Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2020 | Jul. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38312 | |
Entity Registrant Name | 8x8, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0142404 | |
Entity Address, Address Line One | 675 Creekside Way | |
Entity Address, City or Town | Campbell | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95008 | |
City Area Code | 408 | |
Local Phone Number | 727-1885 | |
Title of 12(b) Security | COMMON STOCK, PAR VALUE $.001 PER SHARE | |
Trading Symbol | EGHT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,234,242 | |
Entity Central Index Key | 0001023731 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 116,690 | $ 137,394 |
Restricted cash, current | 10,376 | 10,376 |
Short-term investments | 40,580 | 33,458 |
Accounts receivable, net | 40,572 | 37,811 |
Deferred sales commission costs, current | 24,247 | 22,444 |
Other current assets | 35,336 | 35,679 |
Total current assets | 267,801 | 277,162 |
Property and equipment, net | 96,112 | 94,382 |
Operating lease, right-of-use assets | 76,054 | 78,963 |
Intangible assets, net | 21,773 | 24,001 |
Goodwill | 128,980 | 128,300 |
Restricted cash, non-current | 8,641 | 8,641 |
Long-term investments | 9,965 | 16,083 |
Deferred sales commission costs, non-current | 58,535 | 53,307 |
Other assets | 20,232 | 19,802 |
Total assets | 688,093 | 700,641 |
Current liabilities: | ||
Accounts payable | 39,342 | 40,261 |
Accrued compensation | 27,764 | 22,656 |
Accrued taxes | 9,220 | 10,251 |
Operating lease liabilities, current | 9,989 | 5,875 |
Deferred revenue, current | 8,352 | 7,105 |
Other accrued liabilities | 26,873 | 37,277 |
Total current liabilities | 121,540 | 123,425 |
Operating lease liabilities, non-current | 87,884 | 92,452 |
Convertible senior notes, net | 295,662 | 291,537 |
Other liabilities, non-current | 4,141 | 2,496 |
Total liabilities | 509,227 | 509,910 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock | 104 | 103 |
Additional paid-in capital | 657,014 | 625,474 |
Accumulated other comprehensive loss | (10,869) | (12,176) |
Accumulated deficit | (467,383) | (422,670) |
Total stockholders' equity | 178,866 | 190,731 |
Total liabilities and stockholders' equity | $ 688,093 | $ 700,641 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Total revenue | $ 121,807 | $ 96,675 |
Operating expenses: | ||
Research and development | 21,494 | 18,331 |
Sales and marketing | 60,150 | 53,599 |
General and administrative | 25,790 | 19,607 |
Total operating expenses | 159,567 | 129,228 |
Loss from operations | (37,760) | (32,553) |
Other income (expense), net | (3,925) | (1,564) |
Loss before provision for income taxes | (41,685) | (34,117) |
Provision for income taxes | 228 | 148 |
Net loss | $ (41,913) | $ (34,265) |
Net loss per share: | ||
Basic and diluted (in dollars per share) | $ (0.40) | $ (0.36) |
Weighted-average common shares outstanding: | ||
Basic and diluted (in shares) | 103,607 | 96,429 |
Service | ||
Total revenue | $ 114,183 | $ 89,839 |
Operating expenses: | ||
Cost of goods and services sold | 40,996 | 25,300 |
Other | ||
Total revenue | 7,624 | 6,836 |
Operating expenses: | ||
Cost of goods and services sold | $ 11,137 | $ 12,391 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (41,913) | $ (34,265) |
Other comprehensive income (loss), net of tax | ||
Unrealized gain on investments in securities | 422 | 121 |
Foreign currency translation adjustment | 885 | (652) |
Comprehensive loss | $ (40,606) | $ (34,796) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Cumulative effect, period of adoption, adjustment | Cumulative effect, period of adoption, adjustmentAccumulated Deficit |
Beginning balance (in shares) at Mar. 31, 2019 | 96,119,888 | ||||||
Beginning balance at Mar. 31, 2019 | $ 249,390 | $ 96 | $ 506,949 | $ (7,353) | $ (250,302) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plans, less withholding (in shares) | 451,308 | ||||||
Issuance of common stock under stock plans, less withholding | 1,494 | $ 1 | 1,493 | ||||
Stock-based compensation expense | 14,059 | 14,059 | |||||
Unrealized investment gain | 121 | 121 | |||||
Foreign currency translation adjustment | (652) | (652) | |||||
Net loss | (34,265) | (34,265) | |||||
Ending balance (in shares) at Jun. 30, 2019 | 96,571,196 | ||||||
Ending balance at Jun. 30, 2019 | 230,147 | $ 97 | 522,501 | (7,884) | (284,567) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adjustment to opening balance for change in accounting principle | $ (2,800) | $ (2,800) | |||||
Beginning balance (in shares) at Mar. 31, 2020 | 103,178,621 | ||||||
Beginning balance at Mar. 31, 2020 | 190,731 | $ 103 | 625,474 | (12,176) | (422,670) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plans, less withholding (in shares) | 688,414 | ||||||
Issuance of common stock under stock plans, less withholding | (66) | $ 1 | (67) | ||||
Stock-based compensation expense | 23,118 | 23,118 | |||||
Issuance of common stock related to acquisition | 8,489 | 8,489 | |||||
Unrealized investment gain | 422 | 422 | |||||
Foreign currency translation adjustment | 885 | 885 | |||||
Net loss | (41,913) | (41,913) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 103,867,035 | ||||||
Ending balance at Jun. 30, 2020 | $ 178,866 | $ 104 | $ 657,014 | $ (10,869) | $ (467,383) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (41,913) | $ (34,265) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,823 | 2,325 |
Amortization of intangible assets | 2,228 | 1,524 |
Amortization of capitalized software | 6,217 | 3,805 |
Amortization of debt discount and issuance costs | 4,126 | 3,173 |
Amortization of deferred sales commission costs | 6,138 | 4,189 |
Allowance for credit losses | 1,742 | 429 |
Operating lease expense, net of accretion | 3,750 | 2,085 |
Stock-based compensation | 22,779 | 13,597 |
Other | 602 | 597 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (3,428) | (3,765) |
Deferred sales commission costs | (13,186) | (8,707) |
Other current and non-current assets | (3,025) | (5,740) |
Accounts payable and accruals | (519) | (588) |
Deferred revenue | 2,416 | 832 |
Net cash used in operating activities | (9,250) | (20,509) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,453) | (1,984) |
Cost of capitalized software | (8,866) | (7,738) |
Proceeds from maturities of investments | 16,575 | 4,600 |
Proceeds from sales of investments | 0 | 29,793 |
Purchases of investments | (17,156) | (13,500) |
Net cash (used in) provided by investing activities | (11,900) | 11,171 |
Cash flows from financing activities: | ||
Finance lease payments | (67) | (130) |
Tax-related withholding of common stock | (69) | (23) |
Proceeds from issuance of common stock under employee stock plans | 2 | 1,520 |
Net cash (used in) provided by financing activities | (134) | 1,367 |
Effect of exchange rate changes on cash | 580 | 413 |
Net decrease in cash and cash equivalents, and restricted cash | (20,704) | (7,558) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 156,411 | 284,683 |
Cash, cash equivalents, and restricted cash at the end of the period | 135,707 | 277,125 |
Supplemental and non-cash disclosures: | ||
Income taxes paid | 165 | 218 |
Reconciliation Of Cash Cash Equivalents And Restricted Cash [Abstract] | ||
Total cash, cash equivalents, and restricted cash | $ 135,707 | $ 277,125 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996 . The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. 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. Substantially all revenue is generated from communication services subscriptions and platform usage. The Company also generates revenue from sales of hardware and professional services, which are complementary to the delivery of our integrated technology platform. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND CONSOLIDATION The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2021 refers to the fiscal year ending March 31, 2021 ). The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. The March 31, 2020 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2020 and notes thereto included in the Company's fiscal 2020 annual report on Form 10-K. There have been no material changes in our significant accounting policies as described in the Company's annual report on Form 10-K for the year ended March 31, 2020 during the three months ended June 30, 2020 , except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update ("ASU") 2016-03, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, further amended by various ASUs and ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future periods or the entire fiscal year. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations, and cash flows for the periods presented. USE OF ESTIMATES The preparation of the condensed consolidated financial statements in conformity with GAAP 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 condensed 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 allowance for credit losses, returns reserve for expected cancellations, fair value of and/or evaluation for impairment of goodwill and intangible assets, capitalization of internally developed software, benefit period for deferred sales commission costs, stock-based compensation expense, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, fair value of convertible senior notes, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions. RECLASSIFICATIONS AND OTHER CHANGES During the fourth quarter of fiscal 2020, the Company determined that presenting service revenue as revenue from the Company's core communication services would provide transparency and clarity to the users of the financial statements. As such, the Company reclassified certain revenue and cost of revenue on its condensed consolidated statement of operations for the three months ended June 30, 2019. The reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows. Professional services revenue and cost of professional services revenue previously reported in service revenue and cost of service revenue are now reported in other revenue and cost of other revenue. Product revenue and cost of product revenue are also now reported in other revenue and cost of other revenue. In addition, certain prior year amounts in the condensed consolidated statements of cash flows have been reclassified to conform with the current year presentation of allowance for credit losses. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , further amended by ASU 2018-19 issued in November 2019, ASU 2019-04 issued in April 2019, ASU 2019-05 issued in May 2019, ASU 2019-10 issued in November 2019, and ASU 2019-11 issued in November 2019, which replaces the existing impairment model with a forward-looking expected loss method. Under this update, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects the entity's current estimate of credit losses expected to be incurred over the life of the financial instrument. For trade receivables, loans, and other financial instruments, an entity is required to use a forward-looking expected loss model to recognize credit losses that are probable. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes result in more timely recognition of credit losses. These ASUs are effective for annual and interim periods beginning after December 15, 2019, which is fiscal 2021 for the Company. The Company adopted ASU 2016-13 on a modified retrospective basis as of April 1, 2020 through a cumulative-effect adjustment to the Company's beginning accumulated deficit balance; the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of the Company’s customers, and external market factors, including those related to the COVID-19 pandemic. The Company will continue to actively monitor the impact of the recent COVID-19 pandemic on expected credit losses. 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, which is fiscal 2021 for the Company. The Company adopted ASU 2018-13 in the first quarter of fiscal 2021, and the impact of the adoption was immaterial to the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), which reduces complexity 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, which is fiscal 2021 for the Company; early adoption is permitted. The Company adopted this guidance on a prospective basis effective April 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The amendment will be effective for public companies with fiscal years beginning after December 15, 2020, which is fiscal 2022 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 13 for more information. Contract Balances The following table provides information about receivables, contract assets, and deferred revenues from contracts with customers (in thousands): June 30, 2020 March 31, 2020 Accounts receivable, net $ 40,572 $ 37,811 Contract assets, current, net $ 11,625 $ 10,425 Contract assets, non-current, net $ 13,897 $ 13,698 Deferred revenue, current $ 8,352 $ 7,105 Deferred revenue, non-current $ 2,279 $ 1,119 Contract assets, current and non-current, net and deferred revenue, non-current are recorded in other current assets, other assets, and other liabilities, non-current, respectively. Changes in the contract assets and deferred revenue balances during the three months ended June 30, 2020 are as follows (in thousands): June 30, 2020 March 31, 2020 Change Contract assets $ 25,522 $ 24,123 $ 1,399 Deferred revenue $ 10,631 $ 8,224 $ 2,407 The change in contract assets was primarily driven by the recognition of revenue that has not yet been billed, net of amounts billed during the period and reserve for current estimate of credit losses. The increase in deferred revenue was due to billings in advance of performance obligations being satisfied, net of revenue recognized for services rendered during the period. Revenue of $3.7 million was recognized during the three months ended June 30, 2020 , which was offset by additional deferrals during the period. Remaining Performance Obligations The Company's subscription terms typically range from one to five years . Contract revenue as of June 30, 2020 that has not yet been recognized was approximately $290.0 million from remaining performance obligations. This excludes contracts with an original expected length of one year or less. The Company expects to recognize revenue on most of the remaining performance obligations over the next 36 months . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash, cash equivalents, restricted cash, and available-for-sale investments were as follows (in thousands): As of June 30, 2020 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 34,028 $ — $ — $ 34,028 $ 23,652 $ 10,376 $ — $ — Level 1: Money market funds 88,638 — — 88,638 88,638 — — — Treasury securities 11,686 89 — 11,775 — — 11,775 — Subtotal 134,352 89 — 134,441 112,290 10,376 11,775 — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 9,395 1 — 9,396 4,400 — 4,996 — Corporate debt 33,629 152 (7 ) 33,774 — — 23,809 9,965 Subtotal 51,665 153 (7 ) 51,811 4,400 8,641 28,805 9,965 Total assets $ 186,017 $ 242 $ (7 ) $ 186,252 $ 116,690 $ 19,017 $ 40,580 $ 9,965 As of March 31, 2020 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 31,378 $ — $ — $ 31,378 $ 21,002 $ 10,376 $ — $ — Level 1: Money market funds 110,796 — — 110,796 110,796 — — — Treasury securities 6,192 116 — 6,308 — — — 6,308 Subtotal 148,366 116 — 148,482 131,798 10,376 — 6,308 Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 14,979 6 — 14,985 5,596 — 9,389 — Corporate debt 34,153 32 (341 ) 33,844 — — 24,069 9,775 Subtotal 57,773 38 (341 ) 57,470 5,596 8,641 33,458 9,775 Total assets $ 206,139 $ 154 $ (341 ) $ 205,952 $ 137,394 $ 19,017 $ 33,458 $ 16,083 Certificate of deposit represents the Company's letter of credits securing leases for office facilities, and the balance of which is included in restricted cash, non-current in the Company's condensed consolidated balance sheet. The Company considers its investments as available to support its current operations, and it has classified all investments as available-for-sale securities. As of June 30, 2020, for investments that were in unrealized loss positions, the Company does not have the intent to sell any of these investments, and has determined that it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company regularly reviews the changes to the rating of its securities at the individual security level by rating agencies as well as reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As of June 30, 2020, the Company did not have any risk of expected credit losses. As of June 30, 2020 , the estimated fair value of the Company's outstanding convertible senior notes (the "Notes") was $326.3 million , which was determined based on the closing price for the Notes on the last trading day of the reporting period and is considered to be Level 2 in the fair value hierarchy due to limited trading activity of the Notes. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Wavecell Acquisition On July 17, 2019, the Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with Wavecell Pte. Ltd., a corporation incorporated under the laws of the Republic of Singapore (“Wavecell”), the equity holders of Wavecell (collectively, the “Sellers”), and Qualgro Partners Pte. Ltd., in its capacity as the representative of the equity holders of Wavecell. Pursuant to the Share Purchase Agreement, the Company acquired all of the outstanding shares and other equity interests of Wavecell (the “Transaction”). This Transaction extends 8x8’s technology advantage as a fully-owned, cloud technology platform with unified communications as a service ("UCaaS"), contact center as a service ("CCaaS"), video communication as a service ("VCaaS"), and communication platform as a service ("CPaaS") solutions able to natively offer pre-packaged communications, contact center and video solutions and open APIs to embed these and other communications into an organization’s core business processes. The total fair value of the purchase consideration of $117.1 million was comprised of $72.8 million in cash and $44.3 million in shares of common stock of the Company, of which $10.4 million in cash and $8.5 million in equity have been heldback to cover potential indemnity claims made by the Company after the closing date. One-third of these holdback amounts are eligible to be released in 12 months from the date of the Transaction and the remainder in 18 months from the date of the Transaction. The holdback cash of $10.4 million is recorded in restricted cash, current and other accrued liabilities, respectively, in the Company's condensed consolidated balance sheet. The holdback shares of $8.5 million is included in additional paid-in capital in the Company's condensed consolidated balance sheet. Additionally, in connection with the Transaction, the Company issued $13.2 million in time-based restricted stock awards and $6.6 million in performance based restricted stock awards, all of which vest over three years from the acquisition date. The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands): July 17, 2019 Cash $ 4,473 Accounts receivable 9,438 Intangible assets 21,010 Other assets 787 Goodwill 91,060 Accounts payable (9,548 ) Deferred revenue (90 ) Total consideration $ 117,130 The acquisition has been accounted for as a business combination under the acquisition method and, accordingly, the total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair value on the acquisition date. The goodwill recognized was primarily attributed to increased synergies that are expected to be achieved from the integration of Wavecell and is not expected to be deductible for income tax purposes. The value of the acquired intangible assets acquired are as follows (in thousands): Fair Value Useful life (in Years) Trade and domain names $ 990 0.8 Developed technology 13,830 7 Customer relationships 6,190 7 Total intangible assets $ 21,010 |
INTANGIBLE ASSETS, GOODWILL, AN
INTANGIBLE ASSETS, GOODWILL, AND OTHER ASSETS | 3 Months Ended |
Jun. 30, 2020 | |
Intangible Assets, Net (Including Goodwill) [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): June 30, 2020 March 31, 2020 Gross Accumulated Net Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 33,942 $ (17,747 ) $ 16,195 $ 33,932 $ (16,312 ) $ 17,620 Customer relationships 11,395 (5,817 ) 5,578 11,409 (5,412 ) 5,997 Trade and domain names 985 (985 ) — 983 (599 ) 384 Total acquired identifiable intangible assets $ 46,322 $ (24,549 ) $ 21,773 $ 46,324 $ (22,323 ) $ 24,001 As of June 30, 2020 , the weighted average remaining useful life for technology and customer relationships was 4.8 years and 5.7 years, respectively. At June 30, 2020 , the expected future amortization expense of these intangible assets is as follows (in thousands): Remainder of 2021 $ 4,643 2022 4,708 2023 3,156 2024 2,851 2025 2,851 Thereafter 3,564 Total $ 21,773 The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Balance at March 31, 2020 $ 128,300 Foreign currency translation adjustments 680 Balance at June 30, 2020 $ 128,980 Deferred Sales Commission Costs Amortization of deferred sales commission costs for the three months ended June 30, 2020 and 2019 was $6.1 million and $4.2 million , respectively. There were no material write-offs relative to the costs capitalized during these periods. |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Operating Leases The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2030. The following table provides balance sheet information related to leases as of June 30, 2020 (in thousands): June 30, 2020 March 31, 2020 Assets Operating lease, right-of-use assets $ 76,054 $ 78,963 Liabilities Operating lease liabilities, current $ 9,989 $ 5,875 Operating lease liabilities, non-current 87,884 92,452 Total operating lease liabilities $ 97,873 $ 98,327 The components of lease expense were as follows (in thousands): Three Months Ended June 30, 2020 2019 Operating lease expense $ 3,750 $ 2,085 Variable lease expense 782 209 Short-term lease expense was immaterial for the three months ended June 30, 2020 and 2019 . Operating cash flow from operating lease was $2.1 million and $2.3 million , respectively, for the three months ended June 30, 2020 and 2019 . The following table presents supplemental information for the three months ended June 30, 2020 (in thousands, except for weighted average): Weighted average remaining lease term 8.8 years Weighted average discount rate 4.0% The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of June 30, 2020 (in thousands): Remainder of 2021 $ 7,549 2022 16,218 2023 15,079 2024 11,718 2025 11,382 Thereafter 58,074 Total lease payments $ 120,020 Less: imputed interest (20,501 ) Less: lease incentives receivable (1,646 ) Present value of lease liabilities $ 97,873 Lease Assignment In the fourth quarter of fiscal 2018, the Company entered into a 132 -month lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord"), 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. On April 30, 2019, due to the Company's rapid growth and greater than anticipated future space needs, the Company entered into an assignment and assumption (the "Assignment") of the Agreement with the Landlord, and Roku Inc., a Delaware corporation ("Roku"), whereby the Company assigned to Roku the Agreement. Pursuant to the Assignment, 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. The Company also expects to receive the reimbursement of base rent and direct expenses from Roku by the end of the Company’s fiscal year ending March 31, 2022 in accordance with the Assignment. The obligations related to the Agreement are not included in the right-of-use asset or lease liabilities as of June 30, 2020 . The remaining obligations related to the Assignment of $6.9 million and the termination fee of $0.8 million are recorded in other accrued liabilities and other liabilities, non-current, respectively, in the Company's condensed consolidated balance sheet. The expected receivable of $6.9 million |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Other Commitments, Indemnifications, and Contingencies From time to time, the Company receives inquiries from federal and various state and municipal taxing agencies with respect to the remittance of sales, use, telecommunications, excise, payroll, and income taxes. Several jurisdictions are currently conducting tax audits of the Company's records. The Company collects from its customers or has accrued for taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrued taxes when facts relating to specific exposures warrant such adjustment. The Company continues to conduct periodic review of the taxability of certain of its services that may be subject to sales, use, telecommunications or other similar indirect taxes in certain jurisdictions. As of June 30, 2020 and March 31, 2020, the Company had accrued contingent indirect tax liabilities of $4.5 million . Legal Proceedings The Company, from time to time, may be involved in a variety of claims, lawsuits, investigations and other proceedings, including patent infringement claims, employment litigation, regulatory compliance matters and contractual disputes, that can arise in the normal course of the Company's operations. 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. As of June 30, 2020 , the Company does not have any material provisions for any such lawsuits, claims and proceedings and believes it is not probable that a loss had been incurred. Litigation is inherently unpredictable and subject to significant uncertainties. While there can be no assurances that favorable final outcomes will be obtained, the Company believes it has valid defenses with respect to legal matters pending against it. Future litigation could be costly to defend, could impose significant burdens on employees and cause the diversion of management's attention, and could upon resolution have a material adverse effect on the Company's business, results of operations, financial condition and cash flows. |
CONVERTIBLE SENIOR NOTES AND CA
CONVERTIBLE SENIOR NOTES AND CAPPED CALL | 3 Months Ended |
Jun. 30, 2020 | |
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 "Initial Notes") due 2024 in a private placement, including the exercise in full of the initial purchasers' option to purchase additional notes. The Initial 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 Initial 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 . In November 2019, the Company issued an additional $75 million aggregate principal amount of 0.50% convertible senior notes (the "Additional Notes" and together with the Initial Notes, the "Notes") due 2024 in a registered offering under the same indenture as the Initial Notes. The total net proceeds from the Additional Notes, after deducting underwriting discounts, debt issuance costs, and costs of the capped call transactions described below, were approximately $64.6 million . The Additional Notes constitute a further issuance of, and form a single series with, the Company’s outstanding 0.50% convertible senior notes due 2024 issued in February 2019 in the aggregate principal amount of $287.5 million . Immediately after giving effect to the issuance of the Additional Notes, the Company has $362.5 million aggregate principal amount of convertible senior 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 February 1, 2020. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. Each $1,000 principal amount of the Notes are 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. The Notes will be convertible at certain times and upon the occurrence of certain events in the future. Further, 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 three months ended June 30, 2020 , 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. The net carrying amount of the liability component of the Notes was as follows (in thousands): June 30, 2020 March 31, 2020 Principal $ 362,500 $ 362,500 Unamortized debt discount (65,919 ) (69,987 ) Unamortized issuance costs (919 ) (976 ) Net carrying amount $ 295,662 $ 291,537 Interest expense related to the Notes was as follows (in thousands): Three Months Ended June 30, 2020 2019 Contractual interest expense $ 453 $ 359 Amortization of debt discount 4,068 3,146 Amortization of issuance costs 57 26 Total interest expense $ 4,578 $ 3,531 Capped Call In connection with the pricing of the Initial Notes and Additional 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 14.1 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 in connection with the Initial Notes and $9.3 million in connection with the Additional Notes were recorded as a reduction to additional paid-in capital and will not be remeasured. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following tables summarize information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands): Three Months Ended June 30, 2020 2019 Cost of service revenue $ 1,814 $ 997 Cost of other revenue 787 734 Research and development 6,545 3,864 Sales and marketing 5,739 3,921 General and administrative 7,894 4,081 Total $ 22,779 $ 13,597 Stock options and stock awards activities under the Company's stock plans during three months ended June 30, 2020 and 2019 are summarized as follows (in thousands, except weighted-average grant-date fair value and recognition period): Three Months Ended June 30, 2020 2019 Stock options outstanding at the beginning of the period: 2,274 3,114 Options granted — — Options exercised (1 ) (124 ) Options forfeited (14 ) (16 ) Options outstanding at the end of the period: 2,259 2,974 Weighted-average fair value of grants during the period $ — $ — Total intrinsic value of options exercised during the period $ 5 $ 1,402 Weighted-average remaining recognition period (in years) 1.73 2.46 Stock awards outstanding at the beginning of the period: 9,191 7,820 Stock awards granted 1,304 1,147 Stock awards vested (721 ) (329 ) Stock awards canceled and forfeited (331 ) (445 ) Stock awards outstanding at the end of the period: 9,443 8,193 Weighted-average fair value of grants during the period $ 19.22 $ 22.40 Weighted-average remaining recognition period (in years) 1.76 2.11 Total unrecognized compensation expense at period-end $ 116,957 $ 109,422 Stock Repurchases In May 2017, the Company's board of directors authorized the Company to purchase up to $25.0 million of its common stock from time to time (the "2017 Repurchase Plan"). The 2017 Repurchase Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. The remaining amount available under the 2017 Repurchase Plan at June 30, 2020 was approximately $7.1 million. There were no stock repurchases under the 2017 Repurchase Plan during the three months ended June 30, 2020 and 2019 . |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective tax rate was (0.5)% and (0.4)% for the three months ended June 30, 2020 and 2019 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, 2020 2019 Numerator: Net loss available to common stockholders $ (41,913 ) $ (34,265 ) Denominator: Common shares - basic and diluted 103,607 96,429 Net loss per share Basic and diluted $ (0.40 ) $ (0.36 ) The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, 2020 2019 Stock options 2,259 2,974 Stock awards 9,443 8,188 Potential shares to be issued from ESPP 582 636 Total anti-dilutive shares 12,284 11,798 |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 3 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | GEOGRAPHICAL INFORMATION The following tables set forth the geographic information for each period (in thousands): Three Months Ended June 30, Revenue by geographic area: 2020 2019 United States $ 93,244 $ 83,249 International 28,563 13,426 Total revenue $ 121,807 $ 96,675 Property and equipment by geographic area: June 30, 2020 March 31, 2020 United States $ 89,954 $ 87,673 International 6,158 6,709 Total property and equipment, net $ 96,112 $ 94,382 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
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 condensed consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2021 refers to the fiscal year ending March 31, 2021 ). |
Basis of Presentation | The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. The March 31, 2020 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2020 and notes thereto included in the Company's fiscal 2020 annual report on Form 10-K. There have been no material changes in our significant accounting policies as described in the Company's annual report on Form 10-K for the year ended March 31, 2020 during the three months ended June 30, 2020 , except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update ("ASU") 2016-03, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, further amended by various ASUs and ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40). The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future periods or the entire fiscal year. |
Use of Estimates | The preparation of the condensed consolidated financial statements in conformity with GAAP 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 condensed 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 allowance for credit losses, returns reserve for expected cancellations, fair value of and/or evaluation for impairment of goodwill and intangible assets, capitalization of internally developed software, benefit period for deferred sales commission costs, stock-based compensation expense, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, fair value of convertible senior notes, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions. |
Reclassifications and Other Changes | During the fourth quarter of fiscal 2020, the Company determined that presenting service revenue as revenue from the Company's core communication services would provide transparency and clarity to the users of the financial statements. As such, the Company reclassified certain revenue and cost of revenue on its condensed consolidated statement of operations for the three months ended June 30, 2019. The reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows. Professional services revenue and cost of professional services revenue previously reported in service revenue and cost of service revenue are now reported in other revenue and cost of other revenue. Product revenue and cost of product revenue are also now reported in other revenue and cost of other revenue. |
Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements Not Yet Adopted | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , further amended by ASU 2018-19 issued in November 2019, ASU 2019-04 issued in April 2019, ASU 2019-05 issued in May 2019, ASU 2019-10 issued in November 2019, and ASU 2019-11 issued in November 2019, which replaces the existing impairment model with a forward-looking expected loss method. Under this update, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects the entity's current estimate of credit losses expected to be incurred over the life of the financial instrument. For trade receivables, loans, and other financial instruments, an entity is required to use a forward-looking expected loss model to recognize credit losses that are probable. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes result in more timely recognition of credit losses. These ASUs are effective for annual and interim periods beginning after December 15, 2019, which is fiscal 2021 for the Company. The Company adopted ASU 2016-13 on a modified retrospective basis as of April 1, 2020 through a cumulative-effect adjustment to the Company's beginning accumulated deficit balance; the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of the Company’s customers, and external market factors, including those related to the COVID-19 pandemic. The Company will continue to actively monitor the impact of the recent COVID-19 pandemic on expected credit losses. 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, which is fiscal 2021 for the Company. The Company adopted ASU 2018-13 in the first quarter of fiscal 2021, and the impact of the adoption was immaterial to the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40), which reduces complexity 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, which is fiscal 2021 for the Company; early adoption is permitted. The Company adopted this guidance on a prospective basis effective April 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The amendment will be effective for public companies with fiscal years beginning after December 15, 2020, which is fiscal 2022 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Balances | The following table provides information about receivables, contract assets, and deferred revenues from contracts with customers (in thousands): June 30, 2020 March 31, 2020 Accounts receivable, net $ 40,572 $ 37,811 Contract assets, current, net $ 11,625 $ 10,425 Contract assets, non-current, net $ 13,897 $ 13,698 Deferred revenue, current $ 8,352 $ 7,105 Deferred revenue, non-current $ 2,279 $ 1,119 Contract assets, current and non-current, net and deferred revenue, non-current are recorded in other current assets, other assets, and other liabilities, non-current, respectively. Changes in the contract assets and deferred revenue balances during the three months ended June 30, 2020 are as follows (in thousands): June 30, 2020 March 31, 2020 Change Contract assets $ 25,522 $ 24,123 $ 1,399 Deferred revenue $ 10,631 $ 8,224 $ 2,407 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | Cash, cash equivalents, restricted cash, and available-for-sale investments were as follows (in thousands): As of June 30, 2020 Amortized Costs Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 34,028 $ — $ — $ 34,028 $ 23,652 $ 10,376 $ — $ — Level 1: Money market funds 88,638 — — 88,638 88,638 — — — Treasury securities 11,686 89 — 11,775 — — 11,775 — Subtotal 134,352 89 — 134,441 112,290 10,376 11,775 — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 9,395 1 — 9,396 4,400 — 4,996 — Corporate debt 33,629 152 (7 ) 33,774 — — 23,809 9,965 Subtotal 51,665 153 (7 ) 51,811 4,400 8,641 28,805 9,965 Total assets $ 186,017 $ 242 $ (7 ) $ 186,252 $ 116,690 $ 19,017 $ 40,580 $ 9,965 As of March 31, 2020 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 31,378 $ — $ — $ 31,378 $ 21,002 $ 10,376 $ — $ — Level 1: Money market funds 110,796 — — 110,796 110,796 — — — Treasury securities 6,192 116 — 6,308 — — — 6,308 Subtotal 148,366 116 — 148,482 131,798 10,376 — 6,308 Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 14,979 6 — 14,985 5,596 — 9,389 — Corporate debt 34,153 32 (341 ) 33,844 — — 24,069 9,775 Subtotal 57,773 38 (341 ) 57,470 5,596 8,641 33,458 9,775 Total assets $ 206,139 $ 154 $ (341 ) $ 205,952 $ 137,394 $ 19,017 $ 33,458 $ 16,083 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands): July 17, 2019 Cash $ 4,473 Accounts receivable 9,438 Intangible assets 21,010 Other assets 787 Goodwill 91,060 Accounts payable (9,548 ) Deferred revenue (90 ) Total consideration $ 117,130 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The value of the acquired intangible assets acquired are as follows (in thousands): Fair Value Useful life (in Years) Trade and domain names $ 990 0.8 Developed technology 13,830 7 Customer relationships 6,190 7 Total intangible assets $ 21,010 |
INTANGIBLE ASSETS, GOODWILL, _2
INTANGIBLE ASSETS, GOODWILL, AND OTHER ASSETS (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Schedule of Carrying Value of Intangible Assets | The carrying value of intangible assets consisted of the following (in thousands): June 30, 2020 March 31, 2020 Gross Accumulated Net Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 33,942 $ (17,747 ) $ 16,195 $ 33,932 $ (16,312 ) $ 17,620 Customer relationships 11,395 (5,817 ) 5,578 11,409 (5,412 ) 5,997 Trade and domain names 985 (985 ) — 983 (599 ) 384 Total acquired identifiable intangible assets $ 46,322 $ (24,549 ) $ 21,773 $ 46,324 $ (22,323 ) $ 24,001 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At June 30, 2020 , the expected future amortization expense of these intangible assets is as follows (in thousands): Remainder of 2021 $ 4,643 2022 4,708 2023 3,156 2024 2,851 2025 2,851 Thereafter 3,564 Total $ 21,773 |
Schedule of Goodwill | The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands): Balance at March 31, 2020 $ 128,300 Foreign currency translation adjustments 680 Balance at June 30, 2020 $ 128,980 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Leases | The following table provides balance sheet information related to leases as of June 30, 2020 (in thousands): June 30, 2020 March 31, 2020 Assets Operating lease, right-of-use assets $ 76,054 $ 78,963 Liabilities Operating lease liabilities, current $ 9,989 $ 5,875 Operating lease liabilities, non-current 87,884 92,452 Total operating lease liabilities $ 97,873 $ 98,327 |
Schedule of Lease, Cost | The following table presents supplemental information for the three months ended June 30, 2020 (in thousands, except for weighted average): Weighted average remaining lease term 8.8 years Weighted average discount rate 4.0% The components of lease expense were as follows (in thousands): Three Months Ended June 30, 2020 2019 Operating lease expense $ 3,750 $ 2,085 Variable lease expense 782 209 |
Schedule of Lessee, Operating Leases, Liability, Maturity | The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of June 30, 2020 (in thousands): Remainder of 2021 $ 7,549 2022 16,218 2023 15,079 2024 11,718 2025 11,382 Thereafter 58,074 Total lease payments $ 120,020 Less: imputed interest (20,501 ) Less: lease incentives receivable (1,646 ) Present value of lease liabilities $ 97,873 |
CONVERTIBLE SENIOR NOTES AND _2
CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | The net carrying amount of the liability component of the Notes was as follows (in thousands): June 30, 2020 March 31, 2020 Principal $ 362,500 $ 362,500 Unamortized debt discount (65,919 ) (69,987 ) Unamortized issuance costs (919 ) (976 ) Net carrying amount $ 295,662 $ 291,537 |
Schedule of Interest Income and Interest Expense Disclosure | Interest expense related to the Notes was as follows (in thousands): Three Months Ended June 30, 2020 2019 Contractual interest expense $ 453 $ 359 Amortization of debt discount 4,068 3,146 Amortization of issuance costs 57 26 Total interest expense $ 4,578 $ 3,531 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Arrangement, Activity | The following tables summarize information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands): Three Months Ended June 30, 2020 2019 Cost of service revenue $ 1,814 $ 997 Cost of other revenue 787 734 Research and development 6,545 3,864 Sales and marketing 5,739 3,921 General and administrative 7,894 4,081 Total $ 22,779 $ 13,597 Stock options and stock awards activities under the Company's stock plans during three months ended June 30, 2020 and 2019 are summarized as follows (in thousands, except weighted-average grant-date fair value and recognition period): Three Months Ended June 30, 2020 2019 Stock options outstanding at the beginning of the period: 2,274 3,114 Options granted — — Options exercised (1 ) (124 ) Options forfeited (14 ) (16 ) Options outstanding at the end of the period: 2,259 2,974 Weighted-average fair value of grants during the period $ — $ — Total intrinsic value of options exercised during the period $ 5 $ 1,402 Weighted-average remaining recognition period (in years) 1.73 2.46 Stock awards outstanding at the beginning of the period: 9,191 7,820 Stock awards granted 1,304 1,147 Stock awards vested (721 ) (329 ) Stock awards canceled and forfeited (331 ) (445 ) Stock awards outstanding at the end of the period: 9,443 8,193 Weighted-average fair value of grants during the period $ 19.22 $ 22.40 Weighted-average remaining recognition period (in years) 1.76 2.11 Total unrecognized compensation expense at period-end $ 116,957 $ 109,422 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, 2020 2019 Numerator: Net loss available to common stockholders $ (41,913 ) $ (34,265 ) Denominator: Common shares - basic and diluted 103,607 96,429 Net loss per share Basic and diluted $ (0.40 ) $ (0.36 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, 2020 2019 Stock options 2,259 2,974 Stock awards 9,443 8,188 Potential shares to be issued from ESPP 582 636 Total anti-dilutive shares 12,284 11,798 |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth the geographic information for each period (in thousands): Three Months Ended June 30, Revenue by geographic area: 2020 2019 United States $ 93,244 $ 83,249 International 28,563 13,426 Total revenue $ 121,807 $ 96,675 Property and equipment by geographic area: June 30, 2020 March 31, 2020 United States $ 89,954 $ 87,673 International 6,158 6,709 Total property and equipment, net $ 96,112 $ 94,382 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | 3 Months Ended |
Jun. 30, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract with customer, revenue recognized | $ 3.7 |
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 | 5 years |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 40,572 | $ 37,811 |
Contract assets, current, net | 11,625 | 10,425 |
Contract assets, non-current, net | 13,897 | 13,698 |
Deferred revenue, current | 8,352 | 7,105 |
Deferred revenue, non-current | $ 2,279 | $ 1,119 |
REVENUE RECOGNITION - Changes i
REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 25,522 | $ 24,123 |
Change in contract assets | 1,399 | |
Deferred revenue | 10,631 | $ 8,224 |
Change in deferred revenue | $ 2,407 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 290 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 36 months |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 116,690 | $ 137,394 | $ 269,025 |
Accumulated gross unrealized gain, before tax | 242 | 154 | |
Accumulated gross unrealized loss, before tax | (7) | (341) | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 186,017 | 206,139 | |
Cash, cash equivalents and debt securities available-for-sale | 186,252 | 205,952 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accumulated gross unrealized gain, before tax | 89 | 116 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 134,352 | 148,366 | |
Cash, cash equivalents and debt securities available-for-sale | 134,441 | 148,482 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 51,665 | 57,773 | |
Accumulated gross unrealized gain, before tax | 153 | 38 | |
Accumulated gross unrealized loss, before tax | (7) | (341) | |
Debt securities, available-for-sale | 51,811 | 57,470 | |
Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 88,638 | 110,796 | |
Cash and cash equivalents, fair value | 88,638 | 110,796 | |
Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 34,028 | 31,378 | |
Cash and cash equivalents, fair value | 34,028 | 31,378 | |
Treasury securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 11,686 | 6,192 | |
Accumulated gross unrealized gain, before tax | 89 | 116 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Debt securities, available-for-sale | 11,775 | 6,308 | |
Certificate of deposit | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 8,641 | 8,641 | |
Debt securities, available-for-sale | 8,641 | 8,641 | |
Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 9,395 | 14,979 | |
Accumulated gross unrealized gain, before tax | 1 | 6 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Debt securities, available-for-sale | 9,396 | 14,985 | |
Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 33,629 | 34,153 | |
Accumulated gross unrealized gain, before tax | 152 | 32 | |
Accumulated gross unrealized loss, before tax | (7) | (341) | |
Debt securities, available-for-sale | 33,774 | 33,844 | |
Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 116,690 | 137,394 | |
Cash and Cash Equivalents | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 112,290 | 131,798 | |
Cash and Cash Equivalents | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 4,400 | 5,596 | |
Cash and Cash Equivalents | Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 88,638 | 110,796 | |
Cash and Cash Equivalents | Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 23,652 | 21,002 | |
Cash and Cash Equivalents | Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 4,400 | 5,596 | |
Restricted Cash (Current & Non-Current) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 19,017 | 19,017 | |
Restricted Cash (Current & Non-Current) | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 10,376 | 10,376 | |
Restricted Cash (Current & Non-Current) | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 8,641 | 8,641 | |
Restricted Cash (Current & Non-Current) | Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 10,376 | 10,376 | |
Restricted Cash (Current & Non-Current) | Certificate of deposit | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 8,641 | 8,641 | |
Short-Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 40,580 | 33,458 | |
Short-Term Investments | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 11,775 | ||
Short-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 28,805 | 33,458 | |
Short-Term Investments | Treasury securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 11,775 | ||
Short-Term Investments | Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 4,996 | 9,389 | |
Short-Term Investments | Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 23,809 | 24,069 | |
Long-Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 9,965 | 16,083 | |
Long-Term Investments | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 6,308 | |
Long-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 9,965 | 9,775 | |
Long-Term Investments | Treasury securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 6,308 | |
Long-Term Investments | Certificate of deposit | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | |
Long-Term Investments | Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 9,965 | $ 9,775 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - Level 2 - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 51,665 | $ 57,773 |
Convertible Debt | Initial Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value | 326,300 | |
Certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 8,641 | $ 8,641 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - Wavecell Pte. Ltd. $ in Millions | Jul. 17, 2019USD ($) |
Business Acquisition [Line Items] | |
Business combination, consideration transferred | $ 117.1 |
Payments to acquire business | 72.8 |
Business combination, value of stock issued | 44.3 |
Cash held back to cover indemnity claims | 10.4 |
Equity held back to cover indemnity claims | $ 8.5 |
Vesting period | 3 years |
Time-Based Restricted Stock Awards | |
Business Acquisition [Line Items] | |
Business combination, value of stock issued | $ 13.2 |
Performance-Based Restricted Stock Awards | |
Business Acquisition [Line Items] | |
Business combination, value of stock issued | 6.6 |
Restricted Cash, Current and Other Accrued Liabilities | |
Business Acquisition [Line Items] | |
Cash held back to cover indemnity claims | 10.4 |
Additional paid-in capital | |
Business Acquisition [Line Items] | |
Equity held back to cover indemnity claims | $ 8.5 |
BUSINESS COMBINATIONS - Allocat
BUSINESS COMBINATIONS - Allocation of the Fair Value of Purchase Consideration (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jul. 17, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 128,980 | $ 128,300 | |
Wavecell Pte. Ltd. | |||
Business Acquisition [Line Items] | |||
Cash | $ 4,473 | ||
Accounts receivable | 9,438 | ||
Intangible assets | 21,010 | ||
Other assets | 787 | ||
Goodwill | 91,060 | ||
Accounts payable | (9,548) | ||
Deferred revenue | (90) | ||
Total consideration | $ 117,130 |
BUSINESS COMBINATIONS - Fair Va
BUSINESS COMBINATIONS - Fair Value Intangible Assets Acquired (Details) - Wavecell Pte. Ltd. $ in Thousands | Jul. 17, 2019USD ($) |
Business Acquisition [Line Items] | |
Total intangible assets | $ 21,010 |
Trade and domain names | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 990 |
Useful life (in Years) | 9 months 18 days |
Trade and domain names | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 13,830 |
Useful life (in Years) | 7 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 6,190 |
Useful life (in Years) | 7 years |
INTANGIBLE ASSETS, GOODWILL, _3
INTANGIBLE ASSETS, GOODWILL, AND OTHER ASSETS - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 46,322 | $ 46,324 |
Accumulated Amortization | (24,549) | (22,323) |
Net Carrying Amount | 21,773 | 24,001 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,942 | 33,932 |
Accumulated Amortization | (17,747) | (16,312) |
Net Carrying Amount | 16,195 | 17,620 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,395 | 11,409 |
Accumulated Amortization | (5,817) | (5,412) |
Net Carrying Amount | 5,578 | 5,997 |
Trade and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 985 | 983 |
Accumulated Amortization | (985) | (599) |
Net Carrying Amount | $ 0 | $ 384 |
INTANGIBLE ASSETS, GOODWILL, _4
INTANGIBLE ASSETS, GOODWILL, AND OTHER ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Capitalized contract cost, amortization | $ 6.1 | $ 4.2 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, remaining amortization period | 4 years 9 months 18 days | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, remaining amortization period | 5 years 8 months 12 days |
INTANGIBLE ASSETS, GOODWILL, _5
INTANGIBLE ASSETS, GOODWILL, AND OTHER ASSETS - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Remainder of 2021 | $ 4,643 | |
2022 | 4,708 | |
2023 | 3,156 | |
2024 | 2,851 | |
2025 | 2,851 | |
Thereafter | 3,564 | |
Net Carrying Amount | $ 21,773 | $ 24,001 |
INTANGIBLE ASSETS, GOODWILL, _6
INTANGIBLE ASSETS, GOODWILL, AND OTHER ASSETS - Summary of Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 128,300 |
Foreign currency translation adjustments | 680 |
Goodwill, ending balance | $ 128,980 |
LEASES - Components of Lease Ri
LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Assets | ||
Operating lease, right-of-use assets | $ 76,054 | $ 78,963 |
Liabilities | ||
Operating lease liabilities, current | 9,989 | 5,875 |
Operating lease liabilities, non-current | 87,884 | 92,452 |
Total operating lease liabilities | $ 97,873 | $ 98,327 |
LEASES - Operating Lease Expens
LEASES - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 3,750 | $ 2,085 |
Variable lease expense | $ 782 | $ 209 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2018ft² | |
Leases [Abstract] | |||
Operating cash flow from operating leases | $ 2.1 | $ 2.3 | |
Term of contract | 132 months | ||
Area of real estate property | ft² | 162,000 | ||
Liability related to lease assignment | 6.9 | ||
Termination fee | 0.8 | ||
Receivable related to lease assignment | $ 6.9 |
LEASES - Supplemental Informati
LEASES - Supplemental Information (Details) | Jun. 30, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 8 years 9 months 18 days |
Weighted average discount rate | 4.00% |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 7,549 | |
2022 | 16,218 | |
2023 | 15,079 | |
2024 | 11,718 | |
2025 | 11,382 | |
Thereafter | 58,074 | |
Total lease payments | 120,020 | |
Less: imputed interest | (20,501) | |
Less: lease incentives receivable | (1,646) | |
Present value of lease liabilities | $ 97,873 | $ 98,327 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 |
State And Local Taxes And Surcharges | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 4.5 | $ 4.5 |
CONVERTIBLE SENIOR NOTES AND _3
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | ||||
Nov. 30, 2019USD ($) | Feb. 28, 2019USD ($)day$ / sharesshares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 01, 2019USD ($) | |
Aggregate Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, strike price per share (in dollars per share) | $ / shares | $ 25.68 | ||||
Initial Notes | |||||
Debt Instrument [Line Items] | |||||
Payments for capped call transactions | $ 33,700,000 | ||||
Additional Notes | |||||
Debt Instrument [Line Items] | |||||
Payments for capped call transactions | $ 9,300,000 | ||||
Convertible Debt | Aggregate Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 362,500,000 | $ 362,500,000 | $ 362,500,000 | ||
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, redemption price, percentage | 100.00% | ||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||||
Debt instrument, convertible, threshold trading days | day | 20 | ||||
Debt instrument, convertible, threshold consecutive trading days | day | 30 | ||||
Debt instrument, initial cap price per share (in dollars per share) | $ / shares | $ 39.50 | ||||
Convertible Debt | Aggregate Notes | Call Option | |||||
Debt Instrument [Line Items] | |||||
Option indexed to issuer's equity, indexed shares (in shares) | shares | 14.1 | ||||
Convertible Debt | Initial Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 287,500,000 | ||||
Debt instrument, interest rate | 0.50% | ||||
Proceeds from issuance of debt | $ 245,800,000 | ||||
Convertible Debt | Additional Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 75,000,000 | ||||
Debt instrument, interest rate | 0.50% | ||||
Proceeds from issuance of debt | $ 64,600,000 |
CONVERTIBLE SENIOR NOTES AND _4
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Carrying Amount of the Liability Component (Details) - Convertible Debt - Aggregate Notes - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 01, 2019 |
Debt Instrument [Line Items] | |||
Principal | $ 362,500,000 | $ 362,500,000 | $ 362,500,000 |
Unamortized debt discount | (65,919,000) | (69,987,000) | |
Unamortized issuance costs | (919,000) | (976,000) | |
Net carrying amount | $ 295,662,000 | $ 291,537,000 |
CONVERTIBLE SENIOR NOTES AND _5
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Interest Expense (Details) - Convertible Debt - Aggregate Notes - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 453 | $ 359 |
Amortization of debt discount | 4,068 | 3,146 |
Amortization of issuance costs | 57 | 26 |
Total interest expense | $ 4,578 | $ 3,531 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 22,779 | $ 13,597 |
Cost of Sales | Service | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,814 | 997 |
Cost of Sales | Other revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 787 | 734 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 6,545 | 3,864 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 5,739 | 3,921 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 7,894 | $ 4,081 |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock Option Rollforward | ||
Stock options outstanding at the beginning of the period (in shares) | 2,274 | 3,114 |
Options granted (in shares) | 0 | 0 |
Options exercised (in shares) | (1) | (124) |
Options forfeited (in shares) | (14) | (16) |
Options outstanding at the end of the period (in shares) | 2,259 | 2,974 |
Weighted-average fair value of grants during the period (in dollars per share) | $ 0 | $ 0 |
Total intrinsic value of options exercised during the period | $ 5 | $ 1,402 |
Weighted-average remaining recognition period (in years) | 1 year 8 months 23 days | 2 years 5 months 15 days |
Stock Award Rollforward | ||
Stock awards outstanding at the beginning of the period (in shares) | 9,191 | 7,820 |
Stock awards granted (in shares) | 1,304 | 1,147 |
Stock awards vested (in shares) | (721) | (329) |
Stock awards canceled and forfeited (in shares) | (331) | (445) |
Stock awards outstanding at the end of the period (in shares) | 9,443 | 8,193 |
Weighted-average fair value of grants during the period (in dollars per share) | $ 19.22 | $ 22.40 |
Weighted-average remaining recognition period (in years) | 1 year 9 months 3 days | 2 years 1 month 9 days |
Total unrecognized compensation expense at period-end | $ 116,957 | $ 109,422 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - 2017 Repurchase Plan - USD ($) | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized repurchase amount | $ 25,000,000 | ||
Remaining authorized repurchase amount | $ 7,100,000 | ||
Stock repurchased during period (in shares) | 0 | 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (0.50%) | (0.40%) |
NET LOSS PER SHARE - Earnings P
NET LOSS PER SHARE - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||
Net loss available to common stockholders | $ (41,913) | $ (34,265) |
Denominator: | ||
Common shares - basic and diluted (in shares) | 103,607 | 96,429 |
Net loss per share | ||
Basic and diluted (in dollars per share) | $ (0.40) | $ (0.36) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 12,284 | 11,798 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 2,259 | 2,974 |
Stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 9,443 | 8,188 |
Potential shares to be issued from ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares (in shares) | 582 | 636 |
GEOGRAPHICAL INFORMATION - Reve
GEOGRAPHICAL INFORMATION - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 121,807 | $ 96,675 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 93,244 | 83,249 |
International | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 28,563 | $ 13,426 |
GEOGRAPHICAL INFORMATION - PPE
GEOGRAPHICAL INFORMATION - PPE (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 96,112 | $ 94,382 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 89,954 | 87,673 |
International | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 6,158 | $ 6,709 |