Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2019 | May 16, 2019 | Sep. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | 8X8 INC /DE/ | ||
Entity Central Index Key | 0001023731 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2 | ||
Entity Common Stock, Shares Outstanding | 96,287,366 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 276,583 | $ 31,703 |
Short-term investments | 69,899 | 120,559 |
Accounts receivable, net | 20,181 | 16,296 |
Deferred sales commission costs | 15,601 | 0 |
Other current assets | 15,127 | 10,040 |
Total current assets | 397,391 | 178,598 |
Property and equipment, net | 52,835 | 35,732 |
Intangible assets, net | 11,680 | 11,958 |
Goodwill | 39,694 | 40,054 |
Restricted cash | 8,100 | 8,100 |
Deferred sales commission costs, non-current | 33,693 | 0 |
Other assets | 2,965 | 2,767 |
Total assets | 546,358 | 277,209 |
Current liabilities: | ||
Accounts payable | 32,280 | 23,899 |
Accrued compensation | 18,437 | 17,412 |
Accrued taxes | 13,862 | 6,367 |
Deferred revenue | 3,336 | 2,559 |
Other accrued liabilities | 6,790 | 6,026 |
Total current liabilities | 74,705 | 56,263 |
Convertible senior notes, net | 216,035 | 0 |
Non-current liabilities | 6,222 | 2,153 |
Non-current deferred revenue | 6 | 19 |
Total liabilities | 296,968 | 58,435 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value: Authorized: 5,000,000 shares; Issued and outstanding: no shares at March 31, 2019 and 2018 | 0 | 0 |
Common stock, $0.001 par value: Authorized: 200,000,000 shares; Issued and outstanding: 96,119,888 shares and 92,847,354 shares at March 31, 2019 and 2018, respectively | 96 | 93 |
Additional paid-in capital | 506,949 | 425,790 |
Accumulated other comprehensive loss | (7,353) | (5,645) |
Accumulated deficit | (250,302) | (201,464) |
Total stockholders' equity | 249,390 | 218,774 |
Total liabilities and stockholders' equity | $ 546,358 | $ 277,209 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Mar. 31, 2018 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 96,119,888 | 92,847,354 |
Common stock, shares outstanding (in shares) | 96,119,888 | 92,847,354 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Total revenue | $ 352,586 | $ 296,500 | $ 253,388 |
Operating expenses: | |||
Research and development | 62,063 | 36,405 | 28,999 |
Sales and marketing | 177,976 | 133,945 | 98,893 |
General and administrative | 73,563 | 51,851 | 41,875 |
Impairment of goodwill, intangible assets and equipment | 0 | 9,469 | 0 |
Total operating expenses | 443,574 | 338,396 | 260,057 |
Loss from operations | (90,988) | (41,896) | (6,669) |
Other income, net | 2,818 | 3,693 | 1,792 |
Loss before provision (benefit) for income taxes | (88,170) | (38,203) | (4,877) |
Provision (benefit) for income taxes | 569 | 66,294 | (126) |
Net loss | $ (88,739) | $ (104,497) | $ (4,751) |
Net loss per share: | |||
Basic and diluted (in dollars per share) | $ (0.94) | $ (1.14) | $ (0.05) |
Weighted average number of shares: | |||
Basic and diluted (in shares) | 94,533 | 92,017 | 90,340 |
Service revenue | |||
Total revenue | $ 334,438 | $ 280,430 | $ 235,816 |
Operating expenses: | |||
Cost of revenue | 107,192 | 86,244 | 70,576 |
Product revenue | |||
Total revenue | 18,148 | 16,070 | 17,572 |
Operating expenses: | |||
Cost of revenue | $ 22,780 | $ 20,482 | $ 19,714 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (88,739) | $ (104,497) | $ (4,751) |
Other comprehensive income (loss), net of tax | |||
Unrealized gains (losses) on investments in securities | 473 | (259) | 70 |
Foreign currency translation adjustment | (2,181) | 4,256 | (5,528) |
Comprehensive loss | $ (90,447) | $ (100,500) | $ (10,209) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Mar. 31, 2016 | 89,213,205 | ||||
Beginning balance, amount at Mar. 31, 2016 | $ 275,306 | $ 89 | $ 389,260 | $ (4,184) | $ (109,859) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans less withholding taxes (in shares) | 2,576,785 | ||||
Issuance of common stock under stock plans, less withholding taxes | 4,560 | $ 3 | 4,557 | ||
Withholding taxes from stock plans (in shares) | (289,899) | ||||
Withholding taxes from stock plans | (3,004) | $ (1) | (3,003) | ||
Stock-based compensation expense | 21,462 | 21,462 | |||
Income tax benefit from stock-based compensation | 486 | 486 | |||
Unrealized investment gain (loss) | 70 | 70 | |||
Foreign currency translation adjustment | (5,528) | (5,528) | |||
Net loss | (4,751) | (4,751) | |||
Ending balance (in shares) at Mar. 31, 2017 | 91,500,091 | ||||
Ending balance, amount at Mar. 31, 2017 | 288,601 | $ 91 | 412,762 | (9,642) | (114,610) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans less withholding taxes (in shares) | 2,709,990 | ||||
Issuance of common stock under stock plans, less withholding taxes | 2,182 | $ 3 | 2,179 | ||
Repurchases of common stock (in shares) | (1,362,727) | ||||
Repurchases of common stock | (17,934) | $ (1) | (17,933) | ||
Stock-based compensation expense | 28,782 | 28,782 | |||
Income tax benefit from stock-based compensation | 0 | ||||
Unrealized investment gain (loss) | (259) | (259) | |||
Foreign currency translation adjustment | 4,256 | 4,256 | |||
Net loss | (104,497) | (104,497) | |||
Ending balance (in shares) at Mar. 31, 2018 | 92,847,354 | ||||
Ending balance, amount at Mar. 31, 2018 | 218,774 | $ 93 | 425,790 | (5,645) | (201,464) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans less withholding taxes (in shares) | 3,272,534 | ||||
Issuance of common stock under stock plans, less withholding taxes | 4,486 | $ 3 | 4,483 | ||
Stock-based compensation expense | 45,548 | 45,548 | |||
Income tax benefit from stock-based compensation | 0 | ||||
Unrealized investment gain (loss) | 473 | 473 | |||
Foreign currency translation adjustment | (2,181) | (2,181) | |||
Equity component of convertible senior notes, net of issuance costs | 31,128 | 31,128 | |||
Net loss | (88,739) | (88,739) | |||
Ending balance (in shares) at Mar. 31, 2019 | 96,119,888 | ||||
Ending balance, amount at Mar. 31, 2019 | $ 249,390 | $ 96 | $ 506,949 | $ (7,353) | $ (250,302) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (88,739) | $ (104,497) | $ (4,751) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation | 8,748 | 8,171 | 6,084 |
Amortization of intangibles | 6,175 | 5,033 | 3,762 |
Impairment of goodwill and long-lived assets | 0 | 9,469 | 15 |
Amortization of capitalized software | 9,748 | 2,513 | 591 |
Amortization of debt discount and issuance costs | 1,355 | 0 | 0 |
Amortization of deferred sales commission costs | 14,204 | 0 | 0 |
Non-cash lease expense | 4,802 | 0 | 0 |
Stock-based compensation expense | 44,508 | 29,176 | 21,462 |
Tax benefit from stock-based compensation expense | 0 | 0 | (486) |
Deferred income tax expense (benefit) | 0 | 66,273 | (411) |
Gain on escrow settlement | 0 | (1,393) | 0 |
Other | 1,293 | 677 | 1,196 |
Changes in assets and liabilities: | |||
Accounts receivable | (5,393) | (2,402) | (4,799) |
Deferred sales commission costs | (25,286) | 0 | 0 |
Other current and noncurrent assets | (4,337) | (3,149) | (2,515) |
Accounts payable and accruals | 17,252 | 11,860 | 8,135 |
Deferred revenue | 802 | 310 | 195 |
Net cash (used in) provided by operating activities | (14,868) | 22,041 | 28,478 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (9,096) | (9,178) | (8,851) |
Cost of capitalized software | (25,622) | (12,486) | (5,516) |
Proceeds from escrow settlement | 0 | 1,393 | 0 |
Purchases of investments | (54,127) | (115,224) | (140,026) |
Sales of investments | 54,642 | 27,841 | 41,288 |
Proceeds from maturities of investments | 50,700 | 100,382 | 93,795 |
Acquisition of businesses, net of cash acquired | (5,625) | 0 | (2,884) |
Net cash provided by (used in) investing activities | 10,872 | (7,272) | (22,194) |
Cash flows from financing activities: | |||
Capital lease payments | (949) | (1,079) | (674) |
Payment of contingent consideration | 0 | (150) | (300) |
Repurchase of common stock, including for withholding taxes | (7,823) | (22,440) | (3,003) |
Tax benefit from stock-based compensation expense | 0 | 0 | 486 |
Proceeds from issuance of common stock under employee stock plans | 12,202 | 7,229 | 5,087 |
Purchases of capped call | (33,724) | 0 | 0 |
Net proceeds from issuance of convertible senior notes | 279,532 | 0 | 0 |
Net cash provided by (used in) financing activities | 249,238 | (16,440) | 1,596 |
Effect of exchange rate changes on cash | (362) | 444 | (426) |
Net increase (decrease) in cash and cash equivalents | 244,880 | (1,227) | 7,454 |
Cash, cash equivalents and restricted cash, beginning of year | 39,803 | 41,030 | 33,576 |
Cash, cash equivalents and restricted cash, end of year | 284,683 | 39,803 | 41,030 |
Supplemental and non-cash disclosures: | |||
Equipment acquired under capital leases | 68 | 765 | 1,152 |
Interest paid | 0 | 36 | 16 |
Income taxes paid | $ 356 | $ 38 | $ 460 |
THE COMPANY AND SIGNIFICANT ACC
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 1. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES THE COMPANY 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996 . The Company is a leading cloud provider of enterprise Software-as-a-Service (SaaS) communications solutions, that enable businesses of all sizes to communicate faster and smarter across voice, video meetings, chat and contact centers, transforming both employee and customer experiences with communications that work simply, integrate seamlessly, and perform reliably. From one proprietary cloud technology platform, customers have access to unified communications, team collaboration, video conferencing, contact center, data and analytics and other services. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors. 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 ended March 31, 2019 ). Acquisitions In January 2017, the Company entered into an agreement with the preferred and common shareholders LeChat Inc. pursuant to which the Company purchased technology and other assets to enable cross team messaging and collaboration within the Company's cloud technology platform. 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 12 for further discussion. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Reclassifications Certain amounts previously reported as selling and marketing expenses have been reclassified to cost of sales, research and development expenses, and general and administrative expenses within the consolidated statements of operations to conform to the current period presentation. The reclassification had no impact on the Company's previously reported net loss, cash flows, or basic or diluted net loss per share amounts. See Note 14 for further information. 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, 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. REVENUE RECOGNITION 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 ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), as amended: Topic 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 to the end of the contractual period. This ratable basis depicts the continuous access to the Company's services. 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. Deferred Sales Commission Costs Sales commissions 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 Customer s, 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. CASH, CASH EQUIVALENTS AND INVESTMENTS The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At March 31, 2019 and 2018 , all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of one major financial institution. ACCOUNTS RECEIVABLE ALLOWANCE The Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, and communications with its customers. Amounts are written off only after considerable collection efforts have been made and the amounts are determined to be uncollectible. PROPERTY AND EQUIPMENT Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, software and software development costs and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements. Maintenance, repairs and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the Consolidated Statements of Operations. Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2019 and 2018. ACCOUNTING FOR LONG-LIVED ASSETS The Company reviews the recoverability of its long-lived assets, such as property and equipment, definite lived intangibles or capitalized software, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. See Note 4 for further discussion on impairment charges incurred. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. For the year ended March 31, 2018, the Company had determined that it had three reporting units and allocated goodwill to the reporting units for the purposes of its annual impairment test. For the year ended March 31, 2019, the Company has determined it had one reporting unit. The change in reporting units resulted from the following events: • As of April 1, 2018, The Company's DXI operations no longer operated on a standalone basis and was integrated into the Company's existing United Kingdom operations, and • During the third fiscal quarter of 2019, the Company assessed it had only one Chief Operating Decision Maker, who reviewed financial results on a consolidated basis. See Note 11 for further discussion. The Company's annual goodwill impairment test is performed on January 1 each year. No goodwill impairment charges were recorded in the periods presented. The Company early adopted the provisions of ASU 2017-04, Simplifying the Test for Goodwill , for its annual impairment test. See Recently Adopted Accounting Pronouncements for further discussion. Intangible assets with finite useful lives are amortized on a straight-line basis over the periods benefited. Amortization expense for the customer relationship intangible asset is included in sales and marketing expenses. Amortization expense for acquired technology, software or internally developed software is included in cost of service revenue. CONVERTIBLE SENIOR NOTES In accounting for the issuance of the convertible senior notes (the Notes), the Notes were separated into liability and equity components. The carrying amounts of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective Notes. This difference represents the debt discount that is amortized to interest expense over the respective terms of the Notes using the effective interest rate method. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the accounting requirements for equity classification. In accounting for the debt issuance costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on their relative fair values. Issuance costs attributable to the liability component are being amortized to interest expense over the contractual term of the Notes. The issuance costs attributable to the equity component, representing the conversion option, were netted against the equity component in additional paid-in capital. WARRANTY EXPENSE The Company accrues for estimated product warranty cost upon revenue recognition. Accruals for product warranties are calculated based on the Company's historical warranty experience adjusted for any specific requirements. The Company's warranty accruals are recorded in current other accrued liabilities in the consolidated balance sheets. RESEARCH & DEVELOPMENT AND SOFTWARE DEVELOPMENT COSTS Software developed or obtained for internal use in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), is capitalized during the application development stage. In accordance with authoritative guidance, the Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Once the project has been completed, these costs are amortized to cost of service revenue on a straight - line basis over the estimated useful life of the related asset, generally estimated to be three years . Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on our consolidated statements of operations. The Company classifies software development costs associated with the development of the Company's products and services as property and equipment. ADVERTISING COSTS Advertising costs are expensed as incurred and were $25.0 million , $14.5 million and $9.5 million for the years ended March 31, 2019 , 2018 and 2017 , respectively. FOREIGN CURRENCY TRANSLATION The Company has determined that the functional currency of each of its foreign subsidiaries are the subsidiary's local currency. The Company believes this most appropriately reflects the current economic facts and circumstances of the Company's subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period, and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity. SEGMENT INFORMATION The Company has determined the chief executive officer is its chief operating decision maker. The chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The Company has determined that it operates in a single reportable segment. CONCENTRATIONS Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments. The Company sells its products to business customers and distributors. The Company performs ongoing credit evaluations of its customers' financial condition and generally does not require collateral from its customers. At March 31, 2019 and 2018 , no customer accounted for more than 10% of accounts receivable. The Company purchases all of its hardware products from suppliers that manufacturer the hardware directly. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows. The Company also relies primarily on third-party network service providers to provide telephone numbers and PSTN call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The accounting guidance for fair value measurement requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: • Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). • Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions. The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments and convertible senior notes payable are carried at fair value. ACCOUNTING FOR STOCK-BASED COMPENSATION The Company accounts for its employee stock options and other stock awards under the provisions of ASC 718 - Stock Compensation . Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant), net of estimated forfeitures. To value option grants the Company uses the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. The Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rates were based on the closing market bid yields of actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history of not paying dividends. The Company issued performance stock units (PSUs) to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2019 : • These PSUs vest (1) 50% on October 23, 2020 and (2) 50% on October 23, 2021, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR), such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche. The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2018 : • These PSUs vest (1) 50% on September 22, 2018 and (2) 50% on September 27, 2019, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR), such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% , relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche. To value these market-based PSUs under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant. Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the NASDAQ Composite Index, risk-free interest rates, and future dividend payments. RESEARCH AND DEVELOPMENT COSTS Research and development expenses consist primarily of personnel, consulting and equipment costs necessary for the Company to conduct development and engineering efforts. Research and development costs are expensed as incurred. COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale. NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options, employee shares purchase programs (ESPP), and restricted stock units (RSUs). The Company would include the dilutive effects of the Convertible Senior Notes (the Notes) (see Note 7) in the calculation of diluted net income per common share if the average market price is above the conversion price. Upon conversion of the Notes, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the Notes being converted, therefore, only the conversion spread relating to the Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive. DEFERRED RENT The Company recognizes rent expense on a straight-line basis for all operating lease arrangements with the difference between required lease payments and rent expense recorded as deferred rent. The difference results from rent holidays, rent escalations and tenant improvement allowances, which are amortized over the lease term. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued ASC 606-Revenue from Contracts with Customers (ASC 606), which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. On April 1, 2018, the Company adopted ASC 606 using the modified retrospective method and applied Topic 606 to those contracts which were not completed as of April 1, 2018. Under the modified r |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 11 for more information. Contract Balances The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): March 31, 2019 Accounts receivable, net $ 20,181 Other current assets $ 5,717 Deferred revenue - current $ 3,336 Deferred revenue - non-current $ 6 Changes in the contract assets and the deferred revenue balances during the twelve months ended March 31, 2019 are as follows (in thousands): April 1, 2018 March 31, 2019 $ Change Other current assets $ 1,725 $ 5,717 $ 3,992 Deferred revenue $ 2,578 $ 3,342 $ 764 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 approximately $ 2.5 million recognized during the year ended March 31, 2019 were included in the contract liabilities balance at April 1, 2018. Remaining Performance Obligations The Company's subscription terms typically range from one to four years . Contract revenue as of March 31, 2019 , that has not yet been recognized was approximately $170.0 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 MEASUREMENTS | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash, cash equivalents and available-for-sale investments were (in thousands): As of March 31, 2019 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 25,364 $ — $ — $ 25,364 $ 25,364 $ — Level 1: Money market funds 251,219 — — 251,219 251,219 — Subtotal 276,583 — — 276,583 276,583 — Level 2: Corporate debt 46,516 51 (29 ) 46,538 — 46,538 Municipal securities 5,511 17 — 5,528 — 5,528 Asset backed securities 13,596 9 (17 ) 13,588 — 13,588 Agency bond 4,260 — (15 ) 4,245 — 4,245 Subtotal 69,883 77 (61 ) 69,899 — 69,899 Total assets $ 346,466 $ 77 $ (61 ) $ 346,482 $ 276,583 $ 69,899 As of March 31, 2018 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term 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 Asset backed securities 3,385 3 (1 ) 3,387 — 3,387 Mortgage backed securities 27,063 1 (119 ) 26,945 — 26,945 Agency bond 4,183 — (35 ) 4,148 — 4,148 Subtotal 121,013 10 (464 ) 120,559 — 120,559 Total assets $ 152,716 $ 10 $ (464 ) $ 152,262 $ 31,703 $ 120,559 As of March, 31, 2019, the estimated fair value of the Company's outstanding convertible senior notes (the Notes) was $216.0 million . The fair value of the Notes was determined based on the closing price for the Notes on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy. Contractual maturities of investments as of March 31, 2019 are set forth below (in thousands): Estimated Fair Value Due within one year $ 32,385 Due after one year 37,514 Total $ 69,899 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): March 31, 2019 2018 Computer equipment $ 34,706 $ 29,761 Software development costs 39,131 20,144 Software licenses 9,713 8,663 Leasehold improvements 6,286 6,573 Furniture and fixtures 2,324 1,637 Construction in progress 10,071 2,394 102,231 69,172 Less: accumulated depreciation and amortization (49,396 ) (33,440 ) $ 52,835 $ 35,732 |
INTANGIBLE ASSETS, GOODWILL AND
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS | INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS The carrying value of intangible assets consisted of the following (in thousands): March 31, 2019 March 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 25,702 $ (15,409 ) $ 10,293 $ 19,702 $ (10,535 ) $ 9,167 Customer relationships 9,467 (8,080 ) 1,387 9,776 (7,366 ) 2,410 Trade names/domains 2,108 (2,108 ) — 2,108 (1,727 ) 381 Total acquired identifiable intangible assets $ 37,372 $ (25,692 ) $ 11,680 $ 31,681 $ (19,723 ) $ 11,958 At March 31, 2019 , annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount 2020 $ 6,116 2021 3,569 2022 1,766 2023 229 Total $ 11,680 Impairment of Long-Lived Assets and Goodwill During the third quarter of fiscal year 2018, the Company changed its product and marketing strategy for the use of DXI's technology and re-assessed DXI's profitability outlook. This triggered the requirement that the Company test the recorded goodwill for impairment in accordance with ASC 350-20-35. First, the Company estimated the fair value of its three reporting units at the time using the market approach. Under the market approach, the Company utilized the market capitalization of its publicly-traded shares and comparable company information to determine revenue multiples which were used to determine the fair value of the reporting unit. Based on this approach, the Company determined that there was an indication of impairment only for its DXI reporting unit, which was within the Company's Europe reporting segment, as the carrying value including goodwill exceeded the estimated fair value. As largely independent cash flows could not be attributed to any assets individually the Company evaluated DXI's assets and liabilities as one asset group. Then the Company estimated the fair value of DXI's asset group using discounted cash flow methods to determine the implied fair value of goodwill. The difference between this implied fair value of the goodwill and its carrying value was recorded as impairment. The outcome of the analysis resulted in a non-cash expense for impairment of property and equipment, intangible assets and goodwill of $0.3 million , $1.2 million , $8.0 million , respectively, which was recorded during the third quarter of fiscal year 2018 as a separate line item in the Company's Consolidated Statements of Operations. The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Total Balance at March 31, 2017 46,136 Impairment loss (8,036 ) Foreign currency translation 1,954 Balance at March 31, 2018 40,054 Balance at Additions due to acquisitions 500 Foreign currency translation (860 ) Balance at March 31, 2019 39,694 Deferred Sales Commission Costs Amortization expense for the deferred sales commission costs for the year ended March 31, 2019, was $14.2 million . Prior to the adoption of ASC 606, the Company did not defer sales commission costs. There were no impairment losses relative to the costs capitalized for the year ended March 31, 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. Product Warranties The Company accrues for the estimated costs that may be incurred under its product warranties upon revenue recognition. Operating Leases The Company's operating lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements, which expire on various dates from fiscal 2020 through fiscal 2026. The Company leases its headquarters facility in San Jose, California under an operating lease agreement that expires in October 2019. On January 23, 2018, the Company entered into a 132 -month lease to rent approximately 162,000 square feet of office space in a new building in San Jose, California. The lease term began on January 1, 2019. In connection with the lease, the Company procured a standby letter of credit (LOC) in the amount of $8.1 million for the benefit of the landlord, which may be drawn down in the event the Company defaults in the payment of its obligations under the lease. The LOC is disclosed as restricted cash on the Company's consolidated balance sheets for the year ending March 31, 2019. On April 30, 2019, the Company entered into an assignment and assumption of lease agreement (the "Agreement") with the landlord and a third party lessee, to assign to the third party lessee its rights and obligations under the new office space lease. Pursuant to the Agreement, the Company expects to be released from all of its obligations under the lease and related LOC by the end of the Company’s fiscal year ending March 31, 2022 or shortly thereafter. At March 31, 2019 , future total minimum annual lease payments under non-cancelable operating leases were as follows (in thousands): Year ending March 31: 2020 $ 7,143 2021 8,907 2022 8,797 2023 1,556 2024 1,140 Thereafter 2,279 Total $ 29,822 Rent expense for the years ended March 31, 2019 , 2018 and 2017 was $10.6 million , $5.6 million and $5.1 million , respectively. Capital Leases The Company has non-cancelable capital lease agreements for office and computer equipment bearing interest at various rates. At March 31, 2019 , future minimum annual lease payments under non-cancelable capital leases were as follows (in thousands): Year ending March 31: 2020 $ 436 2021 64 2022 19 2023 15 2024 15 Total minimum payments 549 Less: Amount representing interest (15 ) 534 Less: Short-term portion of capital lease obligations (424 ) Long-term portion of capital lease obligations $ 110 Capital leases included in computer and office equipment were approximately $3.4 million and $3.5 million at March 31, 2019 and 2018 , respectively. Total accumulated amortization was approximately $2.8 million and $1.8 million at March 31, 2019 and 2018 , respectively. Minimum Third-Party Customer Support Commitments The Company's contract with third-party customer support vendors include minimum monthly commitments and the requirements to maintain the service level for several months. The total contractual minimum commitments were approximately $1.1 million at March 31, 2019 . Minimum Third-Party Network Service Provider Commitments The Company entered into contracts with multiple vendors for third-party network service which expire on various dates through fiscal 2021. At March 31, 2019 , future minimum annual payments under these third-party network service contracts were approximately $1.9 million . Legal Proceedings The Company may be involved in various lawsuits, claims and proceedings, including intellectual property, commercial, securities and employment matters that arise in the normal course of business. The Company accrues a liability when management believes information available prior to the issuance of the financial statements indicates it is probable a loss has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The Company adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Legal costs are expensed as incurred. 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 uses of a multimedia messaging system as allegedly implemented in connection with the Company’s Virtual Office application. The Company has a membership with a defensive patent acquisition network (third-party). The third-party negotiated a license covering the Company, and on February 26, 2019, Rainey Circuit LLC dismissed the Complaint against the Company with prejudice. The Company believes it has recorded adequate provisions for any such lawsuits, claims and proceedings and, as of March 31, 2019, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in the Consolidated Financial Statements. Based on its experience, the Company believes that damage amounts claimed in these matters are not meaningful indicators of potential liability. Some of the matters pending against the Company involve potential compensatory, punitive or treble damage claims or sanctions, that, if granted, could require the Company to pay damages or make other expenditures in amounts that could have a material adverse effect on its Consolidated Financial Statements. Given the inherent uncertainties of litigation, the ultimate outcome of the ongoing matters described herein cannot be predicted with certainty. While litigation is inherently unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it. Nevertheless, the Consolidated Financial Statements could be materially adversely affected in a particular period by the resolution of one or more of these contingencies. State and Local Taxes and Surcharges From time to time, the Company has received inquiries from a number of state and local 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 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 second quarter of fiscal 2019, the Company conducted a periodic review of the taxability of its services and determined that certain services may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. Accordingly, the Company recorded contingent indirect tax liabilities. As of March 31, 2019 and 2018, the Company had accrued contingent indirect tax liabilities of $8.0 million and $0.8 million , respectively. Other Commitments, Indemnifications and Contingencies During the year ended March, 31, 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 $7.2 million , which was recorded as general and administrative expense in the consolidated statements of operations during fiscal 2019. |
CONVERTIBLE SENIOR NOTES AND CA
CONVERTIBLE SENIOR NOTES AND CAPPED CALL | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES AND CAPPED CALL | CONVERTIBLE SENIOR NOTES AND CAPPED CALL Convertible Senior Notes In February 2019, the Company issued $287.5 million aggregate principal amount of 0.50% convertible senior notes (the Notes) due 2024 in a private placement, including the exercise in full of the initial purchasers' option to purchase additional notes. The Notes are senior unsecured obligations of the Company and interest is payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2019. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. The total net proceeds from the debt offering, after deducting initial purchase discounts, debt issuance costs, and costs of the capped call transactions described below, were approximately $245.8 million . Each $1,000 principal amount of the Notes is initially convertible into 38.9484 shares of the Company’s common stock, par value $0.001 , which is equivalent to an initial conversion price of approximately $25.68 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid interest. In addition, upon the occurrence of certain corporate events that occur prior to the maturity date or following the Company's issuance of a notice of redemption , in each case as described in the Indenture, the Company will, in certain circumstances, increase the conversion rate for a holder that elects to convert its Notes in connection with such a corporate event or during the relevant redemption period. Prior to the close of business on the business day immediately preceding October 1, 2023, the Notes will be convertible only under the following circumstances: 1. At any time during any calendar quarter commencing after the fiscal quarter ending on June 30, 2019 (and only during such calendar quarter), if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; 2. During the five business day period immediately after any ten consecutive trading day period (the measurement period), if the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock on each such trading day and the conversion rate on each such trading day; 3. If the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or 4. Upon the occurrence of specified corporate events (as set forth in the indenture governing the Notes). On or after October 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, regardless of the foregoing circumstances. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at the Company's election. The Company’s current intent is to settle the principal amount of the Notes in cash upon conversion. During the year ended March 31, 2019, the conditions allowing holders of the Notes to convert were not met. The Company may not redeem the Notes prior to February 4, 2022. On or after February 4, 2022, the Company may redeem for cash all or part of the Notes, at the redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice. If a fundamental change (as defined in the indenture governing the notes) occurs at any time, holders of Notes may require the Company to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Notes are senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment with the Company’s existing and future liabilities that are not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of current or future subsidiaries of the Company. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $66.7 million and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not remeasured as long as it continues to meet the accounting requirements for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense at the effective interest rate of 6.5% over the contractual terms of the Notes. In accounting for the transaction costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were $0.6 million were recorded as additional debt discount to be amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The net carrying amount of the liability component of the Notes was as follows (in thousands): March 31, 2019 Principal $ 287,500 Unamortized debt discount (70,876 ) Unamortized issuance costs (589 ) Net carrying amount $ 216,035 The net carrying amount of the equity component of the Notes was as follows (in thousands): March 31, 2019 Debt discount for conversion option $ 66,700 Issuance costs (1,848 ) Net carrying amount $ 64,852 Interest expense related to the Notes was as follows (in thousands): March 31, 2019 Contractual interest expense $ 156 Amortization of debt discount 1,343 Amortization of issuance costs 11 Total interest expense $ 1,510 Capped Call In connection with the pricing of the Notes, the Company entered into privately negotiated capped call transactions (Capped Calls) with certain counterparties. The Capped Calls each have an initial strike price of approximately $25.68 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $39.50 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Common Stock upon any conversion of the Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 11.2 million shares of the Company’s Common Stock. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the Company, including merger events, tender offers and announcement events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $33.7 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured. The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Notes was as follows (in thousands): March 31, 2019 Conversion option $ 66,700 Payments for capped call transactions (33,724 ) Issuance costs (1,848 ) Total 31,128 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY In May 2006, the Company's board of directors approved the 2006 Stock Plan ("2006 Plan"). The Company's stockholders subsequently adopted the 2006 Plan in September 2006, and became effective in October 2006. The Company reserved 7,000,000 shares of the Company's common stock for issuance under this plan. The 2006 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2006 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options generally vest over four years and expire ten years after grant. In 2009, the 2006 Plan was amended to provide for the granting of stock purchase rights. The 2006 Plan expired in May 2016. As of March 31, 2019, there are no shares available for future grants under the 2006 Plan. 2012 Equity Incentive Plan In June 2012, the Company's board of directors approved the 2012 Equity Incentive Plan ("2012 Plan"). The Company's stockholders subsequently adopted the 2012 Plan in July 2012, and became effective in August 2012. The Company reserved 4,100,000 shares of the Company's common stock for issuance under this plan. In August 2014, 2016 and 2018, the 2012 Plan was amended to allow for an additional 6,800,000 , 4,500,000 and 16,300,000 shares reserved for issuance, respectively. The 2012 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards and stock grants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2012 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options, restricted stock and restricted stock units generally vest over four years and expire ten years after grant. The 2012 Plan expires in June 2022. As of March 31, 2019 , 10.7 million shares remained available under the 2012 Plan. 2013 New Employee Inducement Incentive Plan In September 2013, the Company's board of directors approved the 2013 New Employee Inducement Incentive Plan ("2013 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In November 2014, the 2013 Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In July 2015, the Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. In connection with its approval of the August 2016 amendments to the 2012 Plan, the Board of Directors has approved the suspension of future grants under the 2013 Plan, which became effective immediately upon stockholder approval of the proposed 2012 Plan amendments in August 2016. In addition, the 2013 Plan was amended to reduce the number of shares reserved for issuance under the 2013 Plan to the number of shares that are then subject to outstanding awards under the 2013 Plan, leaving no shares available for future grant. The 2013 Plan provided for granting non-statutory stock options, stock appreciation rights, restricted stock, restricted stock and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options were granted at market value on the grant date under the 2013 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over four years and expire ten years after grant. 2017 New Employee Inducement Incentive Plan In October 2017, the Company's board of directors approved the 2017 New Employee Inducement Incentive Plan ("2017 Plan"). The Company reserved 1,000,000 shares of the Company's common stock for issuance under this plan. In January and June 2018 , the 2017 Plan was amended to allow for an additional 1,500,000 and 1,500,000 shares reserved for issuance, respectively. The 2017 Plan provides for granting non-statutory stock options, stock appreciation rights, restricted stock, and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options are granted at market value on the grant date under the 2017 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over three years and expire ten years after grant. As of March 31, 2019 , 0.6 million shares remained available under the 2017 plan. Stock-Based Compensation The following table summarizes stock-based compensation expense (as reclassified, see Note 14, in thousands): Years Ended March 31, 2019 2018 2017 Cost of service revenue $ 5,527 $ 3,977 $ 3,308 Cost of product revenue — — — Research and development 12,313 6,625 3,762 Sales and marketing 11,951 6,630 5,334 General and administrative 14,717 11,944 9,058 Total $ 44,508 $ 29,176 $ 21,462 Stock Options, Stock Purchase Right and Restricted Stock Unit Activity Stock option activity under all the Company's stock option plans since March 31, 2016 , is summarized as follows: Number of Shares Weighted Average Exercise Price Per Share Outstanding at March 31, 2016 4,793,266 $ 6.29 Granted 407,392 14.63 Exercised (603,998 ) 2.34 Canceled/Forfeited (134,248 ) 8.41 Outstanding at March 31, 2017 4,462,412 7.52 Granted 609,135 14.95 Exercised (773,897 ) 3.95 Canceled/Forfeited (299,365 ) 13.05 Outstanding at March 31, 2018 3,998,285 8.93 Granted 236,799 21.65 Exercised (759,884 ) 7.70 Canceled/Forfeited (361,129 ) 15.41 Outstanding at March 31, 2019 3,114,071 $ 9.45 Vested and expected to vest March 31, 2019 3,114,071 $ 9.45 Exercisable at March 31, 2019 2,737,032 $ 8.33 Stock Purchase Right activity since March 31, 2016 is summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2016 82,171 $ 6.30 0.76 Granted — — Vested and released (69,426 ) 6.00 Forfeited (1,375 ) 6.72 Balance at March 31, 2017 11,370 8.10 1.09 Granted — — Vested and released (6,395 ) 8.26 Forfeited — — Balance at March 31, 2018 4,975 8.10 1.09 Granted — — Vested and released (4,625 ) 7.88 Forfeited (350 ) 7.88 Balance at March 31, 2019 — $ — Restricted stock unit activity since March 31, 2016 is summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2016 4,544,799 $ 8.08 1.67 Granted 2,491,877 15.15 Vested and released (1,600,831 ) 7.89 Forfeited (496,795 ) 9.56 Balance at March 31, 2017 4,939,050 11.57 1.55 Granted 3,481,870 14.41 Vested and released (1,833,038 ) 10.27 Forfeited (652,339 ) 12.73 Balance at March 31, 2018 5,935,543 13.51 1.60 Granted 5,726,787 19.77 Vested and released (2,399,371 ) 12.87 Forfeited (1,442,471 ) 16.85 Balance at March 31, 2019 7,820,488 $ 17.68 1.35 The total intrinsic value of options exercised in the years ended March 31, 2019, 2018 and 2017 was $10.0 million , $9.0 million and $7.2 million , respectively. As of March 31, 2019, there was $107 million of unamortized stock-based compensation expense related to unvested stock options and awards which is expected to be recognized over a weighted average period of approximately 2.3 years . 1996 Employee Stock Purchase Plan The Company's 1996 Stock Purchase Plan ("Employee Stock Purchase Plan") was adopted in June 1996 and became effective upon the closing of the Company's initial public offering in July 1997. Under the Employee Stock Purchase Plan, 500,000 shares of common stock were initially reserved for issuance. At the start of each fiscal year, the number of shares of common stock subject to the Employee Stock Purchase Plan increases so that 500,000 shares remain available for issuance. In May 2006, the Company's board of directors approved a ten -year extension of the Employee Stock Purchase Plan. Stockholders approved a ten -year extension of the Employee Stock Purchase Plan at the 2006 Annual Meeting of Stockholders held September 18, 2006. The Board of Directors approved a second ten -year extension in May 2017. Stockholders approved the second ten -year extension in August 2017. As a result of these extensions, the Employee Stock Purchase Plan is effective until August 2027. During fiscal 2019 , 2018 and 2017 , approximately $0.5 million , $0.4 million and $0.3 million shares, respectively, were issued under the Employee Stock Purchase Plan. The Employee Stock Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each two -year offering period or the end of a six month purchase period, whichever is lower. When the Employee Stock Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two years to one year . The contribution amount may not exceed ten percent of an employee's base compensation, including commissions, but not including bonuses and overtime. In the event of a merger of the Company with or into another corporation or the sale of all or substantially all of the assets of the Company, the Employee Stock Purchase Plan provides that a new exercise date will be set for each purchase right under the plan which exercise date will occur before the date of the merger or asset sale. As of March 31, 2019 , there was approximately $1.8 million of total unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.6 years. Assumptions Used to Calculate Stock-Based Compensation Expense The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Years Ended March 31, 2019 2018 2017 Expected volatility 41 % 41 % 44 % Expected dividend yield — — — Risk-free interest rate 2.5% to 3.0% 1.8% to 2.4% 1.1% to 2.2% Weighted average expected term (in years) 4.5 years 4.8 years 4.9 years Weighted average fair value of options granted $ 8.19 $ 5.70 $ 5.74 The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: Years Ended March 31, 2019 2018 2017 Expected volatility 41 % 40 % 37 % Expected dividend yield — — — Risk-free interest rate 2.43 % 1.33 % 0.65 % Weighted average expected term (in years) 0.8 years 0.8 years 0.8 years Weighted average fair value of rights granted $ 5.74 $ 4.10 $ 4.19 Stock Repurchases In October 2015, the Company's board of directors authorized the Company to purchase an additional $15.0 million of its common stock from time to time until October 20, 2016 under the 2015 Repurchase Plan. The plan expired in October 2016 with an unused authorized repurchase amount of $15.0 million . In May 2017, the Company's board of directors authorized the Company to purchase $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "2017 Plan"). The 2017 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 Plan at March 31, 2019 was approximately $7.1 million . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Tax Cuts and Jobs Act ("Tax Act") was enacted on December 22, 2017. Among numerous provisions, the Tax Act reduces the U.S. federal corporate tax rate from 35% t o 21% , requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% . Accordingly, deferred tax assets were adjusted down by about $23 million in the period ended December 31, 2017. However, because the Company recorded a full valuation allowance during the year ended December 31, 2018, the decrease in deferred tax assets from the tax rate change was fully offset by a corresponding decrease in valuation allowance, and therefore, resulted in no impact to the tax expense. The one-time transition tax is based on the Company's total post-1986 earnings and profits for which U.S. income taxes have been previously deferred. The Company recorded no one-time transition tax liability for its foreign subsidiaries as the Company's calculations concluded it does not have any untaxed foreign accumulated earnings as of the measurement date. The Company has made an accounting policy election to treat Global Intangible Low-Taxed Income (“GILTI”) as a current period cost. In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. As of March 31, 2019, the Company has completed its analysis and recorded no adjustments. For the years ended March 31, 2019 , 2018 and 2017 , the Company recorded a provision (benefit) for income taxes of approximately $0.6 million , $66.3 million , and $(0.1) million , respectively. The components of the consolidated provision (benefit) for income taxes for fiscal 2019 , 2018 and 2017 consisted of the following (in thousands): March 31, Current: 2019 2018 2017 Federal $ — $ (395 ) $ (7 ) State 291 256 588 Foreign 278 185 112 Total current tax provision 569 46 693 Deferred Federal — 59,837 1,506 State — 6,664 (1,095 ) Foreign — (253 ) (1,230 ) Total deferred tax provision (benefit) — 66,248 (819 ) Income tax provision (benefit) $ 569 $ 66,294 $ (126 ) The Company's income (loss) from continuing operations before income taxes included $0.2 million , $(19.7) million , and $(8.4) million of foreign subsidiary income (loss) for the fiscal years ended March 31, 2019 , 2018 and 2017 , respectively. The Company is permanently reinvesting the earnings of its profitable foreign subsidiaries. The Company intends to reinvest these profits in expansion of overseas operations. If the Company were to remit these earnings, the tax impact would be immaterial. Deferred tax assets and (liabilities) were comprised of the following (in thousands): March 31, 2019 2018 Deferred tax assets Net operating loss carryforwards $ 61,740 $ 40,465 Research and development and other credit carryforwards 15,573 11,761 Stock-based compensation 9,006 6,389 Reserves and allowances 5,697 3,181 Fixed assets and intangibles 2,709 378 Gross deferred tax assets 94,725 62,174 Valuation allowance (65,948 ) (62,174 ) Total deferred tax assets 28,777 $ — Deferred tax liabilities Deferred sales commissions (12,221 ) — Convertible debt (16,556 ) — Net deferred taxes $ — $ — The Company assesses the realizability of deferred tax assets based on the available evidence, including a history of taxable income and estimates of future taxable income. In assessing the realizability of deferred tax assets, The Company considers whether it is more likely than not that all or some portion of deferred tax assets will not be realized. For the year ended March 31, 2019 , the Company continues to maintain a full valuation allowance against its deferred tax assets as it considered the cumulative losses in recent periods to be a substantial negative evidence. At March 31, 2019 , management determined that a valuation allowance of approximately $65.9 million was needed compared with approximately $62.2 million as of March 31, 2018 . At March 31, 2019 , the Company had federal net operating loss carryforwards related to fiscal year 2019 of approximately $88.6 million , which carryforward indefinitely, and had carry-forwards related to prior years of $156.4 million , which begin to expire in 2021. At March 31, 2019, the Company has state net operating loss carry-forwards of $80.0 million , which expire at various dates between 2029 and 2037. In addition, at March 31, 2019 , the Company had research and development credit carryforwards for federal and California tax reporting purposes of approximately $10.1 million and $11.5 million , respectively. The federal income tax credit carryforwards will expire at various dates between 2021 and 2038, while the California income tax credits will carry forward indefinitely. A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands): Years Ended March 31, 2019 2018 2017 Tax benefit at statutory rate $ (18,441 ) $ (11,790 ) $ (1,652 ) State income taxes before valuation allowance, net of federal effect (3,612 ) (1,042 ) 108 Foreign tax rate differential 71 (1,188 ) 885 Research and development credits (3,744 ) (2,189 ) (1,484 ) Change in valuation allowance 30,558 56,663 (287 ) Compensation/option differences (7,277 ) (4,965 ) (246 ) Non-deductible compensation 1,200 1,132 1,079 Tax Act rate change impact — 22,630 — Acquisition costs — — 54 Foreign loss not benefited 159 6,847 780 Other 1,655 196 637 Total income tax provision (benefit) $ 569 $ 66,294 $ (126 ) For March 31, 2019 , the statutory federal rate of 21% was used. For fiscal year ended March 31, 2018 , a blended statutory U.S. federal income tax rate of 34% for 9 months and 21% for 3 months was used. For the year ended March, 31, 2017 a U.S. federal income tax rate of 34% was used. The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Unrecognized Tax Benefits 2019 2018 2017 Balance at beginning of year $ 3,980 $ 3,331 $ 2,881 Gross increases - tax position in prior period 17 — — Gross increases - tax position related to the current year 1,036 649 450 Balance at end of year $ 5,033 $ 3,980 $ 3,331 At March 31, 2019 , the Company had a liability for unrecognized tax benefits of $5.0 million , all of which, if recognized, would favorably affect the company's effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months . The Company's policy for recording interest and penalties associated with tax examinations is to record such items as a component of operating expense income before taxes. During the fiscal years ended March 31, 2019 , 2018 and 2017 , the Company did no t recognize any interest or penalties related to unrecognized tax benefits. Utilization of the Company's net operating loss and tax credit carryforwards can become subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. The Company has performed an analysis of its changes in ownership under Section 382 of the Internal Revenue Code. The Company currently believes that the Section 382 limitation will not limit utilization of the carryforwards prior to their expiration, with the exception of certain acquired loss and tax credit carryforwards. The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. The Company is currently under examination by the Illinois Department of Revenue for the fiscal years ended March 31, 2016 and 2017. The outcome of the ongoing examination is currently unknown. The tax years fiscal 2000 through fiscal 2019 generally remain subject to examination by federal and most state tax authorities. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net income (loss) per share (in thousands, except share and per share data): Years Ended March 31, 2019 2018 2017 Numerator: Net loss available to common stockholders $ (88,739 ) $ (104,497 ) $ (4,751 ) Denominator: Denominator for basic and diluted calculation 94,533 92,017 90,340 Net loss per share - basic and diluted $ (0.94 ) $ (1.14 ) $ (0.05 ) The following table summarizes the potentially dilutive common shares that were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Years Ended March 31, 2019 2018 2017 Stock options 3,114 3,998 4,462 Restricted stock units 7,820 5,940 4,950 10,934 9,938 9,412 |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | GEOGRAPHICAL INFORMATION The following tables set forth the geographic information for each period (in thousands): Revenue for the years ended March 31, 2019 2018 2017 Americas (principally US) $ 316,427 $ 266,034 $ 227,914 Europe (principally UK) 36,159 30,466 25,474 $ 352,586 $ 296,500 $ 253,388 Property and Equipment March 31, 2019 March 31, 2018 Americas (principally US) $ 45,639 $ 27,270 Europe (principally UK) 7,196 8,462 $ 52,835 $ 35,732 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS LeChat, Inc. On January 5, 2017, the Company entered into an Agreement and Plan of Merger (the "Agreement") with the preferred and common shareholders LeChat Inc. (LeChat) for the purchase of all the outstanding preferred and common shares of LeChat. 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. LeChat did not contribute materially to revenue or net loss for the period of acquisition to March 31, 2019. Goodwill recognized upon acquisition is deductible for income tax purposes. 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 March 31, 2019. Goodwill recognized upon acquisition is 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 March 31, 2019. Goodwill recognized upon acquisition is deductible for income tax purposes. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 30, 2019, Company entered into an assignment and assumption of lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord"), and Roku Inc., a Delaware corporation ("Roku"), to assign to Roku the lease executed between the Company and the Landlord on January 23, 2018 (the "Lease"). Pursuant to the Agreement, the Company expects to be released from all of its obligations under the Lease and related standby letter of credit by the end of the Company’s fiscal year ending March 31, 2022 or shortly thereafter. |
RECLASSIFICATIONS
RECLASSIFICATIONS | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECLASSIFICATIONS | RECLASSIFICATIONS The Company reclassified certain expenses on its Consolidated Statement of Operations effective for the fourth quarter of fiscal 2019. These expenses are related to servicing our customers, and include customer deployment, technical support, professional services and other costs, which have been reclassified from Sales & Marketing expense to Cost of Revenues, Research & Development expenses or General & Administrative expenses. The Company believes these classifications provide additional clarity and insights into the Company’s go-to-market, demand generation and sales execution activities, and how the total Sales & Marketing spend drives revenue generation, in light of the recent strategic and organizational changes impacting the Company’s channel, marketing and support activities. The reclassifications did not have any impact to the consolidated operating income (loss), net income (loss) or cash flows. The revised Consolidated Statements of Operations three month periods ended June 30, 2016, 2017 and 2018, September 30, 2016, 2017 and 2018, December 31, 2016, 2017, and 2018, and March 31, 2017, 2018, and 2019 and for the twelve month periods ended March 31, 2017, 2018, and 2019 are as follows (in thousands): Twelve Months Three Months Ended (unaudited) Ended June 30, September 30, December 31, March 31, March 31, 2016 2016 2016 2017 2017 Pre-Reclassification Total revenues $ 60,041 $ 63,183 $ 63,676 $ 66,489 $ 253,388 Cost of service revenue 10,235 10,837 10,526 10,803 42,400 Cost of product revenue 5,505 5,782 4,240 4,187 19,714 Research and development 6,710 6,505 7,094 7,142 27,452 Sales and marketing 31,691 33,691 35,667 38,228 139,277 General and administrative 6,801 6,747 7,852 9,814 31,214 Loss from operations $ (901 ) $ (379 ) $ (1,703 ) $ (3,685 ) $ (6,669 ) Reclassifications Total revenues $ — $ — $ — $ — $ — Cost of service revenue 7,466 6,675 6,759 7,276 28,176 Cost of product revenue — — — — — Research and development 471 330 368 378 1,547 Sales and marketing (10,247 ) (9,363 ) (9,897 ) (10,877 ) (40,384 ) General and administrative 2,310 2,358 2,770 3,223 10,661 Loss from operations $ — $ — $ — $ — $ — Post-Reclassification Total revenues $ 60,041 $ 63,183 $ 63,676 $ 66,489 $ 253,388 Cost of service revenue 17,701 17,512 17,285 18,079 70,576 Cost of product revenue 5,505 5,782 4,240 4,187 19,714 Research and development 7,181 6,835 7,462 7,520 28,999 Sales and marketing 21,444 24,328 25,770 27,351 98,893 General and administrative 9,111 9,105 10,622 13,037 41,875 Loss from operations $ (901 ) $ (379 ) $ (1,703 ) $ (3,685 ) $ (6,669 ) Twelve Months Three Months Ended (unaudited) Ended June 30, September 30, December 31, March 31, March 31, 2017 2017 2017 2018 2018 Pre-Reclassification Total revenues $ 69,098 $ 72,483 $ 75,575 $ 79,344 $ 296,500 Cost of service revenue 11,662 12,757 12,318 13,952 50,689 Cost of product revenue 4,884 5,098 4,675 5,826 20,482 Research and development 7,943 8,311 8,527 10,016 34,797 Sales and marketing 41,110 41,163 48,830 52,940 184,044 General and administrative 8,956 9,616 10,003 10,340 38,915 Impairment of goodwill, intangible assets, and equipment — — 9,469 — 9,469 Loss from operations $ (5,457 ) $ (4,462 ) $ (18,247 ) $ (13,730 ) $ (41,896 ) Reclassifications Total revenues $ — $ — $ — $ — $ — Cost of service revenue 8,497 8,591 8,586 9,881 35,555 Cost of product revenue — — — — — Research and development 418 403 376 411 1,608 Sales and marketing (12,650 ) (12,483 ) (12,448 ) (12,518 ) (50,099 ) General and administrative 3,735 3,489 3,486 2,226 12,936 Loss from operations $ — $ — $ — $ — $ — Post-Reclassification Total revenues $ 69,098 $ 72,483 $ 75,575 $ 79,344 $ 296,500 Cost of service revenue 20,159 21,348 20,904 23,833 86,244 Cost of product revenue 4,884 5,098 4,675 5,826 20,482 Research and development 8,361 8,714 8,903 10,427 36,405 Sales and marketing 28,460 28,680 36,382 40,422 133,945 General and administrative 12,691 13,105 13,489 12,566 51,851 Impairment of goodwill, intangible assets, and equipment — — 9,469 — 9,469 Loss from operations $ (5,457 ) $ (4,462 ) $ (18,247 ) $ (13,730 ) $ (41,896 ) Three Months Ended (unaudited) Twelve Months As Previously Reported Ended June 30, September 30, December 31, March 31, March 31, 2018 2018 2018 2019 2019 Pre-Reclassification Total revenues $ 83,225 $ 85,682 $ 89,912 $ 93,767 $ 352,586 Cost of service revenue 15,079 15,866 17,043 17,672 65,660 Cost of product revenue 6,281 5,397 5,318 5,784 22,780 Research and development 13,110 13,933 16,876 17,815 61,734 Sales and marketing 53,305 55,930 60,717 64,610 234,562 General and administrative 11,433 16,543 14,196 16,666 58,838 Loss from operations $ (15,983 ) $ (21,987 ) $ (24,238 ) $ (28,780 ) $ (90,988 ) Reclassifications Total revenues $ — $ — $ — $ — $ — Cost of service revenue 9,470 10,336 10,589 11,137 41,532 Cost of product revenue — — — — — Research and development (60 ) 131 10 249 330 Sales and marketing (12,810 ) (14,250 ) (14,441 ) (15,085 ) (56,586 ) General and administrative 3,400 3,783 3,842 3,699 14,724 Loss from operations $ — $ — $ — $ — $ — Post-Reclassification Total revenues $ 83,225 $ 85,682 $ 89,912 $ 93,767 $ 352,586 Cost of service revenue 24,549 26,202 27,632 28,809 107,192 Cost of product revenue 6,281 5,397 5,318 5,784 22,780 Research and development 13,050 14,064 16,886 18,064 62,063 Sales and marketing 40,495 41,680 46,276 49,525 177,976 General and administrative 14,833 20,326 18,038 20,365 73,563 Loss from operations $ (15,983 ) $ (21,987 ) $ (24,238 ) $ (28,780 ) $ (90,988 ) |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) In thousands, except per share data amounts: QUARTER ENDED March 31, December 31, 2018 September 30, 2018 June 30, 2018 March 31, December 31, 2017 September 30, 2017 June 30, 2017 Total revenues $ 93,767 $ 89,912 85,682 $ 83,225 $ 79,344 $ 75,575 $ 72,483 $ 69,098 Gross profit 59,174 56,962 54,083 52,395 49,685 49,996 46,037 44,055 Loss from operations (28,780 ) (24,238 ) (21,987 ) (15,983 ) (13,730 ) (18,247 ) (4,462 ) (5,457 ) Net income (loss) (28,131 ) (23,771 ) (21,482 ) (15,355 ) (13,262 ) (88,520 ) (546 ) (2,169 ) Net income (loss) per share: Basic and diluted $ (0.29 ) $ (0.25 ) $ (0.23 ) $ (0.16 ) $ (0.14 ) $ (0.96 ) $ (0.01 ) $ (0.02 ) |
SCHEUDLE II
SCHEUDLE II | 12 Months Ended |
Mar. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) Description Balance at Beginning of Year Additions Charged to Expenses Deductions (a) Balance at End of Year Total Allowance for Doubtful Accounts: Year ended March 31, 2017: $ 586 $ 941 $ (573 ) $ 954 Year ended March 31, 2018: $ 954 $ 250 $ (300 ) $ 904 Year ended March 31, 2019: $ 904 $ 1,115 $ (1,155 ) $ 864 (a) The deductions related to allowance for doubtful accounts represent accounts receivable which are written off. |
THE COMPANY AND SIGNIFICANT A_2
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company | 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996 . The Company is a leading cloud provider of enterprise Software-as-a-Service (SaaS) communications solutions, that enable businesses of all sizes to communicate faster and smarter across voice, video meetings, chat and contact centers, transforming both employee and customer experiences with communications that work simply, integrate seamlessly, and perform reliably. From one proprietary cloud technology platform, customers have access to unified communications, team collaboration, video conferencing, contact center, data and analytics and other services. Since fiscal 2004, substantially all revenue has been generated from the sale of communications services and related hardware. Prior to fiscal 2003, the Company's main business was Voice over Internet Protocol semiconductors. |
Fiscal Period | 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 ended March 31, 2019 ). |
Acquisitions | In January 2017, the Company entered into an agreement with the preferred and common shareholders LeChat Inc. pursuant to which the Company purchased technology and other assets to enable cross team messaging and collaboration within the Company's cloud technology platform. 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. |
Principles of Consolidation | The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Reclassifications | Certain amounts previously reported as selling and marketing expenses have been reclassified to cost of sales, research and development expenses, and general and administrative expenses within the consolidated statements of operations to conform to the current period presentation. The reclassification had no impact on the Company's previously reported net loss, cash flows, or basic or diluted net loss per share amounts. |
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, 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. |
Revenue Recognition | 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 ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), as amended: Topic 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 to the end of the contractual period. This ratable basis depicts the continuous access to the Company's services. 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. Deferred Sales Commission Costs Sales commissions 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 Customer s, 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. |
Cash, Cash Equivalents and Investments | The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At March 31, 2019 and 2018 , all investments were classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as current based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of one major financial institution. |
Accounts Receivable Allowance | The Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, and communications with its customers. Amounts are written off only after considerable collection efforts have been made and the amounts are determined to be uncollectible. |
Property and Equipment | Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, software and software development costs and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements. Maintenance, repairs and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the Consolidated Statements of Operations. Construction in progress primarily relates to costs to acquire or internally develop software for internal use not fully completed as of March 31, 2019 and 2018. |
Accounting for Long-Lived Assets | The Company reviews the recoverability of its long-lived assets, such as property and equipment, definite lived intangibles or capitalized software, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. See Note 4 for further discussion on impairment charges incurred. |
Goodwill and Other Intangible Assets | Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. For the year ended March 31, 2018, the Company had determined that it had three reporting units and allocated goodwill to the reporting units for the purposes of its annual impairment test. For the year ended March 31, 2019, the Company has determined it had one reporting unit. The change in reporting units resulted from the following events: • As of April 1, 2018, The Company's DXI operations no longer operated on a standalone basis and was integrated into the Company's existing United Kingdom operations, and • During the third fiscal quarter of 2019, the Company assessed it had only one Chief Operating Decision Maker, who reviewed financial results on a consolidated basis. See Note 11 for further discussion. The Company's annual goodwill impairment test is performed on January 1 each year. No goodwill impairment charges were recorded in the periods presented. The Company early adopted the provisions of ASU 2017-04, Simplifying the Test for Goodwill , for its annual impairment test. See Recently Adopted Accounting Pronouncements for further discussion. Intangible assets with finite useful lives are amortized on a straight-line basis over the periods benefited. Amortization expense for the customer relationship intangible asset is included in sales and marketing expenses. Amortization expense for acquired technology, software or internally developed software is included in cost of service revenue. |
Convertible Senior Notes | In accounting for the issuance of the convertible senior notes (the Notes), the Notes were separated into liability and equity components. The carrying amounts of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective Notes. This difference represents the debt discount that is amortized to interest expense over the respective terms of the Notes using the effective interest rate method. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the accounting requirements for equity classification. In accounting for the debt issuance costs related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on their relative fair values. Issuance costs attributable to the liability component are being amortized to interest expense over the contractual term of the Notes. The issuance costs attributable to the equity component, representing the conversion option, were netted against the equity component in additional paid-in capital. |
Warranty Expense | The Company accrues for estimated product warranty cost upon revenue recognition. Accruals for product warranties are calculated based on the Company's historical warranty experience adjusted for any specific requirements. The Company's warranty accruals are recorded in current other accrued liabilities in the consolidated balance sheets. |
Research, Development and Software Costs | Software developed or obtained for internal use in accordance with ASC 350-40, Internal-Use Software (ASC 350-40), is capitalized during the application development stage. In accordance with authoritative guidance, the Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Once the project has been completed, these costs are amortized to cost of service revenue on a straight - line basis over the estimated useful life of the related asset, generally estimated to be three years . Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense on our consolidated statements of operations. The Company classifies software development costs associated with the development of the Company's products and services as property and equipment. |
Advertising Costs | Advertising costs are expensed as incurred |
Foreign Currency Translation | The Company has determined that the functional currency of each of its foreign subsidiaries are the subsidiary's local currency. The Company believes this most appropriately reflects the current economic facts and circumstances of the Company's subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period, and revenue and expenses are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity. |
Segment Information | The Company has determined the chief executive officer is its chief operating decision maker. The chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The Company has determined that it operates in a single reportable segment. |
Concentrations | Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments. The Company sells its products to business customers and distributors. The Company performs ongoing credit evaluations of its customers' financial condition and generally does not require collateral from its customers. At March 31, 2019 and 2018 , no customer accounted for more than 10% of accounts receivable. The Company purchases all of its hardware products from suppliers that manufacturer the hardware directly. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows. The Company also relies primarily on third-party network service providers to provide telephone numbers and PSTN call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows. |
Fair Values of Financial Instruments | The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The accounting guidance for fair value measurement requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: • Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). • Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions. The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments and convertible senior notes payable are carried at fair value. |
Accounting for Stock-Based Compensation | The Company accounts for its employee stock options and other stock awards under the provisions of ASC 718 - Stock Compensation . Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity grant), net of estimated forfeitures. To value option grants the Company uses the Black-Scholes option valuation model. Fair value determined using the Black-Scholes option valuation model varies based on assumptions used for the expected stock prices volatility, expected life, risk-free interest rates and future dividend payments. The Company used the historical volatility of its stock over a period equal to the expected life of the options. The expected life assumptions represent the weighted-average period stock-based awards are expecting to remain outstanding. These expected life assumptions were established through the review of historical exercise behavior of stock-based award grants with similar vesting periods. The risk-free interest rates were based on the closing market bid yields of actively traded U.S. treasury securities in the over-the-counter market for the expected term equal to the expected term of the option. The dividend yield assumption is based on the Company's history of not paying dividends. The Company issued performance stock units (PSUs) to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2019 : • These PSUs vest (1) 50% on October 23, 2020 and (2) 50% on October 23, 2021, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR), such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche. The Company issued PSUs to a group of executives with vesting that is contingent on both market performance and continued service during the fiscal year ended March 31, 2018 : • These PSUs vest (1) 50% on September 22, 2018 and (2) 50% on September 27, 2019, in each case subject to the performance of the Company's common stock relative to the Russell 2000 Index (the benchmark) during the period from grant date through such vesting date. A 2x multiplier will be applied to the total shareholder returns (TSR), such that the number of shares earned will increase or decrease by 2% of the target numbers, for each 1% of positive or negative relative TSR. In the event the Company's common stock performance is below negative 30% , relative to the benchmark, no shares will be issued. In no event will the number of shares issued in each tranche exceed 200% of the target for that tranche. To value these market-based PSUs under the Equity Compensation Plans, the Company used a Monte Carlo simulation model on the date of grant. Fair value determined using the Monte Carlo simulation model varies based on the assumptions used for the expected stock price volatility, the correlation coefficient between the Company and the NASDAQ Composite Index, risk-free interest rates, and future dividend payments. |
Research and Development Costs | Research and development expenses consist primarily of personnel, consulting and equipment costs necessary for the Company to conduct development and engineering efforts. Research and development costs are expensed as incurred. |
Comprehensive Income (Loss) | Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale. |
Net Income (Loss) Per Share | Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options, employee shares purchase programs (ESPP), and restricted stock units (RSUs). The Company would include the dilutive effects of the Convertible Senior Notes (the Notes) (see Note 7) in the calculation of diluted net income per common share if the average market price is above the conversion price. Upon conversion of the Notes, it is the Company’s intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the Notes being converted, therefore, only the conversion spread relating to the Notes would be included in the Company’s diluted earnings per share calculation unless their effect is anti-dilutive. |
Deferred Rent | The Company recognizes rent expense on a straight-line basis for all operating lease arrangements with the difference between required lease payments and rent expense recorded as deferred rent. The difference results from rent holidays, rent escalations and tenant improvement allowances, which are amortized over the lease term. |
Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued ASC 606-Revenue from Contracts with Customers (ASC 606), which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. On April 1, 2018, the Company adopted ASC 606 using the modified retrospective method and applied Topic 606 to those contracts which were not completed as of April 1, 2018. Under the modified retrospective method the Company's fiscal 2018 and 2017 consolidated statement of operations were not restated. As such, revenues for those fiscal years were reported under the previous guidance of ASC 605, Revenue Recognition. 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 impacts of ASC 606 adoption on the Company's financial statements for the periods ended March 31, 2019: Selected Consolidated Balance Sheet Line Items (in thousands): March 31, 2019 ASC 605 Adjustments (As Reported) Current assets: Deferred sales commission costs $ — $ 15,601 $ 15,601 Other current assets $ 9,410 $ 5,717 $ 15,127 Non-current assets: Deferred sales commission costs $ — $ 33,693 $ 33,693 Stockholders' Equity Accumulated deficit $ (305,313 ) $ 55,011 $ (250,302 ) Selected Consolidated Statement of Operations Line Items (in thousands, except per share amounts): Twelve Months Ended March 31, 2019 ASC 605 Adjustments (As Reported) Service revenue $ 335,671 $ (1,233 ) $ 334,438 Product revenue 16,271 1,877 18,148 Total revenue $ 351,942 $ 644 $ 352,586 Operating expenses: Sales and marketing $ 189,058 $ (11,082 ) $ 177,976 Loss from operations $ (102,714 ) $ 11,726 $ (90,988 ) Net loss $ (100,465 ) $ 11,726 $ (88,739 ) Net loss per share: Basic and Diluted $ (1.06 ) $ 0.12 $ (0.94 ) Selected Consolidated Statements of Cash Flows Line Items (in thousands): Twelve Months Ended March 31, 2019 ASC 605 Adjustments (As Reported) Net loss $ (100,465 ) $ 11,726 $ (88,739 ) Amortization of deferred sales commission costs $ — $ 14,204 $ 14,204 Deferred sales commission costs $ — $ (25,286 ) $ (25,286 ) Other current and non-current assets $ (3,693 ) $ (644 ) $ (4,337 ) Net cash provided by operating activities $ (14,868 ) $ — $ (14,868 ) In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Therefore, the Company has prospectively adopted this new standard on April 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Therefore, the Company has prospectively adopted this new standard on April 1, 2018. The adoption of this standard did not have a material impact on the consolidated statement of cash flows. In October 2016, the FASB has issued ASU No. 2016-16 , Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which provides guidance on how an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This amendment is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Therefore, the Company has prospectively adopted this new standard on April 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update ASU No. 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by removing the requirement to perform a hypothetical purchase price allocation to compute the implied fair value of goodwill to measure impairment. Instead, any goodwill impairment will equal the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Furthermore, the ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. As permitted by the ASU, the Company have elected to early adopt this guidance for our fiscal 2019 goodwill impairment test, which was performed during the fourth quarter of fiscal 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements. 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. The Company plans to adopt the ASU utilizing the current period adjustment method on April 1, 2019 and expects to record approximately $13.1 to $14.1 million right-of-use assets and $15.0 to $16.0 million lease liability on its consolidated balance sheet. The amount of the Company's deferred rent as of March 31, 2019 of $1.9 million will be removed upon adoption. 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 estimates the impact of this pronouncement to its consolidated financial statements to be immaterial. 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. |
Guarantees | Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. Product Warranties The Company accrues for the estimated costs that may be incurred under its product warranties upon revenue recognition. |
THE COMPANY AND SIGNIFICANT A_3
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | 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 impacts of ASC 606 adoption on the Company's financial statements for the periods ended March 31, 2019: Selected Consolidated Balance Sheet Line Items (in thousands): March 31, 2019 ASC 605 Adjustments (As Reported) Current assets: Deferred sales commission costs $ — $ 15,601 $ 15,601 Other current assets $ 9,410 $ 5,717 $ 15,127 Non-current assets: Deferred sales commission costs $ — $ 33,693 $ 33,693 Stockholders' Equity Accumulated deficit $ (305,313 ) $ 55,011 $ (250,302 ) Selected Consolidated Statement of Operations Line Items (in thousands, except per share amounts): Twelve Months Ended March 31, 2019 ASC 605 Adjustments (As Reported) Service revenue $ 335,671 $ (1,233 ) $ 334,438 Product revenue 16,271 1,877 18,148 Total revenue $ 351,942 $ 644 $ 352,586 Operating expenses: Sales and marketing $ 189,058 $ (11,082 ) $ 177,976 Loss from operations $ (102,714 ) $ 11,726 $ (90,988 ) Net loss $ (100,465 ) $ 11,726 $ (88,739 ) Net loss per share: Basic and Diluted $ (1.06 ) $ 0.12 $ (0.94 ) Selected Consolidated Statements of Cash Flows Line Items (in thousands): Twelve Months Ended March 31, 2019 ASC 605 Adjustments (As Reported) Net loss $ (100,465 ) $ 11,726 $ (88,739 ) Amortization of deferred sales commission costs $ — $ 14,204 $ 14,204 Deferred sales commission costs $ — $ (25,286 ) $ (25,286 ) Other current and non-current assets $ (3,693 ) $ (644 ) $ (4,337 ) Net cash provided by operating activities $ (14,868 ) $ — $ (14,868 ) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): March 31, 2019 Accounts receivable, net $ 20,181 Other current assets $ 5,717 Deferred revenue - current $ 3,336 Deferred revenue - non-current $ 6 Changes in the contract assets and the deferred revenue balances during the twelve months ended March 31, 2019 are as follows (in thousands): April 1, 2018 March 31, 2019 $ Change Other current assets $ 1,725 $ 5,717 $ 3,992 Deferred revenue $ 2,578 $ 3,342 $ 764 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Contractual maturities of investments as of March 31, 2019 are set forth below (in thousands): Estimated Fair Value Due within one year $ 32,385 Due after one year 37,514 Total $ 69,899 Cash, cash equivalents and available-for-sale investments were (in thousands): As of March 31, 2019 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 25,364 $ — $ — $ 25,364 $ 25,364 $ — Level 1: Money market funds 251,219 — — 251,219 251,219 — Subtotal 276,583 — — 276,583 276,583 — Level 2: Corporate debt 46,516 51 (29 ) 46,538 — 46,538 Municipal securities 5,511 17 — 5,528 — 5,528 Asset backed securities 13,596 9 (17 ) 13,588 — 13,588 Agency bond 4,260 — (15 ) 4,245 — 4,245 Subtotal 69,883 77 (61 ) 69,899 — 69,899 Total assets $ 346,466 $ 77 $ (61 ) $ 346,482 $ 276,583 $ 69,899 As of March 31, 2018 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Cash Equivalents Short-Term 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 Asset backed securities 3,385 3 (1 ) 3,387 — 3,387 Mortgage backed securities 27,063 1 (119 ) 26,945 — 26,945 Agency bond 4,183 — (35 ) 4,148 — 4,148 Subtotal 121,013 10 (464 ) 120,559 — 120,559 Total assets $ 152,716 $ 10 $ (464 ) $ 152,262 $ 31,703 $ 120,559 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): March 31, 2019 2018 Computer equipment $ 34,706 $ 29,761 Software development costs 39,131 20,144 Software licenses 9,713 8,663 Leasehold improvements 6,286 6,573 Furniture and fixtures 2,324 1,637 Construction in progress 10,071 2,394 102,231 69,172 Less: accumulated depreciation and amortization (49,396 ) (33,440 ) $ 52,835 $ 35,732 |
INTANGIBLE ASSETS, GOODWILL A_2
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The carrying value of intangible assets consisted of the following (in thousands): March 31, 2019 March 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology $ 25,702 $ (15,409 ) $ 10,293 $ 19,702 $ (10,535 ) $ 9,167 Customer relationships 9,467 (8,080 ) 1,387 9,776 (7,366 ) 2,410 Trade names/domains 2,108 (2,108 ) — 2,108 (1,727 ) 381 Total acquired identifiable intangible assets $ 37,372 $ (25,692 ) $ 11,680 $ 31,681 $ (19,723 ) $ 11,958 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At March 31, 2019 , annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount 2020 $ 6,116 2021 3,569 2022 1,766 2023 229 Total $ 11,680 |
Schedule of Goodwill | The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Total Balance at March 31, 2017 46,136 Impairment loss (8,036 ) Foreign currency translation 1,954 Balance at March 31, 2018 40,054 Balance at Additions due to acquisitions 500 Foreign currency translation (860 ) Balance at March 31, 2019 39,694 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At March 31, 2019 , future total minimum annual lease payments under non-cancelable operating leases were as follows (in thousands): Year ending March 31: 2020 $ 7,143 2021 8,907 2022 8,797 2023 1,556 2024 1,140 Thereafter 2,279 Total $ 29,822 |
Schedule of Future Minimum Lease Payments for Capital Leases | At March 31, 2019 , future minimum annual lease payments under non-cancelable capital leases were as follows (in thousands): Year ending March 31: 2020 $ 436 2021 64 2022 19 2023 15 2024 15 Total minimum payments 549 Less: Amount representing interest (15 ) 534 Less: Short-term portion of capital lease obligations (424 ) Long-term portion of capital lease obligations $ 110 |
CONVERTIBLE SENIOR NOTES AND _2
CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Debt | The net carrying amount of the liability component of the Notes was as follows (in thousands): March 31, 2019 Principal $ 287,500 Unamortized debt discount (70,876 ) Unamortized issuance costs (589 ) Net carrying amount $ 216,035 The net carrying amount of the equity component of the Notes was as follows (in thousands): March 31, 2019 Debt discount for conversion option $ 66,700 Issuance costs (1,848 ) Net carrying amount $ 64,852 The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Notes was as follows (in thousands): March 31, 2019 Conversion option $ 66,700 Payments for capped call transactions (33,724 ) Issuance costs (1,848 ) Total 31,128 |
Interest Income and Interest Expense Disclosure | Interest expense related to the Notes was as follows (in thousands): March 31, 2019 Contractual interest expense $ 156 Amortization of debt discount 1,343 Amortization of issuance costs 11 Total interest expense $ 1,510 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes stock-based compensation expense (as reclassified, see Note 14, in thousands): Years Ended March 31, 2019 2018 2017 Cost of service revenue $ 5,527 $ 3,977 $ 3,308 Cost of product revenue — — — Research and development 12,313 6,625 3,762 Sales and marketing 11,951 6,630 5,334 General and administrative 14,717 11,944 9,058 Total $ 44,508 $ 29,176 $ 21,462 |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Stock option activity under all the Company's stock option plans since March 31, 2016 , is summarized as follows: Number of Shares Weighted Average Exercise Price Per Share Outstanding at March 31, 2016 4,793,266 $ 6.29 Granted 407,392 14.63 Exercised (603,998 ) 2.34 Canceled/Forfeited (134,248 ) 8.41 Outstanding at March 31, 2017 4,462,412 7.52 Granted 609,135 14.95 Exercised (773,897 ) 3.95 Canceled/Forfeited (299,365 ) 13.05 Outstanding at March 31, 2018 3,998,285 8.93 Granted 236,799 21.65 Exercised (759,884 ) 7.70 Canceled/Forfeited (361,129 ) 15.41 Outstanding at March 31, 2019 3,114,071 $ 9.45 Vested and expected to vest March 31, 2019 3,114,071 $ 9.45 Exercisable at March 31, 2019 2,737,032 $ 8.33 Stock Purchase Right activity since March 31, 2016 is summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2016 82,171 $ 6.30 0.76 Granted — — Vested and released (69,426 ) 6.00 Forfeited (1,375 ) 6.72 Balance at March 31, 2017 11,370 8.10 1.09 Granted — — Vested and released (6,395 ) 8.26 Forfeited — — Balance at March 31, 2018 4,975 8.10 1.09 Granted — — Vested and released (4,625 ) 7.88 Forfeited (350 ) 7.88 Balance at March 31, 2019 — $ — Restricted stock unit activity since March 31, 2016 is summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in Years) Balance at March 31, 2016 4,544,799 $ 8.08 1.67 Granted 2,491,877 15.15 Vested and released (1,600,831 ) 7.89 Forfeited (496,795 ) 9.56 Balance at March 31, 2017 4,939,050 11.57 1.55 Granted 3,481,870 14.41 Vested and released (1,833,038 ) 10.27 Forfeited (652,339 ) 12.73 Balance at March 31, 2018 5,935,543 13.51 1.60 Granted 5,726,787 19.77 Vested and released (2,399,371 ) 12.87 Forfeited (1,442,471 ) 16.85 Balance at March 31, 2019 7,820,488 $ 17.68 1.35 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Years Ended March 31, 2019 2018 2017 Expected volatility 41 % 41 % 44 % Expected dividend yield — — — Risk-free interest rate 2.5% to 3.0% 1.8% to 2.4% 1.1% to 2.2% Weighted average expected term (in years) 4.5 years 4.8 years 4.9 years Weighted average fair value of options granted $ 8.19 $ 5.70 $ 5.74 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | Years Ended March 31, 2019 2018 2017 Expected volatility 41 % 41 % 44 % Expected dividend yield — — — Risk-free interest rate 2.5% to 3.0% 1.8% to 2.4% 1.1% to 2.2% Weighted average expected term (in years) 4.5 years 4.8 years 4.9 years Weighted average fair value of options granted $ 8.19 $ 5.70 $ 5.74 The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: Years Ended March 31, 2019 2018 2017 Expected volatility 41 % 40 % 37 % Expected dividend yield — — — Risk-free interest rate 2.43 % 1.33 % 0.65 % Weighted average expected term (in years) 0.8 years 0.8 years 0.8 years Weighted average fair value of rights granted $ 5.74 $ 4.10 $ 4.19 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the consolidated provision (benefit) for income taxes for fiscal 2019 , 2018 and 2017 consisted of the following (in thousands): March 31, Current: 2019 2018 2017 Federal $ — $ (395 ) $ (7 ) State 291 256 588 Foreign 278 185 112 Total current tax provision 569 46 693 Deferred Federal — 59,837 1,506 State — 6,664 (1,095 ) Foreign — (253 ) (1,230 ) Total deferred tax provision (benefit) — 66,248 (819 ) Income tax provision (benefit) $ 569 $ 66,294 $ (126 ) |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and (liabilities) were comprised of the following (in thousands): March 31, 2019 2018 Deferred tax assets Net operating loss carryforwards $ 61,740 $ 40,465 Research and development and other credit carryforwards 15,573 11,761 Stock-based compensation 9,006 6,389 Reserves and allowances 5,697 3,181 Fixed assets and intangibles 2,709 378 Gross deferred tax assets 94,725 62,174 Valuation allowance (65,948 ) (62,174 ) Total deferred tax assets 28,777 $ — Deferred tax liabilities Deferred sales commissions (12,221 ) — Convertible debt (16,556 ) — Net deferred taxes $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows (in thousands): Years Ended March 31, 2019 2018 2017 Tax benefit at statutory rate $ (18,441 ) $ (11,790 ) $ (1,652 ) State income taxes before valuation allowance, net of federal effect (3,612 ) (1,042 ) 108 Foreign tax rate differential 71 (1,188 ) 885 Research and development credits (3,744 ) (2,189 ) (1,484 ) Change in valuation allowance 30,558 56,663 (287 ) Compensation/option differences (7,277 ) (4,965 ) (246 ) Non-deductible compensation 1,200 1,132 1,079 Tax Act rate change impact — 22,630 — Acquisition costs — — 54 Foreign loss not benefited 159 6,847 780 Other 1,655 196 637 Total income tax provision (benefit) $ 569 $ 66,294 $ (126 ) |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Unrecognized Tax Benefits 2019 2018 2017 Balance at beginning of year $ 3,980 $ 3,331 $ 2,881 Gross increases - tax position in prior period 17 — — Gross increases - tax position related to the current year 1,036 649 450 Balance at end of year $ 5,033 $ 3,980 $ 3,331 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net income (loss) per share (in thousands, except share and per share data): Years Ended March 31, 2019 2018 2017 Numerator: Net loss available to common stockholders $ (88,739 ) $ (104,497 ) $ (4,751 ) Denominator: Denominator for basic and diluted calculation 94,533 92,017 90,340 Net loss per share - basic and diluted $ (0.94 ) $ (1.14 ) $ (0.05 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the potentially dilutive common shares that were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Years Ended March 31, 2019 2018 2017 Stock options 3,114 3,998 4,462 Restricted stock units 7,820 5,940 4,950 10,934 9,938 9,412 |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth the geographic information for each period (in thousands): Revenue for the years ended March 31, 2019 2018 2017 Americas (principally US) $ 316,427 $ 266,034 $ 227,914 Europe (principally UK) 36,159 30,466 25,474 $ 352,586 $ 296,500 $ 253,388 |
Long-lived Assets by Geographic Areas | Property and Equipment March 31, 2019 March 31, 2018 Americas (principally US) $ 45,639 $ 27,270 Europe (principally UK) 7,196 8,462 $ 52,835 $ 35,732 |
RECLASSIFICATIONS (Tables)
RECLASSIFICATIONS (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The revised Consolidated Statements of Operations three month periods ended June 30, 2016, 2017 and 2018, September 30, 2016, 2017 and 2018, December 31, 2016, 2017, and 2018, and March 31, 2017, 2018, and 2019 and for the twelve month periods ended March 31, 2017, 2018, and 2019 are as follows (in thousands): Twelve Months Three Months Ended (unaudited) Ended June 30, September 30, December 31, March 31, March 31, 2016 2016 2016 2017 2017 Pre-Reclassification Total revenues $ 60,041 $ 63,183 $ 63,676 $ 66,489 $ 253,388 Cost of service revenue 10,235 10,837 10,526 10,803 42,400 Cost of product revenue 5,505 5,782 4,240 4,187 19,714 Research and development 6,710 6,505 7,094 7,142 27,452 Sales and marketing 31,691 33,691 35,667 38,228 139,277 General and administrative 6,801 6,747 7,852 9,814 31,214 Loss from operations $ (901 ) $ (379 ) $ (1,703 ) $ (3,685 ) $ (6,669 ) Reclassifications Total revenues $ — $ — $ — $ — $ — Cost of service revenue 7,466 6,675 6,759 7,276 28,176 Cost of product revenue — — — — — Research and development 471 330 368 378 1,547 Sales and marketing (10,247 ) (9,363 ) (9,897 ) (10,877 ) (40,384 ) General and administrative 2,310 2,358 2,770 3,223 10,661 Loss from operations $ — $ — $ — $ — $ — Post-Reclassification Total revenues $ 60,041 $ 63,183 $ 63,676 $ 66,489 $ 253,388 Cost of service revenue 17,701 17,512 17,285 18,079 70,576 Cost of product revenue 5,505 5,782 4,240 4,187 19,714 Research and development 7,181 6,835 7,462 7,520 28,999 Sales and marketing 21,444 24,328 25,770 27,351 98,893 General and administrative 9,111 9,105 10,622 13,037 41,875 Loss from operations $ (901 ) $ (379 ) $ (1,703 ) $ (3,685 ) $ (6,669 ) Twelve Months Three Months Ended (unaudited) Ended June 30, September 30, December 31, March 31, March 31, 2017 2017 2017 2018 2018 Pre-Reclassification Total revenues $ 69,098 $ 72,483 $ 75,575 $ 79,344 $ 296,500 Cost of service revenue 11,662 12,757 12,318 13,952 50,689 Cost of product revenue 4,884 5,098 4,675 5,826 20,482 Research and development 7,943 8,311 8,527 10,016 34,797 Sales and marketing 41,110 41,163 48,830 52,940 184,044 General and administrative 8,956 9,616 10,003 10,340 38,915 Impairment of goodwill, intangible assets, and equipment — — 9,469 — 9,469 Loss from operations $ (5,457 ) $ (4,462 ) $ (18,247 ) $ (13,730 ) $ (41,896 ) Reclassifications Total revenues $ — $ — $ — $ — $ — Cost of service revenue 8,497 8,591 8,586 9,881 35,555 Cost of product revenue — — — — — Research and development 418 403 376 411 1,608 Sales and marketing (12,650 ) (12,483 ) (12,448 ) (12,518 ) (50,099 ) General and administrative 3,735 3,489 3,486 2,226 12,936 Loss from operations $ — $ — $ — $ — $ — Post-Reclassification Total revenues $ 69,098 $ 72,483 $ 75,575 $ 79,344 $ 296,500 Cost of service revenue 20,159 21,348 20,904 23,833 86,244 Cost of product revenue 4,884 5,098 4,675 5,826 20,482 Research and development 8,361 8,714 8,903 10,427 36,405 Sales and marketing 28,460 28,680 36,382 40,422 133,945 General and administrative 12,691 13,105 13,489 12,566 51,851 Impairment of goodwill, intangible assets, and equipment — — 9,469 — 9,469 Loss from operations $ (5,457 ) $ (4,462 ) $ (18,247 ) $ (13,730 ) $ (41,896 ) Three Months Ended (unaudited) Twelve Months As Previously Reported Ended June 30, September 30, December 31, March 31, March 31, 2018 2018 2018 2019 2019 Pre-Reclassification Total revenues $ 83,225 $ 85,682 $ 89,912 $ 93,767 $ 352,586 Cost of service revenue 15,079 15,866 17,043 17,672 65,660 Cost of product revenue 6,281 5,397 5,318 5,784 22,780 Research and development 13,110 13,933 16,876 17,815 61,734 Sales and marketing 53,305 55,930 60,717 64,610 234,562 General and administrative 11,433 16,543 14,196 16,666 58,838 Loss from operations $ (15,983 ) $ (21,987 ) $ (24,238 ) $ (28,780 ) $ (90,988 ) Reclassifications Total revenues $ — $ — $ — $ — $ — Cost of service revenue 9,470 10,336 10,589 11,137 41,532 Cost of product revenue — — — — — Research and development (60 ) 131 10 249 330 Sales and marketing (12,810 ) (14,250 ) (14,441 ) (15,085 ) (56,586 ) General and administrative 3,400 3,783 3,842 3,699 14,724 Loss from operations $ — $ — $ — $ — $ — Post-Reclassification Total revenues $ 83,225 $ 85,682 $ 89,912 $ 93,767 $ 352,586 Cost of service revenue 24,549 26,202 27,632 28,809 107,192 Cost of product revenue 6,281 5,397 5,318 5,784 22,780 Research and development 13,050 14,064 16,886 18,064 62,063 Sales and marketing 40,495 41,680 46,276 49,525 177,976 General and administrative 14,833 20,326 18,038 20,365 73,563 Loss from operations $ (15,983 ) $ (21,987 ) $ (24,238 ) $ (28,780 ) $ (90,988 ) |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | In thousands, except per share data amounts: QUARTER ENDED March 31, December 31, 2018 September 30, 2018 June 30, 2018 March 31, December 31, 2017 September 30, 2017 June 30, 2017 Total revenues $ 93,767 $ 89,912 85,682 $ 83,225 $ 79,344 $ 75,575 $ 72,483 $ 69,098 Gross profit 59,174 56,962 54,083 52,395 49,685 49,996 46,037 44,055 Loss from operations (28,780 ) (24,238 ) (21,987 ) (15,983 ) (13,730 ) (18,247 ) (4,462 ) (5,457 ) Net income (loss) (28,131 ) (23,771 ) (21,482 ) (15,355 ) (13,262 ) (88,520 ) (546 ) (2,169 ) Net income (loss) per share: Basic and diluted $ (0.29 ) $ (0.25 ) $ (0.23 ) $ (0.16 ) $ (0.14 ) $ (0.96 ) $ (0.01 ) $ (0.02 ) |
THE COMPANY AND SIGNIFICANT A_4
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | |||
Mar. 31, 2019USD ($)reporting_unit | Mar. 31, 2018USD ($)reporting_unit | Mar. 31, 2017USD ($) | Apr. 01, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Capitalized contract cost, amortization period | 5 years | |||
Number of reporting units | reporting_unit | 1 | 3 | ||
Goodwill impairment loss | $ 0 | $ 8,036,000 | $ 0 | |
Advertising expense | $ 25,000,000 | $ 14,500,000 | $ 9,500,000 | |
Share-based Compensation Award, Tranche One | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | 50.00% | ||
Share-based Compensation Award, Tranche Two | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | 50.00% | ||
Percentage increase (decrease) in shares earned per 1% change in total shareholder returns | 2.00% | 2.00% | ||
Minimum percentage of common stock performance | (30.00%) | (30.00%) | ||
Maximum percentage of number of shares issued per tranche | 200.00% | 200.00% | ||
Equipment | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Software and Software Development Costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Furniture and fixtures | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
Computer Software, Intangible Asset | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Finite-lived intangible asset, useful life | 3 years | |||
Accounting Standards Update 2016-02 | Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred rent credit | $ (1,900,000) | |||
Minimum | Accounting Standards Update 2016-02 | Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Operating lease, right-of-use asset | 13,100,000 | |||
Operating lease, liability | 15,000,000 | |||
Maximum | Accounting Standards Update 2016-02 | Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Operating lease, right-of-use asset | 14,100,000 | |||
Operating lease, liability | $ 16,000,000 |
THE COMPANY AND SIGNIFICANT A_5
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES - Adoption Impact of ASC 606 (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | |
Current assets: | ||||||||||||||||
Deferred sales commission costs | $ 15,601 | $ 0 | $ 15,601 | $ 0 | $ 11,234 | |||||||||||
Other current assets | 15,127 | 10,040 | 15,127 | 10,040 | 11,765 | |||||||||||
Non-current assets: | ||||||||||||||||
Deferred sales commission costs, non-current | 33,693 | 0 | 33,693 | 0 | 26,942 | |||||||||||
Stockholders' equity: | ||||||||||||||||
Accumulated deficit | (250,302) | (201,464) | (250,302) | (201,464) | (161,563) | |||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | 93,767 | $ 89,912 | $ 85,682 | $ 83,225 | 79,344 | $ 75,575 | $ 72,483 | $ 69,098 | $ 66,489 | $ 63,676 | $ 63,183 | $ 60,041 | 352,586 | 296,500 | $ 253,388 | |
Sales and marketing | 49,525 | 46,276 | 41,680 | 40,495 | 40,422 | 36,382 | 28,680 | 28,460 | 27,351 | 25,770 | 24,328 | 21,444 | 177,976 | 133,945 | 98,893 | |
Loss from operations | (28,780) | (24,238) | (21,987) | (15,983) | (13,730) | (18,247) | (4,462) | (5,457) | $ (3,685) | $ (1,703) | $ (379) | $ (901) | (90,988) | (41,896) | (6,669) | |
Net loss | $ (28,131) | $ (23,771) | $ (21,482) | $ (15,355) | $ (13,262) | $ (88,520) | $ (546) | $ (2,169) | $ (88,739) | $ (104,497) | $ (4,751) | |||||
Net loss per share: | ||||||||||||||||
Basic and diluted (in dollars per share) | $ (0.29) | $ (0.25) | $ (0.23) | $ (0.16) | $ (0.14) | $ (0.96) | $ (0.01) | $ (0.02) | $ (0.94) | $ (1.14) | $ (0.05) | |||||
Statement of Cash Flows [Abstract] | ||||||||||||||||
Net loss | $ (28,131) | $ (23,771) | $ (21,482) | $ (15,355) | $ (13,262) | $ (88,520) | $ (546) | $ (2,169) | $ (88,739) | $ (104,497) | $ (4,751) | |||||
Amortization of deferred sales commission costs | 14,204 | 0 | 0 | |||||||||||||
Deferred sales commission costs | (25,286) | 0 | 0 | |||||||||||||
Other current and non-current assets | (4,337) | (3,149) | (2,515) | |||||||||||||
Net cash provided by operating activities | (14,868) | 22,041 | 28,478 | |||||||||||||
Service | ||||||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | 334,438 | 280,430 | 235,816 | |||||||||||||
Product | ||||||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | 18,148 | 16,070 | $ 17,572 | |||||||||||||
ASC 605 | ||||||||||||||||
Current assets: | ||||||||||||||||
Deferred sales commission costs | 0 | 0 | 0 | 0 | ||||||||||||
Other current assets | 9,410 | 10,040 | 9,410 | 10,040 | ||||||||||||
Non-current assets: | ||||||||||||||||
Deferred sales commission costs, non-current | 0 | 0 | 0 | 0 | ||||||||||||
Stockholders' equity: | ||||||||||||||||
Accumulated deficit | (305,313) | $ (201,464) | (305,313) | $ (201,464) | ||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | 351,942 | |||||||||||||||
Sales and marketing | 189,058 | |||||||||||||||
Loss from operations | (102,714) | |||||||||||||||
Net loss | $ (100,465) | |||||||||||||||
Net loss per share: | ||||||||||||||||
Basic and diluted (in dollars per share) | $ (1.06) | |||||||||||||||
Statement of Cash Flows [Abstract] | ||||||||||||||||
Net loss | $ (100,465) | |||||||||||||||
Amortization of deferred sales commission costs | 0 | |||||||||||||||
Deferred sales commission costs | 0 | |||||||||||||||
Other current and non-current assets | (3,693) | |||||||||||||||
Net cash provided by operating activities | (14,868) | |||||||||||||||
ASC 605 | Service | ||||||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | 335,671 | |||||||||||||||
ASC 605 | Product | ||||||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | 16,271 | |||||||||||||||
Adjustments | Accounting Standards Update 2014-09 | ||||||||||||||||
Current assets: | ||||||||||||||||
Deferred sales commission costs | 15,601 | 15,601 | 11,234 | |||||||||||||
Other current assets | 5,717 | 5,717 | 1,725 | |||||||||||||
Non-current assets: | ||||||||||||||||
Deferred sales commission costs, non-current | 33,693 | 33,693 | 26,942 | |||||||||||||
Stockholders' equity: | ||||||||||||||||
Accumulated deficit | $ 55,011 | 55,011 | $ 39,901 | |||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | 644 | |||||||||||||||
Sales and marketing | (11,082) | |||||||||||||||
Loss from operations | 11,726 | |||||||||||||||
Net loss | $ 11,726 | |||||||||||||||
Net loss per share: | ||||||||||||||||
Basic and diluted (in dollars per share) | $ 0.12 | |||||||||||||||
Statement of Cash Flows [Abstract] | ||||||||||||||||
Net loss | $ 11,726 | |||||||||||||||
Deferred sales commission costs | (25,286) | |||||||||||||||
Other current and non-current assets | (644) | |||||||||||||||
Net cash provided by operating activities | 0 | |||||||||||||||
Adjustments | Accounting Standards Update 2014-09 | Service | ||||||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | (1,233) | |||||||||||||||
Adjustments | Accounting Standards Update 2014-09 | Product | ||||||||||||||||
Income Statement Related Disclosures [Abstract] | ||||||||||||||||
Total revenue | $ 1,877 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Mar. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract with customer, liability, revenue recognized | $ 2.5 | |
Revenue, remaining performance obligation, amount | $ 170 | |
Revenue remaining performance obligation, expected timing of satisfaction | 24 months | |
Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Subscription term | 1 year | |
Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Subscription term | 4 years |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 20,181 | $ 16,296 | |
Other current assets | 5,717 | $ 1,725 | |
Deferred revenue | 3,336 | 2,559 | |
Non-current deferred revenue | $ 6 | $ 19 |
REVENUE RECOGNITION - Changes i
REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Other current assets | $ 5,717 | $ 1,725 |
Deferred revenue | 3,342 | $ 2,578 |
Change in other current assets | 3,992 | |
Change in deferred revenue | $ 764 |
FAIR VALUE MEASUREMENTS - Cash,
FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 276,583 | $ 31,703 |
Accumulated gross unrealized gain, before tax | 77 | 10 |
Accumulated gross unrealized loss, before tax | (61) | (464) |
Debt securities, available-for-sale | 69,899 | 120,559 |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 346,466 | 152,716 |
Cash, cash equivalents and debt securities available-for-sale | 346,482 | 152,262 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 276,583 | 31,703 |
Cash and cash equivalents, fair value disclosure | 276,583 | 31,703 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Costs | 69,883 | 121,013 |
Accumulated gross unrealized gain, before tax | 77 | 10 |
Accumulated gross unrealized loss, before tax | (61) | (464) |
Debt securities, available-for-sale | 69,899 | 120,559 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Costs | 13,254 | |
Accumulated gross unrealized gain, before tax | 0 | |
Accumulated gross unrealized loss, before tax | (8) | |
Debt securities, available-for-sale | 13,246 | |
Corporate debt | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Costs | 46,516 | 70,631 |
Accumulated gross unrealized gain, before tax | 51 | 6 |
Accumulated gross unrealized loss, before tax | (29) | (296) |
Debt securities, available-for-sale | 46,538 | 70,341 |
Municipal securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Costs | 5,511 | |
Accumulated gross unrealized gain, before tax | 17 | |
Accumulated gross unrealized loss, before tax | 0 | |
Debt securities, available-for-sale | 5,528 | |
Asset backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Costs | 13,596 | 3,385 |
Accumulated gross unrealized gain, before tax | 9 | 3 |
Accumulated gross unrealized loss, before tax | (17) | (1) |
Debt securities, available-for-sale | 13,588 | 3,387 |
Mortgage backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Costs | 27,063 | |
Accumulated gross unrealized gain, before tax | 1 | |
Accumulated gross unrealized loss, before tax | (119) | |
Debt securities, available-for-sale | 26,945 | |
Agency bond | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Costs | 4,260 | 4,183 |
Accumulated gross unrealized gain, before tax | 0 | 0 |
Accumulated gross unrealized loss, before tax | (15) | (35) |
Debt securities, available-for-sale | 4,245 | 4,148 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 25,364 | 16,499 |
Cash and cash equivalents, fair value disclosure | 25,364 | 16,499 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 251,219 | 15,204 |
Cash and cash equivalents, fair value disclosure | $ 251,219 | $ 15,204 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($) |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Convertible debt, fair value | $ 216 |
FAIR VALUE MEASUREMENTS - Contr
FAIR VALUE MEASUREMENTS - Contractual Maturity of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Due within one year | $ 32,385 | |
Due after one year | 37,514 | |
Total | $ 69,899 | $ 120,559 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 102,231 | $ 69,172 |
Less: accumulated depreciation and amortization | (49,396) | (33,440) |
Net | 52,835 | 35,732 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 34,706 | 29,761 |
Software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 39,131 | 20,144 |
Software licenses | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 9,713 | 8,663 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 6,286 | 6,573 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 2,324 | 1,637 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 10,071 | $ 2,394 |
INTANGIBLE ASSETS, GOODWILL A_3
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Schedule Of Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 37,372 | $ 31,681 |
Accumulated Amortization | (25,692) | (19,723) |
Net Carrying Amount | 11,680 | 11,958 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 25,702 | 19,702 |
Accumulated Amortization | (15,409) | (10,535) |
Net Carrying Amount | 10,293 | 9,167 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,467 | 9,776 |
Accumulated Amortization | (8,080) | (7,366) |
Net Carrying Amount | 1,387 | 2,410 |
Trade names/domains | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,108 | 2,108 |
Accumulated Amortization | (2,108) | (1,727) |
Net Carrying Amount | $ 0 | $ 381 |
INTANGIBLE ASSETS, GOODWILL A_4
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 6,116 |
2021 | 3,569 |
2022 | 1,766 |
2023 | 229 |
Total | $ 11,680 |
INTANGIBLE ASSETS, GOODWILL A_5
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Mar. 31, 2019USD ($)reporting_unit | Mar. 31, 2018USD ($)reporting_unit | Mar. 31, 2017USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reporting units | reporting_unit | 1 | 3 | ||
Impairment of goodwill and long-lived assets | $ 0 | $ 9,469,000 | $ 15,000 | |
Goodwill impairment loss | 0 | $ 8,036,000 | $ 0 | |
Capitalized contract cost, amortization | 14,200,000 | |||
Capitalized contract cost, impairment loss | $ 0 | |||
DXI | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of goodwill and long-lived assets | $ 300,000 | |||
Intangible asset impairment | 1,200,000 | |||
Goodwill impairment loss | $ 8,000,000 |
INTANGIBLE ASSETS, GOODWILL A_6
INTANGIBLE ASSETS, GOODWILL AND OTHER ASSETS - Changes in Carrying Amount of Goodwill by Location (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 40,054,000 | $ 46,136,000 | |
Impairment loss | 0 | (8,036,000) | $ 0 |
Foreign currency translation | (860,000) | 1,954,000 | |
Impairment loss | 500,000 | ||
Goodwill, ending balance | $ 39,694,000 | $ 40,054,000 | $ 46,136,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) ft² in Thousands | Jan. 23, 2018USD ($)ft² | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Lessee, Lease, Description [Line Items] | ||||
Rent expense | $ 10,600,000 | $ 5,600,000 | $ 5,100,000 | |
Property and equipment under capital lease | 3,400,000 | 3,500,000 | ||
Accumulated depreciation related to assets under capital lease | 2,800,000 | 1,800,000 | ||
Headquarters Facility, San Jose, California | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, term of contract | 132 months | |||
Lease, area | ft² | 162 | |||
Line of Credit | Standby Letters of Credit | ||||
Lessee, Lease, Description [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 8,100,000 | |||
Third-Party Customer Support Commitments | ||||
Lessee, Lease, Description [Line Items] | ||||
Other commitment | 1,100,000 | |||
Third-Party Network Service Provider Commitments | ||||
Lessee, Lease, Description [Line Items] | ||||
Other commitment | 1,900,000 | |||
State and Local Taxes and Surcharges | ||||
Lessee, Lease, Description [Line Items] | ||||
Accrued contingent indirect tax liabilities | 8,000,000 | $ 800,000 | ||
Sales Tax | ||||
Lessee, Lease, Description [Line Items] | ||||
Incremental sales tax liability | $ 7,200,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 7,143 |
2021 | 8,907 |
2022 | 8,797 |
2023 | 1,556 |
2024 | 1,140 |
Thereafter | 2,279 |
Total | $ 29,822 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Capital Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Year ending March 31: | |
2020 | $ 436 |
2021 | 64 |
2022 | 19 |
2023 | 15 |
2024 | 15 |
Total minimum payments | 549 |
Less: Amount representing interest | (15) |
Total payments, net of interest | 534 |
Less: Short-term portion of capital lease obligations | (424) |
Long-term portion of capital lease obligations | $ 110 |
CONVERTIBLE SENIOR NOTES AND _3
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2019USD ($)day$ / sharesshares | Mar. 31, 2019USD ($)$ / shares | Mar. 31, 2018$ / shares | |
Debt Instrument [Line Items] | |||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Payments for capped call transactions | $ (33,724,000) | ||
Convertible Debt | Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face value | $ 287,500,000 | $ 287,500,000 | |
Debt instrument, interest rate | 0.50% | ||
Proceeds from issuance of debt | $ 245,800,000 | ||
Debt instrument, convertible, conversion ratio | 0.0389484 | ||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | ||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 25.68 | ||
Debt instrument, convertible, threshold trading days | day | 20 | ||
Debt instrument, convertible, threshold consecutive trading days | day | 30 | ||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||
Debt instrument, convertible, measurement period | day | 5 | ||
Debt instrument, convertible, threshold consecutive trading days preceding measurement period | day | 10 | ||
Debt instrument, threshold percentage of sales price per share | 98.00% | ||
Debt instrument, redemption price, percentage | 100.00% | ||
Conversion option | $ 66,700,000 | ||
Debt instrument, effective interest rate | 6.50% | ||
Debt issuance costs, net | $ 600,000 | ||
Debt instrument, strike price per share (in dollars per share) | $ / shares | $ 25.68 | ||
Debt instrument, initial cap price per share (in dollars per share) | $ / shares | $ 39.50 | ||
Payments for capped call transactions | $ 33,700,000 | ||
Call Option | Convertible Debt | Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Option indexed to issuer's equity, indexed shares (in shares) | shares | 11.2 |
CONVERTIBLE SENIOR NOTES AND _4
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Carrying Amount of the Liability Component (Details) - Convertible Debt - Convertible Senior Notes - USD ($) | Mar. 31, 2019 | Feb. 28, 2019 |
Debt Instrument [Line Items] | ||
Principal | $ 287,500,000 | $ 287,500,000 |
Unamortized debt discount | (70,876,000) | |
Unamortized issuance costs | (589,000) | |
Net carrying amount | $ 216,035,000 |
CONVERTIBLE SENIOR NOTES AND _5
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Carrying Amount of the Equity Component (Details) - Convertible Debt - Convertible Senior Notes, Equity Component $ in Thousands | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Debt discount for conversion option | $ 66,700 |
Issuance costs | (1,848) |
Net carrying amount | $ 64,852 |
CONVERTIBLE SENIOR NOTES AND _6
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Interest Expense (Details) - Convertible Debt - Convertible Senior Notes $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Contractual interest expense | $ 156 |
Amortization of debt discount | 1,343 |
Amortization of issuance costs | 11 |
Total interest expense | $ 1,510 |
CONVERTIBLE SENIOR NOTES AND _7
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Net Impact to Stockholders' Equity (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Disclosure [Abstract] | |
Conversion option | $ 66,700 |
Payments for capped call transactions | (33,724) |
Issuance costs | (1,848) |
Total | $ 31,128 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | Sep. 18, 2006 | Jan. 01, 2005 | Dec. 31, 2004 | Aug. 31, 2017 | May 31, 2017 | May 31, 2006 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Aug. 31, 2018 | Jun. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Aug. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2012 | Jun. 30, 1996 |
2015 Repurchase Program | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Stock repurchase program, authorized amount | $ 15,000,000 | $ 15,000,000 | ||||||||||||||||||||
2017 Repurchase Plan | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Stock repurchase program, authorized amount | $ 25,000,000 | |||||||||||||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 7,100,000 | |||||||||||||||||||||
2006 Plan | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 7,000,000 | |||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||
Expiration period | 10 years | |||||||||||||||||||||
Number of shares available for future grant (in shares) | 0 | |||||||||||||||||||||
2012 Plan | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 4,100,000 | |||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||
Expiration period | 10 years | |||||||||||||||||||||
Number of shares available for future grant (in shares) | 10,700,000 | |||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 16,300,000 | 4,500,000 | 6,800,000 | |||||||||||||||||||
2013 Plan | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 1,000,000 | |||||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||||||
Expiration period | 10 years | |||||||||||||||||||||
Number of shares available for future grant (in shares) | 0 | |||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 1,200,000 | 1,200,000 | ||||||||||||||||||||
2017 Plan | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 1,000,000 | |||||||||||||||||||||
Vesting period | 3 years | |||||||||||||||||||||
Expiration period | 10 years | |||||||||||||||||||||
Number of shares available for future grant (in shares) | 600,000 | |||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 1,500,000 | 1,500,000 | ||||||||||||||||||||
Employee Stock Option | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Total intrinsic value of options exercised | $ 10,000,000 | $ 9,000,000 | $ 7,200,000 | |||||||||||||||||||
Unamortized stock-based compensation expense | $ 107,000,000 | |||||||||||||||||||||
Weighted average period of recognition for unrecognized compensation expense | 2 years 3 months 18 days | |||||||||||||||||||||
Employee Stock | Employee Stock Purchase Plan | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 500,000 | 500,000 | ||||||||||||||||||||
Unamortized stock-based compensation expense | $ 1,800,000 | |||||||||||||||||||||
Weighted average period of recognition for unrecognized compensation expense | 7 months 6 days | |||||||||||||||||||||
Term of extension | 10 years | 10 years | 10 years | 10 years | ||||||||||||||||||
Value of shares issued under employee stock purchase plan | $ 500,000 | $ 400,000 | $ 300,000 | |||||||||||||||||||
Percentage of market value price of common stock under Employee Stock Purchase Plan | 85.00% | |||||||||||||||||||||
Duration of offering period | 1 year | 2 years | ||||||||||||||||||||
Duration of purchase period | 6 months | |||||||||||||||||||||
Maximum contribution percentage amount of employee's base compensation | 10.00% |
STOCKHOLDERS' EQUITY - Stock-Ba
STOCKHOLDERS' EQUITY - Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | $ 44,508 | $ 29,176 | $ 21,462 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 12,313 | 6,625 | 3,762 |
Selling and Marketing Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 11,951 | 6,630 | 5,334 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 14,717 | 11,944 | 9,058 |
Service | Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 5,527 | 3,977 | 3,308 |
Product | Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | $ 0 | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY - Option A
STOCKHOLDERS' EQUITY - Option Activity (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 3,998,285 | 4,462,412 | 4,793,266 |
Granted (in shares) | 236,799 | 609,135 | 407,392 |
Exercised (in shares) | (759,884) | (773,897) | (603,998) |
Canceled/forfeited (in shares) | (361,129) | (299,365) | (134,248) |
Outstanding, ending balance (in shares) | 3,114,071 | 3,998,285 | 4,462,412 |
Vested and expected to vest, end of period (in shares) | 3,114,071 | ||
Exercisable, end of period (in shares) | 2,737,032 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding, beginning balance (in dollars per share) | $ 8.93 | $ 7.52 | $ 6.29 |
Granted (in dollars per share) | 21.65 | 14.95 | 14.63 |
Exercised (in dollars per share) | 7.70 | 3.95 | 2.34 |
Canceled/Forfeited (in dollars per share) | 15.41 | 13.05 | 8.41 |
Outstanding, ending balance (in dollars per share) | 9.45 | $ 8.93 | $ 7.52 |
Vested and expected to vest, ending balance (in dollars per share) | 9.45 | ||
Exercisable, end of period (in dollars per share) | $ 8.33 |
STOCKHOLDERS' EQUITY - Stock Pu
STOCKHOLDERS' EQUITY - Stock Purchase Right and Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Purchase Right | ||||
Number of Shares | ||||
Beginning balance (in shares) | 4,975 | 11,370 | 82,171 | |
Granted (in shares) | 0 | 0 | 0 | |
Vested and released (in shares) | (4,625) | (6,395) | (69,426) | |
Forfeited (in shares) | (350) | 0 | (1,375) | |
Ending balance (in shares) | 0 | 4,975 | 11,370 | 82,171 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 8.10 | $ 8.10 | $ 6.30 | |
Granted (in dollars per share) | 0 | 0 | 0 | |
Vested and released (in dollars per share) | 7.88 | 8.26 | 6 | |
Forfeited (in dollars per share) | 7.88 | 0 | 6.72 | |
Ending balance (in dollars per share) | $ 0 | $ 8.10 | $ 8.10 | $ 6.30 |
Weighted Average Remaining Contractual Term (in Years) | 1 year 1 month 2 days | 1 year 1 month 2 days | 9 months 3 days | |
Restricted stock units | ||||
Number of Shares | ||||
Beginning balance (in shares) | 5,935,543 | 4,939,050 | 4,544,799 | |
Granted (in shares) | 5,726,787 | 3,481,870 | 2,491,877 | |
Vested and released (in shares) | (2,399,371) | (1,833,038) | (1,600,831) | |
Forfeited (in shares) | (1,442,471) | (652,339) | (496,795) | |
Ending balance (in shares) | 7,820,488 | 5,935,543 | 4,939,050 | 4,544,799 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 13.51 | $ 11.57 | $ 8.08 | |
Granted (in dollars per share) | 19.77 | 14.41 | 15.15 | |
Vested and released (in dollars per share) | 12.87 | 10.27 | 7.89 | |
Forfeited (in dollars per share) | 16.85 | 12.73 | 9.56 | |
Ending balance (in dollars per share) | $ 17.68 | $ 13.51 | $ 11.57 | $ 8.08 |
Weighted Average Remaining Contractual Term (in Years) | 1 year 4 months 6 days | 1 year 7 months 6 days | 1 year 6 months 18 days | 1 year 8 months 1 day |
STOCKHOLDERS' EQUITY - Assumpti
STOCKHOLDERS' EQUITY - Assumptions Used In Black-Scholes Model (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 41.00% | 41.00% | 44.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, minimum | 2.50% | 1.80% | 1.10% |
Risk-free interest rate, maximum | 3.00% | 2.40% | 2.20% |
Weighted average expected term (in years) | 4 years 5 months 18 days | 4 years 9 months 18 days | 4 years 10 months 24 days |
Weighted average fair value of options granted (in dollars per share) | $ 8.19 | $ 5.70 | $ 5.74 |
Stock Purchase Right | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 41.00% | 40.00% | 37.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 2.43% | 1.33% | 0.65% |
Weighted average expected term (in years) | 9 months 18 days | 9 months 18 days | 9 months 18 days |
Weighted average fair value of options granted (in dollars per share) | $ 5.74 | $ 4.10 | $ 4.19 |
INCOME TAXES - Income Tax Provi
INCOME TAXES - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Current: | |||
Federal | $ 0 | $ (395) | $ (7) |
State | 291 | 256 | 588 |
Foreign | 278 | 185 | 112 |
Total current tax provision | 569 | 46 | 693 |
Deferred | |||
Federal | 0 | 59,837 | 1,506 |
State | 0 | 6,664 | (1,095) |
Foreign | 0 | (253) | (1,230) |
Total deferred tax provision (benefit) | 0 | 66,248 | (819) |
Total income tax provision (benefit) | $ 569 | $ 66,294 | $ (126) |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 61,740 | $ 40,465 |
Net operating loss carryforwards | 15,573 | 11,761 |
Stock-based compensation | 9,006 | 6,389 |
Reserves and allowances | 5,697 | 3,181 |
Fixed assets and intangibles | 2,709 | 378 |
Gross deferred tax assets | 94,725 | 62,174 |
Valuation allowance | (65,948) | (62,174) |
Total deferred tax assets | 28,777 | 0 |
Deferred tax liabilities | ||
Deferred sales commissions | (12,221) | 0 |
Convertible debt | (16,556) | 0 |
Net deferred taxes | $ 0 | $ 0 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Taxes Provided to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit at statutory rate | $ (18,441) | $ (11,790) | $ (1,652) |
State income taxes before valuation allowance, net of federal effect | (3,612) | (1,042) | 108 |
Foreign tax rate differential | 71 | (1,188) | 885 |
Research and development credits | (3,744) | (2,189) | (1,484) |
Change in valuation allowance | 30,558 | 56,663 | (287) |
Compensation/option differences | (7,277) | (4,965) | (246) |
Non-deductible compensation | 1,200 | 1,132 | 1,079 |
Tax Act rate change impact | 0 | 22,630 | 0 |
Acquisition costs | 0 | 0 | 54 |
Foreign loss not benefited | 159 | 6,847 | 780 |
Other | 1,655 | 196 | 637 |
Total income tax provision (benefit) | $ 569 | $ 66,294 | $ (126) |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 3,980 | $ 3,331 | $ 2,881 |
Gross increases - tax position in prior period | 17 | 0 | 0 |
Gross increases - tax position related to the current year | 1,036 | 649 | 450 |
Balance at end of year | $ 5,033 | $ 3,980 | $ 3,331 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Contingency [Line Items] | ||||||
Deferred tax asset adjustment due to change in enacted tax rate | $ 0 | $ 22,630,000 | $ 0 | |||
Provision (benefit) for income taxes | 569,000 | 66,294,000 | (126,000) | |||
Undistributed earnings (losses) of foreign subsidiaries | $ (19,700,000) | 200,000 | (19,700,000) | $ (8,400,000) | ||
Deferred tax assets, valuation allowance | $ 62,174,000 | $ 65,948,000 | 62,174,000 | |||
Federal tax rate | 21.00% | 34.00% | 21.00% | 34.00% | ||
Unrecognized tax benefits | $ 3,980,000 | $ 5,033,000 | 3,980,000 | $ 3,331,000 | $ 2,881,000 | |
Accrued penalties and interest | $ 0 | 0 | $ 0 | $ 0 | ||
Internal Revenue Service (IRS) | ||||||
Income Tax Contingency [Line Items] | ||||||
Research tax credit carryforwards | 10,100,000 | |||||
State and Local Jurisdiction | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | 80,000,000 | |||||
Research tax credit carryforwards | 11,500,000 | |||||
Tax Year 2019 | Internal Revenue Service (IRS) | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | 88,600,000 | |||||
Tax Years Prior To 2019 | Internal Revenue Service (IRS) | ||||||
Income Tax Contingency [Line Items] | ||||||
Operating loss carryforwards | $ 156,400,000 |
NET INCOME (LOSS) PER SHARE - B
NET INCOME (LOSS) PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | |||||||||||
Net loss available to common stockholders | $ (28,131) | $ (23,771) | $ (21,482) | $ (15,355) | $ (13,262) | $ (88,520) | $ (546) | $ (2,169) | $ (88,739) | $ (104,497) | $ (4,751) |
Denominator: | |||||||||||
Denominator for basic and diluted calculation (in shares) | 94,533 | 92,017 | 90,340 | ||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (0.29) | $ (0.25) | $ (0.23) | $ (0.16) | $ (0.14) | $ (0.96) | $ (0.01) | $ (0.02) | $ (0.94) | $ (1.14) | $ (0.05) |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Schedule of Antidilutive Awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 10,934 | 9,938 | 9,412 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 3,114 | 3,998 | 4,462 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares | 7,820 | 5,940 | 4,950 |
GEOGRAPHICAL INFORMATION (Detai
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue | $ 93,767 | $ 89,912 | $ 85,682 | $ 83,225 | $ 79,344 | $ 75,575 | $ 72,483 | $ 69,098 | $ 66,489 | $ 63,676 | $ 63,183 | $ 60,041 | $ 352,586 | $ 296,500 | $ 253,388 |
Property and Equipment | 52,835 | 35,732 | 52,835 | 35,732 | |||||||||||
Americas | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue | 316,427 | 266,034 | 227,914 | ||||||||||||
Property and Equipment | 45,639 | 27,270 | 45,639 | 27,270 | |||||||||||
Europe | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue | 36,159 | 30,466 | $ 25,474 | ||||||||||||
Property and Equipment | $ 7,196 | $ 8,462 | $ 7,196 | $ 8,462 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - Technology-Based Intangible Assets | Oct. 29, 2018 | Apr. 12, 2018 | Jan. 05, 2017 |
LeChat | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 2 years | ||
Finite-lived intangible assets, remaining amortization period | 2 years | ||
MarianaIQ | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 2 years | ||
Finite-lived intangible assets, remaining amortization period | 2 years | ||
Jitsi | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 2 years | ||
Finite-lived intangible assets, remaining amortization period | 2 years |
RECLASSIFICATIONS (Details)
RECLASSIFICATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total revenue | $ 93,767 | $ 89,912 | $ 85,682 | $ 83,225 | $ 79,344 | $ 75,575 | $ 72,483 | $ 69,098 | $ 66,489 | $ 63,676 | $ 63,183 | $ 60,041 | $ 352,586 | $ 296,500 | $ 253,388 |
Research and development | 18,064 | 16,886 | 14,064 | 13,050 | 10,427 | 8,903 | 8,714 | 8,361 | 7,520 | 7,462 | 6,835 | 7,181 | 62,063 | 36,405 | 28,999 |
Sales and marketing | 49,525 | 46,276 | 41,680 | 40,495 | 40,422 | 36,382 | 28,680 | 28,460 | 27,351 | 25,770 | 24,328 | 21,444 | 177,976 | 133,945 | 98,893 |
General and administrative | 20,365 | 18,038 | 20,326 | 14,833 | 12,566 | 13,489 | 13,105 | 12,691 | 13,037 | 10,622 | 9,105 | 9,111 | 73,563 | 51,851 | 41,875 |
Impairment of goodwill, intangible assets and equipment | 0 | 9,469 | 0 | 0 | 0 | 9,469 | 0 | ||||||||
Loss from operations | (28,780) | (24,238) | (21,987) | (15,983) | (13,730) | (18,247) | (4,462) | (5,457) | (3,685) | (1,703) | (379) | (901) | (90,988) | (41,896) | (6,669) |
Pre-Reclassification | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total revenue | 93,767 | 89,912 | 85,682 | 83,225 | 79,344 | 75,575 | 72,483 | 69,098 | 66,489 | 63,676 | 63,183 | 60,041 | 352,586 | 296,500 | 253,388 |
Research and development | 17,815 | 16,876 | 13,933 | 13,110 | 10,016 | 8,527 | 8,311 | 7,943 | 7,142 | 7,094 | 6,505 | 6,710 | 61,734 | 34,797 | 27,452 |
Sales and marketing | 64,610 | 60,717 | 55,930 | 53,305 | 52,940 | 48,830 | 41,163 | 41,110 | 38,228 | 35,667 | 33,691 | 31,691 | 234,562 | 184,044 | 139,277 |
General and administrative | 16,666 | 14,196 | 16,543 | 11,433 | 10,340 | 10,003 | 9,616 | 8,956 | 9,814 | 7,852 | 6,747 | 6,801 | 58,838 | 38,915 | 31,214 |
Impairment of goodwill, intangible assets and equipment | 0 | 9,469 | 0 | 0 | 9,469 | ||||||||||
Loss from operations | (28,780) | (24,238) | (21,987) | (15,983) | (13,730) | (18,247) | (4,462) | (5,457) | (3,685) | (1,703) | (379) | (901) | (90,988) | (41,896) | (6,669) |
Reclassifications | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Research and development | 249 | 10 | 131 | (60) | 411 | 376 | 403 | 418 | 378 | 368 | 330 | 471 | 330 | 1,608 | 1,547 |
Sales and marketing | (15,085) | (14,441) | (14,250) | (12,810) | (12,518) | (12,448) | (12,483) | (12,650) | (10,877) | (9,897) | (9,363) | (10,247) | (56,586) | (50,099) | (40,384) |
General and administrative | 3,699 | 3,842 | 3,783 | 3,400 | 2,226 | 3,486 | 3,489 | 3,735 | 3,223 | 2,770 | 2,358 | 2,310 | 14,724 | 12,936 | 10,661 |
Loss from operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Service | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total revenue | 334,438 | 280,430 | 235,816 | ||||||||||||
Cost of revenue | 28,809 | 27,632 | 26,202 | 24,549 | 23,833 | 20,904 | 21,348 | 20,159 | 18,079 | 17,285 | 17,512 | 17,701 | 107,192 | 86,244 | 70,576 |
Service | Pre-Reclassification | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Cost of revenue | 17,672 | 17,043 | 15,866 | 15,079 | 13,952 | 12,318 | 12,757 | 11,662 | 10,803 | 10,526 | 10,837 | 10,235 | 65,660 | 50,689 | 42,400 |
Service | Reclassifications | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Cost of revenue | 11,137 | 10,589 | 10,336 | 9,470 | 9,881 | 8,586 | 8,591 | 8,497 | 7,276 | 6,759 | 6,675 | 7,466 | 41,532 | 35,555 | 28,176 |
Product | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Total revenue | 18,148 | 16,070 | 17,572 | ||||||||||||
Cost of revenue | 5,784 | 5,318 | 5,397 | 6,281 | 5,826 | 4,675 | 5,098 | 4,884 | 4,187 | 4,240 | 5,782 | 5,505 | 22,780 | 20,482 | 19,714 |
Product | Pre-Reclassification | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Cost of revenue | 5,784 | 5,318 | 5,397 | 6,281 | 5,826 | 4,675 | 5,098 | 4,884 | 4,187 | 4,240 | 5,782 | 5,505 | 22,780 | 20,482 | 19,714 |
Product | Reclassifications | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Cost of revenue | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Total revenue | $ 93,767 | $ 89,912 | $ 85,682 | $ 83,225 | $ 79,344 | $ 75,575 | $ 72,483 | $ 69,098 | $ 66,489 | $ 63,676 | $ 63,183 | $ 60,041 | $ 352,586 | $ 296,500 | $ 253,388 |
Gross profit | 59,174 | 56,962 | 54,083 | 52,395 | 49,685 | 49,996 | 46,037 | 44,055 | |||||||
Loss from operations | (28,780) | (24,238) | (21,987) | (15,983) | (13,730) | (18,247) | (4,462) | (5,457) | $ (3,685) | $ (1,703) | $ (379) | $ (901) | (90,988) | (41,896) | (6,669) |
Net loss | $ (28,131) | $ (23,771) | $ (21,482) | $ (15,355) | $ (13,262) | $ (88,520) | $ (546) | $ (2,169) | $ (88,739) | $ (104,497) | $ (4,751) | ||||
Net income (loss) per share: | |||||||||||||||
Basic and diluted (in dollars per share) | $ (0.29) | $ (0.25) | $ (0.23) | $ (0.16) | $ (0.14) | $ (0.96) | $ (0.01) | $ (0.02) | $ (0.94) | $ (1.14) | $ (0.05) |
SCHEDULE II (Details)
SCHEDULE II (Details) - Total Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | $ 904 | $ 954 | $ 586 | |
Additions Charged to Expenses | 1,115 | 250 | 941 | |
Deductions | [1] | (1,155) | (300) | (573) |
Balance at End of Year | $ 864 | $ 904 | $ 954 | |
[1] | The deductions related to allowance for doubtful accounts represent accounts receivable which are written off. |
Uncategorized Items - eght-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 17,643,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 39,901,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 17,643,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 39,901,000 |