Filed: 30 Jan 19

Document and Entity Information

Document and Entity Information - shares9 Months Ended
Dec. 31, 2018Jan. 24, 2019
Document And Entity Information
Entity Registrant Name8X8 INC /DE/
Entity Central Index Key1023731
Document Type10-Q
Document Period End DateDec. 31,
2018
Amendment Flagfalse
Entity Emerging Growth Companyfalse
Entity Small Businessfalse
Current Fiscal Year End Date--03-31
Entity Filer CategoryLarge Accelerated Filer
Entity Common Stock, Shares Outstanding95,654,698
Document Fiscal Period FocusQ3
Document Fiscal Year Focus2019

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in ThousandsDec. 31, 2018Mar. 31, 2018
Current assets:
Cash and cash equivalents $ 28,325 $ 31,703
Short-term investments86,507 120,559
Accounts receivable, net19,068 16,296
Deferred sales commission costs14,443 0
Other current assets13,166 10,040
Total current assets161,509 178,598
Property and equipment, net47,744 35,732
Intangible assets, net13,273 11,958
Goodwill39,442 40,054
Restricted cash8,100 8,100
Deferred sales commission costs, non-current30,893 0
Other assets3,065 2,767
Total assets304,026 277,209
Current liabilities:
Accounts payable28,318 23,899
Accrued compensation19,322 17,412
Accrued taxes14,474 6,367
Deferred revenue3,523 2,559
Other accrued liabilities5,598 6,026
Total current liabilities71,235 56,263
Non-current liabilities5,063 2,172
Total liabilities76,298 58,435
Commitments and contingencies
Stockholders' equity:
Common stock96 93
Additional paid-in capital457,887 425,790
Accumulated other comprehensive loss(8,085)(5,645)
Accumulated deficit(222,170)(201,464)
Total stockholders' equity227,728 218,774
Total liabilities and stockholders' equity $ 304,026 $ 277,209

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017
Total revenue $ 89,912 $ 75,575 $ 258,819 $ 217,156
Cost of revenue and operating expenses:
Research and development16,876 8,527 43,919 24,781
Sales and marketing60,717 48,830 169,952 131,103
General and administrative14,196 10,003 42,172 28,575
Impairment of equipment, intangible assets and goodwill0 9,469 0 9,469
Total operating expenses114,150 93,822 321,027 245,322
Loss from operations(24,238)(18,247)(62,208)(28,166)
Other income, net579 569 1,933 3,084
Loss before income taxes(23,659)(17,678)(60,275)(25,082)
Provision for income taxes112 70,842 333 66,153
Net loss $ (23,771) $ (88,520) $ (60,608) $ (91,235)
Net loss per share:
Basic and diluted (in dollars per share) $ (0.25) $ (0.96) $ (0.64) $ (0.99)
Weighted-average common shares outstanding:
Basic and diluted (in shares)95,370 92,029 94,093 91,709
Service
Total revenue $ 85,911 $ 71,891 $ 245,378 $ 205,105
Cost of revenue and operating expenses:
Cost of goods and services sold17,043 12,318 47,988 36,737
Product
Total revenue4,001 3,684 13,441 12,051
Cost of revenue and operating expenses:
Cost of goods and services sold $ 5,318 $ 4,675 $ 16,996 $ 14,657

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net loss $ (23,771) $ (88,520) $ (60,608) $ (91,235)
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on investments in securities(101)(213)160 13
Foreign currency translation adjustment(549)198 (2,600)3,180
Comprehensive loss $ (24,421) $ (88,535) $ (63,048) $ (88,042)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands9 Months Ended
Dec. 31, 2018Dec. 31, 2017
Cash flows from operating activities:
Net loss $ (60,608) $ (91,235)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation6,464 6,049
Amortization of intangible assets4,551 3,995
Amortization of capitalized software6,452 1,270
Impairment of goodwill and long-lived assets0 9,469
Non-cash lease expenses3,601 0
Stock-based compensation31,574 21,138
Deferred income tax expense0 66,273
Gain on escrow settlement0 (1,393)
Other873 226
Changes in assets and liabilities:
Accounts receivable, net(3,965)(3,305)
Deferred sales commission costs(7,234)0
Other current and noncurrent assets(2,565)(2,315)
Accounts payable and accruals13,198 8,855
Deferred revenue986 351
Net cash (used in) provided by operating activities(6,673)19,378
Cash flows from investing activities:
Purchases of property and equipment(5,778)(6,524)
Purchase of businesses(5,625)0
Proceeds from escrow settlement0 1,393
Capitalized software development costs(18,210)(8,689)
Proceeds from maturity of investments44,850 57,150
Sales of investments41,780 23,382
Purchases of investments(52,353)(75,921)
Net cash provided by (used in) investing activities4,664 (9,209)
Cash flows from financing activities:
Capital lease payments(771)(855)
Payment of contingent consideration0 (150)
Repurchase and tax-related withholding of common stock(7,631)(22,137)
Proceeds from issuance of common stock under employee stock plans7,372 3,303
Net cash used in financing activities(1,030)(19,839)
Effect of exchange rate changes on cash(339)409
Net decrease in cash and cash equivalents(3,378)(9,261)
Cash, cash equivalents, and restricted cash at the beginning of the period39,803 41,030
Cash, cash equivalents, and restricted cash at the end of the period36,425 31,769
Supplemental cash flow information
Income taxes paid290 217
Interest paid0 28
Property and equipment acquired under capital leases $ 0 $ 765

DESCRIPTION OF BUSINESS AND SIG

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES9 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIESDESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS A provider of enterprise cloud communications solutions, 8x8, Inc. ("8x8," or the "Company") helps businesses get their employees, customers and applications more connected and productive worldwide. From one technology platform, the Company offers cloud phone, collaboration, conferencing, contact center, data analytics and other services to business customers on a Software-as-a-Service (SaaS) model. The Company's solutions offer a secure, reliable and simplified approach for businesses to transition their legacy, on-premises communications systems to the cloud. The comprehensive solution, built from owned core cloud technologies, enables 8x8 customers to rely on a single provider for their global communications, contact center and customer support requirements. Combining these services allows customers to eliminate information silos and expose vital, real-time communications data spanning multiple services, applications and devices which, in turn, can improve productivity, business performance and the customer experience. The Company's customers are spread across more than 150 countries and range from small businesses to large enterprises with more than 10,000 employees. BASIS OF PRESENTATION AND CONSOLIDATION The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2019 refers to the fiscal year ending March 31, 2019). The accompanying interim consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2018 , with the exception of new revenue recognition guidance discussed in the recently adopted accounting principles section below. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting. In the opinion of the Company's management, these interim consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The March 31, 2018 year-end consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by GAAP. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2018 and notes thereto included in the Company's fiscal 2018 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. As a result of organizational changes made during the third fiscal quarter of 2019, the Company has transitioned from two reporting segments to a single reporting segment. See Note 9 for additional information. ACQUISITIONS In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc., pursuant to which the Company purchased technology and other assets to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite. In October 2018, the Company entered into an asset purchase agreement with Atlassian Corporation PLC for the purchase of the Jitsi video collaboration technology (Jitsi). Jitsi extends the Company's cloud technology platform with scalable video routing and interoperability capabilities built on industry standards such as WebRTC. See Note 10 for additional information on these acquisitions. USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, income and sales tax liabilities, stock-based compensation, and litigation and other contingencies. The Company bases its estimates on historical experience and on various other assumptions. Actual results could differ from those estimates under different assumptions or conditions. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in preparation of these consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 filed with the SEC on May 30, 2018, and there have been no changes to the Company's significant accounting policies during the three months ended December 31, 2018 except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update (ASU) 2014-9, Revenue from Contracts with Customers: Topic 606 (ASU 2014-9 or ASC 606). ASU 2014-9 also included Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which sets forth the requirement of deferring incremental costs of obtaining a contract with a customer. All amounts and disclosures set forth herein are in compliance with these standards. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-9, which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required with the revenue recognition process than were required under the previous guidance (ASC 605). The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the modified retrospective method, the comparative periods’ information is not restated and continues to be reported under the accounting standards in effect in those prior periods. Instead, on April 1, 2018, the Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of accumulated deficit and the corresponding balance sheet accounts, which resulted in a net decrease to accumulated deficit of $39.9 million . The impact on the Company’s opening balances primarily relates to the capitalization of additional commission costs under ASC 606 in the amount of $38.2 million . Under ASC 605, the Company expensed all commission costs as incurred. Under ASC 606, the Company defers all incremental commission costs to obtain the contract and amortizes these costs over a benefit period of five years. The remaining $1.7 million impact of adopting the standard relates to revenue being recognized earlier under ASC 606 than it would have been under ASC 605, which resulted in a contract asset as of the adoption date. See Note 2 for additional disclosure on the impact of adopting this standard. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842), along with amendments issued in 2018, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The update also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The update requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. Among the subsequent amendments, an optional transition method was provided. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption to have a material impact to the consolidated balance sheets for the recording of the "right-to-use" asset and corresponding contract liability. The Company is currently scoping the definition of a lease under ASC 842 to determine the "right-to-use" asset and corresponding liability in accordance with the standard. In June 2018, the FASB issued ASU 2018-7, Compensation-Stock Compensation (Topic 718) , which now provides guidance for share-based payments to non-employees, resulting in alignment in accounting for employees and non-employees. The amendment is effective for public companies with fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) , which makes modifications to disclosure requirements on fair value measurements. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40) , which reduces complexity for the accounting for the accounting for costs of implementing a cloud computing service arrangement. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.

REVENUE RECOGNITION

REVENUE RECOGNITION9 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITIONREVENUE RECOGNITION Revenue Recognition under ASC 606 The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions using the five-step model as prescribed by ASC 606: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as, the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount the Company expects to be entitled to receive in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. The Company usually bills its customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. The Company occasionally allows a 30-day period to cancel a subscription and return products shipped for a full refund. Judgments and Estimates The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments (MRC) on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, of which both represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices (SSP) of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. Service Revenue Service revenue from subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer. Payments received in advance of subscription services being rendered are recorded as a deferred revenue. Usage fees, either bundled or not bundled, are recognized when the Company has a right to invoice. Professional services for configuration, system integration, optimization, customer training or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized over time as the services are rendered. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded as operating expenses against the contract asset (Accounts Receivable). In the normal course of business, the Company records revenue reductions for customer credits. Product Revenue The Company recognizes product revenue for telephony equipment at a point in time, when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience. Contract Assets Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example when the initial month's services or equipment are discounted. Contract assets are included in other current or non-current assets in the consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. Deferred Revenue Deferred revenues represent billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding twelve-month period are recorded as current deferred revenues in the consolidated balance sheets, with the remainder recorded as other non-current liabilities in the consolidated balance sheets. Costs to Obtain a Customer Contract Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as other current or non-current assets and amortized on a straight-line basis over the anticipated benefit period, which is five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. Practical Expedients The new guidance under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, sets forth the requirement of deferring incremental costs of obtaining a contract, typically sales commissions, that were expensed as incurred under the previous guidance. The Company applies a practical expedient that permits it to apply Subtopic 340-40 to a portfolio of contracts, instead of on a contract-by-contract basis, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio. Impact of Adopting ASC 606 The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the consolidated balance sheet as of April 1, 2018 (in thousands). Balance at Adjustments Balance at Current assets: Deferred sales commission costs $ — $ 11,234 $ 11,234 Other current assets $ 10,040 $ 1,725 $ 11,765 Non-current assets: Deferred sales commission costs $ — $ 26,942 $ 26,942 Stockholders' Equity Accumulated deficit $ (201,464 ) $ 39,901 $ (161,563 ) The following tables summarize the impact of the ASC 606 adoption on the Company's consolidated financial statements for the quarter ended December 31, 2018 . Selected Consolidated Balance Sheet Line Items (in thousands): December 31, 2018 ASC 605 Adjustments (As Reported) ASC 606 Current assets: Deferred sales commission costs $ — $ 14,443 $ 14,443 Other current assets $ 10,023 $ 3,143 $ 13,166 Non-current assets: Deferred sales commission costs $ — $ 30,893 $ 30,893 Stockholders' Equity Accumulated deficit $ (270,649 ) $ 48,479 $ (222,170 ) Selected Consolidated Statement of Operations Line Items (in thousands, except per share amounts): Three Months Ended December 31, 2018 ASC 605 Adjustments (As Reported) ASC 606 Service revenue $ 86,245 $ (334 ) $ 85,911 Product revenue 3,335 666 4,001 Total revenue $ 89,580 $ 332 $ 89,912 Operating expenses: Sales and marketing $ 63,276 $ (2,559 ) $ 60,717 Loss from operations $ (27,129 ) $ 2,891 $ (24,238 ) Net loss $ (26,662 ) $ 2,891 $ (23,771 ) Net loss per share: Basic and Diluted $ (0.28 ) $ 0.03 $ (0.25 ) Nine Months Ended December 31, 2018 ASC 605 Adjustments (As Reported) Service revenue $ 246,030 $ (652 ) $ 245,378 Product revenue 12,522 919 13,441 Total revenue $ 258,552 $ 267 $ 258,819 Operating expenses: Sales and marketing $ 177,186 $ (7,234 ) $ 169,952 Loss from operations $ (69,709 ) $ 7,501 $ (62,208 ) Net loss $ (68,109 ) $ 7,501 $ (60,608 ) Net loss per share: Basic and Diluted $ (0.72 ) $ 0.08 $ (0.64 ) Selected Consolidated Statements of Cash Flows Line Items (in thousands): Nine Months Ended December 31, 2018 ASC 605 Adjustments (As Reported) ASC 606 Net loss $ (68,109 ) $ 7,501 $ (60,608 ) Deferred sales commission costs $ — $ (7,234 ) $ (7,234 ) Other current and non-current assets $ (2,298 ) $ (267 ) $ (2,565 ) Net cash provided by operating activities $ (6,673 ) $ — $ (6,673 ) Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 9 for more information. Contract Balances The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): December 31, 2018 Accounts receivable, net $ 19,068 Other current assets $ 3,143 Deferred revenue - current $ 3,523 Deferred revenue - non-current $ 8 Changes in the contract assets and the deferred revenue balances during the nine months ended December 31, 2018 are as follows (in thousands): April 1, 2018 December 31, 2018 $ Change Other current assets $ 1,725 $ 3,143 $ 1,418 Deferred revenue $ 2,578 $ 3,531 $ 953 The change in contract assets was primarily driven by the recognition of revenue that has not yet been billed. The increase in deferred revenues was due to billings in advance of performance obligations being satisfied. Revenues of $2.3 million and $5.5 million recognized during the three and nine months ended December 31, 2018 , respectively, were included in the deferred revenues balance at the beginning of the period, which was offset by additional deferrals during the period. Remaining Performance Obligations The Company's subscription terms typically range from one to four years. Contract revenue as of December 31, 2018 , that has not yet been recognized was approximately $160 million . This excludes contracts with an original expected length of one year or less. The Company expects to recognize revenue on the vast majority of the remaining performance obligation over the next 24 months .

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS9 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTSFAIR VALUE MEASUREMENTS Cash, cash equivalents, and available-for-sale investments (in thousands): Amortized Gross Unrealized Gross Unrealized Estimated Cash and Cash Short-Term As of December 31, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 22,005 $ — $ — $ 22,005 $ 22,005 $ — Level 1: Money market funds 6,320 — — 6,320 6,320 — Subtotal 28,325 — — 28,325 28,325 — Level 2: Corporate debt 59,480 6 (222 ) 59,264 — 59,264 Municipal securities 5,504 1 (4 ) 5,501 — 5,501 Asset backed securities 17,577 5 (50 ) 17,532 — 17,532 Agency bond 4,240 — (30 ) 4,210 — 4,210 Subtotal 86,801 12 (306 ) 86,507 — 86,507 Total assets $ 115,126 $ 12 $ (306 ) $ 114,832 $ 28,325 $ 86,507 Amortized Gross Unrealized Gross Unrealized Estimated Cash and Cash Short-Term As of March 31, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 16,499 $ — $ — $ 16,499 $ 16,499 $ — Level 1: Money market funds 15,204 — — 15,204 15,204 — Subtotal 31,703 — — 31,703 31,703 — Level 2: Commercial paper 13,254 — (8 ) 13,246 — 13,246 Corporate debt 70,631 6 (296 ) 70,341 — 70,341 Municipal securities 3,385 3 (1 ) 3,387 — 3,387 Asset backed securities 27,063 1 (119 ) 26,945 — 26,945 Agency bond 4,183 — (35 ) 4,148 — 4,148 International government securities 2,497 — (5 ) 2,492 — 2,492 Subtotal 121,013 10 (464 ) 120,559 — 120,559 Total assets $ 152,716 $ 10 $ (464 ) $ 152,262 $ 31,703 $ 120,559 Contractual maturities of investments as of December 31, 2018 are set forth below (in thousands): Estimated Fair Value Due within one year $ 35,929 Due after one year 50,578 Total $ 86,507

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL9 Months Ended
Dec. 31, 2018
Intangible Assets, Net (Including Goodwill) [Abstract]
INTANGIBLE ASSETS AND GOODWILLINTANGIBLE ASSETS AND GOODWILL The carrying value of intangible assets consisted of the following (in thousands): December 31, 2018 March 31, 2018 Gross Accumulated Net Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 25,702 $ (14,099 ) $ 11,603 $ 19,702 $ (10,535 ) $ 9,167 Customer relationships 9,307 (7,732 ) 1,575 9,776 (7,366 ) 2,410 Trade names/domains 2,108 (2,013 ) 95 2,108 (1,727 ) 381 In-process research and development 95 (95 ) — 95 (95 ) — Total acquired identifiable intangible assets $ 37,212 $ (23,939 ) $ 13,273 $ 31,681 $ (19,723 ) $ 11,958 At December 31, 2018 , annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount Remaining 2019 $ 1,620 2020 6,100 2021 3,559 2022 1,766 2023 228 Total $ 13,273 The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Total Balance at March 31, 2018 $ 40,054 Additions due to acquisitions 500 Foreign currency translation (1,112 ) Balance at December 31, 2018 $ 39,442

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES9 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIESCOMMITMENTS AND CONTINGENCIES Facility and Equipment Leases The Company leases its headquarters' office space in San Jose, California, and also leases office space under non-cancelable operating leases in various domestic and international locations. During the first quarter of fiscal 2019, as it took control of its new corporate headquarters to begin the build out, the Company began to record additional rent expenses on a straight-line basis. Total rent expense for the three and nine months ended December 31, 2018 was $2.6 million and $7.9 million , respectively. Total rent expense for the three and nine months ended December 31, 2017 was $1.4 million and $4.1 million, respectively. Future minimum annual lease payments as of December 31, 2018 were as follows (in thousands): Amount Remaining 2019 $ 1,476 2020 6,872 2021 8,889 2022 8,782 2023 8,301 Thereafter 54,600 Total $ 88,920 The Company has entered into a series of non-cancelable capital lease agreements for data center and office equipment bearing interest at various rates. Other Commitments, Indemnifications and Contingencies From time to time, the Company receives inquiries from various state and municipal taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions currently are conducting tax audits of the Company's records. The Company collects from its customers or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. During the first nine months of fiscal 2019, the Company determined that additional sales taxes were probable of being assessed and estimable in multiple states as a result of preliminary findings from current sales and use tax audits. As a result, the Company estimated an incremental sales tax liability of $6.5 million, which was recorded as general and administrative expense in the consolidated statements of operations during the first nine months of fiscal 2019. Legal Proceedings The Company from time to time may be involved in a variety of claims, lawsuits, investigations and other proceedings, including patent infringement claims, employment litigation, regulatory compliance matters and contractual disputes, that can arise in the normal course of the Company's operations. On November 30, 2018, the Company was named as a defendant in Rainey Circuit LLC v. 8x8 Inc., by way of a Complaint filed by Plaintiff Rainey Circuit LLC in the District of Delaware (Civil Action No. Case 1:18-cv-01903-MN, the Complaint). The Complaint alleges that the Company infringes U.S. Patent No. 8,131,824 with regards to alleged activities concerning the Company's sales or or uses of a multimedia messaging system as allegedly implemented in connection with the Company’s Virtual Office application. Given the early stage of this lawsuit, it is not possible as of the date of this filing to provide an estimated amount of any loss or range of loss that may occur. Litigation is inherently unpredictable and subject to significant uncertainties, and there can be no assurances that favorable final outcomes will be obtained. The above-referenced lawsuit and future litigation could be costly to defend, could impose significant burdens on employees and cause the diversion of management's attention, and could upon resolution have a material adverse effect on the Company's business, results of operations, financial condition and cash flows.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION9 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATIONSTOCK-BASED COMPENSATION The following tables summarize information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands, except weighted-average grant-date fair value and recognition period): Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Cost of service revenue $ 680 $ 455 $ 1,775 $ 1,319 Research and development 3,570 1,794 8,587 4,445 Sales and marketing 5,590 3,362 13,262 8,577 General and administrative 2,695 2,519 7,950 6,797 Total $ 12,535 $ 8,130 $ 31,574 $ 21,138 Nine Months Ended December 31, 2018 2017 Stock options outstanding at the beginning of the period: 3,998 4,462 Options granted 222 427 Options exercised (641 ) (421 ) Options canceled and forfeited (192 ) (176 ) Options outstanding at the end of the period: 3,387 4,292 Weighted-average fair value of grants during the period $ 8.27 $ 5.30 Total intrinsic value of options exercised during the period $ 9,148 $ 4,312 Weighted-average remaining recognition period at period-end (in years) 2.53 2.14 Stock awards outstanding at the beginning of the period: 5,939 4,950 Stock awards granted 4,993 2,884 Stock awards vested (2,123 ) (1,615 ) Stock awards canceled and forfeited (700 ) (447 ) Stock awards outstanding at the end of the period: 8,109 5,772 Weighted-average fair value of grants during the period $ 20.05 $ 13.89 Weighted-average remaining recognition period at period-end (in years) 2.4 2.67 Total unrecognized compensation expense at period-end $ 112,970 $ 64,625 Stock Repurchases In May 2017, the Company's board of directors authorized the Company to purchase up to $25.0 million of its common stock from time to time (the "2017 Repurchase Plan"). The 2017 Repurchase Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. The remaining amount available under the 2017 Repurchase Plan at December 31, 2018 was approximately $7.1 million . There were no stock repurchases under the 2017 Repurchase Plan during the nine months period ended December 31, 2018 .

INCOME TAXES

INCOME TAXES9 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXESINCOME TAXES The Company's effective tax rate was -1% and -401% for the three months ended December 31, 2018 and 2017 , respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance recorded during the third quarter of fiscal year 2018, the change in pretax profitability, and changes in the Company's geographic mix of profits and losses. The effective tax rate is calculated by dividing the income tax provision by net income (loss) before income tax expense.

NET LOSS PER SHARE

NET LOSS PER SHARE9 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]
NET LOSS PER SHARENET LOSS PER SHARE The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Numerator: Net loss available to common stockholders $ (23,771 ) $ (88,520 ) $ (60,608 ) $ (91,235 ) Denominator: Common shares - basic and diluted 95,370 92,029 94,093 91,709 Net loss per share Basic and diluted $ (0.25 ) $ (0.96 ) $ (0.64 ) $ (0.99 ) The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Stock options 3,387 4,292 3,387 4,292 Stock awards 8,109 5,772 8,109 5,772 Total anti-dilutive shares 11,496 10,064 11,496 10,064

SEGMENT REPORTING AND GEOGRAPHI

SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION9 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]
SEGMENT REPORTING AND GEOGRAPHICAL INFORMATIONGEOGRAPHICAL INFORMATION Prior to September 30, 2018, the Company had two reporting segments: Americas and Europe. During the third fiscal quarter, the Company instituted a change in its chief operating decision maker ("CODM"). The Company has determined the chief executive officer to be its CODM. The Company’s chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single operating segment, and therefore, one reporting segment. The following tables set forth the geographic information for each period (in thousands): Revenue for the Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Americas (principally US) $ 80,584 $ 67,826 $ 232,549 $ 195,342 Europe (principally UK) 9,328 7,749 26,270 21,814 $ 89,912 $ 75,575 $ 258,819 $ 217,156 Property and Equipment December 31, March 31, 2018 2018 Americas (principally US) $ 40,309 $ 27,270 Europe (principally UK) 7,435 8,462 $ 47,744 $ 35,732

ACQUISITIONS

ACQUISITIONS9 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]
ACQUISITIONSACQUISITIONS MarianaIQ On April 12, 2018, the Company entered into an Asset Purchase Agreement with MarianaIQ Inc. (MarianaIQ) for the purchase of certain assets of MarianaIQ to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite. The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years. The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the acquired assets to the overall corporate strategy in addition to the acquired workforce. MarianaIQ did not contribute materially to revenue or net loss for the period of acquisition to December 31, 2018 . Goodwill recognized upon acquisition is expected to be deductible for income tax purposes. Jitsi On October 29, 2018, the Company entered into an Asset Purchase Agreement with Atlassian Corporation PLC (Atlassian) through which the Company purchased certain assets from Atlassian relating to the Jitsi open source video communications technology (Jitsi). The Company intends to integrate Jitsi's video collaboration capabilities into the Company's technology platform to further enhance the Company's video and X Series platform offerings. The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years. The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to the acquired workforce. Jitsi did not contribute materially to revenue or net loss for the period of acquisition to December 31, 2018 . Goodwill recognized upon acquisition is expected to be deductible for income tax purposes.

DESCRIPTION OF BUSINESS AND S_2

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)9 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal PeriodThe Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2019 refers to the fiscal year ending March 31, 2019).
Basis of PresentationThe accompanying interim consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2018 , with the exception of new revenue recognition guidance discussed in the recently adopted accounting principles section below. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting. In the opinion of the Company's management, these interim consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The March 31, 2018 year-end consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by GAAP. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2018 and notes thereto included in the Company's fiscal 2018 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
Principles of ConsolidationThe consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated.
Use of EstimatesUSE OF ESTIMATES The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to bad debts, returns reserve for expected cancellations, income and sales tax liabilities, stock-based compensation, and litigation and other contingencies. The Company bases its estimates on historical experience and on various other assumptions. Actual results could differ from those estimates under different assumptions or conditions.
Accounting Policies and PronouncementsRECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-9, which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required with the revenue recognition process than were required under the previous guidance (ASC 605). The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the modified retrospective method, the comparative periods’ information is not restated and continues to be reported under the accounting standards in effect in those prior periods. Instead, on April 1, 2018, the Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of accumulated deficit and the corresponding balance sheet accounts, which resulted in a net decrease to accumulated deficit of $39.9 million . The impact on the Company’s opening balances primarily relates to the capitalization of additional commission costs under ASC 606 in the amount of $38.2 million . Under ASC 605, the Company expensed all commission costs as incurred. Under ASC 606, the Company defers all incremental commission costs to obtain the contract and amortizes these costs over a benefit period of five years. The remaining $1.7 million impact of adopting the standard relates to revenue being recognized earlier under ASC 606 than it would have been under ASC 605, which resulted in a contract asset as of the adoption date. See Note 2 for additional disclosure on the impact of adopting this standard. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842), along with amendments issued in 2018, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The update also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The update requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. Among the subsequent amendments, an optional transition method was provided. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption to have a material impact to the consolidated balance sheets for the recording of the "right-to-use" asset and corresponding contract liability. The Company is currently scoping the definition of a lease under ASC 842 to determine the "right-to-use" asset and corresponding liability in accordance with the standard. In June 2018, the FASB issued ASU 2018-7, Compensation-Stock Compensation (Topic 718) , which now provides guidance for share-based payments to non-employees, resulting in alignment in accounting for employees and non-employees. The amendment is effective for public companies with fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) , which makes modifications to disclosure requirements on fair value measurements. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. In August 2018, the FASB issued 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40) , which reduces complexity for the accounting for the accounting for costs of implementing a cloud computing service arrangement. The amendment is effective for public companies with fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements.
Revenue Recognition under ACS 606Revenue Recognition under ASC 606 The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions using the five-step model as prescribed by ASC 606: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when or as, the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount the Company expects to be entitled to receive in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. The Company usually bills its customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. The Company occasionally allows a 30-day period to cancel a subscription and return products shipped for a full refund. Judgments and Estimates The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments (MRC) on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, of which both represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices (SSP) of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. Service Revenue Service revenue from subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer. Payments received in advance of subscription services being rendered are recorded as a deferred revenue. Usage fees, either bundled or not bundled, are recognized when the Company has a right to invoice. Professional services for configuration, system integration, optimization, customer training or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, customers may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized over time as the services are rendered. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded as operating expenses against the contract asset (Accounts Receivable). In the normal course of business, the Company records revenue reductions for customer credits. Product Revenue The Company recognizes product revenue for telephony equipment at a point in time, when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience. Contract Assets Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example when the initial month's services or equipment are discounted. Contract assets are included in other current or non-current assets in the consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. Deferred Revenue Deferred revenues represent billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding twelve-month period are recorded as current deferred revenues in the consolidated balance sheets, with the remainder recorded as other non-current liabilities in the consolidated balance sheets. Costs to Obtain a Customer Contract Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as other current or non-current assets and amortized on a straight-line basis over the anticipated benefit period, which is five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. Practical Expedients The new guidance under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, sets forth the requirement of deferring incremental costs of obtaining a contract, typically sales commissions, that were expensed as incurred under the previous guidance. The Company applies a practical expedient that permits it to apply Subtopic 340-40 to a portfolio of contracts, instead of on a contract-by-contract basis, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)9 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Adoption Impact of ACS 606The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the consolidated balance sheet as of April 1, 2018 (in thousands). Balance at Adjustments Balance at Current assets: Deferred sales commission costs $ — $ 11,234 $ 11,234 Other current assets $ 10,040 $ 1,725 $ 11,765 Non-current assets: Deferred sales commission costs $ — $ 26,942 $ 26,942 Stockholders' Equity Accumulated deficit $ (201,464 ) $ 39,901 $ (161,563 ) The following tables summarize the impact of the ASC 606 adoption on the Company's consolidated financial statements for the quarter ended December 31, 2018 . Selected Consolidated Balance Sheet Line Items (in thousands): December 31, 2018 ASC 605 Adjustments (As Reported) ASC 606 Current assets: Deferred sales commission costs $ — $ 14,443 $ 14,443 Other current assets $ 10,023 $ 3,143 $ 13,166 Non-current assets: Deferred sales commission costs $ — $ 30,893 $ 30,893 Stockholders' Equity Accumulated deficit $ (270,649 ) $ 48,479 $ (222,170 ) Selected Consolidated Statement of Operations Line Items (in thousands, except per share amounts): Three Months Ended December 31, 2018 ASC 605 Adjustments (As Reported) ASC 606 Service revenue $ 86,245 $ (334 ) $ 85,911 Product revenue 3,335 666 4,001 Total revenue $ 89,580 $ 332 $ 89,912 Operating expenses: Sales and marketing $ 63,276 $ (2,559 ) $ 60,717 Loss from operations $ (27,129 ) $ 2,891 $ (24,238 ) Net loss $ (26,662 ) $ 2,891 $ (23,771 ) Net loss per share: Basic and Diluted $ (0.28 ) $ 0.03 $ (0.25 ) Nine Months Ended December 31, 2018 ASC 605 Adjustments (As Reported) Service revenue $ 246,030 $ (652 ) $ 245,378 Product revenue 12,522 919 13,441 Total revenue $ 258,552 $ 267 $ 258,819 Operating expenses: Sales and marketing $ 177,186 $ (7,234 ) $ 169,952 Loss from operations $ (69,709 ) $ 7,501 $ (62,208 ) Net loss $ (68,109 ) $ 7,501 $ (60,608 ) Net loss per share: Basic and Diluted $ (0.72 ) $ 0.08 $ (0.64 ) Selected Consolidated Statements of Cash Flows Line Items (in thousands): Nine Months Ended December 31, 2018 ASC 605 Adjustments (As Reported) ASC 606 Net loss $ (68,109 ) $ 7,501 $ (60,608 ) Deferred sales commission costs $ — $ (7,234 ) $ (7,234 ) Other current and non-current assets $ (2,298 ) $ (267 ) $ (2,565 ) Net cash provided by operating activities $ (6,673 ) $ — $ (6,673 )
Contract BalancesThe following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): December 31, 2018 Accounts receivable, net $ 19,068 Other current assets $ 3,143 Deferred revenue - current $ 3,523 Deferred revenue - non-current $ 8 Changes in the contract assets and the deferred revenue balances during the nine months ended December 31, 2018 are as follows (in thousands): April 1, 2018 December 31, 2018 $ Change Other current assets $ 1,725 $ 3,143 $ 1,418 Deferred revenue $ 2,578 $ 3,531 $ 953

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)9 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value MeasurementsCash, cash equivalents, and available-for-sale investments (in thousands): Amortized Gross Unrealized Gross Unrealized Estimated Cash and Cash Short-Term As of December 31, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 22,005 $ — $ — $ 22,005 $ 22,005 $ — Level 1: Money market funds 6,320 — — 6,320 6,320 — Subtotal 28,325 — — 28,325 28,325 — Level 2: Corporate debt 59,480 6 (222 ) 59,264 — 59,264 Municipal securities 5,504 1 (4 ) 5,501 — 5,501 Asset backed securities 17,577 5 (50 ) 17,532 — 17,532 Agency bond 4,240 — (30 ) 4,210 — 4,210 Subtotal 86,801 12 (306 ) 86,507 — 86,507 Total assets $ 115,126 $ 12 $ (306 ) $ 114,832 $ 28,325 $ 86,507 Amortized Gross Unrealized Gross Unrealized Estimated Cash and Cash Short-Term As of March 31, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 16,499 $ — $ — $ 16,499 $ 16,499 $ — Level 1: Money market funds 15,204 — — 15,204 15,204 — Subtotal 31,703 — — 31,703 31,703 — Level 2: Commercial paper 13,254 — (8 ) 13,246 — 13,246 Corporate debt 70,631 6 (296 ) 70,341 — 70,341 Municipal securities 3,385 3 (1 ) 3,387 — 3,387 Asset backed securities 27,063 1 (119 ) 26,945 — 26,945 Agency bond 4,183 — (35 ) 4,148 — 4,148 International government securities 2,497 — (5 ) 2,492 — 2,492 Subtotal 121,013 10 (464 ) 120,559 — 120,559 Total assets $ 152,716 $ 10 $ (464 ) $ 152,262 $ 31,703 $ 120,559
Contractual Maturity of InvestmentsContractual maturities of investments as of December 31, 2018 are set forth below (in thousands): Estimated Fair Value Due within one year $ 35,929 Due after one year 50,578 Total $ 86,507

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)9 Months Ended
Dec. 31, 2018
Intangible Assets, Net (Including Goodwill) [Abstract]
Carrying Value of Intangible AssetsThe carrying value of intangible assets consisted of the following (in thousands): December 31, 2018 March 31, 2018 Gross Accumulated Net Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 25,702 $ (14,099 ) $ 11,603 $ 19,702 $ (10,535 ) $ 9,167 Customer relationships 9,307 (7,732 ) 1,575 9,776 (7,366 ) 2,410 Trade names/domains 2,108 (2,013 ) 95 2,108 (1,727 ) 381 In-process research and development 95 (95 ) — 95 (95 ) — Total acquired identifiable intangible assets $ 37,212 $ (23,939 ) $ 13,273 $ 31,681 $ (19,723 ) $ 11,958
Schedule of Finite-Lived Intangible Assets, Future Amortization ExpenseAt December 31, 2018 , annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount Remaining 2019 $ 1,620 2020 6,100 2021 3,559 2022 1,766 2023 228 Total $ 13,273
Schedule of GoodwillThe following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Total Balance at March 31, 2018 $ 40,054 Additions due to acquisitions 500 Foreign currency translation (1,112 ) Balance at December 31, 2018 $ 39,442

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)9 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease PaymentsFuture minimum annual lease payments as of December 31, 2018 were as follows (in thousands): Amount Remaining 2019 $ 1,476 2020 6,872 2021 8,889 2022 8,782 2023 8,301 Thereafter 54,600 Total $ 88,920

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)9 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Expense and ActivityThe following tables summarize information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands, except weighted-average grant-date fair value and recognition period): Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Cost of service revenue $ 680 $ 455 $ 1,775 $ 1,319 Research and development 3,570 1,794 8,587 4,445 Sales and marketing 5,590 3,362 13,262 8,577 General and administrative 2,695 2,519 7,950 6,797 Total $ 12,535 $ 8,130 $ 31,574 $ 21,138 Nine Months Ended December 31, 2018 2017 Stock options outstanding at the beginning of the period: 3,998 4,462 Options granted 222 427 Options exercised (641 ) (421 ) Options canceled and forfeited (192 ) (176 ) Options outstanding at the end of the period: 3,387 4,292 Weighted-average fair value of grants during the period $ 8.27 $ 5.30 Total intrinsic value of options exercised during the period $ 9,148 $ 4,312 Weighted-average remaining recognition period at period-end (in years) 2.53 2.14 Stock awards outstanding at the beginning of the period: 5,939 4,950 Stock awards granted 4,993 2,884 Stock awards vested (2,123 ) (1,615 ) Stock awards canceled and forfeited (700 ) (447 ) Stock awards outstanding at the end of the period: 8,109 5,772 Weighted-average fair value of grants during the period $ 20.05 $ 13.89 Weighted-average remaining recognition period at period-end (in years) 2.4 2.67 Total unrecognized compensation expense at period-end $ 112,970 $ 64,625

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)9 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and DilutedThe following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Numerator: Net loss available to common stockholders $ (23,771 ) $ (88,520 ) $ (60,608 ) $ (91,235 ) Denominator: Common shares - basic and diluted 95,370 92,029 94,093 91,709 Net loss per share Basic and diluted $ (0.25 ) $ (0.96 ) $ (0.64 ) $ (0.99 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per ShareThe following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Stock options 3,387 4,292 3,387 4,292 Stock awards 8,109 5,772 8,109 5,772 Total anti-dilutive shares 11,496 10,064 11,496 10,064

SEGMENT REPORTING AND GEOGRAP_2

SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION (Tables)9 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by SegmentThe following tables set forth the geographic information for each period (in thousands): Revenue for the Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Americas (principally US) $ 80,584 $ 67,826 $ 232,549 $ 195,342 Europe (principally UK) 9,328 7,749 26,270 21,814 $ 89,912 $ 75,575 $ 258,819 $ 217,156 Property and Equipment December 31, March 31, 2018 2018 Americas (principally US) $ 40,309 $ 27,270 Europe (principally UK) 7,435 8,462 $ 47,744 $ 35,732

DESCRIPTION OF BUSINESS AND S_3

DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details) employee in Thousands, $ in MillionsSep. 30, 2018segmentApr. 01, 2018USD ($)Dec. 31, 2018employeecountrysegmentSep. 30, 2018segment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of countries in which entity operates (more than) | country150
Number of employees (more than) | employee10
Number of reportable segments | segment2 1 2
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Capitalized commission costs $ 38.2
Deferred commission costs, amortization period5 years
Revenue recognized during period $ 1.7
Retained Earnings | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect on retained earnings $ 39.9

REVENUE RECOGNITION - Narrative

REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2018Apr. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract with customer, revenue recognized $ 2.3 $ 5.5
Subscription term24 months
Remaining performance obligation, amount $ 160 $ 160
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Subscription term1 year
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Subscription term4 years
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred commission costs, amortization period5 years

REVENUE RECOGNITION - Adoption

REVENUE RECOGNITION - Adoption Impact of ASC 606 (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017Apr. 01, 2018Mar. 31, 2018
Current assets:
Deferred sales commission costs $ 14,443 $ 14,443 $ 11,234 $ 0
Other current assets13,166 13,166 11,765 10,040
Non-current assets:
Deferred sales commission costs, non-current30,893 30,893 26,942 0
Stockholders' equity:
Accumulated deficit(222,170)(222,170)(161,563)(201,464)
Income Statement Related Disclosures [Abstract]
Total revenue89,912 $ 75,575 258,819 $ 217,156
Sales and marketing60,717 48,830 169,952 131,103
Loss from operations(24,238)(18,247)(62,208)(28,166)
Net loss $ (23,771) $ (88,520) $ (60,608) $ (91,235)
Net loss per share:
Basic and Diluted (in dollars per share) $ (0.25) $ (0.96) $ (0.64) $ (0.99)
Statement of Cash Flows [Abstract]
Net loss $ (23,771) $ (88,520) $ (60,608) $ (91,235)
Deferred sales commission costs(7,234)0
Other current and non-current assets(2,565)(2,315)
Net cash provided by operating activities(6,673)19,378
Service
Income Statement Related Disclosures [Abstract]
Total revenue85,911 71,891 245,378 205,105
Product
Income Statement Related Disclosures [Abstract]
Total revenue4,001 $ 3,684 13,441 $ 12,051
ASC 605
Current assets:
Deferred sales commission costs0 0 0
Other current assets10,023 10,023 10,040
Non-current assets:
Deferred sales commission costs, non-current0 0 0
Stockholders' equity:
Accumulated deficit(270,649)(270,649) $ (201,464)
Income Statement Related Disclosures [Abstract]
Total revenue89,580 258,552
Sales and marketing63,276 177,186
Loss from operations(27,129)(69,709)
Net loss $ (26,662) $ (68,109)
Net loss per share:
Basic and Diluted (in dollars per share) $ (0.28) $ (0.72)
Statement of Cash Flows [Abstract]
Net loss $ (26,662) $ (68,109)
Deferred sales commission costs0
Other current and non-current assets(2,298)
Net cash provided by operating activities(6,673)
ASC 605 | Service
Income Statement Related Disclosures [Abstract]
Total revenue86,245 246,030
ASC 605 | Product
Income Statement Related Disclosures [Abstract]
Total revenue3,335 12,522
Adjustments | Accounting Standards Update 2014-09
Current assets:
Deferred sales commission costs14,443 14,443 11,234
Other current assets3,143 3,143 1,725
Non-current assets:
Deferred sales commission costs, non-current30,893 30,893 26,942
Stockholders' equity:
Accumulated deficit48,479 48,479 $ 39,901
Income Statement Related Disclosures [Abstract]
Total revenue332 267
Sales and marketing(2,559)(7,234)
Loss from operations2,891 7,501
Net loss $ 2,891 $ 7,501
Net loss per share:
Basic and Diluted (in dollars per share) $ 0.03 $ 0.08
Statement of Cash Flows [Abstract]
Net loss $ 2,891 $ 7,501
Deferred sales commission costs(7,234)
Other current and non-current assets(267)
Net cash provided by operating activities0
Adjustments | Accounting Standards Update 2014-09 | Service
Income Statement Related Disclosures [Abstract]
Total revenue(334)(652)
Adjustments | Accounting Standards Update 2014-09 | Product
Income Statement Related Disclosures [Abstract]
Total revenue $ 666 $ 919

REVENUE RECOGNITION - Contract

REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in ThousandsDec. 31, 2018Apr. 01, 2018Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable, net $ 19,068 $ 16,296
Other current assets3,143 $ 1,725
Deferred revenue - current3,523 $ 2,559
Deferred revenue - non-current $ 8

REVENUE RECOGNITION - Changes i

REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands9 Months Ended
Dec. 31, 2018Apr. 01, 2018
Revenue from Contract with Customer [Abstract]
Other current assets $ 3,143 $ 1,725
Deferred revenue3,531 $ 2,578
Change in other current assets1,418
Change in deferred revenue $ 953

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - USD ($) $ in ThousandsDec. 31, 2018Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents $ 28,325 $ 31,703
Accumulated gross unrealized gain, before tax12 10
Accumulated gross unrealized loss, before tax(306)(464)
Debt securities, available-for-sale86,507 120,559
Cash, cash equivalents and debt securities available-for-sale, amortized cost115,126 152,716
Cash, cash equivalents and debt securities available-for-sale114,832 152,262
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents28,325 31,703
Cash and cash equivalents, fair value28,325 31,703
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost86,801 121,013
Accumulated gross unrealized gain, before tax12 10
Accumulated gross unrealized loss, before tax(306)(464)
Debt securities, available-for-sale86,507 120,559
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost13,254
Accumulated gross unrealized gain, before tax0
Accumulated gross unrealized loss, before tax(8)
Debt securities, available-for-sale13,246
Corporate debt | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost59,480 70,631
Accumulated gross unrealized gain, before tax6 6
Accumulated gross unrealized loss, before tax(222)(296)
Debt securities, available-for-sale59,264 70,341
Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost5,504 3,385
Accumulated gross unrealized gain, before tax1 3
Accumulated gross unrealized loss, before tax(4)(1)
Debt securities, available-for-sale5,501 3,387
Asset backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost17,577 27,063
Accumulated gross unrealized gain, before tax5 1
Accumulated gross unrealized loss, before tax(50)(119)
Debt securities, available-for-sale17,532 26,945
Agency bond | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost4,240 4,183
Accumulated gross unrealized gain, before tax0 0
Accumulated gross unrealized loss, before tax(30)(35)
Debt securities, available-for-sale4,210 4,148
International government securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized cost2,497
Accumulated gross unrealized gain, before tax0
Accumulated gross unrealized loss, before tax(5)
Debt securities, available-for-sale2,492
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents22,005 16,499
Cash and cash equivalents, fair value22,005 16,499
Money market funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents6,320 15,204
Cash and cash equivalents, fair value $ 6,320 $ 15,204

FAIR VALUE MEASUREMENTS - Contr

FAIR VALUE MEASUREMENTS - Contractual Maturity of Investments (Details) - USD ($) $ in ThousandsDec. 31, 2018Mar. 31, 2018
Fair Value Disclosures [Abstract]
Due within one year $ 35,929
Due after one year50,578
Total $ 86,507 $ 120,559

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL - Carrying Value of Intangible Assets (Details) - USD ($) $ in ThousandsDec. 31, 2018Mar. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 37,212 $ 31,681
Accumulated Amortization(23,939)(19,723)
Net Carrying Amount13,273 11,958
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount25,702 19,702
Accumulated Amortization(14,099)(10,535)
Net Carrying Amount11,603 9,167
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount9,307 9,776
Accumulated Amortization(7,732)(7,366)
Net Carrying Amount1,575 2,410
Trade names/domains
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount2,108 2,108
Accumulated Amortization(2,013)(1,727)
Net Carrying Amount95 381
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount95 95
Accumulated Amortization(95)(95)
Net Carrying Amount $ 0 $ 0

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in ThousandsDec. 31, 2018Mar. 31, 2018
Intangible Assets, Net (Including Goodwill) [Abstract]
Remaining 2,019 $ 1,620
2,020 6,100
2,021 3,559
2,022 1,766
2,023 228
Net Carrying Amount $ 13,273 $ 11,958

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL - Summary of Changes in Goodwill (Details) $ in Thousands9 Months Ended
Dec. 31, 2018USD ($)
Goodwill [Roll Forward]
Balance at March 31, 2018 $ 40,054
Additions due to acquisitions500
Foreign currency translation(1,112)
Balance at December 31, 2018 $ 39,442

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Rent expense $ 2.6 $ 1.4 $ 7.9 $ 4.1
Income tax examination, incremental sales tax liability $ 6.5

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Lease Payments (Details) $ in ThousandsDec. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remaining 2,019 $ 1,476
2,020 6,872
2,021 8,889
2,022 8,782
2,023 8,301
Thereafter54,600
Total $ 88,920

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense $ 12,535 $ 8,130 $ 31,574 $ 21,138
Cost of service revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense680 455 1,775 1,319
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense3,570 1,794 8,587 4,445
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense5,590 3,362 13,262 8,577
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense $ 2,695 $ 2,519 $ 7,950 $ 6,797

STOCK-BASED COMPENSATION - St_2

STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands9 Months Ended
Dec. 31, 2018Dec. 31, 2017
Stock Option Rollforward
Stock options outstanding at the beginning of the period (in shares)3,998 4,462
Options granted (in shares)222 427
Options exercised (in shares)(641)(421)
Options canceled and forfeited (in shares)(192)(176)
Stock options outstanding at the end of the period (in shares)3,387 4,292
Weighted-average fair value of grants during the period (in dollars per share) $ 8.27 $ 5.30
Total intrinsic value of options exercised during the period $ 9,148 $ 4,312
Weighted-average remaining recognition period at period-end (in years)2 years 6 months 10 days2 years 1 month 20 days
Stock Award Rollforward
Stock awards outstanding at the beginning of the period: (in shares)5,939 4,950
Stock awards granted (in shares)4,993 2,884
Stock awards vested (in shares)(2,123)(1,615)
Stock awards canceled and forfeited (in shares)(700)(447)
Stock awards outstanding at the end of the period: (in shares)8,109 5,772
Weighted-average fair value of grants during the period (in dollars per share) $ 20.05 $ 13.89
Weighted-average remaining recognition period at period-end (in years)2 years 5 months 12 days2 years 8 months 2 days
Total unrecognized compensation expense at period-end $ 112,970 $ 64,625

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - 2017 Repurchase Plan - USD ($)9 Months Ended
Dec. 31, 2018May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized repurchase amount $ 25,000,000
Remaining authorized repurchase amount $ 7,100,000
Stock repurchased during period (in shares)0

INCOME TAXES (Details)

INCOME TAXES (Details)3 Months Ended
Dec. 31, 2018Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate(1.00%)(401.00%)

NET LOSS PER SHARE - Earnings P

NET LOSS PER SHARE - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017
Numerator:
Net loss available to common stockholders $ (23,771) $ (88,520) $ (60,608) $ (91,235)
Denominator:
Common shares - basic and diluted (in shares)95,370 92,029 94,093 91,709
Net loss per share
Basic and diluted (in dollars per share) $ (0.25) $ (0.96) $ (0.64) $ (0.99)

NET LOSS PER SHARE - Antidiluti

NET LOSS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares11,496 10,064 11,496 10,064
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares3,387 4,292 3,387 4,292
Stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares8,109 5,772 8,109 5,772

SEGMENT REPORTING AND GEOGRAP_3

SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION - Narrative (Details) - segmentSep. 30, 2018Dec. 31, 2018Sep. 30, 2018
Segment Reporting [Abstract]
Number of reportable segments2 1 2

SEGMENT REPORTING AND GEOGRAP_4

SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION - Revenues (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Dec. 31, 2018Dec. 31, 2017Dec. 31, 2018Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenue $ 89,912 $ 75,575 $ 258,819 $ 217,156
Americas (principally US)
Segment Reporting Information [Line Items]
Total revenue80,584 67,826 232,549 195,342
Europe (principally UK)
Segment Reporting Information [Line Items]
Total revenue $ 9,328 $ 7,749 $ 26,270 $ 21,814

SEGMENT REPORTING AND GEOGRAP_5

SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION - PPE (Details) - USD ($) $ in ThousandsDec. 31, 2018Mar. 31, 2018
Segment Reporting Information [Line Items]
Property and Equipment, net $ 47,744 $ 35,732
Americas (principally US)
Segment Reporting Information [Line Items]
Property and Equipment, net40,309 27,270
Europe (principally UK)
Segment Reporting Information [Line Items]
Property and Equipment, net $ 7,435 $ 8,462

ACQUISITIONS - Narrative (Detai

ACQUISITIONS - Narrative (Details) - Developed technologyOct. 29, 2018Apr. 12, 2018
MarianaIQ
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, estimated useful life2 years
Finite-lived intangible assets, amortization period2 years
Jitsi
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, estimated useful life2 years
Finite-lived intangible assets, amortization period2 years