Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2019 | Jan. 29, 2020 | |
Entity Addresses [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36766 | |
Entity Registrant Name | New Relic, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2017431 | |
Entity Address, Address Line One | 188 Spear Street | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 650 | |
Local Phone Number | 777-7600 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | NEWR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,252,981 | |
Entity Central Index Key | 0001448056 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Former Address | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | 188 Spear Street | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 178,997 | $ 234,356 |
Short-term investments | 557,662 | 510,372 |
Accounts receivable, net of allowance for doubtful accounts of $2,025 and $2,457, respectively | 110,590 | 120,605 |
Prepaid expenses and other current assets | 18,872 | 21,838 |
Deferred contract acquisition costs | 29,799 | 27,161 |
Total current assets | 895,920 | 914,332 |
Property and equipment, net | 105,040 | 80,742 |
Restricted cash | 5,639 | 8,805 |
Goodwill | 45,112 | 41,512 |
Intangible assets, net | 14,059 | 13,855 |
Deferred contract acquisition costs, non-current | 25,315 | 26,218 |
Lease right-of-use assets | 59,838 | |
Other assets, non-current | 7,270 | 4,763 |
Total assets | 1,158,193 | 1,090,227 |
Current liabilities: | ||
Accounts payable | 15,582 | 10,249 |
Accrued compensation and benefits | 25,550 | 23,537 |
Other current liabilities | 12,508 | 14,572 |
Deferred revenue | 236,897 | 267,000 |
Lease liabilities | 8,789 | |
Total current liabilities | 299,326 | 315,358 |
Convertible senior notes, net | 421,655 | 405,937 |
Lease liabilities, non-current | 59,849 | |
Deferred rent, non-current | 0 | 11,025 |
Deferred revenue, non-current | 110 | 4,597 |
Other liabilities, non-current | 1,460 | 947 |
Total liabilities | 782,400 | 737,864 |
Commitments and contingencies (Note 10) | ||
Redeemable non-controlling interest | 2,274 | 2,733 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000 shares authorized at December 31, 2019 and March 31, 2019; 59,400 shares and 58,366 shares issued at December 31, 2019 and March 31, 2019; and 59,140 shares and 58,106 shares outstanding at December 31, 2019 and March 31, 2019 | 59 | 58 |
Treasury stock - at cost (260 shares) | (263) | (263) |
Additional paid-in capital | 738,363 | 654,759 |
Accumulated other comprehensive income | 1,907 | 645 |
Accumulated deficit | (366,547) | (305,569) |
Total stockholders’ equity | 373,519 | 349,630 |
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ 1,158,193 | $ 1,090,227 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,025 | $ 2,457 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 59,400,000 | 58,366,000 |
Common stock, shares outstanding (in shares) | 59,140,000 | 58,106,000 |
Treasury stock, shares (in shares) | 260,000 | 260,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 153,028 | $ 124,011 | $ 439,853 | $ 347,128 |
Cost of revenue | 26,402 | 20,206 | 75,164 | 55,703 |
Gross profit | 126,626 | 103,805 | 364,689 | 291,425 |
Operating expenses: | ||||
Research and development | 38,387 | 26,182 | 106,858 | 72,747 |
Sales and marketing | 87,704 | 66,461 | 244,711 | 185,091 |
General and administrative | 24,751 | 19,702 | 71,129 | 51,293 |
Total operating expenses | 150,842 | 112,345 | 422,698 | 309,131 |
Loss from operations | (24,216) | (8,540) | (58,009) | (17,706) |
Other income (expense): | ||||
Interest income | 3,793 | 3,922 | 11,944 | 9,026 |
Interest expense | (5,953) | (5,669) | (17,660) | (13,932) |
Other income (expense), net | (465) | (8) | 2,828 | (1,285) |
Loss before income taxes | (26,841) | (10,295) | (60,897) | (23,897) |
Income tax provision (benefit) | 894 | (106) | 1,518 | 440 |
Net loss | (27,735) | (10,189) | (62,415) | (24,337) |
Net loss attributable to redeemable non-controlling interest | 540 | 86 | 1,437 | 283 |
Net loss attributable to New Relic | $ (27,195) | $ (10,103) | $ (60,978) | $ (24,054) |
Net loss attributable to New relic per share, basic and diluted (in usd per share) | $ (0.46) | $ (0.18) | $ (1.05) | $ (0.42) |
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 58,733 | 57,096 | 58,352 | 56,663 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss attributable to New Relic | $ (27,195) | $ (10,103) | $ (60,978) | $ (24,054) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (48) | 612 | 1,262 | 363 |
Comprehensive loss | $ (27,243) | $ (9,491) | $ (59,716) | $ (23,691) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment for ASU 2014-09 adoption | $ 40,813 | $ 40,813 | ||||
Beginning balance (in shares) at Mar. 31, 2018 | 56,213 | 260 | ||||
Beginning balance at Mar. 31, 2018 | 215,104 | $ 56 | $ 521,119 | $ (263) | $ (324) | (305,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of capped calls | (63,200) | |||||
Ending balance (in shares) at Sep. 30, 2018 | 57,199 | 260 | ||||
Ending balance at Sep. 30, 2018 | 317,847 | $ 57 | 597,248 | $ (263) | (573) | (278,622) |
Beginning balance (in shares) at Mar. 31, 2018 | 56,213 | 260 | ||||
Beginning balance at Mar. 31, 2018 | 215,104 | $ 56 | 521,119 | $ (263) | (324) | (305,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 552 | |||||
Issuance of common stock upon exercise of stock options | 11,536 | $ 1 | 11,535 | |||
Issuance of common stock for vested restricted stock units (in shares) | 688 | |||||
Issuance of common stock related to employee stock purchase plan (in shares) | 83 | |||||
Issuance of common stock related to employee stock purchase plan | 4,887 | 4,887 | ||||
Stock-based compensation expense | 40,179 | 40,179 | ||||
Other comprehensive income (loss), net | 363 | 363 | ||||
Net loss attributable to New Relic | (24,054) | (24,054) | ||||
Equity component of convertible senior notes, net of issuance costs | 100,136 | 100,136 | ||||
Purchase of capped calls | (63,182) | (63,182) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 57,536 | 260 | ||||
Ending balance at Dec. 31, 2018 | 325,782 | $ 57 | 614,674 | $ (263) | 39 | (288,725) |
Beginning balance (in shares) at Sep. 30, 2018 | 57,199 | 260 | ||||
Beginning balance at Sep. 30, 2018 | 317,847 | $ 57 | 597,248 | $ (263) | (573) | (278,622) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 97 | |||||
Issuance of common stock upon exercise of stock options | 2,519 | 2,519 | ||||
Issuance of common stock for vested restricted stock units (in shares) | 240 | |||||
Stock-based compensation expense | 14,907 | 14,907 | ||||
Other comprehensive income (loss), net | 612 | 612 | ||||
Net loss attributable to New Relic | (10,103) | (10,103) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 57,536 | 260 | ||||
Ending balance at Dec. 31, 2018 | 325,782 | $ 57 | 614,674 | $ (263) | 39 | (288,725) |
Beginning balance (in shares) at Mar. 31, 2019 | 58,366 | 260 | ||||
Beginning balance at Mar. 31, 2019 | $ 349,630 | $ 58 | 654,759 | $ (263) | 645 | (305,569) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 267 | 267 | ||||
Issuance of common stock upon exercise of stock options | $ 6,773 | 6,773 | ||||
Issuance of common stock for vested restricted stock units (in shares) | 650 | |||||
Issuance of common stock for vested restricted stock units | $ 1 | (1) | ||||
Issuance of common stock related to employee stock purchase plan (in shares) | 117 | |||||
Issuance of common stock related to employee stock purchase plan | 5,933 | 5,933 | ||||
Stock-based compensation expense | 70,899 | 70,899 | ||||
Other comprehensive income (loss), net | 1,262 | 1,262 | ||||
Net loss attributable to New Relic | (60,978) | (60,978) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 59,400 | 260 | ||||
Ending balance at Dec. 31, 2019 | 373,519 | $ 59 | 738,363 | $ (263) | 1,907 | (366,547) |
Beginning balance (in shares) at Sep. 30, 2019 | 59,036 | 260 | ||||
Beginning balance at Sep. 30, 2019 | 371,160 | $ 59 | 708,761 | $ (263) | 1,955 | (339,352) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 146 | |||||
Issuance of common stock upon exercise of stock options | 3,719 | 3,719 | ||||
Issuance of common stock for vested restricted stock units (in shares) | 218 | |||||
Stock-based compensation expense | 25,883 | 25,883 | ||||
Other comprehensive income (loss), net | (48) | (48) | ||||
Net loss attributable to New Relic | (27,195) | (27,195) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 59,400 | 260 | ||||
Ending balance at Dec. 31, 2019 | $ 373,519 | $ 59 | $ 738,363 | $ (263) | $ 1,907 | $ (366,547) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss attributable to New Relic | $ (60,978) | $ (24,054) |
Net loss attributable to redeemable non-controlling interest (Note 3) | (1,437) | (283) |
Net loss: | (62,415) | (24,337) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 56,237 | 38,585 |
Stock-based compensation expense | 70,496 | 39,624 |
Amortization of debt discount and issuance costs | 15,718 | 12,313 |
Gain on lease modification | (3,006) | |
Other | (2,919) | (800) |
Changes in operating assets and liabilities, net of acquisition of business: | ||
Accounts receivable, net | 10,015 | (3,411) |
Prepaid expenses and other assets | (204) | 3,262 |
Deferred contract acquisition costs | (25,786) | (27,689) |
Lease right-of-use assets | 19,539 | |
Accounts payable | 4,257 | 3,850 |
Accrued compensation and benefits and other liabilities | 1,136 | 7,771 |
Lease liabilities | (16,812) | |
Deferred revenue | (34,590) | 16,827 |
Deferred rent | 0 | 899 |
Net cash provided by operating activities | 31,666 | 66,894 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (49,705) | (29,715) |
Cash paid for acquisitions, net of cash acquired (Note 2) | (4,250) | (5,556) |
Purchases of short-term investments | (337,070) | (581,504) |
Proceeds from sale and maturity of short-term investments | 292,409 | 161,237 |
Capitalized software development costs | (4,463) | (3,810) |
Net cash used in investing activities | (103,079) | (459,348) |
Cash flows from financing activities: | ||
Investment from redeemable non-controlling interest | 978 | 3,596 |
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $11,582 | 0 | 488,669 |
Purchase of capped call related to convertible senior notes | 0 | (63,182) |
Proceeds from employee stock purchase plan | 5,933 | 4,887 |
Proceeds from exercise of employee stock options | 5,977 | 11,519 |
Net cash provided by financing activities | 12,888 | 445,489 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect, Total | (58,525) | 53,035 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 243,161 | 140,681 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 184,636 | 193,716 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest and income taxes | 3,868 | 683 |
Noncash investing and financing activities: | ||
Property and equipment purchased but not yet paid | 7,797 | 5,758 |
Acquisition holdback | $ 850 | $ 865 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Payments of debt issuance costs | $ 0 | $ 11,582 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business —New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company is a provider of an integrated, multi-tenant, cloud-based observability and analytics platform that enables users to collect, store and analyze massive amounts of data in real time. Basis of Presentation —These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019, as filed with the SEC on May 15, 2019 (the “Annual Report”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim period, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2020. The condensed consolidated balance sheet as of March 31, 2019 included herein was derived from the audited financial statements as of that date. Use of Estimates —The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, fair value of debt and equity components related to the 0.5% convertible senior notes due 2023 (the “Notes”), whether an arrangement is or contains a lease, the discount rate used for operating leases, useful lives of purchased intangible assets, unrecognized tax benefits, expected benefit period for deferred commissions and the capitalization and estimated useful life of the Company’s software development costs. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. Concentration of Risk —There was no customer that represented more than 10% of the Company’s accounts receivable balance as of December 31, 2019 or March 31, 2019. There was no customer that individually exceeded 10% of the Company’s revenue during the three or nine months ended December 31, 2019 or 2018. Summary of Significant Accounting Policies —Except for the accounting policies for operating leases that were updated as a result of adopting Accounting Standards Update (ASU) 2016-02, Leases , regarding Accounting Standards Codification Topic 842 (“ASC 842”), there have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, filed with the SEC on May 15, 2019. See Note 9—Leases for a summary of the Company’s new accounting policies under ASC 842. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The updated guidance requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statement of income. The update to the standard will be effective for the Company in the fiscal year beginning April 1, 2020. The Company has not yet adopted ASU 2016-13 and is currently evaluating the effect the standard will have on its condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test. This standard is effective for goodwill impairment tests performed by the Company in the fiscal year beginning April 1, 2020. The Company has not yet adopted ASU 2017-04 and does not believe that this standard will have a material impact on its condensed consolidated financial statements or disclosures. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update to the standard will be effective for the Company in the fiscal year beginning April 1, 2020. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company has not yet adopted ASU 2018-13 and is currently evaluating the effect the standard will have on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which superseded previous guidance related to accounting for leases . This new guidance requires lessees to recognize most leases on their balance sheets as lease right-of-use assets with corresponding lease liabilities and eliminates certain real estate-specific provisions. In July 2018, the FASB also issued ASU No. 2018-11, Leases (Topic 842). The ASU provides an optional transition method that entities can use when adopting the standard and a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. The new guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted ASC 842 on April 1, 2019 using a modified retrospective method, under which financial results reported in periods prior to April 1, 2019 were not adjusted. The Company elected the package of transition practical expedients, which among other things, does not require reassessment of historical lease classifications of leases in place as of April 1, 2019. The effect of adopting ASC 842 resulted in the recognition of lease right-of-use assets and corresponding lease liabilities on the Company’s condensed consolidated balance sheet. As of June 30, 2019, the first quarter of adoption, the aggregate balance of lease right-of-use assets and lease liabilities was $64.2 million and $71.6 million, respectively. The standard did not affect the Company’s condensed consolidated statement of operations or cash flows. In June 2018, the FASB issued ASU 2018-07, regarding Compensation—Stock Compensation (Topic 718) , which largely aligns the accounting for share-based compensation for non-employees with employees. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this standard on April 1, 2019. The adoption did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, regarding Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. The Company adopted the standard on April 1, 2019. The adoption did not have a significant impact on its condensed consolidated financial statements. |
Business Combinations
Business Combinations | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations IOpipe, Inc. On October 31, 2019, the Company acquired certain assets of IOpipe, Inc., a company that provides monitoring tools for serverless applications, for $5.1 million in cash. The Company held back approximately $0.9 million from the aggregate purchase price which has been accrued as a liability. Of the total purchase price, $1.5 million was allocated to acquired technology with an estimated useful life of three years with the excess $3.6 million of the purchase price over the fair value of the intangible assets acquired recorded as goodwill. The acquisition has been accounted for as a business combination under the acquisition method. Goodwill and other intangibles generated from the acquisition are attributable to expected synergies from future growth and potential future monetization opportunities, and are deductible for tax purposes. The business combination did not have a material impact on the condensed consolidated financial statements and therefore historical and proforma disclosures have not been presented. SignifAI, Inc. On January 25, 2019, the Company acquired all outstanding stock of SignifAI, Inc. (“SignifAI”), an event intelligence company specializing in artificial intelligence and machine learning. The aggregate purchase price of $36.3 million consisted of $25.1 million in cash and 143,861 shares of Company common stock with an aggregate fair value of approximately $11.9 million. The fair value of the consideration transferred was determined based on an $82.69 per share price of the Company’s common stock. The total purchase price was allocated to the developed technology acquired, net liabilities assumed, deferred taxes related to net operating loss carryforwards and a deferred tax liability related to the developed technology. The excess purchase price was recorded as goodwill, as set forth below. The acquisition has been accounted for as a business combination. The business combination did not have a material impact on the condensed consolidated financial statements and therefore historical and proforma disclosures have not been presented. Per the terms of the merger agreement, all share-based payment awards were accelerated and paid for in cash. The cash consideration paid for unvested share-based payment awards of $0.8 million was recognized as compensation expense separate from the business combination. The acquisition also included a holdback arrangement with certain employees of SignifAI, totaling approximately 152,840 shares of the Company’s common stock, contingent upon such employees’ continued employment with the Company. The fair value of these awards, which are subject to the recipients’ continued service, was $12.6 million and was excluded from the aggregate purchase price. These awards will be recognized as stock-based compensation expense over the remaining vesting period which ranges from 24 months to 36 months from the closing date of the acquisition. The following table presents the purchase price allocation related to the acquisition (in thousands): Cash consideration paid $ 25,119 Fair value of common shares issued $ 24,535 Total consideration $ 49,654 Post-business combination compensation expense $ (12,639) Cash paid to settle unvested stock options $ (764) Total purchase price $ 36,251 Net liabilities assumed $ 259 Deferred tax liabilities $ 2,289 Deferred tax assets $ (1,721) Developed technology acquired $ (10,900) Goodwill $ 26,178 CoScale NV On October 9, 2018, the Company acquired certain assets of CoScale NV (“CoScale”), a public limited liability company organized and existing under the laws of Belgium that provides solutions for monitoring the performance of software container environments for $6.3 million in cash. The Company held back approximately $0.9 million from the aggregate purchase price. Of the total purchase price, $2.9 million was allocated to acquired technology with an estimated useful life of three years, with the excess $3.4 million of the purchase price over the fair value of intangible assets acquired recorded as goodwill. The acquisition has been accounted for as a business combination under the acquisition method. Goodwill and other intangibles generated from the acquisition are attributable to expected synergies from future growth and potential future monetization opportunities, and are deductible for tax purposes. The business combination did not have a material impact on the Company's condensed consolidated financial statements and therefore historical and proforma disclosures have not been presented. |
Joint Venture
Joint Venture | 9 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | Joint Venture On July 13, 2018, the Company entered into an agreement with Japan Cloud Computing L.P. (“JCC”) and M30 LLC (collectively, the Investors) to engage in the investment, organization, management and operation of New Relic K.K., a Japanese subsidiary of the Company that is focused on the sale of the Company’s products and services in Japan. On August 21, 2018, the Investors initially contributed approximately $3.6 million ($396,000,000 Japanese Yen) in exchange for 40% of the outstanding common stock of New Relic K.K. On August 21, 2019, the Company and Investors additionally contributed approximately $1.5 million (156,000,000 Japanese Yen) and approximately $1.0 million (104,000,000 Japanese Yen), respectively, to subscribe to additional shares. As of December 31, 2019, the Company owned approximately 60% of the outstanding common stock in New Relic K.K. All of the common stock held by the Investors may be callable by the Company or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the discrete revenues of New Relic K.K. and the Company and may be settled, at the Company’s discretion, with Company stock or cash. As a result of the put right available to the redeemable non-controlling interest holders in the future, the redeemable non-controlling interest in New Relic K.K. is classified outside of permanent equity in the Company’s consolidated balance sheet as of December 31, 2019, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses, or its estimated redemption value. The resulting changes in the estimated redemption amount are recorded within retained earnings or, in the absence of retained earnings, additional paid-in-capital. The estimated redemption value of the call/put option embedded in the redeemable non-controlling interest was $0 at December 31, 2019. The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below: Balance as of March 31, 2019 $ 2,733 Investment by redeemable non-controlling interest 978 Net loss attributable to redeemable non-controlling interest (1,437) Balance as of December 31, 2019 $ 2,274 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2019 and March 31, 2019 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 101,431 $ — $ — $ 101,431 Commercial paper — 5,647 — 5,647 Short-term investments: Certificates of deposit — 30,066 — 30,066 Commercial paper — 13,224 — 13,224 Corporate notes and bonds — 48,421 — 48,421 U.S. treasury securities 456,340 — — 456,340 U.S. government agencies — 9,611 — 9,611 Restricted cash: Money market funds 5,639 — — 5,639 Total $ 563,410 $ 106,969 $ — $ 670,379 Included in cash and cash equivalents $ 107,078 Included in short-term investments $ 557,662 Included in restricted cash $ 5,639 Fair Value Measurements as of March 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 133,239 $ — $ — $ 133,239 Commercial paper — 9,973 — 9,973 Short-term investments: Certificates of deposit — 24,726 — 24,726 Commercial paper — 37,071 — 37,071 Corporate notes and bonds — 27,259 — 27,259 U.S. treasury securities 402,091 — — 402,091 U.S. government agencies — 19,225 — 19,225 Restricted cash: Money market funds 8,805 — — 8,805 Total $ 544,135 $ 118,254 $ — $ 662,389 Included in cash and cash equivalents $ 143,212 Included in short-term investments $ 510,372 Included in restricted cash $ 8,805 There were no transfers between fair value measurement levels during the nine months ended December 31, 2019 and 2018. Gross unrealized gains or losses for cash equivalents and short-term investments as of December 31, 2019 and March 31, 2019 were not significant. As of December 31, 2019 and March 31, 2019, there were no securities that were in an unrealized loss position for more than 12 months. The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of December 31, 2019 and March 31, 2019 (in thousands): December 31, 2019 March 31, 2019 Due within one year $ 316,984 $ 346,768 Due after one year and within three years 240,678 163,604 Total $ 557,662 $ 510,372 For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. Convertible Senior Notes As of December 31, 2019, the fair value of the 0.50% convertible senior notes due 2023 (the “Notes”) was $442.8 million. The fair value was determined based on the quoted price of the Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy. |
Contract Acquisition Costs
Contract Acquisition Costs | 9 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Acquisition Costs | Contract Acquisition CostsThe Company capitalizes certain contract acquisition costs primarily consisting of commissions. The balances of deferred costs to obtain customer contracts were $55.1 million and $53.4 million as of December 31, 2019 and March 31, 2019, respectively. In the three months ended December 31, 2019 and 2018, amortization from amounts capitalized was $8.3 million and $6.7 million, respectively. In the nine months ended December 31, 2019 and 2018 amortization from amounts capitalized was $24.0 million and $18.5 million, respectively. In the three months ended December 31, 2019 and 2018 amounts expensed as incurred were $3.6 million and $2.3 million, respectively. In the nine months ended December 31, 2019 and 2018 amounts expensed as incurred were $8.2 million and $5.5 million, respectively. The Company had no impairment loss in relation to costs capitalized.Deferred Revenue and Performance Obligations During the three months ended December 31, 2019 and 2018, $118.7 million and $90.5 million of revenue was recognized that was included in the deferred revenue balances at the beginning of each period, respectively, and $242.2 million and $169.3 million during the nine months ended December 31, 2019 and 2018, respectively. The aggregate unrecognized transaction price of remaining performance obligations as of December 31, 2019 was $489.2 million. The Company expects to recognize more than 94% of the balance as revenue in the 24 months following December 31, 2019 and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized and does not include contract amounts which are cancelable by the customer and amounts associated with optional renewal periods. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, consisted of the following (in thousands): December 31, 2019 March 31, 2019 Computers, software, and equipment $ 12,945 $ 11,245 Site operation equipment 102,995 66,727 Furniture and fixtures 4,659 3,990 Leasehold improvements 37,839 40,541 Capitalized software development costs 47,815 43,063 Total property and equipment 206,253 165,566 Less: accumulated depreciation and amortization (101,213) (84,824) Total property and equipment, net $ 105,040 $ 80,742 Depreciation and amortization expense related to property and equipment was $10.2 million and $6.5 million for the three months ended December 31, 2019 and 2018, respectively, and $30.8 million and $18.7 million for the nine months ended December 31, 2019 and 2018, respectively. |
0.5% Convertible Senior Notes a
0.5% Convertible Senior Notes and Capped Call | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes and Capped Call | 0.5% Convertible Senior Notes and Capped CallIn May 2018, the Company issued $500.25 million in aggregate principal amount of Notes in a private offering, including an additional $65.25 million aggregate principal amount of such Notes pursuant to the exercise in full of the initial purchasers’ over-allotment option. The Notes are the Company’s senior unsecured obligations and bear interest at a fixed rate of 0.5% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2018. The Notes will mature on May 1, 2023, unless earlier converted or repurchased. Each $1,000 principal amount of the Notes will initially be convertible into 9.02 shares of the Company’s common stock (the “Conversion Option”), which is equivalent to an initial conversion price of approximately $110.81 per share. The Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding November 1, 2022, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2018 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the indenture governing the Notes) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the Notes on each such trading day; or (3) upon the occurrence of specified corporate events as set forth in the indenture governing the Notes. On or after November 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the indenture governing the Notes. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the Notes. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate, in certain circumstances, for a holder who elects to convert its Notes in connection with such a corporate event. During the three and nine months ended December 31, 2019, the conditions allowing holders of the Notes to convert had not been met. The Notes were therefore not convertible during the three and nine months ended December 31, 2019 and were classified as long-term debt for such period. In accounting for the transaction, the Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the Conversion Option was $102.5 million and was determined by deducting the fair value of the liability component from the proceeds received upon issuance of the Notes. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Notes over the liability component (the “Debt Discount”) and the debt issuance costs are amortized to interest expense over the contractual term of the Notes at an effective interest rate of 5.74%. This rate is inclusive of the issuance costs. In accounting for the debt issuance costs of $11.6 million related to the Notes, the Company allocated the total amount incurred to the liability and equity components using the same proportions as the proceeds of the Notes. Issuance costs attributable to the liability component were $9.2 million and will be amortized to interest expense using the effective interest method over the contractual term of the Notes. Issuance costs attributable to the equity component were $2.4 million and netted with the equity component in additional paid-in capital. The net carrying amount of the liability component of the Notes was as follows (in thousands): December 31, 2019 March 31, 2019 Principal $ 500,250 $ 500,250 Unamortized debt discount (71,859) (86,374) Unamortized issuance costs (6,736) (7,939) Net carrying amount $ 421,655 $ 405,937 Interest expense related to the Notes was as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Amortization of debt discount $ 4,901 $ 4,654 $ 14,515 $ 11,421 Amortization of issuance costs 413 367 1,203 891 Contractual interest expense 625 625 1,876 1,549 Total interest expense $ 5,939 $ 5,646 $ 17,594 $ 13,861 |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangibles Assets | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangibles Assets | Goodwill and Purchased Intangibles Assets The changes in the carrying amount of goodwill for the nine months ended December 31, 2019 consist of the following (in thousands): Goodwill as of March 31, 2019 $ 41,512 Goodwill acquired 3,600 Goodwill as of December 31, 2019 $ 45,112 Purchased intangible assets subject to amortization as of December 31, 2019 consisted of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 15,316 $ (1,257) $ 14,059 Purchased intangible assets subject to amortization as of March 31, 2019 consisted of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 18,716 $ (4,861) $ 13,855 Amortization expense of purchased intangible assets was $0.4 million and $0.4 million for the three months ended December 31, 2019 and 2018, respectively, and $1.3 million and $0.8 million for the nine months ended December 31, 2019 and 2018, respectively. Estimated future amortization expense as of December 31, 2019 was as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2020 (remaining three months) $ 368 2021 5,105 2022 4,619 2023 3,967 $ 14,059 |
Leases
Leases | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space under non-cancelable operating leases, which expire from 2020 to 2028. All of its office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As these leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company considers information including, but not limited to, the lease term, the Company's credit rating and interest rates of similar debt instruments with comparable credit ratings. The lease right-of-use assets are also increased by any lease prepayments made and reduced by any lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that the Company will exercise the extension option. The Company’s operating leases typically include nonlease components such as common-area maintenance costs. The Company has elected to include nonlease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Nonlease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on the Company’s condensed consolidated balance sheet. The following table presents information about leases on the condensed consolidated balance sheet (in thousands): December 31, 2019 Assets Lease right-of-use-assets $ 59,838 Liabilities Lease liabilities $ 8,789 Lease liabilities, non-current 59,849 Total operating lease liabilities $ 68,638 As of December 31, 2019, the weighted average remaining lease term was 7.0 years and the weighted average discount rate was 6.7%. The following table presents information about leases on its condensed consolidated statement of operations (in thousands): Three Months Ended December 31, 2019 Nine Months Ended December 31, 2019 Operating lease expense $ 3,270 $ 10,940 Short-term lease expense 272 804 Variable lease expense 614 2,004 Rent expense for operating leases was $3.8 million and $11.4 million for the three and nine months ended December 31, 2018, respectively. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Nine Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 8,277 Operating lease assets obtained in exchange for new lease liabilities 1,586 As of December 31, 2019, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2020 (remaining three months) $ 3,162 2021 12,816 2022 11,937 2023 12,303 2024 11,400 2025 9,785 Thereafter 24,740 Total operating lease payments $ 86,143 Less imputed interest (17,505) Total operating lease liabilities $ 68,638 The table above excludes future payments of $6.5 million related to signed leases that have not yet commenced. These operating leases are expected to commence during 2020 with lease terms of 7.5 to 8.0 years. As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2019, and under previous lease accounting standard ASC 840, the aggregate future non-cancelable minimum rental payments on its operating leases, as of March 31, 2019, were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2020 $ 16,374 2021 16,155 2022 15,620 2023 16,105 2024 13,484 Thereafter 32,849 Total minimum future lease payments $ 110,587 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments —As of December 31, 2019 and March 31, 2019, the Company had purchase commitments of $73.3 million and $33.5 million, respectively, primarily related to data center, cloud and hosting services. Other Contingencies —In the normal course of business, the Company may agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims that the Company’s products when used for their intended purposes infringe the intellectual property rights of such other third parties, or other claims made against certain parties. To date, the Company has not incurred any costs as a result of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements. In addition, the Company indemnifies its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. The Company does not currently believe there is a reasonable possibility that a loss may have been incurred under these indemnification obligations. To date, there have been no claims under any such indemnification provisions. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 9 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Employee Stock Purchase Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), which became effective in December 2014. The ESPP initially reserved and authorized the issuance of up to 1,000,000 shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the ESPP automatically increases each April, beginning on April 1, 2015, by the lesser of 500,000 shares, 1% of the number of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. For the nine months ended December 31, 2019, 117,115 shares of common stock were purchased under the ESPP. For the nine months ended December 31, 2018, 82,851 shares of common stock were purchased under the ESPP. Stock-based compensation expense recognized related to the ESPP was $1.4 million and $1.0 million for the three months ended December 31, 2019 and 2018, respectively, and $4.1 million and $2.5 million for the nine months ended December 31, 2019 and 2018, respectively. As of December 31, 2019, there were 2,656,874 shares available for issuance under the ESPP. 2008 Equity Incentive Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the 2008 Equity Incentive Plan, or the 2008 Plan, in February 2008. The 2008 Plan was terminated in connection with the Company’s initial public offering (“IPO”), and accordingly, no shares are available for future issuance under this plan. The 2008 Plan continues to govern outstanding awards granted thereunder. 2014 Equity Incentive Plan —The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), which became effective in December 2014. The 2014 Plan serves as the successor to the Company’s 2008 Plan. The 2014 Plan initially reserved and authorized the issuance of 5,000,000 shares of the Company’s common stock. Additionally, shares not issued or subject to outstanding grants under the 2008 Plan upon its termination became available under the 2014 Plan, resulting in a total of 5,184,878 available shares under the 2014 Plan as of the effective date of the 2014 Plan. Pursuant to the terms of the 2014 Plan, any shares subject to outstanding stock options or other stock awards under the 2008 Plan that (i) expire or terminate for any reason prior to exercise or settlement, (ii) are forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award will become available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each April 1, beginning on April 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. As of December 31, 2019, there were 11,662,325 shares available for issuance under the 2014 Plan. The following table summarizes the Company’s stock option and RSU award activities for the nine months ended December 31, 2019 (in thousands, except exercise price, contractual term and fair value information): Options Outstanding RSUs Outstanding Number Weighted- Weighted- Aggregate Intrinsic Value Number Weighted- Weighted- Aggregate Intrinsic Value Outstanding - April 1, 2019 2,751 $ 35.10 6.3 $ 176,002 2,419 $ 76.34 3.0 $ 238,734 Stock options granted 779 75.87 RSUs granted 1,889 71.03 Stock options exercised (267) 25.39 13,835 RSUs vested (650) 64.29 Stock options canceled/forfeited (220) 79.90 RSUs canceled/forfeited (408) 76.73 Outstanding - December 31, 2019 3,043 $ 43.15 5.9 $ 87,479 3,250 $ 75.62 2.8 $ 213,517 Stock-Based Compensation Expense —Stock-based compensation expense was $26.0 million and $14.8 million for the three months ended December 31, 2019 and 2018, respectively, and $70.5 million and $39.6 million for the nine months ended December 31, 2019 and 2018, respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Cost of revenue $ 1,315 $ 934 $ 3,837 $ 2,522 Research and development 8,611 4,322 23,073 11,443 Sales and marketing 11,090 6,222 30,682 17,040 General and administrative 4,934 3,286 12,904 8,619 Total stock-based compensation expense $ 25,950 $ 14,764 $ 70,496 $ 39,624 As of December 31, 2019, unrecognized stock-based compensation cost related to outstanding unvested stock options was $30.9 million, which is expected to be recognized over a weighted-average period of approximately 2.9 years. As of December 31, 2019, unrecognized stock-based compensation cost related to outstanding unvested stock units was $230.5 million, which is expected to be recognized over a weighted-average period of approximately 2.7 years. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 9 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Contract Acquisition CostsThe Company capitalizes certain contract acquisition costs primarily consisting of commissions. The balances of deferred costs to obtain customer contracts were $55.1 million and $53.4 million as of December 31, 2019 and March 31, 2019, respectively. In the three months ended December 31, 2019 and 2018, amortization from amounts capitalized was $8.3 million and $6.7 million, respectively. In the nine months ended December 31, 2019 and 2018 amortization from amounts capitalized was $24.0 million and $18.5 million, respectively. In the three months ended December 31, 2019 and 2018 amounts expensed as incurred were $3.6 million and $2.3 million, respectively. In the nine months ended December 31, 2019 and 2018 amounts expensed as incurred were $8.2 million and $5.5 million, respectively. The Company had no impairment loss in relation to costs capitalized.Deferred Revenue and Performance Obligations During the three months ended December 31, 2019 and 2018, $118.7 million and $90.5 million of revenue was recognized that was included in the deferred revenue balances at the beginning of each period, respectively, and $242.2 million and $169.3 million during the nine months ended December 31, 2019 and 2018, respectively. The aggregate unrecognized transaction price of remaining performance obligations as of December 31, 2019 was $489.2 million. The Company expects to recognize more than 94% of the balance as revenue in the 24 months following December 31, 2019 and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized and does not include contract amounts which are cancelable by the customer and amounts associated with optional renewal periods. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely. The Company recorded an income tax provision of $0.9 million and a benefit of $0.1 million for the three months ended December 31, 2019 and 2018, respectively, and an income tax provision of $1.5 million and $0.4 million for the nine months ended December 31, 2019 and 2018, respectively, related to foreign income taxes and state minimum taxes. Based on the available objectively verifiable evidence during the three and nine months ended December 31, 2019, the Company believes it is more likely than not that the tax benefits of the U.S. losses and New Relic K.K losses incurred during the three and nine months ended December 31, 2019 may not be realized. Accordingly, the Company did not record the tax benefits for U.S. losses and New Relic K.K losses incurred during the three and nine months ended December 31, 2019. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months. The primary differences between the effective tax rate and the statutory tax rate relate to the change of valuation allowance, the effects of stock-based compensation and research tax credits. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee share-based awards and warrants. Diluted net loss per share is computed giving effect to all potential dilutive common shares, including common stock issuable upon exercise of stock options and unvested restricted common stock. As the Company had net losses for each of the three and nine months ended December 31, 2019 and 2018, all potential common shares were determined to be anti-dilutive, resulting in basic and diluted net loss per share being equal. Additionally, the 4.5 million shares underlying the conversion option in the Notes were not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. The Notes were not convertible as of December 31, 2019. The Company expects to settle the principal amount of the Notes in cash and therefore will use the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Numerator: Net loss attributable to New Relic $ (27,195) $ (10,103) $ (60,978) $ (24,054) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 58,733 57,096 58,352 56,663 Net loss attributable to New Relic per share—basic and diluted $ (0.46) $ (0.18) $ (1.05) $ (0.42) The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of December 31, 2019 2018 Options to purchase common stock 3,043 2,874 Restricted stock units 3,250 1,891 ESPP shares 132 62 6,425 4,827 |
Revenue by Geographic Location
Revenue by Geographic Location | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue by Geographic Location | Revenue by Geographic Location The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 United States $ 103,673 $ 84,731 $ 299,544 $ 237,099 EMEA 27,121 22,533 78,024 63,752 APAC 14,033 10,086 39,181 27,551 Other 8,201 6,661 23,104 18,726 Total revenue $ 153,028 $ 124,011 $ 439,853 $ 347,128 Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of December 31, 2019 and March 31, 2019. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business —New Relic, Inc. (the “Company” or “New Relic”) was incorporated in Delaware on February 20, 2008, when it converted from a Delaware limited liability company called New Relic Software, LLC, which was formed in Delaware in September 2007. The Company is a provider of an integrated, multi-tenant, cloud-based observability and analytics platform that enables users to collect, store and analyze massive amounts of data in real time. |
Basis of Presentation | Basis of Presentation —These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019, as filed with the SEC on May 15, 2019 (the “Annual Report”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim period, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending March 31, 2020. The condensed consolidated balance sheet as of March 31, 2019 included herein was derived from the audited financial statements as of that date. |
Use of Estimates | Use of Estimates —The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. Significant items subject to such estimates and assumptions include the fair value of share-based awards, fair value of purchased intangible assets and goodwill, fair value of debt and equity components related to the 0.5% convertible senior notes due 2023 (the “Notes”), whether an arrangement is or contains a lease, the discount rate used for operating leases, useful lives of purchased intangible assets, unrecognized tax benefits, expected benefit period for deferred commissions and the capitalization and estimated useful life of the Company’s software development costs. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates. |
Concentration of Risk | Concentration of Risk —There was no customer that represented more than 10% of the Company’s accounts receivable balance as of December 31, 2019 or March 31, 2019. There was no customer that individually exceeded 10% of the Company’s revenue during the three or nine months ended December 31, 2019 or 2018. |
Recently Issued Accounting Pronouncements Not Yet Adopted and Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The updated guidance requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statement of income. The update to the standard will be effective for the Company in the fiscal year beginning April 1, 2020. The Company has not yet adopted ASU 2016-13 and is currently evaluating the effect the standard will have on its condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test. This standard is effective for goodwill impairment tests performed by the Company in the fiscal year beginning April 1, 2020. The Company has not yet adopted ASU 2017-04 and does not believe that this standard will have a material impact on its condensed consolidated financial statements or disclosures. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update to the standard will be effective for the Company in the fiscal year beginning April 1, 2020. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company has not yet adopted ASU 2018-13 and is currently evaluating the effect the standard will have on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which superseded previous guidance related to accounting for leases . This new guidance requires lessees to recognize most leases on their balance sheets as lease right-of-use assets with corresponding lease liabilities and eliminates certain real estate-specific provisions. In July 2018, the FASB also issued ASU No. 2018-11, Leases (Topic 842). The ASU provides an optional transition method that entities can use when adopting the standard and a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. The new guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted ASC 842 on April 1, 2019 using a modified retrospective method, under which financial results reported in periods prior to April 1, 2019 were not adjusted. The Company elected the package of transition practical expedients, which among other things, does not require reassessment of historical lease classifications of leases in place as of April 1, 2019. The effect of adopting ASC 842 resulted in the recognition of lease right-of-use assets and corresponding lease liabilities on the Company’s condensed consolidated balance sheet. As of June 30, 2019, the first quarter of adoption, the aggregate balance of lease right-of-use assets and lease liabilities was $64.2 million and $71.6 million, respectively. The standard did not affect the Company’s condensed consolidated statement of operations or cash flows. In June 2018, the FASB issued ASU 2018-07, regarding Compensation—Stock Compensation (Topic 718) , which largely aligns the accounting for share-based compensation for non-employees with employees. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted this standard on April 1, 2019. The adoption did not have a significant impact on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, regarding Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. The Company adopted the standard on April 1, 2019. The adoption did not have a significant impact on its condensed consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Aggregate Purchase Price Allocation | The following table presents the purchase price allocation related to the acquisition (in thousands): Cash consideration paid $ 25,119 Fair value of common shares issued $ 24,535 Total consideration $ 49,654 Post-business combination compensation expense $ (12,639) Cash paid to settle unvested stock options $ (764) Total purchase price $ 36,251 Net liabilities assumed $ 259 Deferred tax liabilities $ 2,289 Deferred tax assets $ (1,721) Developed technology acquired $ (10,900) Goodwill $ 26,178 |
Joint Venture (Tables)
Joint Venture (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Redeemable Non-Controlling Interest | The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below: Balance as of March 31, 2019 $ 2,733 Investment by redeemable non-controlling interest 978 Net loss attributable to redeemable non-controlling interest (1,437) Balance as of December 31, 2019 $ 2,274 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Information about Financial Assets Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2019 and March 31, 2019 based on the three-tier fair value hierarchy (in thousands): Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 101,431 $ — $ — $ 101,431 Commercial paper — 5,647 — 5,647 Short-term investments: Certificates of deposit — 30,066 — 30,066 Commercial paper — 13,224 — 13,224 Corporate notes and bonds — 48,421 — 48,421 U.S. treasury securities 456,340 — — 456,340 U.S. government agencies — 9,611 — 9,611 Restricted cash: Money market funds 5,639 — — 5,639 Total $ 563,410 $ 106,969 $ — $ 670,379 Included in cash and cash equivalents $ 107,078 Included in short-term investments $ 557,662 Included in restricted cash $ 5,639 Fair Value Measurements as of March 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Money market funds $ 133,239 $ — $ — $ 133,239 Commercial paper — 9,973 — 9,973 Short-term investments: Certificates of deposit — 24,726 — 24,726 Commercial paper — 37,071 — 37,071 Corporate notes and bonds — 27,259 — 27,259 U.S. treasury securities 402,091 — — 402,091 U.S. government agencies — 19,225 — 19,225 Restricted cash: Money market funds 8,805 — — 8,805 Total $ 544,135 $ 118,254 $ — $ 662,389 Included in cash and cash equivalents $ 143,212 Included in short-term investments $ 510,372 Included in restricted cash $ 8,805 |
Classification of Available-for-Sale Short-Term Investments by Contractual Maturities | The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of December 31, 2019 and March 31, 2019 (in thousands): December 31, 2019 March 31, 2019 Due within one year $ 316,984 $ 346,768 Due after one year and within three years 240,678 163,604 Total $ 557,662 $ 510,372 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): December 31, 2019 March 31, 2019 Computers, software, and equipment $ 12,945 $ 11,245 Site operation equipment 102,995 66,727 Furniture and fixtures 4,659 3,990 Leasehold improvements 37,839 40,541 Capitalized software development costs 47,815 43,063 Total property and equipment 206,253 165,566 Less: accumulated depreciation and amortization (101,213) (84,824) Total property and equipment, net $ 105,040 $ 80,742 |
0.5% Convertible Senior Notes_2
0.5% Convertible Senior Notes and Capped Call (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The net carrying amount of the liability component of the Notes was as follows (in thousands): December 31, 2019 March 31, 2019 Principal $ 500,250 $ 500,250 Unamortized debt discount (71,859) (86,374) Unamortized issuance costs (6,736) (7,939) Net carrying amount $ 421,655 $ 405,937 |
Summary of Interest Expense | Interest expense related to the Notes was as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Amortization of debt discount $ 4,901 $ 4,654 $ 14,515 $ 11,421 Amortization of issuance costs 413 367 1,203 891 Contractual interest expense 625 625 1,876 1,549 Total interest expense $ 5,939 $ 5,646 $ 17,594 $ 13,861 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangibles Assets (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the nine months ended December 31, 2019 consist of the following (in thousands): Goodwill as of March 31, 2019 $ 41,512 Goodwill acquired 3,600 Goodwill as of December 31, 2019 $ 45,112 |
Schedule of Purchased Intangible Assets Subject to Amortization | Purchased intangible assets subject to amortization as of December 31, 2019 consisted of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 15,316 $ (1,257) $ 14,059 Purchased intangible assets subject to amortization as of March 31, 2019 consisted of the following (in thousands): Gross Carrying Accumulated Net Carrying Developed technology $ 18,716 $ (4,861) $ 13,855 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense as of December 31, 2019 was as follows (in thousands): Fiscal Years Ending March 31, Estimated Future Amortization Expense 2020 (remaining three months) $ 368 2021 5,105 2022 4,619 2023 3,967 $ 14,059 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Condensed Consolidated Balance Sheet | The following table presents information about leases on the condensed consolidated balance sheet (in thousands): December 31, 2019 Assets Lease right-of-use-assets $ 59,838 Liabilities Lease liabilities $ 8,789 Lease liabilities, non-current 59,849 Total operating lease liabilities $ 68,638 |
Schedule of Condensed Consolidated Statement of Operations and Supplemental Cash Flow Information | The following table presents information about leases on its condensed consolidated statement of operations (in thousands): Three Months Ended December 31, 2019 Nine Months Ended December 31, 2019 Operating lease expense $ 3,270 $ 10,940 Short-term lease expense 272 804 Variable lease expense 614 2,004 Rent expense for operating leases was $3.8 million and $11.4 million for the three and nine months ended December 31, 2018, respectively. The following table presents supplemental cash flow information about the Company’s leases (in thousands): Nine Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 8,277 Operating lease assets obtained in exchange for new lease liabilities 1,586 |
Summary of Operating Lease Maturity Under Topic 842 | As of December 31, 2019, remaining maturities of lease liabilities were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2020 (remaining three months) $ 3,162 2021 12,816 2022 11,937 2023 12,303 2024 11,400 2025 9,785 Thereafter 24,740 Total operating lease payments $ 86,143 Less imputed interest (17,505) Total operating lease liabilities $ 68,638 |
Summary of Future Minimum Lease Payments Under Topic 840 | As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2019, and under previous lease accounting standard ASC 840, the aggregate future non-cancelable minimum rental payments on its operating leases, as of March 31, 2019, were as follows (in thousands): Fiscal Years Ending March 31, Operating Leases 2020 $ 16,374 2021 16,155 2022 15,620 2023 16,105 2024 13,484 Thereafter 32,849 Total minimum future lease payments $ 110,587 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stock Option and RSU Award Activities | The following table summarizes the Company’s stock option and RSU award activities for the nine months ended December 31, 2019 (in thousands, except exercise price, contractual term and fair value information): Options Outstanding RSUs Outstanding Number Weighted- Weighted- Aggregate Intrinsic Value Number Weighted- Weighted- Aggregate Intrinsic Value Outstanding - April 1, 2019 2,751 $ 35.10 6.3 $ 176,002 2,419 $ 76.34 3.0 $ 238,734 Stock options granted 779 75.87 RSUs granted 1,889 71.03 Stock options exercised (267) 25.39 13,835 RSUs vested (650) 64.29 Stock options canceled/forfeited (220) 79.90 RSUs canceled/forfeited (408) 76.73 Outstanding - December 31, 2019 3,043 $ 43.15 5.9 $ 87,479 3,250 $ 75.62 2.8 $ 213,517 |
Schedule of Stock-based Compensation Expense Attributed to Cost of Revenue, Research and Development, Sales and Marketing and General and Administrative Expenses | Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Cost of revenue $ 1,315 $ 934 $ 3,837 $ 2,522 Research and development 8,611 4,322 23,073 11,443 Sales and marketing 11,090 6,222 30,682 17,040 General and administrative 4,934 3,286 12,904 8,619 Total stock-based compensation expense $ 25,950 $ 14,764 $ 70,496 $ 39,624 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Net Loss Per Share, Basic and Diluted | The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Numerator: Net loss attributable to New Relic $ (27,195) $ (10,103) $ (60,978) $ (24,054) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 58,733 57,096 58,352 56,663 Net loss attributable to New Relic per share—basic and diluted $ (0.46) $ (0.18) $ (1.05) $ (0.42) |
Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents | The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands): As of December 31, 2019 2018 Options to purchase common stock 3,043 2,874 Restricted stock units 3,250 1,891 ESPP shares 132 62 6,425 4,827 |
Revenue by Geographic Location
Revenue by Geographic Location (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Areas | The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 United States $ 103,673 $ 84,731 $ 299,544 $ 237,099 EMEA 27,121 22,533 78,024 63,752 APAC 14,033 10,086 39,181 27,551 Other 8,201 6,661 23,104 18,726 Total revenue $ 153,028 $ 124,011 $ 439,853 $ 347,128 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) | Dec. 31, 2019 | May 31, 2018 |
Convertible Debt | Convertible Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 0.50% | 0.50% |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements Not Yet Adopted (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease right-of-use assets | $ 59,838 | |
Total operating lease liabilities | $ 68,638 | |
ASU 2018-01 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease right-of-use assets | $ 64,200 | |
Total operating lease liabilities | $ 71,600 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 31, 2019 | Jan. 25, 2019 | Oct. 09, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||||||
Preliminary purchase price allocation, goodwill | $ 45,112 | $ 45,112 | $ 41,512 | |||||
Stock-based compensation expense | $ 25,950 | $ 14,764 | $ 70,496 | $ 39,624 | ||||
IOpipe, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration paid | $ 5,100 | |||||||
Amount excluded from the aggregate purchase price | 900 | |||||||
Preliminary purchase price allocation, goodwill | 3,600 | |||||||
IOpipe, Inc. | Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired technology | $ 1,500 | |||||||
Acquired technology, estimated useful life | 3 years | |||||||
SignifAI, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration paid | $ 25,119 | |||||||
Amount excluded from the aggregate purchase price | 12,600 | |||||||
Preliminary purchase price allocation, goodwill | 26,178 | |||||||
Consideration paid | $ 36,251 | |||||||
Number of shares issued to acquire capital stock (in shares) | 143,861 | |||||||
Aggregate fair value of common stock | $ 11,900 | |||||||
Fair value of shares issued to acquire capital stock (in usd per share) | $ 82.69 | |||||||
Stock-based compensation expense | $ 800 | |||||||
Holdback arrangement, common stock (in shares) | 152,840 | |||||||
SignifAI, Inc. | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Vesting period | 24 months | |||||||
SignifAI, Inc. | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Vesting period | 36 months | |||||||
CoScale NV | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration paid | $ 6,300 | |||||||
Amount excluded from the aggregate purchase price | 900 | |||||||
Preliminary purchase price allocation, goodwill | 3,400 | |||||||
CoScale NV | Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired technology | $ 2,900 | |||||||
Acquired technology, estimated useful life | 3 years |
Business Combinations - Schedul
Business Combinations - Schedule of Aggregate Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jan. 25, 2019 | Dec. 31, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 45,112 | $ 41,512 | |
SignifAI, Inc. | |||
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 25,119 | ||
Fair value of common shares issued | 24,535 | ||
Total consideration | 49,654 | ||
Post-business combination compensation expense | (12,639) | ||
Cash paid to settle unvested stock options | (764) | ||
Total purchase price | 36,251 | ||
Net liabilities assumed | 259 | ||
Deferred tax liabilities | 2,289 | ||
Deferred tax assets | (1,721) | ||
Developed technology acquired | (10,900) | ||
Goodwill | $ 26,178 |
Joint Venture - Narrative (Deta
Joint Venture - Narrative (Details) ¥ in Millions | Aug. 21, 2019USD ($) | Aug. 21, 2019JPY (¥) | Aug. 21, 2018USD ($) | Aug. 21, 2018JPY (¥) | Dec. 31, 2019USD ($) | Aug. 21, 2019JPY (¥) |
Schedule of Equity Method Investments [Line Items] | ||||||
Additional investor contribution | $ 1,500,000 | ¥ 156 | ||||
Redemption value of redeemable non-controlling interest | $ 0 | |||||
New Relic K.K | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage, parent | 60.00% | |||||
The Investors | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Contributions for joint venture | $ 1,000,000 | ¥ 104 | $ 3,600,000 | ¥ 396 | ||
The Investors | New Relic K.K | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage, noncontrolling interest | 40.00% | 40.00% |
Joint Venture - Schedule of Red
Joint Venture - Schedule of Redeemable Non-Controlling Interest (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance as of March 31, 2019 | $ 2,733 |
Investment by redeemable non-controlling interest | 978 |
Net loss attributable to redeemable non-controlling interest | (1,437) |
Balance as of December 31, 2019 | $ 2,274 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 670,379 | $ 662,389 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 107,078 | 143,212 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 557,662 | 510,372 |
Restricted cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,639 | 8,805 |
Money market funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 101,431 | 133,239 |
Commercial paper | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,647 | 9,973 |
Commercial paper | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 13,224 | 37,071 |
Certificates of deposit | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 30,066 | 24,726 |
Corporate notes and bonds | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 48,421 | 27,259 |
U.S. treasury securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 456,340 | 402,091 |
U.S. government agencies | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 9,611 | 19,225 |
Money market funds | Restricted cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,639 | 8,805 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 563,410 | 544,135 |
Level 1 | Money market funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 101,431 | 133,239 |
Level 1 | Commercial paper | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Commercial paper | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Certificates of deposit | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Corporate notes and bonds | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | U.S. treasury securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 456,340 | 402,091 |
Level 1 | U.S. government agencies | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Money market funds | Restricted cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,639 | 8,805 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 106,969 | 118,254 |
Level 2 | Money market funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | Commercial paper | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 5,647 | 9,973 |
Level 2 | Commercial paper | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 13,224 | 37,071 |
Level 2 | Certificates of deposit | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 30,066 | 24,726 |
Level 2 | Corporate notes and bonds | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 48,421 | 27,259 |
Level 2 | U.S. treasury securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | U.S. government agencies | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 9,611 | 19,225 |
Level 2 | Money market funds | Restricted cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Money market funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Commercial paper | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Commercial paper | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Certificates of deposit | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Corporate notes and bonds | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | U.S. treasury securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | U.S. government agencies | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Money market funds | Restricted cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | May 31, 2018 |
Debt Instrument [Line Items] | |||
Unrealized loss position of securities for more than 12 months | $ 0 | $ 0 | |
Convertible Debt | Convertible Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 0.50% | 0.50% | |
Convertible Debt | Level 2 | Convertible Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Fair value of Notes | $ 442,800,000 |
Fair Value Measurements - Class
Fair Value Measurements - Classification of Available-for-Sale Short-Term Investments by Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Due within one year | $ 316,984 | $ 346,768 |
Due after one year and within three years | 240,678 | 163,604 |
Total | $ 557,662 | $ 510,372 |
Contract Acquisition Costs (Det
Contract Acquisition Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Capitalized contract cost | $ 55,100,000 | $ 55,100,000 | $ 53,400,000 | ||
Capitalized contract cost, amortization | 8,300,000 | $ 6,700,000 | 24,000,000 | $ 18,500,000 | |
Costs expensed as incurred | 3,600,000 | 2,300,000 | 8,200,000 | 5,500,000 | |
Contract asset impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 206,253 | $ 165,566 |
Less: accumulated depreciation and amortization | (101,213) | (84,824) |
Total property and equipment, net | 105,040 | 80,742 |
Computers, software, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,945 | 11,245 |
Site operation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 102,995 | 66,727 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,659 | 3,990 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 37,839 | 40,541 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 47,815 | $ 43,063 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 10.2 | $ 6.5 | $ 30.8 | $ 18.7 |
0.5% Convertible Senior Notes_3
0.5% Convertible Senior Notes and Capped Call - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 6 Months Ended | 9 Months Ended | ||
May 31, 2018USD ($)day$ / sharesshares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Purchase of capped calls | $ 63,200,000 | $ 63,182,000 | |||
Additional Paid-In Capital | |||||
Debt Instrument [Line Items] | |||||
Purchase of capped calls | $ 63,182,000 | ||||
Capped Calls | |||||
Debt Instrument [Line Items] | |||||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 110.81 | ||||
Initial cap price (in dollars per share) | $ / shares | $ 173.82 | ||||
Number of shares covered by cap call (in shares) | shares | 4.5 | ||||
Capped Calls | Additional Paid-In Capital | |||||
Debt Instrument [Line Items] | |||||
Cost incurred related to capped calls | $ 63,200,000 | ||||
Convertible Debt | Notes Price Trigger Measurement | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 5 | ||||
Threshold percentage of stock price trigger (less than) | 130.00% | ||||
Convertible Debt | Stock Price Trigger Measurement | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 5 | ||||
Threshold consecutive trading days | day | 30 | ||||
Threshold percentage of stock price trigger (less than) | 98.00% | ||||
Convertible Debt | Convertible Senior Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 500,250,000 | ||||
Stated interest rate | 0.50% | 0.50% | |||
Convertible debt, conversion ratio | 9.02 | ||||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 110.81 | ||||
Debt discount for Conversion Option | $ 102,500,000 | ||||
Effective interest rate | 5.74% | ||||
Issuance costs | $ 11,600,000 | $ 6,736,000 | $ 7,939,000 | ||
Debt issuance costs, equity component | 9,200,000 | ||||
Unamortized discount issuance costs | 2,400,000 | ||||
Convertible Debt | Convertible Senior Notes Due 2023, Over-Allotment Option | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 65,250,000 |
0.5% Convertible Senior Notes_4
0.5% Convertible Senior Notes and Capped Call - Schedule of Liability Component of Convertible Debt (Details) - Convertible Debt - Convertible Senior Notes Due 2023 - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | May 31, 2018 |
Debt Instrument [Line Items] | |||
Principal | $ 500,250 | $ 500,250 | |
Unamortized debt discount | (71,859) | (86,374) | |
Unamortized issuance costs | (6,736) | (7,939) | $ (11,600) |
Net carrying amount | $ 421,655 | $ 405,937 |
0.5% Convertible Senior Notes_5
0.5% Convertible Senior Notes and Capped Call - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Total interest expense | $ 5,939 | $ 5,646 | $ 17,594 | $ 13,861 |
Convertible Debt | Convertible Senior Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt discount | 4,901 | 4,654 | 14,515 | 11,421 |
Amortization of issuance costs | 413 | 367 | 1,203 | 891 |
Contractual interest expense | $ 625 | $ 625 | $ 1,876 | $ 1,549 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of March 31, 2019 | $ 41,512 |
Goodwill acquired | 3,600 |
Goodwill as of December 31, 2019 | $ 45,112 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangibles Assets - Schedule of Purchased Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 14,059 | $ 13,855 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,316 | 18,716 |
Accumulated Amortization | (1,257) | (4,861) |
Net Carrying Amount | $ 14,059 | $ 13,855 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangibles Assets - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 0.4 | $ 0.4 | $ 1.3 | $ 0.8 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangibles Assets - Schedule of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 (remaining three months) | $ 368 | |
2021 | 5,105 | |
2022 | 4,619 | |
2023 | 3,967 | |
Net Carrying Amount | $ 14,059 | $ 13,855 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets | |
Lease right-of-use assets | $ 59,838 |
Liabilities | |
Lease liabilities | 8,789 |
Lease liabilities, non-current | 59,849 |
Total operating lease liabilities | $ 68,638 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 7 years | ||
Weighted average discount rate | 6.70% | ||
Rent expense | $ 3.8 | $ 11.4 | |
Signed leases not yet commenced | $ 6.5 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 7 years 6 months | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 8 years |
Leases - Expense (Details)
Leases - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 3,270 | $ 10,940 |
Short-term lease expense | 272 | 804 |
Variable lease expense | $ 614 | $ 2,004 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 8,277 |
Operating lease assets obtained in exchange for new lease liabilities | $ 1,586 |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity Schedule (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 (remaining three months) | $ 3,162 |
2021 | 12,816 |
2022 | 11,937 |
2023 | 12,303 |
2024 | 11,400 |
2025 | 9,785 |
Thereafter | 24,740 |
Total operating lease payments | 86,143 |
Less imputed interest | (17,505) |
Total operating lease liabilities | $ 68,638 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Topic 840 (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 16,374 |
2021 | 16,155 |
2022 | 15,620 |
2023 | 16,105 |
2024 | 13,484 |
Thereafter | 32,849 |
Total minimum future lease payments | $ 110,587 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitments | $ 73.3 | $ 33.5 |
Common Stock and Stockholders_3
Common Stock and Stockholders' Equity - Narrative (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||||
Stock-based compensation expense | $ 25,950 | $ 14,764 | $ 70,496 | $ 39,624 | |
Unrecognized stock-based compensation cost related to outstanding unvested stock awards | 30,900 | $ 30,900 | |||
Stock-based compensation cost expected to be recognized over weighted-average period | 2 years 10 months 24 days | ||||
Expected to vest unrecognized stock-based compensation cost related to outstanding unvested stock options | 230,500 | $ 230,500 | |||
Unvested Stock Options | |||||
Class of Stock [Line Items] | |||||
Stock based compensation cost is expected to be recognized over a weighted-average period | 2 years 8 months 12 days | ||||
ESPP shares | |||||
Class of Stock [Line Items] | |||||
Shares reserved for issuance under plan (in shares) | 1,000,000 | ||||
Additional shares available for issuance under the plan (in shares) | 500,000 | ||||
Percentage of common stock shares increased under the plan | 1.00% | ||||
Common stock purchased under Employee Stock Purchase Plan (in shares) | 117,115 | 82,851 | |||
Stock-based compensation expense | $ 1,400 | $ 1,000 | $ 4,100 | $ 2,500 | |
Shares available for issuance (in shares) | 2,656,874 | 2,656,874 | |||
2008 Equity Incentive Plan | |||||
Class of Stock [Line Items] | |||||
Shares available for issuance (in shares) | 0 | 0 | |||
2014 Equity Incentive Plan | |||||
Class of Stock [Line Items] | |||||
Shares reserved for issuance under plan (in shares) | 5,000,000 | ||||
Shares available for issuance (in shares) | 11,662,325 | 11,662,325 | |||
Shares available for grant under plan (in shares) | 5,184,878 | ||||
Increase in shares available under plan, percentage of outstanding common stock shares | 5.00% |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Schedule of Stock Option and RSU Award Activities (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2019 | |
Number of Shares | |||
Beginning balance (in shares) | 2,751 | 2,751 | |
Stock options granted (in shares) | 779 | ||
Stock options exercised (in shares) | (267) | ||
Stock options canceled/forfeited (in shares) | (220) | ||
Ending balance (in shares) | 3,043 | ||
Weighted- Average Exercise Price | |||
Beginning balance (in usd per share) | $ 35.10 | $ 35.10 | |
Stock options granted (in usd per share) | 75.87 | ||
Stock options exercised (in usd per share) | 25.39 | ||
Stock options canceled/forfeited (in usd per share) | 79.90 | ||
Ending balance (in usd per share) | $ 43.15 | ||
Weighted- Average Remaining Contractual Term (in years) | |||
Weighted- Average Remaining Contractual Term (in years) | 6 years 3 months 18 days | 5 years 10 months 24 days | |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value, outstanding shares | $ 87,479 | $ 176,002 | |
Stock options exercised | $ 13,835 | ||
Number of Shares | |||
Beginning balance (in shares) | 2,419 | 2,419 | |
RSUs granted (in shares) | 1,889 | ||
RSUs vested (in shares) | (650) | ||
RSUs canceled/forfeited (in shares) | (408) | ||
Ending balance (in shares) | 3,250 | ||
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 76.34 | $ 76.34 | |
RSUs granted (in usd per share) | 71.03 | ||
RSUs vested (in usd per share) | 64.29 | ||
RSUs canceled/forfeited (in usd per share) | 76.73 | ||
Ending balance (in usd per share) | $ 75.62 | ||
Weighted- Average Remaining Contractual Term (in years) | |||
Weighted Average Remaining Contractual Terms (in years) | 3 years | 2 years 9 months 18 days | |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value, outstanding | $ 213,517 | $ 238,734 |
Common Stock and Stockholders_5
Common Stock and Stockholders' Equity - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 25,950 | $ 14,764 | $ 70,496 | $ 39,624 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,315 | 934 | 3,837 | 2,522 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 8,611 | 4,322 | 23,073 | 11,443 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 11,090 | 6,222 | 30,682 | 17,040 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 4,934 | $ 3,286 | $ 12,904 | $ 8,619 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Recognized revenue that was previously included in deferred revenue balances | $ 118.7 | $ 90.5 | $ 242.2 | $ 169.3 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Performance Obligation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 489.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 94.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) provision | $ 894 | $ (106) | $ 1,518 | $ 440 |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 6,425 | 4,827 | ||
Convertible Debt Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 4,500 | 4,500 | 4,500 | 4,500 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Net Loss Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||||
Net loss attributable to New Relic | $ (27,195) | $ (10,103) | $ (60,978) | $ (24,054) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) | 58,733 | 57,096 | 58,352 | 56,663 |
Net loss attributable to New Relic per share - basic and diluted (in usd per share) | $ (0.46) | $ (0.18) | $ (1.05) | $ (0.42) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss per Common Share of Common Stock Equivalents (Detail) - shares shares in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 6,425 | 4,827 |
ESPP shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 132 | 62 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 3,250 | 1,891 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 3,043 | 2,874 |
Revenue by Geographic Locatio_2
Revenue by Geographic Location - Schedule of Revenue by Geographic Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 153,028 | $ 124,011 | $ 439,853 | $ 347,128 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 103,673 | 84,731 | 299,544 | 237,099 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 27,121 | 22,533 | 78,024 | 63,752 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 14,033 | 10,086 | 39,181 | 27,551 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 8,201 | $ 6,661 | $ 23,104 | $ 18,726 |