Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38312 | |
Entity Registrant Name | 8x8, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0142404 | |
Entity Address, Address Line One | 675 Creekside Way | |
Entity Address, City or Town | Campbell | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95008 | |
City Area Code | 408 | |
Local Phone Number | 727-1885 | |
Title of 12(b) Security | COMMON STOCK, PAR VALUE $.001 PER SHARE | |
Trading Symbol | EGHT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 112,033,014 | |
Entity Central Index Key | 0001023731 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 109,288 | $ 112,531 |
Restricted cash, current | 8,179 | 8,179 |
Short-term investments | 31,231 | 40,337 |
Accounts receivable, net | 49,755 | 51,150 |
Deferred sales commission costs, current | 31,711 | 30,241 |
Other current assets | 36,066 | 34,095 |
Total current assets | 266,230 | 276,533 |
Property and equipment, net | 90,776 | 93,076 |
Operating lease, right-of-use assets | 63,402 | 66,664 |
Intangible assets, net | 15,845 | 17,130 |
Goodwill | 131,599 | 131,520 |
Restricted cash, non-current | 462 | 462 |
Long-term investments | 12,712 | 0 |
Deferred sales commission costs, non-current | 74,394 | 72,427 |
Other assets | 20,238 | 20,597 |
Total assets | 675,658 | 678,409 |
Current liabilities: | ||
Accounts payable | 33,233 | 31,236 |
Accrued compensation | 27,876 | 29,879 |
Accrued taxes | 11,321 | 12,129 |
Operating lease liabilities, current | 12,792 | 12,942 |
Deferred revenue, current | 21,985 | 20,737 |
Other accrued liabilities | 13,995 | 14,455 |
Total current liabilities | 121,202 | 121,378 |
Operating lease liabilities, non-current | 79,403 | 82,456 |
Convertible senior notes, net | 312,828 | 308,435 |
Other liabilities, non-current | 5,429 | 5,636 |
Total liabilities | 518,862 | 517,905 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Common stock | 111 | 109 |
Additional paid-in capital | 795,589 | 755,643 |
Accumulated other comprehensive loss | (3,943) | (4,193) |
Accumulated deficit | (634,961) | (591,055) |
Total stockholders' equity | 156,796 | 160,504 |
Total liabilities and stockholders' equity | $ 675,658 | $ 678,409 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Total revenue | $ 148,327 | $ 121,807 |
Operating Expenses [Abstract] | ||
Research and development | 25,392 | 21,494 |
Sales and marketing | 75,915 | 60,150 |
General and administrative | 26,091 | 25,790 |
Total operating expenses | 187,154 | 159,567 |
Loss from operations | (38,827) | (37,760) |
Other expense, net | (4,823) | (3,925) |
Loss before provision for income taxes | (43,650) | (41,685) |
Provision for income taxes | 256 | 228 |
Net loss | $ (43,906) | $ (41,913) |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.40) | $ (0.40) |
Diluted (in dollars per share) | $ (0.40) | $ (0.40) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 109,925 | 103,607 |
Diluted (in shares) | 109,925 | 103,607 |
Service | ||
Total revenue | $ 137,796 | $ 114,183 |
Operating Expenses [Abstract] | ||
Cost of revenue | 46,010 | 40,996 |
Other | ||
Total revenue | 10,531 | 7,624 |
Operating Expenses [Abstract] | ||
Cost of revenue | $ 13,746 | $ 11,137 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (43,906) | $ (41,913) |
Other comprehensive income (loss), net of tax | ||
Unrealized (loss) gain on investments in securities | (33) | 422 |
Foreign currency translation adjustment | 283 | 885 |
Comprehensive loss | $ (43,656) | $ (40,606) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Cumulative effect, period of adoption, adjustment | Cumulative effect, period of adoption, adjustmentAccumulated Deficit |
Beginning balance (in shares) at Mar. 31, 2020 | 103,179,000 | ||||||
Beginning balance at Mar. 31, 2020 | $ 190,731 | $ 103 | $ 625,474 | $ (12,176) | $ (422,670) | $ (2,800) | $ (2,800) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plans, less withholding (in shares) | 688,000 | ||||||
Issuance of common stock under stock plans, less withholding | (66) | $ 1 | (67) | ||||
Stock-based compensation expense | 23,118 | 23,118 | |||||
Issuance of common stock related to acquisition | 8,489 | 8,489 | |||||
Unrealized investment gain | 422 | 422 | |||||
Foreign currency translation adjustment | 885 | 885 | |||||
Net loss | (41,913) | (41,913) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 103,867,000 | ||||||
Ending balance at Jun. 30, 2020 | 178,866 | $ 104 | 657,014 | (10,869) | (467,383) | ||
Beginning balance (in shares) at Mar. 31, 2021 | 109,135,000 | ||||||
Beginning balance at Mar. 31, 2021 | 160,504 | $ 109 | 755,643 | (4,193) | (591,055) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plans, less withholding (in shares) | 1,562,000 | ||||||
Issuance of common stock under stock plans, less withholding | 3,440 | $ 2 | 3,438 | ||||
Stock-based compensation expense | 36,508 | 36,508 | |||||
Unrealized investment gain | (33) | (33) | |||||
Foreign currency translation adjustment | 283 | 283 | |||||
Net loss | (43,906) | (43,906) | |||||
Ending balance (in shares) at Jun. 30, 2021 | 110,697,000 | ||||||
Ending balance at Jun. 30, 2021 | $ 156,796 | $ 111 | $ 795,589 | $ (3,943) | $ (634,961) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (43,906) | $ (41,913) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 2,922 | 2,823 |
Amortization of intangible assets | 1,285 | 2,228 |
Amortization of capitalized internal-use software costs | 7,243 | 6,217 |
Amortization of debt discount and issuance costs | 4,393 | 4,126 |
Amortization of deferred sales commission costs | 8,245 | 6,138 |
Allowance for credit losses | 383 | 1,742 |
Operating lease expense, net of accretion | 3,459 | 3,750 |
Stock-based compensation expense | 36,587 | 22,779 |
Other | 713 | 602 |
Changes in assets and liabilities: | ||
Accounts receivable | 924 | (3,428) |
Deferred sales commission costs | (11,615) | (13,186) |
Other current and non-current assets | (2,550) | (3,025) |
Accounts payable and accruals | (5,063) | (519) |
Deferred revenue | 1,012 | 2,416 |
Net cash provided by (used in) operating activities | 4,032 | (9,250) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (878) | (2,453) |
Capitalized internal-use software costs | (6,546) | (8,866) |
Purchases of investments | (28,721) | (17,156) |
Sales of investments | 10,299 | 0 |
Proceeds from maturities of investments | 14,700 | 16,575 |
Net cash used in investing activities | (11,146) | (11,900) |
Cash flows from financing activities: | ||
Finance lease payments | (4) | (67) |
Tax-related withholding of common stock | (99) | (69) |
Proceeds from issuance of common stock under employee stock plans | 3,538 | 2 |
Net cash provided (used in) by financing activities | 3,435 | (134) |
Effects of currency exchange rates on cash, cash equivalent, and restricted cash | 436 | 580 |
Net decrease in cash, cash equivalents, and restricted cash | (3,243) | (20,704) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 121,172 | 156,411 |
Cash, cash equivalents, and restricted cash at the end of the period | 117,929 | 135,707 |
Supplemental information: | ||
Cash paid for income taxes | 337 | 165 |
Reconciliation Of Cash Cash Equivalents And Restricted Cash [Abstract] | ||
Cash and cash equivalents | 109,288 | 116,690 |
Restricted cash, current | 8,179 | 10,376 |
Restricted cash, non-current | 462 | 8,641 |
Total cash, cash equivalents, and restricted cash | $ 117,929 | $ 135,707 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS 8x8, Inc. ("8x8" or the "Company") was incorporated in California in February 1987, and was reincorporated in Delaware in December 1996. The Company is a leading 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 complementary to the delivery of our integrated technology platform. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND CONSOLIDATION The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in our annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2021, and notes thereto included in the Company's fiscal 2021 Annual Report on Form 10-K ("Form 10-K"). There were no material changes during the three months ended June 30, 2021, to our significant accounting policies as described in the Company's Form 10-K for the fiscal year ended March 31, 2021. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations, and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2022. USE OF ESTIMATES The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, and disclosure of contingent assets and liabilities at the reporting date. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to allowance for credit losses, reserve for expected customer credits or cancellations, fair value of and/or evaluation for impairment of goodwill and other long-lived assets, capitalization of internally developed software, benefit period for deferred sales commission costs, stock-based compensation expense, discount rate used to calculate operating lease liabilities, income and sales tax liabilities, fair value of convertible senior notes, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhanced and simplified 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 was effective for public companies with fiscal years beginning after December 15, 2020, which is fiscal 2022 for the Company. The adoption of this guidance in the first quarter of the Company's fiscal 2022 did not have a material impact on the Company's financial statements. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies accounting for convertible instruments by eliminating two of the three accounting models available for convertible debt instruments and convertible preferred stock. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation. The guidance is effective for fiscal years beginning after December 15, 2021, which is fiscal 2023 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 12. Geographical Information. Contract Balances The following table provides amounts of receivables, contract assets, and deferred revenues from contracts with customers: June 30, 2021 March 31, 2021 Accounts receivable, net $ 49,755 $ 51,150 Contract assets, current $ 12,324 $ 12,840 Contract assets, non-current $ 18,269 $ 17,987 Deferred revenue, current $ 21,985 $ 20,737 Deferred revenue, non-current $ 2,813 $ 2,999 Contract assets, current, contract assets, non-current, and deferred revenue, non-current are recorded on the Condensed Consolidated Balance Sheets in Other current assets , Other assets , and Other liabilities, non-current , respectively. Contract assets represent recognition of revenue that has not yet been billed; the net decrease in contract assets was primarily driven by the billing of revenue previously recognized. The net increase in deferred revenue was due to billings in advance of performance obligations being satisfied. During the three months ended June 30, 2021, the Company recognized revenues of approximately $7.6 million, which was included in the deferred revenue balance at the beginning of the period. Remaining Performance Obligations The Company's subscription terms typically range from one Deferred Sales Commission Costs Amortization of deferred sales commission costs for the three months ended June 30, 2021 and 2020, was $8.2 million and $6.1 million, respectively. There were no material write-offs of deferred sales commission costs during the three months ended June 30, 2021 and 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tablse presents estimated fair values of cash, cash equivalents, restricted cash, and available-for-sale investments: June 30, 2021 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 39,480 $ — $ — $ 39,480 $ 39,480 $ — $ — $ — Level 1: Money market funds 67,108 — — 67,108 67,108 — — — Subtotal 106,588 — — 106,588 106,588 — — — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Municipal bonds 700 — — 700 700 — — — Commercial paper 15,120 2 — 15,122 2,000 — 13,122 — Corporate debt 30,796 30 (5) 30,821 — — 18,109 12,712 Subtotal 55,257 32 (5) 55,284 2,700 8,641 31,231 12,712 Total assets $ 161,845 $ 32 $ (5) $ 161,872 $ 109,288 $ 8,641 $ 31,231 $ 12,712 March 31, 2021 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments 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 $ — Certificates of deposit represent the Company's letters of credit securing leases for office facilities, the balances of which are included in Restricted cash, current and Restricted cash, non-current on the Company's Condensed Consolidated Balance Sheets. 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 June 30, 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 bases. 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 June 30, 2021, the Company did not have any risk of expected credit losses on its investments. As of June 30, 2021 and March 31, 2021, the estimated fair value of the Company's outstanding convertible senior notes ("Notes") was $450.7 million and $502.9 million, respectively, which was determined based on the closing price for the Notes on the last trading day of the reporting period and is categorized within Level 2 of the fair value hierarchy due to limited trading activity of the Notes. See Note 8, Convertible Senior Notes and Capped Call . |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Jun. 30, 2021 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets The carrying value of intangible assets consisted of the following: June 30, 2021 March 31, 2021 Gross Accumulated Net Gross Accumulated Net Developed technology $ 27,231 $ (15,793) $ 11,438 $ 33,960 $ (21,458) $ 12,502 Customer relationships 6,428 (2,021) 4,407 11,969 (7,341) 4,628 Trade and domain names 83 (83) — 988 (988) — Total acquired identifiable intangible assets $ 33,742 $ (17,897) $ 15,845 $ 46,917 $ (29,787) $ 17,130 During the three months ended June 30, 2021, the Company determined certain of its fully amortized intangible assets were no longer in use. As a result, the Company wrote off $6.7 million in gross carrying value of developed technology, $5.5 million of customer relationships, and $0.9 million of trade and domain names. Such intangibles had been fully amortized in prior periods, thus there was no net impact to the Company's financial statements. As of June 30, 2021, the weighted average remaining useful life of developed technology and customer relationships was 4.4 years and 5.0 years, respectively. As of June 30, 2021, the expected future amortization expense of the intangible assets was as follows: Remainder of fiscal 2022 $ 4,388 Fiscal 2023 2,904 Fiscal 2024 2,851 Fiscal 2025 2,851 Fiscal 2026 2,851 Thereafter — Total $ 15,845 Goodwill The following table provides a summary of the change in the carrying amount of goodwill: Balance at March 31, 2021 $ 131,520 Foreign currency translation adjustments 79 Balance at June 30, 2021 $ 131,599 |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Operating Leases The following table provides balance sheet information related to the Company's operating leases: June 30, 2021 March 31, 2021 Assets Operating lease, right-of-use assets $ 63,402 $ 66,664 Liabilities Operating lease liabilities, current $ 12,792 $ 12,942 Operating lease liabilities, non-current 79,403 82,456 Total operating lease liabilities $ 92,195 $ 95,398 The following table presents the components of lease expense and cash outflows from operating leases: Three Months Ended June 30, 2021 2020 Operating lease expense $ 3,459 $ 3,750 Variable lease expense $ 750 $ 782 Cash outflows from operating leases $ 4,200 $ 2,054 Short-term lease expense was immaterial for the three months ended June 30, 2021 and 2020. The following table presents supplemental lease information: June 30, 2021 March 31, 2021 Weighted average remaining lease term 8.2 years 8.4 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 June 30, 2021: Remainder of fiscal 2022 $ 12,175 Fiscal 2023 15,170 Fiscal 2024 11,851 Fiscal 2025 11,514 Fiscal 2026 10,513 Thereafter 47,693 Total lease payments 108,916 Less: imputed interest (16,721) Present value of lease liabilities $ 92,195 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 June 30, 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 |
CONVERTIBLE SENIOR NOTES AND CA
CONVERTIBLE SENIOR NOTES AND CAPPED CALLS | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES AND CAPPED CALLS | CONVERTIBLE SENIOR NOTES AND CAPPED CALLS 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 $75.0 million aggregate principal amount of 0.50% convertible senior notes (the "Additional Notes" and together with the Initial Notes, the "Notes") due 2024 in a registered offering under the same indenture as the Initial Notes. The total net proceeds from the Additional Notes, after deducting underwriting discounts, debt issuance costs and costs of the capped call transactions described below, were approximately $64.6 million. The Additional Notes constitute a further issuance of, and form a single series with, the 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 three months ended June 30, 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. The following table presents the net carrying amount of the liability component of the Notes: June 30, 2021 March 31, 2021 Principal $ 362,500 $ 362,500 Unamortized debt discount (48,990) (53,323) Unamortized issuance costs (682) (742) Net carrying amount $ 312,828 $ 308,435 The following table presents interest expense related to the Notes: Three Months Ended June 30, 2021 2020 Contractual interest expense $ 453 $ 453 Amortization of debt discount 4,332 4,068 Amortization of issuance costs 61 57 Total interest expense $ 4,846 $ 4,578 Capped Call |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table presents stock-based compensation expense: Three Months Ended June 30, 2021 2020 Cost of service revenue $ 1,968 $ 1,814 Cost of other revenue 1,071 787 Research and development 8,698 6,545 Sales and marketing 14,326 5,739 General and administrative 10,524 7,894 Total $ 36,587 $ 22,779 Stock Options The following table presents stock option activity ( shares in thousands ): Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2021 1,813 $ 9.46 2.86 years $ 41,673 Granted — — Exercised (391) 9.04 Canceled/Forfeited (9) 21.85 Outstanding at June 30, 2021 1,413 $ 9.50 2.61 years $ 25,806 Vested and expected to vest at June 30, 2021 1,411 $ 9.48 2.60 years $ 25,788 Exercisable at June 30, 2021 1,373 $ 9.19 2.48 years $ 25,498 The total intrinsic value of options exercised during the three months ended June 30, 2021 and 2020, was $9.1 million and less than $0.1 million, respectively. As of June 30, 2021, there was $0.3 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average period of approximately 0.9 years. Restricted Stock Units (RSUs) The following table presents RSU activity ( shares in thousands ): Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2021 8,646 $ 19.27 1.85 years $ 280,467 Granted 3,466 26.36 Vested and released (969) 20.07 Forfeited (317) 19.71 Outstanding at June 30, 2021 10,826 $ 21.45 2.05 years $ 300,524 As of June 30, 2021, there was $165.1 million of total unrecognized compensation cost related to RSUs. Performance Stock Units (PSUs) The Company has granted PSUs to certain of its executives with vesting that is contingent on continued service and either Company or market performance. PSUs issued in June 2021 consist of three tranches: the first tranche vests on the 1st anniversary and is based on the Non-GAAP Gross Profit of the Company; the remaining two tranches vest on the 2nd and 3rd anniversaries, respectively, and are based on the Total Shareholder Return ("TSR") of the Company, as measured relative to a specified market index during the specified periods. For the first tranche, a range of 90% to 110% attainment of the target Non-GAAP Gross Profit over the vesting period will result in a range from 0% to 200% of the target number of shares being earned. For the awards based on TSR, a 2x multiplier will be applied for each percentage point of positive or negative relative TSR over the specified vesting periods, such that the number of shares of common stock earned will increase or decrease by 2% of the target number of shares, subject to a maximum of 200% of the target number of shares. In the event that the Company’s relative TSR performance is less than negative 30%, relative to the specified index, no shares will be earned for the applicable performance period. The amount of compensation expense is based on how many shares are probable to be earned for the applicable performance period. The first tranche was valued at $25.78 per share based on the closing price of the Company's common stock on the grant date. The second and third tranches were valued at $33.32 and $34.48, respectively, per share as determined by Monte Carlo simulations using a volatility factor of 58.7% and a risk-free rate of 0.3%. The following table presents PSU activity ( shares in thousands ): Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2021 1,576 $ 27.33 1.24 years $ 51,116 Granted 465 27.92 Granted for performance achievement 1 20 27.92 Vested and released (206) 16.12 Forfeited (198) 24.61 Outstanding at June 30, 2021 1,657 $ 30.56 1.43 years $ 46,012 1 Represents additional PSUs awarded as a result of the achievement of performance goals above the performance targets established at grant. As of June 30, 2021, there was $32.3 million of total unrecognized compensation cost related to PSUs. Employee Stock Purchase Plan (ESPP) As of June 30, 2021, there was approximately $0.6 million of unrecognized cost related to employee stock purchases. This cost is expected to be recognized over a weighted average period of 0.1 years. As of June 30, 2021, a total of 2,865,669 shares were available for issuance under the ESPP. Salary and Bonus Stock Program In March 2021, the Company offered its employees an opportunity to receive a portion of their base cash salary and/or cash bonus for fiscal 2022 in shares of the Company's common stock. Participants that choose to receive stock in place of base cash salary will be subject to reduced cash payroll starting July 2021 through March 2022. The number of shares received by the employee is based on the lower of the closing price of the common stock as of one of two specified look-back dates. The estimated fair value of the shares issued has two components: 1) the value of the base cash salary and/or cash bonus opted to be received as shares, and 2) the grant date fair value of the look-back feature. The estimated fair value of the stock awards will be recognized in stock based compensation expense over the requisite service period of the participants, which may differ from the period in which their original cash compensation is earned. The look-back features are valued as options using the Black-Scholes model, applied to the total number of shares would have been granted under the program based on the closing price of our common stock on the grant date. The following table presents the estimated fair value on the date of grant of each of the look-back features and the assumptions used in the Black-Scholes pricing model: Fair value of look-back options $4.64 - $8.24 Valuation assumptions: Expected volatility 58.7% Risk-free interest rates 0.06 % - 0.07% Expected terms (in years) 0.38 - 1.21 Dividend rate —% The risk-free rates were determined based on published treasury rates over terms consistent with those of the share exchange program. The volatility rate was determined based on historic volatility of the Company's stock and is consistent with the rate used for valuation of the PSU awards granted in June 2021. As of June 30, 2021, there was $8.8 million of total unrecognized compensation cost related to the stock exchange program. Stock Repurchases |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective tax rate was (0.6)% and (0.5)% for the three months ended June 30, 2021 and 2020, respectively. The difference in the effective tax rate and the U.S. federal statutory rate was primarily due to the full valuation allowance the Company maintains against its deferred tax assets. The effective tax rate is calculated by dividing the Provision for income taxes by the Loss before provision for income taxes |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following table presents 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 ): Three Months Ended June 30, 2021 2020 Net loss $ (43,906) $ (41,913) Weighted average common shares outstanding - basic and diluted 109,925 103,607 Net loss per share: Basic and diluted $ (0.40) $ (0.40) 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 ): Three Months Ended June 30, 2021 2020 Stock options 1,413 2,259 Restricted stock units 12,483 9,443 Potential shares attributable to the ESPP 444 582 Total potential anti-dilutive shares 14,340 12,284 |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | GEOGRAPHICAL INFORMATION The following tables present information by geographic area: Three Months Ended June 30, Revenue by geographic area: 2021 2020 United States $ 103,658 $ 93,244 International 44,669 28,563 Total revenue $ 148,327 $ 121,807 Property and equipment by geographic area: June 30, 2021 March 31, 2021 United States $ 85,928 $ 87,945 International 4,848 5,131 Total property and equipment, net $ 90,776 $ 93,076 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and disclosures normally included in our annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended March 31, 2021, and notes thereto included in the Company's fiscal 2021 Annual Report on Form 10-K ("Form 10-K"). There were no material changes during the three months ended June 30, 2021, to our significant accounting policies as described in the Company's Form 10-K for the fiscal year ended March 31, 2021. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company conducts its operations through one reportable segment. In the opinion of the Company's management, these condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations, and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending March 31, 2022. |
Use of Estimates | The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity, and disclosure of contingent assets and liabilities at the reporting date. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to allowance for credit losses, reserve for expected customer credits or cancellations, fair value of and/or evaluation for impairment of goodwill and other long-lived assets, capitalization of internally developed software, benefit period for deferred sales commission costs, stock-based compensation expense, discount rate used to calculate operating lease liabilities, income and sales tax liabilities, fair value of convertible senior notes, litigation, and other contingencies. The Company bases its estimates on known facts and circumstances, historical experience, and various other assumptions. Actual results could differ from those estimates under different assumptions or conditions. |
Recently Adopted Accounting Pronouncements, Recent Accounting Pronouncements Not Yet Adopted | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which enhanced and simplified 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 was effective for public companies with fiscal years beginning after December 15, 2020, which is fiscal 2022 for the Company. The adoption of this guidance in the first quarter of the Company's fiscal 2022 did not have a material impact on the Company's financial statements. RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies accounting for convertible instruments by eliminating two of the three accounting models available for convertible debt instruments and convertible preferred stock. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation. The guidance is effective for fiscal years beginning after December 15, 2021, which is fiscal 2023 for the Company; early adoption is permitted. The Company is currently assessing the impact of this pronouncement to its consolidated financial statements. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Balances | The following table provides amounts of receivables, contract assets, and deferred revenues from contracts with customers: June 30, 2021 March 31, 2021 Accounts receivable, net $ 49,755 $ 51,150 Contract assets, current $ 12,324 $ 12,840 Contract assets, non-current $ 18,269 $ 17,987 Deferred revenue, current $ 21,985 $ 20,737 Deferred revenue, non-current $ 2,813 $ 2,999 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | cash, cash equivalents, restricted cash, and available-for-sale investments: June 30, 2021 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments Cash $ 39,480 $ — $ — $ 39,480 $ 39,480 $ — $ — $ — Level 1: Money market funds 67,108 — — 67,108 67,108 — — — Subtotal 106,588 — — 106,588 106,588 — — — Level 2: Certificate of deposit 8,641 — — 8,641 — 8,641 — — Municipal bonds 700 — — 700 700 — — — Commercial paper 15,120 2 — 15,122 2,000 — 13,122 — Corporate debt 30,796 30 (5) 30,821 — — 18,109 12,712 Subtotal 55,257 32 (5) 55,284 2,700 8,641 31,231 12,712 Total assets $ 161,845 $ 32 $ (5) $ 161,872 $ 109,288 $ 8,641 $ 31,231 $ 12,712 March 31, 2021 Amortized Costs Gross Gross Estimated Fair Value Cash and Restricted Cash (Current & Non-Current) Short-Term Investments Long-Term Investments 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 $ — |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Schedule of Carrying Value of Intangible Assets | The carrying value of intangible assets consisted of the following: June 30, 2021 March 31, 2021 Gross Accumulated Net Gross Accumulated Net Developed technology $ 27,231 $ (15,793) $ 11,438 $ 33,960 $ (21,458) $ 12,502 Customer relationships 6,428 (2,021) 4,407 11,969 (7,341) 4,628 Trade and domain names 83 (83) — 988 (988) — Total acquired identifiable intangible assets $ 33,742 $ (17,897) $ 15,845 $ 46,917 $ (29,787) $ 17,130 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of June 30, 2021, the expected future amortization expense of the intangible assets was as follows: Remainder of fiscal 2022 $ 4,388 Fiscal 2023 2,904 Fiscal 2024 2,851 Fiscal 2025 2,851 Fiscal 2026 2,851 Thereafter — Total $ 15,845 |
Schedule of Goodwill | The following table provides a summary of the change in the carrying amount of goodwill: Balance at March 31, 2021 $ 131,520 Foreign currency translation adjustments 79 Balance at June 30, 2021 $ 131,599 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Leases | The following table provides balance sheet information related to the Company's operating leases: June 30, 2021 March 31, 2021 Assets Operating lease, right-of-use assets $ 63,402 $ 66,664 Liabilities Operating lease liabilities, current $ 12,792 $ 12,942 Operating lease liabilities, non-current 79,403 82,456 Total operating lease liabilities $ 92,195 $ 95,398 |
Schedule of Lease, Cost | The following table presents the components of lease expense and cash outflows from operating leases: Three Months Ended June 30, 2021 2020 Operating lease expense $ 3,459 $ 3,750 Variable lease expense $ 750 $ 782 Cash outflows from operating leases $ 4,200 $ 2,054 The following table presents supplemental lease information: June 30, 2021 March 31, 2021 Weighted average remaining lease term 8.2 years 8.4 years Weighted average discount rate 4.0% 4.0% |
Schedule of Lessee, Operating Leases, Liability, Maturity | The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of June 30, 2021: Remainder of fiscal 2022 $ 12,175 Fiscal 2023 15,170 Fiscal 2024 11,851 Fiscal 2025 11,514 Fiscal 2026 10,513 Thereafter 47,693 Total lease payments 108,916 Less: imputed interest (16,721) Present value of lease liabilities $ 92,195 |
CONVERTIBLE SENIOR NOTES AND _2
CONVERTIBLE SENIOR NOTES AND CAPPED CALLS (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | The following table presents the net carrying amount of the liability component of the Notes: June 30, 2021 March 31, 2021 Principal $ 362,500 $ 362,500 Unamortized debt discount (48,990) (53,323) Unamortized issuance costs (682) (742) Net carrying amount $ 312,828 $ 308,435 |
Schedule of Interest Income and Interest Expense Disclosure | The following table presents interest expense related to the Notes: Three Months Ended June 30, 2021 2020 Contractual interest expense $ 453 $ 453 Amortization of debt discount 4,332 4,068 Amortization of issuance costs 61 57 Total interest expense $ 4,846 $ 4,578 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents stock-based compensation expense: Three Months Ended June 30, 2021 2020 Cost of service revenue $ 1,968 $ 1,814 Cost of other revenue 1,071 787 Research and development 8,698 6,545 Sales and marketing 14,326 5,739 General and administrative 10,524 7,894 Total $ 36,587 $ 22,779 |
Schedule of Stock Option Activity | The following table presents stock option activity ( shares in thousands ): Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2021 1,813 $ 9.46 2.86 years $ 41,673 Granted — — Exercised (391) 9.04 Canceled/Forfeited (9) 21.85 Outstanding at June 30, 2021 1,413 $ 9.50 2.61 years $ 25,806 Vested and expected to vest at June 30, 2021 1,411 $ 9.48 2.60 years $ 25,788 Exercisable at June 30, 2021 1,373 $ 9.19 2.48 years $ 25,498 |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | The following table presents RSU activity ( shares in thousands ): Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2021 8,646 $ 19.27 1.85 years $ 280,467 Granted 3,466 26.36 Vested and released (969) 20.07 Forfeited (317) 19.71 Outstanding at June 30, 2021 10,826 $ 21.45 2.05 years $ 300,524 The following table presents PSU activity ( shares in thousands ): Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2021 1,576 $ 27.33 1.24 years $ 51,116 Granted 465 27.92 Granted for performance achievement 1 20 27.92 Vested and released (206) 16.12 Forfeited (198) 24.61 Outstanding at June 30, 2021 1,657 $ 30.56 1.43 years $ 46,012 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table presents the estimated fair value on the date of grant of each of the look-back features and the assumptions used in the Black-Scholes pricing model: Fair value of look-back options $4.64 - $8.24 Valuation assumptions: Expected volatility 58.7% Risk-free interest rates 0.06 % - 0.07% Expected terms (in years) 0.38 - 1.21 Dividend rate —% |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended June 30, 2021 2020 Net loss $ (43,906) $ (41,913) Weighted average common shares outstanding - basic and diluted 109,925 103,607 Net loss per share: Basic and diluted $ (0.40) $ (0.40) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended June 30, 2021 2020 Stock options 1,413 2,259 Restricted stock units 12,483 9,443 Potential shares attributable to the ESPP 444 582 Total potential anti-dilutive shares 14,340 12,284 |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present information by geographic area: Three Months Ended June 30, Revenue by geographic area: 2021 2020 United States $ 103,658 $ 93,244 International 44,669 28,563 Total revenue $ 148,327 $ 121,807 Property and equipment by geographic area: June 30, 2021 March 31, 2021 United States $ 85,928 $ 87,945 International 4,848 5,131 Total property and equipment, net $ 90,776 $ 93,076 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 49,755 | $ 51,150 |
Contract assets, current | 12,324 | 12,840 |
Contract assets, non-current | 18,269 | 17,987 |
Deferred revenue, current | 21,985 | 20,737 |
Deferred revenue, non-current | $ 2,813 | $ 2,999 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, revenue recognized | $ 7,600 | |
Amortization of deferred sales commission costs | $ 8,245 | $ 6,138 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligation (Details) $ in Millions | 3 Months Ended |
Jun. 30, 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]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 530 |
Revenue, remaining performance obligation, percentage | 75.00% |
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 | 25.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | $ 109,288 | $ 112,531 | $ 116,690 |
Accumulated gross unrealized gain, before tax | 32 | 60 | |
Accumulated gross unrealized loss, before tax | (5) | 0 | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 161,845 | 161,449 | |
Cash, cash equivalents and debt securities available-for-sale | 161,872 | 161,509 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accumulated gross unrealized gain, before tax | 0 | 17 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Cash, cash equivalents and debt securities available-for-sale, amortized cost | 106,588 | 112,959 | |
Cash, cash equivalents and debt securities available-for-sale | 106,588 | 112,976 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 55,257 | 48,490 | |
Accumulated gross unrealized gain, before tax | 32 | 43 | |
Accumulated gross unrealized loss, before tax | (5) | 0 | |
Debt securities, available-for-sale | 55,284 | 48,533 | |
Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 39,480 | 39,070 | |
Cash and cash equivalents, fair value | 39,480 | 39,070 | |
Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 67,108 | 67,712 | |
Cash and cash equivalents, fair value | 67,108 | 67,712 | |
Treasury securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 6,177 | ||
Accumulated gross unrealized gain, before tax | 17 | ||
Accumulated gross unrealized loss, before tax | 0 | ||
Debt securities, available-for-sale | 6,194 | ||
Certificate of deposit | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 8,641 | 8,641 | |
Cash and cash equivalents, fair value | 8,641 | 8,641 | |
Municipal bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 700 | ||
Cash and cash equivalents, fair value | 700 | ||
Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 15,120 | 17,656 | |
Accumulated gross unrealized gain, before tax | 2 | 42 | |
Accumulated gross unrealized loss, before tax | 0 | 0 | |
Debt securities, available-for-sale | 15,122 | 17,698 | |
Corporate debt | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized cost | 30,796 | 22,193 | |
Accumulated gross unrealized gain, before tax | 30 | 1 | |
Accumulated gross unrealized loss, before tax | (5) | 0 | |
Debt securities, available-for-sale | 30,821 | 22,194 | |
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 | 109,288 | 112,531 | |
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 | 106,588 | 106,782 | |
Cash and Cash Equivalents | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 2,700 | 5,749 | |
Cash and Cash Equivalents | Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 39,480 | 39,070 | |
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 | 67,108 | 67,712 | |
Cash and Cash Equivalents | Municipal bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 700 | ||
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 | 2,000 | 700 | |
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 | 0 | 5,049 | |
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 | 8,641 | |
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 | 0 | |
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 | 0 | |
Restricted Cash (Current & Non-Current) | Certificate of deposit | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 8,641 | 8,641 | |
Short-Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 31,231 | 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 | 0 | 6,194 | |
Short-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 31,231 | 34,143 | |
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 | ||
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 | 13,122 | 16,998 | |
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 | 18,109 | 17,145 | |
Long-Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash, cash equivalents and debt securities available-for-sale | 12,712 | 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 | 0 | |
Long-Term Investments | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 12,712 | 0 | |
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 | ||
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 | $ 12,712 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 |
Convertible Debt | Initial Notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, fair value | $ 450.7 | $ 502.9 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 33,742 | $ 46,917 |
Accumulated Amortization | (17,897) | (29,787) |
Net Carrying Amount | 15,845 | 17,130 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,231 | 33,960 |
Accumulated Amortization | (15,793) | (21,458) |
Net Carrying Amount | 11,438 | 12,502 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,428 | 11,969 |
Accumulated Amortization | (2,021) | (7,341) |
Net Carrying Amount | 4,407 | 4,628 |
Trade and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 83 | 988 |
Accumulated Amortization | (83) | (988) |
Net Carrying Amount | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Fully amortized intangible asset written off | $ 6.7 |
Finite-lived intangible assets, remaining amortization period | 4 years 4 months 24 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Fully amortized intangible asset written off | $ 5.5 |
Finite-lived intangible assets, remaining amortization period | 5 years |
Trade and domain names | |
Finite-Lived Intangible Assets [Line Items] | |
Fully amortized intangible asset written off | $ 0.9 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
2022 | $ 4,388 | |
2023 | 2,904 | |
2024 | 2,851 | |
2025 | 2,851 | |
2026 | 2,851 | |
Thereafter | 0 | |
Net Carrying Amount | $ 15,845 | $ 17,130 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Summary of Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 131,520 |
Foreign currency translation adjustments | 79 |
Goodwill, ending balance | $ 131,599 |
LEASES - Components of Lease Ri
LEASES - Components of Lease Right-of-Use Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 |
Assets | ||
Operating lease, right-of-use assets | $ 63,402 | $ 66,664 |
Liabilities | ||
Operating lease liabilities, current | 12,792 | 12,942 |
Operating lease liabilities, non-current | 79,403 | 82,456 |
Total operating lease liabilities | $ 92,195 | $ 95,398 |
LEASES - Operating Lease Expens
LEASES - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 3,459 | $ 3,750 |
Variable lease expense | 750 | 782 |
Cash outflows from operating leases | $ 4,200 | $ 2,054 |
LEASES - Supplemental Informati
LEASES - Supplemental Information (Details) | Jun. 30, 2021 | Mar. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term | 8 years 2 months 12 days | 8 years 4 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 | Jun. 30, 2021 | Mar. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 12,175 | |
2023 | 15,170 | |
2024 | 11,851 | |
2025 | 11,514 | |
2026 | 10,513 | |
Thereafter | 47,693 | |
Total lease payments | 108,916 | |
Less: imputed interest | (16,721) | |
Present value of lease liabilities | $ 92,195 | $ 95,398 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 |
State And Local Taxes And Surcharges | ||
Loss Contingencies [Line Items] | ||
Accrued contingent indirect tax liabilities | $ 2.8 | $ 3.1 |
CONVERTIBLE SENIOR NOTES AND _3
CONVERTIBLE SENIOR NOTES AND CAPPED CALLS - Narrative (Details) - Convertible Debt $ / shares in Units, shares in Millions | 1 Months Ended | ||||
Nov. 30, 2019USD ($) | Feb. 28, 2019USD ($)day$ / sharesshares | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 01, 2019USD ($) | |
Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 287,500,000 | ||||
Debt instrument, interest rate | 0.50% | ||||
Proceeds from issuance of debt | $ 245,800,000 | ||||
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% | ||||
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 | ||||
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 | ||||
Aggregate Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 362,500,000 | $ 362,500,000 | $ 362,500,000 | ||
Debt instrument, redemption price, percentage | 100.00% | ||||
Call Option | 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 CALLS - Carrying Amount of the Liability Component (Details) - Convertible Debt - Aggregate Notes - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 01, 2019 |
Debt Instrument [Line Items] | |||
Principal | $ 362,500,000 | $ 362,500,000 | $ 362,500,000 |
Unamortized debt discount | (48,990,000) | (53,323,000) | |
Unamortized issuance costs | (682,000) | (742,000) | |
Net carrying amount | $ 312,828,000 | $ 308,435,000 |
CONVERTIBLE SENIOR NOTES AND _5
CONVERTIBLE SENIOR NOTES AND CAPPED CALLS - Interest Expense (Details) - Convertible Debt - Aggregate Notes - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 453 | $ 453 |
Amortization of debt discount | 4,332 | 4,068 |
Amortization of issuance costs | 61 | 57 |
Total interest expense | $ 4,846 | $ 4,578 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 36,587 | $ 22,779 |
Cost of Sales | Service | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,968 | 1,814 |
Cost of Sales | Other revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,071 | 787 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 8,698 | 6,545 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 14,326 | 5,739 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 10,524 | $ 7,894 |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Mar. 31, 2021 | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | 1,813 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (391) | |
Canceled/Forfeited (in shares) | (9) | |
Outstanding, ending balance (in shares) | 1,813 | |
Vested and expected to vest at June 30, 2021 (in shares) | 1,411 | |
Exercisable at June 30, 2021 (in shares) | 1,373 | |
Weighted Average Exercise Price Per Share | ||
Outstanding, beginning balance (in dollars per share) | $ 9.46 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 9.04 | |
Canceled/Forfeited (in dollars per share) | 21.85 | |
Outstanding, ending balance (in dollars per share) | 9.50 | $ 9.46 |
Vested and expected to vest, ending balance (in dollars per share) | 9.48 | |
Exercisable, end of period (in dollars per share) | $ 9.19 | |
Weighted Average Remaining Contractual Term (in Years) | 2 years 7 months 9 days | 2 years 10 months 9 days |
Vested and expected to vest at June 30, 2021 (in years) | 2 years 7 months 6 days | |
Exercisable at June 30, 2021 (in years) | 2 years 5 months 23 days | |
Options outstanding, Aggregate Intrinsic Value | $ 25,806 | $ 41,673 |
Vested and expected to vest at June 30, 2021, Aggregate Intrinsic Value | 25,788 | |
Exercisable at June 30, 2021, Aggregate Intrinsic Value | $ 25,498 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free rate | 0.30% | |
Number of shares repurchased (in shares) | 0 | 0 |
Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share price (in dollars per share) | $ 25.78 | |
Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share price (in dollars per share) | 33.32 | |
Tranche Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share price (in dollars per share) | $ 34.48 | |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 9.1 | $ 0.1 |
Unrecognized compensation cost | $ 0.3 | |
Weighted average period of recognition for unrecognized compensation expense | 10 months 24 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 32.3 | |
Change in number of shares earned | 2.00% | |
Maximum percentage of awards to be earned | 200.00% | |
Number of shares earned (in shares) | 0 | |
Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting performance period percentage | 0.00% | |
Total shareholder return performance, lowest percentage to still earn awards | (30.00%) | |
Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting performance period percentage | 200.00% | |
Performance Shares | Tranche One | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting performance period percentage | 90.00% | |
Performance Shares | Tranche One | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting performance period percentage | 110.00% | |
Stock Exchange Program | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 8.8 | |
Volatility factors | 58.70% | |
Employee Stock Purchase Plan | Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 0.6 | |
Weighted average period of recognition for unrecognized compensation expense | 1 month 6 days | |
Number of shares reserved for future issuance (in shares) | 2,865,669 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units and Performance Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Mar. 31, 2021 | |
Restricted Stock Units (RSUs) | ||
Number of Shares | ||
Beginning balance (in shares) | 8,646 | |
Granted (in shares) | 3,466 | |
Vested and released (in shares) | (969) | |
Forfeited (in shares) | (317) | |
Ending balance (in shares) | 10,826 | 8,646 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 19.27 | |
Granted (in dollars per share) | 26.36 | |
Vested and released (in dollars per share) | 20.07 | |
Forfeited (in dollars per share) | 19.71 | |
Ending balance (in dollars per share) | $ 21.45 | $ 19.27 |
Weighted Average Remaining Contractual Term (in years) | 2 years 18 days | 1 year 10 months 6 days |
Outstanding balance, Aggregate Intrinsic Value | $ 300,524 | $ 280,467 |
Unamortized stock-based compensation expense | $ 165,100 | |
Performance Shares | ||
Number of Shares | ||
Beginning balance (in shares) | 1,576 | |
Granted (in shares) | 465 | |
Granted for performance achievement (in shares) | 20 | |
Vested and released (in shares) | (206) | |
Forfeited (in shares) | (198) | |
Ending balance (in shares) | 1,657 | 1,576 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 27.33 | |
Granted (in dollars per share) | 27.92 | |
Granted for performance achievement (in dollars per share) | 27.92 | |
Vested and released (in dollars per share) | 16.12 | |
Forfeited (in dollars per share) | 24.61 | |
Ending balance (in dollars per share) | $ 30.56 | $ 27.33 |
Weighted Average Remaining Contractual Term (in years) | 1 year 5 months 4 days | 1 year 2 months 26 days |
Outstanding balance, Aggregate Intrinsic Value | $ 46,012 | $ 51,116 |
Unamortized stock-based compensation expense | $ 32,300 |
STOCK-BASED COMPENSATION - Assu
STOCK-BASED COMPENSATION - Assumptions Used In Black-Scholes Model (Details) - Stock Exchange Program | 3 Months Ended |
Jun. 30, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 58.70% |
Risk-free interest rate, minimum | 0.06% |
Risk-free interest rate, maximum | 0.07% |
Dividend rate | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of look-back options (in dollars per share) | $ 4.64 |
Expected terms (in years) | 4 months 17 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of look-back options (in dollars per share) | $ 8.24 |
Expected terms (in years) | 1 year 2 months 15 days |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (0.60%) | (0.50%) |
NET LOSS PER SHARE - Earnings P
NET LOSS PER SHARE - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (43,906) | $ (41,913) |
Weighted average common shares outstanding - basic (in shares) | 109,925 | 103,607 |
Weighted average common shares outstanding - diluted (in shares) | 109,925 | 103,607 |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.40) | $ (0.40) |
Diluted (in dollars per share) | $ (0.40) | $ (0.40) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential anti-dilutive shares (in shares) | 14,340 | 12,284 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential anti-dilutive shares (in shares) | 1,413 | 2,259 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential anti-dilutive shares (in shares) | 12,483 | 9,443 |
Potential shares attributable to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential anti-dilutive shares (in shares) | 444 | 582 |
GEOGRAPHICAL INFORMATION - (Det
GEOGRAPHICAL INFORMATION - (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 148,327 | $ 121,807 | |
Total property and equipment, net | 90,776 | $ 93,076 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 103,658 | 93,244 | |
Total property and equipment, net | 85,928 | 87,945 | |
International | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 44,669 | $ 28,563 | |
Total property and equipment, net | $ 4,848 | $ 5,131 |