Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2018 | Jul. 30, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | 8X8 INC /DE/ | |
Entity Central Index Key | 1,023,731 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity a Well-known Seasoned Issuer? | Yes | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 93,321,888 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,019 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 34,557 | $ 31,703 |
Short-term investments | 109,903 | 120,559 |
Accounts receivable, net | 17,725 | 16,296 |
Deferred sales commission costs | 12,706 | 0 |
Other current assets | 11,131 | 10,040 |
Total current assets | 186,022 | 178,598 |
Property and equipment, net | 38,100 | 35,732 |
Intangible assets, net | 13,610 | 11,958 |
Goodwill | 39,651 | 40,054 |
Restricted cash | 8,100 | 8,100 |
Deferred sales commission costs, noncurrent | 27,041 | 0 |
Other assets | 3,027 | 2,767 |
Total assets | 315,551 | 277,209 |
Current liabilities: | ||
Accounts payable | 26,900 | 23,899 |
Accrued compensation | 16,366 | 17,412 |
Accrued taxes | 7,930 | 6,367 |
Deferred revenue | 2,838 | 2,559 |
Other accrued liabilities | 6,688 | 6,026 |
Total current liabilities | 60,722 | 56,263 |
Non-current liabilities | 2,987 | 2,172 |
Total liabilities | 63,709 | 58,435 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Common stock | 92 | 93 |
Additional paid-in capital | 435,872 | 425,790 |
Accumulated other comprehensive loss | (7,204) | (5,645) |
Accumulated deficit | (176,918) | (201,464) |
Total stockholders' equity | 251,842 | 218,774 |
Total liabilities and stockholders' equity | $ 315,551 | $ 277,209 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 83,225 | $ 69,098 |
Operating expenses: | ||
Research and development | 13,110 | 7,943 |
Sales and marketing | 53,305 | 41,110 |
General and administrative | 11,433 | 8,956 |
Total operating expenses | 99,208 | 74,555 |
Loss from operations | (15,983) | (5,457) |
Other income, net | 719 | 2,052 |
Loss before provision (benefit) for income taxes | (15,264) | (3,405) |
Provision (benefit) for income taxes | 91 | (1,236) |
Net loss | $ (15,355) | $ (2,169) |
Net loss per share: | ||
Basic | $ (0.16) | $ (0.02) |
Diluted | $ (0.16) | $ (0.02) |
Weighted average number of shares: | ||
Basic | 93,064 | 91,643 |
Diluted | 93,064 | 91,643 |
Service | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 78,121 | $ 65,091 |
Operating expenses: | ||
Cost of Goods and Services Sold | 15,079 | 11,662 |
Product | ||
Revenue from Contract with Customer, Including Assessed Tax | 5,104 | 4,007 |
Operating expenses: | ||
Cost of Goods and Services Sold | $ 6,281 | $ 4,884 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (15,355) | $ (2,169) |
Other comprehensive income (loss), net of tax | ||
Unrealized gain on investments in securities | 113 | 27 |
Foreign currency translation adjustment | (1,672) | 1,791 |
Comprehensive loss | $ (16,914) | $ (351) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (15,355) | $ (2,169) |
Adjustments to reconcile net loss to net cash provided by operating activites: | ||
Depreciation | 2,061 | 1,897 |
Amortization of intangible assets | 1,432 | 1,522 |
Amortization of capitalized software | 1,685 | 308 |
Non-cash lease expenses | 1,200 | 0 |
Stock-based compensation | 8,911 | 6,351 |
Deferred income tax benefit | 0 | (1,492) |
Gain on escrow settlement | 0 | (1,393) |
Other | 372 | 101 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (1,497) | (147) |
Deferred sales commission costs | (1,799) | 0 |
Other current and noncurrent assets | (419) | (1,623) |
Accounts payable and accruals | 3,905 | 2,889 |
Deferred revenue | 293 | (61) |
Net cash provided by operating activities | 789 | 6,183 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,223) | (2,293) |
Purchase of business | (2,625) | 0 |
Proceeds from escrow settlement | 0 | 1,393 |
Cost of capitalized software | (5,112) | (2,122) |
Proceeds from maturity of investments | 18,400 | 25,450 |
Sales of investments - available for sale | 11,914 | 5,252 |
Purchase of investments - available for sale | (19,534) | (21,327) |
Net cash provided by investing activities | 1,820 | 6,353 |
Cash flows from financing activities: | ||
Capital lease payments | (277) | (351) |
Repurchase and withholding of common stock | (229) | (1,054) |
Proceeds from issuance of common stock under employee stock plans | 1,007 | 720 |
Net cash (used in) provided by financing activities | 501 | (685) |
Effect of exchange rate changes on cash | (256) | 294 |
Net increase (decrease) in cash and cash equivalents | 2,854 | 12,145 |
Cash, cash equivalents, and restricted cash at the beginning of the period | 39,803 | 41,030 |
Cash, cash equivalents, and restricted cash at the end of the period | 42,657 | 53,175 |
Supplemental cash flow information | ||
Income taxes paid | 127 | 69 |
Interest paid | 0 | 7 |
Property and equipment acquired under capital leases | $ 0 | $ 765 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Note 1 | 3 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Note 1 | 1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS The Company is a leading provider of enterprise cloud communications solutions, including unified communications, team collaboration, contact center, and analytics, integrated over a single Software-as-a-Service (SaaS) platform. The 8x8 Communications Cloud TM BASIS OF PRESENTATION The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2019 refers to the fiscal year ending March 31, 2019). The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2018, with the exception of new revenue recognition guidance discussed in the recently adopted accounting principles section below. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The March 31, 2018 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. 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, 2018 and notes thereto included in the Company's fiscal 2018 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. ACQUISITION In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million paid at closing and $0.9 million in cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information. PRINCIPLES OF CONSOLIDATION The condensed consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 filed with the SEC on May 30, 2018, and there have been no changes to the Company's significant accounting policies during the three months ended June 30, 2018 except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers: Topic 606 Other Assets and Deferred Costs - Contracts with Customers, RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required with the revenue recognition process than were required under the previous guidance (ASC 605). The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the modified retrospective method, the comparative periods' information is not restated and continues to be reported under the accounting standards in effect in those prior periods. Instead, on April 1, 2018, the Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of accumulated deficit and the corresponding balance sheet accounts, which resulted in a net decrease to accumulated deficit of $39.9 million. The impact on the Company's opening balances primarily relates to the capitalization of additional commission costs under ASC 606 in the amount of $38.2 million. Under ASC 605, the Company expensed all commission costs as incurred. Under the ASC 606, the Company defers all incremental commission costs to obtain the contract and amortizes these costs over a period of benefit of five years. The remaining $1.7 million impact of adopting the standard relates to revenue being recognized earlier under ASC 606 than it would have been under ASC 605. See Note 2 for additional impact and transition disclosures. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB has issued ASU No. 2016-16 , Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In June 2018, the FASB issued 2018-07, Compensation-Stock Compensation (Topic 718) |
REVENUE RECOGNITION - Note 2
REVENUE RECOGNITION - Note 2 | 3 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
REVENUE RECOGNITION - Note 2 | 2. REVENUE RECOGNITION Revenue Recognition under ASC 606 The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions using the five-step model as prescribed by ASC 606: Identification of the contract, or contracts, with a customer; Identification of the performance obligations in the contract; Determination of the transaction price; Allocation of the transaction price to the performance obligations in the contract; and Recognition of revenue when or as, the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount expected to be entitled to in exchange for transferring the promised services or product to the customer. The Transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. The Company usually bills its customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. The Company occasionally allows a 30-day period to cancel a subscription and return products shipped for a full refund. Judgement 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 also imposes minimum revenue commitments (MRC) on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of (MRC) occurring and the collectability of the MRC, of which both represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple service and products, such as subscriptions, product, 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. 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 software subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the subscription is made available to the customer. Payments received in advance of subscription services being rendered are recorded as a deferred revenue. Usage fees, either bundled or not bundled, are recognized when the Company has a right to invoice. Professional services for configuration, system integration, optimization or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, clients may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized over time, generally as customer sites go live. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts at the end of each reporting period based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded against the contract asset (Accounts Receivable). The Company also records reductions to revenue for estimated customer credits at the end of each reporting period. Customer credits are estimated based on current and historical customer trends, and communications with its customers. Product Revenue The Company recognizes product revenue at a point in time, when transfer of control has occurred, which is generally when delivery has occurred. Sales returns are recorded as a reduction to revenue based on historical experience. Contract Assets Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized 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 other current assets in the condensed consolidated balance sheets Deferred Revenue Deferred revenues represent billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding 12-month period are recorded as current deferred revenues in the condensed consolidated balance sheets, with the remainder recorded as other non-current liabilities in the condensed consolidated balance sheets. Costs to Obtain a Customer Contract Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated benefit period, which is five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's condensed consolidated statement of operations. Practical Expedients The Company applies a practical expedient that permits the Company to apply Subtopic 340-40 to a single portfolio of contracts, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio. Adoption Impact of ASC 606 The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the condensed consolidated balance sheet as of April 1, 2018 (in thousands). Adjustments Balance at Due to Balance at March 31, 2018 ASC 606 April 1, 2018 Current assets: Deferred sales commission costs $ - $ 11,234 $ 11,234 Other current assets $ 10,040 $ 1,725 $ 11,765 Non-current assets: Deferred sales commission costs $ - $ 26,942 $ 26,942 Stockholders' Equity Accumulated deficit $ (201,464) $ 39,901 $ (161,563) The following tables summarize the impacts of ASC 606 adoption on the Company's condensed consolidated financial statements for the quarter ended June 30, 2018. Selected Condensed Consolidated Balance Sheet Line Items (in thousands): June 30, 2018 (As Reported) ASC 605 Adjustments ASC 606 Current assets: Deferred sales commission costs $ - $ 12,706 $ 12,706 Other current assets $ 9,434 $ 1,697 $ 11,131 Non-current assets: Deferred sales commission costs $ - $ 27,041 $ 27,041 Stockholders' Equity Accumulated deficit $ (218,362) $ 41,444 $ (176,918) Selected Condensed Consolidated Statement of Operations Line Items (in thousands, except per share amounts): June 30, 2018 (As Reported) ASC 605 Adjustments ASC 606 Service revenue $ 78,242 $ (121) $ 78,121 Product revenue 5,011 93 5,104 Total revenue $ 83,253 $ (28) $ 83,225 Operating expenses: Sales and marketing $ 55,104 $ (1,799) $ 53,305 Loss from operations $ (17,754) $ 1,771 $ (15,983) Net loss $ (17,126) $ 1,771 $ (15,355) Net loss per share: Basic and Diluted $ (0.18) $ 0.02 $ (0.16) Selected Condensed Consolidated Statement of Cash Flows Line Items (in thousands): June 30, 2018 (As Reported) ASC 605 Adjustments ASC 606 Net loss $ (17,126) $ 1,771 $ (15,355) Deferred sales commission costs $ - $ (1,799) $ (1,799) Other current and noncurrent assets $ (447) $ 28 $ (419) Net cash provided by operating activities $ 789 $ - $ 789 Disaggregation of Revenue The Company disaggregates its revenue by geographic region. See Note 10 for more information. Contract Balances The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): June 30, 2018 Accounts receivable, net $ 17,725 Other current assets $ 1,697 Deferred revenue - current $ 2,838 Deferred revenue - noncurrent $ 16 Changes in the contract assets and the deferred revenues balances during the three months ended June 30, 2018 are as follows (in thousands): April 1, 2018 June 30, 2018 $ Change Other current assets $ 1,725 $ 1,697 $ (28) Deferred revenue $ 2,578 $ 2,854 $ 276 The decrease in contract assets was primarily driven by the recognition of revenue that has not yet been billed. The increase in deferred revenues was due to billings in advance of performance obligations being satisfied. During the three months ended June 30, 2018, $1.4 million of revenue recognized was included in the deferred revenues balance at the beginning of the period, which was offset by additional deferrals during the period. Remaining Performance Obligations The Company's subscription terms range from one to three years. Contract revenue as of June 30, 2018, that has not yet been recognized was approximately $130 million. This excludes contracts with an original expected length of one year or less. The Company expects to recognize revenue on the vast majority of the remaining performance obligation over the next 24 months. |
FAIR VALUE MEASUREMENTS - Note
FAIR VALUE MEASUREMENTS - Note 3 | 3 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
FAIR VALUE MEASUREMENTS - Note 3 | 3. FAIR VALUE MEASUREMENTS Cash, cash equivalents, and available-for-sale investments (in thousands): Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of June 30, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 13,051 $ - $ - $ 13,051 $ 13,051 $ - Level 1: Money market funds 21,506 - - 21,506 21,506 - Subtotal 34,557 - - 34,557 34,557 - Level 2: Commercial paper 3,199 - - 3,199 - 3,199 Corporate debt 72,400 12 (221) 72,191 - 72,191 Municipal securities 3,392 1 - 3,393 - 3,393 Asset backed securities 24,552 - (92) 24,460 - 24,460 Agency bond 4,202 - (39) 4,163 - 4,163 International government securities 2,499 - (2) 2,497 - 2,497 Subtotal 110,244 13 (354) 109,903 - 109,903 Total assets $ 144,801 $ 13 $ (354) $ 144,460 $ 34,557 $ 109,903 Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of March 31, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 16,499 $ - $ - $ 16,499 $ 16,499 $ - Level 1: Money market funds 15,204 - - 15,204 15,204 - Subtotal 31,703 - - 31,703 31,703 - Level 2: Commercial paper 13,254 - (8) 13,246 - 13,246 Corporate debt 70,631 6 (296) 70,341 - 70,341 Municipal securities 3,385 3 (1) 3,387 - 3,387 Asset backed securities 27,063 1 (119) 26,945 - 26,945 Agency bond 4,183 - (35) 4,148 - 4,148 International government securities 2,497 - (5) 2,492 - 2,492 Subtotal 121,013 10 (464) 120,559 - 120,559 Total assets $ 152,716 $ 10 $ (464) $ 152,262 $ 31,703 $ 120,559 Contractual maturities of investments as of June 30, 2018 are set forth below (in thousands): Estimated Fair Value Due within one year $ 54,153 Due after one year 55,750 Total $ 109,903 |
INTANGIBLE ASSETS - Note 4
INTANGIBLE ASSETS - Note 4 | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS - Note 4 | 4. INTANGIBLE ASSETS The carrying value of intangible assets consisted of the following (in thousands): June 30, 2018 March 31, 2018 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Technology $ 22,902 $ (11,645) $ 11,257 $ 19,702 $ (10,535) $ 9,167 Customer relationships 9,655 (7,587) 2,068 9,776 (7,366) 2,410 Trade names/domains 2,108 (1,823) 285 2,108 (1,727) 381 In-process research and development 95 (95) - 95 (95) - Total acquired identifiable intangible assets $ 34,760 $ (21,150) $ 13,610 $ 31,681 $ (19,723) $ 11,958 At June 30, 2018, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount Remaining 2019 $ 4,689 2020 4,716 2021 2,554 2022 1,423 2023 228 Total $ 13,610 |
GOODWILL - Note 5
GOODWILL - Note 5 | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL - Note 5 | 5. GOODWILL The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands): Americas Europe Total Balance at March 31, 2018 $ 27,309 $ 12,745 $ 40,054 Additions due to acquisition 300 - 300 Foreign currency translation - (703) (703) Balance at June 30, 2018 $ 27,609 $ 12,042 $ 39,651 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Note 6 | 3 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
COMMITMENTS AND CONTINGENCIES - Note 6 | 6. COMMITMENTS AND CONTINGENCIES Facility and Equipment Leases The Company leases its headquarters in San Jose, California, and also leases office space under non-cancelable operating leases in various domestic and international locations. During the first quarter of fiscal 2019 as it commenced the build-out of its new corporate headquarters, the Company began to record additional straight-line rent expenses. Total rent expense for the three months ended June 30, 2018 and 2017 was $2.6 million and $1.4 million, respectively. Future minimum annual lease payments as of June 30, 2018 were as follows (in thousands): Amount Remaining 2019 $ 4,314 2020 6,622 2021 8,961 2022 8,848 2023 8,353 Thereafter 54,724 Total $ 91,822 The Company has entered into a series of noncancelable capital lease agreements for data center and office equipment bearing interest at various rates. Other Commitments, Indemnifications and Contingencies There were no material changes in our other commitments under contractual obligations, indemnification and other contingencies since March 31, 2018. Legal Proceedings The Company, from time to time, is involved in various legal claims or litigation, including patent infringement claims that can arise in the normal course of the Company's operations. Pending or future litigation could be costly, could cause the diversion of management's attention and could upon resolution, have a material adverse effect on the Company's business, results of operations, financial condition and cash flows. |
STOCK-BASED COMPENSATION - Note
STOCK-BASED COMPENSATION - Note 7 | 3 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
STOCK-BASED COMPENSATION - Note 7 | 7. STOCK-BASED COMPENSATION The following table summarizes information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands, except weighted-average grant-date fair value and recognition period): Three Months Ended June 30, 2018 2017 Cost of service revenue $ 458 $ 391 Cost of product revenue - - Research and development 2,194 1,337 Sales and marketing 3,845 2,647 General and administrative 2,414 1,976 Total $ 8,911 $ 6,351 Three Months Ended June 30, 2018 2017 Stock options outstanding at the beginning of the period: 3,998 4,462 Options granted 81 35 Options exercised (115) (101) Options canceled and forfeited (73) (48) Options outstanding at the end of the period: 3,891 4,348 Weighted-average fair value of grants during the period $ 8.57 $ 4.93 Total intrinsic value of options exercised during the period $ 1,186 $ 792 Weighted-average remaining recognition period at period-end (in years) 2.35 1.92 Stock awards outstanding at the beginning of the period: 5,939 4,950 Stock awards granted 948 370 Stock awards exercised (299) (189) Stock awards canceled and forfeited (168) (128) Stock awards outstanding at the end of the period: 6,420 5,003 Weighted-average fair value of grants during the period $ 22.20 $ 13.50 Weighted-average remaining recognition period at period-end (in years) 2.40 2.45 Total unrecognized compensation expense at period-end $ 67,025 $ 46,171 Stock Repurchases In May 2017, the Company's board of directors authorized the Company to purchase $25.0 million of its common stock from time to time under the 2017 Repurchase Plan (the "2017 Plan"). The 2017 Plan expires when the maximum purchase amount is reached, or upon the earlier revocation or termination by the board of directors. The remaining amount available under the 2017 Plan at June 30, 2018 was approximately $7.1 million. There were no stock repurchases under the 2017 Plan during the three month period ended June 30, 2018. |
INCOME TAXES - Note 8
INCOME TAXES - Note 8 | 3 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
INCOME TAXES - Note 8 | 8. INCOME TAXES The Company's effective tax rate was -0.6% and 36.3% for the three months ended June 30, 2018 and 2017, respectively. The effective tax rate is calculated by dividing the income tax provision by net income before income tax expense. The difference in the effective tax rate and the U.S. federal statutory rate was due primarily to the change in pretax profitability, and geographic mix of profits and losses and the full valuation allowance recorded during fiscal 2018. |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Note 9 | 3 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
NET INCOME (LOSS) PER SHARE - Note 9 | 9. NET INCOME (LOSS) PER SHARE The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, 2018 2017 Numerator: Net loss available to common stockholders $ (15,355) $ (2,169) Denominator: Common shares - basic and diluted 93,064 91,643 Net loss per share Basic $ (0.16) $ (0.02) Diluted $ (0.16) $ (0.02) The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Three Months Ended June 30, 2018 2017 Stock options 3,891 4,348 Stock awards 6,420 5,003 Total anti-dilutive shares 10,311 9,351 |
SEGMENT REPORTING AND GEOGRAPHI
SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION - Note 10 | 3 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING - Note 10 | 10. SEGMENT REPORTING AND GEOGRAPHICAL INFORMATION The Company manages its operations primarily on a geographic basis. The Chief Executive Officer, the Chief Financial Officer, and the Chief Technology Officer or the Company's Chief Operating Decision Makers (CODMs), evaluate performance of the Company and make decisions regarding allocation of resources based on geographic results. The Company's reportable segments are the Americas and Europe. The Americas segment is primarily North America. The Europe segment is primarily the United Kingdom. Each operating segment provides similar products and services. Revenues are attributed to each segment based on the ordering location of the customer or ship to location. The following tables set forth the segment and geographic information for each period (in thousands): Revenue for the Three Months Ended June 30, 2018 2017 Americas (principally US) $ 74,986 $ 62,405 Europe (principally UK) 8,239 6,693 $ 83,225 $ 69,098 Revenue is based upon the destination of shipments and the customers' service address. For the three months ended June 30, 2018 and 2017, intersegment revenues of approximately $6.6 million and $2.5 million, respectively, were eliminated in consolidation, and have been excluded from the table above. Depreciation and Amortization for the Three Months Ended June 30, 2018 2017 Americas (principally US) $ 4,307 $ 2,533 Europe (principally UK) 871 1,194 $ 5,178 $ 3,727 Net Income (Loss) for the Three Months Ended June 30, 2018 2017 Americas (principally US) $ (14,349) $ 409 Europe (principally UK) (1,006) (2,578) $ (15,355) $ (2,169) June 30, 2018 March 31, 2018 Total Property and Total Property and Assets Equipment, net Assets Equipment, net Americas (principally US) $ 271,043 $ 30,293 $ 240,099 $ 27,270 Europe (principally UK) 44,508 7,807 37,110 8,462 $ 315,551 $ 38,100 $ 277,209 $ 35,732 |
ACQUISITIONS - Note 11
ACQUISITIONS - Note 11 | 3 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS - Note 11 | 11. ACQUISITIONS MarianaIQ On April 12, 2018, the Company entered into an Asset Purchase Agreement (the "Agreement") with MarianaIQ Inc. (MarianaIQ) for the purchase of certain assets of MarianaIQ. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million in cash paid to MarianaIQ at closing, and $0.9 million in cash to be held in escrow by the Company for fifteen months, as security against indemnity claims asserted by the Company after the closing date. The escrow amount is recorded as other accrued liabilities on the condensed consolidated balance sheets as of June 30, 2018. The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years. The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years. The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to the acquired workforce. The preliminary fair values of the assets acquired are as follows (in thousands): Fair Value Assets acquired: Intangible assets $ 3,200 Net identifiable assets acquired 3,200 Goodwill 300 Total consideration transferred $ 3,500 MarianaIQ did not contribute to revenue or net loss for the period of acquisition to June 30, 2018. Goodwill recognized upon acquisition is expected to be deductible for income tax purposes and is included in the Americas reporting unit (see Note 5). Total acquisition costs were immaterial. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Fiscal Period | The Company's fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in these notes to the consolidated financial statements refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 2019 refers to the fiscal year ended March 31, 2019). |
Use of Estimates | The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as our annual consolidated financial statements for the fiscal year ended March 31, 2018, with the exception of new revenue recognition guidance discussed in the recently adopted accounting principles section below. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. |
Basis of Presentation | The March 31, 2018 year-end condensed consolidated balance sheet data in this document were derived from audited consolidated financial statements and does not include all of the disclosures required by U.S. generally accepted accounting principles. 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, 2018 and notes thereto included in the Company's fiscal 2018 Annual Report on Form 10-K. The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 filed with the SEC on May 30, 2018, and there have been no changes to the Company's significant accounting policies during the three months ended June 30, 2018 except for the accounting policies described below that were updated as a result of adopting Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers: Topic 606 Other Assets and Deferred Costs - Contracts with Customers, |
Acquisition | ACQUISITION In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million paid at closing and $0.9 million in cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of 8x8 and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Recently Adopted Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, which replaces numerous requirements in U.S. GAAP and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASC 606 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates are required with the revenue recognition process than were required under the previous guidance (ASC 605). The new standard permits the use of either the full retrospective or modified retrospective transition method. The Company adopted the new standard effective April 1, 2018 using the modified retrospective method. Under the modified retrospective method, the comparative periods' information is not restated and continues to be reported under the accounting standards in effect in those prior periods. Instead, on April 1, 2018, the Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of accumulated deficit and the corresponding balance sheet accounts, which resulted in a net decrease to accumulated deficit of $39.9 million. The impact on the Company's opening balances primarily relates to the capitalization of additional commission costs under ASC 606 in the amount of $38.2 million. Under ASC 605, the Company expensed all commission costs as incurred. Under the ASC 606, the Company defers all incremental commission costs to obtain the contract and amortizes these costs over a period of benefit of five years. The remaining $1.7 million impact of adopting the standard relates to revenue being recognized earlier under ASC 606 than it would have been under ASC 605. See Note 2 for additional impact and transition disclosures. In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB has issued ASU No. 2016-16 , Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In June 2018, the FASB issued 2018-07, Compensation-Stock Compensation (Topic 718) |
Revenue recognition | Revenue Recognition under ASC 606 The Company recognizes service revenue, mainly from subscription services to its cloud-based voice, call center, video and collaboration solutions using the five-step model as prescribed by ASC 606: Identification of the contract, or contracts, with a customer; Identification of the performance obligations in the contract; Determination of the transaction price; Allocation of the transaction price to the performance obligations in the contract; and Recognition of revenue when or as, the Company satisfies a performance obligation. The Company identifies performance obligations in contracts with customers, which may include subscription services and related usage, product revenue and professional services. The transaction price is determined based on the amount expected to be entitled to in exchange for transferring the promised services or product to the customer. The Transaction price in the contract is allocated to each distinct performance obligation in an amount that represents the relative amount of consideration expected to be received in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties such as sales and telecommunication taxes, which are collected on behalf of and remitted to governmental authorities. The Company usually bills its customers on a monthly basis. Contracts typically range from annual to multi-year agreements with payment terms of net 30 days or less. The Company occasionally allows a 30-day period to cancel a subscription and return products shipped for a full refund. Judgement 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 also imposes minimum revenue commitments (MRC) on its customers at the inception of the contract. Thus, in estimating variable consideration for each of these performance obligations, the Company assesses both the probability of (MRC) occurring and the collectability of the MRC, of which both represent a form of variable consideration. The Company enters into contracts with customers that regularly include promises to transfer multiple service and products, such as subscriptions, product, 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. 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 software subscriptions to the Company's cloud-based technology platform is recognized over time on a ratable basis over the contractual subscription term beginning on the date that the subscription is made available to the customer. Payments received in advance of subscription services being rendered are recorded as a deferred revenue. Usage fees, either bundled or not bundled, are recognized when the Company has a right to invoice. Professional services for configuration, system integration, optimization or education are primarily billed on a fixed-fee basis and are performed by the Company directly or, alternatively, clients may also choose to perform these services themselves or engage their own third-party service providers. Professional services revenue is recognized over time, generally as customer sites go live. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts at the end of each reporting period based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded against the contract asset (Accounts Receivable). The Company also records reductions to revenue for estimated customer credits at the end of each reporting period. Customer credits are estimated based on current and historical customer trends, and communications with its customers. Product Revenue The Company recognizes product revenue at a point in time, when transfer of control has occurred, which is generally when delivery has occurred. Sales returns are recorded as a reduction to revenue based on historical experience. Contract Assets Contract assets are recorded for those parts of the contract consideration not yet invoiced but for which the performance obligations are completed. The revenue is recognized 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 other current assets in the condensed consolidated balance sheets Deferred Revenue Deferred revenues represent billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of annual plan subscription services and professional and training services not yet provided as of the balance sheet date. Deferred revenues that will be recognized during the succeeding 12-month period are recorded as current deferred revenues in the condensed consolidated balance sheets, with the remainder recorded as other non-current liabilities in the condensed consolidated balance sheets. Costs to Obtain a Customer Contract Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated benefit period, which is five years. The benefit period was estimated by taking into consideration the length of customer contracts, technology lifecycle, and other factors. This amortization expense is recorded in sales and marketing expense within the Company's condensed consolidated statement of operations. Practical Expedients The Company applies a practical expedient that permits the Company to apply Subtopic 340-40 to a single portfolio of contracts, as they are similar in their characteristics, and the financial statement effects of applying Subtopic 340-40 to that portfolio would not differ materially from applying it to the individual contracts within that portfolio. |
Segment Reporting | SEGMENT REPORTING The Company manages its operations primarily on a geographic basis. The Chief Executive Officer, the Chief Financial Officer, and the Chief Technology Officer or the Company's Chief Operating Decision Makers (CODMs), evaluate performance of the Company and make decisions regarding allocation of resources based on geographic results. The Company's reportable segments are the Americas and Europe. The Americas segment is primarily North America. The Europe segment is primarily the United Kingdom. Each operating segment provides similar products and services. Revenues are attributed to each segment based on the ordering location of the customer or ship to location. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition Tables | |
Schedule of impacts of adopting ASC 606 | The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the condensed consolidated balance sheet as of April 1, 2018 (in thousands). Adjustments Balance at Due to Balance at March 31, 2018 ASC 606 April 1, 2018 Current assets: Deferred sales commission costs $ - $ 11,234 $ 11,234 Other current assets $ 10,040 $ 1,725 $ 11,765 Non-current assets: Deferred sales commission costs $ - $ 26,942 $ 26,942 Stockholders' Equity Accumulated deficit $ (201,464) $ 39,901 $ (161,563) The following tables summarize the impacts of ASC 606 adoption on the Company's condensed consolidated financial statements for the quarter ended June 30, 2018. Selected Condensed Consolidated Balance Sheet Line Items (in thousands): June 30, 2018 (As Reported) ASC 605 Adjustments ASC 606 Current assets: Deferred sales commission costs $ - $ 12,706 $ 12,706 Other current assets $ 9,434 $ 1,697 $ 11,131 Non-current assets: Deferred sales commission costs $ - $ 27,041 $ 27,041 Stockholders' Equity Accumulated deficit $ (218,362) $ 41,444 $ (176,918) Selected Condensed Consolidated Statement of Operations Line Items (in thousands, except per share amounts): June 30, 2018 (As Reported) ASC 605 Adjustments ASC 606 Service revenue $ 78,242 $ (121) $ 78,121 Product revenue 5,011 93 5,104 Total revenue $ 83,253 $ (28) $ 83,225 Operating expenses: Sales and marketing $ 55,104 $ (1,799) $ 53,305 Loss from operations $ (17,754) $ 1,771 $ (15,983) Net loss $ (17,126) $ 1,771 $ (15,355) Net loss per share: Basic and Diluted $ (0.18) $ 0.02 $ (0.16) Selected Condensed Consolidated Statement of Cash Flows Line Items (in thousands): June 30, 2018 (As Reported) ASC 605 Adjustments ASC 606 Net loss $ (17,126) $ 1,771 $ (15,355) Deferred sales commission costs $ - $ (1,799) $ (1,799) Other current and noncurrent assets $ (447) $ 28 $ (419) Net cash provided by operating activities $ 789 $ - $ 789 |
Schedule of contract assets and liabilities | The following table provides information about receivables, contract assets and deferred revenues from contracts with customers (in thousands): June 30, 2018 Accounts receivable, net $ 17,725 Other current assets $ 1,697 Deferred revenue - current $ 2,838 Deferred revenue - noncurrent $ 16 Changes in the contract assets and the deferred revenues balances during the three months ended June 30, 2018 are as follows (in thousands): April 1, 2018 June 30, 2018 $ Change Other current assets $ 1,725 $ 1,697 $ (28) Deferred revenue $ 2,578 $ 2,854 $ 276 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements Tables | |
Fair Value Measurements, Recurring and Nonrecurring (Tables) | Cash, cash equivalents, and available-for-sale investments (in thousands): Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of June 30, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 13,051 $ - $ - $ 13,051 $ 13,051 $ - Level 1: Money market funds 21,506 - - 21,506 21,506 - Subtotal 34,557 - - 34,557 34,557 - Level 2: Commercial paper 3,199 - - 3,199 - 3,199 Corporate debt 72,400 12 (221) 72,191 - 72,191 Municipal securities 3,392 1 - 3,393 - 3,393 Asset backed securities 24,552 - (92) 24,460 - 24,460 Agency bond 4,202 - (39) 4,163 - 4,163 International government securities 2,499 - (2) 2,497 - 2,497 Subtotal 110,244 13 (354) 109,903 - 109,903 Total assets $ 144,801 $ 13 $ (354) $ 144,460 $ 34,557 $ 109,903 Gross Gross Cash and Amortized Unrealized Unrealized Estimated Cash Short-Term As of March 31, 2018 Costs Gain Loss Fair Value Equivalents Investments Cash $ 16,499 $ - $ - $ 16,499 $ 16,499 $ - Level 1: Money market funds 15,204 - - 15,204 15,204 - Subtotal 31,703 - - 31,703 31,703 - Level 2: Commercial paper 13,254 - (8) 13,246 - 13,246 Corporate debt 70,631 6 (296) 70,341 - 70,341 Municipal securities 3,385 3 (1) 3,387 - 3,387 Asset backed securities 27,063 1 (119) 26,945 - 26,945 Agency bond 4,183 - (35) 4,148 - 4,148 International government securities 2,497 - (5) 2,492 - 2,492 Subtotal 121,013 10 (464) 120,559 - 120,559 Total assets $ 152,716 $ 10 $ (464) $ 152,262 $ 31,703 $ 120,559 Contractual maturities of investments as of June 30, 2018 are set forth below (in thousands): Estimated Fair Value Due within one year $ 54,153 Due after one year 55,750 Total $ 109,903 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Intangible Assets Tables | |
Carrying values of intangible assets | The carrying value of intangible assets consisted of the following (in thousands): June 30, 2018 March 31, 2018 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Technology $ 22,902 $ (11,645) $ 11,257 $ 19,702 $ (10,535) $ 9,167 Customer relationships 9,655 (7,587) 2,068 9,776 (7,366) 2,410 Trade names/domains 2,108 (1,823) 285 2,108 (1,727) 381 In-process research and development 95 (95) - 95 (95) - Total acquired identifiable intangible assets $ 34,760 $ (21,150) $ 13,610 $ 31,681 $ (19,723) $ 11,958 |
Finite-lived intangible assets - future amortization expense | At June 30, 2018, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following (in thousands): Amount Remaining 2019 $ 4,689 2020 4,716 2021 2,554 2022 1,423 2023 228 Total $ 13,610 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Goodwill Tables | |
Carrying amounts of goodwill | The following table provides a summary of the changes in the carrying amounts of goodwill by reporting segment (in thousands): Americas Europe Total Balance at March 31, 2018 $ 27,309 $ 12,745 $ 40,054 Additions due to acquisition 300 - 300 Foreign currency translation - (703) (703) Balance at June 30, 2018 $ 27,609 $ 12,042 $ 39,651 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Tables | |
Future minimum annual operating lease payments | Future minimum annual lease payments as of June 30, 2018 were as follows (in thousands): Amount Remaining 2019 $ 4,314 2020 6,622 2021 8,961 2022 8,848 2023 8,353 Thereafter 54,724 Total $ 91,822 |
Distribution of Stock-Based Com
Distribution of Stock-Based Compensation Plan Expense (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Distribution Of Stock-based Compensation Plan Expense Tables | |
Schedule Of Stock-Based Compensation Expense By Statement Of Operations Line Item | The following table summarizes information pertaining to the stock-based compensation expense from stock options and stock awards (in thousands, except weighted-average grant-date fair value and recognition period): Three Months Ended June 30, 2018 2017 Cost of service revenue $ 458 $ 391 Cost of product revenue - - Research and development 2,194 1,337 Sales and marketing 3,845 2,647 General and administrative 2,414 1,976 Total $ 8,911 $ 6,351 |
Stock-Based Compensation And Em
Stock-Based Compensation And Employee Purchase Plan (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Option Grants | |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Three Months Ended June 30, 2018 2017 Stock options outstanding at the beginning of the period: 3,998 4,462 Options granted 81 35 Options exercised (115) (101) Options canceled and forfeited (73) (48) Options outstanding at the end of the period: 3,891 4,348 Weighted-average fair value of grants during the period $ 8.57 $ 4.93 Total intrinsic value of options exercised during the period $ 1,186 $ 792 Weighted-average remaining recognition period at period-end (in years) 2.35 1.92 |
Stock Awards | |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | Three Months Ended June 30, 2018 2017 Stock awards outstanding at the beginning of the period: 5,939 4,950 Stock awards granted 948 370 Stock awards exercised (299) (189) Stock awards canceled and forfeited (168) (128) Stock awards outstanding at the end of the period: 6,420 5,003 Weighted-average fair value of grants during the period $ 22.20 $ 13.50 Weighted-average remaining recognition period at period-end (in years) 2.40 2.45 Total unrecognized compensation expense at period-end $ 67,025 $ 46,171 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Net Income Loss Per Share Tables | |
Net Income (Loss) Per Share | The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, 2018 2017 Numerator: Net loss available to common stockholders $ (15,355) $ (2,169) Denominator: Common shares - basic and diluted 93,064 91,643 Net loss per share Basic $ (0.16) $ (0.02) Diluted $ (0.16) $ (0.02) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares attributable to outstanding stock options and stock awards were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive (in thousands): Three Months Ended June 30, 2018 2017 Stock options 3,891 4,348 Stock awards 6,420 5,003 Total anti-dilutive shares 10,311 9,351 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Segment Information Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables set forth the segment and geographic information for each period (in thousands): Revenue for the Three Months Ended June 30, 2018 2017 Americas (principally US) $ 74,986 $ 62,405 Europe (principally UK) 8,239 6,693 $ 83,225 $ 69,098 June 30, 2018 March 31, 2018 Total Property and Total Property and Assets Equipment, net Assets Equipment, net Americas (principally US) $ 271,043 $ 30,293 $ 240,099 $ 27,270 Europe (principally UK) 44,508 7,807 37,110 8,462 $ 315,551 $ 38,100 $ 277,209 $ 35,732 |
Schedule of Segment Reporting Information, by Segment | Depreciation and Amortization for the Three Months Ended June 30, 2018 2017 Americas (principally US) $ 4,307 $ 2,533 Europe (principally UK) 871 1,194 $ 5,178 $ 3,727 Net Income (Loss) for the Three Months Ended June 30, 2018 2017 Americas (principally US) $ (14,349) $ 409 Europe (principally UK) (1,006) (2,578) $ (15,355) $ (2,169) |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Acquisition Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The preliminary fair values of the assets acquired are as follows (in thousands): Fair Value Assets acquired: Intangible assets $ 3,200 Net identifiable assets acquired 3,200 Goodwill 300 Total consideration transferred $ 3,500 |
Description of the Business (Na
Description of the Business (Narrative) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Description Of Business Narrative Details | |
Fiscal Year End Date | --03-31 |
Assets, net of accumulated amortization reclassified | $ 7.7 |
Description of the Business (Ac
Description of the Business (Acquisitions Narrative) (Details) | 1 Months Ended |
Apr. 30, 2018 | |
Description Of Business Acquisitions Narrative Details | |
Effective date of purchase agreement | Apr. 30, 2018 |
Business Acquisition, Description of Acquired Entity | In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million paid at closing and $0.9 million in cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information. |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of ASC 606 (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Service revenue | $ 78,121 | ||
Product revenue | 5,104 | ||
Total revenue | 83,225 | $ 69,098 | |
Operating expenses: | |||
Sales and marketing | 53,305 | 41,110 | |
Loss from operations | (15,983) | (5,457) | |
Net loss | $ (15,355) | (2,169) | |
Net loss per share: | |||
Basic and diluted | $ (0.16) | ||
Current assets: | |||
Deferred sales commission costs | $ 12,706 | $ 11,234 | |
Other current assets | 11,131 | 11,765 | |
Non-current assets: | |||
Deferred sales commission costs | 27,041 | 26,942 | |
Stockholders' equity: | |||
Accumulated deficit | (176,918) | (161,563) | |
Cash Flow Line Items | |||
Net loss | (15,355) | (2,169) | |
Deferred sales commission costs | (1,799) | 0 | |
Other current and noncurrent assets | (419) | ||
Net cash provided by operating activities | 789 | $ 6,183 | |
ASC 605 | Previous | |||
Service revenue | 78,242 | ||
Product revenue | 5,011 | ||
Total revenue | 83,253 | ||
Operating expenses: | |||
Sales and marketing | 55,104 | ||
Loss from operations | (17,754) | ||
Net loss | $ (17,126) | ||
Net loss per share: | |||
Basic and diluted | $ (0.18) | ||
Current assets: | |||
Deferred sales commission costs | 0 | ||
Other current assets | 10,040 | ||
Non-current assets: | |||
Deferred sales commission costs | 0 | ||
Stockholders' equity: | |||
Accumulated deficit | (201,464) | ||
Cash Flow Line Items | |||
Net loss | $ (17,126) | ||
Deferred sales commission costs | 0 | ||
Other current and noncurrent assets | (447) | ||
Net cash provided by operating activities | 789 | ||
ASC 606 | Adjustment | |||
Service revenue | (121) | ||
Product revenue | 93 | ||
Total revenue | (28) | ||
Operating expenses: | |||
Sales and marketing | (1,799) | ||
Loss from operations | 1,771 | ||
Net loss | $ 1,771 | ||
Net loss per share: | |||
Basic and diluted | $ 0.02 | ||
Current assets: | |||
Deferred sales commission costs | $ 12,706 | 11,234 | |
Other current assets | 1,697 | 1,725 | |
Non-current assets: | |||
Deferred sales commission costs | 27,041 | 26,942 | |
Stockholders' equity: | |||
Accumulated deficit | 41,444 | $ 39,901 | |
Cash Flow Line Items | |||
Net loss | 1,771 | ||
Deferred sales commission costs | (1,799) | ||
Other current and noncurrent assets | 28 | ||
Net cash provided by operating activities | 0 | ||
ASC 605 | Previous | |||
Current assets: | |||
Deferred sales commission costs | 0 | ||
Other current assets | 9,434 | ||
Non-current assets: | |||
Deferred sales commission costs | 0 | ||
Stockholders' equity: | |||
Accumulated deficit | $ (218,362) |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances with Contract Customers (details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Accounts receivable | $ 17,725 | $ 16,296 |
Other current assets | 1,697 | 1,725 |
Deferred revenue - current | 2,838 | $ 2,559 |
Contracts with Customers | ||
Accounts receivable | 17,725 | |
Other current assets | 1,697 | |
Deferred revenue - current | 2,838 | |
Deferred revenue - noncurrent | $ 16 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Changes in Contract Assets and Deferred Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Contractors [Abstract] | ||
Other current assets | $ 1,697 | $ 1,725 |
Change in other current assets | (28) | |
Deferred revenue | 2,854 | $ 2,578 |
Change in deferred revenue | $ 276 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) $ in Millions | Jun. 30, 2018USD ($) |
Revenue Recognition - Estimated Revenue Expected To Be Recognized In Future Related To Performance Obligations Details | |
Revenue, Remaining Performance Obligation | $ 130 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments with Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Amortized Costs | $ 144,801 | $ 152,716 |
Gross Unrealized Gains | 13 | 10 |
Gross Unrealized Loss | (354) | (464) |
Estimated Fair Value | 144,460 | 152,262 |
Cash and cash equivalents | 34,557 | 31,703 |
Short-term marketable investments | 109,903 | 120,559 |
Aavailable-for-sale investments due within one year | 54,153 | |
Aavailable-for-sale investments due after one year | 55,750 | |
Level 1 | ||
Amortized Costs | 34,557 | 31,073 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Estimated Fair Value | 34,557 | 31,073 |
Cash and cash equivalents | 34,557 | 31,073 |
Short-term marketable investments | 0 | |
Level 2 | ||
Amortized Costs | 110,244 | 121,013 |
Gross Unrealized Gains | 13 | 10 |
Gross Unrealized Loss | (354) | (464) |
Estimated Fair Value | 109,903 | 120,559 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable investments | 109,903 | 120,559 |
Cash | ||
Amortized Costs | 13,051 | 16,499 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Estimated Fair Value | 13,051 | 16,499 |
Cash and cash equivalents | 13,051 | 16,499 |
Short-term marketable investments | 0 | 0 |
Money Market Funds | Level 1 | ||
Amortized Costs | 21,506 | 15,204 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Estimated Fair Value | 21,506 | 15,204 |
Cash and cash equivalents | 21,506 | 15,204 |
Short-term marketable investments | 0 | 0 |
Commercial Paper | Level 2 | ||
Amortized Costs | 3,199 | 13,254 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | (8) |
Estimated Fair Value | 3,199 | 13,246 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable investments | 3,199 | 13,246 |
Corporate Debt | Level 2 | ||
Amortized Costs | 72,400 | 70,631 |
Gross Unrealized Gains | 12 | 6 |
Gross Unrealized Loss | (221) | (296) |
Estimated Fair Value | 72,191 | 70,341 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable investments | 72,191 | 70,341 |
Municipal Securities | Level 2 | ||
Amortized Costs | 3,392 | 3,385 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Loss | 0 | (1) |
Estimated Fair Value | 3,393 | 3,387 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable investments | 3,393 | 3,387 |
Asset-backed Securities | Level 2 | ||
Amortized Costs | 24,552 | 27,063 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Loss | (92) | (119) |
Estimated Fair Value | 24,460 | 26,945 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable investments | 24,460 | 26,945 |
Agency Bond | Level 2 | ||
Amortized Costs | 4,202 | 4,183 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | (39) | (35) |
Estimated Fair Value | 4,163 | 4,148 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable investments | 4,163 | 4,148 |
International Government Securities | Level 2 | ||
Amortized Costs | 2,499 | 2,497 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | (2) | (5) |
Estimated Fair Value | 2,497 | 2,492 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable investments | $ 2,497 | $ 2,492 |
Intangible Assets Schedule Of I
Intangible Assets Schedule Of Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Gross Carrying Amount | $ 34,760 | $ 31,681 |
Accumulated Amortization | (21,150) | (19,723) |
Net Carrying Amount | 13,610 | 11,958 |
Technology | ||
Gross Carrying Amount | 22,902 | 19,702 |
Accumulated Amortization | (11,645) | (10,535) |
Net Carrying Amount | 11,257 | 9,167 |
Customer relationships | ||
Gross Carrying Amount | 9,655 | 9,776 |
Accumulated Amortization | (7,587) | (7,366) |
Net Carrying Amount | 2,068 | 2,410 |
Trade names/domains | ||
Gross Carrying Amount | 2,108 | 2,108 |
Accumulated Amortization | (1,823) | (1,727) |
Net Carrying Amount | 285 | 381 |
In-process research and development | ||
Gross Carrying Amount | 95 | 95 |
Accumulated Amortization | (95) | (95) |
Net Carrying Amount | $ 0 | $ 0 |
Intangible Assets Schedule Of F
Intangible Assets Schedule Of Future Amortization Of Intangibles (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Intangible Assets Schedule Of Future Amortization Of Intangibles Details | |
Remaining 2,019 | $ 4,689 |
2,020 | 4,716 |
2,021 | 2,554 |
2,022 | 1,423 |
2,023 | 228 |
Total | $ 13,610 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Location (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill, beginning balance | $ 40,054 |
Additions due to acquisitions | 300 |
Foreign currency translation | (703) |
Goodwill, ending balance | 39,651 |
Americas | |
Goodwill, beginning balance | 27,309 |
Additions due to acquisitions | 300 |
Foreign currency translation | 0 |
Goodwill, ending balance | 27,609 |
Europe | |
Goodwill, beginning balance | 12,745 |
Foreign currency translation | (703) |
Goodwill, ending balance | $ 12,042 |
Commitments and Contingencies38
Commitments and Contingencies (Operating Leases) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Year ending March 31: | |
Remaining 2,019 | $ 4,314 |
2,020 | 6,622 |
2,021 | 8,961 |
2,022 | 8,848 |
2,023 | 8,353 |
Thereafter | 54,724 |
Total | $ 91,822 |
Commitments and Contingencies39
Commitments and Contingencies (Operating Leases Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments And Contingencies Operating Leases Narrative Details | ||
Rent expense | $ 2.6 | $ 1.4 |
Stock-based Compensation Stock-
Stock-based Compensation Stock-Based Compensation Expense By Statement Of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | $ 8,911 | $ 6,351 |
Cost of service revenue | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 458 | 391 |
Cost of product revenue | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 0 | 0 |
Research and development | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 2,194 | 1,337 |
Sales and marketing | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | 3,845 | 2,647 |
General and administrative | ||
Stock-based employee compensation expense related to employee stock options and employee stock purchases, pre tax | $ 2,414 | $ 1,976 |
Stock-based Compensation Option
Stock-based Compensation Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-based Compensation Option Activity Details | ||
Balance at beginning of period | 3,998 | 4,462 |
Granted | 81 | 35 |
Exercised | (115) | (101) |
Cancelled/forfeited | (73) | (48) |
Balance at end of period | 3,891 | 4,348 |
Weighted-average exercise price of options granted during period | $ 8.57 | $ 4.93 |
Total intrinsic value of options exercised during the period | $ 1,186 | $ 792 |
Weighted Average Remaining recognition period in years | 2 years 126 days | 1 year 331 days |
Stock-based Compensation Stock
Stock-based Compensation Stock Awards Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Stock-based Compensation Stock Awards Activity Details | ||
Balance at beginning of period | 5,939 | 4,950 |
Granted | 948 | 370 |
Vested | (299) | (189) |
Canceled and forfeited | (168) | (128) |
Balance at end of period | 6,420 | 5,003 |
Weighted-average grant date fair market value of restricted stock rights granted | $ 22.20 | $ 13.5 |
Weighted-average remaining contractual term, in years, ending balance | 2 years 144 days | 2 years 162 days |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Stock-based Compensation Narrative Details | ||
Total unrecognized compensation expense related to stock awards | $ 67,025 | $ 46,171 |
Stock Repurchases 2017 (Narrati
Stock Repurchases 2017 (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Stock Repurchases 2017 Narrative Details | ||
Stock repurchased and retired during period, shares | 0 | |
Stock repurchased and retired during period, value | $ 0 | |
Stock repurchase program, authorized amount | $ 25,000,000 | |
Stock repurchase program, remaining authorized repurchase amount | $ 7,100,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Effective Income Tax Rate, Percent | (0.60%) | 36.30% |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||
Net loss available to common stockholders | $ (15,355) | $ (2,169) |
Denominator: | ||
Common shares - basic and diluted | 93,064 | 93,064 |
Net loss per share: | ||
Basic | $ (0.16) | $ (0.02) |
Diluted | $ (0.16) | $ (0.02) |
Net Income (Loss) Per Share (Op
Net Income (Loss) Per Share (Options and Awards Excluded) (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Anti-dilutive shares | 10,311 | 9,351 |
Stock options | ||
Anti-dilutive shares | 3,891 | 4,348 |
Stock awards | ||
Anti-dilutive shares | 6,420 | 5,003 |
Segment Reporting Revenue and P
Segment Reporting Revenue and Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | |
Net revenue | $ 83,225 | $ 69,098 | |
Depreciation and amortization expense | 5,178 | 3,727 | |
Net income (loss) | (15,355) | (2,169) | |
Intersegment revenues eliminated in consolidation | 6,600 | 2,500 | |
Total assets | 315,551 | $ 277,209 | |
Property and equipments, net | 38,100 | 35,732 | |
Americas | |||
Net revenue | 74,986 | 62,405 | |
Depreciation and amortization expense | 4,307 | 2,533 | |
Net income (loss) | (14,349) | 409 | |
Total assets | 271,403 | 240,099 | |
Property and equipments, net | 20,519 | 27,270 | |
Europe | |||
Net revenue | 8,239 | 6,693 | |
Depreciation and amortization expense | 871 | 1,194 | |
Net income (loss) | (1,006) | $ (2,578) | |
Total assets | 44,508 | 37,110 | |
Property and equipments, net | $ 6,454 | $ 8,462 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Apr. 30, 2018 | Jun. 30, 2018 | |
Assets acquired: | ||
Goodwill | $ 300 | |
Business Acquisition, Description of Acquired Entity | In April 2018, the Company entered into an asset purchase agreement with MarianaIQ, Inc. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million paid at closing and $0.9 million in cash deposited into escrow to be held for fifteen months as security against indemnity claims made by the Company after the closing date. See Note 11 for additional information. | |
MarianaIQ | ||
Assets acquired: | ||
Intangible assets | 3,200 | |
Goodwill | $ 300 | |
Net identifiable assets acquired | 3,200 | |
Total consideration transferred | $ 3,500 | |
Cash | 2,600 | |
Contingent payments | 900 | |
Total purchase price | $ 3,500 | |
Business Acquisition, Name of Acquired Entity | MarianaIQ Inc. | |
Business Acquisition, Description of Acquired Entity | MarianaIQ On April 12, 2018, the Company entered into an Asset Purchase Agreement (the "Agreement") with MarianaIQ Inc. (MarianaIQ) for the purchase of certain assets of MarianaIQ. The total aggregate purchase price was $3.5 million, consisting of approximately $2.6 million in cash paid to MarianaIQ at closing, and $0.9 million in cash to be held in escrow by the Company for fifteen months, as security against indemnity claims asserted by the Company after the closing date. The escrow amount is recorded as other accrued liabilities on the condensed consolidated balance sheets as of June 30, 2018. The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years. | |
Business Combination, Assets and Liabilities, Description | The Company recorded the acquired developed technology as an identifiable intangible asset with an estimated useful life of two years. The fair value of the technology was based on estimates and assumptions made by management using a cost approach method. The intangible asset is amortized on a straight-line basis over two years. The excess of the consideration transferred over the aggregate fair value of the asset acquired was recorded as goodwill. The amount of goodwill recognized was primarily attributable to the expected contributions of the entity to the overall corporate strategy in addition to the acquired workforce. MarianaIQ did not contribute to revenue or net loss for the period of acquisition to June 30, 2018. Goodwill recognized upon acquisition is expected to be deductible for income tax purposes and is included in the Americas reporting unit (see Note 5). Total acquisition costs were immaterial. |