Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2021 | May 13, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-38312 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0.9 | ||
Entity Common Stock, Shares Outstanding | 109,891,927 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Items 10, 11, 12, 13 and 14 of Part III incorporate information by reference from the Proxy Statement to be filed within 120 days of March 31, 2021 for the 2021 Annual Meeting of Stockholders. | ||
Entity Central Index Key | 0001023731 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 112,531 | $ 137,394 |
Restricted cash, current | 8,179 | 10,376 |
Short-term investments | 40,337 | 33,458 |
Accounts receivable, net | 51,150 | 37,811 |
Deferred sales commission costs, current | 30,241 | 22,444 |
Other current assets | 34,095 | 35,679 |
Total current assets | 276,533 | 277,162 |
Property and equipment, net | 93,076 | 94,382 |
Operating lease, right-of-use assets | 66,664 | 78,963 |
Intangible assets, net | 17,130 | 24,001 |
Goodwill | 131,520 | 128,300 |
Restricted cash, non-current | 462 | 8,641 |
Long-term investments | 0 | 16,083 |
Deferred sales commission costs, non-current | 72,427 | 53,307 |
Other assets, non-current | 20,597 | 19,802 |
Total assets | 678,409 | 700,641 |
Current liabilities: | ||
Accounts payable | 31,236 | 40,261 |
Accrued compensation | 29,879 | 22,656 |
Accrued taxes | 12,129 | 10,251 |
Operating lease liabilities, current | 12,942 | 5,875 |
Deferred revenue, current | 20,737 | 7,105 |
Other accrued liabilities | 14,455 | 37,277 |
Total current liabilities | 121,378 | 123,425 |
Operating lease liabilities, non-current | 82,456 | 92,452 |
Convertible senior notes, net | 308,435 | 291,537 |
Other liabilities, non-current | 5,636 | 2,496 |
Total liabilities | 517,905 | 509,910 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock: $0.001 par value, 5,000,000 shares authorized, none issued and outstanding at both March 31, 2021 and 2020 | 0 | 0 |
Common stock: $0.001 par value, 200,000,000 shares authorized, 109,134,740 shares and 103,178,621 shares issued and outstanding at March 31, 2021 and 2020, respectively | 109 | 103 |
Additional paid-in capital | 755,643 | 625,474 |
Accumulated other comprehensive loss | (4,193) | (12,176) |
Accumulated deficit | (591,055) | (422,670) |
Total stockholders' equity | 160,504 | 190,731 |
Total liabilities and stockholders' equity | $ 678,409 | $ 700,641 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 109,134,740 | 103,178,621 |
Common stock, shares outstanding (in shares) | 109,134,740 | 103,178,621 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenue | $ 532,344 | $ 446,237 | $ 352,586 |
Operating expenses: | |||
Research and development | 92,034 | 77,790 | 62,063 |
Sales and marketing | 256,231 | 240,013 | 177,976 |
General and administrative | 100,078 | 87,025 | 72,208 |
Total operating expenses | 678,493 | 606,056 | 442,219 |
Loss from operations | (146,149) | (159,819) | (89,633) |
Other (expense) income, net | (18,593) | (11,717) | 1,463 |
Loss before provision for income taxes | (164,742) | (171,536) | (88,170) |
Provision for income taxes | 843 | 832 | 569 |
Net loss | $ (165,585) | $ (172,368) | $ (88,739) |
Net loss per share: | |||
Basic and diluted (in dollars per share) | $ (1.57) | $ (1.72) | $ (0.94) |
Weighted average number of shares: | |||
Basic and diluted (in shares) | 105,700 | 99,999 | 94,533 |
Service revenue | |||
Total revenue | $ 495,985 | $ 414,078 | $ 325,305 |
Operating expenses: | |||
Cost of revenue | 180,082 | 145,013 | 86,122 |
Other revenue | |||
Total revenue | 36,359 | 32,159 | 27,281 |
Operating expenses: | |||
Cost of revenue | $ 50,068 | $ 56,215 | $ 43,850 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (165,585) | $ (172,368) | $ (88,739) |
Other comprehensive income (loss), net of tax | |||
Unrealized gain (loss) on investments in securities | 247 | (203) | 473 |
Foreign currency translation adjustment | 7,736 | (4,620) | (2,181) |
Comprehensive loss | $ (157,602) | $ (177,191) | $ (90,447) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Mar. 31, 2018 | 92,847,354 | ||||||
Beginning balance at Mar. 31, 2018 | $ 218,774 | $ 39,901 | $ 93 | $ 425,790 | $ (5,645) | $ (201,464) | $ 39,901 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plans, less withholding (in shares) | 3,272,534 | ||||||
Issuance of common stock under stock plans, less withholding | 4,486 | $ 3 | 4,483 | ||||
Stock-based compensation expense | 45,548 | 45,548 | |||||
Unrealized investment gain (loss) | 473 | 473 | |||||
Foreign currency translation adjustment | (2,181) | (2,181) | |||||
Equity component of convertible senior notes, net of issuance costs | 31,128 | 31,128 | |||||
Net loss | (88,739) | (88,739) | |||||
Ending balance (in shares) at Mar. 31, 2019 | 96,119,888 | ||||||
Ending balance 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) | 4,452,267 | ||||||
Issuance of common stock under stock plans, less withholding | 7,777 | $ 4 | 7,773 | ||||
Issuance of common stock related to acquisition (in shares) | 2,606,466 | ||||||
Issuance of common stock related to acquisition | 35,840 | $ 3 | 35,837 | ||||
Stock-based compensation expense | 71,821 | 71,821 | |||||
Unrealized investment gain (loss) | (203) | (203) | |||||
Foreign currency translation adjustment | (4,620) | (4,620) | |||||
Equity component of convertible senior notes, net of issuance costs | 3,094 | 3,094 | |||||
Net loss | (172,368) | (172,368) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 103,178,621 | ||||||
Ending balance at Mar. 31, 2020 | 190,731 | $ (2,800) | $ 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) | 6,067,672 | ||||||
Issuance of common stock under stock plans, less withholding | 13,269 | $ 6 | 13,263 | ||||
Issuance of common stock related to acquisition (in shares) | (111,554) | ||||||
Issuance of common stock related to acquisition | 8,489 | 8,489 | |||||
Stock-based compensation expense | 108,417 | 108,417 | |||||
Unrealized investment gain (loss) | 247 | 247 | |||||
Foreign currency translation adjustment | 7,736 | 7,736 | |||||
Net loss | (165,585) | (165,585) | |||||
Ending balance (in shares) at Mar. 31, 2021 | 109,134,739 | ||||||
Ending balance at Mar. 31, 2021 | $ 160,504 | $ 109 | $ 755,643 | $ (4,193) | $ (591,055) | $ (2,800) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (165,585) | $ (172,368) | $ (88,739) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 11,297 | 9,360 | 8,748 |
Amortization of intangible assets | 6,886 | 8,842 | 6,175 |
Amortization of capitalized internal-use software costs | 26,934 | 19,025 | 9,748 |
Amortization of debt discount and issuance costs | 16,898 | 14,045 | 1,355 |
Amortization of deferred sales commission costs | 27,817 | 19,541 | 14,204 |
Allowance for credit losses | 4,471 | 3,479 | 1,115 |
Operating lease expense, net of accretion | 15,210 | 14,971 | 0 |
Non-cash lease expense | 0 | 0 | 4,802 |
Stock-based compensation expense | 107,638 | 70,878 | 44,508 |
Other | 1,521 | 3,522 | 178 |
Changes in assets and liabilities: | |||
Accounts receivable | (14,869) | (12,737) | (5,393) |
Deferred sales commission costs | (52,960) | (46,421) | (25,286) |
Other current and non-current assets | (3,963) | (33,137) | (4,337) |
Accounts payable and accruals | (10,033) | 2,159 | 17,252 |
Deferred revenue | 14,672 | 4,936 | 802 |
Net cash used in operating activities | (14,066) | (93,905) | (14,868) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (6,430) | (35,834) | (9,096) |
Capitalized internal-use software costs | (28,816) | (31,573) | (25,622) |
Purchases of investments | (52,172) | (42,223) | (54,127) |
Sales of investments | 1,018 | 36,515 | 54,642 |
Proceeds from maturities of investments | 60,479 | 25,950 | 50,700 |
Acquisition of businesses, net of cash acquired | (10,400) | (59,129) | (5,625) |
Net cash (used in) provided by investing activities | (36,321) | (106,294) | 10,872 |
Cash flows from financing activities: | |||
Finance lease payments | (78) | (315) | (949) |
Tax-related withholding of common stock | (69) | (6,550) | (7,823) |
Proceeds from issuance of common stock under employee stock plans | 13,339 | 14,330 | 12,202 |
Purchases of capped calls | 0 | (9,288) | (33,724) |
Net proceeds from issuance of convertible senior notes | 0 | 73,918 | 279,532 |
Net cash provided by financing activities | 13,192 | 72,095 | 249,238 |
Effect of exchange rate changes on cash | 1,956 | (168) | (362) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (35,239) | (128,272) | 244,880 |
Cash, cash equivalents and restricted cash, beginning of year | 156,411 | 284,683 | 39,803 |
Cash, cash equivalents and restricted cash, end of year | 121,172 | 156,411 | 284,683 |
Supplemental Cash Flow Information [Abstract] | |||
Right-of-use assets obtained in exchange for new and modified operating lease liabilities | 0 | 79,100 | 0 |
Interest paid | 1,813 | 1,553 | 0 |
Income taxes paid | 555 | 934 | 356 |
Equipment acquired under capital leases | 0 | 0 | 68 |
Reconciliation Of Cash, Cash Equivalents And Restricted Cash [Abstract] | |||
Total cash, cash equivalents and restricted cash | $ 121,172 | $ 284,683 | $ 284,683 |
THE COMPANY AND SIGNIFICANT ACC
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES | THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES THE COMPANY 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987 and was reincorporated in Delaware in December 1996. The Company is a leading Software-as-a-Service ("SaaS") provider of contact center, voice, video, chat, and enterprise-class API solutions powered by one global cloud communications platform. 8x8 empowers workforces worldwide by connecting individuals and teams so they can collaborate faster and work smarter from anywhere. 8x8 provides real-time business analytics and intelligence giving its customers unique insights across all interactions and channels on our platform so they can support a distributed and hybrid working model while delighting their end-customers and accelerating their business. A majority of 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 complimentary to the delivery of the our integrated technology platform. The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these Notes to 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 ended March 31, 2021). All dollar amounts herein are in thousands of U.S. Dollars ("Dollars") unless otherwise noted. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles generally ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and intangible assets, capitalized internal-use software costs, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, 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. REVENUE RECOGNITION As described below, significant management judgments and estimates must be made and used in connection with the recognition of revenue. Material differences may result in the amount and timing of our revenue if management were to make different judgments or utilize different estimates. The Company recognizes revenue using the five-step model prescribed by U.S. GAAP, as follows: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue, and professional services. The transaction price is determined based on the amount we expect to be entitled to receive in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied, based on the transaction price, excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. We generally bill our customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days. We occasionally allow a 30-day period to cancel a subscription and return products shipped for a full refund. The Company records reductions to revenue for estimated sales returns and customer credits at the time the related revenue is recognized. Sales returns and customer credits are estimated based on its historical experience, current trends and its expectations regarding future experience. The Company monitors the accuracy of its sales reserve estimates by reviewing actual returns and credits and adjusts them for its future expectations to determine the adequacy of its current and future reserve needs. If actual future returns and credits differ from past experience, additional reserves may be required. When the Company's services do not meet certain service level commitments, customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company historically has not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, the amount of any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented. Judgments and Estimates The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments ("MRC") on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, both of which represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices ("SSP") of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. Service Revenue Service revenue from subscriptions to the Company's cloud-based technology platform is recognized ratably over the contractual subscription term, beginning on the date that the platform is delivered to the customer until the end of the contractual period. Payments received in advance of subscription services being rendered are recorded as deferred revenue; revenues recognized for services rendered in advance of payments received are recorded as contract assets. Usage fees, when bundled, are billed in advance and recognized over time on a ratable basis over the contractual subscription term, which is usually the monthly contractual billing period. Non-bundled usage fees are recognized as actual usage occurs. Other Revenue Other revenue comprises primarily product revenue and professional services revenue. The Company recognizes product revenue for telephony equipment at the point in time when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience. Professional services for deployment, configuration, system integration, optimization, customer training or education are primarily billed on a fixed-fee basis and are performed by the Company directly. Professional services revenue is recognized as services are performed or upon completion of the deployment. Contract Assets Contract assets are recorded for contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example, when the initial month's services or equipment are discounted. Contract assets are included in other current assets or other assets in the Company's consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. Deferred Revenue Deferred revenue represents billings or payments received in advance of revenue recognition and are recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Revenue that will be recognized during the twelve month period in which the Company is providing services are recorded as deferred revenue, current in the consolidated balance sheets, with the remainder recorded as other liabilities, non-current in the Company's consolidated balance sheets. Deferred Sales Commission Costs Sales commissions are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as deferred sales commission costs and amortized on a straight-line basis over the anticipated benefit period of five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. The Company applies a practical expedient that permits it to apply an anticipated benefit period to a portfolio of contracts, instead of on a contract-by-contract basis, as they are similar in their characteristics, and the financial statement effects of that application to the portfolio would not differ materially from applying it to the individual contracts within that portfolio. CASH, CASH EQUIVALENTS, AND INVESTMENTS The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Investments are classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income (expense), net in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as short-term or long-term based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of two major financial institutions. ALLOWANCE FOR CREDIT LOSSES The Company accounts for allowance for credit losses under the current expected credit loss (“CECL”) impairment model for its financial assets, including accounts receivable, and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, the Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, communications with its customers, and macro-economic conditions. Amounts are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible. OPERATING LEASE, RIGHT-OF-USE ASSETS, AND LEASE LIABILITIES 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. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one As most of the Company's leases do not provide a readily determinable implicit rate, the Company uses its incremental borrowing rate at lease commencement, which is determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the implicit rate when a rate is readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the Company's consolidated balance sheets, and the expense for these short-term leases is recognized on a straight-line basis over the lease term. PROPERTY AND EQUIPMENT Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, capitalized internal-use software and software development costs, and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements. Maintenance, repairs, and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the consolidated statements of operations. Construction in progress primarily relates to costs to acquire or internally develop internal-use software not fully completed as of March 31, 2021 and 2020. CAPITALIZED INTERNAL-USE SOFTWARE COSTS Certain costs of software developed or obtained for internal use is capitalized during the application development stage. The Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. Capitalized internal-use software development costs are included in property and equipment. Once the project has been completed, these costs are amortized to cost of service revenue on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three years. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense. The Company tests capitalized internal-use software development costs for impairment on an annual basis, or as events occur or circumstances change that could impact the recoverability of the capitalized costs. ACCOUNTING FOR LONG-LIVED ASSETS The Company reviews the recoverability of its long-lived assets, such as property and equipment, right-of-use assets, definite lived intangibles or capitalized internal-use software costs, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a disposal of a significant portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. The Company performs testing for impairment of goodwill on an annual basis, or as events occur or circumstances change that would more likely than not reduce the fair value of the Company’s single reporting unit below its carrying amount. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Intangible assets, consisting of acquired developed technology, domain names, and customer relationships, acquired in a business combinations are initially measured at fair value and were determined to have definite lives. Thereafter, intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to developed technology is included in cost of revenue. Amortization expense related to customer relationships and domain names are included in sales and marketing expense. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses consist primarily of personnel and related costs, third-party development and related work, software and equipment costs necessary for us to conduct our product and platform development and engineering efforts, and allocated IT and facilities costs. Research and development costs are expensed as incurred. ADVERTISING COSTS Advertising costs are expensed as incurred and were $9.0 million, $32.2 million and $25.0 million for the years ended March 31, 2021, 2020, and 2019, respectively. FOREIGN CURRENCY TRANSLATION The Company has determined that the functional currency of each of its foreign subsidiaries is the subsidiary's local currency. The Company believes that this most appropriately reflects the current economic facts and circumstances of the subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period and revenue and expense amounts are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity. SEGMENT INFORMATION The Company has determined its chief executive officer is the chief operating decision maker. The chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The Company has determined that it operates in a single reportable segment. CONCENTRATIONS Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments. The Company sells its products to customers and distributors. The Company performs credit evaluations of its customers' financial condition and generally does not require collateral from its customers. As of, and for the years ending, March 31, 2021 and 2020, no customer accounted for more than 10% of accounts receivable or revenues. The Company purchases all of its hardware products from suppliers that manufacture the hardware directly, and from their distributors. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows. The Company also relies primarily on third-party network service providers to provide telephone numbers and public switched telephone network ("PSTN") call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: • Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). • Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions. The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments are recorded at fair value and convertible senior notes payable are recorded at net carrying value. ACCOUNTING FOR STOCK-BASED COMPENSATION The Company accounts for the fair value of restricted stock units (“RSUs”) using the closing market price of the Company’s common stock on the date of grant. For new-hire grants and annual refresh grants, one-third of the RSUs typically vest on the first anniversary of grant date, and remainder vest on a one-eighth basis quarterly over the subsequent two years. Stock-based compensation cost for RSUs is measured at the grant date based on the estimated fair value of the award and is recognized as expense over the requisite service period (generally the vesting period), net of estimated forfeitures. The Company accounts for the fair value of performance stock units ("PSUs") using Monte Carlo simulations. The Company estimates the fair value of the rights to acquire stock under its 1996 Employee Stock Purchase Plan (the “ESPP”) using the Black-Scholes option pricing formula. The ESPP provides for consecutive six-month offering periods with a one-year lookback period and the Company uses its own historical volatility data in the valuation of shares that are purchased under the ESPP. COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale. NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options, ESPP, RSUs and PSUs. 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. 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 impact of the adoption was immaterial to the Company's consolidated financial statements. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE 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 | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 11. Geographical Information . Contract Balances The following table provides amounts of receivables, contract assets and deferred revenue from contracts with customers: March 31, 2021 March 31, 2020 Accounts receivable, net $ 51,150 $ 37,811 Contract assets, current 12,840 10,425 Contract assets, non-current 17,987 13,698 Deferred revenue, current 20,737 7,105 Deferred revenue, non-current 2,999 1,119 Contract assets, current, contract assets, non-current, and deferred revenue, non-current are recorded on the Consolidated Balance Sheets in Other current assets , Other assets , and Other liabilities, non-current , respectively. The change in contract assets was primarily driven by the recognition of revenue that has not yet been billed. The increase in deferred revenue was due to billings in advance of performance obligations being satisfied. During the year ended March 31, 2021, the Company recognized revenues of approximately $6.1 million that was included in deferred revenue at the beginning of the year. Remaining Performance Obligations The Company's subscription terms typically range from one As of March 31, 2021, the Company updated this disclosure to exclude contracts with an original expected length of less than one year. Previously, this disclosure excluded contracts with an original expected length of one year or less. As the new and renewal contracts the Company enters into with its customers are generally for terms of one year or longer, management determined that updating this disclosure to include contracts with a term of one year or more presents a more appropriate measure of the Company's remaining performance obligation. Deferred Sales Commission Costs Amortization of deferred sales commission costs for the years ended March 31, 2021, 2020, and 2019 was $27.8 million, $19.5 million, and $14.2 million, respectively. There were no material write-offs during the years ended March 31, 2021, 2020, and 2019. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash, cash equivalents and available-for-sale investments were as follows: As of March 31, 2021 Amortized Gross Gross Estimated Cash and Restricted Cash Short-Term Long-Term Cash $ 39,070 $ — $ — $ 39,070 $ 39,070 $ — $ — $ — Level 1: Money market funds 67,712 — — 67,712 67,712 — — — Treasury securities 6,177 17 — 6,194 — — 6,194 — Subtotal 112,959 17 — 112,976 106,782 — 6,194 — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 17,656 42 — 17,698 700 — 16,998 — Corporate debt 22,193 1 — 22,194 5,049 — 17,145 — Subtotal 48,490 43 — 48,533 5,749 8,641 34,143 — Total assets $ 161,449 $ 60 $ — $ 161,509 $ 112,531 $ 8,641 $ 40,337 $ — As of March 31, 2020 Amortized Gross Gross Estimated Cash and Restricted Cash Short-Term Long-Term Cash $ 21,002 $ — $ — $ 21,002 $ 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 137,990 116 — 138,106 131,798 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 $ 195,763 $ 154 $ (341) $ 195,576 $ 137,394 $ 19,017 $ 33,458 $ 16,083 Certificate of deposit represents the Company's letter of credits securing leases for office facilities, the balance of which is included in Restricted cash, current and Restricted cash, non-current on the Company's Consolidated Balance Sheet. The Company considers its investments available to support its current operations and has classified all investments as available-for-sale securities. The Company does not intend to sell any of its investments that are in unrealized loss positions and, as of March 31, 2021, 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 and reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As of March 31, 2021, the Company did not record any allowance for credit losses on its investments. As of March 31, 2021 and 2020, the estimated fair value of the Company's Notes was $502.9 million and $309.6 million, respectively, 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. See Note 7, Convertible Senior Notes and Capped Call. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL The carrying value of intangible assets consisted of the following: March 31, 2021 March 31, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Technology $ 33,960 $ (21,458) $ 12,502 $ 33,932 $ (16,312) $ 17,620 Customer relationships 11,969 (7,341) 4,628 11,409 (5,412) 5,997 Trade names and domains 988 (988) — 983 (599) 384 Total acquired identifiable intangible assets $ 46,917 $ (29,787) $ 17,130 $ 46,324 $ (22,323) $ 24,001 As of March 31, 2021, the weighted average remaining useful life for technology, customer relationship, and trade names and domains was 4.4 years, 5.2 years, and 0.0 years, respectively. Amortization expense for related intangible assets was $6.9 million, $8.8 million, and $6.2 million for the years ended March 31, 2021, 2020 and 2019, respectively. During the year ended March 31, 2020, the Company wrote off approximately $11.3 million of fully amortized intangible assets and the corresponding accumulated amortization. At March 31, 2021, annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following: Amount 2022 $ 4,708 2023 3,156 2024 2,851 2025 2,851 2026 and thereafter 3,564 Total $ 17,130 The following table provides a summary of the changes in the carrying amounts of goodwill: Total Balance at March 31, 2019 $ 39,694 Additions due to acquisitions 91,060 Foreign currency translation (2,454) Balance at March 31, 2020 128,300 Foreign currency translation 3,220 Balance at March 31, 2021 $ 131,520 The Company conducted its annual impairment tests of goodwill in the fourth quarters of fiscal years 2021, 2020, and 2019, and determined that no adjustment to the carrying value of goodwill was required. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Operating Leases The following table provides balance sheet information related to operating leases: March 31, 2021 March 31, 2020 Assets Operating lease, right-of-use assets $ 66,664 $ 78,963 Liabilities Operating lease liabilities, current $ 12,942 $ 5,875 Operating lease liabilities, non-current 82,456 92,452 Total operating lease liabilities $ 95,398 $ 98,327 The components of lease expense were as follows: For the years ended March 31, 2021 2020 Operating lease expense $ 15,210 $ 14,971 Variable lease expense 2,462 1,602 Short-term lease expense was immaterial during the years ended March 31, 2021 and 2020. Cash outflows from operating leases were $9.9 million and $9.9 million, respectively, for the years ended March 31, 2021 and 2020. The following table presents supplemental lease information: March 31, 2021 March 31, 2020 Weighted average remaining lease term 8.4 years 8.9 years Weighted average discount rate 4.0% 4.0% The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2021: 2022 $ 16,341 2023 15,155 2024 11,845 2025 11,508 2026 10,507 Thereafter 47,693 Total lease payments 113,049 Less: imputed interest (17,651) Present value of lease liabilities $ 95,398 Lease Assignment |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. Operating Leases The Company's lease obligations consist of the Company's principal facility and various leased facilities under operating lease agreements. See Note 5. Leases, for more information on the Company's leases and the future minimum lease payments. Purchase Obligation The Company's purchase obligations include contracts with third-party customer support vendors and third-party network service providers. These contracts include minimum monthly commitments and the requirements to maintain the service level for several months. The total contractual minimum commitments were approximately $18.6 million at March 31, 2021. Legal Proceedings The Company may be involved in various claims, lawsuits, investigations and other legal proceedings, including intellectual property, commercial, regulatory compliance, securities and employment matters that arise in the normal course of business. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company regularly evaluates current information to determine whether any accruals should be adjusted and whether new accruals are required. Actual claims could settle or be adjudicated against the Company in the future for materially different amounts than the Company has accrued due to the inherently unpredictable nature of litigation. Legal costs are expensed as incurred. The Company believes it has recorded adequate provisions for any such lawsuits and claims and proceedings as of March 31, 2021. The Company believes that damage amounts claimed in these matters are not meaningful indicators of potential liability. Some of the matters pending against the Company involve potential compensatory, punitive or treble damage claims or sanctions, that, if granted, could require the Company to pay damages or make other expenditures in amounts that could have a material adverse effect on its Consolidated Financial Statements. Given the inherent uncertainties of litigation, the ultimate outcome of the ongoing matters described herein cannot be predicted, and the Company believes it has valid defenses with respect to the legal matters pending against it. Nevertheless, the Consolidated Financial Statements could be materially adversely affected in a particular period by the resolution of one or more of these contingencies. Wage and Hour Litigation . On September 21, 2020, the Company received a copy of a letter filed by a former employee, Plaintiff Denise Rivas, with the California Labor and Workforce Development Agency (“LWDA”) providing notice of the Plaintiff’s intent to bring a Private Attorney General Act (“PAGA”) claim, on behalf of the Company’s non-exempt employees based in California, for alleged California wage and hour practices violations. On September 25, 2020, the Plaintiff filed a separate class action complaint (“Class Complaint”) in Santa Clara County Superior Court against the Company in which she alleges 10 causes of action, on behalf of herself and all of the Company’s non-exempt employees based in California for the last four years, related to violations of California state wage and hour practices and the federal Fair Credit Reporting Act. The Class Complaint was served on the Company on September 29, 2020. On October 28, 2020, the Company filed a general denial of all claims and asserted various affirmative defenses. On October 29, 2020, the Company removed the matter to Federal Court. On December 1, 2020, Plaintiff filed a companion PAGA lawsuit complaint (“PAGA Complaint”) in Santa Clara County Superior Court against the Company, in which she alleges 6 violations of California state wage and hour practices for all of the Company's current and former non-exempt employees based in California from September 16, 2019 to the present. The PAGA Complaint was served on the Company on December 11, 2020. On January 26, 2021, the Company filed a general denial of all claims and asserted various affirmative defenses to the PAGA Complaint. Both actions are scheduled for a joint mediation in September 2021, and discovery is stayed in both actions pending completion of the mediation. State and Local Taxes and Surcharges |
CONVERTIBLE SENIOR NOTES AND CA
CONVERTIBLE SENIOR NOTES AND CAPPED CALL | 12 Months Ended |
Mar. 31, 2021 | |
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 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 initial purchase 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 Initial Notes. Immediately after giving effect to the issuance of the Additional Notes, the Company had $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 August 1, 2019. The Notes will mature on February 1, 2024, unless earlier repurchased, redeemed, or converted. Each $1,000 principal amount of the Notes is initially convertible into 38.9484 shares of the Company’s common stock, par value $0.001, which is equivalent to an initial conversion price of approximately $25.68 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid interest. In addition, upon the occurrence of certain corporate events that occur prior to the maturity date or following the Company's issuance of a notice of redemption, in each case as described in the Indenture, the Company will, in certain circumstances, increase the conversion rate for a holder that elects to convert its Notes in connection with such a corporate event or during the relevant redemption period. Prior to the close of business on the business day immediately preceding October 1, 2023, the Notes will be convertible only under the following circumstances: 1. At any time during any calendar quarter commencing after the fiscal quarter ending on June 30, 2019 (and only during such calendar quarter), if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; 2. During the five business day period immediately after any ten consecutive trading day period (the measurement period), if the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock on each such trading day and the conversion rate on each such trading day; 3. If the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or 4. Upon the occurrence of specified corporate events (as set forth in the indenture governing the Notes). On or after October 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, regardless of the foregoing circumstances. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at the Company's election. The Company’s current intent is to settle the principal amount of the Notes in cash upon conversion. During the year ended March 31, 2021, 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. Upon issuance, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar debt instruments, which do not have an associated convertible feature. The carrying amounts of the equity components representing the conversion option for the Initial Notes and the Additional Notes were $64.9 million and $12.4 million, respectively, and were determined by deducting the fair value of the liability component from the par value of the Notes. The equity components are not remeasured as long as they continues to meet the condition for equity classification. The excess of the principal amounts of the liability components over the carrying amounts (“debt discount”) in connection with the Initial Notes and Additional Notes are amortized to interest expense at the effective interest rates of 6.5% and 5.3%, respectively, over the terms of the Notes. The Company allocated the total issuance cost incurred to the liability and equity components of the Notes based on their relative value. Issuance costs attributable to the liability component of $0.6 million for each of the Initial Notes and Additional Notes were recorded as additional reduction to the liability portion of the Notes and are being amortized to interest expense over the terms of the Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The following table presents the net carrying amount and fair value of the liability component of the Notes: March 31, 2021 March 31, 2020 Principal $ 362,500 $ 362,500 Unamortized debt discount (53,323) (69,987) Unamortized issuance costs (742) (976) Net carrying amount $ 308,435 $ 291,537 Unamortized debt discount and issuance costs will be amortized over the remaining life of the Notes, which is approximately 34 months. Interest expense recognized related to the Notes was as follows: For the years ended March 31, 2021 2020 Contractual interest expense $ 1,813 $ 1,572 Amortization of debt discount 16,664 13,901 Amortization of issuance costs 234 145 Total interest expense $ 18,711 $ 15,618 Capped Call In connection with the pricing of the Notes, the Company entered into privately negotiated capped call transactions ("Capped Calls") with certain counterparties. The Capped Calls each have an initial strike price of approximately $25.68 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $39.50 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Common Stock upon any conversion of the Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 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 costs 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. The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Initial and Additional Notes was as follows: Additional Notes Initial Notes Conversion option $ 12,810 $ 66,700 Payments for capped call transactions (9,288) (33,724) Issuance costs (436) (1,848) Total $ 3,086 $ 31,128 |
STOCK-BASED COMPENSATION AND ST
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY | STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY 2006 Stock Plan In May 2006, the Company's board of directors approved the 2006 Stock Plan ("2006 Plan"). The Company's stockholders subsequently adopted the 2006 Plan in September 2006, which became effective in October 2006. The Company reserved 7.0 million shares of the Company's common stock for issuance under this plan. The 2006 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2006 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options generally vest over four years and expire ten years after grant. In 2009, the 2006 Plan was amended to provide for the granting of stock purchase rights. The 2006 Plan expired in May 2016. As of March 31, 2021, there were no shares available for future grants under the 2006 Plan. 2012 Equity Incentive Plan In June 2012, the Company's board of directors approved the 2012 Equity Incentive Plan ("2012 Plan"). The Company's stockholders subsequently adopted the 2012 Plan in July 2012, which became effective in August 2012. The Company reserved 4.1 million shares of the Company's common stock for issuance under this plan. In August 2014, 2016, 2018 and 2019, the 2012 Plan was amended to allow for an additional 6.8 million shares, 4.5 million shares, 16.3 million shares, and 12.0 million shares reserved for issuance, respectively. The 2012 Plan provides for granting incentive stock options to employees and non-statutory stock options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective date of the grant. Other types of options and awards under the 2012 Plan may be granted at any price approved by the administrator, which generally will be the compensation committee of the board of directors. Options, restricted stock, and restricted stock units generally vest over three 2013 New Employee Inducement Incentive Plan In September 2013, the Company's board of directors approved the 2013 New Employee Inducement Incentive Plan ("2013 Plan"). The Company reserved 1.0 million shares of the Company's common stock for issuance under this plan. In November 2014, the 2013 Plan was amended to allow for an additional 1.2 million shares reserved for issuance. In July 2015, the 2013 Plan was amended to allow for an additional 1.2 million shares reserved for issuance. In connection with its approval of the August 2016 amendments to the 2012 Plan, the Board of Directors has approved the suspension of future grants under the 2013 Plan, which became effective immediately upon stockholder approval of the proposed 2012 Plan amendments in August 2016. In addition, the 2013 Plan was amended to reduce the number of shares reserved for issuance under the 2013 Plan to the number of shares that are then subject to outstanding awards under the 2013 Plan, leaving no shares available for future grant. The 2013 Plan provided for granting non-statutory stock options, stock appreciation rights, restricted stock, restricted stock and performance units, and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options were granted at market value on the grant date under the 2013 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over four years and expire ten years after grant. 2017 New Employee Inducement Incentive Plan In October 2017, the Company's board of directors approved the 2017 New Employee Inducement Incentive Plan ("2017 Plan"). The Company reserved 1.0 million shares of the Company's common stock for issuance under this plan. In January 2018, the 2017 Plan was amended to allow for an additional 1.5 million shares to be reserved for issuance. In December 2020, the 2017 Plan was further amended to allow for an additional 1.4 million shares to be reserved. The 2017 Plan provides for granting non-statutory stock options, stock appreciation rights, restricted stock, and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment with the Company. Options are granted at market value on the grant date under the 2017 Plan, unless determined otherwise at the time of grant by the administrator, which generally will be the compensation committee of the board of directors. Grants generally vest over three years and expire ten years after grant. As of March 31, 2021, 1.1 million shares remained available under the 2017 plan. Stock-Based Compensation The following table presents stock-based compensation expense: Years Ended March 31, 2021 2020 2019 Cost of service revenue $ 8,811 $ 5,330 $ 3,752 Cost of other revenue 4,384 3,051 1,775 Research and development 31,641 19,712 12,313 Sales and marketing 33,869 20,205 11,951 General and administrative 28,933 22,580 14,717 Total $ 107,638 $ 70,878 $ 44,508 Stock Options The following table presents the stock option activity during the years ended March 31, 2021, 2020, and 2019 ( shares in thousands ): Number of Weighted Average Exercise Price Per Share Outstanding at March 31, 2018 3,998 $ 8.93 Granted 237 21.65 Exercised (760) 7.70 Canceled/Forfeited (361) 15.41 Outstanding at March 31, 2019 3,114 9.45 Exercised (785) 8.77 Canceled/Forfeited (55) 17.01 Outstanding at March 31, 2020 2,274 9.50 Exercised (426) 8.67 Canceled/Forfeited (35) 22.05 Outstanding at March 31, 2021 1,813 9.46 Vested and expected to vest March 31, 2021 1,809 9.43 Exercisable at March 31, 2021 1,751 $ 9.09 The total intrinsic value of options exercised in the years ended March 31, 2021, 2020, and 2019, was $8.0 million, $10.1 million and $10.0 million, respectively. As of March 31, 2021, there was $0.4 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average period of approximately 1.1 years. The Company did not grant any stock options during fiscal years 2021 or 2020. The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Years Ended March 31, 2021 2020 2019 Expected volatility —% —% 41% Risk-free interest rate — — 2.5% to 3.0% Weighted average expected term (in years) 0 0 4.5 years Weighted average fair value of options granted $— $— $8.19 Stock Purchase Rights The following table presents the stock purchase rights' activity during the years ended March 31, 2021, 2020, and 2019 ( shares in thousands ): Number of Weighted Weighted Average Balance at March 31, 2018 4,975 $ 8.10 1.09 Vested and released (4,625) 7.88 Forfeited (350) 7.88 Balance at March 31, 2019, 2020, and 2021 — $ — There were no activities related to stock purchase rights during the years ended March 31, 2021 and 2020. As of March 31, 2021, there was no unrecognized compensation cost related to stock purchase rights. Restricted Stock Units The following table presents the RSU activity during the years ended March 31, 2021, 2020, and 2019 ( shares in thousands ): Number of Weighted Weighted Average Balance at March 31, 2018 5,006 $ 13.05 Granted 5,061 19.80 Vested and released (1,899) 12.69 Forfeited (1,332) 16.62 Balance at March 31, 2019 6,836 17.45 2.38 Granted 5,592 20.50 Vested and released (2,771) 16.87 Forfeited (1,545) 19.13 Balance at March 31, 2020 8,112 19.43 1.96 Granted 6,256 18.73 Vested and released (4,579) 18.90 Forfeited (1,143) 18.96 Balance at March 31, 2021 8,646 $ 19.27 1.85 As of March 31, 2021, there was $118.9 million of total unrecognized compensation cost related to RSUs. During fiscal 2021, the Company offered its employees an opportunity to receive a portion of their future cash salary for the year in shares of the Company's common stock, which resulted in the release of approximately 203,000 shares during the year. Performance Stock Units PSUs are issued to a group of executives with vesting that is contingent on both market performance and continued service. The PSUs generally vest over periods ranging from one The following table presents the PSU activity during the years ended March 31, 2021, 2020, and 2019 (shares in thousands) : Number of Weighted Weighted Average Balance at March 31, 2018 924 $ 15.95 Granted 474 19.52 Granted for performance achievement 1 192 19.52 Vested and released (506) 13.47 Forfeited (100) 19.94 Balance at March 31, 2019 984 19.23 1.39 Granted 293 21.40 Granted for performance achievement 1 547 21.40 Vested and released (673) 17.61 Forfeited (72) 17.52 Balance at March 31, 2020 1,079 22.05 1.40 Granted 1,013 29.00 Granted for performance achievement 1 43 29.00 Vested and released (350) 19.05 Forfeited (209) 22.38 Balance at March 31, 2021 1,576 $ 27.33 1.24 1 Represents additional PSUs awarded as a result of the achievement of performance goals above the performance targets established at grant. As of March 31, 2021, there was $24.4 million of total unrecognized compensation cost related to PSUs. The PSUs granted during fiscal 2021 were valued for compensation expense purposes at $29.07 per weighted average share as determined by Monte Carlo simulations using volatility factors ranging from 55.66% to 60.68% and risk-free rates ranging from 0.15% to 0.18%. 1996 Employee Stock Purchase Plan The Company's Amended & Restated 1996 Stock Purchase Plan ("Employee Stock Purchase Plan") was adopted in June 1996 and became effective upon the closing of the Company's initial public offering in July 1997. In May 2006, the Company's board of directors approved a ten-year extension of the Employee Stock Purchase Plan. Stockholders approved a ten-year extension of the Employee Stock Purchase Plan at the 2006 Annual Meeting of Stockholders held September 18, 2006. The Board of Directors approved a second ten-year extension in May 2017. Stockholders approved the second ten-year extension in August 2017. As a result of these extensions, the Employee Stock Purchase Plan is effective until August 2027. During fiscal 2021, 2020 and 2019, approximately 0.7 million, 0.6 million and 0.5 million shares, respectively, were issued under the Employee Stock Purchase Plan. The Employee Stock Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of the fair market value of the common stock at the beginning of each one-year offering period or the end of each six month purchase period, whichever is lower. When the Employee Stock Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two years to one year. Commencing with the purchase period beginning in August 2020, the contribution amount may not exceed 20% of an employee's base compensation, including commissions and standard incentive cash bonuses, but not including non-standard bonuses and overtime wages. Prior to the August 2020 purchase period, the contribution amount was limited to 10% of an employee's base compensation, including commissions, but not including bonuses and overtime wages. In the event of a merger of the Company with or into another corporation or the sale of all or substantially all of the assets of the Company, the Employee Stock Purchase Plan provides that a new exercise date will be set for each purchase right under the plan which exercise date will occur before the date of the merger or asset sale. As of March 31, 2021, there was approximately $2.5 million of unrecognized compensation cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.4 years. The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: Years Ended March 31, 2021 2020 2019 Expected volatility 84% 32% 41% Expected dividend yield — — — Risk-free interest rate 0.11% 1.79% 2.43% Weighted average expected term (in years) 0.7 years 0.7 years 0.8 years Weighted average fair value of rights granted $8.00 $5.66 $5.74 Stock Repurchases |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the years ended March 31, 2021, 2020 and 2019, the Company recorded a provision for income taxes of approximately $0.8 million, $0.8 million, and $0.6 million, respectively. The components of the consolidated provision for income taxes for fiscal 2021, 2020 and 2019 consisted of the following: March 31, Current: 2021 2020 2019 Federal $ — $ — $ — State 31 185 291 Foreign 812 647 278 Total current tax provision 843 832 569 Deferred Federal — — — State — — — Foreign — — — Total deferred tax provision — — — Income tax provision $ 843 $ 832 $ 569 The Company's income (loss) from continuing operations before income taxes included $15.3 million, $9.0 million, and $0.2 million of foreign subsidiary income for the years ended March 31, 2021, 2020 and 2019, respectively. The Company is permanently reinvesting the earnings of its profitable foreign subsidiaries. The Company intends to reinvest these profits in expansion of overseas operations. If the Company were to remit these earnings, the tax impact would be immaterial. Deferred tax assets and (liabilities) were comprised of the following: March 31, 2021 2020 Deferred tax assets Net operating loss carryforwards $ 145,655 $ 109,734 Research and development and other credit carryforwards 22,794 19,413 Stock-based compensation 12,669 10,343 Reserves and allowances 6,198 3,974 Lease liability 22,424 24,492 Fixed assets and intangibles 6,091 5,314 Gross deferred tax assets 215,831 173,270 Valuation allowance (160,450) (115,435) Total deferred tax assets $ 55,381 $ 57,835 Deferred tax liabilities Deferred sales commissions (27,166) (21,608) Convertible debt (12,695) (16,626) Lease asset (15,520) (19,601) Net deferred taxes $ — $ — The Company assesses the realizability of deferred tax assets based on the available evidence, including a history of taxable income and estimates of future taxable income. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that all or some portion of deferred tax assets will not be realized. For the year ended March 31, 2021, the Company continues to maintain a full valuation allowance against its deferred tax assets as it considered the cumulative losses in recent periods to be substantial negative evidence. At March 31, 2021, management determined that a valuation allowance of approximately $160.5 million was needed compared with approximately $115.4 million as of March 31, 2020. At March 31, 2021, the Company had federal net operating loss carryforwards related to fiscal 2019, 2020 and 2021 of approximately $433.0 million, which carryforward indefinitely, and had carry-forwards related to prior years of $137.8 million, which begin to expire in 2022. As of March 31, 2021, the Company has state net operating loss carry-forwards of $296.6 million, which expire at various dates between 2029 and 2041. In addition, at March 31, 2021, the Company had research and development credit carryforwards for federal and California tax reporting purposes of approximately $15.3 million and $16.9 million, respectively. The federal income tax credit carryforwards will expire at various dates between 2022 and 2041, while the California income tax credits will carry forward indefinitely, but are subject to an annual cap of $5 million for tax years beginning on or after January 1, 2020 and before January 1, 2023. A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows: Years Ended March 31, 2021 2020 2019 Tax benefit at statutory rate $ (34,492) $ (36,163) $ (18,441) State income taxes before valuation allowance, net of federal effect (7,445) (7,680) (3,612) Foreign tax rate differential (2,206) (1,422) 71 Research and development credits (4,078) (3,892) (3,744) Change in valuation allowance 47,225 51,741 30,558 Compensation/option differences (5,045) (6,584) (7,277) Non-deductible compensation 6,194 3,017 1,200 Other 690 1,815 1,814 Total income tax provision (benefit) $ 843 $ 832 $ 569 For the years ended March 31, 2021, 2020 and 2019, the statutory federal rate of 21% was used. The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Unrecognized Tax Benefits 2021 2020 2019 Balance at beginning of year $ 6,115 $ 5,033 $ 3,980 Gross increases - tax position in prior period — — 17 Gross increases - tax position related to the current year 1,140 1,082 1,036 Lapse of statute of limitations (202) — — Balance at end of year $ 7,053 $ 6,115 $ 5,033 At March 31, 2021, the Company had unrecognized tax benefits of $7.1 million, all of which, if recognized, would favorably affect the company's effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company's policy for recording interest and penalties associated with tax examinations is to record such items as a component of operating expense income before taxes. During the years ended March 31, 2021, 2020 and 2019, the Company did not recognize any interest or penalties related to unrecognized tax benefits. Utilization of the Company's net operating loss and tax credit carryforwards can become subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. The Company has performed an analysis of its changes in ownership under Section 382 of the Internal Revenue Code. The Company currently believes that the Section 382 limitation will not limit utilization of the carryforwards prior to their expiration, with the exception of certain acquired loss and tax credit carryforwards. The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. Due to the Company’s net operating loss and tax credit carryforwards, the fiscal years 2002 and forward generally remain subject to examination by federal and most state tax authorities. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share ( dollars in thousands, except per share data ): For the years ended March 31, 2021 2020 2019 Net loss $ (165,585) $ (172,368) $ (88,739) Weighted average common shares outstanding - basic and diluted 105,700 99,999 94,533 Net loss per share - basic and diluted $ (1.57) $ (1.72) $ (0.94) The following potentially dilutive common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive ( shares in thousands ): For the years ended March 31, 2021 2020 2019 Stock options 1,813 2,274 3,114 Restricted stock units 10,221 9,191 7,820 Potential shares attributable to the ESPP 555 582 473 Total anti-dilutive shares 12,589 12,047 11,407 |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | GEOGRAPHICAL INFORMATION The following tables set forth the geographic information for each period: Revenue for the Years Ended March 31, 2021 2020 2019 United States $ 390,758 $ 350,368 $ 304,378 International 141,586 95,869 48,208 Total revenue $ 532,344 $ 446,237 $ 352,586 Property and Equipment as of March 31, 2021 2020 United States $ 87,945 $ 87,673 International 5,131 6,709 Total property and equipment, net $ 93,076 $ 94,382 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS MarianaIQ On April 12, 2018, the Company entered into an Asset Purchase Agreement with MarianaIQ Inc. ("MarianaIQ") for the purchase of certain assets of MarianaIQ to strengthen the artificial intelligence and machine learning capabilities of the Company's X Series product suite. The Company recorded the acquired developed technology at fair value as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset was amortized on a straight-line basis over two years. The excess of the consideration transferred over the fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the acquired assets to the overall corporate strategy in addition to the acquired workforce. MarianaIQ did not contribute materially to revenue or net loss for the period of acquisition to March 31, 2021. The goodwill recognized upon acquisition was deductible for income tax purposes. Jitsi On October 29, 2018, the Company entered into an Asset Purchase Agreement with Atlassian Corporation PLC ("Atlassian"), through which the Company purchased certain assets from Atlassian relating to Jitsi open source video communications technology ("Jitsi"). The Company intends to integrate Jitsi's video collaboration capabilities into its technology platform to further enhance the Company's video and X Series platform offerings. The Company recorded the acquired developed technology at fair value as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset was amortized on a straight-line basis over two years. The excess of the consideration transferred over the fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to the acquired workforce. Jitsi did not contribute materially to revenue or net loss for the period of acquisition to March 31, 2021. Goodwill recognized upon acquisition is deductible for income tax purposes. Wavecell 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 UCaaS, CCaaS, VCaaS, and 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. 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 Transaction. As of March 31, 2021, the total unrecognized compensation cost related to these awards was approximately $8.5 million, which is expected to be recognized over the next 1.3 years. The major classes of assets and liabilities to which the Company allocated the fair value of purchase consideration were as follows: 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 was accounted for as a business combination under the acquisition method and, accordingly, the total purchase price was 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 were as follows: 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 The Company incurred costs related to this acquisition of approximately $1.9 million. All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in the accompanying consolidated statements of operations. |
UNAUDITED SELECTED CONSOLIDATED
UNAUDITED SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA | UNAUDITED SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA The following tables summarize selected consolidated quarterly financial data for the years ended March 31, 2021 and 2020, ( dollars In thousands, except per share amounts ): Three Months Ended March 31, December 31, September 30, June 30, Fiscal 2021 Total revenues $ 144,719 $ 136,685 129,133 $ 121,807 Gross profit 83,606 76,277 72,637 69,674 Loss from operations (40,036) (35,255) (33,098) (37,760) Net loss (45,034) (40,225) (38,413) (41,913) Net loss per share: Basic and diluted $ (0.42) $ (0.38) $ (0.37) $ (0.40) Three Months Ended March 31, December 31, September 30, June 30, Fiscal 2020 Total revenues $ 121,478 $ 118,567 109,517 $ 96,675 Gross profit 63,857 62,348 59,820 58,984 Loss from operations (46,154) (43,168) (37,944) (32,553) Net loss (50,100) (47,071) (40,932) (34,265) Net loss per share: Basic and diluted $ (0.49) $ (0.47) $ (0.42) $ (0.36) |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Property and equipment consisted of the following: March 31, 2021 2020 Computer equipment $ 40,905 $ 38,105 Software development costs 91,816 77,635 Software licenses 7,798 1,569 Leasehold improvements 28,714 31,706 Furniture and fixtures 5,565 5,485 Construction in progress 10,651 13,852 Total property and equipment 185,449 168,352 Less: accumulated depreciation and amortization (92,373) (73,970) Total property and equipment, net $ 93,076 $ 94,382 Depreciation and amortization expense was $39.0 million, $28.4 million, and $18.5 million for the years ended March 31, 2021, 2020 and 2019, respectively. Other current asset consisted of the following: March 31, 2021 2020 Prepaid expense $ 17,971 $ 14,489 Contract assets, current 12,840 10,425 Receivable related to lease assignment — 6,853 Other current assets 3,284 3,912 Total other current assets $ 34,095 $ 35,679 Other current liabilities consisted of the following: March 31, 2021 2020 Liability related to lease assignment $ 869 $ 8,969 Acquisition-related holdback cash and shares — 18,864 Accrued liabilities 13,586 9,444 Total other current liabilities $ 14,455 $ 37,277 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Dollars in Thousands) Description Balance at Additions Deductions (a) Balance Total Allowance for Credit Losses: Year ended March 31, 2019: $ 904 $ 1,115 $ (1,155) $ 864 Year ended March 31, 2020: $ 864 $ 3,067 $ (825) $ 3,106 Year ended March 31, 2021 (b): $ 3,106 $ 7,374 $ (2,302) $ 8,178 (a) The deductions related to allowance for credit losses represent financial assets which were written off. (b) In fiscal 2021, the Company adopted ASU 2016-13, Financial Instruments—Credit Losses; for the year ended March 31, 2021, Additions Charged to Expenses |
THE COMPANY AND SIGNIFICANT A_2
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
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 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 ended March 31, 2021). |
Principles of Consolidation | The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles generally ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to current expected credit losses, returns reserve for expected cancellations, fair value of and/or potential impairment of goodwill and intangible assets, capitalized internal-use software costs, benefit period for deferred commissions, stock-based compensation, incremental borrowing rate used to calculate operating lease liabilities, income and sales tax liabilities, convertible senior notes fair value, 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. |
Revenue Recognition | As described below, significant management judgments and estimates must be made and used in connection with the recognition of revenue. Material differences may result in the amount and timing of our revenue if management were to make different judgments or utilize different estimates. The Company recognizes revenue using the five-step model prescribed by U.S. GAAP, as follows: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue, and professional services. The transaction price is determined based on the amount we expect to be entitled to receive in exchange for transferring the promised services or products to the customer. The transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied, based on the transaction price, excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. We generally bill our customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days. We occasionally allow a 30-day period to cancel a subscription and return products shipped for a full refund. The Company records reductions to revenue for estimated sales returns and customer credits at the time the related revenue is recognized. Sales returns and customer credits are estimated based on its historical experience, current trends and its expectations regarding future experience. The Company monitors the accuracy of its sales reserve estimates by reviewing actual returns and credits and adjusts them for its future expectations to determine the adequacy of its current and future reserve needs. If actual future returns and credits differ from past experience, additional reserves may be required. When the Company's services do not meet certain service level commitments, customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company historically has not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, the amount of any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented. Judgments and Estimates The estimation of variable consideration for each performance obligation requires the Company to make subjective judgments. The Company has service-level agreements with customers warranting defined levels of uptime reliability and performance. Customers may get credits or refunds if the Company fails to meet such levels. If the services do not meet certain criteria, fees are subject to adjustment or refund representing a form of variable consideration. The Company may impose minimum revenue commitments ("MRC") on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of MRC occurring and the collectability of the MRC, both of which represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple services and products, such as subscriptions, products, and professional services. For arrangements with multiple services, the Company evaluates whether the individual services qualify as distinct performance obligations. In its assessment of whether a service is a distinct performance obligation, the Company determines whether the customer can benefit from the service on its own or with other readily available resources, and whether the service is separately identifiable from other services in the contract. This evaluation requires the Company to assess the nature of each individual service offering and how the services are provided in the context of the contract, including whether the services are significantly integrated, highly interrelated, or significantly modify each other, which may require judgment based on the facts and circumstances of the contract. When agreements involve multiple distinct performance obligations, the Company allocates arrangement consideration to all performance obligations at the inception of an arrangement based on the relative standalone selling prices ("SSP") of each performance obligation. Usage fees deemed to be variable consideration meet the allocation exception for variable consideration. Where the Company has standalone sales data for its performance obligations which are indicative of the price at which the Company sells a promised good or service separately to a customer, such data is used to establish SSP. In instances where standalone sales data is not available for a particular performance obligation, the Company estimates SSP by the use of observable market and cost-based inputs. The Company continues to review the factors used to establish list price and will adjust standalone selling price methodologies as necessary on a prospective basis. Service Revenue Service revenue from subscriptions to the Company's cloud-based technology platform is recognized ratably over the contractual subscription term, beginning on the date that the platform is delivered to the customer until the end of the contractual period. Payments received in advance of subscription services being rendered are recorded as deferred revenue; revenues recognized for services rendered in advance of payments received are recorded as contract assets. Usage fees, when bundled, are billed in advance and recognized over time on a ratable basis over the contractual subscription term, which is usually the monthly contractual billing period. Non-bundled usage fees are recognized as actual usage occurs. Other Revenue Other revenue comprises primarily product revenue and professional services revenue. The Company recognizes product revenue for telephony equipment at the point in time when transfer of control has occurred, which is generally upon shipment. Sales returns are recorded as a reduction to revenue estimated based on historical experience. Professional services for deployment, configuration, system integration, optimization, customer training or education are primarily billed on a fixed-fee basis and are performed by the Company directly. Professional services revenue is recognized as services are performed or upon completion of the deployment. Contract Assets Contract assets are recorded for contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized when the customer receives services or equipment for a reduced consideration at the onset of an arrangement, for example, when the initial month's services or equipment are discounted. Contract assets are included in other current assets or other assets in the Company's consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. Deferred Revenue Deferred revenue represents billings or payments received in advance of revenue recognition and are recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Revenue that will be recognized during the twelve month period in which the Company is providing services are recorded as deferred revenue, current in the consolidated balance sheets, with the remainder recorded as other liabilities, non-current in the Company's consolidated balance sheets. Deferred Sales Commission Costs Sales commissions are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized as deferred sales commission costs and amortized on a straight-line basis over the anticipated benefit period of five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's consolidated statement of operations. |
Cash, Cash Equivalents and Investments | The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Investments are classified as available-for-sale and reported at fair value, based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive income (loss) and disclosed as a separate component of stockholders' equity. Realized gains and losses on sales of all such investments are reported within the caption of other income (expense), net in the consolidated statements of operations and computed using the specific identification method. The Company classifies its investments as short-term or long-term based on the nature of the investments and their availability for use in current operations. The Company's investments in marketable securities are monitored on a periodic basis for impairment. In the event the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. These available-for-sale investments are primarily held in the custody of two major financial institutions. |
Allowance For Credit Losses | The Company accounts for allowance for credit losses under the current expected credit loss (“CECL”) impairment model for its financial assets, including accounts receivable, and presents the net amount of the financial instrument expected to be collected. The CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. Based on this model, the Company estimates the amount of uncollectible accounts receivable at the end of each reporting period based on the aging of the receivable balance, current and historical customer trends, communications with its customers, and macro-economic conditions. Amounts are written off after considerable collection efforts have been made and the amounts are determined to be uncollectible. |
Operating Lease, Right-Of-Use Assets and Lease Liabilities | 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. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one As most of the Company's leases do not provide a readily determinable implicit rate, the Company uses its incremental borrowing rate at lease commencement, which is determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the implicit rate when a rate is readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. |
Property and Equipment | Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three years are used for equipment, capitalized internal-use software and software development costs, and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements. Maintenance, repairs, and ordinary replacements are charged to expense. Expenditures for improvements that extend the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and equipment are recorded in the consolidated statements of operations. Construction in progress primarily relates to costs to acquire or internally develop internal-use software not fully completed as of March 31, 2021 and 2020. |
Capitalized Internal Use Software Costs and Research and Development Expenses | Certain costs of software developed or obtained for internal use is capitalized during the application development stage. The Company begins to capitalize costs to develop software when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. Capitalized internal-use software development costs are included in property and equipment. Once the project has been completed, these costs are amortized to cost of service revenue on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three years. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in research and development expense. The Company tests capitalized internal-use software development costs for impairment on an annual basis, or as events occur or circumstances change that could impact the recoverability of the capitalized costs. |
Accounting For Long-Lived Assets | The Company reviews the recoverability of its long-lived assets, such as property and equipment, right-of-use assets, definite lived intangibles or capitalized internal-use software costs, when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Examples of such events could include a disposal of a significant portion of such assets, an adverse change in the market involving the business employing the related asset or a significant change in the operation or use of an asset. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate the fair value of long-lived assets and asset groups through future cash flows. |
Goodwill and Other Intangible Assets | Goodwill represents the excess fair value of consideration transferred over the fair value of net assets acquired in business combinations. Goodwill and intangible assets with indefinite useful lives are not amortized but are tested annually for impairment and more often if there is an indicator of impairment. The Company performs testing for impairment of goodwill on an annual basis, or as events occur or circumstances change that would more likely than not reduce the fair value of the Company’s single reporting unit below its carrying amount. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Intangible assets, consisting of acquired developed technology, domain names, and customer relationships, acquired in a business combinations are initially measured at fair value and were determined to have definite lives. Thereafter, intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to developed technology is included in cost of revenue. Amortization expense related to customer relationships and domain names are included in sales and marketing expense. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. |
Advertising Costs | Advertising costs are expensed as incurred |
Foreign Currency Translation | The Company has determined that the functional currency of each of its foreign subsidiaries is the subsidiary's local currency. The Company believes that this most appropriately reflects the current economic facts and circumstances of the subsidiaries' operations. The assets and liabilities of the subsidiaries are translated at the applicable exchange rate as of the end of the balance sheet period and revenue and expense amounts are translated at an average rate over the period presented. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss within the stockholder's equity. |
Segment Information | The Company has determined its chief executive officer is the chief operating decision maker. The chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The Company has determined that it operates in a single reportable segment. |
Concentrations | Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investments and trade accounts receivable. The Company has cash equivalents and investment policies that limit the amount of credit exposure to any one financial institution and restrict placement of these funds to financial institutions evaluated as highly credit-worthy. The Company has not experienced any material losses relating to its investments. The Company sells its products to customers and distributors. The Company performs credit evaluations of its customers' financial condition and generally does not require collateral from its customers. As of, and for the years ending, March 31, 2021 and 2020, no customer accounted for more than 10% of accounts receivable or revenues. The Company purchases all of its hardware products from suppliers that manufacture the hardware directly, and from their distributors. The inability of any supplier to fulfill supply requirements of the Company could materially impact future operating results, financial position or cash flows. The Company also relies primarily on third-party network service providers to provide telephone numbers and public switched telephone network ("PSTN") call termination and origination services for its customers. If these service providers failed to perform their obligations to the Company, such failure could materially impact future operating results, financial position and cash flows. |
Fair Value of Financial Instruments | The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal market or the most advantageous market in which it would transact. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability developed based on the best information available in the circumstances. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: • Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. • Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets). • Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including the Company's own assumptions. The estimated fair value of financial instruments is determined by the Company using available market information and valuation methodologies considered to be appropriate. The carrying amounts of the Company's cash and cash equivalents, accounts receivable and accounts payable approximate their fair values due to their short maturities. The Company's investments are recorded at fair value and convertible senior notes payable are recorded at net carrying value. |
Accounting for Stock-Based Compensation | The Company accounts for the fair value of restricted stock units (“RSUs”) using the closing market price of the Company’s common stock on the date of grant. For new-hire grants and annual refresh grants, one-third of the RSUs typically vest on the first anniversary of grant date, and remainder vest on a one-eighth basis quarterly over the subsequent two years. Stock-based compensation cost for RSUs is measured at the grant date based on the estimated fair value of the award and is recognized as expense over the requisite service period (generally the vesting period), net of estimated forfeitures. The Company accounts for the fair value of performance stock units ("PSUs") using Monte Carlo simulations. The Company estimates the fair value of the rights to acquire stock under its 1996 Employee Stock Purchase Plan (the “ESPP”) using the Black-Scholes option pricing formula. The ESPP provides for consecutive six-month offering periods with a one-year lookback period and the Company uses its own historical volatility data in the valuation of shares that are purchased under the ESPP. |
Comprehensive Income (Loss) | Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period. The difference between net income (loss) and comprehensive income (loss) is due to foreign currency translation adjustments and unrealized gains or losses on investments classified as available-for-sale. |
Net Income (Loss) Per Share | Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method unless their effect is anti-dilutive. Dilutive potential common shares include outstanding stock options, ESPP, RSUs and PSUs. |
Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements Not Yet Effective | 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. 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 impact of the adoption was immaterial to the Company's consolidated financial statements. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE 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. |
Indemnifications | Indemnifications In the normal course of business, the Company may agree to indemnify other parties, including customers, lessors and parties to other transactions with the Company, with respect to certain matters such as breaches of representations or covenants or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount of the Company's exposure under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on the Company's operating results, financial position or cash flows. Under some of these agreements, however, the Company's potential indemnification liability might not have a contractual limit. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Balances | The following table provides amounts of receivables, contract assets and deferred revenue from contracts with customers: March 31, 2021 March 31, 2020 Accounts receivable, net $ 51,150 $ 37,811 Contract assets, current 12,840 10,425 Contract assets, non-current 17,987 13,698 Deferred revenue, current 20,737 7,105 Deferred revenue, non-current 2,999 1,119 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | Cash, cash equivalents and available-for-sale investments were as follows: As of March 31, 2021 Amortized Gross Gross Estimated Cash and Restricted Cash Short-Term Long-Term Cash $ 39,070 $ — $ — $ 39,070 $ 39,070 $ — $ — $ — Level 1: Money market funds 67,712 — — 67,712 67,712 — — — Treasury securities 6,177 17 — 6,194 — — 6,194 — Subtotal 112,959 17 — 112,976 106,782 — 6,194 — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Commercial paper 17,656 42 — 17,698 700 — 16,998 — Corporate debt 22,193 1 — 22,194 5,049 — 17,145 — Subtotal 48,490 43 — 48,533 5,749 8,641 34,143 — Total assets $ 161,449 $ 60 $ — $ 161,509 $ 112,531 $ 8,641 $ 40,337 $ — As of March 31, 2020 Amortized Gross Gross Estimated Cash and Restricted Cash Short-Term Long-Term Cash $ 21,002 $ — $ — $ 21,002 $ 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 137,990 116 — 138,106 131,798 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 $ 195,763 $ 154 $ (341) $ 195,576 $ 137,394 $ 19,017 $ 33,458 $ 16,083 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The carrying value of intangible assets consisted of the following: March 31, 2021 March 31, 2020 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Technology $ 33,960 $ (21,458) $ 12,502 $ 33,932 $ (16,312) $ 17,620 Customer relationships 11,969 (7,341) 4,628 11,409 (5,412) 5,997 Trade names and domains 988 (988) — 983 (599) 384 Total acquired identifiable intangible assets $ 46,917 $ (29,787) $ 17,130 $ 46,324 $ (22,323) $ 24,001 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At March 31, 2021, annual amortization of definite lived intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following: Amount 2022 $ 4,708 2023 3,156 2024 2,851 2025 2,851 2026 and thereafter 3,564 Total $ 17,130 |
Schedule of Goodwill | The following table provides a summary of the changes in the carrying amounts of goodwill: Total Balance at March 31, 2019 $ 39,694 Additions due to acquisitions 91,060 Foreign currency translation (2,454) Balance at March 31, 2020 128,300 Foreign currency translation 3,220 Balance at March 31, 2021 $ 131,520 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Assets and Liabilities, Leases | The following table provides balance sheet information related to operating leases: March 31, 2021 March 31, 2020 Assets Operating lease, right-of-use assets $ 66,664 $ 78,963 Liabilities Operating lease liabilities, current $ 12,942 $ 5,875 Operating lease liabilities, non-current 82,456 92,452 Total operating lease liabilities $ 95,398 $ 98,327 |
Lease, Cost | The components of lease expense were as follows: For the years ended March 31, 2021 2020 Operating lease expense $ 15,210 $ 14,971 Variable lease expense 2,462 1,602 The following table presents supplemental lease information: March 31, 2021 March 31, 2020 Weighted average remaining lease term 8.4 years 8.9 years Weighted average discount rate 4.0% 4.0% |
Lessee, Operating Leases, Liability, Maturity | The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2021: 2022 $ 16,341 2023 15,155 2024 11,845 2025 11,508 2026 10,507 Thereafter 47,693 Total lease payments 113,049 Less: imputed interest (17,651) Present value of lease liabilities $ 95,398 |
CONVERTIBLE SENIOR NOTES AND _2
CONVERTIBLE SENIOR NOTES AND CAPPED CALL (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Debt | The following table presents the net carrying amount and fair value of the liability component of the Notes: March 31, 2021 March 31, 2020 Principal $ 362,500 $ 362,500 Unamortized debt discount (53,323) (69,987) Unamortized issuance costs (742) (976) Net carrying amount $ 308,435 $ 291,537 The net impact to the Company’s stockholders’ equity, included in additional paid-in capital, relating to the issuance of the Initial and Additional Notes was as follows: Additional Notes Initial Notes Conversion option $ 12,810 $ 66,700 Payments for capped call transactions (9,288) (33,724) Issuance costs (436) (1,848) Total $ 3,086 $ 31,128 |
Interest Income and Interest Expense Disclosure | Interest expense recognized related to the Notes was as follows: For the years ended March 31, 2021 2020 Contractual interest expense $ 1,813 $ 1,572 Amortization of debt discount 16,664 13,901 Amortization of issuance costs 234 145 Total interest expense $ 18,711 $ 15,618 |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents stock-based compensation expense: Years Ended March 31, 2021 2020 2019 Cost of service revenue $ 8,811 $ 5,330 $ 3,752 Cost of other revenue 4,384 3,051 1,775 Research and development 31,641 19,712 12,313 Sales and marketing 33,869 20,205 11,951 General and administrative 28,933 22,580 14,717 Total $ 107,638 $ 70,878 $ 44,508 |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | The following table presents the stock option activity during the years ended March 31, 2021, 2020, and 2019 ( shares in thousands ): Number of Weighted Average Exercise Price Per Share Outstanding at March 31, 2018 3,998 $ 8.93 Granted 237 21.65 Exercised (760) 7.70 Canceled/Forfeited (361) 15.41 Outstanding at March 31, 2019 3,114 9.45 Exercised (785) 8.77 Canceled/Forfeited (55) 17.01 Outstanding at March 31, 2020 2,274 9.50 Exercised (426) 8.67 Canceled/Forfeited (35) 22.05 Outstanding at March 31, 2021 1,813 9.46 Vested and expected to vest March 31, 2021 1,809 9.43 Exercisable at March 31, 2021 1,751 $ 9.09 The following table presents the stock purchase rights' activity during the years ended March 31, 2021, 2020, and 2019 ( shares in thousands ): Number of Weighted Weighted Average Balance at March 31, 2018 4,975 $ 8.10 1.09 Vested and released (4,625) 7.88 Forfeited (350) 7.88 Balance at March 31, 2019, 2020, and 2021 — $ — The following table presents the RSU activity during the years ended March 31, 2021, 2020, and 2019 ( shares in thousands ): Number of Weighted Weighted Average Balance at March 31, 2018 5,006 $ 13.05 Granted 5,061 19.80 Vested and released (1,899) 12.69 Forfeited (1,332) 16.62 Balance at March 31, 2019 6,836 17.45 2.38 Granted 5,592 20.50 Vested and released (2,771) 16.87 Forfeited (1,545) 19.13 Balance at March 31, 2020 8,112 19.43 1.96 Granted 6,256 18.73 Vested and released (4,579) 18.90 Forfeited (1,143) 18.96 Balance at March 31, 2021 8,646 $ 19.27 1.85 The following table presents the PSU activity during the years ended March 31, 2021, 2020, and 2019 (shares in thousands) : Number of Weighted Weighted Average Balance at March 31, 2018 924 $ 15.95 Granted 474 19.52 Granted for performance achievement 1 192 19.52 Vested and released (506) 13.47 Forfeited (100) 19.94 Balance at March 31, 2019 984 19.23 1.39 Granted 293 21.40 Granted for performance achievement 1 547 21.40 Vested and released (673) 17.61 Forfeited (72) 17.52 Balance at March 31, 2020 1,079 22.05 1.40 Granted 1,013 29.00 Granted for performance achievement 1 43 29.00 Vested and released (350) 19.05 Forfeited (209) 22.38 Balance at March 31, 2021 1,576 $ 27.33 1.24 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each of the Company's option grants has been estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: Years Ended March 31, 2021 2020 2019 Expected volatility —% —% 41% Risk-free interest rate — — 2.5% to 3.0% Weighted average expected term (in years) 0 0 4.5 years Weighted average fair value of options granted $— $— $8.19 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The estimated fair value of stock purchase rights granted under the Employee Stock Purchase Plan was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: Years Ended March 31, 2021 2020 2019 Expected volatility 84% 32% 41% Expected dividend yield — — — Risk-free interest rate 0.11% 1.79% 2.43% Weighted average expected term (in years) 0.7 years 0.7 years 0.8 years Weighted average fair value of rights granted $8.00 $5.66 $5.74 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the consolidated provision for income taxes for fiscal 2021, 2020 and 2019 consisted of the following: March 31, Current: 2021 2020 2019 Federal $ — $ — $ — State 31 185 291 Foreign 812 647 278 Total current tax provision 843 832 569 Deferred Federal — — — State — — — Foreign — — — Total deferred tax provision — — — Income tax provision $ 843 $ 832 $ 569 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and (liabilities) were comprised of the following: March 31, 2021 2020 Deferred tax assets Net operating loss carryforwards $ 145,655 $ 109,734 Research and development and other credit carryforwards 22,794 19,413 Stock-based compensation 12,669 10,343 Reserves and allowances 6,198 3,974 Lease liability 22,424 24,492 Fixed assets and intangibles 6,091 5,314 Gross deferred tax assets 215,831 173,270 Valuation allowance (160,450) (115,435) Total deferred tax assets $ 55,381 $ 57,835 Deferred tax liabilities Deferred sales commissions (27,166) (21,608) Convertible debt (12,695) (16,626) Lease asset (15,520) (19,601) Net deferred taxes $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate is as follows: Years Ended March 31, 2021 2020 2019 Tax benefit at statutory rate $ (34,492) $ (36,163) $ (18,441) State income taxes before valuation allowance, net of federal effect (7,445) (7,680) (3,612) Foreign tax rate differential (2,206) (1,422) 71 Research and development credits (4,078) (3,892) (3,744) Change in valuation allowance 47,225 51,741 30,558 Compensation/option differences (5,045) (6,584) (7,277) Non-deductible compensation 6,194 3,017 1,200 Other 690 1,815 1,814 Total income tax provision (benefit) $ 843 $ 832 $ 569 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Unrecognized Tax Benefits 2021 2020 2019 Balance at beginning of year $ 6,115 $ 5,033 $ 3,980 Gross increases - tax position in prior period — — 17 Gross increases - tax position related to the current year 1,140 1,082 1,036 Lapse of statute of limitations (202) — — Balance at end of year $ 7,053 $ 6,115 $ 5,033 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share ( dollars in thousands, except per share data ): For the years ended March 31, 2021 2020 2019 Net loss $ (165,585) $ (172,368) $ (88,739) Weighted average common shares outstanding - basic and diluted 105,700 99,999 94,533 Net loss per share - basic and diluted $ (1.57) $ (1.72) $ (0.94) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive ( shares in thousands ): For the years ended March 31, 2021 2020 2019 Stock options 1,813 2,274 3,114 Restricted stock units 10,221 9,191 7,820 Potential shares attributable to the ESPP 555 582 473 Total anti-dilutive shares 12,589 12,047 11,407 |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth the geographic information for each period: Revenue for the Years Ended March 31, 2021 2020 2019 United States $ 390,758 $ 350,368 $ 304,378 International 141,586 95,869 48,208 Total revenue $ 532,344 $ 446,237 $ 352,586 |
Long-lived Assets by Geographic Areas | Property and Equipment as of March 31, 2021 2020 United States $ 87,945 $ 87,673 International 5,131 6,709 Total property and equipment, net $ 93,076 $ 94,382 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company allocated the fair value of purchase consideration were as follows: 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 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The value of the acquired intangible assets acquired were as follows: 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 |
UNAUDITED SELECTED CONSOLIDAT_2
UNAUDITED SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | The following tables summarize selected consolidated quarterly financial data for the years ended March 31, 2021 and 2020, ( dollars In thousands, except per share amounts ): Three Months Ended March 31, December 31, September 30, June 30, Fiscal 2021 Total revenues $ 144,719 $ 136,685 129,133 $ 121,807 Gross profit 83,606 76,277 72,637 69,674 Loss from operations (40,036) (35,255) (33,098) (37,760) Net loss (45,034) (40,225) (38,413) (41,913) Net loss per share: Basic and diluted $ (0.42) $ (0.38) $ (0.37) $ (0.40) Three Months Ended March 31, December 31, September 30, June 30, Fiscal 2020 Total revenues $ 121,478 $ 118,567 109,517 $ 96,675 Gross profit 63,857 62,348 59,820 58,984 Loss from operations (46,154) (43,168) (37,944) (32,553) Net loss (50,100) (47,071) (40,932) (34,265) Net loss per share: Basic and diluted $ (0.49) $ (0.47) $ (0.42) $ (0.36) |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property and equipment consisted of the following: March 31, 2021 2020 Computer equipment $ 40,905 $ 38,105 Software development costs 91,816 77,635 Software licenses 7,798 1,569 Leasehold improvements 28,714 31,706 Furniture and fixtures 5,565 5,485 Construction in progress 10,651 13,852 Total property and equipment 185,449 168,352 Less: accumulated depreciation and amortization (92,373) (73,970) Total property and equipment, net $ 93,076 $ 94,382 |
Schedule of Other Current Assets | Other current asset consisted of the following: March 31, 2021 2020 Prepaid expense $ 17,971 $ 14,489 Contract assets, current 12,840 10,425 Receivable related to lease assignment — 6,853 Other current assets 3,284 3,912 Total other current assets $ 34,095 $ 35,679 |
Other Current Liabilities | Other current liabilities consisted of the following: March 31, 2021 2020 Liability related to lease assignment $ 869 $ 8,969 Acquisition-related holdback cash and shares — 18,864 Accrued liabilities 13,586 9,444 Total other current liabilities $ 14,455 $ 37,277 |
THE COMPANY AND SIGNIFICANT A_3
THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Capitalized contract cost, amortization period | 5 years | |||
Term of contract | 132 months | |||
Advertising expense | $ 9 | $ 32.2 | $ 25 | |
Equipment | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Software and Software Development Costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Furniture and fixtures | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Property, plant and equipment, useful life | 5 years | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of contract | 1 year | |||
Renewal term | 12 months | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of contract | 10 years | |||
Renewal term | 5 years | |||
Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Vesting period | 1 year | |||
Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Computer Software, Intangible Asset | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Finite-lived intangible asset, useful life | 3 years | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 3 years |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 51,150 | $ 37,811 |
Contract assets, current | 12,840 | 10,425 |
Contract assets, non-current | 17,987 | 13,698 |
Deferred revenue, current | 20,737 | 7,105 |
Deferred revenue, non-current | $ 2,999 | $ 1,119 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with customer, liability, revenue recognized | $ 6,100,000 | ||
Capitalized contract cost, amortization | 27,800,000 | $ 19,500,000 | $ 14,200,000 |
Capitalized contract cost, impairment loss | $ 0 | $ 0 | $ 0 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligation (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Subscription term | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Subscription term | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 500 |
Revenue, remaining performance obligation, percentage | 70.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 36 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 30.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
FAIR VALUE MEASUREMENTS - Cash,
FAIR VALUE MEASUREMENTS - Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 112,531 | $ 137,394 | $ 276,583 |
Accumulated gross unrealized gain, before tax | 60 | 154 | |
Accumulated gross unrealized loss, before tax | 0 | (341) | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 161,449 | 195,763 | |
Cash, cash equivalents and debt securities available-for-sale | 161,509 | 195,576 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accumulated gross unrealized gain, before tax | 17 | 116 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 112,959 | 137,990 | |
Cash, cash equivalents and debt securities available-for-sale | 112,976 | 138,106 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 48,490 | 57,773 | |
Accumulated gross unrealized gain, before tax | 43 | 38 | |
Accumulated gross unrealized loss, before tax | 0 | (341) | |
Debt securities, available-for-sale | 48,533 | 57,470 | |
Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 39,070 | 21,002 | |
Cash and cash equivalents, fair value disclosure | 39,070 | 21,002 | |
Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 67,712 | 110,796 | |
Cash and cash equivalents, fair value disclosure | 67,712 | 110,796 | |
Treasury securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 6,177 | 6,192 | |
Accumulated gross unrealized gain, before tax | 17 | 116 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Debt securities, available-for-sale | 6,194 | 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 disclosure | 8,641 | 8,641 | |
Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 17,656 | 14,979 | |
Accumulated gross unrealized gain, before tax | 42 | 6 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Debt securities, available-for-sale | 17,698 | 14,985 | |
Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Costs | 22,193 | 34,153 | |
Accumulated gross unrealized gain, before tax | 1 | 32 | |
Accumulated gross unrealized loss, before tax | 0 | (341) | |
Debt securities, available-for-sale | 22,194 | 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 | 112,531 | 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 | 106,782 | 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 | 5,749 | 5,596 | |
Cash and Cash Equivalents | Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 39,070 | 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 | 67,712 | 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 | 700 | 5,596 | |
Cash and Cash Equivalents | Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 5,049 | 0 | |
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 | 8,641 | 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 | 0 | 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 | 0 | 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] | |||
Debt securities, available-for-sale | 33,458 | ||
Cash, cash equivalents and debt securities available-for-sale | 40,337 | ||
Short-Term Investments | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 6,194 | 0 | |
Short-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 34,143 | 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 | 6,194 | 0 | |
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 | 16,998 | 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 | 17,145 | 24,069 | |
Long-Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 16,083 | ||
Cash, cash equivalents and debt securities available-for-sale | 0 | ||
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 | 0 | 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 | ||
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 | $ 0 | $ 9,775 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt, fair value | $ 502.9 | $ 309.6 |
INTANGIBLE ASSETS AND GOODWILL-
INTANGIBLE ASSETS AND GOODWILL- Schedule Of Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 46,917 | $ 46,324 |
Accumulated Amortization | (29,787) | (22,323) |
Net Carrying Amount | 17,130 | 24,001 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,960 | 33,932 |
Accumulated Amortization | (21,458) | (16,312) |
Net Carrying Amount | 12,502 | 17,620 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,969 | 11,409 |
Accumulated Amortization | (7,341) | (5,412) |
Net Carrying Amount | 4,628 | 5,997 |
Trade names and domains | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 988 | 983 |
Accumulated Amortization | (988) | (599) |
Net Carrying Amount | $ 0 | $ 384 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 6,886 | $ 8,842 | $ 6,175 |
Fully amortized intangible asset written off | $ 11,300 | ||
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, remaining amortization period | 4 years 4 months 24 days | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, remaining amortization period | 5 years 2 months 12 days | ||
Trade names and domains | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, remaining amortization period | 0 years |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 4,708 |
2023 | 3,156 |
2024 | 2,851 |
2025 | 2,851 |
2026 and thereafter | 3,564 |
Total | $ 17,130 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Changes in Carrying Amount of Goodwill by Location (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 128,300 | $ 39,694 |
Additions due to acquisitions | 91,060 | |
Foreign currency translation | 3,220 | (2,454) |
Goodwill, ending balance | $ 131,520 | $ 128,300 |
LEASES - Components of Lease Ri
LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Assets | ||
Operating lease, right-of-use assets | $ 66,664 | $ 78,963 |
Liabilities | ||
Operating lease liabilities, current | 12,942 | 5,875 |
Operating lease liabilities, non-current | 82,456 | 92,452 |
Total operating lease liabilities | $ 95,398 | $ 98,327 |
LEASES - Operating Lease Expens
LEASES - Operating Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 15,210 | $ 14,971 |
Variable lease expense | $ 2,462 | $ 1,602 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2018ft² | |
Leases [Abstract] | |||
Operating leases, payments | $ 9.9 | $ 9.9 | |
Term of contract | 132 months | ||
Area of real estate property | ft² | 162,000 | ||
Reimbursement of rent and direct expenses | 6.4 | ||
Liability related to lease assignment | 0.8 | ||
Termination fee | $ 0.8 |
LEASES - Supplemental Informati
LEASES - Supplemental Information (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term | 8 years 4 months 24 days | 8 years 10 months 24 days |
Weighted average discount rate | 4.00% | 4.00% |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 16,341 | |
2023 | 15,155 | |
2024 | 11,845 | |
2025 | 11,508 | |
2026 | 10,507 | |
Thereafter | 47,693 | |
Total lease payments | 113,049 | |
Less: imputed interest | (17,651) | |
Present value of lease liabilities | $ 95,398 | $ 98,327 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
State and Local Taxes and Surcharges | ||
Lessee, Lease, Description [Line Items] | ||
Accrued contingent indirect tax liabilities | $ 3.1 | $ 4.5 |
Third-Party Customer Support Commitments | ||
Lessee, Lease, Description [Line Items] | ||
Other commitment | $ 18.6 |
CONVERTIBLE SENIOR NOTES AND _3
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019USD ($) | Feb. 28, 2019USD ($)day$ / sharesshares | Mar. 31, 2021USD ($)$ / shares | Mar. 31, 2020USD ($)$ / shares | Dec. 01, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Debt issuance costs, net | $ 600,000 | ||||
Convertible Debt | Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 287,500,000 | $ 362,500,000 | $ 362,500,000 | ||
Debt instrument, interest rate | 0.50% | ||||
Proceeds from issuance of debt | $ 245,800,000 | ||||
Debt instrument, convertible, conversion ratio | 0.0389484 | ||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | ||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 25.68 | ||||
Debt instrument, convertible, threshold trading days | day | 20 | ||||
Debt instrument, convertible, threshold consecutive trading days | day | 30 | ||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||||
Debt instrument, convertible, measurement period | day | 5 | ||||
Debt instrument, convertible, threshold consecutive trading days preceding measurement period | day | 10 | ||||
Debt instrument, threshold percentage of sales price per share | 98.00% | ||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Unamortized debt discount and issuance costs | 34 months | ||||
Debt instrument, strike price per share (in dollars per share) | $ / shares | $ 25.68 | ||||
Debt instrument, initial cap price per share (in dollars per share) | $ / shares | $ 39.50 | ||||
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 | ||||
Conversion option | $ 12,400,000 | ||||
Debt instrument, effective interest rate | 5.30% | ||||
Payments for capped call transactions | $ 9,300,000 | $ 9,288,000 | |||
Convertible Debt | Aggregate Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 362,500,000 | ||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Convertible Debt | Initial Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion option | $ 64,900,000 | ||||
Debt instrument, effective interest rate | 6.50% | ||||
Payments for capped call transactions | $ 33,700,000 | $ 33,724,000 | |||
Call Option | Convertible Debt | Convertible Senior Notes | |||||
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 - Convertible Senior Notes - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | Feb. 28, 2019 |
Debt Instrument [Line Items] | |||
Principal | $ 362,500,000 | $ 362,500,000 | $ 287,500,000 |
Unamortized debt discount | (53,323,000) | (69,987,000) | |
Unamortized issuance costs | (742,000) | (976,000) | |
Net carrying amount | $ 308,435,000 | $ 291,537,000 |
CONVERTIBLE SENIOR NOTES AND _5
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Interest Expense (Details) - Convertible Debt - Convertible Senior Notes - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 1,813 | $ 1,572 |
Amortization of debt discount | 16,664 | 13,901 |
Amortization of issuance costs | 234 | 145 |
Total interest expense | $ 18,711 | $ 15,618 |
CONVERTIBLE SENIOR NOTES AND _6
CONVERTIBLE SENIOR NOTES AND CAPPED CALL - Net Impact to Stockholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Total | $ 3,094 | $ 31,128 | ||
Convertible Debt | Additional Notes | ||||
Debt Instrument [Line Items] | ||||
Conversion option | $ 12,810 | |||
Payments for capped call transactions | $ (9,300) | (9,288) | ||
Issuance costs | (436) | |||
Total | 3,086 | |||
Convertible Debt | Initial Notes | ||||
Debt Instrument [Line Items] | ||||
Conversion option | 66,700 | |||
Payments for capped call transactions | $ (33,700) | (33,724) | ||
Issuance costs | (1,848) | |||
Total | $ 31,128 |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | Sep. 18, 2006 | Jan. 01, 2005 | Dec. 31, 2004 | Aug. 31, 2017 | May 31, 2017 | May 31, 2006 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Aug. 31, 2016 | Jul. 31, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares released in the period (in shares) | 203,000 | ||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Unamortized stock-based compensation expense | $ 118,900,000 | ||||||||||||||||||||
Employee Stock Option | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Total intrinsic value of options exercised | 8,000,000 | $ 10,100,000 | $ 10,000,000 | ||||||||||||||||||
Unamortized stock-based compensation expense | $ 400,000 | ||||||||||||||||||||
Weighted average period of recognition for unrecognized compensation expense | 1 year 1 month 6 days | ||||||||||||||||||||
Risk-free interest rate | 0.00% | 0.00% | |||||||||||||||||||
Stock Purchase Right | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Unamortized stock-based compensation expense | $ 0 | ||||||||||||||||||||
Risk-free interest rate | 0.11% | 1.79% | 2.43% | ||||||||||||||||||
Performance Stock Units | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Unamortized stock-based compensation expense | $ 24,400,000 | ||||||||||||||||||||
Change in number of shares earned | 2.00% | ||||||||||||||||||||
Maximum percentage of awards to be earned | 200.00% | ||||||||||||||||||||
Vesting percentage | 100.00% | ||||||||||||||||||||
Weighted average share price (in dollars per share) | $ 29.07 | ||||||||||||||||||||
Minimum | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Volatility factors ranging | 55.66% | ||||||||||||||||||||
Risk-free interest rate | 0.15% | ||||||||||||||||||||
Minimum | Performance Stock Units | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 1 year | ||||||||||||||||||||
Total shareholder return performance, lowest percentage to still earn awards | 30.00% | ||||||||||||||||||||
Maximum | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Volatility factors ranging | 60.68% | ||||||||||||||||||||
Risk-free interest rate | 0.18% | ||||||||||||||||||||
Maximum | Performance Stock Units | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
2017 Repurchase Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock repurchase program, authorized amount | $ 25,000,000 | ||||||||||||||||||||
Stock repurchased during period (in shares) | 0 | ||||||||||||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 7,100,000 | ||||||||||||||||||||
2006 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 7,000,000 | ||||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 0 | ||||||||||||||||||||
2012 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 4,100,000 | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 12,900,000 | ||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 12,000,000 | 16,300,000 | 4,500,000 | 6,800,000 | |||||||||||||||||
2012 Plan | Minimum | Restricted stock units | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
2012 Plan | Maximum | Restricted stock units | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||||
2013 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 1,000,000 | ||||||||||||||||||||
Vesting period | 4 years | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 0 | ||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 1,200,000 | 1,200,000 | |||||||||||||||||||
2017 Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of shares reserved for future issuance (in shares) | 1,000,000 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Expiration period | 10 years | ||||||||||||||||||||
Number of shares available for future grant (in shares) | 1,100,000 | ||||||||||||||||||||
Number of additional shares reserved for future issuance (in shares) | 1,400,000 | 1,500,000 | |||||||||||||||||||
Employee Stock Purchase Plan | Employee Stock | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Unamortized stock-based compensation expense | $ 2,500,000 | ||||||||||||||||||||
Weighted average period of recognition for unrecognized compensation expense | 4 months 24 days | ||||||||||||||||||||
Term of extension | 10 years | 10 years | 10 years | 10 years | |||||||||||||||||
Value of shares issued under employee stock purchase plan | $ 700,000 | $ 600,000 | $ 500,000 | ||||||||||||||||||
Percentage of market value price of common stock under Employee Stock Purchase Plan | 85.00% | ||||||||||||||||||||
Duration of offering period | 1 year | 2 years | |||||||||||||||||||
Duration of purchase period | 6 months | ||||||||||||||||||||
Maximum contribution percentage amount of employee's base compensation | 10.00% | 20.00% |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | $ 107,638 | $ 70,878 | $ 44,508 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 31,641 | 19,712 | 12,313 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 33,869 | 20,205 | 11,951 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 28,933 | 22,580 | 14,717 |
Service | Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | 8,811 | 5,330 | 3,752 |
Other revenue | Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based employee compensation expense | $ 4,384 | $ 3,051 | $ 1,775 |
STOCK-BASED COMPENSATION AND _5
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Option Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 2,274 | 3,114 | 3,998 |
Granted (in shares) | 237 | ||
Exercised (in shares) | (426) | (785) | (760) |
Canceled/forfeited (in shares) | (35) | (55) | (361) |
Outstanding, ending balance (in shares) | 1,813 | 2,274 | 3,114 |
Vested and expected to vest, end of period (in shares) | 1,809 | ||
Exercisable, end of period (in shares) | 1,751 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding, beginning balance (in dollars per share) | $ 9.50 | $ 9.45 | $ 8.93 |
Granted (in dollars per share) | 21.65 | ||
Exercised (in dollars per share) | 8.67 | 8.77 | 7.70 |
Canceled/Forfeited (in dollars per share) | 22.05 | 17.01 | 15.41 |
Outstanding, ending balance (in dollars per share) | 9.46 | $ 9.50 | $ 9.45 |
Vested and expected to vest, ending balance (in dollars per share) | 9.43 | ||
Exercisable, end of period (in dollars per share) | $ 9.09 |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Assumptions Used In Black-Scholes Model (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 0.00% | 0.00% | 41.00% |
Risk-free interest rate | 0.00% | 0.00% | |
Risk-free interest rate, minimum | 2.50% | ||
Risk-free interest rate, maximum | 3.00% | ||
Weighted average expected term (in years) | 0 years | 0 years | 4 years 6 months |
Weighted average fair value of options granted (in dollars per share) | $ 0 | $ 0 | $ 8.19 |
Stock Purchase Right | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 84.00% | 32.00% | 41.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 0.11% | 1.79% | 2.43% |
Weighted average expected term (in years) | 8 months 12 days | 8 months 12 days | 9 months 18 days |
Weighted average fair value of options granted (in dollars per share) | $ 8 | $ 5.66 | $ 5.74 |
STOCK-BASED COMPENSATION AND _7
STOCK-BASED COMPENSATION AND STOCKHOLDERS' EQUITY - Stock Purchase Right and Restricted Stock Unit Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Stock Purchase Right | ||||
Number of Shares | ||||
Beginning balance (in shares) | 0 | 0 | 4,975 | |
Vested and released (in shares) | (4,625) | |||
Forfeited (in shares) | (350) | |||
Ending balance (in shares) | 0 | 0 | 0 | 4,975 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 0 | $ 0 | $ 8.10 | |
Vested and released (in dollars per share) | 7.88 | |||
Forfeited (in dollars per share) | 7.88 | |||
Ending balance (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 8.10 |
Weighted Average Remaining Contractual Term (in Years) | 1 year 1 month 2 days | |||
Restricted stock units | ||||
Number of Shares | ||||
Beginning balance (in shares) | 8,112 | 6,836 | 5,006 | |
Granted (in shares) | 6,256 | 5,592 | 5,061 | |
Vested and released (in shares) | (4,579) | (2,771) | (1,899) | |
Forfeited (in shares) | (1,143) | (1,545) | (1,332) | |
Ending balance (in shares) | 8,646 | 8,112 | 6,836 | 5,006 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 19.43 | $ 17.45 | $ 13.05 | |
Granted (in dollars per share) | 18.73 | 20.50 | 19.80 | |
Vested and released (in dollars per share) | 18.90 | 16.87 | 12.69 | |
Forfeited (in dollars per share) | 18.96 | 19.13 | 16.62 | |
Ending balance (in dollars per share) | $ 19.27 | $ 19.43 | $ 17.45 | $ 13.05 |
Weighted Average Remaining Contractual Term (in Years) | 1 year 10 months 6 days | 1 year 11 months 15 days | 2 years 4 months 17 days | |
Performance Stock Units | ||||
Number of Shares | ||||
Beginning balance (in shares) | 1,079 | 984 | 924 | |
Granted (in shares) | 1,013 | 293 | 474 | |
Granted for performance achievement (in shares) | 43 | 547 | 192 | |
Vested and released (in shares) | (350) | (673) | (506) | |
Forfeited (in shares) | (209) | (72) | (100) | |
Ending balance (in shares) | 1,576 | 1,079 | 984 | 924 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 22.05 | $ 19.23 | $ 15.95 | |
Granted (in dollars per share) | 29 | 21.40 | 19.52 | |
Granted performance achievement (in dollars per share) | 29 | 21.40 | 19.52 | |
Vested and released (in dollars per share) | 19.05 | 17.61 | 13.47 | |
Forfeited (in dollars per share) | 22.38 | 17.52 | 19.94 | |
Ending balance (in dollars per share) | $ 27.33 | $ 22.05 | $ 19.23 | $ 15.95 |
Weighted Average Remaining Contractual Term (in Years) | 1 year 2 months 26 days | 1 year 4 months 24 days | 1 year 4 months 20 days |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ 843,000 | $ 832,000 | $ 569,000 | |
Undistributed earnings (losses) of foreign subsidiaries | 15,300,000 | 9,000,000 | 200,000 | |
Deferred tax assets, valuation allowance | 160,450,000 | 115,435,000 | ||
Research tax credit carryforwards | 5,000,000 | |||
Unrecognized tax benefits | 7,053,000 | 6,115,000 | 5,033,000 | $ 3,980,000 |
Accrued penalties and interest | 0 | $ 0 | $ 0 | |
Internal Revenue Service (IRS) | ||||
Income Tax Contingency [Line Items] | ||||
Research tax credit carryforwards | 15,300,000 | |||
State and Local Jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 296,600,000 | |||
Research tax credit carryforwards | 16,900,000 | |||
Tax Year 2019 and 2020 | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 433,000,000 | |||
Tax Years Prior to 2019 | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | $ 137,800,000 |
INCOME TAXES - Income Tax Provi
INCOME TAXES - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 31 | 185 | 291 |
Foreign | 812 | 647 | 278 |
Total current tax provision | 843 | 832 | 569 |
Deferred | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 0 | 0 | 0 |
Total deferred tax provision | 0 | 0 | 0 |
Total income tax provision (benefit) | $ 843 | $ 832 | $ 569 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 145,655 | $ 109,734 |
Research and development and other credit carryforwards | 22,794 | 19,413 |
Stock-based compensation | 12,669 | 10,343 |
Reserves and allowances | 6,198 | 3,974 |
Lease liability | 22,424 | 24,492 |
Fixed assets and intangibles | 6,091 | 5,314 |
Gross deferred tax assets | 215,831 | 173,270 |
Valuation allowance | (160,450) | (115,435) |
Total deferred tax assets | 55,381 | 57,835 |
Deferred tax liabilities | ||
Deferred sales commissions | (27,166) | (21,608) |
Convertible debt | (12,695) | (16,626) |
Lease asset | (15,520) | (19,601) |
Net deferred taxes | $ 0 | $ 0 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Taxes Provided to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit at statutory rate | $ (34,492) | $ (36,163) | $ (18,441) |
State income taxes before valuation allowance, net of federal effect | (7,445) | (7,680) | (3,612) |
Foreign tax rate differential | (2,206) | (1,422) | 71 |
Research and development credits | (4,078) | (3,892) | (3,744) |
Change in valuation allowance | 47,225 | 51,741 | 30,558 |
Compensation/option differences | (5,045) | (6,584) | (7,277) |
Non-deductible compensation | 6,194 | 3,017 | 1,200 |
Other | 690 | 1,815 | 1,814 |
Total income tax provision (benefit) | $ 843 | $ 832 | $ 569 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 6,115 | $ 5,033 | $ 3,980 |
Gross increases - tax position in prior period | 0 | 0 | 17 |
Gross increases - tax position related to the current year | 1,140 | 1,082 | 1,036 |
Lapse of statute of limitations | (202) | 0 | 0 |
Balance at end of year | $ 7,053 | $ 6,115 | $ 5,033 |
NET LOSS PER SHARE - Basic and
NET LOSS PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (45,034) | $ (40,225) | $ (38,413) | $ (41,913) | $ (50,100) | $ (47,071) | $ (40,932) | $ (34,265) | $ (165,585) | $ (172,368) | $ (88,739) |
Weighted average common shares outstanding - basic and diluted (in shares) | 105,700 | 99,999 | 94,533 | ||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (0.42) | $ (0.38) | $ (0.37) | $ (0.40) | $ (0.49) | $ (0.47) | $ (0.42) | $ (0.36) | $ (1.57) | $ (1.72) | $ (0.94) |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of Antidilutive Awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (in shares) | 12,589 | 12,047 | 11,407 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (in shares) | 1,813 | 2,274 | 3,114 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (in shares) | 10,221 | 9,191 | 7,820 |
Potential shares attributable to the ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (in shares) | 555 | 582 | 473 |
GEOGRAPHICAL INFORMATION (Detai
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 144,719 | $ 136,685 | $ 129,133 | $ 121,807 | $ 121,478 | $ 118,567 | $ 109,517 | $ 96,675 | $ 532,344 | $ 446,237 | $ 352,586 |
Property and equipment, net | 93,076 | 94,382 | 93,076 | 94,382 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 390,758 | 350,368 | 304,378 | ||||||||
Property and equipment, net | 87,945 | 87,673 | 87,945 | 87,673 | |||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 141,586 | 95,869 | $ 48,208 | ||||||||
Property and equipment, net | $ 5,131 | $ 6,709 | $ 5,131 | $ 6,709 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions | Jul. 17, 2019 | Oct. 29, 2018 | Apr. 12, 2018 | Mar. 31, 2021 |
Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred | $ 117.1 | |||
Payments to acquire businesses, gross | 72.8 | |||
Business combination, consideration transferred, equity interests issued and issuable | 44.3 | |||
Business combination, acquisition related costs | $ 1.9 | |||
Developed technology | MarianaIQ | ||||
Business Acquisition [Line Items] | ||||
Useful life (in Years) | 2 years | |||
Finite-lived intangible assets, remaining amortization period | 2 years | |||
Developed technology | Jitsi | ||||
Business Acquisition [Line Items] | ||||
Useful life (in Years) | 2 years | |||
Finite-lived intangible assets, remaining amortization period | 2 years | |||
Developed technology | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Useful life (in Years) | 7 years | |||
Time-Based Restricted Stock Awards | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred, equity interests issued and issuable | $ 13.2 | |||
Performance-Based Restricted Stock Awards | Wavecell Pte. Ltd. | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred, equity interests issued and issuable | $ 6.6 | |||
Vesting period | 3 years | |||
Unamortized stock-based compensation expense | $ 8.5 | |||
Weighted average period of recognition for unrecognized compensation expense | 1 year 3 months 18 days | |||
Employee Stock | Employee Stock Purchase Plan | ||||
Business Acquisition [Line Items] | ||||
Unamortized stock-based compensation expense | $ 2.5 | |||
Weighted average period of recognition for unrecognized compensation expense | 4 months 24 days |
ACQUISITIONS - Allocation of th
ACQUISITIONS - Allocation of the Fair Value of Purchase Consideration (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Jul. 17, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 131,520 | $ 128,300 | $ 39,694 | |
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 |
ACQUISITIONS - Fair Value Intan
ACQUISITIONS - 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 |
Developed technology | |
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 |
UNAUDITED SELECTED CONSOLIDAT_3
UNAUDITED SELECTED CONSOLIDATED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 144,719 | $ 136,685 | $ 129,133 | $ 121,807 | $ 121,478 | $ 118,567 | $ 109,517 | $ 96,675 | $ 532,344 | $ 446,237 | $ 352,586 |
Gross profit | 83,606 | 76,277 | 72,637 | 69,674 | 63,857 | 62,348 | 59,820 | 58,984 | |||
Loss from operations | (40,036) | (35,255) | (33,098) | (37,760) | (46,154) | (43,168) | (37,944) | (32,553) | (146,149) | (159,819) | (89,633) |
Net loss | $ (45,034) | $ (40,225) | $ (38,413) | $ (41,913) | $ (50,100) | $ (47,071) | $ (40,932) | $ (34,265) | $ (165,585) | $ (172,368) | $ (88,739) |
Net loss per share: | |||||||||||
Basic and diluted (in dollars per share) | $ (0.42) | $ (0.38) | $ (0.37) | $ (0.40) | $ (0.49) | $ (0.47) | $ (0.42) | $ (0.36) | $ (1.57) | $ (1.72) | $ (0.94) |
SUPPLEMENTAL FINANCIAL INFORM_3
SUPPLEMENTAL FINANCIAL INFORMATION - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 185,449 | $ 168,352 |
Less: accumulated depreciation and amortization | (92,373) | (73,970) |
Total property and equipment, net | 93,076 | 94,382 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 40,905 | 38,105 |
Software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 91,816 | 77,635 |
Software licenses | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 7,798 | 1,569 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 28,714 | 31,706 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 5,565 | 5,485 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 10,651 | $ 13,852 |
SUPPLEMENTAL FINANCIAL INFORM_4
SUPPLEMENTAL FINANCIAL INFORMATION - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 39 | $ 28.4 | $ 18.5 |
SUPPLEMENTAL FINANCIAL INFORM_5
SUPPLEMENTAL FINANCIAL INFORMATION - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Prepaid expense | $ 17,971 | $ 14,489 |
Contract assets, current | 12,840 | 10,425 |
Receivable related to lease assignment | 0 | 6,853 |
Other current assets | 3,284 | 3,912 |
Total other current assets | $ 34,095 | $ 35,679 |
SUPPLEMENTAL FINANCIAL INFORM_6
SUPPLEMENTAL FINANCIAL INFORMATION - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Liability related to lease assignment | $ 869 | $ 8,969 |
Acquisition-related holdback cash and shares | 0 | 18,864 |
Accrued liabilities | 13,586 | 9,444 |
Total other current liabilities | $ 14,455 | $ 37,277 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Retained earnings | $ 160,504 | $ 190,731 | $ 249,390 | $ 218,774 |
Accumulated Deficit | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Retained earnings | (591,055) | (422,670) | (250,302) | (201,464) |
Cumulative Effect, Period of Adoption, Adjustment | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Retained earnings | (2,800) | 39,901 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Retained earnings | (2,800) | $ 39,901 | ||
Total Allowance for Doubtful Accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | 3,106 | 864 | 904 | |
Additions Charged to Expenses | 7,374 | 3,067 | 1,115 | |
Deductions | (2,302) | (825) | (1,155) | |
Balance at End of Year | $ 8,178 | $ 3,106 | $ 864 |