084 $ 14.47 3.70 $ 10,303 Exercised (700 ) 15.99 0.93 $ — Forfeited/Canceled (10,000 ) 21.27 5.09 Expired (39,000 ) 17.95 Outstanding, June 30, 2021 2,741,384 $ 14.40 3.54 $ 6,270 Vested and expected to vest, June 30, 2021 2,688,422 $ 14.39 3.52 $ 6,165 Exercisable, June 30, 2021 2,421,002 $ 14.34 3.41 $ 5,636 |
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, 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2021 459,339 $ 5.96 Vested (128,957 ) 6.21 Forfeited/Canceled (10,000 ) 8.74 Outstanding, June 30, 2021 320,382 $ 5.78 |
Summary of Restricted Stock Awards Activity | Restricted Stock Awards Restricted stock awards activity during the three months ended June 30, 2021 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2021 2,263,569 $ 14.58 Granted 548,768 16.59 Vested (518,519 ) 14.92 Canceled (120,859 ) 14.69 Outstanding, June 30, 2021 2,172,959 $ 15.00 |
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, 2021 | Jun. 30, 2020 | |
Costs and expenses: | ||
Total share-based compensation | $ 6,412 | $ 5,393 |
Income tax benefit | (1,582) | (1,264) |
Decrease in net income | 4,830 | 4,129 |
Cost of Revenue | ||
Costs and expenses: | ||
Total share-based compensation | 504 | 424 |
Research and Development Costs | ||
Costs and expenses: | ||
Total share-based compensation | 1,043 | 917 |
Selling, General and Administrative | ||
Costs and expenses: | ||
Total share-based compensation | $ 4,865 | $ 4,052 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - Accounting Standards Update 2019-12 | Jun. 30, 2021 |
Accounting Policies [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] | false |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2021 |
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, 2021 | Jun. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 146,084 | $ 130,879 |
Subscription Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 38,284 | 35,360 |
Support And Maintenance | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 38,486 | 38,547 |
Managed Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 29,431 | 22,493 |
Electronic Data Interchange And Data Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 26,180 | 23,122 |
Recurring Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 132,381 | 119,522 |
Software License and Hardware | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 7,214 | 4,740 |
Other Non-recurring Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 6,489 | 6,617 |
Software, Hardware, and Other Non-recurring | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 13,703 | $ 11,357 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue From Contract With Customer [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 551,200 | $ 505,700 |
Percentage of revenue expected to recognize as services rendered and goods delivered | 10.00% | 8.00% |
Percentage of revenue expected to recognize over next 12 months | 54.00% | 54.00% |
Contract liability balance or invoiced to customers | $ 17,781 | $ 20,826 |
Capitalized commission costs | 29,092 | |
Commission expenses | 2,926 | $ 2,240 |
Prepaid Expenses And Other Current Assets | ||
Revenue From Contract With Customer [Line Items] | ||
Capitalized commission costs | 9,941 | |
Other Noncurrent Assets | ||
Revenue From Contract With Customer [Line Items] | ||
Capitalized commission costs | $ 19,151 | |
Minimum | ||
Revenue From Contract With Customer [Line Items] | ||
Capitalized contract cost, amortization period | 1 year | |
Maximum | ||
Revenue From Contract With Customer [Line Items] | ||
Capitalized contract cost, amortization period | 5 years |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 77,594 | $ 81,746 |
Allowance for doubtful accounts | (4,099) | (4,205) |
Accounts receivable, net | $ 73,495 | $ 77,541 |
Accounts Receivable - Summary_2
Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Receivables [Abstract] | ||
Balance | $ (4,205) | |
Additions charged to costs and expenses | (639) | $ (869) |
Deductions | 745 | |
Balance | $ (4,099) |
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, 2021 | Mar. 31, 2021 | |
Carrying Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | $ 63,002 | $ 73,295 |
Restricted cash and cash equivalents | 7,048 | 5,280 | |
Total | 70,050 | 78,575 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 533 | 533 | |
Total | 533 | 533 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 63,002 | 73,295 |
Restricted cash and cash equivalents | 7,048 | 5,280 | |
Total | 70,050 | 78,575 | |
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 | 533 | 533 | |
Total | 533 | 533 | |
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 | 0 | 0 | |
Total | $ 0 | $ 0 | |
[1] | Cash equivalents consist primarily of money market funds. |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee Lease Description [Line Items] | ||
Total operating lease costs | $ 1,864 | $ 2,270 |
Operating lease, weighted average remaining lease term | 2 years 10 months 24 days | |
Operating lease, weighted average discount rate, percent | 3.50% | |
Lease Right of Use Assets and Property Plant and Equipment | ||
Lessee Lease Description [Line Items] | ||
Other asset impairment charges | $ 382 | |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Lease expiration year | 2021 | |
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, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 1,833 | $ 2,098 |
Short-term lease costs | 6 | |
Variable lease costs | 157 | 297 |
Less: Sublease income | (132) | (125) |
Total operating lease costs | $ 1,864 | $ 2,270 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 2,964 | $ 3,133 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Aggregate Lease Payments Operating Leases (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2022 (remaining nine months) | $ 10,761 |
2023 | 8,220 |
2024 | 6,272 |
2025 | 3,790 |
2026 | 1,257 |
Total future lease payments | 30,300 |
Less interest | (1,875) |
Total lease liabilities | $ 28,425 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021USD ($)segment | Mar. 31, 2021USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Number of operating segments | segment | 1 | |
Goodwill | $ | $ 267,212 | $ 267,212 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets, Other than Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 88,450 | $ 130,950 |
Accumulated amortization | (54,849) | (94,250) |
Net intangible assets | 33,601 | 36,700 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 39,200 | 39,200 |
Accumulated amortization | (27,218) | (26,349) |
Net intangible assets | 11,982 | 12,851 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 250 | 250 |
Accumulated amortization | (79) | (67) |
Net intangible assets | 171 | 183 |
Computer Software, Intangible Asset | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 49,000 | 91,500 |
Accumulated amortization | (27,552) | (67,834) |
Net intangible assets | $ 21,448 | $ 23,666 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization of other intangibles | $ 3,099 | $ 6,248 |
Customer Relationships and Trade Names | Operating Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of other intangibles | 881 | 1,112 |
Computer Software, Intangible Asset | Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization of other intangibles | $ 2,218 | $ 5,136 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization of Intangible Assets with Determinable Lives (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
2022 (remaining nine months) | $ 9,298 | |
2023 | 7,974 | |
2024 | 5,852 | |
2025 | 5,419 | |
2026 | 3,628 | |
2027 and beyond | 1,430 | |
Net intangible assets | 33,601 | $ 36,700 |
Operating Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
2022 (remaining nine months) | 2,643 | |
2023 | 2,820 | |
2024 | 2,279 | |
2025 | 1,846 | |
2026 | 1,377 | |
2027 and beyond | 1,188 | |
Net intangible assets | 12,153 | |
Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
2022 (remaining nine months) | 6,655 | |
2023 | 5,154 | |
2024 | 3,573 | |
2025 | 3,573 | |
2026 | 2,251 | |
2027 and beyond | 242 | |
Net intangible assets | $ 21,448 |
Capitalized Software Costs - Ca
Capitalized Software Costs - Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Research And Development [Abstract] | ||
Gross carrying amount | $ 101,290 | $ 96,908 |
Accumulated amortization | (60,144) | (55,434) |
Net capitalized software costs | $ 41,146 | $ 41,474 |
Capitalized Software Costs - Ad
Capitalized Software Costs - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Research And Development [Abstract] | ||
Amortization of capitalized software costs | $ 5,866 | $ 4,763 |
Capitalized Software Costs - Es
Capitalized Software Costs - Estimated Amortization of Capitalized Software Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
2022 (remaining nine months) | $ 9,298 | |
2023 | 7,974 | |
2024 | 5,852 | |
2025 | 5,419 | |
2026 | 3,628 | |
Net intangible assets | 33,601 | $ 36,700 |
Capitalized Software Costs | ||
Finite Lived Intangible Assets [Line Items] | ||
2022 (remaining nine months) | 19,500 | |
2023 | 14,300 | |
2024 | 6,300 | |
2025 | 1,000 | |
2026 | 46 | |
Net intangible assets | $ 41,146 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) - USD ($) | 3 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Mar. 12, 2021 | Mar. 29, 2018 | |
Line Of Credit Facility [Line Items] | |||||
Loans outstanding | $ 0 | $ 0 | |||
Remaining borrowing capacity | 300,000,000 | $ 300,000,000 | |||
Interest expense | 190,000 | $ 928,000 | |||
Amortization of debt issuance costs | 127,000 | $ 177,000 | |||
Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | $ 300,000,000 | $ 300,000,000 | ||
Credit agreement maturity date | Mar. 12, 2026 | ||||
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, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 63,002 | $ 73,295 | ||
Restricted cash and cash equivalents | 7,048 | 5,280 | ||
Cash, cash equivalents, and restricted cash | $ 70,050 | $ 78,575 | $ 200,355 | $ 140,319 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 18,125 | $ 20,679 |
Capitalized commissions costs | 9,941 | 9,399 |
Other current assets | 1,368 | 1,204 |
Prepaid expenses and other current assets | $ 29,434 | $ 31,282 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions - Summary of Equipment and Improvements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 80,160 | $ 79,391 |
Accumulated depreciation and amortization | (66,684) | (64,852) |
Equipment and improvements, net | 13,476 | 14,539 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 35,563 | 35,244 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 18,699 | 18,174 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 11,182 | 11,555 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 14,716 | $ 14,418 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions - Summary of Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Capitalized commission costs | $ 19,151 | $ 19,104 |
Deposits | 5,554 | 5,505 |
Debt issuance costs | 2,387 | 2,521 |
Other noncurrent assets | 10,029 | 9,891 |
Other assets | $ 37,121 | $ 37,021 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions - Summary of Accrued Compensation and Related Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Employee Related Liabilities Current [Abstract] | ||
Accrued bonus | $ 8,524 | $ 29,382 |
Accrued vacation | 12,242 | 12,038 |
Accrued commissions | 3,302 | 4,628 |
Deferred payroll taxes | 3,817 | 3,817 |
Accrued payroll and other | 525 | 509 |
Accrued compensation and related benefits | $ 28,410 | $ 50,374 |
Composition of Certain Financ_8
Composition of Certain Financial Statement Captions - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Other Liabilities [Abstract] | ||
Accrued legal expense | $ 9,186 | $ 6,302 |
Accrued hosting costs | 8,006 | 6,158 |
Care services liabilities | 7,048 | 5,280 |
Sales returns reserves and other customer liabilities | 6,813 | 9,449 |
Customer credit balances and deposits | 4,870 | 4,638 |
Accrued employee benefits and withholdings | 4,448 | 4,649 |
Accrued consulting and outside services | 2,428 | 3,002 |
Accrued outsourcing costs | 2,302 | 2,266 |
Accrued EDI expense | 1,996 | 2,020 |
Accrued self insurance expense | 1,954 | 1,737 |
Accrued taxes payable | 696 | 586 |
Contingent consideration related to acquisitions | 533 | 533 |
Accrued royalties | 484 | 3,125 |
Other accrued expenses | 3,520 | 2,954 |
Other current liabilities | 54,284 | 52,699 |
Deferred payroll taxes | 3,817 | 3,817 |
Uncertain tax positions | 3,175 | 3,175 |
Other liabilities | 156 | 144 |
Other noncurrent liabilities | $ 7,148 | $ 7,136 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 559 | $ 1,616 | |
Effective tax rate (as a percentage) | 16.40% | 204.00% | |
Liability for unrecognized tax benefits | $ 4,518 | $ 4,426 | |
Unrecognized tax benefits consisted of liability | 3,225 | 3,175 | |
Unrecognized tax benefits reserves against deferred tax assets | $ 1,293 | $ 1,251 | |
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, 2021 | Jun. 30, 2020 | |
Earnings per share — Basic: | ||
Net income (loss) | $ 2,848 | $ (824) |
Weighted-average shares outstanding — Basic | 67,175 | 66,296 |
Net income (loss) per common share — Basic | $ 0.04 | $ (0.01) |
Earnings per share — Diluted: | ||
Net income (loss) | $ 2,848 | $ (824) |
Weighted-average shares outstanding — Basic | 67,175 | 66,296 |
Effect of potentially dilutive securities | 624 | |
Weighted-average shares outstanding — Diluted | 67,799 | 66,296 |
Net income (loss) per common share — Diluted | $ 0.04 | $ (0.01) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Stock Options | ||
Options excluded from the computation of diluted net income (loss) per share | 238 | 2,979 |
Share Based Awards - Additional
Share Based Awards - Additional Information (Details) - USD ($) | Oct. 26, 2020 | Oct. 23, 2018 | Aug. 11, 2014 | Jan. 27, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | 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 | 2,741,384 | 2,791,084 | |||||||||
Total share-based compensation | $ 6,412,000 | $ 5,393,000 | |||||||||
Fair value of options vested | $ 800,000 | 1,378,000 | |||||||||
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 | 102,520 | ||||||||||
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 | 1,592,107 | ||||||||||
Employee Share Purchase Plan | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance | 4,000,000 | 3,208,791 | |||||||||
Total share-based compensation | $ 201,000 | 164,000 | |||||||||
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 | 791,209 | ||||||||||
Employee Stock Options | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Outstanding stock options | 2,638,864 | ||||||||||
Total share-based compensation | $ 709,000 | 732,000 | |||||||||
Total unrecognized compensation costs | $ 677,000 | ||||||||||
Stock option recognized over weighted average period (in years) | 6 months | ||||||||||
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 | 2,172,959 | ||||||||||
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 | 2,172,959 | 2,263,569 | |||||||||
Total share-based compensation | $ 6,458,000 | 4,039,000 | |||||||||
Stock option recognized over weighted average period (in years) | 1 year 10 months 24 days | ||||||||||
Total unrecognized compensation costs | $ 24,148,000 | ||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 548,768 | ||||||||||
Restricted Stock | Minimum | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | ||||||||||
Restricted Stock | Maximum | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Vesting period | 3 years | ||||||||||
Performance Stock Units | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Stock option recognized over weighted average period (in years) | 2 years 1 month 6 days | ||||||||||
Total unrecognized compensation costs | $ 5,223,000 | ||||||||||
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 | ||||||||||
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 | ||||||||||
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% | ||||||||||
Allocated share-based compensation benefits | 438,000 | ||||||||||
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 | 42.50% | ||||||||||
Percentage of shares issued, maximum | 172.50% | ||||||||||
Weighted-average grant date fair value | $ 16.02 | ||||||||||
Allocated share-based compensation benefits | 457,000 | ||||||||||
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% | ||||||||||
Vesting period for the 3-year total shareholder return | 3 years | ||||||||||
Performance Stock Units | Units Granted On October 2020 | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 408,861 | ||||||||||
Percentage of shares issued, minimum | 8.50% | ||||||||||
Percentage of shares issued, maximum | 199.50% | ||||||||||
Weighted-average grant date fair value | $ 16.25 | ||||||||||
Allocated share-based compensation benefits | $ 61,000 | ||||||||||
Percentage of performance stock units tied to fiscal year 2022 revenue goal | 80.00% | ||||||||||
Vesting period for the 3-year total shareholder return | 3 years | ||||||||||
Percentage of performance stock units tied to fiscal year 2023 revenue goal | 20.00% |
Share Based Awards - Summary of
Share Based Awards - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Shares, Outstanding, Beginning | 2,791,084 | |
Number of Shares, Exercised | (700) | |
Number of Shares, Forfeited/Canceled | (10,000) | |
Number of Shares, Expired | (39,000) | |
Number of Shares, Outstanding, Ending | 2,741,384 | 2,791,084 |
Vested and expected to vest, June 30, 2021 | 2,688,422 | |
Exercisable, June 30, 2021 | 2,421,002 | |
Weighted- Average Exercise Price per Share | ||
Weighted-Average Exercise Price per Share, Outstanding, Beginning | $ 14.47 | |
Weighted-Average Exercise Price per Share, Exercised | 15.99 | |
Weighted-Average Exercise Price per Share, Forfeited/Cancelled | 21.27 | |
Weighted-Average Exercise Price per Share, Expired | 17.95 | |
Weighted-Average Exercise Price per Share, Outstanding, Ending | 14.40 | $ 14.47 |
Vested and expected to vest, June 30, 2021 (in dollars per share) | 14.39 | |
Exercisable, June 30, 2021 (in dollars per share) | $ 14.34 | |
Weighted- Average Remaining Contractual Life (years) | ||
Outstanding | 3 years 6 months 14 days | 3 years 8 months 12 days |
Exercised | 11 months 4 days | |
Forfeited/Canceled | 5 years 1 month 2 days | |
Vested and expected to vest, June 30, 2021 | 3 years 6 months 7 days | |
Exercisable, June 30, 2021 | 3 years 4 months 28 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 6,270 | $ 10,303 |
Vested and expected to vest, June 30, 2021 | 6,165 | |
Exercisable, June 30, 2021 | $ 5,636 |
Share Based Awards - Summary _2
Share Based Awards - Summary of Non-vested Stock Option (Details) | 3 Months Ended |
Jun. 30, 2021$ / 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 | 459,339 |
Non-Vested Number of Shares Vested | shares | (128,957) |
Non-Vested Number of Shares Forfeited | shares | (10,000) |
Non-Vested Number of Shares, Ending Balance | shares | 320,382 |
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 | $ 5.96 |
Weighted-Average Grant-Date Fair Value per Share, Vested | $ / shares | 6.21 |
Weighted-Average Grant-Date Fair Value per Share, Forfeited | $ / shares | 8.74 |
Weighted-Average Grant-Date Fair Value per Share, Nonvested, Ending | $ / shares | $ 5.78 |
Share Based Awards - Summary _3
Share Based Awards - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock | 3 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Outstanding Beginning Balance | shares | 2,263,569 |
Granted | shares | 548,768 |
Vested | shares | (518,519) |
Canceled | shares | (120,859) |
Number of Shares Outstanding Ending Balance | shares | 2,172,959 |
Weighted Average Grant-Date Fair Value per Share, Beginning of Period | $ / shares | $ 14.58 |
Weighted Average Grant-Date Fair Value per Share, Granted | $ / shares | 16.59 |
Weighted Average Grant-Date Fair Value per Share, Vested | $ / shares | 14.92 |
Weighted Average Grant-Date Fair Value per Share, Canceled | $ / shares | 14.69 |
Weighted Average Grant-Date Fair Value per Share, End of Period | $ / shares | $ 15 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies - Additional Information (Details) | 3 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Applicable program documentation period | 365 days |
Restructuring Plan - Additional
Restructuring Plan - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Costs [Abstract] | ||
Restructuring costs | $ 539 | $ 2,562 |