Cover Page
Cover Page - shares | 6 Months Ended | |
Sep. 30, 2020 | Oct. 22, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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 $.001 PER SHARE | |
Trading Symbol | EGHT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 106,321,438 | |
Entity Central Index Key | 0001023731 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 121,848 | $ 137,394 |
Restricted cash, current | 6,917 | 10,376 |
Short-term investments | 31,381 | 33,458 |
Accounts receivable, net | 42,971 | 37,811 |
Deferred sales commission costs, current | 26,334 | 22,444 |
Other current assets | 39,088 | 35,679 |
Total current assets | 268,539 | 277,162 |
Property and equipment, net | 96,185 | 94,382 |
Operating lease, right-of-use assets | 72,841 | 78,963 |
Intangible assets, net | 19,959 | 24,001 |
Goodwill | 130,152 | 128,300 |
Restricted cash, non-current | 8,641 | 8,641 |
Long-term investments | 6,181 | 16,083 |
Deferred sales commission costs, non-current | 64,061 | 53,307 |
Other assets | 20,685 | 19,802 |
Total assets | 687,244 | 700,641 |
Current liabilities: | ||
Accounts payable | 35,278 | 40,261 |
Accrued compensation | 28,698 | 22,656 |
Accrued taxes | 11,574 | 10,251 |
Operating lease liabilities, current | 9,498 | 5,875 |
Deferred revenue, current | 9,452 | 7,105 |
Other accrued liabilities | 21,913 | 37,277 |
Total current liabilities | 116,413 | 123,425 |
Operating lease liabilities, non-current | 87,462 | 92,452 |
Convertible senior notes, net | 299,853 | 291,537 |
Other liabilities, non-current | 9,057 | 2,496 |
Total liabilities | 512,785 | 509,910 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock | 106 | 103 |
Additional paid-in capital | 688,116 | 625,474 |
Accumulated other comprehensive loss | (7,967) | (12,176) |
Accumulated deficit | (505,796) | (422,670) |
Total stockholders' equity | 174,459 | 190,731 |
Total liabilities and stockholders' equity | $ 687,244 | $ 700,641 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenue | $ 129,133 | $ 109,517 | $ 250,940 | $ 206,192 |
Operating expenses: | ||||
Research and development | 21,567 | 19,434 | 43,061 | 37,765 |
Sales and marketing | 61,399 | 57,895 | 121,549 | 111,494 |
General and administrative | 22,769 | 20,435 | 48,559 | 40,042 |
Total operating expenses | 162,231 | 147,461 | 321,798 | 276,689 |
Loss from operations | (33,098) | (37,944) | (70,858) | (70,497) |
Other expense, net | (5,178) | (2,732) | (9,103) | (4,296) |
Loss before provision for income taxes | (38,276) | (40,676) | (79,961) | (74,793) |
Provision for income taxes | 137 | 256 | 365 | 404 |
Net loss | $ (38,413) | $ (40,932) | $ (80,326) | $ (75,197) |
Net loss per share: | ||||
Basic and diluted (in dollars per share) | $ (0.37) | $ (0.42) | $ (0.77) | $ (0.77) |
Weighted-average common shares outstanding: | ||||
Basic and diluted (in shares) | 104,620 | 98,353 | 104,116 | 97,356 |
Service | ||||
Total revenue | $ 120,942 | $ 101,345 | $ 235,125 | $ 191,184 |
Operating expenses: | ||||
Cost of goods and services sold | 44,803 | 35,813 | 85,799 | 61,113 |
Other | ||||
Total revenue | 8,191 | 8,172 | 15,815 | 15,008 |
Operating expenses: | ||||
Cost of goods and services sold | $ 11,693 | $ 13,884 | $ 22,830 | $ 26,275 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (38,413) | $ (40,932) | $ (80,326) | $ (75,197) |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) on investments in securities | (43) | (3) | 379 | 118 |
Foreign currency translation adjustment | 2,945 | (3,253) | 3,830 | (3,905) |
Comprehensive loss | $ (35,511) | $ (44,188) | $ (76,117) | $ (78,984) |
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/loss | 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) | ||
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] | |||||||
Unrealized investment gain/loss | 118 | ||||||
Foreign currency translation adjustment | (3,905) | ||||||
Net loss | (75,197) | ||||||
Ending balance (in shares) at Sep. 30, 2019 | 99,808,688 | ||||||
Ending balance at Sep. 30, 2019 | 238,877 | $ 100 | 575,416 | (11,140) | (325,499) | ||
Beginning balance (in shares) at Jun. 30, 2019 | 96,571,196 | ||||||
Beginning balance at Jun. 30, 2019 | 230,147 | $ 97 | 522,501 | (7,884) | (284,567) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plans, less withholding (in shares) | 1,761,483 | ||||||
Issuance of common stock under stock plans, less withholding | (788) | $ 2 | (790) | ||||
Stock-based compensation expense | 17,867 | 17,867 | |||||
Issuance of common stock related to acquisitions (in shares) | 1,476,009 | ||||||
Issuance of common stock related to acquisition | 35,839 | $ 1 | 35,838 | 0 | |||
Unrealized investment gain/loss | (3) | (3) | |||||
Foreign currency translation adjustment | (3,253) | (3,253) | |||||
Net loss | (40,932) | (40,932) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 99,808,688 | ||||||
Ending balance at Sep. 30, 2019 | 238,877 | $ 100 | 575,416 | (11,140) | (325,499) | ||
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) | $ (2,800) | $ (2,800) |
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/loss | 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) | ||
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) | $ (2,800) | $ (2,800) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Unrealized investment gain/loss | 379 | ||||||
Foreign currency translation adjustment | 3,830 | ||||||
Net loss | (80,326) | ||||||
Ending balance (in shares) at Sep. 30, 2020 | 105,986,231 | ||||||
Ending balance at Sep. 30, 2020 | 174,459 | $ 106 | 688,116 | (7,967) | (505,796) | ||
Beginning balance (in shares) at Jun. 30, 2020 | 103,867,035 | ||||||
Beginning balance at Jun. 30, 2020 | 178,866 | $ 104 | 657,014 | (10,869) | (467,383) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plans, less withholding (in shares) | 2,119,196 | ||||||
Issuance of common stock under stock plans, less withholding | 4,708 | $ 2 | 4,706 | ||||
Stock-based compensation expense | 26,396 | 26,396 | |||||
Unrealized investment gain/loss | (43) | (43) | |||||
Foreign currency translation adjustment | 2,945 | 2,945 | |||||
Net loss | (38,413) | (38,413) | |||||
Ending balance (in shares) at Sep. 30, 2020 | 105,986,231 | ||||||
Ending balance at Sep. 30, 2020 | $ 174,459 | $ 106 | $ 688,116 | $ (7,967) | $ (505,796) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (80,326) | $ (75,197) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 5,690 | 4,599 |
Amortization of intangible assets | 4,055 | 3,827 |
Amortization of capitalized software | 12,893 | 8,242 |
Amortization of debt discount and issuance costs | 8,317 | 6,397 |
Amortization of deferred sales commission costs | 12,764 | 8,718 |
Allowance for credit losses | 2,994 | 944 |
Operating lease expense, net of accretion | 7,585 | 6,234 |
Stock-based compensation | 48,101 | 30,988 |
Other | 467 | 690 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (6,290) | (2,563) |
Deferred sales commission costs | (26,811) | (20,498) |
Other current and non-current assets | (7,532) | (17,418) |
Accounts payable and accruals | 1,350 | (400) |
Deferred revenue | 3,675 | 922 |
Net cash used in operating activities | (13,068) | (44,515) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,171) | (7,138) |
Purchase of businesses | (3,459) | (58,741) |
Cost of capitalized software | (16,158) | (14,339) |
Proceeds from maturities of investments | 30,071 | 8,545 |
Proceeds from sales of investments | 219 | 30,639 |
Purchases of investments | (17,968) | (18,890) |
Net cash used in investing activities | (11,466) | (59,924) |
Cash flows from financing activities: | ||
Finance lease payments | (70) | (227) |
Tax-related withholding of common stock | (69) | (5,426) |
Proceeds from issuance of common stock under employee stock plans | 4,710 | 6,134 |
Net cash provided by financing activities | 4,571 | 481 |
Effects of currency exchange rates on cash, cash equivalent, and restricted cash | 958 | 511 |
Net decrease in cash, cash equivalents, and restricted cash | (19,005) | (103,447) |
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 | 137,406 | 181,236 |
Supplemental and non-cash disclosures: | ||
Income taxes paid | 406 | 361 |
Interest paid | 906 | 647 |
Right of use assets obtained in exchange for new or modified operating lease liabilities | 0 | 62,832 |
Reconciliation Of Cash Cash Equivalents And Restricted Cash [Abstract] | ||
Total cash, cash equivalents, and restricted cash | $ 137,406 | $ 181,236 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended |
Sep. 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 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 | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND CONSOLIDATION 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 and six months ended September 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. 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. 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 other long-lived 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 and six months ended September 30, 2019. 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. The reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows. In addition, certain prior year amounts in the condensed consolidated statements of cash flows have been reclassified to conform with the current year presentation. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, 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. 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. 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 Company adopted ASU 2018-13 on April 1, 2020, 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 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. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies accounting for convertible instruments by eliminating two of the three accounting models available for convertible debt instruments and convertible preferred stock. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation. The guidance is effective for fiscal years beginning after December 15, 2021, which is fiscal 2023 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 | 6 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The Company disaggregates its revenue by geographic regions. 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): September 30, 2020 March 31, 2020 Accounts receivable, net $ 42,971 $ 37,811 Contract assets, current, net (included in Other current assets) $ 11,712 $ 10,425 Contract assets, non-current, net (included in Other assets) $ 14,837 $ 13,698 Deferred revenue, current $ 9,452 $ 7,105 Deferred revenue, non-current (included in Other liabilities, non-current) $ 2,678 $ 1,119 Changes in the contract assets and deferred revenue balances during the six months ended September 30, 2020 are as follows (in thousands): September 30, 2020 March 31, 2020 Change Contract assets $ 26,549 $ 24,123 $ 2,426 Deferred revenue $ 12,130 $ 8,224 $ 3,906 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 $1.3 million and $5.0 million was recognized during the three and six months ended September 30, 2020, which were included in the deferred revenue balance at the beginning of the period. Remaining Performance Obligations The Company's subscription terms typically range from one Deferred Sales Commission Costs Amortization of deferred sales commission costs was $6.7 million and $4.5 million for the three months ended September 30, 2020 and 2019, respectively, and $12.8 million and $8.7 million, for the six months ended September 30, 2020 and 2019, respectively. There were no material write-offs relative to the costs capitalized during these periods. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Sep. 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 September 30, 2020 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 32,611 $ — $ — $ 32,611 $ 25,694 $ 6,917 $ — $ — Level 1: Money market funds 94,354 — — 94,354 94,354 — — — Treasury securities 6,185 68 — 6,253 — — 6,253 — Subtotal 133,150 68 — 133,218 120,048 6,917 6,253 — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 4,399 — — 4,399 1,800 — 2,599 Corporate debt 28,586 124 — 28,710 — — 22,529 6,181 Subtotal 41,626 124 — 41,750 1,800 8,641 25,128 6,181 Total assets $ 174,776 $ 192 $ — $ 174,968 $ 121,848 $ 15,558 $ 31,381 $ 6,181 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 September 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 September 30, 2020, the Company did not have any risk of expected credit losses. As of September 30, 2020, the estimated fair value of the Company's outstanding convertible senior notes (the "Notes") was $336.7 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 | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONSIn July 2019, the Company purchased all of the outstanding shares and equity interests of Wavecell, Pte. Ltd. During the three months ended September 30, 2020, the fair value of all assets acquired and liabilities assumed in the transaction, were finalized, and did not result in any additional adjustments to the preliminary purchase price allocation in the current quarter. Of the $10.4 million cash and 394,515 shares (equivalent to $8.5 million at acquisition) that were held back, the Company released $3.5 million of cash and 116,505 shares on the one-year anniversary of the acquisition. The remaining balance is expected to be released in January 2021. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 6 Months Ended |
Sep. 30, 2020 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets The carrying value of intangible assets consisted of the following (in thousands): September 30, 2020 March 31, 2020 Gross Accumulated Net Gross Accumulated Net Developed technology $ 33,952 $ (19,182) $ 14,770 $ 33,932 $ (16,312) $ 17,620 Customer relationships 11,614 (6,425) 5,189 11,409 (5,412) 5,997 Trade and domain names 986 (986) — 983 (599) 384 Total acquired identifiable intangible assets $ 46,552 $ (26,593) $ 19,959 $ 46,324 $ (22,323) $ 24,001 As of September 30, 2020, the weighted average remaining useful life for technology and customer relationships was 4.8 years and 5.6 years, respectively. At September 30, 2020, the expected future amortization expense of these intangible assets is as follows (in thousands): Remainder of 2021 $ 2,829 2022 4,708 2023 3,156 2024 2,851 2025 2,851 Thereafter 3,564 Total $ 19,959 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 1,852 Balance at September 30, 2020 $ 130,152 |
LEASES
LEASES | 6 Months Ended |
Sep. 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 September 30, 2020 (in thousands): September 30, 2020 March 31, 2020 Assets Operating lease, right-of-use assets $ 72,841 $ 78,963 Liabilities Operating lease liabilities, current $ 9,498 $ 5,875 Operating lease liabilities, non-current 87,462 92,452 Total operating lease liabilities $ 96,960 $ 98,327 The components of lease expense were as follows (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Operating lease expense $ 3,833 $ 4,156 $ 7,583 $ 6,241 Variable lease expense $ 857 $ 229 $ 1,639 $ 438 Short-term lease expense was immaterial for the three and six months ended September 30, 2020 and 2019. Operating cash outflow from operating lease was $4.2 million and $4.5 million, respectively, for the six months ended September 30, 2020 and 2019. The following table presents supplemental information for the six months ended September 30, 2020 (in thousands, except for weighted average): Weighted average remaining lease term 8.6 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 September 30, 2020 (in thousands): Remainder of 2021 $ 5,631 2022 16,193 2023 15,007 2024 11,766 2025 11,429 Thereafter 58,122 Total lease payments $ 118,148 Less: imputed interest (19,542) Less: lease incentives receivable (1,646) Present value of lease liabilities $ 96,960 Lease Assignment |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 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 September 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 September 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 | 6 Months Ended |
Sep. 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 six months ended September 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): September 30, 2020 March 31, 2020 Principal $ 362,500 $ 362,500 Unamortized debt discount (61,786) (69,987) Unamortized issuance costs (861) (976) Net carrying amount $ 299,853 $ 291,537 Interest expense related to the Notes was as follows (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Contractual interest expense $ 453 $ 360 $ 906 $ 719 Amortization of debt discount 4,133 3,198 8,201 6,344 Amortization of issuance costs 58 27 115 53 Total interest expense $ 4,644 $ 3,585 $ 9,222 $ 7,116 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 | 6 Months Ended |
Sep. 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 (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Cost of service revenue $ 2,410 $ 1,182 $ 4,224 $ 2,179 Cost of other revenue 1,113 757 1,900 1,491 Research and development 8,255 4,217 14,800 8,081 Sales and marketing 7,054 5,340 12,793 9,261 General and administrative 6,490 5,895 14,384 9,976 Total $ 25,322 $ 17,391 $ 48,101 $ 30,988 Restricted Stock Units (RSU) and Performance Stock Units (PSU) Activities related to RSU and PSU, collectively Stock Awards, during six months ended September 30, 2020 and 2019 are summarized as follows (in thousands, except weighted-average grant-date fair value and recognition period): Six Months Ended September 30, 2020 2019 Stock awards outstanding at the beginning of the period: 9,191 7,820 Stock awards granted 5,343 5,123 Stock awards vested (2,498) (1,945) Stock awards canceled and forfeited (564) (663) Stock awards outstanding at the end of the period: 11,472 10,335 Weighted-average fair value of grants during the period $ 15.75 $ 22.35 Weighted-average remaining recognition period (in years) 1.96 2.28 Total unrecognized compensation expense at period-end $ 144,066 $ 127,540 Stock Options Activities related to Stock Options, during six months ended September 30, 2020 and 2019 are summarized as follows (in thousands, except weighted-average grant-date fair value and recognition period): Six Months Ended September 30, 2020 2019 Stock options outstanding at the beginning of the period: 2,274 3,114 Options granted — — Options exercised (36) (287) Options canceled and forfeited (28) (39) Options outstanding at the end of the period: 2,210 2,788 Weighted-average fair value of grants during the period $ — $ — Total intrinsic value of options exercised during the period $ 302 $ 3,726 Weighted-average remaining recognition period (in years) 1.54 2.32 Total unrecognized compensation expense at period-end $ 671 $ 1,268 Employee Stock Purchase Plan (ESPP) In July 2020, 329,430 shares were purchased and issued under the ESPP. As of September 30, 2020, there was a total of $2.9 million of unrecognized compensation, net of estimated forfeitures, which will be amortized on a straight line basis over the remaining weighted-average vesting period of 0.57 years. As of September 30, 2020, a total of 3,252,882 shares were available for issuance under the ESPP. Stock Repurchases In May 2017, the Company's board of directors authorized the 2017 Repurchase Plan under which the Company could purchase up to $25.0 million of its common stock. The remaining amount available at September 30, 2020 was approximately $7.1 million. There were no stock repurchases during the three and six months ended September 30, 2020 and 2019. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company's effective tax rate was (0.4)% and (0.6)% for the three months ended September 30, 2020 and 2019, respectively, and (0.5)% for the six months ended September 30, 2020 and 2019. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company continues to maintain against its deferred tax assets. The effective tax rate is calculated by dividing the income tax provision by net loss before income tax expense. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 6 Months Ended |
Sep. 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 September 30, Six Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss available to common stockholders $ (38,413) $ (40,932) $ (80,326) $ (75,197) Denominator: Common shares - basic and diluted 104,620 98,353 104,116 97,356 Net loss per share Basic and diluted $ (0.37) $ (0.42) $ (0.77) $ (0.77) 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 September 30, Six Months Ended September 30, 2020 2019 2020 2019 Stock options 2,210 2,788 2,210 2,788 Stock awards 11,472 10,334 11,472 10,334 Potential shares to be issued from ESPP 529 387 529 387 Total anti-dilutive shares 14,211 13,509 14,211 13,509 |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 6 Months Ended |
Sep. 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 September 30, Six Months Ended September 30, Revenue by geographic area: 2020 2019 2020 2019 United States $ 96,105 $ 85,428 $ 189,349 $ 168,676 International 33,028 24,089 61,591 37,516 Total revenue $ 129,133 $ 109,517 $ 250,940 $ 206,192 Property and equipment by geographic area: September 30, 2020 March 31, 2020 United States $ 90,493 $ 87,673 International 5,692 6,709 Total property and equipment, net $ 96,185 $ 94,382 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
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 and six months ended September 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. 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. |
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 other long-lived 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 and six months ended September 30, 2019. 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. The reclassifications did not have any impact on total revenue, consolidated net loss, or cash flows.In addition, certain prior year amounts in the condensed consolidated statements of cash flows have been reclassified to conform with the current year presentation. |
Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements Not Yet Adopted | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, 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. 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. 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 Company adopted ASU 2018-13 on April 1, 2020, 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 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. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies accounting for convertible instruments by eliminating two of the three accounting models available for convertible debt instruments and convertible preferred stock. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation. The guidance is effective for fiscal years beginning after December 15, 2021, which is fiscal 2023 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) | 6 Months Ended |
Sep. 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): September 30, 2020 March 31, 2020 Accounts receivable, net $ 42,971 $ 37,811 Contract assets, current, net (included in Other current assets) $ 11,712 $ 10,425 Contract assets, non-current, net (included in Other assets) $ 14,837 $ 13,698 Deferred revenue, current $ 9,452 $ 7,105 Deferred revenue, non-current (included in Other liabilities, non-current) $ 2,678 $ 1,119 Changes in the contract assets and deferred revenue balances during the six months ended September 30, 2020 are as follows (in thousands): September 30, 2020 March 31, 2020 Change Contract assets $ 26,549 $ 24,123 $ 2,426 Deferred revenue $ 12,130 $ 8,224 $ 3,906 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Sep. 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 September 30, 2020 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 32,611 $ — $ — $ 32,611 $ 25,694 $ 6,917 $ — $ — Level 1: Money market funds 94,354 — — 94,354 94,354 — — — Treasury securities 6,185 68 — 6,253 — — 6,253 — Subtotal 133,150 68 — 133,218 120,048 6,917 6,253 — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 4,399 — — 4,399 1,800 — 2,599 Corporate debt 28,586 124 — 28,710 — — 22,529 6,181 Subtotal 41,626 124 — 41,750 1,800 8,641 25,128 6,181 Total assets $ 174,776 $ 192 $ — $ 174,968 $ 121,848 $ 15,558 $ 31,381 $ 6,181 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 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 6 Months Ended |
Sep. 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): September 30, 2020 March 31, 2020 Gross Accumulated Net Gross Accumulated Net Developed technology $ 33,952 $ (19,182) $ 14,770 $ 33,932 $ (16,312) $ 17,620 Customer relationships 11,614 (6,425) 5,189 11,409 (5,412) 5,997 Trade and domain names 986 (986) — 983 (599) 384 Total acquired identifiable intangible assets $ 46,552 $ (26,593) $ 19,959 $ 46,324 $ (22,323) $ 24,001 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At September 30, 2020, the expected future amortization expense of these intangible assets is as follows (in thousands): Remainder of 2021 $ 2,829 2022 4,708 2023 3,156 2024 2,851 2025 2,851 Thereafter 3,564 Total $ 19,959 |
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 1,852 Balance at September 30, 2020 $ 130,152 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Leases | The following table provides balance sheet information related to leases as of September 30, 2020 (in thousands): September 30, 2020 March 31, 2020 Assets Operating lease, right-of-use assets $ 72,841 $ 78,963 Liabilities Operating lease liabilities, current $ 9,498 $ 5,875 Operating lease liabilities, non-current 87,462 92,452 Total operating lease liabilities $ 96,960 $ 98,327 |
Schedule of Lease, Cost | The components of lease expense were as follows (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Operating lease expense $ 3,833 $ 4,156 $ 7,583 $ 6,241 Variable lease expense $ 857 $ 229 $ 1,639 $ 438 The following table presents supplemental information for the six months ended September 30, 2020 (in thousands, except for weighted average): Weighted average remaining lease term 8.6 years Weighted average discount rate 4.0% |
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 September 30, 2020 (in thousands): Remainder of 2021 $ 5,631 2022 16,193 2023 15,007 2024 11,766 2025 11,429 Thereafter 58,122 Total lease payments $ 118,148 Less: imputed interest (19,542) Less: lease incentives receivable (1,646) Present value of lease liabilities $ 96,960 |
CONVERTIBLE SENIOR NOTES AND _2
CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables) | 6 Months Ended |
Sep. 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): September 30, 2020 March 31, 2020 Principal $ 362,500 $ 362,500 Unamortized debt discount (61,786) (69,987) Unamortized issuance costs (861) (976) Net carrying amount $ 299,853 $ 291,537 |
Schedule of Interest Income and Interest Expense Disclosure | Interest expense related to the Notes was as follows (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Contractual interest expense $ 453 $ 360 $ 906 $ 719 Amortization of debt discount 4,133 3,198 8,201 6,344 Amortization of issuance costs 58 27 115 53 Total interest expense $ 4,644 $ 3,585 $ 9,222 $ 7,116 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 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 (in thousands): Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Cost of service revenue $ 2,410 $ 1,182 $ 4,224 $ 2,179 Cost of other revenue 1,113 757 1,900 1,491 Research and development 8,255 4,217 14,800 8,081 Sales and marketing 7,054 5,340 12,793 9,261 General and administrative 6,490 5,895 14,384 9,976 Total $ 25,322 $ 17,391 $ 48,101 $ 30,988 Restricted Stock Units (RSU) and Performance Stock Units (PSU) Activities related to RSU and PSU, collectively Stock Awards, during six months ended September 30, 2020 and 2019 are summarized as follows (in thousands, except weighted-average grant-date fair value and recognition period): Six Months Ended September 30, 2020 2019 Stock awards outstanding at the beginning of the period: 9,191 7,820 Stock awards granted 5,343 5,123 Stock awards vested (2,498) (1,945) Stock awards canceled and forfeited (564) (663) Stock awards outstanding at the end of the period: 11,472 10,335 Weighted-average fair value of grants during the period $ 15.75 $ 22.35 Weighted-average remaining recognition period (in years) 1.96 2.28 Total unrecognized compensation expense at period-end $ 144,066 $ 127,540 Stock Options Activities related to Stock Options, during six months ended September 30, 2020 and 2019 are summarized as follows (in thousands, except weighted-average grant-date fair value and recognition period): Six Months Ended September 30, 2020 2019 Stock options outstanding at the beginning of the period: 2,274 3,114 Options granted — — Options exercised (36) (287) Options canceled and forfeited (28) (39) Options outstanding at the end of the period: 2,210 2,788 Weighted-average fair value of grants during the period $ — $ — Total intrinsic value of options exercised during the period $ 302 $ 3,726 Weighted-average remaining recognition period (in years) 1.54 2.32 Total unrecognized compensation expense at period-end $ 671 $ 1,268 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 6 Months Ended |
Sep. 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 September 30, Six Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss available to common stockholders $ (38,413) $ (40,932) $ (80,326) $ (75,197) Denominator: Common shares - basic and diluted 104,620 98,353 104,116 97,356 Net loss per share Basic and diluted $ (0.37) $ (0.42) $ (0.77) $ (0.77) |
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 September 30, Six Months Ended September 30, 2020 2019 2020 2019 Stock options 2,210 2,788 2,210 2,788 Stock awards 11,472 10,334 11,472 10,334 Potential shares to be issued from ESPP 529 387 529 387 Total anti-dilutive shares 14,211 13,509 14,211 13,509 |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 6 Months Ended |
Sep. 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 September 30, Six Months Ended September 30, Revenue by geographic area: 2020 2019 2020 2019 United States $ 96,105 $ 85,428 $ 189,349 $ 168,676 International 33,028 24,089 61,591 37,516 Total revenue $ 129,133 $ 109,517 $ 250,940 $ 206,192 Property and equipment by geographic area: September 30, 2020 March 31, 2020 United States $ 90,493 $ 87,673 International 5,692 6,709 Total property and equipment, net $ 96,185 $ 94,382 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Sep. 30, 2020segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 42,971 | $ 37,811 |
Contract assets, current, net (included in Other current assets) | 11,712 | 10,425 |
Contract assets, non-current, net (included in Other assets) | 14,837 | 13,698 |
Deferred revenue, current | 9,452 | 7,105 |
Deferred revenue, non-current (included in Other liabilities, non-current) | $ 2,678 | $ 1,119 |
REVENUE RECOGNITION - Changes i
REVENUE RECOGNITION - Changes in Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 26,549 | $ 24,123 |
Change in contract assets | 2,426 | |
Deferred revenue | 12,130 | $ 8,224 |
Change in deferred revenue | $ 3,906 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Contract with customer, revenue recognized | $ 1.3 | $ 5 | ||
Amortization cost | $ 6.7 | $ 4.5 | $ 12.8 | $ 8.7 |
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 - Remaining
REVENUE RECOGNITION - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 330 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
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 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | $ 121,848 | $ 137,394 | $ 162,219 |
Accumulated gross unrealized gain, before tax | 192 | 154 | |
Accumulated gross unrealized loss, before tax | 0 | (341) | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 174,776 | 206,139 | |
Cash, cash equivalents and debt securities available-for-sale | 174,968 | 205,952 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accumulated gross unrealized gain, before tax | 68 | 116 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 133,150 | 148,366 | |
Cash, cash equivalents and debt securities available-for-sale | 133,218 | 148,482 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 41,626 | 57,773 | |
Accumulated gross unrealized gain, before tax | 124 | 38 | |
Accumulated gross unrealized loss, before tax | 0 | (341) | |
Debt securities, available-for-sale | 41,750 | 57,470 | |
Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 32,611 | 31,378 | |
Cash and cash equivalents, fair value | 32,611 | 31,378 | |
Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 94,354 | 110,796 | |
Cash and cash equivalents, fair value | 94,354 | 110,796 | |
Treasury securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 6,185 | 6,192 | |
Accumulated gross unrealized gain, before tax | 68 | 116 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Debt securities, available-for-sale | 6,253 | 6,308 | |
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 | |
Cash and cash equivalents, fair value | 8,641 | 8,641 | |
Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 4,399 | 14,979 | |
Accumulated gross unrealized gain, before tax | 0 | 6 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Debt securities, available-for-sale | 4,399 | 14,985 | |
Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 28,586 | 34,153 | |
Accumulated gross unrealized gain, before tax | 124 | 32 | |
Accumulated gross unrealized loss, before tax | 0 | (341) | |
Debt securities, available-for-sale | 28,710 | 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 | 121,848 | 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 | 120,048 | 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 | 1,800 | 5,596 | |
Cash and Cash Equivalents | Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 25,694 | 21,002 | |
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 | 94,354 | 110,796 | |
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 | 1,800 | 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 | 15,558 | 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 | 6,917 | 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 | 6,917 | 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 | 31,381 | 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 | 6,253 | ||
Short-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 25,128 | 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 | 6,253 | ||
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 | 2,599 | 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 | 22,529 | 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 | 6,181 | 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 | 6,181 | 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 | $ 6,181 | $ 9,775 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | Sep. 30, 2020USD ($) |
Convertible Debt | Initial Notes | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt instrument, fair value | $ 336.7 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | |||
Equity held back to cover indemnity claims (in shares) | 394,515 | ||
Purchase of businesses | $ 3,459 | $ 58,741 | |
Wavecell Pte. Ltd. | |||
Business Acquisition [Line Items] | |||
Cash held back to cover indemnity claims | $ 10,400 | ||
Equity held back to cover indemnity claims | 8,500 | ||
Purchase of businesses | $ 3,500 | ||
Issuance of common stock related to acquisitions (in shares) | 116,505 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 46,552 | $ 46,324 |
Accumulated Amortization | (26,593) | (22,323) |
Net Carrying Amount | 19,959 | 24,001 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,952 | 33,932 |
Accumulated Amortization | (19,182) | (16,312) |
Net Carrying Amount | 14,770 | 17,620 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,614 | 11,409 |
Accumulated Amortization | (6,425) | (5,412) |
Net Carrying Amount | 5,189 | 5,997 |
Trade and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 986 | 983 |
Accumulated Amortization | (986) | (599) |
Net Carrying Amount | $ 0 | $ 384 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) | 6 Months Ended |
Sep. 30, 2020 | |
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 7 months 6 days |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Remainder of 2021 | $ 2,829 | |
2022 | 4,708 | |
2023 | 3,156 | |
2024 | 2,851 | |
2025 | 2,851 | |
Thereafter | 3,564 | |
Net Carrying Amount | $ 19,959 | $ 24,001 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Summary of Changes in Goodwill (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 128,300 |
Foreign currency translation adjustments | 1,852 |
Goodwill, ending balance | $ 130,152 |
LEASES - Components of Lease Ri
LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Assets | ||
Operating lease, right-of-use assets | $ 72,841 | $ 78,963 |
Liabilities | ||
Operating lease liabilities, current | 9,498 | 5,875 |
Operating lease liabilities, non-current | 87,462 | 92,452 |
Total operating lease liabilities | $ 96,960 | $ 98,327 |
LEASES - Operating Lease Expens
LEASES - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 3,833 | $ 4,156 | $ 7,583 | $ 6,241 |
Variable lease expense | $ 857 | $ 229 | $ 1,639 | $ 438 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) ft² in Thousands, $ in Millions | 6 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2018ft² | |
Leases [Abstract] | |||
Operating cash flow from operating leases | $ 4.2 | $ 4.5 | |
Term of contract | 132 months | ||
Area of real estate property | ft² | 162 | ||
Liability related to lease assignment | 4.8 | ||
Termination fee | 0.8 | ||
Receivable related to lease assignment | $ 6.9 |
LEASES - Supplemental Informati
LEASES - Supplemental Information (Details) | Sep. 30, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 8 years 7 months 6 days |
Weighted average discount rate | 4.00% |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 5,631 | |
2022 | 16,193 | |
2023 | 15,007 | |
2024 | 11,766 | |
2025 | 11,429 | |
Thereafter | 58,122 | |
Total lease payments | 118,148 | |
Less: imputed interest | (19,542) | |
Less: lease incentives receivable | (1,646) | |
Present value of lease liabilities | $ 96,960 | $ 98,327 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative (Details) - USD ($) $ in Millions | Sep. 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 | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 01, 2019USD ($) | |
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 | ||||
Aggregate Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, strike price per share (in dollars per share) | $ / shares | $ 25.68 | ||||
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 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 SENIOR NOTES AND _4
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Carrying Amount of the Liability Component (Details) - Convertible Debt - Aggregate Notes - USD ($) | Sep. 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 | (61,786,000) | (69,987,000) | |
Unamortized issuance costs | (861,000) | (976,000) | |
Net carrying amount | $ 299,853,000 | $ 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 | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 453 | $ 360 | $ 906 | $ 719 |
Amortization of debt discount | 4,133 | 3,198 | 8,201 | 6,344 |
Amortization of issuance costs | 58 | 27 | 115 | 53 |
Total interest expense | $ 4,644 | $ 3,585 | $ 9,222 | $ 7,116 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 25,322 | $ 17,391 | $ 48,101 | $ 30,988 |
Cost of Sales | Service | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,410 | 1,182 | 4,224 | 2,179 |
Cost of Sales | Other revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,113 | 757 | 1,900 | 1,491 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 8,255 | 4,217 | 14,800 | 8,081 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 7,054 | 5,340 | 12,793 | 9,261 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6,490 | $ 5,895 | $ 14,384 | $ 9,976 |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Award Rollforward | ||
Stock awards outstanding at the beginning of the period (in shares) | 9,191 | 7,820 |
Stock awards granted (in shares) | 5,343 | 5,123 |
Stock awards vested (in shares) | (2,498) | (1,945) |
Stock awards canceled and forfeited (in shares) | (564) | (663) |
Stock awards outstanding at the end of the period (in shares) | 11,472 | 10,335 |
Weighted-average fair value of grants during the period (in dollars per share) | $ 15.75 | $ 22.35 |
Weighted-average remaining recognition period (in years) | 1 year 11 months 15 days | 2 years 3 months 10 days |
Total unrecognized compensation expense at period-end | $ 144,066 | $ 127,540 |
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) | (36) | (287) |
Options forfeited (in shares) | (28) | (39) |
Options outstanding at the end of the period (in shares) | 2,210 | 2,788 |
Weighted-average fair value of grants during the period (in dollars per share) | $ 0 | $ 0 |
Total intrinsic value of options exercised during the period | $ 302 | $ 3,726 |
Weighted-average remaining recognition period (in years) | 1 year 6 months 14 days | 2 years 3 months 25 days |
Total unrecognized compensation expense at period-end | $ 671 | $ 1,268 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unamortized stock-based compensation expense | $ 144,066,000 | $ 127,540,000 | $ 144,066,000 | $ 127,540,000 | ||
2017 Repurchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized repurchase amount | $ 25,000,000 | |||||
Remaining authorized repurchase amount | $ 7,100,000 | $ 7,100,000 | ||||
Stock repurchased during period (in shares) | 0 | 0 | 0 | 0 | ||
Employee Stock Purchase Plan | Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued under employee stock purchase plan (in shares) | 329,430 | |||||
Unamortized stock-based compensation expense | $ 2,900,000 | $ 2,900,000 | ||||
Weighted average period of recognition for unrecognized compensation expense | 6 months 25 days | |||||
Number of shares reserved for future issuance (in shares) | 3,252,882 | 3,252,882 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | (0.40%) | (0.60%) | (0.50%) |
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 | 6 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||
Net loss available to common stockholders | $ (38,413) | $ (41,913) | $ (40,932) | $ (34,265) | $ (80,326) | $ (75,197) |
Denominator: | ||||||
Common shares - basic and diluted (in shares) | 104,620 | 98,353 | 104,116 | 97,356 | ||
Net loss per share | ||||||
Basic and diluted (in dollars per share) | $ (0.37) | $ (0.42) | $ (0.77) | $ (0.77) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 14,211 | 13,509 | 14,211 | 13,509 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 2,210 | 2,788 | 2,210 | 2,788 |
Stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 11,472 | 10,334 | 11,472 | 10,334 |
Potential shares to be issued from ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 529 | 387 | 529 | 387 |
GEOGRAPHICAL INFORMATION - Reve
GEOGRAPHICAL INFORMATION - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 129,133 | $ 109,517 | $ 250,940 | $ 206,192 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 96,105 | 85,428 | 189,349 | 168,676 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 33,028 | $ 24,089 | $ 61,591 | $ 37,516 |
GEOGRAPHICAL INFORMATION - PPE
GEOGRAPHICAL INFORMATION - PPE (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | $ 96,185 | $ 94,382 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | 90,493 | 87,673 |
International | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | $ 5,692 | $ 6,709 |