Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-33026 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3447504 | |
Entity Address, Address Line One | 1 Commvault Way | |
Entity Address, City or Town | Tinton Falls | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07724 | |
City Area Code | 732 | |
Local Phone Number | 870-4000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CVLT | |
Security Exchange Name | NASDAQ | |
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 | 43,874,713 | |
Entity Registrant Name | COMMVAULT SYSTEMS INC | |
Entity Central Index Key | 0001169561 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 274,589 | $ 287,778 |
Trade accounts receivable, net | 176,512 | 210,441 |
Assets held for sale | 38,680 | 38,680 |
Other current assets | 18,654 | 14,015 |
Total current assets | 508,435 | 550,914 |
Property and equipment, net | 8,209 | 8,287 |
Operating lease assets | 11,268 | 11,784 |
Deferred commissions cost | 58,848 | 59,612 |
Intangible asset, net | 1,979 | 2,292 |
Goodwill | 127,780 | 127,780 |
Other assets | 25,213 | 21,905 |
Total assets | 741,732 | 782,574 |
Current liabilities: | ||
Accounts payable | 284 | 108 |
Accrued liabilities | 78,089 | 97,888 |
Current portion of operating lease liabilities | 4,763 | 4,518 |
Deferred revenue | 302,629 | 307,562 |
Total current liabilities | 385,765 | 410,076 |
Deferred revenue, less current portion | 172,219 | 174,393 |
Deferred tax liabilities, net | 519 | 134 |
Long-term operating lease liabilities | 7,584 | 8,260 |
Other liabilities | 3,629 | 3,613 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value: 250,000 shares authorized, 43,973 shares and 44,140 shares issued and outstanding at June 30, 2023 and March 31, 2023, respectively | 438 | 440 |
Additional paid-in capital | 1,282,326 | 1,264,608 |
Accumulated deficit | (1,094,336) | (1,062,900) |
Accumulated other comprehensive loss | (16,412) | (16,050) |
Total stockholders’ equity | 172,016 | 186,098 |
Total liabilities and stockholders’ equity | $ 741,732 | $ 782,574 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 43,973,000 | 44,140,000 |
Common stock, shares outstanding (in shares) | 43,973,000 | 44,140,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||
Total revenues | $ 198,150 | $ 197,981 |
Cost of revenues: | ||
Total cost of revenues | 35,550 | 33,757 |
Gross margin | 162,600 | 164,224 |
Operating expenses: | ||
Sales and marketing | 84,127 | 84,919 |
Research and development | 31,431 | 40,113 |
General and administrative | 26,959 | 26,976 |
Restructuring | 0 | 2,132 |
Depreciation and amortization | 1,603 | 2,635 |
Total operating expenses | 144,120 | 156,775 |
Income from operations | 18,480 | 7,449 |
Interest income | 780 | 261 |
Interest expense | (96) | (105) |
Other income (expense), net | 341 | (389) |
Income before income taxes | 19,505 | 7,216 |
Income tax expense | 6,876 | 3,705 |
Net income | $ 12,629 | $ 3,511 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.29 | $ 0.08 |
Diluted (in dollars per share) | $ 0.28 | $ 0.08 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 44,057 | 44,743 |
Diluted (in shares) | 44,975 | 45,865 |
Subscription | ||
Revenues: | ||
Total revenues | $ 97,290 | $ 87,628 |
Cost of revenues: | ||
Total cost of revenues | 12,363 | 10,985 |
Perpetual license | ||
Revenues: | ||
Total revenues | 13,155 | 17,798 |
Cost of revenues: | ||
Total cost of revenues | 412 | 626 |
Customer support | ||
Revenues: | ||
Total revenues | 76,915 | 81,317 |
Cost of revenues: | ||
Total cost of revenues | 14,957 | 15,033 |
Other services | ||
Revenues: | ||
Total revenues | 10,790 | 11,238 |
Cost of revenues: | ||
Total cost of revenues | $ 7,818 | $ 7,113 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,629 | $ 3,511 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (362) | (1,715) |
Comprehensive income | $ 12,267 | $ 1,796 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid – In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2022 | 44,511 | ||||
Beginning balance at Mar. 31, 2022 | $ 255,829 | $ 443 | $ 1,165,948 | $ (898,699) | $ (11,863) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 31,095 | 31,095 | |||
Share issuances related to stock-based compensation (in shares) | 634 | ||||
Share issuances related to stock-based compensation | 687 | $ 6 | 681 | ||
Repurchase of common stock (in shares) | (310) | ||||
Repurchase of common stock | (18,923) | $ (3) | (2,793) | (16,127) | |
Net income | 3,511 | 3,511 | |||
Other comprehensive loss | (1,715) | (1,715) | |||
Ending balance (in shares) at Jun. 30, 2022 | 44,835 | ||||
Ending balance at Jun. 30, 2022 | 270,484 | $ 446 | 1,194,931 | (911,315) | (13,578) |
Beginning balance (in shares) at Mar. 31, 2023 | 44,140 | ||||
Beginning balance at Mar. 31, 2023 | 186,098 | $ 440 | 1,264,608 | (1,062,900) | (16,050) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 23,724 | 23,724 | |||
Share issuances related to stock-based compensation (in shares) | 612 | ||||
Share issuances related to stock-based compensation | $ 1,201 | $ 6 | 1,195 | ||
Repurchase of common stock (in shares) | (779) | (779) | |||
Repurchase of common stock | $ (51,274) | $ (8) | (7,201) | (44,065) | |
Net income | 12,629 | 12,629 | |||
Other comprehensive loss | (362) | (362) | |||
Ending balance (in shares) at Jun. 30, 2023 | 43,973 | ||||
Ending balance at Jun. 30, 2023 | $ 172,016 | $ 438 | $ 1,282,326 | $ (1,094,336) | $ (16,412) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 12,629 | $ 3,511 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,632 | 2,977 |
Noncash stock-based compensation | 23,724 | 31,095 |
Noncash change in fair value of equity securities | (341) | 389 |
Amortization of deferred commissions cost | 6,319 | 5,314 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 28,057 | 9,389 |
Operating lease assets and liabilities, net | 72 | (283) |
Other current assets and Other assets | (1,393) | (2,710) |
Deferred commissions cost | (5,600) | (6,652) |
Accounts payable | 178 | 482 |
Accrued liabilities | (19,530) | (31,366) |
Deferred revenue | (7,213) | 10,258 |
Other liabilities | 503 | 29 |
Net cash provided by operating activities | 39,037 | 22,433 |
Cash flows from investing activities | ||
Purchase of property and equipment | (1,147) | (867) |
Purchase of equity securities | (312) | (1,015) |
Net cash used in investing activities | (1,459) | (1,882) |
Cash flows from financing activities | ||
Repurchase of common stock | (51,030) | (18,923) |
Proceeds from stock-based compensation plans | 1,201 | 687 |
Payment of debt issuance costs | 0 | (63) |
Net cash used in financing activities | (49,829) | (18,299) |
Effects of exchange rate — changes in cash | (938) | (11,046) |
Net decrease in cash and cash equivalents | (13,189) | (8,794) |
Cash and cash equivalents at beginning of period | 287,778 | 267,507 |
Cash and cash equivalents at end of period | $ 274,589 | $ 258,713 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Commvault Systems, Inc. and its subsidiaries ("Commvault," "we," "us," or "our") provides its customers with a data protection platform that helps them secure, defend and recover their most precious asset, their data. We provide these products and services for their data across the following environments: on-premises, hybrid, or multi-cloud. Our data protection offerings are delivered via self-managed software, software-as-a-service (SaaS), integrated appliances, or managed by partners. Customers use our technology to protect themselves from threats like ransomware and recover their data efficiently. The consolidated financial statements of Commvault as of June 30, 2023 and for the three months ended June 30, 2023 and 2022 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in our Annual Report on Form 10-K for fiscal 2023. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amounts of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, deferred commissions and goodwill. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Reclassification of Prior Year Balances Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications have no impact on the amount of total revenue or net income. Beginning in fiscal 2024, the software and services line items on the consolidated statements of operations, related to revenues and cost of revenues, will be presented in the following categories: Subscription - The amounts on this line include the revenues and costs of recurring time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. For SaaS offerings, revenue is generally recognized ratably over the contract term beginning on the date that the service is made available to the customer. Perpetual license - The amounts on this line include the revenues and costs from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer support - The amounts on this line include customer support revenues and costs associated with our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. Customer support revenue is typically recognized ratably over the term of the customer support agreement. Other services - The amounts included on this line consist primarily of revenues and costs related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed. Recently Adopted and Recently Issued Accounting Standards There were no recently adopted accounting standards that had a material effect on our condensed consolidated financial statements and accompanying disclosures, and no recently issued accounting standards that are expected to have a material impact on our condensed consolidated financial statements and accompanying disclosures. Concentration of Credit Risk We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Historically, credit losses relating to these customers have been minimal. Sales through our distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 38% and 36% of total revenues for the three months ended June 30, 2023 and 2022, respectively. Arrow accounted for approximately 33% and 34% of total accounts receivable as of June 30, 2023 and March 31, 2023, respectively. Fair Value of Financial Instruments The carrying amounts of our cash, cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. Our cash equivalents balance consists primarily of U.S. Treasury Bills with maturities of one month or less. The following table summarizes the composition of our financial assets measured at fair value at June 30, 2023: Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 24,890 — — $ 24,890 There were no financial assets measured at fair value on a recurring basis as of June 30, 2022. Equity Securities Accounted for at Net Asset Value We held equity interests in private equity funds of $6,554 as of June 30, 2023, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement . These investments are included in other assets in the accompanying consolidated balance sheets. The net asset values of these investments are determined using quarterly capital statements from the funds, which are based on our contributions to the funds, allocation of profit and loss and changes in fair value of the underlying fund investments. Changes in fair value as reported on the capital statements are recorded through the consolidated statements of operations as non-operating income or expense. These private equity funds focus on making investments in key technology sectors, principally by investing in companies at expansion capital and growth equity stages. We had total unfunded commitments in private equity funds of $3,773 as of June 30, 2023. Deferred Commissions Cost Sales commissions, bonuses, and related payroll taxes earned by our employees are considered incremental and recoverable costs of obtaining a contract with a customer. Our typical contracts include performance obligations related to term-based software licenses, SaaS offerings, perpetual software licenses, software updates, and customer support. In these contracts, incremental costs of obtaining a contract are allocated to the performance obligations based on the relative estimated standalone selling prices and then recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We do not pay commissions on annual renewals of customer support contracts for perpetual licenses. The costs allocated to software and products are expensed at the time of sale, when revenue for the functional software license or appliance is recognized. The costs allocated to software updates and customer support for perpetual licenses are amortized ratably over a period of approximately five years, the expected period of benefit of the asset capitalized. We currently estimate a period of five years is appropriate based on consideration of historical average customer life and the estimated useful life of the underlying software sold as part of the transaction. The commission paid on the renewal of subscription arrangements is not commensurate with the commission paid on the initial purchase. As a result, the cost of commissions allocated to as-a-service subscription offerings, software updates and customer support on the initial term-based software license transactions are amortized over a period of approximately five years, consistent with the accounting for these costs associated with perpetual licenses. The costs of commissions allocated to as-a-service offerings, software updates and support for the renewal of term-based software licenses is limited to the contractual period of the arrangement, as we pay a commensurate renewal commission upon the next renewal of the subscription software license and related updates and support. The incremental costs attributable to professional services are generally amortized over the period the related services are provided and revenue is recognized. Amortization expense related to these costs is included in sales and marketing expenses in the accompanying consolidated statements of operations. |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We derive revenues from various sources, including subscriptions, perpetual software licenses, customer support contracts and other services. Subscription Subscription includes the revenues derived from time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. The term of our subscription arrangements are typically one one Perpetual License Perpetual license includes the revenue from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer Support Customer support includes revenues associated with support contracts tied to our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. We sell our customer support contracts as a percentage of net software purchases. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year on our perpetual licenses and over the term on our term-based licenses. Other Services Other services consist primarily of revenues related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed. We do not customize our software licenses (both perpetual and term-based) and installation services are not required. Software licenses are delivered before related services are provided and are functional without professional services, updates and technical support. We have concluded that our software licenses (both perpetual and term-based) are functional intellectual property that is distinct, as the user can benefit from the software on its own. Revenue for both perpetual and term-based licenses is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. We do not recognize subscription revenue related to the renewal of that subscription earlier than the beginning of the new subscription period. We also offer appliances that integrate our software with hardware and address a wide-range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. Our appliances are almost exclusively sold via a software only model in which we sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenue and costs associated with hardware are usually not included in our financial statements. Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is Subscription Term-based software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Software-as-a-service (SaaS) Ratably over the course of the contract (over time) Annually or at the beginning of the contract period Observable in transactions without multiple performance obligations Perpetual License Perpetual software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment Residual approach Customer Support Software updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Other Services Other professional services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Judgments related to revenue recognition Most of our contracts contain multiple performance obligations. For these contracts, we evaluate and account for individual performance obligations separately if they are determined to be distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses (both perpetual and term-based) are typically estimated using the residual approach. Standalone selling prices for SaaS, customer support contracts, and other services are typically estimated based on observable transactions when these services are sold on a standalone basis. We recognize revenue net of sales tax. Disaggregation of Revenue We disaggregate revenue from contracts with customers into geographical regions. Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China. Three Months Ended June 30, 2023 2022 Americas $ 122,124 $ 122,609 International 76,026 75,372 Total revenues $ 198,150 $ 197,981 Remaining Performance Obligations Remaining performance obligations represent expected future revenue from existing contracts where performance obligations are unsatisfied or partially unsatisfied at the end of the reporting period. As of June 30, 2023, our remaining performance obligations (inclusive of deferred revenues) were $536,669 of which approximately 64% is expected to be recognized as revenue over the next 12 months and the remainder recognized thereafter. The vast majority of this revenue consists of customer support, other services and SaaS arrangements. Other services consists primarily of professional services revenue which is contingent upon a number of factors, including customers' needs and scheduling. The amount of revenue recognized in the period that was included in the opening deferred revenue balance was $107,945 fo r the three months ended June 30, 2023. The amount of revenue recognized from performance obligations satisfied in prior periods was not significant. Information about Contract Balances Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to customer support, SaaS arrangements, and other services. In some arrangements we allow customers to pay for term-based software licenses and products over the term of the software license. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables, which are anticipated to be invoiced in the next twelve months, are included in accounts receivable on the consolidated balance sheets. Long-term unbilled receivables are included in other assets. The opening and closing balances of our accounts receivable, unbilled receivables, and deferred revenues are as follows: Accounts Receivable Unbilled Receivable Unbilled Receivable Deferred Revenue (current) Deferred Revenue (long-term) Opening balance as of March 31, 2023 $ 188,736 $ 21,705 $ 9,867 $ 307,562 $ 174,393 Increase (decrease), net (34,089) 160 3,021 (4,933) (2,174) Ending balance as of June 30, 2023 $ 154,647 $ 21,865 $ 12,888 $ 302,629 $ 172,219 |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale During the fourth quarter of fiscal 2023, we entered into an agreement to sell our owned corporate headquarters in Tinton Falls, New Jersey for $40,000 in cash consideration and determined the assets and land related to headquarters met the criteria for classification as assets held for sale in accordance with ASC 360, Impairment and Disposal of Long-Lived Assets . The property's estimated fair value, less estimated costs to sell, is $38,680. We believe the sale will likely close in the second quarter of fiscal 2024. Upon closing of the transaction, we will enter into a lease for a portion of the premises. |
Net Income per Common Share
Net Income per Common Share | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the vesting of restricted stock units, shares to be purchased under the Employee Stock Purchase Plan ("ESPP"), and the exercise of stock options. The dilutive effect of such potential common shares is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the reconciliation of basic and diluted net income per common share: Three Months Ended June 30, 2023 2022 Net income $ 12,629 $ 3,511 Basic net income per common share: Basic weighted average shares outstanding 44,057 44,743 Basic net income per common share $ 0.29 $ 0.08 Diluted net income per common share: Basic weighted average shares outstanding 44,057 44,743 Dilutive effect of stock options and restricted stock units 918 1,122 Diluted weighted average shares outstanding 44,975 45,865 Diluted net income per common share $ 0.28 $ 0.08 The diluted weighted-average shares outstanding exclude restricted stock units, performance restricted stock units, shares to be purchased under the ESPP and outstanding stock options totaling 514 and 535 for the three months ended June 30, 2023 and 2022, respectively, because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We do not believe that we are currently party to any pending legal action that could reasonably be expected to have a material adverse effect on our business or operating results. |
Capitalization
Capitalization | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Capitalization | CapitalizationOur stock repurchase program has been funded by our existing cash and cash equivalent balances, as well as cash flows provided by our operations. On April 20, 2023, the Board of Directors (the "Board") approved an increase of the existing share repurchase program so that $250,000 was available. The Board's authorization has no expiration date. For the three months ended June 30, 2023, we repurchased $51,030 of our common stock, or approximately 779 shares. The remaining amount available under the current authorization as of June 30, 2023 is $204,936. |
Stock Plans
Stock Plans | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development, general and administrative and restructuring expenses for the three months ended June 30, 2023 and 2022. Stock-based compensation is attributable to restricted stock units, performance-based awards and the ESPP. Three Months Ended June 30, 2023 2022 Cost of revenues $ 1,690 $ 1,243 Sales and marketing 9,704 11,393 Research and development 5,347 9,241 General and administrative 6,983 7,931 Restructuring — 1,287 Stock-based compensation expense $ 23,724 $ 31,095 As of June 30, 2023, there was $144,453 of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 1.85 years. We account for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from our current estimate. Stock option activity was not significant for both the three months ended June 30, 2023 and 2022. Restricted Stock Units Restricted stock unit activity for the three months ended June 30, 2023 was as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2023 2,953 $ 62.52 Awarded 556 67.34 Vested (585) 57.05 Forfeited (71) 65.83 Non-vested as of June 30, 2023 2,853 $ 64.50 The weighted-average fair value of restricted stock units awarded was $67.34 per unit during the three months ended June 30, 2023, and $62.60 per unit during the three months ended June 30, 2022. The weighted-average fair value of awards includes the awards with a market condition described below. Performance Based Awards In the three months ended June 30, 2023, we granted 120 performance restricted stock units ("PSUs") to certain executives. Vesting of these awards is contingent upon i) us meeting certain non-GAAP performance goals (performance-based) in fiscal 2024 and ii) our customary service periods. The awards vest over three years and have the potential to vest between 0% and 200% (240 shares) based on actual fiscal 2024 performance. The vesting quantity of these awards may vary based on actual fiscal 2024 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSUs that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table. Awards with a Market Condition In the three months ended June 30, 2023, we granted 120 market performance stock units to certain executives. The vesting of these awards is contingent upon us meeting certain total shareholder return ("TSR") levels as compared to the Russell 3000 market index over the next three years. The awards vest in three annual tranches and have the potential to vest between 0% and 200% (240 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the three months ended June 30, 2023 was $87.90 per unit. The awards are included in the restricted stock unit table. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax expense was $6,876 in the three months ended June 30, 2023, compared to expense of $3,705 in the three months ended June 30, 2022. The increase in income tax expense relative to the prior year relates primarily to current federal and state taxes driven by the increase of pre-tax income relative to the prior year quarter. We believe that it is more likely than not that we will not realize the benefits of our gross deferred tax assets and therefore continue to record a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero as of June 30, 2023. |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit FacilityOn December 13, 2021, we entered into a five-year $100,000 senior secured revolving credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A. The Credit Facility is available for share repurchases, general corporate purposes, and letters of credit. The Credit Facility contains financial maintenance covenants including a leverage ratio and interest coverage ratio. The Credit Facility also contains certain customary events of default which would permit the lender to, among other things, declare all loans then outstanding to be immediately due and payable if such default is not cured within applicable grace periods. The Credit Facility also limits our ability to incur certain additional indebtedness, create or permit liens on assets, make acquisitions, make investments, loans or advances, sell or transfer assets, pay dividends or distributions, and engage in certain transactions with foreign affiliates. Outstanding borrowings under the Credit Facility accrue interest at an annual rate equal to the Secured Overnight Financing Rate plus 1.25% subject to increases based on our actual leverage. The unused balance on the Credit Facility is also subject to a 0.25% annual interest charge subject to increases based on our actual leverage. As of June 30, 2023, there were no borrowings under the Credit Facility and we were in compliance with all covenants.We have deferred the expense related to debt issuance costs, which are classified as other assets, and will amortize the costs into interest expense over the term of the Credit Facility. Unamortized amounts at June 30, 2023 were $399. The amortization of debt issuance costs and interest expense incurred for both the three months ended June 30, 2023 and 2022 was $92. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 12,629 | $ 3,511 |
Insider Trading Arrangements
Insider Trading Arrangements shares in Thousands | 3 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
James Whalen [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On May 23, 2023, James Whalen, Chief Accounting Officer, terminated a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c), originally adopted on March 2, 2023, for the sale of up to approximately 3,000 shares of the Company’s common stock until August 25, 2023. |
Name | James Whalen |
Title | Chief Accounting Officer |
Adoption Date | March 2, 2023 |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | May 23, 2023 |
Arrangement Duration | 176 days |
Aggregate Available | 3 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements of Commvault as of June 30, 2023 and for the three months ended June 30, 2023 and 2022 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in our Annual Report on Form 10-K for fiscal 2023. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. |
Use of Estimates | The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amounts of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, deferred commissions and goodwill. Actual results could differ from those estimates. |
Reclassification of Prior Year Balances | Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications have no impact on the amount of total revenue or net income. Beginning in fiscal 2024, the software and services line items on the consolidated statements of operations, related to revenues and cost of revenues, will be presented in the following categories: Subscription - The amounts on this line include the revenues and costs of recurring time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. For SaaS offerings, revenue is generally recognized ratably over the contract term beginning on the date that the service is made available to the customer. Perpetual license - The amounts on this line include the revenues and costs from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer support - The amounts on this line include customer support revenues and costs associated with our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. Customer support revenue is typically recognized ratably over the term of the customer support agreement. Other services - The amounts included on this line consist primarily of revenues and costs related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed. |
Recently Adopted and Recently Issued Accounting Standards | There were no recently adopted accounting standards that had a material effect on our condensed consolidated financial statements and accompanying disclosures, and no recently issued accounting standards that are expected to have a material impact on our condensed consolidated financial statements and accompanying disclosures. |
Concentration of Credit Risk | We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Historically, credit losses relating to these customers have been minimal. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe carrying amounts of our cash, cash equivalents, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments. Our cash equivalents balance consists primarily of U.S. Treasury Bills with maturities of one month or less. |
Fair Value of Financial Instruments | We held equity interests in private equity funds of $6,554 as of June 30, 2023, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement |
Deferred Commissions Cost | Deferred Commissions Cost Sales commissions, bonuses, and related payroll taxes earned by our employees are considered incremental and recoverable costs of obtaining a contract with a customer. Our typical contracts include performance obligations related to term-based software licenses, SaaS offerings, perpetual software licenses, software updates, and customer support. In these contracts, incremental costs of obtaining a contract are allocated to the performance obligations based on the relative estimated standalone selling prices and then recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We do not pay commissions on annual renewals of customer support contracts for perpetual licenses. The costs allocated to software and products are expensed at the time of sale, when revenue for the functional software license or appliance is recognized. The costs allocated to software updates and customer support for perpetual licenses are amortized ratably over a period of approximately five years, the expected period of benefit of the asset capitalized. We currently estimate a period of five years is appropriate based on consideration of historical average customer |
Revenue | We derive revenues from various sources, including subscriptions, perpetual software licenses, customer support contracts and other services. Subscription Subscription includes the revenues derived from time-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made available for download. The term of our subscription arrangements are typically one one Perpetual License Perpetual license includes the revenue from the sale of perpetual software licenses. Perpetual software license revenue is typically recognized when the software is delivered or made available for download. Customer Support Customer support includes revenues associated with support contracts tied to our software products. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings, for both subscription software and perpetual software license arrangements. We sell our customer support contracts as a percentage of net software purchases. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year on our perpetual licenses and over the term on our term-based licenses. Other Services Other services consist primarily of revenues related to professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other professional services are typically recognized as the services are performed. We do not customize our software licenses (both perpetual and term-based) and installation services are not required. Software licenses are delivered before related services are provided and are functional without professional services, updates and technical support. We have concluded that our software licenses (both perpetual and term-based) are functional intellectual property that is distinct, as the user can benefit from the software on its own. Revenue for both perpetual and term-based licenses is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. We do not recognize subscription revenue related to the renewal of that subscription earlier than the beginning of the new subscription period. We also offer appliances that integrate our software with hardware and address a wide-range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. Our appliances are almost exclusively sold via a software only model in which we sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenue and costs associated with hardware are usually not included in our financial statements. Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is Subscription Term-based software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Software-as-a-service (SaaS) Ratably over the course of the contract (over time) Annually or at the beginning of the contract period Observable in transactions without multiple performance obligations Perpetual License Perpetual software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment Residual approach Customer Support Software updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Other Services Other professional services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Judgments related to revenue recognition Most of our contracts contain multiple performance obligations. For these contracts, we evaluate and account for individual performance obligations separately if they are determined to be distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses (both perpetual and term-based) are typically estimated using the residual approach. Standalone selling prices for SaaS, customer support contracts, and other services are typically estimated based on observable transactions when these services are sold on a standalone basis. We recognize revenue net of sales tax. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table summarizes the composition of our financial assets measured at fair value at June 30, 2023: Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 24,890 — — $ 24,890 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is Subscription Term-based software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Software-as-a-service (SaaS) Ratably over the course of the contract (over time) Annually or at the beginning of the contract period Observable in transactions without multiple performance obligations Perpetual License Perpetual software licenses Upon shipment or made available for download (point in time) Within 90 days of shipment Residual approach Customer Support Software updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Other Services Other professional services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations |
Schedule of Disaggregation of Revenue | Three Months Ended June 30, 2023 2022 Americas $ 122,124 $ 122,609 International 76,026 75,372 Total revenues $ 198,150 $ 197,981 |
Schedule of Contract with Customer, Asset and Liability | The opening and closing balances of our accounts receivable, unbilled receivables, and deferred revenues are as follows: Accounts Receivable Unbilled Receivable Unbilled Receivable Deferred Revenue (current) Deferred Revenue (long-term) Opening balance as of March 31, 2023 $ 188,736 $ 21,705 $ 9,867 $ 307,562 $ 174,393 Increase (decrease), net (34,089) 160 3,021 (4,933) (2,174) Ending balance as of June 30, 2023 $ 154,647 $ 21,865 $ 12,888 $ 302,629 $ 172,219 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income per Common Share | The following table sets forth the reconciliation of basic and diluted net income per common share: Three Months Ended June 30, 2023 2022 Net income $ 12,629 $ 3,511 Basic net income per common share: Basic weighted average shares outstanding 44,057 44,743 Basic net income per common share $ 0.29 $ 0.08 Diluted net income per common share: Basic weighted average shares outstanding 44,057 44,743 Dilutive effect of stock options and restricted stock units 918 1,122 Diluted weighted average shares outstanding 44,975 45,865 Diluted net income per common share $ 0.28 $ 0.08 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development, general and administrative and restructuring expenses for the three months ended June 30, 2023 and 2022. Stock-based compensation is attributable to restricted stock units, performance-based awards and the ESPP. Three Months Ended June 30, 2023 2022 Cost of revenues $ 1,690 $ 1,243 Sales and marketing 9,704 11,393 Research and development 5,347 9,241 General and administrative 6,983 7,931 Restructuring — 1,287 Stock-based compensation expense $ 23,724 $ 31,095 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the three months ended June 30, 2023 was as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2023 2,953 $ 62.52 Awarded 556 67.34 Vested (585) 57.05 Forfeited (71) 65.83 Non-vested as of June 30, 2023 2,853 $ 64.50 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 38% | 36% | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 33% | 34% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Assets: | ||
Cash equivalents | $ 24,890,000 | |
Financial assets at fair value | $ 0 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 24,890,000 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Cash equivalents | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Equity Securities Accounted for at Net Asset Value (Details) - Private Equity Funds $ in Thousands | Jun. 30, 2023 USD ($) |
Concentration Risk [Line Items] | |
Equity securities | $ 6,554 |
Unfunded commitments | $ 3,773 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Deferred Commissions Cost (Details) | Jun. 30, 2023 |
Accounting Policies [Abstract] | |
Software updates and customer support costs amortization period | 5 years |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) | 3 Months Ended |
Jun. 30, 2023 | |
Term-based software licenses | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Perpetual software licenses | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Other professional services (except for education services) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Education services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 198,150 | $ 197,981 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 122,124 | 122,609 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 76,026 | $ 75,372 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Subscription arrangement term | 3 years |
Revenue expected to be recognized from remaining performance obligations | $ 536,669 |
Revenue recognized in period, included in opening deferred revenue balance | $ 107,945 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Subscription arrangement term | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Subscription arrangement term | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 64% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue - Opening and Closing B
Revenue - Opening and Closing Balances of Accounts Receivables, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Deferred Revenue (current) | |
Opening Balance | $ 307,562 |
Ending Balance | 302,629 |
Deferred Revenue (long-term) | |
Opening Balance | 174,393 |
Ending Balance | 172,219 |
Unbilled Receivable (current) | |
Accounts Receivable | |
Opening Balance | 188,736 |
Increase (decrease), net | (34,089) |
Ending Balance | 154,647 |
Unbilled Receivable (current) | |
Opening Balance | 21,705 |
Increase (decrease), net | 160 |
Ending Balance | 21,865 |
Unbilled Receivable (long-term) | |
Unbilled Receivable (long-term) | |
Opening Balance | 9,867 |
Increase (decrease), net | 3,021 |
Ending Balance | 12,888 |
Deferred Revenue (current) | |
Deferred Revenue (current) | |
Opening Balance | 307,562 |
Increase (decrease), net | (4,933) |
Ending Balance | 302,629 |
Deferred Revenue (long-term) | |
Deferred Revenue (long-term) | |
Opening Balance | 174,393 |
Increase (decrease), net | (2,174) |
Ending Balance | $ 172,219 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - Corporate Headquarters in Tinton Falls, NJ - Disposal Group, Held-for-sale, Not Discontinued Operations $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Consideration from sale of properties | $ 40,000 |
Amount written down to estimated fair value, less estimated costs to sell | $ 38,680 |
Net Income per Common Share - C
Net Income per Common Share - Computation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||
Net income, basic | $ 12,629 | $ 3,511 |
Net income, diluted | $ 12,629 | $ 3,511 |
Basic net income per common share: | ||
Basic weighted average shares outstanding (in shares) | 44,057 | 44,743 |
Basic net income (loss) per common share (in dollars per share) | $ 0.29 | $ 0.08 |
Diluted net income per common share: | ||
Basic weighted average shares outstanding (in shares) | 44,057 | 44,743 |
Dilutive effect of stock options and restricted stock units (in shares) | 918 | 1,122 |
Diluted weighted average shares outstanding (in shares) | 44,975 | 45,865 |
Diluted net income (loss) per common share (in dollars per share) | $ 0.28 | $ 0.08 |
Net Income per Common Share - A
Net Income per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation (in shares) | 514 | 535 |
Capitalization (Details)
Capitalization (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Apr. 20, 2023 | |
Equity [Abstract] | ||
Share repurchase program, amount approved | $ 250,000 | |
Repurchase of common stock | $ 51,030 | |
Number of shares repurchased (in shares) | 779 | |
Share repurchase program, remaining available amount | $ 204,936 |
Stock Plans - Stock-Based Compe
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 23,724 | $ 31,095 |
Cost of revenues | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,690 | 1,243 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 9,704 | 11,393 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 5,347 | 9,241 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 6,983 | 7,931 |
Restructuring | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 0 | $ 1,287 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 144,453 | |
Weighted average period awards are expected to be recognized | 1 year 10 months 6 days | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value, units awarded (in dollars per share) | $ 67.34 | $ 62.60 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Units Activity (Details) - Restricted stock units - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Number of Awards | ||
Non-vested beginning balance (in shares) | 2,953 | |
Awarded (in shares) | 556 | |
Vested (in shares) | (585) | |
Forfeited (in shares) | (71) | |
Non-vested ending balance (in shares) | 2,853 | |
Weighted- Average Grant Date Fair Value | ||
Non-vested beginning balance (in dollars per share) | $ 62.52 | |
Awarded (in dollars per share) | 67.34 | $ 62.60 |
Vested (in dollars per share) | 57.05 | |
Forfeited (in dollars per share) | 65.83 | |
Non-vested ending balance (in dollars per share) | $ 64.50 |
Stock Plans - Performance Based
Stock Plans - Performance Based Awards (Details) - PSU shares in Thousands | 3 Months Ended |
Jun. 30, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 120 |
Compensation arrangements, vesting period | 3 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards potential to vest, percentage | 0% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards potential to vest, percentage | 200% |
Awards potential to vest (in shares) | 240 |
Stock Plans - Awards with a Mar
Stock Plans - Awards with a Market Condition (Details) - Market performance shares shares in Thousands | 3 Months Ended |
Jun. 30, 2023 tranche $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 120 |
Service period | 3 years |
Number of annual tranches | tranche | 3 |
Weighted-average fair value, units awarded (in dollars per share) | $ / shares | $ 87.90 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards potential to vest, percentage | 0% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards potential to vest, percentage | 200% |
Awards potential to vest (in shares) | 240 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 6,876,000 | $ 3,705,000 |
Deferred tax assets, valuation allowance, net of impact of reversal of taxable temporary differences | $ 0 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Revolving credit facility - Senior Secured Revolving Credit Facility - USD ($) | 3 Months Ended | ||
Dec. 13, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Line of Credit Facility [Line Items] | |||
Debt term | 5 years | ||
Borrowing capacity | $ 100,000,000 | ||
Annual interest charge on unused balance of the credit facility | 0.25% | ||
Borrowings under the credit facility | $ 0 | ||
Unamortized debt issuance costs | 399,000 | ||
Amortization of debt issuance costs | $ 92,000 | $ 92,000 | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Line of Credit Facility [Line Items] | |||
Debt, basis spread on variable rate | 1.25% |