Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | May 13, 2022 | Sep. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | NEXTGEN HEALTHCARE, INC. | ||
Trading Symbol | NXGN | ||
Entity Central Index Key | 0000708818 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2022 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 794,080,000 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity File Number | 001-12537 | ||
Entity Tax Identification Number | 95-2888568 | ||
Entity Address, Address Line One | 3525 Piedmont Rd., NE | ||
Entity Address, Address Line Two | 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, $0.01 Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 67,122,221 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Irvine, California | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement related to the 2022 Annual Shareholders' Meeting to be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended March 31, 2022 are incorporated herein by reference in Part III of this Annual Report on Form 10-K where indicated. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 59,829 | $ 73,295 |
Restricted cash and cash equivalents | 6,918 | 5,280 |
Accounts receivable, net | 76,057 | 77,541 |
Contract assets | 25,157 | 19,481 |
Income taxes receivable | 6,507 | 765 |
Prepaid expenses and other current assets | 37,102 | 31,282 |
Total current assets | 211,570 | 207,644 |
Equipment and improvements, net | 9,120 | 14,539 |
Capitalized software costs, net | 43,958 | 41,474 |
Operating lease assets | 11,316 | 18,446 |
Deferred income taxes, net | 19,259 | 19,474 |
Contract assets, net of current | 1,910 | 1,976 |
Intangibles, net | 24,303 | 36,700 |
Goodwill | 267,212 | 267,212 |
Other assets | 39,026 | 37,021 |
Total assets | 627,674 | 644,486 |
Current liabilities: | ||
Accounts payable | 9,125 | 11,378 |
Contract liabilities | 61,280 | 52,863 |
Accrued compensation and related benefits | 48,736 | 50,374 |
Income taxes payable | 99 | 584 |
Operating lease liabilities | 8,089 | 12,735 |
Other current liabilities | 53,533 | 52,699 |
Total current liabilities | 180,862 | 180,633 |
Deferred compensation | 7,230 | 6,620 |
Operating lease liabilities, net of current | 11,934 | 18,453 |
Other noncurrent liabilities | 4,570 | 7,136 |
Total liabilities | 204,596 | 212,842 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: | ||
Common stock, $0.01 par value; authorized 100,000 shares; 69,245 and 67,069 shares issued at March 31, 2022 and March 31, 2021, respectively; 67,075 and 67,069 shares outstanding at March 31, 2022 and March 31, 2021, respectively | 692 | 671 |
Treasury stock, at cost, 2,170 shares at March 31, 2022 | (35,874) | |
Additional paid-in capital | 329,917 | 304,263 |
Accumulated other comprehensive loss | (1,909) | (1,924) |
Retained earnings | 130,252 | 128,634 |
Total shareholders' equity | 423,078 | 431,644 |
Total liabilities and shareholders' equity | $ 627,674 | $ 644,486 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | 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 | 69,245,000 | 67,069,000 |
Common stock, shares outstanding | 67,075,000 | 67,069,000 |
Treasury stock, shares | 2,170,000 |
Consolidated Statements of Net
Consolidated Statements of Net Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | |||
Total revenues | $ 596,350 | $ 556,821 | $ 540,239 |
Cost of revenue: | |||
Amortization of capitalized software costs and acquired intangible assets | 31,889 | 36,768 | 35,478 |
Total cost of revenue | 295,404 | 275,424 | 267,439 |
Gross profit | 300,946 | 281,397 | 272,800 |
Operating expenses: | |||
Selling, general and administrative | 209,661 | 180,529 | 165,174 |
Research and development costs, net | 76,657 | 75,501 | 83,295 |
Amortization of acquired intangible assets | 3,525 | 4,449 | 4,143 |
Impairment of assets | 3,906 | 5,539 | 12,571 |
Restructuring costs | 539 | 2,562 | 2,505 |
Total operating expenses | 294,288 | 268,580 | 267,688 |
Income from operations | 6,658 | 12,817 | 5,112 |
Interest income | 101 | 38 | 256 |
Interest expense | (1,499) | (3,516) | (1,955) |
Other income (expense), net | (64) | (64) | 846 |
Income before provision for (benefit of) income taxes | 5,196 | 9,275 | 4,259 |
Provision for (benefit of) income taxes | 3,578 | (240) | (3,239) |
Net income | 1,618 | 9,515 | 7,498 |
Other comprehensive income: | |||
Foreign currency translation, net of tax | 15 | 219 | (912) |
Comprehensive income | $ 1,633 | $ 9,734 | $ 6,586 |
Net income per share: | |||
Basic | $ 0.02 | $ 0.14 | $ 0.11 |
Diluted | $ 0.02 | $ 0.14 | $ 0.11 |
Weighted-average shares outstanding: | |||
Basic | 67,370 | 66,739 | 65,474 |
Diluted | 67,788 | 66,885 | 65,612 |
Recurring | |||
Revenues: | |||
Total revenues | $ 539,713 | $ 502,819 | $ 489,313 |
Cost of revenue: | |||
Cost of revenue excluding amortization of capitalized software costs and acquired intangible assets | 232,481 | 212,199 | 205,057 |
Software, Hardware, and Other Non-recurring | |||
Revenues: | |||
Total revenues | 56,637 | 54,002 | 50,926 |
Cost of revenue: | |||
Cost of revenue excluding amortization of capitalized software costs and acquired intangible assets | $ 31,034 | $ 26,457 | $ 26,904 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ||
Balance at Mar. 31, 2019 | $ 375,946 | $ 648 | $ 264,908 | $ 111,621 | $ (1,231) | |||
Balance, Shares at Mar. 31, 2019 | 64,838,000 | |||||||
Common stock issued under stock plans, net of shares withheld for taxes | (1,732) | $ 13 | (1,745) | |||||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 1,296,000 | |||||||
Stock-based compensation | 19,694 | 19,694 | ||||||
Other comprehensive income: | ||||||||
Translation adjustments | (912) | (912) | ||||||
Net income | 7,498 | 7,498 | ||||||
Balance at Mar. 31, 2020 | 400,494 | $ 661 | 282,857 | 119,119 | (2,143) | |||
Balance, Shares at Mar. 31, 2020 | 66,134,000 | |||||||
Common stock issued under stock plans, net of shares withheld for taxes | (1,294) | $ 10 | (1,304) | |||||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 935,000 | |||||||
Stock-based compensation | 22,710 | 22,710 | ||||||
Other comprehensive income: | ||||||||
Translation adjustments | 219 | 219 | ||||||
Net income | 9,515 | 9,515 | ||||||
Balance at Mar. 31, 2021 | 431,644 | $ 671 | 304,263 | 128,634 | (1,924) | |||
Balance, Shares at Mar. 31, 2021 | 67,069,000 | |||||||
Common stock issued under stock plans, net of shares withheld for taxes | (877) | $ 21 | (898) | |||||
Common stock issued under stock plans, net of shares withheld for taxes, Shares | 2,176,000 | |||||||
Stock-based compensation | 26,552 | 26,552 | ||||||
Repurchase of common stock | [1] | $ (35,874) | $ (35,874) | |||||
Repurchase of common stock, Shares | (2,169,896) | (2,170,000) | [1] | |||||
Other comprehensive income: | ||||||||
Translation adjustments | $ 15 | 15 | ||||||
Net income | 1,618 | 1,618 | ||||||
Balance at Mar. 31, 2022 | $ 423,078 | $ 692 | $ (35,874) | $ 329,917 | $ 130,252 | $ (1,909) | ||
Balance, Shares at Mar. 31, 2022 | 67,075,000 | |||||||
[1] | Weighted-average repurchase price (dollars per share) for the year ended March 31, 2022 was $16.53. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) | 12 Months Ended |
Mar. 31, 2022$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Weighted-average share repurchase price | $ 16.53 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 1,618 | $ 9,515 | $ 7,498 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of capitalized software costs | 23,016 | 20,108 | 17,085 |
Amortization and write-off of debt issuance costs | 508 | 1,026 | 710 |
Amortization of other intangibles | 12,397 | 21,109 | 22,536 |
Change in fair value of contingent consideration | 7 | (1,367) | (950) |
Deferred income taxes | 215 | (8,854) | (5,379) |
Depreciation | 6,902 | 7,997 | 8,172 |
Excess tax deficiency (benefit) from share-based compensation | 643 | 798 | (53) |
Impairment of assets | 3,906 | 5,539 | 12,571 |
Loss on disposal of equipment and improvements | 97 | 12 | 41 |
Non-cash operating lease costs | 5,732 | 6,786 | 8,108 |
Provision for bad debts | 1,915 | 2,834 | 3,367 |
Share-based compensation | 26,552 | 22,710 | 19,694 |
Changes in assets and liabilities, net of amounts acquired: | |||
Accounts receivable | (431) | (369) | 4,937 |
Contract assets | (5,610) | (5,921) | 1,458 |
Accounts payable | (2,329) | 615 | 3,330 |
Contract liabilities | 8,417 | (3,923) | (133) |
Accrued compensation and related benefits | (1,638) | 26,582 | (2,419) |
Income taxes | (5,650) | 1,615 | 2,454 |
Deferred compensation | 610 | 1,320 | (605) |
Operating lease liabilities | (12,734) | (16,736) | (9,684) |
Other assets and liabilities | (10,598) | 7,122 | (7,137) |
Net cash provided by operating activities | 53,545 | 98,518 | 85,601 |
Cash flows from investing activities: | |||
Additions to capitalized software costs | (25,500) | (24,578) | (19,432) |
Additions to equipment and improvements | (2,582) | (3,761) | (7,449) |
Acquisition related working capital adjustment payments | (206) | ||
Payments for acquisitions, net of cash acquired | (71,691) | ||
Proceeds from over-funded corporate-owned life insurance policies | 2,500 | ||
Net cash used in investing activities | (28,082) | (28,545) | (96,072) |
Cash flows from financing activities: | |||
Proceeds from line of credit | 50,000 | 137,000 | |
Repayments on line of credit | (179,000) | (19,000) | |
Payment of debt issuance costs | (1,423) | ||
Proceeds from issuance of shares under employee plans | 5,014 | 3,479 | 2,409 |
Repurchase of common stock | (35,874) | ||
Payment of contingent consideration related to acquisitions | (540) | ||
Payments for taxes related to net share settlement of equity awards | (5,891) | (4,773) | (4,141) |
Net cash provided by (used in) financing activities | (37,291) | (131,717) | 116,268 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (11,828) | (61,744) | 105,797 |
Cash, cash equivalents, and restricted cash at beginning of period | 78,575 | 140,319 | 34,522 |
Cash, cash equivalents, and restricted cash at end of period | 66,747 | 78,575 | 140,319 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 8,774 | 6,206 | 2,599 |
Cash refunds from income taxes | 125 | 155 | 2,728 |
Cash paid for interest | 573 | 2,708 | 1,266 |
Non-cash investing and financing activities: | |||
Cash paid for amounts included in the measurement of operating lease liabilities | 13,766 | 18,651 | 11,527 |
Operating lease assets obtained in exchange for operating lease liabilities | 1,610 | 3,107 | 8,494 |
Accrued purchases of equipment and improvements | $ 76 | $ 242 | $ 173 |
Organization of Business
Organization of Business | 12 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization of Business | 1. Organization of Business Description of Business NextGen Healthcare is a leading provider of innovative, cloud-based, healthcare technology solutions that empower healthcare practices to manage the risk and complexity of delivering care in the United States healthcare system. Our combination of technological breadth, depth, and domain expertise makes us a preferred solution provider and trusted advisor for our clients. In addition to highly configurable core clinical and financial capabilities, our portfolio includes tightly integrated solutions that deliver on ambulatory healthcare imperatives, including consumerism, digitization, risk allocation, regulatory influence, and integrated care and health equity. We serve clients across all 50 states. Over 100,000 providers use NextGen Healthcare solutions to deliver care in nearly every medical specialty in a wide variety of practice models including accountable care organizations (“ACOs”), independent physician associations (“IPAs”), managed service organizations (“MSOs”), Veterans service organizations (“VSOs”), and dental service organizations (“DSOs”). Our clients range from some of the largest and most progressive multi-specialty groups in the country to sole practitioners with a wide variety of business models. With the addition of behavioral health to our medical and oral health capabilities, we continue to extend our share not only in federally qualified health centers (“FQHCs”) but also in the growing integrated care market. Our company was incorporated in California in 1974. Previously named Quality Systems, Inc., we changed our corporate name to NextGen Healthcare, Inc. in September 2018, and in 2021, we changed our state of incorporation to Delaware. Our principal executive offices are located at 3525 Piedmont Rd., NE, Building 6, Suite 700, Atlanta, Georgia. Our principal website is www.nextgen.com. We operate on a fiscal year ending on March 31. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation. The consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “NextGen Healthcare,” “NextGen,” “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. Business Segments. We operated as one segment for the years ended March 31, 2022 and 2021. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. Basis of Presentation. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. Use of Estimates. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and recording revenue and expenses during the period. Our estimates and assumptions consider the potential economic implications of COVID-19 on our critical and significant accounting estimates. Revenue Recognition . Refer to Note 3, "Revenue from Contracts with Customers" for additional information regarding our revenue recognition policies. Cash and Cash Equivalents. Cash and cash equivalents consist primarily of cash and money market funds with original maturities of less than 90 days. At March 31, 2022 and March 31, 2021, we had cash and cash equivalents of $59,829 and $73,295, respectively. We also had cash deposits held at United States banks and financial institutions at March 31, 2022 of which $73,284 was in excess of the Federal Deposit Insurance Corporation insurance limit of $250 per owner. Our cash deposits are exposed to credit loss for amounts in excess of insured limits in the event of nonperformance by the institutions; however, we do not anticipate nonperformance by these institutions. Money market funds in which we hold a portion of our excess cash are invested in very high grade commercial and governmental instruments, and therefore bear low market risk. Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents consist of cash that is being held by the Company acting as an agent for the disbursement of certain state social and care services programs. We record an offsetting liability when we initially receive such cash from the programs. We relieve both restricted cash and cash equivalents and the related liability when amounts are disbursed. We earn an administrative fee based on a percentage of the funds disbursed on behalf of the government social and care service programs. Reserves on Accounts Receivable. We maintain reserves for estimated potential sales returns and allowances for credit losses on our accounts receivable. Accounts receivable are reported net of an allowance for credit losses on our consolidated balance sheets. Our standard contracts generally do not contain provisions for clients to return products or services. However, we historically have accepted sales returns under limited circumstances. We estimate expected sales returns and other forms of variable consideration considering our customary business practice and contract-specific facts and circumstances, and we consider such estimated potential returns as variable consideration when allocating the transaction price to the extent it is probable that there will not be a significant reversal of cumulative revenue recognized. We adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on April 1, 2020 Allowance for credit losses are reserves related to estimated losses resulting from our clients’ inability to make required payments are established based on our assessment of the collectability of client accounts, including review of our historical experience of bad debt expense and the aging of our accounts receivable balances, net of specifically reserved accounts and amounts billed prior to revenue recognition. Specific reserves are based on our estimate of the probability of collection for certain accounts. As part of our assessment of the adequacy of the allowance for credit losses, we consider a number of factors including, but not limited to, historical credit loss experience and adjustments for certain asset-specific risk characteristics, such as bankruptcy filings, internal assessments of client credit quality, age of the client receivable balances, review of major third-party credit-rating agencies, and evaluation of external factors such as economic conditions, including the potential impacts of the COVID-19 pandemic, that may affect a client’s ability to pay, or other client-specific factors. Accounts are written off as uncollectible only after we have expended extensive collection efforts. Refer to Note 4, “Accounts Receivable” for additional information. Leases. We adopted ASU 2016-02, Leases (Topic 842) , and its subsequent amendments (together “ASC 842”) using the cumulative-effect adjustment transition method, which is the additional transition method described within ASU 2018-11, Leases (Topic 842): Targeted Improvements , issued by the FASB in July 2018, which allowed us to apply the new lease standard as of April 1, 2019. Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. We determine whether an arrangement is a lease at inception and classify it as finance or operating. All of our existing material leases are classified as operating leases. Our leases do not contain any residual value guarantees. Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. We have certain insignificant short-term leases with an initial term of twelve months or less that are not recorded in our consolidated balance sheets. Operating right-of-use lease assets are classified as operating lease assets on our consolidated balance sheets. Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We have applied the practical expedient to combine fixed payments for non-lease components with our lease payments for all of our leases and account for them together as a single lease component, which increases the amount of our lease assets and corresponding liabilities. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Operating lease costs are recognized on a straight-line basis over the lease term and included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. Refer to Note 6, "Leases" for additional information. Equipment and Improvements. Equipment and improvements are stated at cost less accumulated depreciation and amortization. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation and amortization of equipment and improvements are recorded over the estimated useful lives of the assets, or the related lease terms if shorter, by the straight-line method. Useful lives generally have the following ranges: • Computer equipment and software - 3 to 5 years • Furniture and fixtures - 3 to 7 years • Leasehold improvements - lesser of lease term or estimated useful life of asset Depreciation expense related to our equipment and improvements was $6,902 Capitalized Software Costs. Software development costs, consisting primarily of employee salaries and benefits and certain third party costs, incurred in the development of new software solutions and enhancements to existing software solutions for external sale are expensed as incurred, and reported as net research and development costs in the consolidated statements of net income and comprehensive income, until technological feasibility has been established. After technological feasibility is established, the incremental software development costs are capitalized until general release occurs. Amortization of capitalized software begins upon general release and is recorded on a straight-line basis over the estimated economic life of the related product, which is typically three years. The total of capitalized software costs incurred in the development of products for external sale are reported as capitalized software costs within our consolidated balance sheets. We also incur costs related to the development of software applications for our internal-use and for the development of software-as-a-service ("SaaS") based solutions sold to our clients. The development costs of our SaaS-based solutions are considered internal-use for accounting purposes. Our internal-use capitalized development costs are stated at cost and amortized on a straight-line basis over the estimated useful lives of the assets, which is typically three years. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs related to the preliminary project stage and post-implementation activities are expensed as incurred. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized software costs for the development of SaaS-based solutions are reported as capitalized software costs within our consolidated balance sheets and capitalized software costs for the development of our internal-use software applications are reported as equipment and improvements within our consolidated balance sheets. We periodically reassess the estimated economic life and the recoverability of our capitalized software costs. If we determine that capitalized amounts are not recoverable based on the expected net cash flows to be generated from sales of the applicable software solutions, the amount by which the unamortized capitalized costs exceed the net realizable value is written off as a charge to earnings. The net realizable value is estimated as the expected future gross revenues from that product reduced by the estimated future costs of completing and disposing of that product, including the costs of performing maintenance and client support required to satisfy our responsibility at the time of sale. In addition to the assessment of net realizable value, we review and adjust the remaining estimated lives of our capitalized software costs, if necessary. We also perform a periodic review of our software solutions and dispose of fully amortized capitalized software costs after such products are determined to no longer be used by our clients. Business Combinations. In accordance with the accounting for business combinations, we allocate the purchase price of the acquired business to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent our best estimate of fair value. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type and nature of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. The purchase price allocation methodology contains uncertainties as it requires us make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities, including, but not limited to, intangible assets, goodwill, deferred revenue, and contingent consideration liabilities. We estimate the fair value of the contingent consideration liabilities based on our projection of expected results, as needed. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. Any adjustments to fair value subsequent to the measurement period are reflected in the consolidated statements of net income and comprehensive income. Goodwill. Goodwill acquired in a business combination is measured as the excess of the purchase price, or consideration transferred, over the net acquisition date fair values of the assets acquired and the liabilities assumed. Goodwill is not amortized as it has been determined to have an indefinite useful life. We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). We operate as one segment and have a single reporting unit. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. As part of our annual goodwill impairment test, we may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount. We assess events or changes in circumstances in totality, including macroeconomic and industry conditions, market and competitive environment, changes in customers or customer mix, cost factors, loss of key personnel, significant changes in legislative environment or other legal factors, changes in the use of our acquired assets, changes in our strategic direction, significant changes in projected future results of operations, changes in the composition or carrying amount of our net assets, and changes in our stock price. Based on our assessment, if we conclude that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then additional impairment testing is not required. Otherwise, if we determine that a quantitative impairment test should be performed, we then evaluate goodwill for impairment by comparing the estimated fair value of the reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. Intangible Assets. Intangible assets consist of trade names, customer relationships, and software technology, all of which are associated with our prior acquisitions. The intangible assets are recorded at fair value and are reported net of accumulated amortization. We currently amortize the intangible assets over periods ranging from 5 to 10 years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed. We assess the recoverability of intangible assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. Impairment is deemed to have occurred if the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, and a loss is recognized to reduce the carrying value of the intangible assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our intangible assets and record adjustments, if deemed necessary. Long-Lived Assets. We assess our long-lived assets for potential impairment periodically or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If necessary, recoverability of the assets is evaluated based on the future undiscounted cash flows expected to result from the use of the related assets compared to the carrying value of such assets. If impairment is deemed to have occurred, a loss is recognized to reduce the carrying value of the long-lived assets to fair value, which is determined by discounting the estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our long-lived assets and record adjustments, if deemed necessary. Income Taxes. Income taxes are estimated based on current taxable income and the future tax consequences of temporary differences between the basis of assets and liabilities for financial and tax reporting. The deferred income tax assets and liabilities represent the future state and federal tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future income taxes. At each reporting period, we assess the realizable value of deferred tax assets based on, among other things, estimates of future taxable income and adjust the related valuation allowance as necessary. We make a number of assumptions and estimates in determining the appropriate amount of expense to record for income taxes. The assumptions and estimates consider the taxing jurisdiction in which we operate as well as current tax regulations. We also evaluate our uncertain tax positions and only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest benefit that has a greater than 50 percentage likelihood of being realized upon settlement. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Advertising Costs. Advertising costs are expensed as incurred. We do not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $6,780, $3,902, and $6,044 for the years ended March 31, 2022, 2021, and 2020, respectively, and were included in selling, general and administrative expenses in the accompanying consolidated statements of net income and comprehensive income. Earnings per Share. We provide a dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. Fiscal Year Ended March 31, 2022 2021 2020 Earnings per share — Basic: Net income $ 1,618 $ 9,515 $ 7,498 Weighted-average shares outstanding — Basic 67,370 66,739 65,474 Net income per common share — Basic $ 0.02 $ 0.14 $ 0.11 Earnings per share — Diluted: Net income $ 1,618 $ 9,515 $ 7,498 Weighted-average shares outstanding 67,370 66,739 65,474 Effect of potentially dilutive securities 418 146 138 Weighted-average shares outstanding — Diluted 67,788 66,885 65,612 Net income per common share — Diluted $ 0.02 $ 0.14 $ 0.11 The computation of diluted net income per share does not include 194, 1,949 and 1,807 options for the years ended March 31, 2022, 2021, and 2020, respectively, because their inclusion would have an anti-dilutive effect on net income per share. Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The adoption of ASU 2019-12 on April 1, 2021 did not have a material impact on our consolidated financial statements. 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 consolidated financial statements In October 2021, the FASB issued ASU 2021-08 , Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”) Revenue from Contracts with Customers (Topic 606) We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contract with Customer | 3. 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 data services, and other non-recurring services, including implementation, training, and consulting services. Our contracts with customers may include multiple performance obligations that consist of various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation within a contract based on estimated standalone selling prices. We generally determine standalone selling prices based on the prices charged to customers, except for certain software licenses that are based on the residual approach because their standalone selling prices are highly variable and certain maintenance customers that are based on substantive renewal rates. In instances where standalone selling price is not sufficiently observable, such as RCM services and software licenses included in our RCM arrangements, we estimate standalone selling price utilizing an expected cost plus a margin approach. When standalone selling prices are not observable, significant judgment is required in estimating the standalone selling price for each performance obligation. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We exclude sales tax from the measurement of the transaction price and record revenue net of taxes collected from customers and subsequently remitted to governmental authorities. The following table presents our revenues disaggregated by our major revenue categories and by occurrence: Fiscal Year Ended March 31, 2022 2021 2020 Recurring revenues: Subscription services $ 162,636 $ 148,403 $ 127,602 Support and maintenance 155,623 152,956 158,619 Managed services 116,722 103,138 104,549 Electronic data interchange and data services 104,732 98,322 98,543 Total recurring revenues 539,713 502,819 489,313 Software, hardware, and other non-recurring revenues: Software license and hardware 31,347 28,825 27,270 Other non-recurring services 25,290 25,177 23,656 Total software, hardware and other non-recurring revenues 56,637 54,002 50,926 Total revenues $ 596,350 $ 556,821 $ 540,239 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 data services and other transaction processing services are satisfied at the point in time the services are rendered or delivered. The transfer of control occurs when the data services and 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 March 31, 2022, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $608,400 of which we expect to recognize approximately 10% as services are rendered or goods are delivered , 51% As of March 31, 2021, the aggregate amount of transaction price related to remaining unsatisfied or partially unsatisfied performance obligations over the respective noncancelable contract term was approximately $548,800, of which we expect to recognize approximately 9% as services are rendered or goods are delivered, 53% over the next 12 months, and the remainder thereafter. Contract Balances Contract balances result from the timing differences between our revenue recognition, invoicing, and cash collections. Such contract balances include accounts receivables, contract assets and liabilities, and other customer deposits and liabilities balances. Accounts receivables include invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Contract assets, consisting of unbilled receivables, include amounts where revenue recognized exceeds the amount invoiced to the customer and the right to payment is not solely subject to the passage of time. Contract assets are generally associated with our sales of software licenses, but may also be associated with other performance obligations such as subscription services, support and maintenance, annual libraries, and professional services, where control has been transferred to our customers but the associated payments are based on future customer collections (in the case of our RCM service arrangements) or based on future milestone payment due dates. In such instances, the revenue recognized may exceed the amount invoiced to the customer and such balances are included in contract assets since our right to receive payment is not unconditional, but rather is conditional upon customer collections or the continued functionality of the software and our ongoing support and maintenance obligations. Contract liabilities consist mainly of fees invoiced or paid by our clients for which the associated services have not been performed and revenues have not been recognized. Contract assets and contract liabilities are reported in a net position on an individual contract basis at the end of each reporting period. Contract assets are classified as current or long-term on our consolidated balance sheets based on the timing of when we expect to complete the related performance obligations and invoice the customer. Contract liabilities are classified as current on our consolidated balance sheets since the revenue recognition associated with the related customer payments and invoicing is expected to occur within the next twelve months. During the years ended March 31, 2022 and 2021, we recognized $69,062 and $74,097, 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 $33,352 as of March 31, 2022, of which $11,698 is classified as current and included as prepaid expenses and other current assets and $21,654 is classified as long-term and included within other assets on our consolidated balance sheets, based on the expected timing of expense recognition. Capitalized commissions costs were $28,503 as of March 31, 2021, of which $9,399 was classified as current and $19,104 was classified as long-term. During the years ended March 31, 2022, 2021, and 2020, we recognized $12,044, $11,236, and $8,006, respectively, of commissions expense. Commissions expense primarily relates to the amortization of capitalized commissions costs, which is included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable Accounts receivable includes invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Allowance for credit losses are reported as a component of accounts receivable as summarized below: March 31, 2022 March 31, 2021 Accounts receivable, gross $ 79,945 $ 81,746 Allowance for credit losses (3,888 ) (4,205 ) Accounts receivable, net $ 76,057 $ 77,541 The following table represents the changes in the allowance for credit losses, as of and for the twelve months ended March 31, 2022 and 2021: Balance as of March 31, 2020 $ (3,549 ) Additions charged to costs and expenses (2,834 ) Deductions 2,178 Balance as of March 31, 2021 $ (4,205 ) Additions charged to costs and expenses (1,915 ) Deductions 2,232 Balance as of March 31, 2022 $ (3,888 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 March 31, 2022 and March 31, 2021: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2022 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 59,829 $ 59,829 $ — $ — Restricted cash and cash equivalents 6,918 6,918 — — $ 66,747 $ 66,747 $ — $ — 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. During the year ended March 31, 2021, we recorded a net benefit of $1,367 from fair value adjustments, which was related to the contingent consideration liability from the acquisition of Topaz Information Systems, LLC (“Topaz”). As of March 31, 2021, the fair value of the contingent consideration liability was $533, calculated based on actual earnout achievement through the end of the performance period and was reflected under a Level 2 valuation hierarchy because the fair value was determined based on other significant observable inputs. The following table presents activity in our financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the year ended March 31, 2021. Balance at March 31, 2020 $ 1,900 Fair value adjustments (1,367 ) Transfer of Topaz contingent consideration to Level 2 (533 ) Balance at March 31, 2021 $ — During the year ended March 31, 2022, we recorded a fair value adjustment of $7 for the contingent consideration liability The following table presents activity in our financial assets and liabilities measured at fair value using significant other observable inputs (Level 2) as of and for the year ended March 31, 2022: Balance at March 31, 2021 $ 533 Fair value adjustments 7 Payment of Topaz contingent consideration (540 ) Balance at March 31, 2022 $ — The categorization of the framework used to measure fair value of the contingent consideration liabilities were considered to be within the Level 3 valuation hierarchy due to the subjective nature of the unobservable inputs used. We had assessed the fair value of the contingent consideration liability on a recurring basis and any adjustments to fair value subsequent to the measurement period were reflected in the consolidated statements of net income and comprehensive income. Key assumptions included probability-adjusted achievement estimates of applicable bookings targets that were not observable in the market. The fair value adjustments to contingent consideration liabilities are included as a component of selling, general and administrative expense in the consolidated statements of net income and comprehensive income. 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 | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 6. Leases We have operating lease agreements for our offices in the United States and India with lease periods expiring between 2022 and 2026. Total operating lease costs were $6,549, $9,190, and $10,309 for the years ended March 31, 2022, 2021, and 2020, respectively. Components of operating lease costs are summarized as follows: Twelve Months Ended March 31, 2022 2021 Operating lease costs $ 6,328 $ 8,235 Short-term lease costs 8 25 Variable lease costs 774 1,444 Less: Sublease income (561 ) (514 ) Total operating lease costs $ 6,549 $ 9,190 Supplemental cash flow information related to operating leases is summarized as follows: Twelve Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 13,766 $ 18,651 Operating lease assets obtained in exchange for operating lease liabilities 1,610 3,107 As of March 31, 2022, our operating leases had a weighted average remaining lease term of 2.7 years and a weighted average discount rate of 3.7%. Future minimum aggregate lease payments under operating leases as of March 31, 2022 are summarized as follows: For the year ended March 31, 2023 $ 8,815 2024 6,886 2025 4,388 2026 1,257 Total future lease payments 21,346 Less interest (1,323 ) Total lease liabilities $ 20,023 During the year ended March 31, 2022, we vacated portions of certain leased locations and recorded impairments of $3,906 to our right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in Irvine, Horsham, Atlanta, Fairport, Hunt Valley, Bangalore, and St. Louis based on projected sublease rental income and estimated sublease commencement dates. The impairment analyses were performed at the asset group level and the impairment charges were estimated by comparing the fair value of each asset group based on the expected cash flows to its respective book value. We determined the discount rate for each asset group based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the impairment date. Significant judgment was required to estimate the fair value of each asset group and actual results could vary from the estimates, resulting in potential future adjustments to amounts previously recorded. During the year ended March 31, 2021, as part of our response to the COVID-19 pandemic and ongoing cost reduction efforts, we vacated our Cary office, portions of our Irvine and Horsham offices, and the remainder of our San Diego office. We recorded impairments of $5,539 to our operating right-of-use assets and certain related fixed assets associated with the vacated locations based on projected sublease rental income and estimated sublease commencement dates and the remeasurement of our operating lease liabilities associated with the modification of certain lease expiration dates. During the year ended March 31, 2020, we recorded impairments of $9,373 to our operating right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in North Canton, San Diego, Horsham, St. Louis, Irvine, Atlanta, Brentwood, and Phoenix, based on projected sublease rental income and estimated sublease commencement dates. |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 7. 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 also did not identify any events or circumstances that would require an interim goodwill impairment test. The carrying amount of goodwill as of March 31, 2022 and 2021 were both $267,212. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: March 31, 2022 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 49,000 $ 88,450 Accumulated amortization (29,824 ) (116 ) (34,207 ) (64,147 ) Net intangible assets $ 9,376 $ 134 $ 14,793 $ 24,303 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 consolidated statements of net income and comprehensive income was $3,525, $4,449, and $4,143 for the years ended March 31, 2022, 2021 and 2020, respectively. Amortization expense related to software technology recorded as cost of revenue was $8,872, $16,660, and $18,393 for the years ended March 31, 2022, 2021, and 2020, respectively. The following table summarizes the remaining estimated amortization of definite-lived intangible assets as of March 31, 2022: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 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 631 242 873 2028 and beyond 557 — 557 Total $ 9,510 $ 14,793 $ 24,303 |
Capitalized Software Costs
Capitalized Software Costs | 12 Months Ended |
Mar. 31, 2022 | |
Research And Development [Abstract] | |
Capitalized Software Costs | 9. Capitalized Software Costs Our capitalized software costs are summarized as follows: March 31, 2022 March 31, 2021 Gross carrying amount $ 110,155 $ 96,908 Accumulated amortization (66,197 ) (55,434 ) Net capitalized software costs $ 43,958 $ 41,474 During the year ended March 31, 2020, we recorded $3,198 of impairments related to the write down of previously capitalized software development costs for certain technology that will no longer be utilized in any future software solutions. Amortization expense related to capitalized software costs was $23,016, $20,108, and $17,085 for the years ended March 31, 2022, 2021, and 2020, respectively, and is recorded as cost of revenue in the consolidated statements of net income and comprehensive income. The following table presents the remaining estimated amortization of capitalized software costs as of March 31, 2022. 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, 2023 $ 24,000 2024 12,300 2025 5,600 2026 2,058 Total $ 43,958 |
Line of Credit
Line of Credit | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Line of Credit | 10. 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 revolving loans under the Credit Agreement bear interest at either, at our option, (a) for base rate loans, a base rate based on the highest of (i) 1%, (ii) the “prime rate” quoted in the Wall Street Journal for the United States of America, (iii) the overnight bank funding rate (not to be less than zero) as determined by the Federal Reserve Bank of New York plus 0.50% or (iv) the LIBOR-based rate for one month Eurodollar deposits plus 1%, and (b) for Eurodollar loans, the LIBOR-based rate for one, two, three or six months (as selected by us) Eurodollar deposits plus, in each case, an applicable margin based on our net leverage ratio from time to time, ranging from 0.50% to 1.75% for base rate loans, and from 1.50% to 2.75% for Eurodollar loans. The revolving loans are subject to customary representations, warranties and ongoing affirmative and negative covenants and agreements. The negative covenants include, among other things, limitations on indebtedness, liens, asset sales, mergers and acquisitions, investments, transactions with affiliates, dividends and other restricted payments, payment of subordinated indebtedness and convertible debt and amendments to subordinated indebtedness documents and sale and leaseback transactions of ours or any of our subsidiaries. The Credit Agreement also requires us to maintain (1) a maximum net leverage ratio of 3.75 to 1.00 and (2) a minimum interest coverage ratio of 3.50 to 1.00 at the end of each fiscal quarter through the term of the loan. The revolving loans under the Credit Agreement will be available for letters of credit, permitted acquisitions, working capital and general corporate purposes. We were in compliance with all financial and non-financial covenants under the Credit Agreement as of March 31, 2022. As of March 31, 2022 and 2021, we had no outstanding loans and $300,000 of unused credit under the Credit Agreement. During the years ended March 31, 2022, 2021, and 2020, we recorded $791, $2,541, and $1,274 of interest expense (excluding amortization of deferred debt issuance costs) Costs incurred in connection with securing the Credit Agreement, including fees paid to legal advisors and third parties, are deferred and amortized to interest expense over the term of the Credit Agreement. Deferred debt issuance costs are reported as a component of other assets on the consolidated balance sheets. As of March 31, 2022, total unamortized debt issuance costs were $2,006. As of March 31, 2021, total unamortized debt issuance costs were $2,521, which includes $1,423 of additional costs related to the Credit Agreement, and net of $326 unamortized debt issuance costs that were written off in connection with amending the Original Credit Agreement. During the years ended March 31, 2022, 2021, and 2020, we recorded $508, $1,026, and $710, respectively, in amortization of deferred debt issuance costs, including amounts written off for the year ended March 31, 2021. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | 11. Composition of Certain Financial Statement Captions Cash, cash equivalents, and restricted cash are summarized as follows: March 31, 2022 March 31, 2021 Cash and cash equivalents $ 59,829 $ 73,295 Restricted cash and cash equivalents 6,918 5,280 Cash, cash equivalents, and restricted cash $ 66,747 $ 78,575 Prepaid expenses and other current assets are summarized as follows: March 31, 2022 March 31, 2021 Prepaid expenses $ 24,229 $ 20,679 Capitalized commissions costs 11,698 9,399 Other current assets 1,175 1,204 Prepaid expenses and other current assets $ 37,102 $ 31,282 Equipment and improvements are summarized as follows: March 31, 2022 March 31, 2021 Computer equipment $ 36,293 $ 35,244 Internal-use software 19,001 18,174 Leasehold improvements 13,227 14,418 Furniture and fixtures 9,579 11,555 Equipment and improvements, gross 78,100 79,391 Accumulated depreciation and amortization (68,980 ) (64,852 ) Equipment and improvements, net $ 9,120 $ 14,539 Other assets are summarized as follows: March 31, 2022 March 31, 2021 Capitalized commission costs $ 21,654 $ 19,104 Deposits 5,793 5,505 Debt issuance costs 2,006 2,521 Other noncurrent assets 9,573 9,891 Other assets $ 39,026 $ 37,021 Accrued compensation and related benefits are summarized as follows: March 31, 2022 March 31, 2021 Accrued bonus $ 27,311 $ 29,382 Accrued vacation 11,785 12,038 Accrued commissions 5,353 4,628 Deferred payroll taxes 3,817 3,817 Accrued payroll and other 470 509 Accrued compensation and related benefits $ 48,736 $ 50,374 Other current and noncurrent liabilities are summarized as follows: March 31, 2022 March 31, 2021 Accrued hosting costs $ 12,510 $ 6,158 Care services liabilities 6,918 5,280 Sales returns reserves and other customer liabilities 5,725 9,449 Accrued consulting and outside services 4,799 3,002 Customer credit balances and deposits 4,622 4,638 Accrued royalties 3,557 3,125 Accrued employee benefits and withholdings 3,535 4,649 Accrued outsourcing costs 2,264 2,266 Accrued self insurance expense 2,208 1,737 Accrued EDI expense 2,168 2,020 Accrued legal expense 1,439 6,302 Accrued taxes payable 540 586 Contingent consideration related to acquisitions — 533 Other accrued expenses 3,248 2,954 Other current liabilities $ 53,533 $ 52,699 Uncertain tax positions 4,196 3,175 Other liabilities 374 144 Deferred payroll taxes — 3,817 Other noncurrent liabilities $ 4,570 $ 7,136 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The provision for (benefit of) income taxes consists of the following components: Fiscal Year Ended March 31, 2022 2021 2020 Current: Federal taxes $ 1,090 $ 6,562 $ 408 State taxes 1,081 1,226 858 Foreign taxes 1,192 826 874 Total current taxes 3,363 8,614 2,140 Deferred: Federal taxes $ 43 $ (6,053 ) $ (3,578 ) State taxes (379 ) (2,068 ) (1,682 ) Foreign taxes 551 (733 ) (119 ) Total deferred taxes 215 (8,854 ) (5,379 ) Provision for (benefit of) income taxes $ 3,578 $ (240 ) $ (3,239 ) The provision for (benefit of) income taxes differs from the amount computed at the federal statutory rate as follows: Fiscal Year Ended March 31, 2022 2021 2020 Tax expense at United States federal statutory rate (1) $ 1,091 $ 1,948 $ 895 Items affecting federal income tax rate: Executive compensation limitation 2,068 775 260 Impact of uncertain tax positions 1,620 278 1,062 Share-based compensation 1,059 865 125 State income taxes 950 572 687 Impact of foreign operations 356 (1,203 ) (683 ) Impact of amended returns 163 (9 ) 67 Impact of deferred adjustments 88 (251 ) 159 Impact of audit settlements — (56 ) (61 ) Acquisition expenses — — 229 Non-deductible expenses (27 ) (258 ) 643 Return to provision true-ups (152 ) (15 ) (1,868 ) Impact of valuation allowance (882 ) 563 (49 ) Research and development tax credits (2,756 ) (3,449 ) (4,705 ) Provision for (benefit of) income taxes $ 3,578 $ (240 ) $ (3,239 ) (1 ) 21.0% The net deferred tax assets and liabilities in the accompanying consolidated balance sheets consist of the following: March 31, 2022 March 31, 2021 Deferred tax assets: Compensation and benefits $ 17,494 $ 19,541 Deferred revenue 9,245 8,325 Research and development credit 7,165 7,706 Net operating losses 6,018 7,652 Operating lease liabilities 3,774 6,204 Foreign deferred taxes 1,755 2,306 Allowance for credit losses 1,658 1,819 Accounts receivable 511 — Accrued legal settlement — 905 Total deferred tax assets 47,620 54,458 Deferred tax liabilities: Prepaid expense $ (10,895 ) $ (9,396 ) Intangibles assets (8,703 ) (9,451 ) Operating right-of-use assets (1,713 ) (3,003 ) Capitalized software (647 ) (4,659 ) Accelerated depreciation (640 ) (1,339 ) Other (630 ) (611 ) Accounts receivable — (510 ) Total deferred tax liabilities (23,228 ) (28,969 ) Valuation allowance (5,133 ) (6,015 ) Deferred tax assets, net $ 19,259 $ 19,474 The deferred tax assets and liabilities have been shown net in the accompanying consolidated balance sheets as noncurrent. As of March 31, 2022 and 2021, we had federal net operating loss (“NOL”) carryforwards of $10,801 and $18,748, respectively. The federal NOL carryforwards were inherited in connection with our acquisitions of HealthFusion in January 2016, Gennius in March 2015, Entrada in April 2017, EagleDream in August 2017, and Medfusion in December 2019. The NOL carryforwards expire in various amounts starting in fiscal 2030 for both federal and state tax purposes. As of March 31, 2022, we had state NOL carryforwards of approximately $3,750 (tax effected), related to the HealthFusion, Entrada, EagleDream, and Medfusion acquisitions. The utilization of the federal NOL carryforwards is subject to limitations under the rules regarding changes in stock ownership as determined by the Internal Revenue Code. As of March 31, 2022 and 2021, the research and development tax credit carryforward available to offset future federal and state taxes was $8,155 and $8,574, respectively. The federal credits include credits inherited in connection with our acquisition of Medfusion in December 2019. The credits expire in various amounts starting in fiscal 2034. We expect to receive the full benefit of the deferred tax assets recorded with the exception of certain foreign and state credits and state NOL carryforwards for which we have recorded a valuation allowance. Notwithstanding the U.S. taxation of the deemed repatriated foreign earnings as a result of the one-time Transition Tax, we intend to continue investing these earnings indefinitely outside of the U.S. If we determine that all or a portion of our foreign earnings are no longer to be indefinitely reinvested, we may be subject to additional foreign withholding taxes and state income taxes in the U.S. beyond the Tax Reform’s one-time Transition Tax. In the event that we distribute the foreign earnings to the U.S., we will incur and record foreign withholding related taxes and U.S. state taxes of approximately $4,217 and $714, respectively. The Taxation Laws (Amendment) Act, 2019 was enacted on December 12, 2019 to lower corporate tax rates in India. We opted not to elect for the reduced tax rate for various factors for the year ended March 31, 2022 and 2021. Uncertain tax positions A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities and deferred income taxes, net in our consolidated balance sheet, is as follows: Balance as of March 31, 2020 $ 4,192 Additions for prior year tax positions 220 Additions for current year tax positions 635 Reductions for prior year tax positions (621 ) Balance as of March 31, 2021 4,426 Additions for prior year tax positions 1,184 Additions for current year tax positions 763 Reductions for prior year tax positions (261 ) Balance as of March 31, 2022 $ 6,112 During the year ended March 31, 2022, we recorded additional net liabilities of $1,686 related to various federal, foreign, and state tax planning benefits recorded in the current year for current and prior year tax positions. If recognized, the total amount of unrecognized tax benefit that would decrease the income tax provision is $6,112. Our practice is to recognize interest related to income tax matters as interest expense in the consolidated statements of net income and comprehensive income. We had approximately $286 and $88 of accrued interest related to income tax matters as of March 31, 2022 and 2021, respectively. We recognized interest expense of $199, interest income of $85, and interest income of $35 in the years ended March 31, 2022, 2021 and 2020, respectively, related to income tax matters in the consolidated statements of net income and comprehensive income. No penalties related to income tax matters were accrued or recognized in our consolidated financial statements for all periods presented. We are subject to taxation in federal, various state, Indian, and United Kingdom jurisdictions. We are no longer subject to U.S. federal income tax examinations or other foreign tax authorities for tax years before fiscal year ended 2018. With a few exceptions, we are no longer subject to state or local income tax examinations for tax years before fiscal year ended 2017. We do not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 13. Employee Benefit Plans We provide a 401(k) plan to substantially all of our employees. Participating employees may defer up to the Internal Revenue Service limit per year based on the Internal Revenue Code. The annual contribution is determined by a formula set by our Board of Directors ("Board") and may include matching and/or discretionary contributions. The amount of the Company match is discretionary and subject to change. The retirement plans may be amended or discontinued at the discretion of the Board. Net contributions of $6,922, $4,625 and $4,658 were made by the Company to the 401(k) plan for the years ended March 31, 2022, 2021, and 2020, respectively. Net contributions for the year ended March 31, 2022 reflect an additional discretionary Company contribution made to eligible employees. We have a deferred compensation plan (the “Deferral Plan”) for the benefit of those employees who qualify. Participating employees may defer up to 75% of their salary and 100% of their annual bonus for a Deferral Plan year. In addition, we may, but are not required to, make contributions into the Deferral Plan on behalf of participating employees, and the amount of the Company match is discretionary and subject to change. Each employee's deferrals together with earnings thereon are accrued as part of our long-term liabilities. Investment decisions are made by each participating employee from a family of mutual funds. The deferred compensation liability was $7,230 and $6,620 at March 31, 2022 and 2021, respectively. To offset this liability, we have purchased life insurance policies on some of the participants. The Company is the owner and beneficiary of the policies and the cash values are intended to produce cash needed to help make the benefit payments to employees when they retire or otherwise leave the Company. We intend to hold the life insurance policy until the death of the plan participant. The cash surrender value of the life insurance policies for deferred compensation was $8,098 and $8,126 at March 31, 2022 and 2021, respectively. The values of the life insurance policies and our related obligations are included on the accompanying consolidated balance sheets in long-term other assets and long-term deferred compensation, respectively. We made contributions of $ 116 , $ 79 and $ 74 to the Deferral Plan for the years ended March 31, 2022, 2021, and 2020 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 14. Stockholders’ Equity Equity Incentive Plans In October 2005, our shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that our employees and directors may, at the discretion of the Board of Directors (“Board”) or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the 2005 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the 2005 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the 2005 Plan, awards under the 2005 Plan will fully vest under certain circumstances. The 2005 Plan expired on May 25, 2015. As of March 31, 2022, there were 44,200 outstanding options under the 2005 Plan. In August 2015, our shareholders approved a stock option and incentive plan (the “2015 Plan”) under which 11,500,000 shares of common stock were reserved for the issuance of awards, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance stock awards and other share-based awards. In August 2017, our shareholders approved an amendment to the 2015 Plan, to, among other items, increase the number of shares of common stock reserved for issuance thereunder by 6,000,000 shares, which was further amended in August 2019 as approved by our shareholders, to, among other items, increase the number of shares of common stock reserved for issuance thereunder by an additional 3,575,000 shares. In October 2021, our shareholders approved an amendment and restatement of the Company’s 2015 Equity Incentive Plan (the “Amended 2015 Plan”), to, among other items, increase the number of common stock reserved for issuance thereunder by an additional 1,850,000 shares. The Amended 2015 Plan provides that our employees and directors may, at the discretion of the Board or a duly designated compensation committee, be granted certain share-based awards. In the case of option awards granted under the Amended 2015 Plan, the exercise price of each option is determined based on the date of grant and expire no later than 10 years from the date of grant. Awards granted pursuant to the Amended 2015 Plan are subject to the vesting schedule or performance metrics set forth in the agreements pursuant to which they are granted. Upon a change of control of our Company, as such term is defined in the Amended 2015 Plan, awards under the Amended 2015 Plan will fully vest under certain circumstances. As of March 31, 2022, there were 1,409,539 outstanding options, 2,205,149 outstanding shares of restricted stock awards, certain outstanding performance stock unit awards as described further below, and 2,399,848 shares available for future grant under the Amended 2015 Plan. In September 2021, the Board adopted the 2021 Employment Inducement Equity Incentive Plan (the “Inducement Plan”) and initially reserved 1,500,000 shares of common stock for issuance under the Inducement Plan. The Inducement Plan was adopted by the Board without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. In accordance with Rule Stock-Based Compensation The following table summarizes total share-based compensation expense included in the consolidated statements of net income and comprehensive income for the fiscal years ended March 31, 2022, 2021 and 2020: Fiscal Year Ended March 31, 2022 2021 2020 Costs and expenses: Cost of revenue $ 2,183 $ 1,991 $ 2,051 Research and development costs 4,508 4,036 3,875 Selling, general and administrative 19,861 16,683 13,768 Total share-based compensation 26,552 22,710 19,694 Income tax benefit (6,221 ) (5,415 ) (4,726 ) Decrease in net income $ 20,331 $ 17,295 $ 14,968 Share-based compensation expense under our equity incentive plans is based on the number awards that ultimately vest and forfeitures are accounted for as they occur. Stock Options The following table summarizes the stock option transactions during the years ended March 31, 2022, 2021, and 2020: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2019 3,166,525 15.36 5.5 $ 7,040 Exercised (55,325 ) 15.87 4.3 $ 138 Forfeited/Canceled (75,450 ) 23.38 1.5 Expired (34,400 ) 43.04 Outstanding, March 31, 2020 3,001,350 $ 14.83 4.7 $ — Exercised (116,916 ) 16.21 3.3 $ 303 Forfeited/Canceled (47,350 ) 18.58 3.7 Expired (46,000 ) 29.17 Outstanding, March 31, 2021 2,791,084 $ 14.47 3.7 $ 10,303 Exercised (1,248,525 ) 13.76 2.7 2,638 Forfeited/Canceled (32,320 ) 19.51 3.0 Expired (56,500 ) 18.85 Outstanding, March 31, 2022 1,453,739 $ 14.80 2.9 $ 8,886 Vested and expected to vest, March 31, 2022 1,445,622 $ 14.79 2.9 $ 8,854 Exercisable, March 31, 2022 1,403,357 $ 14.72 2.8 $ 8,690 Share-based compensation expense related to stock options was $1,251, $2,536, and $3,826 for the years ended March 31, 2022, 2021, and 2020, respectively. There were no stock options granted during the years ended March 31, 2022, 2021 and 2020. Non-vested stock option award activity during the years ended March 31, 2022, 2021, and 2020 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2019 1,845,855 $ 5.52 Vested (745,033 ) 5.29 Forfeited/Canceled (9,150 ) 6.42 Outstanding, March 31, 2020 1,091,672 $ 5.67 Vested (605,433 ) 5.40 Forfeited/Canceled (26,900 ) 6.80 Outstanding, March 31, 2021 459,339 $ 5.96 Vested (391,457 ) 5.74 Forfeited/Canceled (17,500 ) 7.96 Outstanding, March 31, 2022 50,382 $ 6.98 As of March 31, 2022, $83 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-average period of 0.2 years. This amount does not include the cost of new options that may be granted in future periods. The total fair value of options vested during the years ended March 31, 2022, 2021, and 2020 was $2,248, $3,272, and $3,940, respectively. Restricted Stock Awards Restricted stock awards activity during the years ended March 31, 2022, 2021, and 2020 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2019 1,715,958 $ 16.29 Granted 1,529,831 16.93 Vested (764,290 ) 16.05 Canceled (168,719 ) 17.06 Outstanding, March 31, 2020 2,312,780 $ 16.74 Granted 1,222,863 12.04 Vested (1,053,792 ) 16.22 Canceled (218,282 ) 15.30 Outstanding, March 31, 2021 2,263,569 $ 14.58 Granted 2,391,578 15.87 Vested (1,109,520 ) 15.17 Canceled (302,864 ) 14.94 Outstanding, March 31, 2022 3,242,763 $ 15.30 Share-based compensation expense related to restricted stock awards was $20,821, $16,371, and $14,706 for the years ended March 31, 2022, 2021, and 2020, respectively. The weighted-average grant date fair value for the restricted stock awards was estimated using the market price of the common stock on the date of grant. The fair value of the restricted stock awards is amortized on a straight-line basis over the vesting period, which is generally between one to three years. As of March 31, 2022, $35,894 of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of 2.0 years. This amount does not include the cost of new restricted stock awards that may be granted in future periods. The total fair value of restricted stock awards vested as of the vesting dates were $18,156, $14,138 and $12,962 for the years ended March 31, 2022, 2021, and 2020. Net Share Settlements Restricted stock awards are generally net share-settled upon vesting to cover the required withholding taxes, and the remaining share amount is transferred to the employee. The majority of restricted stock awards that vested during the years ended March 31, 2022, 2021 and 2020 were net-share settled such that we withheld shares with value equivalent to the employees’ applicable income tax obligations for the applicable income and other employment taxes and remitted the equivalent amount of cash to the appropriate taxing authorities. Total payments for the employees’ applicable income tax obligations are reflected as a financing activity within the accompanying consolidated statements of cash flows. The total shares withheld during the years ended March 31, 2022, 2021 and 2020 were 356,490, 349,895 and 241,571, respectively, and were based on the value of the restricted stock awards on their vesting date as determined by our closing stock price. These net-share settlements had the effect of share repurchases by us as they reduced the number of shares that would have otherwise been issued at the vesting date. Performance Stock Units and Awards On December 29, 2016, the Compensation Committee of the Board granted 123,082 performance stock awards to certain executive officers, of which no shares are currently outstanding and 102,813 shares were ultimately earned and issued during the performance period. The performance stock awards vested in four equal increments on each of the first four anniversaries of the grant date, subject in each case to the executive officer’s continued service and achievement of certain Company performance goals, including strong stock price performance. Share-based compensation expense related to the performance stock awards was $184 and $246 for the years ended March 31, 2021 and 2020. The total fair value of performance stock awards vested as of the vesting dates were $422 and $368 for the years ended March 31, 2021, and 2020. On October 23, 2018, the Compensation Committee of the Board approved 248,140 performance stock unit awards to be granted to certain executives and non-executive members of the executive leadership team, of which no shares are currently outstanding and no shares were ultimately earned or issued during the performance period. Approximately 34% of the performance stock units were tied to our cumulative 3-year total shareholder return, 33% were tied to our fiscal year 2021 revenue, and 33% were tied to our fiscal year 2021 adjusted earnings per share goals, each as specifically defined in the equity award agreements. The number of shares to be issued was to vary between 50% and 200% of the number of performance stock units depending on performance, and no such shares were to be issued if threshold performance was not achieved. The weighted-average grant date fair value of the awards was $17.84 per share, which was estimated using a Monte Carlo-based valuation model for the awards based on total shareholder return and using a probability-adjusted achievement rate combined with the market price of the common stock on the date of grant for the awards based on revenue and earnings per share targets. Share-based compensation expense related to the performance stock unit awards tied to revenue and adjusted earnings per share goals was not significant. Share-based compensation expense related to the performance stock unit awards tied to total shareholder return was $458 for each of the years ended March 31, 2021 and 2020, respectively. Share-based compensation expense related to the performance stock unit awards tied to total shareholder return was a benefit of $359 for the year ended March 31, 2022 primarily due to cancellation of awards associated with the departure of our former Chief Executive Officer. 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 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. Share-based compensation expense related to the performance stock unit awards was $ and $ 1,187 for the year s ended March 31, 2022 and 2021, respectively . On September 20, 2021, the Compensation Committee of the Board approved an award of 450,000 performance stock units to be granted to our Chief Executive Officer under the Inducement Plan. The award has a grant date of September 22, 2021 and portions of the award vest upon both the attainment of five separate pre-determined stock price milestones during a five-year On October 26, 2021, the Compensation Committee of the Board approved 476,713 performance stock units to be granted to certain members of the executive leadership team. The awards have a grant date of November 2, 2021 and portions of the award vest upon both the attainment of four separate pre-determined stock price milestones through September 22, 2026 and continued service over a period of three years following the grant date. The fair value and derived service period for each share-price milestone tranche was estimated separately using a Monte-Carlo based valuation model. The expense for each share-price milestone tranche is amortized over the longer of the derived service period or the explicit service period. The weighted-average grant date fair value of the award was $13.02 per share. Share-based compensation expense related to the performance stock unit award was $1,476 for the year ended March 31, 2022. As of March 31, 2022, $12,069 of total estimated unrecognized compensation costs related to performance stock units and awards is expected to be recognized over a weighted-average period of 2.2 years. This amount does not include the cost of new performance stock units and awards that may be granted in future periods. Employee Share Purchase Plan On August 11, 2014, our shareholders approved an Employee Share Purchase Plan (the “Purchase Plan”) under which 4,000,000 shares of common stock were reserved for future grant. The Purchase Plan allows eligible employees to purchase shares through payroll deductions of up to 15% of total base salary at a price equal to 90% of the lower of the fair market values of the shares as of the beginning or the end of the corresponding offering period. Any shares purchased under the Purchase Plan are subject to a six-month holding period. Employees are limited to purchasing no more than 1,500 shares on any single purchase date and no more than $25 in total fair market value of shares during any one calendar year. As of March 31, 2022, we have issued 888,961 shares under the Purchase Plan and 3,111,039 shares are available for future issuance. Share-based compensation expense recorded for the employee share purchase plan was $553, $519, and $484 for the years ended March 31, 2022, 2021, and 2020, respectively. Share Repurchase Program In October 2021, the Board authorized a share repurchase program under which we may repurchase up to $60,000 of our outstanding shares of common stock through March 2023. The timing and amount of any share repurchases under the share repurchase program will be determined by our management at its discretion based on ongoing assessments of the capital needs of the business, the market price of our common stock and general market conditions. Share repurchases under the program may be made through a variety of methods, which may include open market purchases, in block trades, accelerated share repurchase transactions, exchange transactions, or any combination of such methods. Repurchases may also be made under Rule 10b5-1 plans, which permit shares of common stock to be repurchased through pre-determined criteria. The program does not obligate the Company to acquire any particular amount of our common stock, and the share repurchase program may be suspended or discontinued at any time at our discretion. During the year ended March 31, 2022, we repurchased 2,169,896 shares of common stock for a total of $35,874 at a weighted-average share repurchase price of approximately $16.53. As of March 31, 2022, $24,126 remained available for share repurchases pursuant to the Company’s share repurchase program. Of the total shares repurchased, 2,000,000 shares were purchased from a shareholder who previously owned 7.4% of our total shares of common stock for an aggregate purchase price of approximately $33,100. The shares repurchased represented approximately 3.0% of our total shares of common stock outstanding at March 31, 2022. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Mar. 31, 2022 | |
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. We have experienced legal claims by clients regarding product and contract disputes, by other third parties asserting that we have infringed their intellectual property rights, by current and former employees regarding certain employment matters and by certain shareholders. We believe that these claims are without merit and intend to defend against them vigorously; however, we could incur substantial costs and diversion of management resources defending any such claim, even if we are ultimately successful in the defense of such matter. Litigation is inherently uncertain and always difficult to predict. Additionally, we are subject to the regulation and oversight of various federal and state governmental agencies that enforce fraud and abuse programs related to the submission of fraudulent claims for reimbursement from governmental payers. We have received, and from time to time may receive, inquiries or subpoenas from federal and state agencies. Under the False Claims Act (“FCA”), private parties have the right to bring qui tam, or “whistleblower,” suits against entities that submit, or cause to be submitted, fraudulent claims for reimbursement. Qui tam or whistleblower actions initiated under the FCA may be pending but placed under seal by the court to comply with the FCA’s requirements for filing such suits. As a result, they could lead to proceedings without our knowledge. We refer you to the discussion of regulatory and litigation risks within “Item 1A. Risk Factors” of our notes to consolidated financial statements included elsewhere in this Report and below for a discussion of current legal proceedings. 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. Hussein filed a Motion for New Trial, which the Court denied. 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. On September 2, 2021, the arbitrator awarded Hussein indemnification for fees and costs incurred defending the cross-complaint. After trebling the fees incurred pursuant to Hussein’s supplemental agreement with his attorneys, and adding in interest and costs, the arbitrator calculated that the Company owes Mr. Hussein $ 11,370 in indemnification, which we subsequently paid on September 30, 2021. 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) our EHR product and its performance, including defects that relate to patient safety or meaningful use certifications, (c) the software code used in certifying our EHR software and information, and (d) marketing programs and payments provided for the referral of EHR business. We continue to respond to the government’s request. 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, which themselves may lead to material fines, penalties or other 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 of the outcome of this matter or the range of reasonably possible loss, if any. However, the unfavorable resolution of this matter could have a material adverse effect on our business, results of operations, financial condition or cash flow. 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 | 12 Months Ended |
Mar. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring Plan | 16. Restructuring Plan During the year ended March 31, 2022, we recorded restructuring costs of $539, consisting of payroll-related costs, such as severance, outplacement costs, and continuing healthcare coverage, associated with the involuntary separation of employees pursuant to a one-time benefit arrangement, within operating expenses in our consolidated statements of net income and comprehensive income. The payroll-related costs were substantially paid as of March 31, 2022. During the year ended March, 31, 2021, we recorded $2,562 of restructuring costs, consisting of payroll-related costs, such as severance, outplacement costs, and continuing healthcare coverage, associated with the involuntary separation of employees pursuant to a one-time benefit arrangement within operating expenses in our consolidated statements of net income and comprehensive income, During the year ended March 31, 2020, we recorded $2,505 of restructuring costs, consisting of primarily of payroll-related costs, such as severance, outplacement costs, and continuing healthcare coverage, associated with the involuntary separation of employees pursuant to a one-time benefit arrangement within operating expenses in our consolidated statements of comprehensive income, which was related to |
Subsequent Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | 17. Subsequent Event On May 17, 2022, we entered into an amendment to the Credit Agreement, which, among other changes, provides more favorable terms and flexibility with regards to our ability to obtain additional revolving credit commitments and/or term loans thereunder, including amendments to the net leverage ratio and definition of restricted payments. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2022 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Sales Return Reserve (in thousands) For the year ended Balance at Beginning of Year Additions Charged Against Revenue Deductions Balance at End of Year March 31, 2022 $ 3,593 $ 5,381 $ (5,596 ) $ 3,378 March 31, 2021 $ 4,191 $ 6,595 $ (7,193 ) $ 3,593 March 31, 2020 $ 4,759 $ 7,094 $ (7,662 ) $ 4,191 Allowance for Credit Losses (in thousands) For the year ended Balance at Beginning of Year Additions Charged to Costs and Expenses Deductions Balance at End of Year March 31, 2022 $ 4,205 $ 1,915 $ (2,232 ) $ 3,888 March 31, 2021 $ 3,549 $ 2,834 $ (2,178 ) $ 4,205 March 31, 2020 $ 6,054 $ 3,367 $ (5,872 ) $ 3,549 Valuation Allowance for Deferred Taxes (in thousands) For the year ended Balance at Beginning of Year Additions Charged Costs and Expenses Acquisition Related Additions Deductions Balance at End of March 31, 2022 $ 6,015 $ 7 $ — $ (889 ) $ 5,133 March 31, 2021 $ 5,452 $ 877 $ — $ (314 ) $ 6,015 March 31, 2020 $ 3,563 $ 327 $ 1,590 $ (28 ) $ 5,452 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business NextGen Healthcare is a leading provider of innovative, cloud-based, healthcare technology solutions that empower healthcare practices to manage the risk and complexity of delivering care in the United States healthcare system. Our combination of technological breadth, depth, and domain expertise makes us a preferred solution provider and trusted advisor for our clients. In addition to highly configurable core clinical and financial capabilities, our portfolio includes tightly integrated solutions that deliver on ambulatory healthcare imperatives, including consumerism, digitization, risk allocation, regulatory influence, and integrated care and health equity. We serve clients across all 50 states. Over 100,000 providers use NextGen Healthcare solutions to deliver care in nearly every medical specialty in a wide variety of practice models including accountable care organizations (“ACOs”), independent physician associations (“IPAs”), managed service organizations (“MSOs”), Veterans service organizations (“VSOs”), and dental service organizations (“DSOs”). Our clients range from some of the largest and most progressive multi-specialty groups in the country to sole practitioners with a wide variety of business models. With the addition of behavioral health to our medical and oral health capabilities, we continue to extend our share not only in federally qualified health centers (“FQHCs”) but also in the growing integrated care market. Our company was incorporated in California in 1974. Previously named Quality Systems, Inc., we changed our corporate name to NextGen Healthcare, Inc. in September 2018, and in 2021, we changed our state of incorporation to Delaware. Our principal executive offices are located at 3525 Piedmont Rd., NE, Building 6, Suite 700, Atlanta, Georgia. Our principal website is www.nextgen.com. We operate on a fiscal year ending on March 31. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of NextGen Healthcare, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Each of the terms “NextGen Healthcare,” “NextGen,” “we,” “us,” or “our” as used herein refers collectively to the Company, unless otherwise stated. All intercompany accounts and transactions have been eliminated. |
Business Segments | Business Segments. We operated as one segment for the years ended March 31, 2022 and 2021. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. |
Basis of Presentation | Basis of Presentation. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. |
Use of Estimates | Use of Estimates. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and recording revenue and expenses during the period. Our estimates and assumptions consider the potential economic implications of COVID-19 on our critical and significant accounting estimates. |
Revenue Recognition | Revenue Recognition . Refer to Note 3, "Revenue from Contracts with Customers" for additional information regarding our revenue recognition policies. Recurring revenues consists of subscription services, support and maintenance, managed services, and 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 data services and other transaction processing services are satisfied at the point in time the services are rendered or delivered. The transfer of control occurs when the data services and 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents consist primarily of cash and money market funds with original maturities of less than 90 days. At March 31, 2022 and March 31, 2021, we had cash and cash equivalents of $59,829 and $73,295, respectively. We also had cash deposits held at United States banks and financial institutions at March 31, 2022 of which $73,284 was in excess of the Federal Deposit Insurance Corporation insurance limit of $250 per owner. Our cash deposits are exposed to credit loss for amounts in excess of insured limits in the event of nonperformance by the institutions; however, we do not anticipate nonperformance by these institutions. Money market funds in which we hold a portion of our excess cash are invested in very high grade commercial and governmental instruments, and therefore bear low market risk. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents consist of cash that is being held by the Company acting as an agent for the disbursement of certain state social and care services programs. We record an offsetting liability when we initially receive such cash from the programs. We relieve both restricted cash and cash equivalents and the related liability when amounts are disbursed. We earn an administrative fee based on a percentage of the funds disbursed on behalf of the government social and care service programs. |
Reserves on Accounts Receivable | Reserves on Accounts Receivable. We maintain reserves for estimated potential sales returns and allowances for credit losses on our accounts receivable. Accounts receivable are reported net of an allowance for credit losses on our consolidated balance sheets. Our standard contracts generally do not contain provisions for clients to return products or services. However, we historically have accepted sales returns under limited circumstances. We estimate expected sales returns and other forms of variable consideration considering our customary business practice and contract-specific facts and circumstances, and we consider such estimated potential returns as variable consideration when allocating the transaction price to the extent it is probable that there will not be a significant reversal of cumulative revenue recognized. We adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on April 1, 2020 Allowance for credit losses are reserves related to estimated losses resulting from our clients’ inability to make required payments are established based on our assessment of the collectability of client accounts, including review of our historical experience of bad debt expense and the aging of our accounts receivable balances, net of specifically reserved accounts and amounts billed prior to revenue recognition. Specific reserves are based on our estimate of the probability of collection for certain accounts. As part of our assessment of the adequacy of the allowance for credit losses, we consider a number of factors including, but not limited to, historical credit loss experience and adjustments for certain asset-specific risk characteristics, such as bankruptcy filings, internal assessments of client credit quality, age of the client receivable balances, review of major third-party credit-rating agencies, and evaluation of external factors such as economic conditions, including the potential impacts of the COVID-19 pandemic, that may affect a client’s ability to pay, or other client-specific factors. Accounts are written off as uncollectible only after we have expended extensive collection efforts. Refer to Note 4, “Accounts Receivable” for additional information. |
Leases | Leases. We adopted ASU 2016-02, Leases (Topic 842) , and its subsequent amendments (together “ASC 842”) using the cumulative-effect adjustment transition method, which is the additional transition method described within ASU 2018-11, Leases (Topic 842): Targeted Improvements , issued by the FASB in July 2018, which allowed us to apply the new lease standard as of April 1, 2019. Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets. We determine whether an arrangement is a lease at inception and classify it as finance or operating. All of our existing material leases are classified as operating leases. Our leases do not contain any residual value guarantees. Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. We have certain insignificant short-term leases with an initial term of twelve months or less that are not recorded in our consolidated balance sheets. Operating right-of-use lease assets are classified as operating lease assets on our consolidated balance sheets. Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We have applied the practical expedient to combine fixed payments for non-lease components with our lease payments for all of our leases and account for them together as a single lease component, which increases the amount of our lease assets and corresponding liabilities. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. Operating lease costs are recognized on a straight-line basis over the lease term and included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. Refer to Note 6, "Leases" for additional information. |
Equipment and Improvements | Equipment and Improvements. Equipment and improvements are stated at cost less accumulated depreciation and amortization. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation and amortization of equipment and improvements are recorded over the estimated useful lives of the assets, or the related lease terms if shorter, by the straight-line method. Useful lives generally have the following ranges: • Computer equipment and software - 3 to 5 years • Furniture and fixtures - 3 to 7 years • Leasehold improvements - lesser of lease term or estimated useful life of asset Depreciation expense related to our equipment and improvements was $6,902 |
Capitalized Software Costs | Capitalized Software Costs. Software development costs, consisting primarily of employee salaries and benefits and certain third party costs, incurred in the development of new software solutions and enhancements to existing software solutions for external sale are expensed as incurred, and reported as net research and development costs in the consolidated statements of net income and comprehensive income, until technological feasibility has been established. After technological feasibility is established, the incremental software development costs are capitalized until general release occurs. Amortization of capitalized software begins upon general release and is recorded on a straight-line basis over the estimated economic life of the related product, which is typically three years. The total of capitalized software costs incurred in the development of products for external sale are reported as capitalized software costs within our consolidated balance sheets. We also incur costs related to the development of software applications for our internal-use and for the development of software-as-a-service ("SaaS") based solutions sold to our clients. The development costs of our SaaS-based solutions are considered internal-use for accounting purposes. Our internal-use capitalized development costs are stated at cost and amortized on a straight-line basis over the estimated useful lives of the assets, which is typically three years. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs related to the preliminary project stage and post-implementation activities are expensed as incurred. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized, whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized software costs for the development of SaaS-based solutions are reported as capitalized software costs within our consolidated balance sheets and capitalized software costs for the development of our internal-use software applications are reported as equipment and improvements within our consolidated balance sheets. We periodically reassess the estimated economic life and the recoverability of our capitalized software costs. If we determine that capitalized amounts are not recoverable based on the expected net cash flows to be generated from sales of the applicable software solutions, the amount by which the unamortized capitalized costs exceed the net realizable value is written off as a charge to earnings. The net realizable value is estimated as the expected future gross revenues from that product reduced by the estimated future costs of completing and disposing of that product, including the costs of performing maintenance and client support required to satisfy our responsibility at the time of sale. In addition to the assessment of net realizable value, we review and adjust the remaining estimated lives of our capitalized software costs, if necessary. We also perform a periodic review of our software solutions and dispose of fully amortized capitalized software costs after such products are determined to no longer be used by our clients. |
Business Combinations | Business Combinations. In accordance with the accounting for business combinations, we allocate the purchase price of the acquired business to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent our best estimate of fair value. The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type and nature of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. The purchase price allocation methodology contains uncertainties as it requires us make assumptions and to apply judgment to estimate the fair value of acquired assets and liabilities, including, but not limited to, intangible assets, goodwill, deferred revenue, and contingent consideration liabilities. We estimate the fair value of the contingent consideration liabilities based on our projection of expected results, as needed. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. We expect to finalize the purchase price allocation as soon as practicable within the measurement period, but not later than one year following the acquisition date. Any adjustments to fair value subsequent to the measurement period are reflected in the consolidated statements of net income and comprehensive income. |
Goodwill | Goodwill. Goodwill acquired in a business combination is measured as the excess of the purchase price, or consideration transferred, over the net acquisition date fair values of the assets acquired and the liabilities assumed. Goodwill is not amortized as it has been determined to have an indefinite useful life. We test goodwill for impairment annually during our first fiscal quarter, referred to as the annual test date. We will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). We operate as one segment and have a single reporting unit. The measures evaluated by our chief operating decision maker ("CODM"), consisting of our Chief Executive Officer, to assess company performance and make decisions about the allocation of resources include consolidated revenue and consolidated operating results. As part of our annual goodwill impairment test, we may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount. We assess events or changes in circumstances in totality, including macroeconomic and industry conditions, market and competitive environment, changes in customers or customer mix, cost factors, loss of key personnel, significant changes in legislative environment or other legal factors, changes in the use of our acquired assets, changes in our strategic direction, significant changes in projected future results of operations, changes in the composition or carrying amount of our net assets, and changes in our stock price. Based on our assessment, if we conclude that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, then additional impairment testing is not required. Otherwise, if we determine that a quantitative impairment test should be performed, we then evaluate goodwill for impairment by comparing the estimated fair value of the reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. |
Intangible Assets | Intangible Assets. Intangible assets consist of trade names, customer relationships, and software technology, all of which are associated with our prior acquisitions. The intangible assets are recorded at fair value and are reported net of accumulated amortization. We currently amortize the intangible assets over periods ranging from 5 to 10 years using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed. We assess the recoverability of intangible assets at least annually or whenever adverse events or changes in circumstances indicate that impairment may have occurred. Impairment is deemed to have occurred if the future undiscounted cash flows expected to result from the use of the related assets are less than the carrying value of such assets, and a loss is recognized to reduce the carrying value of the intangible assets to fair value, which is determined by discounting estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our intangible assets and record adjustments, if deemed necessary. |
Long-Lived Assets | Long-Lived Assets. We assess our long-lived assets for potential impairment periodically or whenever adverse events or changes in circumstances indicate that impairment may have occurred. If necessary, recoverability of the assets is evaluated based on the future undiscounted cash flows expected to result from the use of the related assets compared to the carrying value of such assets. If impairment is deemed to have occurred, a loss is recognized to reduce the carrying value of the long-lived assets to fair value, which is determined by discounting the estimated future cash flows. In addition to the impairment assessment, we routinely review the remaining estimated lives of our long-lived assets and record adjustments, if deemed necessary. |
Income Taxes | Income Taxes. Income taxes are estimated based on current taxable income and the future tax consequences of temporary differences between the basis of assets and liabilities for financial and tax reporting. The deferred income tax assets and liabilities represent the future state and federal tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future income taxes. At each reporting period, we assess the realizable value of deferred tax assets based on, among other things, estimates of future taxable income and adjust the related valuation allowance as necessary. We make a number of assumptions and estimates in determining the appropriate amount of expense to record for income taxes. The assumptions and estimates consider the taxing jurisdiction in which we operate as well as current tax regulations. We also evaluate our uncertain tax positions and only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest benefit that has a greater than 50 percentage likelihood of being realized upon settlement. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. |
Advertising Costs | Advertising Costs. Advertising costs are expensed as incurred. We do not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $6,780, $3,902, and $6,044 for the years ended March 31, 2022, 2021, and 2020, respectively, and were included in selling, general and administrative expenses in the accompanying consolidated statements of net income and comprehensive income. |
Earnings per Share | Earnings per Share. We provide a dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. Fiscal Year Ended March 31, 2022 2021 2020 Earnings per share — Basic: Net income $ 1,618 $ 9,515 $ 7,498 Weighted-average shares outstanding — Basic 67,370 66,739 65,474 Net income per common share — Basic $ 0.02 $ 0.14 $ 0.11 Earnings per share — Diluted: Net income $ 1,618 $ 9,515 $ 7,498 Weighted-average shares outstanding 67,370 66,739 65,474 Effect of potentially dilutive securities 418 146 138 Weighted-average shares outstanding — Diluted 67,788 66,885 65,612 Net income per common share — Diluted $ 0.02 $ 0.14 $ 0.11 The computation of diluted net income per share does not include 194, 1,949 and 1,807 options for the years ended March 31, 2022, 2021, and 2020, respectively, because their inclusion would have an anti-dilutive effect on net income per share. |
Recent Accounting Standards | Recently Adopted Accounting Pronouncements. Recently adopted accounting pronouncements are discussed below or in the notes, where applicable. In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The adoption of ASU 2019-12 on April 1, 2021 did not have a material impact on our consolidated financial statements. 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 consolidated financial statements In October 2021, the FASB issued ASU 2021-08 , Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”) Revenue from Contracts with Customers (Topic 606) We do not believe that any other recently issued, but not yet effective accounting standards, if adopted, would have a material impact on our consolidated financial statements. |
Revenue Recognition and Performance Obligations | We generate revenue from sales of licensing rights and subscriptions to our software solutions, hardware and third-party software products, support and maintenance, managed services, EDI and data services, and other non-recurring services, including implementation, training, and consulting services. Our contracts with customers may include multiple performance obligations that consist of various combinations of our software solutions and related services, which are generally capable of being distinct and accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation within a contract based on estimated standalone selling prices. We generally determine standalone selling prices based on the prices charged to customers, except for certain software licenses that are based on the residual approach because their standalone selling prices are highly variable and certain maintenance customers that are based on substantive renewal rates. In instances where standalone selling price is not sufficiently observable, such as RCM services and software licenses included in our RCM arrangements, we estimate standalone selling price utilizing an expected cost plus a margin approach. When standalone selling prices are not observable, significant judgment is required in estimating the standalone selling price for each performance obligation. Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. We exclude sales tax from the measurement of the transaction price and record revenue net of taxes collected from customers and subsequently remitted to governmental authorities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share | We provide a dual presentation of “basic” and “diluted” earnings per share (“EPS”). Shares below are in thousands. Fiscal Year Ended March 31, 2022 2021 2020 Earnings per share — Basic: Net income $ 1,618 $ 9,515 $ 7,498 Weighted-average shares outstanding — Basic 67,370 66,739 65,474 Net income per common share — Basic $ 0.02 $ 0.14 $ 0.11 Earnings per share — Diluted: Net income $ 1,618 $ 9,515 $ 7,498 Weighted-average shares outstanding 67,370 66,739 65,474 Effect of potentially dilutive securities 418 146 138 Weighted-average shares outstanding — Diluted 67,788 66,885 65,612 Net income per common share — Diluted $ 0.02 $ 0.14 $ 0.11 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues Disaggregated by Major Revenue Categories and by Occurrence | The following table presents our revenues disaggregated by our major revenue categories and by occurrence: Fiscal Year Ended March 31, 2022 2021 2020 Recurring revenues: Subscription services $ 162,636 $ 148,403 $ 127,602 Support and maintenance 155,623 152,956 158,619 Managed services 116,722 103,138 104,549 Electronic data interchange and data services 104,732 98,322 98,543 Total recurring revenues 539,713 502,819 489,313 Software, hardware, and other non-recurring revenues: Software license and hardware 31,347 28,825 27,270 Other non-recurring services 25,290 25,177 23,656 Total software, hardware and other non-recurring revenues 56,637 54,002 50,926 Total revenues $ 596,350 $ 556,821 $ 540,239 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | Accounts receivable includes invoiced amounts where the right to receive payment is unconditional and only subject to the passage of time. Allowance for credit losses are reported as a component of accounts receivable as summarized below: March 31, 2022 March 31, 2021 Accounts receivable, gross $ 79,945 $ 81,746 Allowance for credit losses (3,888 ) (4,205 ) Accounts receivable, net $ 76,057 $ 77,541 |
Summary of Changes in Allowance for Doubtful Accounts | The following table represents the changes in the allowance for credit losses, as of and for the twelve months ended March 31, 2022 and 2021: Balance as of March 31, 2020 $ (3,549 ) Additions charged to costs and expenses (2,834 ) Deductions 2,178 Balance as of March 31, 2021 $ (4,205 ) Additions charged to costs and expenses (1,915 ) Deductions 2,232 Balance as of March 31, 2022 $ (3,888 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities on a Recurring Basis | The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2022 and March 31, 2021: Balance At Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs March 31, 2022 (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents (1) $ 59,829 $ 59,829 $ — $ — Restricted cash and cash equivalents 6,918 6,918 — — $ 66,747 $ 66,747 $ — $ — 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. |
Financial Assets and Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) | The following table presents activity in our financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the year ended March 31, 2021. Balance at March 31, 2020 $ 1,900 Fair value adjustments (1,367 ) Transfer of Topaz contingent consideration to Level 2 (533 ) Balance at March 31, 2021 $ — |
Financial Assets and Liabilities Measured At Fair Value Using Significant Observable Inputs (Level 2) | The following table presents activity in our financial assets and liabilities measured at fair value using significant other observable inputs (Level 2) as of and for the year ended March 31, 2022: Balance at March 31, 2021 $ 533 Fair value adjustments 7 Payment of Topaz contingent consideration (540 ) Balance at March 31, 2022 $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Components of Operating Lease Costs | Components of operating lease costs are summarized as follows: Twelve Months Ended March 31, 2022 2021 Operating lease costs $ 6,328 $ 8,235 Short-term lease costs 8 25 Variable lease costs 774 1,444 Less: Sublease income (561 ) (514 ) Total operating lease costs $ 6,549 $ 9,190 |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases is summarized as follows: Twelve Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 13,766 $ 18,651 Operating lease assets obtained in exchange for operating lease liabilities 1,610 3,107 |
Summary of Future Minimum Aggregate Lease Payments Operating Leases | Future minimum aggregate lease payments under operating leases as of March 31, 2022 are summarized as follows: For the year ended March 31, 2023 $ 8,815 2024 6,886 2025 4,388 2026 1,257 Total future lease payments 21,346 Less interest (1,323 ) Total lease liabilities $ 20,023 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Other than Capitalized Software Development Costs | Our definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: March 31, 2022 Customer Relationships Trade Names Software Technology Total Gross carrying amount $ 39,200 $ 250 $ 49,000 $ 88,450 Accumulated amortization (29,824 ) (116 ) (34,207 ) (64,147 ) Net intangible assets $ 9,376 $ 134 $ 14,793 $ 24,303 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 March 31, 2022: Estimated Remaining Amortization Expense Operating Expense Cost of Revenue Total For the year ended March 31, 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 631 242 873 2028 and beyond 557 — 557 Total $ 9,510 $ 14,793 $ 24,303 |
Capitalized Software Costs (Tab
Capitalized Software Costs (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | Our capitalized software costs are summarized as follows: March 31, 2022 March 31, 2021 Gross carrying amount $ 110,155 $ 96,908 Accumulated amortization (66,197 ) (55,434 ) Net capitalized software costs $ 43,958 $ 41,474 |
Estimated Amortization of Capitalized Software Costs | The following table presents the remaining estimated amortization of capitalized software costs as of March 31, 2022. 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, 2023 $ 24,000 2024 12,300 2025 5,600 2026 2,058 Total $ 43,958 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Cash, Cash Equivalents, and Restricted Cash | Cash, cash equivalents, and restricted cash are summarized as follows: March 31, 2022 March 31, 2021 Cash and cash equivalents $ 59,829 $ 73,295 Restricted cash and cash equivalents 6,918 5,280 Cash, cash equivalents, and restricted cash $ 66,747 $ 78,575 |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets are summarized as follows: March 31, 2022 March 31, 2021 Prepaid expenses $ 24,229 $ 20,679 Capitalized commissions costs 11,698 9,399 Other current assets 1,175 1,204 Prepaid expenses and other current assets $ 37,102 $ 31,282 |
Summary of Equipment and Improvements | Equipment and improvements are summarized as follows: March 31, 2022 March 31, 2021 Computer equipment $ 36,293 $ 35,244 Internal-use software 19,001 18,174 Leasehold improvements 13,227 14,418 Furniture and fixtures 9,579 11,555 Equipment and improvements, gross 78,100 79,391 Accumulated depreciation and amortization (68,980 ) (64,852 ) Equipment and improvements, net $ 9,120 $ 14,539 |
Summary of Other Assets | Other assets are summarized as follows: March 31, 2022 March 31, 2021 Capitalized commission costs $ 21,654 $ 19,104 Deposits 5,793 5,505 Debt issuance costs 2,006 2,521 Other noncurrent assets 9,573 9,891 Other assets $ 39,026 $ 37,021 |
Summary of Accrued Compensation and Related Benefits | Accrued compensation and related benefits are summarized as follows: March 31, 2022 March 31, 2021 Accrued bonus $ 27,311 $ 29,382 Accrued vacation 11,785 12,038 Accrued commissions 5,353 4,628 Deferred payroll taxes 3,817 3,817 Accrued payroll and other 470 509 Accrued compensation and related benefits $ 48,736 $ 50,374 |
Summary of Other Current and Noncurrent Liabilities | Other current and noncurrent liabilities are summarized as follows: March 31, 2022 March 31, 2021 Accrued hosting costs $ 12,510 $ 6,158 Care services liabilities 6,918 5,280 Sales returns reserves and other customer liabilities 5,725 9,449 Accrued consulting and outside services 4,799 3,002 Customer credit balances and deposits 4,622 4,638 Accrued royalties 3,557 3,125 Accrued employee benefits and withholdings 3,535 4,649 Accrued outsourcing costs 2,264 2,266 Accrued self insurance expense 2,208 1,737 Accrued EDI expense 2,168 2,020 Accrued legal expense 1,439 6,302 Accrued taxes payable 540 586 Contingent consideration related to acquisitions — 533 Other accrued expenses 3,248 2,954 Other current liabilities $ 53,533 $ 52,699 Uncertain tax positions 4,196 3,175 Other liabilities 374 144 Deferred payroll taxes — 3,817 Other noncurrent liabilities $ 4,570 $ 7,136 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for (Benefit of) Income Taxes | The provision for (benefit of) income taxes consists of the following components: Fiscal Year Ended March 31, 2022 2021 2020 Current: Federal taxes $ 1,090 $ 6,562 $ 408 State taxes 1,081 1,226 858 Foreign taxes 1,192 826 874 Total current taxes 3,363 8,614 2,140 Deferred: Federal taxes $ 43 $ (6,053 ) $ (3,578 ) State taxes (379 ) (2,068 ) (1,682 ) Foreign taxes 551 (733 ) (119 ) Total deferred taxes 215 (8,854 ) (5,379 ) Provision for (benefit of) income taxes $ 3,578 $ (240 ) $ (3,239 ) |
Summary of Provision for (Benefit of) Income Taxes Differs from the Amount Computed at Federal Statutory Rate | The provision for (benefit of) income taxes differs from the amount computed at the federal statutory rate as follows: Fiscal Year Ended March 31, 2022 2021 2020 Tax expense at United States federal statutory rate (1) $ 1,091 $ 1,948 $ 895 Items affecting federal income tax rate: Executive compensation limitation 2,068 775 260 Impact of uncertain tax positions 1,620 278 1,062 Share-based compensation 1,059 865 125 State income taxes 950 572 687 Impact of foreign operations 356 (1,203 ) (683 ) Impact of amended returns 163 (9 ) 67 Impact of deferred adjustments 88 (251 ) 159 Impact of audit settlements — (56 ) (61 ) Acquisition expenses — — 229 Non-deductible expenses (27 ) (258 ) 643 Return to provision true-ups (152 ) (15 ) (1,868 ) Impact of valuation allowance (882 ) 563 (49 ) Research and development tax credits (2,756 ) (3,449 ) (4,705 ) Provision for (benefit of) income taxes $ 3,578 $ (240 ) $ (3,239 ) (1 ) 21.0% |
Summary of Net Deferred Tax Assets and Liabilities | The net deferred tax assets and liabilities in the accompanying consolidated balance sheets consist of the following: March 31, 2022 March 31, 2021 Deferred tax assets: Compensation and benefits $ 17,494 $ 19,541 Deferred revenue 9,245 8,325 Research and development credit 7,165 7,706 Net operating losses 6,018 7,652 Operating lease liabilities 3,774 6,204 Foreign deferred taxes 1,755 2,306 Allowance for credit losses 1,658 1,819 Accounts receivable 511 — Accrued legal settlement — 905 Total deferred tax assets 47,620 54,458 Deferred tax liabilities: Prepaid expense $ (10,895 ) $ (9,396 ) Intangibles assets (8,703 ) (9,451 ) Operating right-of-use assets (1,713 ) (3,003 ) Capitalized software (647 ) (4,659 ) Accelerated depreciation (640 ) (1,339 ) Other (630 ) (611 ) Accounts receivable — (510 ) Total deferred tax liabilities (23,228 ) (28,969 ) Valuation allowance (5,133 ) (6,015 ) Deferred tax assets, net $ 19,259 $ 19,474 |
Summary of Reconciliation in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is recorded within other noncurrent liabilities and deferred income taxes, net in our consolidated balance sheet, is as follows: Balance as of March 31, 2020 $ 4,192 Additions for prior year tax positions 220 Additions for current year tax positions 635 Reductions for prior year tax positions (621 ) Balance as of March 31, 2021 4,426 Additions for prior year tax positions 1,184 Additions for current year tax positions 763 Reductions for prior year tax positions (261 ) Balance as of March 31, 2022 $ 6,112 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes total share-based compensation expense included in the consolidated statements of net income and comprehensive income for the fiscal years ended March 31, 2022, 2021 and 2020: Fiscal Year Ended March 31, 2022 2021 2020 Costs and expenses: Cost of revenue $ 2,183 $ 1,991 $ 2,051 Research and development costs 4,508 4,036 3,875 Selling, general and administrative 19,861 16,683 13,768 Total share-based compensation 26,552 22,710 19,694 Income tax benefit (6,221 ) (5,415 ) (4,726 ) Decrease in net income $ 20,331 $ 17,295 $ 14,968 |
Summary of Stock Option Activity | The following table summarizes the stock option transactions during the years ended March 31, 2022, 2021, and 2020: Weighted- Weighted- Average Average Aggregate Exercise Remaining Intrinsic Number of Price Contractual Value Shares per Share Life (years) (in thousands) Outstanding, March 31, 2019 3,166,525 15.36 5.5 $ 7,040 Exercised (55,325 ) 15.87 4.3 $ 138 Forfeited/Canceled (75,450 ) 23.38 1.5 Expired (34,400 ) 43.04 Outstanding, March 31, 2020 3,001,350 $ 14.83 4.7 $ — Exercised (116,916 ) 16.21 3.3 $ 303 Forfeited/Canceled (47,350 ) 18.58 3.7 Expired (46,000 ) 29.17 Outstanding, March 31, 2021 2,791,084 $ 14.47 3.7 $ 10,303 Exercised (1,248,525 ) 13.76 2.7 2,638 Forfeited/Canceled (32,320 ) 19.51 3.0 Expired (56,500 ) 18.85 Outstanding, March 31, 2022 1,453,739 $ 14.80 2.9 $ 8,886 Vested and expected to vest, March 31, 2022 1,445,622 $ 14.79 2.9 $ 8,854 Exercisable, March 31, 2022 1,403,357 $ 14.72 2.8 $ 8,690 |
Schedule of Employee Stock Options and Performance Based Awards by Non-vested Stock Options | Non-vested stock option award activity during the years ended March 31, 2022, 2021, and 2020 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2019 1,845,855 $ 5.52 Vested (745,033 ) 5.29 Forfeited/Canceled (9,150 ) 6.42 Outstanding, March 31, 2020 1,091,672 $ 5.67 Vested (605,433 ) 5.40 Forfeited/Canceled (26,900 ) 6.80 Outstanding, March 31, 2021 459,339 $ 5.96 Vested (391,457 ) 5.74 Forfeited/Canceled (17,500 ) 7.96 Outstanding, March 31, 2022 50,382 $ 6.98 |
Summary of Restricted Stock Awards Activity | Restricted stock awards activity during the years ended March 31, 2022, 2021, and 2020 is summarized as follows: Weighted- Average Grant-Date Number of Fair Value Shares per Share Outstanding, March 31, 2019 1,715,958 $ 16.29 Granted 1,529,831 16.93 Vested (764,290 ) 16.05 Canceled (168,719 ) 17.06 Outstanding, March 31, 2020 2,312,780 $ 16.74 Granted 1,222,863 12.04 Vested (1,053,792 ) 16.22 Canceled (218,282 ) 15.30 Outstanding, March 31, 2021 2,263,569 $ 14.58 Granted 2,391,578 15.87 Vested (1,109,520 ) 15.17 Canceled (302,864 ) 14.94 Outstanding, March 31, 2022 3,242,763 $ 15.30 |
Organization of Business - Addi
Organization of Business - Additional Information (Details) | 12 Months Ended |
Mar. 31, 2022StateProvider | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of states serving to clients | State | 50 |
Number of providers using healthcare solutions to deliver care | Provider | 100,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022USD ($)segmentshares | Mar. 31, 2021USD ($)segmentshares | Mar. 31, 2020USD ($)shares | |
Accounting Policies [Line Items] | |||
Number of operating segments | segment | 1 | 1 | |
Maturity of time deposits | 90 days | ||
Cash, FDIC insured amount | $ 250 | ||
Cash and cash equivalents | 59,829 | $ 73,295 | |
Cash, uninsured amount | 73,284 | ||
Depreciation | 6,902 | 7,997 | $ 8,172 |
Advertising costs | $ 6,780 | $ 3,902 | $ 6,044 |
Employee Stock Options | |||
Accounting Policies [Line Items] | |||
Options excluded from the computation of diluted net income per share | shares | 194 | 1,949 | 1,807 |
Minimum | |||
Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 5 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Amortization period of intangible assets | 10 years | ||
Computer Equipment and Software | Minimum | |||
Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Computer Equipment and Software | Maximum | |||
Accounting Policies [Line Items] | |||
Useful life | 5 years | ||
Furniture and Fixtures | Minimum | |||
Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Furniture and Fixtures | Maximum | |||
Accounting Policies [Line Items] | |||
Useful life | 7 years | ||
Leasehold Improvements | |||
Accounting Policies [Line Items] | |||
Useful life, description | lesser of lease term or estimated useful life of asset | ||
Capitalized Software Costs | |||
Accounting Policies [Line Items] | |||
Useful life | 3 years | ||
Accounting Standards Update 2016-02 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2019 | ||
Accounting Standards Update 2019-12 | |||
Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Apr. 1, 2021 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Weighted Average Shares Outstanding for Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per share — Basic: | |||
Net income | $ 1,618 | $ 9,515 | $ 7,498 |
Weighted-average shares outstanding — Basic | 67,370 | 66,739 | 65,474 |
Net income per common share — Basic | $ 0.02 | $ 0.14 | $ 0.11 |
Earnings per share — Diluted: | |||
Net income | $ 1,618 | $ 9,515 | $ 7,498 |
Weighted-average shares outstanding — Basic | 67,370 | 66,739 | 65,474 |
Effect of potentially dilutive securities | 418 | 146 | 138 |
Weighted-average shares outstanding — Diluted | 67,788 | 66,885 | 65,612 |
Net income per common share — Diluted | $ 0.02 | $ 0.14 | $ 0.11 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenues Disaggregated by Major Revenue Categories and by Occurrence (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 596,350 | $ 556,821 | $ 540,239 |
Subscription Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 162,636 | 148,403 | 127,602 |
Support And Maintenance | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 155,623 | 152,956 | 158,619 |
Managed Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 116,722 | 103,138 | 104,549 |
Electronic Data Interchange And Data Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 104,732 | 98,322 | 98,543 |
Recurring Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 539,713 | 502,819 | 489,313 |
Software License and Hardware | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 31,347 | 28,825 | 27,270 |
Other Non-recurring Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 25,290 | 25,177 | 23,656 |
Software, Hardware, and Other Non-recurring | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | $ 56,637 | $ 54,002 | $ 50,926 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue From Contract With Customer [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 608,400 | $ 548,800 | |
Percentage of revenue expected to recognize as services rendered and goods delivered | 10.00% | 9.00% | |
Percentage of revenue expected to recognize over next 12 months | 51.00% | 53.00% | |
Contract liability balance or invoiced to customers | $ 69,062 | $ 74,097 | |
Capitalized commission costs | 33,352 | 28,503 | |
Commission expenses | 12,044 | 11,236 | $ 8,006 |
Prepaid Expenses And Other Current Assets | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized commission costs | 11,698 | 9,399 | |
Other Noncurrent Assets | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized commission costs | $ 21,654 | $ 19,104 | |
Minimum | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized contract cost, amortization period | 1 year | ||
Maximum | |||
Revenue From Contract With Customer [Line Items] | |||
Capitalized contract cost, amortization period | 5 years |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Receivables [Abstract] | |||
Accounts receivable, gross | $ 79,945 | $ 81,746 | |
Allowance for credit losses | (3,888) | (4,205) | $ (3,549) |
Accounts receivable, net | $ 76,057 | $ 77,541 |
Accounts Receivable - Summary_2
Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Receivables [Abstract] | |||
Balance | $ (4,205) | $ (3,549) | |
Additions charged to costs and expenses | (1,915) | (2,834) | $ (3,367) |
Deductions | 2,232 | 2,178 | |
Balance | $ (3,888) | $ (4,205) | $ (3,549) |
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 | Mar. 31, 2022 | Mar. 31, 2021 | |
Carrying Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | $ 59,829 | $ 73,295 |
Restricted cash and cash equivalents | 6,918 | 5,280 | |
Total | 66,747 | 78,575 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 533 | ||
Total | 533 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value | |||
ASSETS | |||
Cash and cash equivalents | [1] | 59,829 | 73,295 |
Restricted cash and cash equivalents | 6,918 | 5,280 | |
Total | 66,747 | 78,575 | |
LIABILITIES | |||
Contingent consideration related to acquisitions | 0 | ||
Total | 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 | ||
Total | 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 | ||
Total | $ 0 | ||
[1] | Cash equivalents consist primarily of money market funds. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | |||
Fair value of contingent consideration adjustments | $ 7 | $ (1,367) | $ (950) |
Change in fair value of contingent consideration | 7 | (1,367) | $ (950) |
Topaz Information Systems, LLC | |||
Business Acquisition [Line Items] | |||
Fair value of contingent consideration adjustments | 7 | ||
Change in fair value of contingent consideration | 7 | ||
Payment of contingent consideration | $ 540 | ||
Topaz Information Systems, LLC | Level 2 | |||
Business Acquisition [Line Items] | |||
Fair value of contingent consideration adjustments | (1,367) | ||
Contingent consideration related to acquisitions | 533 | ||
Change in fair value of contingent consideration | $ (1,367) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) (Details ) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Company's assets measured at fair value using significant unobservable inputs (Level 3) | |||
Balance | $ 1,900 | ||
Change in fair value of contingent consideration | $ 7 | (1,367) | $ (950) |
Balance | $ 1,900 | ||
Topaz Information Systems, LLC | |||
Company's assets measured at fair value using significant unobservable inputs (Level 3) | |||
Change in fair value of contingent consideration | $ 7 | ||
Topaz Information Systems, LLC | Level 2 | |||
Company's assets measured at fair value using significant unobservable inputs (Level 3) | |||
Change in fair value of contingent consideration | (1,367) | ||
Transfer of Topaz contingent consideration to Level 2 | $ (533) |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Assets and Liabilities Measured At Fair Value Using Significant Observable Inputs (Level 2) (Details ) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Beginning balance | $ 533 | ||
Change in fair value of contingent consideration | 7 | $ (1,367) | $ (950) |
Ending balance | $ 533 | ||
Topaz Information Systems, LLC | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Change in fair value of contingent consideration | 7 | ||
Payment of Topaz contingent consideration | $ (540) |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee Lease Description [Line Items] | |||
Total operating lease costs | $ 6,549 | $ 9,190 | $ 10,309 |
Operating lease, weighted average remaining lease term | 2 years 8 months 12 days | ||
Operating lease, weighted average discount rate, percent | 3.70% | ||
Lease Right of Use Assets and Property Plant and Equipment | |||
Lessee Lease Description [Line Items] | |||
Other asset impairment charges | $ 3,906 | $ 5,539 | $ 9,373 |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Lease expiration year | 2022 | ||
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 | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 6,328 | $ 8,235 | |
Short-term lease costs | 8 | 25 | |
Variable lease costs | 774 | 1,444 | |
Less: Sublease income | (561) | (514) | |
Total operating lease costs | $ 6,549 | $ 9,190 | $ 10,309 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 13,766 | $ 18,651 | $ 11,527 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 1,610 | $ 3,107 | $ 8,494 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Aggregate Lease Payments Operating Leases (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2023 | $ 8,815 |
2024 | 6,886 |
2025 | 4,388 |
2026 | 1,257 |
Total future lease payments | 21,346 |
Less interest | (1,323) |
Total lease liabilities | $ 20,023 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 267,212 | $ 267,212 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets, Other than Capitalized Software Development Costs (Details) - Intangible Assets Other Than Capitalized Software - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 88,450 | $ 130,950 |
Accumulated amortization | (64,147) | (94,250) |
Net intangible assets | 24,303 | 36,700 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 39,200 | 39,200 |
Accumulated amortization | (29,824) | (26,349) |
Net intangible assets | 9,376 | 12,851 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 250 | 250 |
Accumulated amortization | (116) | (67) |
Net intangible assets | 134 | 183 |
Computer Software, Intangible Asset | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 49,000 | 91,500 |
Accumulated amortization | (34,207) | (67,834) |
Net intangible assets | $ 14,793 | $ 23,666 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization of other intangibles | $ 12,397 | $ 21,109 | $ 22,536 |
Customer Relationships and Trade Names | Operating Expense | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of other intangibles | 3,525 | 4,449 | 4,143 |
Computer Software, Intangible Asset | Cost of Revenue | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of other intangibles | $ 8,872 | $ 16,660 | $ 18,393 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization of Intangible Assets with Determinable Lives (Details) - Intangible Assets Other Than Capitalized Software - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
2023 | $ 7,974 | |
2024 | 5,852 | |
2025 | 5,419 | |
2026 | 3,628 | |
2027 | 873 | |
2028 and beyond | 557 | |
Net intangible assets | 24,303 | $ 36,700 |
Operating Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
2023 | 2,820 | |
2024 | 2,279 | |
2025 | 1,846 | |
2026 | 1,377 | |
2027 | 631 | |
2028 and beyond | 557 | |
Net intangible assets | 9,510 | |
Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
2023 | 5,154 | |
2024 | 3,573 | |
2025 | 3,573 | |
2026 | 2,251 | |
2027 | 242 | |
Net intangible assets | $ 14,793 |
Capitalized Software Costs - Ca
Capitalized Software Costs - Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Research And Development [Abstract] | ||
Gross carrying amount | $ 110,155 | $ 96,908 |
Accumulated amortization | (66,197) | (55,434) |
Net capitalized software costs | $ 43,958 | $ 41,474 |
Capitalized Software Costs - Ad
Capitalized Software Costs - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Research And Development [Abstract] | |||
Impairments related to write down of capitalized software costs | $ 3,198 | ||
Amortization of capitalized software costs | $ 23,016 | $ 20,108 | $ 17,085 |
Capitalized Software Costs - Es
Capitalized Software Costs - Estimated Amortization of Capitalized Software Costs (Details) - Capitalized Software Costs $ in Thousands | Mar. 31, 2022USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2023 | $ 24,000 |
2024 | 12,300 |
2025 | 5,600 |
2026 | 2,058 |
Net intangible assets | $ 43,958 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) | 12 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 12, 2021USD ($) | Mar. 29, 2018USD ($) | |
Line Of Credit Facility [Line Items] | |||||
Minimum interest coverage ratio | 3.50 | ||||
Loans outstanding | $ 0 | $ 0 | |||
Remaining borrowing capacity | 300,000,000 | 300,000,000 | |||
Interest expense | $ 791,000 | $ 2,541,000 | $ 1,274,000 | ||
Debt, weighted average interest rate | 0.00% | 2.20% | 2.40% | ||
Borrowings outstanding | $ 0 | ||||
Additional unamortized debt issuance costs | $ 1,423,000 | ||||
Debt issuance costs written off | 326,000 | ||||
Amortization of deferred debt issuance costs, including written off | 508,000 | 1,026,000 | $ 710,000 | ||
Other Assets | |||||
Line Of Credit Facility [Line Items] | |||||
Debt issuance costs | $ 2,006,000 | 2,521,000 | |||
Maximum | Fiscal Quarter Ending on or Prior to September 30, 2016 | |||||
Line Of Credit Facility [Line Items] | |||||
Leverage ratio | 3.75 | ||||
Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | |||
Additional revolving credit commitments | $ 150,000,000 | ||||
Credit agreement maturity date | Mar. 12, 2026 | ||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Revolving Credit Facility | Minimum | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||||
Revolving Credit Facility | Maximum | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.75% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.45% | ||||
Revolving Credit Facility | Federal Funds Effective Rate | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Revolving Credit Facility | London Interbank Offered Rate ("LIBOR") | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.50% | ||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.75% | ||||
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 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 59,829 | $ 73,295 | ||
Restricted cash and cash equivalents | 6,918 | 5,280 | ||
Cash, cash equivalents, and restricted cash | $ 66,747 | $ 78,575 | $ 140,319 | $ 34,522 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 24,229 | $ 20,679 |
Capitalized commissions costs | 11,698 | 9,399 |
Other current assets | 1,175 | 1,204 |
Prepaid expenses and other current assets | $ 37,102 | $ 31,282 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions - Summary of Equipment and Improvements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 78,100 | $ 79,391 |
Accumulated depreciation and amortization | (68,980) | (64,852) |
Equipment and improvements, net | 9,120 | 14,539 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 36,293 | 35,244 |
Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 19,001 | 18,174 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | 9,579 | 11,555 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Equipment and improvements, gross | $ 13,227 | $ 14,418 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions - Summary of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Capitalized commission costs | $ 21,654 | $ 19,104 |
Deposits | 5,793 | 5,505 |
Debt issuance costs | 2,006 | 2,521 |
Other noncurrent assets | 9,573 | 9,891 |
Other assets | $ 39,026 | $ 37,021 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions - Summary of Accrued Compensation and Related Benefits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Employee Related Liabilities Current [Abstract] | ||
Accrued bonus | $ 27,311 | $ 29,382 |
Accrued vacation | 11,785 | 12,038 |
Accrued commissions | 5,353 | 4,628 |
Deferred payroll taxes | 3,817 | 3,817 |
Accrued payroll and other | 470 | 509 |
Accrued compensation and related benefits | $ 48,736 | $ 50,374 |
Composition of Certain Financ_8
Composition of Certain Financial Statement Captions - Summary of Other Current and Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Other Liabilities [Abstract] | ||
Accrued hosting costs | $ 12,510 | $ 6,158 |
Care services liabilities | 6,918 | 5,280 |
Sales returns reserves and other customer liabilities | 5,725 | 9,449 |
Accrued consulting and outside services | 4,799 | 3,002 |
Customer credit balances and deposits | 4,622 | 4,638 |
Accrued royalties | 3,557 | 3,125 |
Accrued employee benefits and withholdings | 3,535 | 4,649 |
Accrued outsourcing costs | 2,264 | 2,266 |
Accrued self insurance expense | 2,208 | 1,737 |
Accrued EDI expense | 2,168 | 2,020 |
Accrued legal expense | 1,439 | 6,302 |
Accrued taxes payable | 540 | 586 |
Contingent consideration related to acquisitions | 533 | |
Other accrued expenses | 3,248 | 2,954 |
Other current liabilities | 53,533 | 52,699 |
Uncertain tax positions | 4,196 | 3,175 |
Other liabilities | 374 | 144 |
Deferred payroll taxes | 3,817 | |
Other noncurrent liabilities | $ 4,570 | $ 7,136 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for (Benefit of) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Current: | |||
Federal taxes | $ 1,090 | $ 6,562 | $ 408 |
State taxes | 1,081 | 1,226 | 858 |
Foreign taxes | 1,192 | 826 | 874 |
Total current taxes | 3,363 | 8,614 | 2,140 |
Deferred: | |||
Federal taxes | 43 | (6,053) | (3,578) |
State taxes | (379) | (2,068) | (1,682) |
Foreign taxes | 551 | (733) | (119) |
Total deferred taxes | 215 | (8,854) | (5,379) |
Provision for (benefit of) income taxes | $ 3,578 | $ (240) | $ (3,239) |
Income Taxes - Summary of Pro_2
Income Taxes - Summary of Provision for (Benefit of) Income Taxes Differs from the Amount Computed at Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at United States federal statutory rate | $ 1,091 | $ 1,948 | $ 895 |
Executive compensation limitation | 2,068 | 775 | 260 |
Impact of uncertain tax positions | 1,620 | 278 | 1,062 |
Share-based compensation | 1,059 | 865 | 125 |
State income taxes | 950 | 572 | 687 |
Impact of foreign operations | 356 | (1,203) | (683) |
Impact of amended returns | 163 | (9) | 67 |
Impact of deferred adjustments | 88 | (251) | 159 |
Impact of audit settlements | (56) | (61) | |
Acquisition expenses | 229 | ||
Non-deductible expenses | (27) | (258) | 643 |
Return to provision true-ups | (152) | (15) | (1,868) |
Impact of valuation allowance | (882) | 563 | (49) |
Research and development tax credits | (2,756) | (3,449) | (4,705) |
Provision for (benefit of) income taxes | $ 3,578 | $ (240) | $ (3,239) |
Income Taxes - Summary of Pro_3
Income Taxes - Summary of Provision for (Benefit of) Income Taxes Differs from the Amount Computed at Federal Statutory Rate (Parenthetical) (Details) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred tax assets: | ||
Compensation and benefits | $ 17,494 | $ 19,541 |
Deferred revenue | 9,245 | 8,325 |
Research and development credit | 7,165 | 7,706 |
Net operating losses | 6,018 | 7,652 |
Operating lease liabilities | 3,774 | 6,204 |
Foreign deferred taxes | 1,755 | 2,306 |
Allowance for credit losses | 1,658 | 1,819 |
Accounts receivable | 511 | |
Accrued legal settlement | 905 | |
Total deferred tax assets | 47,620 | 54,458 |
Deferred tax liabilities: | ||
Prepaid expense | (10,895) | (9,396) |
Intangibles assets | (8,703) | (9,451) |
Operating right-of-use assets | (1,713) | (3,003) |
Capitalized software | (647) | (4,659) |
Accelerated depreciation | (640) | (1,339) |
Other | (630) | (611) |
Accounts receivable | (510) | |
Total deferred tax liabilities | (23,228) | (28,969) |
Valuation allowance | (5,133) | (6,015) |
Deferred tax assets, net | $ 19,259 | $ 19,474 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign withholding related taxes | $ 4,217,000 | ||
Unrecognized tax benefits, decrease resulting from prior period tax positions | 1,686,000 | ||
Liability for unrecognized tax benefits | 6,112,000 | $ 4,426,000 | $ 4,192,000 |
Income tax examination, interest accrued | 286,000 | 88,000 | |
Income tax examination, interest expense | 199,000 | ||
Income tax examination, interest income | 85,000 | 35,000 | |
Income tax examination, penalty accrued | 0 | 0 | 0 |
Income tax examination, penalty expense | $ 0 | 0 | $ 0 |
Period within which the company does not anticipate total unrecognized tax benefits to change | within the next twelve months | ||
Research and Development | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | $ 8,155,000 | 8,574,000 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 10,801,000 | $ 18,748,000 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 3,750,000 | ||
Tax effect from change in tax rate | $ 714,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Liability for unrecognized tax benefits | $ 4,426 | $ 4,192 |
Additions for prior year tax positions | 1,184 | 220 |
Additions for current year tax positions | 763 | 635 |
Reductions for prior year tax positions | (261) | (621) |
Liability for unrecognized tax benefits | $ 6,112 | $ 4,426 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, maximum annual contributions per employee, percent | 75.00% | ||
Defined contribution plan, maximum annual bonus contributions per employee, percent | 100.00% | ||
Deferred compensation | $ 7,230 | $ 6,620 | |
Cash surrender value of life insurance | 8,098 | 8,126 | |
401(k) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, net contributions by employer | 6,922 | 4,625 | $ 4,658 |
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, net contributions by employer | $ 116 | $ 79 | $ 74 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Oct. 26, 2021 | Sep. 20, 2021 | Oct. 26, 2020 | Oct. 23, 2018 | Aug. 11, 2014 | Jan. 27, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Oct. 31, 2021 | Aug. 31, 2019 | Mar. 31, 2019 | Aug. 31, 2017 | Aug. 31, 2015 | Oct. 31, 2005 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Outstanding stock options | 1,453,739 | 2,791,084 | 3,001,350 | 3,166,525 | ||||||||||||
Total share-based compensation | $ 26,552,000 | $ 22,710,000 | $ 19,694,000 | |||||||||||||
Fair value of options vested | $ 2,248,000 | 3,272,000 | 3,940,000 | |||||||||||||
Stock repurchase program, authorized amount | $ 60,000,000 | |||||||||||||||
Stock repurchased during period, shares | 2,169,896 | |||||||||||||||
Stock repurchased during period, value | [1] | $ 35,874,000 | ||||||||||||||
Weighted-average share repurchase price | $ 16.53 | |||||||||||||||
Stock repurchased available during period value | $ 24,126,000 | |||||||||||||||
7.4% Previously Owned Shareholder | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Stock repurchased during period, shares | 2,000,000 | |||||||||||||||
Stock repurchased during period, value | $ 33,100,000 | |||||||||||||||
Percentage of shares repurchased on outstanding shares | 3.00% | |||||||||||||||
Percentage of shares previously owned | 7.40% | |||||||||||||||
Employee Stock Options | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Outstanding stock options | 1,409,539 | |||||||||||||||
Total share-based compensation | $ 1,251,000 | $ 2,536,000 | $ 3,826,000 | |||||||||||||
Total unrecognized compensation costs | $ 83,000 | |||||||||||||||
Stock option recognized over weighted average period (in years) | 2 months 12 days | |||||||||||||||
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 | 2,205,149 | |||||||||||||||
Restricted Stock | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 3,242,763 | 2,263,569 | 2,312,780 | 1,715,958 | ||||||||||||
Total share-based compensation | $ 20,821,000 | $ 16,371,000 | $ 14,706,000 | |||||||||||||
Stock option recognized over weighted average period (in years) | 2 years | |||||||||||||||
Total unrecognized compensation costs | $ 35,894,000 | |||||||||||||||
Stock awards vested as of vesting | $ 18,156,000 | $ 14,138,000 | $ 12,962,000 | |||||||||||||
Net share-settled upon vesting | 356,490 | 349,895 | 241,571 | |||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 2,391,578 | 1,222,863 | 1,529,831 | |||||||||||||
Restricted Stock | Minimum | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 1 year | |||||||||||||||
Restricted Stock | Maximum | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Performance Stock Units and Awards | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Total share-based compensation | $ 184,000 | $ 246,000 | ||||||||||||||
Number of shares granted | 123,082 | |||||||||||||||
Stock option recognized over weighted average period (in years) | 2 years 2 months 12 days | |||||||||||||||
Total unrecognized compensation costs | $ 12,069,000 | |||||||||||||||
Stock awards vested as of vesting | 422,000 | $ 368,000 | ||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 0 | |||||||||||||||
Shares were ultimately earned and issued during the performance period | 102,813 | |||||||||||||||
Performance Stock Units and Awards | Units Granted On October 2018 | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Total share-based compensation | $ 359,000 | 458,000 | ||||||||||||||
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% | |||||||||||||||
Performance Stock Units and Awards | Units Granted On December 2019 and January 2020 | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Total share-based compensation | 82,000 | 1,455,000 | $ 309,000 | |||||||||||||
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 | |||||||||||||||
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 and Awards | Units Granted on September 2021 | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Total share-based compensation | 1,210,000 | |||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 450,000 | |||||||||||||||
Weighted-average grant date fair value | $ 10.52 | |||||||||||||||
Performance period | 5 years | |||||||||||||||
Award continued service period | 3 years | |||||||||||||||
Performance Stock Units and Awards | Units Granted on October 2021 | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Total share-based compensation | 1,476,000 | |||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 476,713 | |||||||||||||||
Weighted-average grant date fair value | $ 13.02 | |||||||||||||||
Award continued service period | 3 years | |||||||||||||||
Performance Stock Units and Awards | Units Granted On October Two Thousand Twenty | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Total share-based compensation | $ 1,418,000 | $ 1,187,000 | ||||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures | 408,861 | |||||||||||||||
Percentage of shares issued, minimum | 8.50% | |||||||||||||||
Percentage of shares issued, maximum | 199.50% | |||||||||||||||
Weighted-average grant date fair value | $ 16.25 | |||||||||||||||
Percentage of performance stock units tied to fiscal year 2021 revenue goal | 80.00% | |||||||||||||||
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 | |||||||||||||||
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 | 44,200 | |||||||||||||||
2005 Employee Stock Option and Incentive Plan | Employee Stock Options | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Expiration period (in years) | 10 years | |||||||||||||||
Share-based compensation award plan , expiration date | May 25, 2015 | |||||||||||||||
2015 Plan | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Common stock reserved for issuance | 1,850,000 | 3,575,000 | 6,000,000 | |||||||||||||
Common stock reserved | 11,500,000 | |||||||||||||||
Shares available for future grant | 2,399,848 | |||||||||||||||
2015 Plan | Employee Stock Options | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Expiration period (in years) | 10 years | |||||||||||||||
Number of shares granted | 0 | 0 | 0 | |||||||||||||
Inducement Plan | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Common stock reserved for issuance | 1,500,000 | |||||||||||||||
Shares available for future grant | 12,386 | |||||||||||||||
Inducement Plan | Restricted Stock | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 1,037,614 | |||||||||||||||
Inducement Plan | Performance Stock Unit Awards | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 450,000 | |||||||||||||||
Employee Share Purchase Plan | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Common stock reserved for issuance | 4,000,000 | 888,961 | ||||||||||||||
Total share-based compensation | $ 553,000 | $ 519,000 | $ 484,000 | |||||||||||||
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 | 3,111,039 | |||||||||||||||
[1] | Weighted-average repurchase price (dollars per share) for the year ended March 31, 2022 was $16.53. |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Costs and expenses: | |||
Total share-based compensation | $ 26,552 | $ 22,710 | $ 19,694 |
Income tax benefit | (6,221) | (5,415) | (4,726) |
Decrease in net income | 20,331 | 17,295 | 14,968 |
Cost of Revenue | |||
Costs and expenses: | |||
Total share-based compensation | 2,183 | 1,991 | 2,051 |
Research and Development Costs | |||
Costs and expenses: | |||
Total share-based compensation | 4,508 | 4,036 | 3,875 |
Selling, General and Administrative | |||
Costs and expenses: | |||
Total share-based compensation | $ 19,861 | $ 16,683 | $ 13,768 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding, Beginning | 2,791,084 | 3,001,350 | 3,166,525 | |
Number of Shares, Exercised | (1,248,525) | (116,916) | (55,325) | |
Number of Shares, Forfeited/Canceled | (32,320) | (47,350) | (75,450) | |
Number of Shares, Expired | (56,500) | (46,000) | (34,400) | |
Number of Shares, Outstanding, Ending | 1,453,739 | 2,791,084 | 3,001,350 | 3,166,525 |
Vested and expected to vest, March 31, 2022 | 1,445,622 | |||
Exercisable, March 31, 2022 | 1,403,357 | |||
Weighted- Average Exercise Price per Share | ||||
Weighted-Average Exercise Price per Share, Outstanding, Beginning | $ 14.47 | $ 14.83 | $ 15.36 | |
Weighted-Average Exercise Price per Share, Exercised | 13.76 | 16.21 | 15.87 | |
Weighted-Average Exercise Price per Share, Forfeited/Canceled | 19.51 | 18.58 | 23.38 | |
Weighted-Average Exercise Price per Share, Expired | 18.85 | 29.17 | 43.04 | |
Weighted-Average Exercise Price per Share, Outstanding, Ending | 14.80 | $ 14.47 | $ 14.83 | $ 15.36 |
Vested and expected to vest, March 31, 2022 | 14.79 | |||
Exercisable, March 31, 2022 | $ 14.72 | |||
Weighted- Average Remaining Contractual Life (years) | ||||
Outstanding, March 31, 2019 | 2 years 10 months 24 days | 3 years 8 months 12 days | 4 years 8 months 12 days | 5 years 6 months |
Exercised | 2 years 8 months 12 days | 3 years 3 months 18 days | 4 years 3 months 18 days | |
Forfeited/Canceled | 3 years | 3 years 8 months 12 days | 1 year 6 months | |
Vested and expected to vest, March 31, 2022 | 2 years 10 months 24 days | |||
Exercisable, March 31, 2022 | 2 years 9 months 18 days | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 8,886 | $ 10,303 | $ 7,040 | |
Exercised | 2,638 | $ 303 | $ 138 | |
Vested and expected to vest, March 31, 2022 | 8,854 | |||
Exercisable, March 31, 2022 | $ 8,690 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Non-vested Stock Option (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-vested, Number of Shares [Roll Forward] | |||
Non-Vested Number of Shares, Beginning Balance | 459,339 | 1,091,672 | 1,845,855 |
Non-Vested Number of Shares Vested | (391,457) | (605,433) | (745,033) |
Non-Vested Number of Shares Forfeited/Canceled | (17,500) | (26,900) | (9,150) |
Non-Vested Number of Shares, Ending Balance | 50,382 | 459,339 | 1,091,672 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-vested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Grant-Date Fair Value per Share, Non-vested, Beginning | $ 5.96 | $ 5.67 | $ 5.52 |
Weighted-Average Grant-Date Fair Value per Share, Vested | 5.74 | 5.40 | 5.29 |
Weighted-Average Grant-Date Fair Value per Share, Forfeited/Canceled | 7.96 | 6.80 | 6.42 |
Weighted-Average Grant-Date Fair Value per Share, Non-vested, Ending | $ 6.98 | $ 5.96 | $ 5.67 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Awards Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares Outstanding Beginning Balance | 2,263,569 | 2,312,780 | 1,715,958 |
Granted | 2,391,578 | 1,222,863 | 1,529,831 |
Vested | (1,109,520) | (1,053,792) | (764,290) |
Canceled | (302,864) | (218,282) | (168,719) |
Number of Shares Outstanding Ending Balance | 3,242,763 | 2,263,569 | 2,312,780 |
Weighted Average Grant-Date Fair Value per Share, Beginning of Period | $ 14.58 | $ 16.74 | $ 16.29 |
Weighted Average Grant-Date Fair Value per Share, Granted | 15.87 | 12.04 | 16.93 |
Weighted Average Grant-Date Fair Value per Share, Vested | 15.17 | 16.22 | 16.05 |
Weighted Average Grant-Date Fair Value per Share, Canceled | 14.94 | 15.30 | 17.06 |
Weighted Average Grant-Date Fair Value per Share, End of Period | $ 15.30 | $ 14.58 | $ 16.74 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Mar. 31, 2022 |
Loss Contingencies [Line Items] | ||
Applicable program documentation period | 365 days | |
Mr.Hussein | ||
Loss Contingencies [Line Items] | ||
Indemnification expenses, paid | $ 11,370 |
Restructuring Plan - Additional
Restructuring Plan - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2020 | Jun. 30, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring costs | $ 539 | $ 2,562 | $ 2,505 | ||
Research and Development Costs | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring plan, percentage of number of positions eliminated | 4.00% | ||||
COVID-19 Pandemic | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring plan, percentage of number of positions eliminated | 3.00% |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Sales Return Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 3,593 | $ 4,191 | $ 4,759 |
Additions | 5,381 | 6,595 | 7,094 |
Deductions | (5,596) | (7,193) | (7,662) |
Balance at End of Year | 3,378 | 3,593 | 4,191 |
Allowance For Credit Loss | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 4,205 | 3,549 | 6,054 |
Additions | 1,915 | 2,834 | 3,367 |
Deductions | (2,232) | (2,178) | (5,872) |
Balance at End of Year | 3,888 | 4,205 | 3,549 |
Valuation Allowance for Deferred Taxes | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 6,015 | 5,452 | 3,563 |
Additions | 7 | 877 | 327 |
Acquisition Related Additions | 0 | 0 | 1,590 |
Deductions | (889) | (314) | (28) |
Balance at End of Year | $ 5,133 | $ 6,015 | $ 5,452 |